Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Corporate Update (December 2011)

63 slides from Xcel Energy's corporate update, Dec 1, 2011

  1. Slide 1: Colorado DSM Roundtable Discussion

    Xcel Energy Colorado DSM Roundtable Discussion December 1, 2011 1:00pm to 4:00pm 1800 Larimer, Room 03G01

  2. Slide 2: Welcome and Introductions

    Welcome and Introductions Contact ContactInfo: Info: Suzanne SuzanneDoyle Doyle Manager, Manager,DSM DSMRegulatory RegulatoryStrategy Strategy&&Planning Planning Office OfficePhone: Phone: 612-330-5518 612-330-5518 Cell CellPhone: Phone: 612-599-5785 612-599-5785 E-mail: E-mail: suzanne.galster@xcel

  3. Slide 3: Agenda

    Agenda 1:00 – 1:05 Welcome, Introductions (Doyle) 1:05 – 1:15 Program Evaluations Updates (Doyle) 1:15 – 1:45 Regulatory Updates (Cowan) 1:45 – 2:15 DSM Program Highlights (White, Warman, Hueser) 2:15 – 2:30 Break 2:30 – 3:00 EEBC Presentation 3:00 – 3:30 Product Development (Schwain, Goggin) 3:30 –

  4. Slide 4: Program Evaluations Update

    Program Evaluations Update Presented By: Suzanne Doyle 4

  5. Slide 5: DSM Process & Impact Evaluations 2011

    DSM Process & Impact Evaluations 2011 Final report revisions are currently underway for all four Residential and Business evaluation reports. Targeted final draft completion dates are as follows. ƒ Business - Conducted by Tetra Tech MA, Inc. ƒ Heating Efficiency: 11/23/2011 ƒ Self Direct Custom Effi

  6. Slide 6: DSM Program Evaluations – 2012/2013

    DSM Program Evaluations – 2012/2013 „ 2012: „ Residential – Home Performance „ Residential – High Efficiency AC „ Business – Process Efficiency „ 2013: „ Residential – Low Income Energy Savings Kits „ Business – Compressed Air „ Business - Segment Efficiency Notes: Swap Home Performance and Low Inco

  7. Slide 7: Regulatory Update

    Regulatory Update Presented by: Neil Cowan Compliance Complianceinformation informationisisavailable available at atXcel XcelEnergy’s Energy’sDSM DSMWebsite: Website: http://www.xcelenergy.com/About_Us/Rates_&_Regulations/Regulatory_Filings/CO_DSM http://www.xcelenergy.com/About_Us/Rates_&_Regulatio

  8. Slide 8: 2011 60/90-Day Notices

    2011 60/90-Day Notices Notification Date Product Type of Notice Feb. 4, 2011 ENERGY STAR Retailer Incentive Pilot Product Changes Feb. 8, 2011 Energy Management Systems Product Changes Mar. 30, 2011 ENERGY STAR New Homes Informational Mar. 31, 2011 Insulation Rebates Informational Apr. 22, 2011 Comp

  9. Slide 9: Timeline of Recent Filings

    Timeline of Recent Filings August August25, 25,2011 October 2011 October5,5,2011 2011 November November16, 16,2011 2011 August August31, 31,2011 October 2011 October13, 13,2011 2011 2012/2013 2012/2013DSM DSMPlan Plan 2013/2013 Biennial Settlement 2013/2013DSM DSMPlan Plan 2012/2013 2012/2013DSM DSM

  10. Slide 10: 2012/2013 DSM Plan Settlement Docket No. 11A-631EG

    2012/2013 DSM Plan Settlement Docket No. 11A-631EG Energy Savings Incremental Demand Proposed Products Expenditures ($) (Gen kWh or Dth) Savings (Gen kW) 2012 Electric Efficiency 57,024,322 320,049,336 57,748 Saver’s Switch 13,326,964 697,183 20,865 Electric Indirect and Pilots 6,902,097 8,560,821 6

  11. Slide 11: 2012/2013 DSM Plan Settlement Docket No. 11A-631EG

    2012/2013 DSM Plan Settlement Docket No. 11A-631EG Energy Savings Incremental Demand Proposed Products Expenditures ($) (Gen kWh or Dth) Savings (Gen kW) 2013 Electric Conservation 61,763,841 327,423,334 65,755 Saver’s Switch 14,075,362 697,183 20,865 ISOC Marketing and Admin. 32,581 0 1,300 0 0 0 T

  12. Slide 12: 2012/2013 DSM Plan Settlement: Program Specific Changes and Additions

    2012/2013 DSM Plan Settlement Docket No. 11A-631EG „ Program Specific Changes and Additions „ Insulation Rebate Program „ Home Performance with Energy Star „ Residential Home Lighting „ Electric Vehicles „ Energy Efficiency Financing „ Energy Star New Homes „ Waste to Energy Projects 12

  13. Slide 13: 2012/2013 DSM Plan Settlement: Plan Modifications to Address Shortfall

    2012/2013 DSM Plan Settlement Docket No. 11A-631EG „ Plan Modifications to Address Shortfall 2013 „ Energy Feedback Pilot „ Showerhead Program „ Refrigerator Recycling „ RFP for Innovative Technology „ Low Income Single Family Weatherization „ Air Conditioner Tune-Ups 13

  14. Slide 14: DSM Program Highlights

    DSM Program Highlights Presented By: Shawn White Kate Warman David Hueser 14

  15. Slide 15: DSM Program Overview

    DSM Program Overview Shawn White 15

  16. Slide 16: Portfolio Overview

    Portfolio Overview „ Electric „ 221.52 GWh YTD (86.6% of Y/E Target) „ $38.9 M (56.8% of Budget) „ Gas „ 340,743 Dth (92.5% of Y/E Target) „ $12.0 M (76.2% of Budget) 16

  17. Slide 17: 2010/2011 Comparison

    2010/2011 Comparison DSM 2010/2011 Comparison 250,000,000 200,000,000 150,000,000 2010 100,000,000 2011 50,000,000 - Q1 Q2 Q3 Quarter 17

  18. Slide 18: Residential and Low-Income Program Highlights

    Residential and Low-Income Program Highlights Kate Warman 18

  19. Slide 19: Portfolio Overview

    Portfolio Overview „ Electric „ 102.63 GWh YTD (131% of Y/E Target) „ $13.3 M (55% of Budget) „ Gas „ 295,396 Dth (119% of Y/E Target) „ $8.7 M (91% of Budget) 19

  20. Slide 20: High Efficiency Air Conditioning

    High Efficiency Air Conditioning „ 30% more installs over 2010 „ Marketing and advertising enhancements „ Audit recommendations „ Increased contractor participation „ Customers asking about rebates „ Using rebates as sales leverage „ Quality Installation improving „ Customers asking about Xcel Energ

  21. Slide 21: Home Lighting

    Home Lighting „ Achieved filed goal of 55.7 GWh in July „ Achievement through 9/30/11: „ 81 GWh, $2.4 million spent, 1.7 million bulbs sold „ Launched LED test in September to determine prospective rebate amounts, education needed and sales potential. „ LED bulbs are still very costly, priced $25 -

  22. Slide 22: Refrigerator Recycling

    Refrigerator Recycling „ Increased Participation „ Radio „ General awareness campaigns „ Word of mouth „ Incentive Increase „ From $35 to $50 „ 2012-2015 RFP 22

  23. Slide 23: Non-Profit Weatherization

    Non-Profit Weatherization „ Achievements „ Made goal in Q3 735,674 kWh „ 27 projects through Q3 (14 in Q3) „ Doubled the number of projects in 2010 „ Participation „ Process improvements „ Average project increase 23

  24. Slide 24: Business Energy Efficiency Program Highlights

    Business Energy Efficiency Program Highlights David Hueser 24

  25. Slide 25: Product Updates

    Product Updates „ Cooling Efficiency – New Measures Added „ Product modification – via 60-Day Notice effective August 28, 2011 – expands available prescriptive rebates „ Plate & Frame Heat Exchangers (PFHE) on chillers „ Variable Speed Drive (VSD) retrofits for existing chillers „ PSCo targets busin

  26. Slide 26: Plate & Frame Heat Exchanger

    Plate & Frame Heat Exchanger „ Retrofit to existing chiller systems without air side economizers „ This type of heat exchanger uses metal plates to transfer heat between two fluids. „ Well-suited for transferring heat Schematic conceptual diagram An interchangeable plate heat between medium- and of

  27. Slide 27: Variable Speed Drive (VSD)

    Variable Speed Drive (VSD) „ Add prescriptive rebates for retrofitting centrifugal chillers with a VSD „ Rebate is $1.50 per IPLV 0.01 kW/ton improvement over the chiller’s IPLV without the VSD „ Applicable to all states within our service territory „ Key customer benefit: ease of participation with

  28. Slide 28: Product Update: Recommissioning

    Product Update „ Recommissioning „ Expected to achieve electric goal and already exceeded gas goal „ Study provider interest in the program has increased „ New list of required measures is helping to identify more savings for the customer „ Our recommissioning calculator tool has been adopted positi

  29. Slide 29: Product Update: Energy Management Systems (EMS)

    Product Update „ Energy Management Systems (EMS) „ Successfully implemented SWEEP’s suggestion around rebates - Marketed as a rebate bonus. „ Essentially achieved its full year kWh goal (98%), and is on track to achieve 160% of its full year Dth goal. „ Has achieved 350% of its kW goal, as we are fi

  30. Slide 30: Break

    Break 30

  31. Slide 31: Energy Efficiency Business Coalition Energy Modeling Committee

    energy efficiency business coalition energy modeling committee {Xcel roundtable 12.1.2011} 31

  32. Slide 32: About the EEBC

    Founded in 2007 with the goal of increasing the Business Potential of the Energy Efficiency Industry EEBC serves as the coherent voice of the industry at: Colorado Public Utilities Commission Colorado Governor’s Energy Office The General Assembly and Legislators Xcel Energy, and other Colorado utili

  33. Slide 33: About the Energy Modeling Committee

    {about the energy modeling committee} • Formed in November 2010 in partnership with the EEBC • Prior committee partnered with SWEEP • Represents 9 Colorado energy engineering firms • Represent approximately 340 Colorado employees • Represent approximately $52 million in annual revenue in Colorado 33

  34. Slide 34: New Construction Rebate Summary

    {new construction rebate summary} EEB Program EDA Program Self Direct Program Incentives < 50,000 sf >50,000 sf > 2 MW load per kW $400 $400 Either $525 per kWh $0 $0.04 Or $0.10 per Dth $7 $7 $0 modeling provided? no yes no 34

  35. Slide 35: Reasons for Request

    {reasons for request} • EDA recently received increased incentive thereby giving EEB a disadvantage • There are inefficiencies and duplication in the process when going through EDA • There is more free ridership in the EDA than in the EEB • There is potential for a conflict of interest through selli

  36. Slide 36: Revisions Requested

    {revisions requested} •Eliminate the recommended maximum square footage parameters for consumers to participate in EEB •Increase the rebate/incentive to participants in the EEB product to the equivalent $/kW as the Self‐ Direct Product, if the participant brings in a consultant in the design phase o

  37. Slide 37: Benefits of Revisions

    {benefits of revisions} • Increase overall participants in the New Construction Product • More modeling of smaller buildings may encourage better accuracy and innovation • Reduced inefficiency and duplication in the consulting process • Significantly reduced free‐ridership • The program would reflec

  38. Slide 38: Example Projects

    {example projects} Example Projects: Total Rebate & Modeling Costs Under Each Program Project Size (Sq. Ft.) EDA Program EEB - Current EEB – Enhanced Metro State Center for Student Success 152,000 $198,170 $136,062 $168,812 Byron G. Rogers Federal Office Building 494,000 $581,192 $440,383 $548,758 C

  39. Slide 39: Example Calculations

    {example calculations} Calculations: Denver of Nature Science – Education & Collections Facility Building Size: 123,137 sq. ft. EDA Program EEB - Current EEB - Enhanced Electric Demand Incentive $400 $400 $525 Electric Usage Incentive $/kWh $0.04 $- $- Gas Usage Incentive $/Dth $7 $7 $7 Electric Dem

  40. Slide 40: Energy Efficiency Business Coalition Energy Modeling Committee

    energy efficiency business coalition energy modeling committee 40

  41. Slide 41: DSM Product Development Update

    DSM Product Development Update Presented by: Kevin Schwain and Pat Goggin DSM DSMWebsite Websiteprovides providesprogram programidea ideasubmission submissionforms formsat: at: http://www.xcelenergy.com/About_Us/Rates_&_Regulations/Regulatory_Filings/CO_DSM_Plan http://www.xcelenergy.com/About_Us/Ra

  42. Slide 42: Product Development Team

    Product Development Team „ 10 Resources able to flex across across 4 Platforms „ Energy Efficiency „ Renewable Energy „ Load Management „ Customer Choice „ Manager: Kevin Schwain, 612-330-5961 „ Energy Efficiency Lead: Pat Goggin, 303-294-2370 42

  43. Slide 43: Product Development Process

    Product Development Process „ Comprehensive review and alignment of EE and Non-EE PD processes „ PD Process Overview „ Clearer definition of stages and gates by PD platform „ Prioritized list of EE ideas „ Framing list more focused „ Process more in-line with industry best practices 43

  44. Slide 44: Why Prioritize?

    Why Prioritize? Opportunity Prioritization Concept Filing & Launch # of Approval Approval Approval Approval Ideas Concept Development Launch Opportunity Framing Evaluation Identification Concept Development Launch Opportunity Framing Evaluation Identification Level of Effort 44

  45. Slide 45: Prioritization Results

    Prioritization Results ID Product Developer Status Idea Inital Look Product-1 New Framing Active MN AM Pref CO AM Pref NM AM Pref PM Support External Lead Juris Lead Filing Filing Due Quadrant Research Customer & Market Insights Score Advocacy Date Deliverables 712 Nathan Huso Framing MN Residential

  46. Slide 46: Net Impacts

    High Priority Potential Map Idea 1 Idea 10 Idea 9 > 5 GWh Idea 11 Idea 2 Net Impacts Idea 8 Idea 6 2‐5 GWh Idea 3 Idea 5 Idea 7 <2 GWh Idea 4 Long Medium Short Time to Development High Priority Development Opportunities ‐ Framing 46

  47. Slide 47: CO Settlement Work for PD

    CO Settlement Work for PD Settlement Task Deliverable Time Period Energy Feedback Determine pilot cost effectiveness and add 50,000 Q1-Q4, 2012 customers to the pilot Refrigerator Recycling 60 Day Notice to add in first quarter, 2012 Q1, 2012 RFP for Innovative Technology RFP for innovative programs

  48. Slide 48: DSM Roundtable Ideation Submissions – 3rd Quarter

    DSM Roundtable Ideation Submissions – 3rd Quarter „ Received request June 29, 2011 - T.J. Aubin, American Mechanical Services „ Economizer Optimization and Adjustment, provide for the inspection and testing for proper operation of rooftop units (RTUs) „ On-Bill Financing, offer low interest financin

  49. Slide 49: Economizer Optimization and Adjustment

    Economizer Optimization and Adjustment „ Product Description „ Provide for the inspection and testing for proper operation of rooftop units (RTUs) „ Include the following services „ Quality assurance check of refrigerant charge „ Recalibration of economizer „ Recalibration of thermostat schedules an

  50. Slide 50: Economizer Optimization and Adjustment

    Economizer Optimization and Adjustment „ Situation Analysis „ Field studies found that more than half of outside air economizers on RTUs are not providing optimal savings due to „ Failed dampers or controls „ Incorrect settings for changeover „ Improper type of controls installed „ Puget Sound Energ

  51. Slide 51: Economizer Optimization and Adjustment

    Economizer Optimization and Adjustment „ Cost Benefit Analysis „ Assumptions „ Inspection and repair – $300 (3 hours work at $100/hr) „ 25% energy savings „ Rebate at 50% of incremental cost ($150) „ Simple payback before rebate: 2.4 months „ MTRC = 1.28 „ Next Steps: Market research and framing pri

  52. Slide 52: On Bill Financing

    On Bill Financing „ Product Description „ Provide On Bill Financing (OBF) through Xcel Energy for energy efficient upgrades for buildings less than 200,000 SF with a max of 200 kW demand for up to $100,000 at 0% interest. 52

  53. Slide 53: On Bill Financing

    On Bill Financing „ Energy Efficiency Financing is addressed in the Stipulation and Settlement Agreement for the CO 2012-2013 DSM Biennial Plan: „ “The Company agrees it will work with interested stakeholders between now and June 1, 2012 to develop a program to support financing of energy efficiency

  54. Slide 54: Plan B RTUs

    Plan B RTUs 2011 CO Settlement Requirement … the Company agrees to evaluate options for including an Early Replacement retrofit product in its portfolio. As part of that evaluation the Company shall consider the applicability of its residential replacement product for business customers… „ Xcel Ener

  55. Slide 55: Plan B RTUs

    Plan B RTUs „ Assumptions „ 7 year measure life „ Baseline equipment cost based on RTU purchased 7 years in the future in today’s dollars „ Rebate at 50% of incremental cost „ Simple payback before rebate: 1.9 years „ MTRC = 3.08 „ Next Steps: Continue PD process 55

  56. Slide 56: New Products in Development: Commercial

    New Products in Development for potential 60-day Notice or 2012/2013 Filing Commercial Status Potential Filing Computer Efficiency Launched Plate & Frame Heat Exchangers Launched LED Wall Pack fixtures Development 2012 60 Day Commercial Food Service Equipment Development 2012 60 Day Lighting Fixture

  57. Slide 57: New Products in Development: Industrial

    New Products in Development for potential 60-day Notice or 2012/2013 Filing Industrial Status Potential Filing Plan A VSD Air Compressors Launched VSDs on Chillers Launched Efficient Small Motors - ECMs Development 2012/2013 Biennial Turn Key Services Development 2012 60 Day Low loss filters (mist e

  58. Slide 58: New Products in Development: Residential

    New Products in Development for potential 60-day Notice or 2012/2013 Settlement Residential Status Potential Filing A/C Tune-Up Residential/Small RFP Pending (Settlement) 2012 60 Day Commercial EC motors for furnaces Concept Evaluation 2012 60 Day Residential Multi-family Concept Evaluation 2012 60

  59. Slide 59: Savings Have Ramped up Quickly

    Savings Have Ramped up Quickly 59

  60. Slide 60: Measurable Savings from Both Print and Email Participants

    Measurable Savings from Both Print and Email Participants 60

  61. Slide 61: New Ideas?

    New Ideas? „ CO Roundtable Ideas „ Submit complete Roundtable Idea Form at least 90 days prior to a CO Roundtable Meeting in order for an analysis to be presented at that meeting. „ Incomplete Idea Forms will be returned to submitter for completion „ 90 Day window starts when form is complete „ Roun

  62. Slide 62: Wrap-up / Open Discussion

    Wrap-up / Open Discussion Upcoming UpcomingRoundtable RoundtableSchedule: Schedule: Q4: Q4:February February16, 16,2012 2012 62

  63. Slide 63: Xcel Energy: Responsible by Nature

    Qe Xcel Energy’ RESPONSIBLE BY NATURE™

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