Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Corporate Update (May 2023)
30 slides from Xcel Energy's corporate update, May 16, 2023
Slide 1: SPS 2023 New Mexico Integrated Resource Plan
SOUTHWESTERN PUBLIC SERVICE COMPANY 2023 NEW MEXICO INTEGRATED RESOURCE PLAN 1st Facilitated Stakeholder Meeting May 16, 2023 © 2023 Xcel Energy 1
Slide 2: Welcome
WELCOME Zoë Lees| Regional VP, Regulatory Policy © 2023 Xcel Energy
Slide 3: Xcel Energy
Xcel Energy Serving eight states 3.7 million electricity customers 2.1 million natural gas customers Nationally recognized leader: • Wind energy • Energy efficiency • Carbon emissions reductions • Innovative technology • Storm restoration Data based on 2021 Sustainability Report. To view full report
Slide 4: Xcel Energy's Mission Is Built for Sustainability
Xcel Energy’s Mission Is Built for Sustainability Providing customers with safe, clean, reliable energy services at a competitive price is core to our sustainability. We’re committed to delivering the essentials while driving positive change that supports the environment and the people and places we
Slide 5: SPS New Mexico service territory
SPS New Mexico service territory SPS serves approx. 125,000 customers in the following 16 towns in New Mexico: Artesia Carlsbad Clovis Dexter Eunice Hagerman Hobbs Jal Lake Arthur Loving Malaga Otis Portales Roswell Texico Tucumcari © 2023 Xcel Energy 5
Slide 6: Powering the New Mexico Economy
Powering the New Mexico Economy $51 million 256 spent with local Xcel Energy suppliers jobs in 2021 $34 million spent with $10.7 million in diverse property taxes suppliers 2021 Data © 2022 Xcel Energy 6
Slide 7: We Do It All
We Do It All 1.Electric generation 2.Bulk Transmission 3.Local Distribution 4.Customer Care
Slide 8: SPS Customers
SPS Customers Sales by Class Jurisdictional Sales Split 15% 15% Wholesale Residential Wholesale Residential Wholesale 23% 13% 23% Municipal Small C&I 2% Texas 47% 18% 21% Small C&I New Mexico 31% 48% Large C&I Large C&I 44% * SPS operates its production and transmission system as an integrated whole
Slide 9: New Mexico Customers
New Mexico Customers Sales by Class Municipal 2% Residential, 14% 15% 15% Wholesale Residential Small C&I 25% 21% Large C&I, 60% Small C&I 48% Large C&I Note: Data Represents Calendar 2022. © 2023 Xcel Energy
Slide 10: NM IOU Comparison
NM IOU Comparison 2021 Information SPS EPE PNM Customer Sales Mix (2021)* Residential 15% 45% 36% Commercial 27% 50% 41% Industrial 59% 4% 23% Production Peak (2021)** 4,018 MW 2,051 MW 1,968 MW *Source – NMPRC Website **Source - FERC Form 1 © 2023 Xcel Energy 10
Slide 11: SPS IRP Overview
SPS IRP Overview July 2021 Filed 2021 IRP (Action Plan Period 2022 – Nov 2022 Procurement 2025) Issued RFP and Building 2021 IRP Nov 2022 Feb 2023 2024-2027 Filed RFP Bids Resources Update to Received Online 2021 IRP Apr – Oct 2023 Facilitated Stakeholder July 2024 Issue Process RFP 2023 IRP Oct 16,
Slide 12: SPS 2023 IRP
SPS 2023 IRP New IRP Rule Changing System 2023 Requirements IRP Generating Unit Retirements © 2023 Xcel Energy 12
Slide 13: SPS IRP Timeline
SPS IRP Timeline © 2023 Xcel Energy 13
Slide 14: Reliability First
RELIABILITY FIRST Ben Elsey | Director, Resource Planning & Bidding Chris Whiteside | Resource Planning Analyst © 2023 Xcel Energy
Slide 15: General Terms
General Terms • Megawatt (“MW”) – A unit of instantaneous power equal to one million watts, or one thousand kilowatts. Used as a measure of power station output. • Megawatt-hour (“MWh”) – A megawatt hour equals 1,000 kilowatts of electricity generated per hour and is used to measure electric output
Slide 16: North American Power Grids
NORTH AMERICAN POWER GRIDS © 2020 Xcel Energy
Slide 17: Southwest Power Pool Membership
Southwest Power Pool Membership SPS is a member of the Southwest Power Pool ("SPP"). SPP is a regional transmission organization (“RTO”) approved by FERC that oversees the bulk electric grid and wholesale power market in the central United States, providing a portfolio of services, including reliabi
Slide 18: Reliability Overview
Reliability Overview • Ensure sufficient resources to meet demand (load) • Historical emphasis on planning for resources to meet peak demand (i.e., the single hour in a year when demand is highest) • As the resource mix transitions towards more intermittent renewable resources a greater focus is nee
Slide 19: Current Summer SPS Loads and Resources Table
Current Summer SPS Loads and Resources Table LINE NO. DESCRIPTION 2024 2025 2026 2027 2028 2029 2030 5,418 5,411 5,158 4,918 4,472 3,178 3,170 1 TOTAL ACCREDITED CAPACITY (MW) 4,332 4,580 4,680 4,735 4,881 4,898 5,032 2 FIRM LOAD OBLIGATION 650 687 702 710 732 735 755 3 TOTAL PLANNING RESERVE MARGIN
Slide 20: Load Duration Curve
Load Duration Curve 2022 Annual 4500.0 Load Duration Curve 4000.0 3500.0 3000.0 2500.0 MW 2000.0 1500.0 1000.0 500.0 0.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percent of Time © 2023 Xcel Energy 20
Slide 21: Existing Generation
Existing Generation Capacity Overview by Resource Type Nameplate Accredited Resource Capacity Capacity Type (MW) (MW) Coal 1,069 1,069 Coal to Gas 1,050 1,050 Gas – Steam 1,578 1,578 Gas – CT 828 828 Gas – CC 558 558 Wind 2,451 415 Solar 106 86 Total 7,650 5,584 © 2023 Xcel Energy 21
Slide 22: Decreasing Accredited Capacity
Decreasing Accredited Capacity Accredited Capacity Mix (Not nameplate) • Aging and retiring gas steam 7,000 fleet 6,000 • Retirement of Tolk coal plant 5,000 • Expiring wind and gas PPAs 4,000 • ‘Firm and dispatchable’ MW resources will be required to 3,000 replace retiring gas and coal 2,000 resour
Slide 23: SPS's Changing Capacity Position
SPS's Changing Capacity Position SPP Planning Reserve Increased Load Generation Unit Margin Increases Retirements © 2023 Xcel Energy 23
Slide 24: Increasing Resource Adequacy Requirements
Increasing Resource Adequacy Requirements • The transition from traditional thermal resources to more intermittent resources requires additional consideration and evaluation (e.g., ensuring grid stability) • Recent winter weather events (e.g., Winter Storm Uri) have identified other areas requiring
Slide 25: Increasing Load
Increasing Load • SPS service territory includes the rapidly expanding Permian Basin • Push towards electrification of other industries and transportation to reduce carbon emissions • Low rates attracting high energy ‘emerging’ customers (e.g., data centers, clean fuel producers, and cryptocurrency
Slide 26: Community & Workforce Transition
COMMUNITY & WORKFORCE TRANSITION Zoë Lees| Regional VP, Regulatory Policy © 2023 Xcel Energy
Slide 27: Our Commitment
Our Commitment Leading the A “just transition” of our Clean Energy Transition workforce and communities 80% reduction in carbon Do not anticipate layoffs emissions by 2030 100% reduction of carbon We anticipate new jobs and emission by 2050 opportunities We will build upon our long and successful hi
Slide 28: A Reliable & Affordable Fleet Transition
A RELIABLE & AFFORDABLE FLEET TRANSITION Brooke Trammell | Regional VP, Regulatory and Pricing © 2023 Xcel Energy
Slide 29: Foundation for the Future
Foundation for the Future Fleet transition components in current SPS rate case Ratemaking considerations for new generation technologies like battery storage Cost recovery of new generation resources © 2023 Xcel Energy 29
Slide 30: © 2023 Xcel Energy
© 2023 Xcel Energy 30