Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Corporate Update (October 2011)

14 slides from Xcel Energy's corporate update, Oct 12, 2011

  1. Slide 1: Coal Supply Presentation

    Coal Supply Presentation Mark Roberts Manager, Fuel Supply Operations October 12, 2011

  2. Slide 2: Coal-Fired Power Plants Statistics: Harrington Station

    Coal-Fired Power Plants Statistics „ Harrington Station: Amarillo, Texas „ Three coal-fired units: 1,066 net MW „ Coal sources „ Low-sulfur Southern Powder River Basin (“PRB”) coal mines including North Antelope Rochelle, Antelope and Black Thunder „ Transportation: BNSF Railway „ Trestle unloading

  3. Slide 3: Coal-Fired Power Plants Statistics: Tolk Station

    Coal-Fired Power Plants Statistics „ Tolk Station: Muleshoe, Texas „ Two coal-fired units: 1,130 net MW „ Coal sources „ Low sulfur Southern PRB coal mines including North Antelope Rochelle, Antelope and Black Thunder „ Transportation: BNSF Railway „ Rotary unloading system „ Historical average annu

  4. Slide 4: SPS Contract Information

    SPS Contract Information „ TUCO, Inc. „ TUCO is a third-party contractor that contracts for the coal supply and transportation to Tolk and Harrington stations „ TUCO manages the coal, rail and coal-handling contracts „ SPS purchases coal from TUCO at the plant bunkers „ Xcel Fuel Supply Operations m

  5. Slide 5: TUCO Coal Contract Information

    TUCO Coal Contract Information „ Eight contracts in place for Tolk and Harrington „ The contracts are with Peabody Energy, Cloud Peak Energy and Arch Coal „ Peabody: Two contracts at fixed price „ 2011-13 3.8m tons/yr, 2014-5 2m tons/yr „ 2011 0.2m tons high-sodium test coal for Tolk „ Cloud Peak: T

  6. Slide 6: TUCO Transportation Contract Information

    TUCO Transportation Contract Information „ Transportation „ Both Tolk and Harrington served by BNSF Railway „ Both contracts extend through 2012 „ Railcars „ Railcars are provided by long-term lease held by Savage and included in the cost of coal handling 6

  7. Slide 7: Near-Term Forecast Delivered Fuel Prices

    Near-Term Forecast Delivered Fuel Prices ($/MMBtu) $2.50 $2.00 $1.50 $/MMBtu Harrington $1.00 Tolk $0.50 $- 2011 2012 2013 2014 2015 Based on 2011-2015 annual 5-year budget (includes coal, rail and coal losses) 7

  8. Slide 8: PRB Map

    PRB Map „ Powder River Basin „ Roughly 300mi x 100 mi „ USGS „ 140b tons of resources in areas of most interest „ 77b tons in Gillette Coalfield alone 8 88

  9. Slide 9: Current PRB Coal Market Trends

    Current PRB Coal Market Trends „ 2011 PRB production expected to be PRB 8800 Btu/lb Coal Forecasts ~485m tons (SPS will purchase ~1.7% of (FOB Mine in 2011$) this total) $25 „ Continued global coal demand and weak dollar expected to keep upward price $20 pressure on all domestic coal types „ If mine

  10. Slide 10: Long-Term Forecasting Methodology for Resource Planning Purposes

    Long-Term Forecasting Methodology for Resource Planning Purposes „ Coal „ Coal price forecasts result from review and consideration of multiple expert sources including but not limited to JD Energy, John T Boyd and Wood Mackenzie „ Beyond the term of provided long-term forecasts, an escalation facto

  11. Slide 11: Long-Term Forecasting Methodology Continued: Delivered Coal Cost

    Long-Term Forecasting Methodology Continued: Delivered Coal Cost „ Coal „ Plant-specific, long-term, delivered-price forecasts are developed „ Below is an example of the long-term, delivered-price forecast for SPS Delivered Coal Prices $3.50 Harrington $3.00 Tolk $2.50 $/MMBtu $2.00 $1.50 $1.00 11 1

  12. Slide 12: SPS Coal Risks

    SPS Coal Risks „ SPS is exposed to PRB coal price risk „ PRB demand has the potential to be affected by CSAPR and other environmental rules and legislation „ Premiums for ultralow sulfur PRB coals and the higher Btu products (8800 v. 8400) may increase „ Global demand has certain effects on PRB dema

  13. Slide 13: SPS Transportation Risks

    SPS Transportation Risks „ Rail pricing could be higher with new contracts to be in place starting in 2013 „ Current rail contracts do not include a diesel surcharge that will likely be included with the new contract starting in 2013 „ The railroads are requiring surfactants be applied to the top la

  14. Slide 14: Xcel Energy

    2 Xcel Energy’ RESPONSIBLE BY NATURE™

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