Xcel Energy files 2011 resource plan for energy needs through 2018

DENVER – Xcel Energy has proposed a plan to the Colorado Public Utilities Commission today to supply power at the lowest cost to customers by taking advantage of existing resources plus cost-effective renewable resources in the future.

The plan also provides the utility the flexibility to satisfy customer interests in using renewable energy above the 30 percent Colorado renewable energy standard. Key factors the utility considered in its 2011 Resource Plan included forecasts for a continued slow national and regional economic growth, reduced energy use by Colorado customers through participation in Solar*Rewards and adoption of energy efficiency measures, uncertainty over federal tax incentives for new renewable energy projects, low natural gas prices and the company’s own extensive efforts under way through the Clean Air Clean Jobs Act.

Xcel Energy also proposes to issue Request for Proposals for cost-effective renewable energy projects over the next four years. Projects would still be subject to PUC review and approval.

“We are well positioned to continue providing our customers with clean, reliable and affordable power without making any more significant generation investments through this planning period,” said David Eves, president and CEO of Public Service Co. of Colorado, an Xcel Energy company. “We currently face a number of uncertainties around the economy, fuel prices and the cost of renewable generation technologies. Fortunately, we have the flexibility to see how these issues evolve before making additional long-term decisions or changes regarding power supply. We are recommending a plan that is lowest cost for customers.”

Xcel Energy is forecasting minor load growth with the first need for 59 megawatts of capacity in 2017 and 292 megawatts by 2018. The company proposes fulfilling these needs through 2018 under short-term contracts with existing resources. The need will be evaluated again in the 2015 resource plan.

“This resource plan allows us the opportunity to focus on implementing plans we have committed to over the past two years. We find ourselves in a fortunate place to continue on our current path without needing to acquire significant resources during this planning period,” said Eves.

Xcel Energy is already making significant changes to the power supply, including changes it will make to meet Colorado’s Clean Air Clean Jobs Act. Over the next seven years, the company will retire about 600 megawatts of coal generation, switch about 450 megawatts of coal to natural gas, add 570 megawatts of new natural generation and install modern emission controls on 950 megawatts of existing coal generation.

Furthermore, Xcel Energy is adding up to 900 megawatts of wind, assuming approval of the 200-megawatt Limon II wind project currently before the PUC, and 60 megawatts of large, photovoltaic (PV) solar to its system this year and over the next 15 months. As a result, the company expects to be in compliance with the state’s renewable energy standard by 2020, with its current wind and solar contracts and Solar*Rewards programs.

Xcel Energy will encourage all independent power producers and developers to compete to fulfill the power needs in 2017 and 2018.

More information on today’s filings and the 2011 Resource Plan can be found at the link below.