Public Service Company Of New Mexico · OTC:PNMXO
Public Service Company Of New Mexico — Investor Presentation (September 2010)
23 slides from Public Service Company Of New Mexico's investor presentation, September 2010
Slide 1: Electric Integrated Resource Plan: Planning Your Energy Future - Together
Electric Integrated Resource Plan Planning Your Energy Future - Together Public Participation Meetings
Slide 2: PNM Overview
PNM Overview Founded in 1917 2,713 MW capacity Coal Nuclear Natural Gas Wind 499,000 customers 14,653 miles of distribution $1.0B total revenue 1,700 employees
Slide 3: Help Define Your Energy Future
Help Define Your Energy Future The IRP Working Group objective is to create a plan which meets the following criteria: Maintain Reliability Least environmental impact Most cost-effective
Slide 4: Planning Your Energy Future – Together
Planning Your Energy Future – Together 20-year resource planning horizon Revisit plan every three years Create a four-year action plan Submit to NM Public Regulation Commission for review & acceptance
Slide 5: Electric Integrated Resource Plan Overview
Electric Integrated Resource Plan OVERVIEW • Electricity Basics • A Balanced Approach • “You Choose” Exercise • Future Resources • The IRP Process
Slide 6: Electric Delivery System
Electric Delivery System When electricity leaves a power plant (1), its voltage is increased at a “step-up” substation (2). Next, the energy travels along a transmission line to the area where the power is needed (3). Once there, the voltage is decreased or “stepped-down,” at another substation (4),
Slide 7: Today’s Resource Mix
Today’s Resource Mix Coal Nuclear 0.2% 8.8% 5.2% Natural Gas Purchases 4.2% Renewables 19% 62.4% Energy Efficiency
Slide 8: Future Resource Balance
Future Resource Balance Reduce use at The Balance the customer Obligation to provide Energy clean, reliable and Conservation affordable service Energy Efficiency Demand Response All options have advantages and disadvantages Build new resources Fit within capital and Renewables rate constraints Conve
Slide 9: Annual Customer Load Profile
Annual Customer Load Profile PNM System Daily Peak Demand (MW) 2,500 2,000 1,500 1,000 500 0 r r r er y t ch ry il be e ay y be be us ar pr un ul ob ua ar M m em em ug ru J A J ct M te an eb A ov ec O ep J F N D S
Slide 10: Energy Efficiency Programs
Energy Efficiency Programs Residential Commercial EUEA Requirements: 5% by 2014 Residential Lighting PNM Self Direct 10% by 2020 Refrigerator-Recycling Commercial Comprehensive ENERGY STAR® • Building Efficiency Standards Home • Retrofit Rebate • Quick Saver Low Income Lighting & Refrigerators
Slide 11: Load Management Programs
Load Management Programs Residential Commercial EUEA Requirements: PNM Power Saver PNM Peak Saver 5% by 2014 Cycles non-critical Uses tailored loads (refrigerated AC curtailment and load 10% by 2020 units, pool pumps, etc.) management strategies during critical peak to provide firm demand times resp
Slide 12: Renewable Resources
Renewable Resources Wind Biomass/ Solar Geothermal Inexhaustible supply Renewable fuel supply Inexhaustible supply No emissions Limited emissions No emissions No water needed Water requirements No-to-High water requirements High capital costs Moderate capital costs High capital costs Intermittent Av
Slide 13: Managing Solar and Wind Energy
Managing Solar and Wind Energy Profile of Typical Sum m er and Winter Peak for PNM Re tail Summer Peak Day Winter Peak Day Summer Solar Summer Wind 110% 100% 90% 80% % of Peak Hour/Peak Day 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour MST
Slide 14: Conventional Resources
Conventional Resources Nuclear Coal Natural Gas Zero CO2 emissions High air emissions (SO2, Cleanest burning fuel – Radioactive waste NOx CO2, particulates) some emissions Available on demand Available on demand Available on demand High capital costs Moderate capital costs Low capital costs Low oper
Slide 15: Cost Comparison of Options
Cost Comparison of Options Levelized Cost of Energy for New Technologies $300.00 $250.00 $200.00 Average Cost of Generation $/MWh $150.00 $100.00 $50.00 $- Wind Nuclear Coal Combined Cycle Biomass Coal w /CC Solar Gas: CT Gas:LMS Technology Capital & FOM Fuel & VOM CO2
Slide 16: Which is more Important to you?
Which is more Important to you? A. Maintain high reliable energy access to customers. “Keep the lights on.” B. Minimize customer rates for energy. C. Use the least amount of water possible. D. Minimize greenhouse gases. E. Grow NM’s energy economy through new jobs and manufacturing.
Slide 17: Resource Planning: Why Resources are Added
Resource Planning: Why Resources are Added Why Is It Necessary to Add Resources? Load forecasts are Increasing Need a particular kind of resource A generation resource needs replacement A transmission path may be constrained Meet rules and regulations, state & federal
Slide 18: Future NM Load with Resource Needs
Future NM Load with Resource Needs Net System Peak Demand with DR Reserve Margin 15% Total Existing and Contracted Resources 3,000 2,500 2,000 MW 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Slide 19: Renewable and Energy Efficiency Resource Needs
Renewable and Energy Efficiency Resource Needs Energy Efficiency Renewable Energy System Energy 14,000 Renewable Energy Act 6% - 2010 12,000 10% - 2010 10,000 15% - 2015 20% - 2020 Annual Energy - in GWh 8,000 Renewable Diversity 6,000 20% Solar 20% Wind 4,000 10% Non-wind, non-solar 3% Distributed
Slide 20: 2008 IRP 4-year Action Plan
2008 IRP 4-year Action Plan Promote Demand Side Resources Filed for expanded programs on September 15, 2008 Expand Renewable Distributed Generation Renewable Plan added Large PV program Add Renewable Resources Added biogas, seeking to add solar Add Natural Gas Resources Added Luna & Lordsburg Future
Slide 21: IRP Working Group Schedule
IRP Working Group Schedule Timeframe Location Meet monthly PNM Headquarters First Wednesday Alvarado Square September 2010 – June 2011 Albuquerque, NM 9:30am-3:30pm or 1:30pm-3:30pm Special field visits to PNM plants around the state
Slide 22: Your Participation Matters! Planning 2011-2030
Your Participation Matters! Planning 2011-2030 How much change in our energy mix is desirable? How much are we willing to pay? What tradeoffs are we willing to make?
Slide 23: Complete Sign Up Now! Form
Complete Sign Up Now! Form Please give to a PNM employee as you leave the meeting
Public Service Company of New Mexico (PNM) — Investor Presentation (September 2010) on 6ix