Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Corporate Update (February 2024)

57 slides from Xcel Energy's corporate update, Feb 14, 2024

Slide 1: Q4 – 2023 Colorado DSM Roundtable
Q4 – 2023 COLORADO DSM ROUNDTABLE February 14th, 2024
Slide 2: Agenda
AGENDA 1:00 p.m. Welcome and DSM Regulatory Updates 1:10 p.m. Q4 Achievements Update 1:20 p.m. BE Performance 1:30 p.m. IQ/DI Outreach and Engagement 1:40 p.m. Potential Study Stakeholder Engagement 1:55 p.m. RFP Updates 2:05 p.m. Virtual Power Plants 2:20 p.m. BREAK 2:35 p.m. Natural Gas Demand Res
Slide 3: DSM Regulatory Updates Q4 – 2023
DSM REGULATORY UPDATES Q4 – 2023 Gina Gargano-Amari | DSM Regulatory ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 3
Slide 4: Q4 60-Day Notices
Q4 60-Day Notices 2023 DSM/BE Plan Settlement  Residential Heating & Cooling • Notification Date (October 4, 2023) • Implementation Date (November 4, 2023)  Business HVAC+R Systems Update • Notification Date (October 24, 2023) • Implementation Date (November 28, 2023) ©2024 Xcel Energy | Q4 - 2023
Slide 5: DSM Regulatory Calendar
DSM Regulatory Calendar Clean Heat Plan 2024-2026 DSM BE Plan • Rebuttal Testimony – February 26 • Answer Testimony – March 22 • Hearing – March 11-15 • Rebuttal Testimony – April 19 • Settlement Agreement/Stipulations – April 29 2023 DSM Status Report • Settlement Testimony – May 3 • March 29 • Evi
Slide 6: DSM Regulatory Calendar
DSM Regulatory Calendar Upcoming Meetings – Save the Date!  Q1 - 2024 DSM Roundtable: May 8th, 2024  Q2 - 2024 DSM Roundtable: August 14th, 2024  Potential Study Working Group Kickoff: March 8th, 2024 11:30am-1:00pm ©2024 Xcel Energy | Q4 - 2024 DSM Roundtable 6
Slide 7: DSM Achievement Update Q4 – 2023
DSM ACHIEVEMENT UPDATE Q4 – 2023 Mark Schoenheider | Manager Customer Energy Solutions Michelle Beaudoin | Manager Product Portfolio Supervisor ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 7
Slide 8: 2023 Q4 Achievement Highlights
2023 Q4 Achievement Highlights Electric Portfolio Gas Portfolio • 510 GWh (107% of 487 GWh Target) • 917,014 Net Dth (110% of 832,725 Target*, 102% of 898,487) • 104 MW (104% of 100 MW Target) • $21.8M Spend (105% of $20.7M Budget*, 87% of $25M) • $93M (100% of $93M Budget) Business Programs Busines
Slide 9: Marketing Campaigns & Trade Relations Outreach
Marketing Campaigns & Trade Relations Outreach Residential Customer Outreach • IQ – EOC continued text reminders, leave behind energy tips, surveys, and training across programming. • Emails – TOU outreach directing customers to storefront • Emails – Black Friday/Cyber Monday Xcel Energy Online Mark
Slide 10: Marketing Campaigns & Trade Relations Outreach
Marketing Campaigns & Trade Relations Outreach Business CO HVACR Program Changes Announced to the Trade • Heat Pump, VRF, Dual Fuel Prescriptive launch; Midstream pass-through incentives; Changes to RTU qualification 1-1-24 • Trade Partner virtual workshops for October 11th and 17th Data Center Work
Slide 11: BE Performance
BE PERFORMANCE Joshua Martin | Associate Product Portfolio Manager ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 11
Slide 12: Exponential Growth in BE Performance Continues
Exponential Growth in BE Performance Continues BE Measures Non-BE Total MSHP 1,517 97 1,614 ASHP 997 14 1,011 HPWH 154 102 256 GSHP 13 1 14 Total 2,681 214 2,895 Participants AC 5,173 Evap 2,464 Participants Trades (All) Trades (5+ Installs) Dth Furnace 4,764 2021 327 72 16 15,307 Boiler 181 2022 1,
Slide 13: IQ/DI Outreach and Engagement Q4 - 2023
IQ/DI OUTREACH AND ENGAGEMENT Q4 - 2023 Tami Gunderzik | Strategic Segment Team Lead ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 13
Slide 14: IQ/DI Outreach and Engagement - Q4 2023
IQ/DI Outreach and Engagement - Q4 2023 Energy Outreach Colorado continued to deliver efficiency education to IQ market • Target Multi-Family, Nonprofit and Single Family • New staff, continue to improve content and delivery through 2024 Red Truck continued to attend events and grow in popularity Pa
Slide 15: Potential Study Stakeholder Engagement
POTENTIAL STUDY STAKEHOLDER ENGAGEMENT Nick Minderman | Regulatory Policy Specialist Bill Goodrich | Mesa Point Energy ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 15
Slide 16: Principles of 2025 Strategic Issues Potential Study Engagement
Principles of 2025 Strategic Issues Potential Study Engagement • Start conversations before the consultant scope is defined • Third-party facilitation to enhance transparency • Define and prioritize different measures of study success • Regular and bi-directional discussions during study • Timely di
Slide 17: 2025 Potential Study Timeline
2025 Potential Study Timeline Preliminary Refine Study Analysis and Engagement/ Objectives, Design Preliminary Results Study Scoping Research Plan (Dec 2024-Feb 2025) (Jan-Mar 2024) (May-July 2024) Consultant Finalize Analysis Selection and Collect Customer and Document Project Kick-off and Portfoli
Slide 18: Potential Study Working Group: Stakeholder Interviews
Potential Study Working Group: Stakeholder Interviews At a high level, stakeholders provided the following feedback: Allow for reasonable time to There is general buy-in to review materials before and Include additional scenarios attending ~monthly virtual after meetings and include to accommodate d
Slide 19: Potential Study Working Group: Timing and Logistics
Potential Study Working Group: Timing and Logistics Potential Study Working Group kickoff meeting: Friday March 8th, 2024 11:30am-1:00pm. Please contact Bill Goodrich to be added. Kickoff meeting agenda: • Timing, content, and format of meetings Potential Study Working Group Contacts: • Processes an
Slide 20: RFP Updates
RFP UPDATES Michael Mangan | Category Manager SC Sourcing and Purchasing ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 20
Slide 21: Q4 2023 RFP Submissions
Q4 2023 RFP Submissions • Energy Savings Kits RFP • Siting Analysis for CGSHP RFP • Community Panel RFP ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 21
Slide 22: Virtual Power Plants
VIRTUAL POWER PLANTS Ryan Bruers | Manager Demand Management ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 22
Slide 23: Aggregator DERMS and VPP Agenda
Aggregator DERMS and VPP Agenda • How did we get here/What is driving this? • Definitions • DERMS/VPP Architecture • DERMS/VPP Components • Current Status • Schedule • Leading Vendors ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 23
Slide 25: Aggregator DERMS and VPP Definitions
Aggregator DERMS and VPP Definitions Throughout this presentation the following terms are used: ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 25
Slide 26: Aggregator DERMS and VPP Architecture
Aggregator DERMS and VPP Architecture ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 26
Slide 27: Aggregator DERMS and VPP Components
Aggregator DERMS and VPP Components ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 27
Slide 28: Aggregator DERMS and VPP Status
Aggregator DERMS and VPP Status ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 28
Slide 29: Aggregator DERMS and VPP Schedule
Aggregator DERMS and VPP Schedule ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 29
Slide 30: Aggregator DERMS and VPP Leading Vendors
Aggregator DERMS and VPP Leading Vendors The leading vendors can be categorized across multiple dimensions, including strategic partnerships, end-end integration, specialization, maturation, aggregator, etc. ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 30
Slide 32: Natural Gas Demand Response
NATURAL GAS DEMAND RESPONSE Stephen Mullaly | Product Developer ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 32
Slide 33: Natural Gas Demand Response RFP
Natural Gas Demand Response RFP • As part of the 2023 Settlement Agreement, an RFI was issued for new Demand Response ideas • Responses focused on Load Aggregation and Natural Gas DR • RFP was written to focus on the Natural Gas DR segment for Residential and Commercial customers o Considered RFI re
Slide 34: Natural Gas Demand Response RFP
Natural Gas Demand Response RFP • RFP was Issued on January 30th o Shared with more than a dozen participants, including those that showed interest in and responded to the RFI o RFP posted to Xcel Energy Website (Colorado Demand-Side Management | Xcel Energy) • Due March 15th • Targeted pilot for 20
Slide 36: Residential New Home Construction
RESIDENTIAL NEW HOME CONSTRUCTION Rob Buchanan | Product Portfolio Manager ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 36
Slide 37: 2024 Program Updates
2024 Program Updates Guiding Principles: Colorado PUC ruling on new homes “Accordingly, we require that the ESNH program support only all-electric housing by June, 30 2024.” ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 37
Slide 38: 2024 Program Updates
2024 Program Updates Homes permitted after June 30, 2024 will have to be all-electric (no gas end uses) to be eligible for rebates. Homes with permit dates on or before June 30, 2024 will be subject to 2023 ENERGY STAR New Homes program criteria – business as usual. As a result of the all-electric r
Slide 39: New Rebate Structure
New Rebate Structure All current rebates will be replaced with three prescriptive tiers ©2022 Xcel Energy | Q4 - 2023 DSM Roundtable 39
Slide 40: Shifting Program Philosophy
Shifting Program Philosophy ENERGY STAR New Homes – Mass-market Program Residential New Home Construction – Market Transformation Program ©2022 Xcel Energy | Q4 - 2024 DSM Roundtable 40
Slide 41: Program Administration
Program Administration Resources for training builders and trades to meet requirements + Increases in required builder support (consulting, design assistance, plan review, verification) = Program vendor will provide necessary inspection and verification services at no cost to the builder. Third-part
Slide 42: Tier 1 Requirements
Tier 1 Requirements Tier 1 Requirements (NextGen & ZERH v2) • All-electric (no gas end uses) • ENERGY STAR v3.2 • Envelope does not exceed 100% IECC 2021 UA • Indoor airPLUS • Qualifying ccASHP or GSHP − Must be ENERGY STAR and have address-specific ACCA Manual J • HPWH with EcoPort • Electric cooki
Slide 43: Heat Savers Mode – Product Development Pilot
HEAT SAVERS MODE – PRODUCT DEVELOPMENT PILOT Kevin Scott | Product Developer ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 43
Slide 44: Heat Savers Update
Heat Savers Update Objective • Goal is to shift gas load between 6am and 9am due to infrastructure limitations during peak time • Concept – create a program that is like AC Rewards for heating using the same implementer Agenda • Season 3 progress • Season 3 changes • Goals ©2024 Xcel Energy | Q4 - 2
Slide 45: Season 3 Progress
Season 3 Progress Season 2 Season 3 Change Enrollments 88 150 62 Summit 60 86 26 Grand 26 62 36 Other 2 2 0 Thermostats 144 255 111 Ecobee 82 176 94 Honeywell 55 67 12 Emerson 7 12 5 Events 14 10 - ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 45
Slide 46: Season 3 Changes
Season 3 Changes • Created 3 groups • Group A, B, PH • Groups A & B – 50% split • PH – Group of customers who agreed to preheat • Preheat only being explored • Staggered events – planning on 1-3 ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 46
Slide 47: Heat Savers Goals
Heat Savers Goals • What is the value of location specific heating DR compared to a mass market offering? • How does heating DR fit into a Thermostat Rewards program? • Is demand saved during an event? How much? • Expected demand reduction at different outdoor temperatures. • 3 vs 4-degree setback •
Slide 48: IQ Home Energy Squad
IQ HOME ENERGY SQUAD Tami Gunderzik | Strategic Segment Team Lead ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 48
Slide 49: Home Energy Squad Visits
Home Energy Squad Visits Home Energy Squad Plus Home Energy Squad  All the direct install conservation measures of the  LED bulbs of various types and wattages HES visit  Installation of a new smart thermostat with  An Energy Audit for diagnostic testing which may enrollment in AC Rewards Progra
Slide 50: Income Qualified Home Energy Squad
Income Qualified Home Energy Squad Leveraging the market rate offering structure, enhanced to deliver incremental value to the IQ market. Train the Education on technicians on IQ smart meters and specific barriers TOU rates Delivery of Safety additional incentives (store INCOME discounts) Guidance t
Slide 51: Tiered Geographic Prequalification Program
TIERED GEOGRAPHIC PREQUALIFICATION PROGRAM Tami Gunderzik | Strategic Segment Team Lead ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable 51
Slide 52: Proposed Program Structure
PROPOSED PROGRAM STRUCTURE Tier Definition 1 Live in DI Communities and verify income levels, Manufactured home residents 2 Do not live in DI Communities and verify income levels 3 Live in DI Communities and self-attest that income levels qualify for IQ offerings 4 Live in DI Communities 5 Xcel Ener
Slide 53: Program Services
Program Services Tier Offering 4 Free Home Energy Squad visits, Focused education and outreach 3 Add: Bonus rebates for HVAC, insulation and air sealing, Trade Incentives, 2 Add: Single Family Income Qualified Weatherization, Multi-Family Income Qualified Weatherization, Higher level bonus for HVAC,
Slide 54: Objectives
Objectives What we plan to deliver through this program: Additional access points to Platform to resources for IQ deliver targeted and other outreach and underserved education markets Incentive structure that Ability to expand aligns the most trade pool willing resources going to serve the IQ to the
Slide 55: Opportunities
Opportunities  XE’s Red Truck and Latino Community Foundation of Colorado outreach and education initiatives  Manufactured home park blitzes  Trade training on technologies, programs and market expectations  Opportunities to promote through Partners in Energy communities  Geographic boundary/En
Slide 56: DSM Regulatory Contacts
DSM Regulatory Contacts Gina Gargano-Amari Case Specialist II [email protected] Melanie Castro Regulatory Administrator [email protected] ©2022 Xcel Energy | Q3 - 2022 DSM Roundtable 56
Slide 57: 2020 Xcel Xcel Energy Energy | Q4 - 2023 DSM Roundtable
©2022 © 2020 Xcel Xcel Energy Energy | Q4 - 2023 DSM Roundtable 57

Xcel Energy — Corporate Update (February 2024) on 6ix

Xcel Energy — Corporate Update (February 2024)

Slide 1: Q4 – 2023 Colorado DSM Roundtable

Slide 2: Agenda

Slide 3: DSM Regulatory Updates Q4 – 2023

Slide 4: Q4 60-Day Notices

Slide 5: DSM Regulatory Calendar

Slide 6: DSM Regulatory Calendar

Slide 7: DSM Achievement Update Q4 – 2023

Slide 8: 2023 Q4 Achievement Highlights

Slide 9: Marketing Campaigns & Trade Relations Outreach

Slide 10: Marketing Campaigns & Trade Relations Outreach

Slide 11: BE Performance

Slide 12: Exponential Growth in BE Performance Continues

Slide 13: IQ/DI Outreach and Engagement Q4 - 2023

Slide 14: IQ/DI Outreach and Engagement - Q4 2023

Slide 15: Potential Study Stakeholder Engagement

Slide 16: Principles of 2025 Strategic Issues Potential Study Engagement

Slide 17: 2025 Potential Study Timeline

Slide 18: Potential Study Working Group: Stakeholder Interviews

Slide 19: Potential Study Working Group: Timing and Logistics

Slide 20: RFP Updates

Slide 21: Q4 2023 RFP Submissions

Slide 22: Virtual Power Plants

Slide 23: Aggregator DERMS and VPP Agenda

Slide 24: ©2024 Xcel Energy | Q4 - 2023 DSM Roundtable

Slide 25: Aggregator DERMS and VPP Definitions

Slide 26: Aggregator DERMS and VPP Architecture

Slide 27: Aggregator DERMS and VPP Components

Slide 28: Aggregator DERMS and VPP Status

Slide 29: Aggregator DERMS and VPP Schedule

Slide 30: Aggregator DERMS and VPP Leading Vendors

Slide 31: Break

Slide 32: Natural Gas Demand Response

Slide 33: Natural Gas Demand Response RFP

Slide 34: Natural Gas Demand Response RFP

Slide 35: New Products

Slide 36: Residential New Home Construction

Slide 37: 2024 Program Updates

Slide 38: 2024 Program Updates

Slide 39: New Rebate Structure

Slide 40: Shifting Program Philosophy

Slide 41: Program Administration

Slide 42: Tier 1 Requirements

Slide 43: Heat Savers Mode – Product Development Pilot

Slide 44: Heat Savers Update

Slide 45: Season 3 Progress

Slide 46: Season 3 Changes

Slide 47: Heat Savers Goals

Slide 48: IQ Home Energy Squad

Slide 49: Home Energy Squad Visits

Slide 50: Income Qualified Home Energy Squad

Slide 51: Tiered Geographic Prequalification Program

Slide 52: Proposed Program Structure

Slide 53: Program Services

Slide 54: Objectives

Slide 55: Opportunities

Slide 56: DSM Regulatory Contacts

Slide 57: 2020 Xcel Xcel Energy Energy | Q4 - 2023 DSM Roundtable