Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Corporate Update (May 2009)
71 slides from Xcel Energy's corporate update, May 14, 2009
Slide 1: Xcel Energy Colorado DSM Roundtable Discussion
Xcel Energy Colorado DSM Roundtable Discussion May 14, 2009 1:00pm to 4:15pm TSB Basement Room 019
Slide 2: Welcome and Introductions
Welcome and Introductions Contact Info: Suzanne Doyle Manager, DSM Regulatory Strategy & Planning Office Phone: 612-330-5518 Cell Phone: 612-599-5785 E-mail: Suzanne.Doyle@xcelenergy.com
Slide 3: Agenda
Agenda 1:00 – 1:05 Welcome, Introductions 1:05 – 2:05 KEMA Potential Study Overview 2:05 – 2:30 New Product Development Update 2:30 – 2:45 Break 2:45 – 3:45 DSM Program Updates 3:45 – 4:00 Compliance Updates 4:00 – 4:15 Wrap Up/Open Discussion 3
Slide 4: Colorado Potential Study Overview
Colorado Potential Study Overview Presented by: KEMA
Slide 5: New Product Development Update
New Product Development Update Presented by: George Spargo
Slide 6: DSM Roundtable New Product Development Procedure
DSM Roundtable New Product Development Procedure Interested persons may submit new program ideas or proposed revisions to existing programs to the Company in writing (link below). The Company screens and prioritizes all new program ideas for further research and development. Within three month
Slide 7: Product Development Process
Product Development Process Traditional “Stage-Gate” process that includes team or management review at key decision points: Ideation Framing Design Build Test Launch 7
Slide 8: Ideation
Ideation Objectives Compile ideas for new products from those who are closest to the customers Describe the product concept Filter the most viable ideas that will progress to the framing stage. This stage begins by asking: “What idea do you have that will solve a customer concern?” Ideas
Slide 9: Framing
Framing Objective: Evaluate the market opportunity of new product ideas This stage begins by asking: “What is the opportunity for this idea?” The ultimate deliverable of this stage will be a Framing Score, which helps to quantify the value of the idea as compared to others to prioritize work.
Slide 10: Scoring Matrix in Framing
Scoring Matrix in Framing Idea 1 Idea 2 Idea 3 T OT AL SCORE (117) 66 71 68 # Criteria Weigh Rating ra ting score ra ting score ra ting score 1 Political Request Yes 2 8 Neutral 1 x 8 x 8 x 8 No 0 2 Steady State High (>5 GW h) 3 Growth Potential 0 Medium (2-5 GW h) 2 (GW h) Low (<2 GW h) 1 3 Steady
Slide 11: Design
Design Objectives Refine and validate assumptions made in the Framing stage More clearly define the product and opportunity Process/Deliverables The process to obtain any legal approvals or meet any regulations begins here. The deliverables of this stage are high-level requirements, a pr
Slide 12: Build
Build Objectives at this stage: All high-level requirements are broken down to detailed requirements Project plans are written in order to accomplish physical development of the product and systems. Preliminary launch planning also begins. The deliverables of this stage are a testable prod
Slide 13: Test
Test Many of our DSM products do not require a concept test, they just need to pass the benefit-to-cost tests which are done back in the design or build stages. User requirements, usage scenarios and new operational processes can be tested for flow-through. This is sometimes informally done in t
Slide 14: Launch
Launch The process moves to launch phase once: Product, systems and processes have been tested/fixed/retested Personnel has been trained Collateral has been developed Objectives Stabilize all processes Transition the new product into product life cycle Execute launching the product
Slide 15: Review of Roundtable New Product Idea Submissions
Review of Roundtable New Product Idea Submissions Passive solar spaces Solar water heating Ground-source heat pumps Whole house ventilation fans Automated energy audits 15
Slide 16: Framing Scoring
Framing Scoring Framing - New Product Dev elopment Scoring Sheet 5/6/2009 Passive Whole Solar Water Automated Solar House Heating - Ground Energy Spaces Ventilation Does not Source Audits - Does not Fan - Does pass cost Heat Pumps Already pass cost not pass ben scored 68 ben TRC T OT AL SCORE (117)
Slide 17: Passive Solar Spaces
Passive Solar Spaces Design and construction features that capture solar energy for home heating Offsets gas or electric space heating Typical features include: Large southern glass exposure Limited non-southern glass exposure Sun shading to limit off-season heat gains Trombe wall mass
Slide 18: Passive Solar Spaces - Performance & Economics
Passive Solar Spaces- Performance & Economics Modeled with common CO new home HERS 100 Max savings = 18.4 Dth/yr (~18%); -235 kWh; => $160/yr Capital – incremental $5,000 20-40 year life 30% Federal tax credit => $1,500 credit on $5,000 $10/Dth gas cost => $184/yr savings Simple paybac
Slide 19: Solar Water Heating
Solar Water Heating Domestic water heating using thermal collectors System: Collectors, pump, closed loop heating with non-toxic anti-freeze, storage tank, controls, alternative hot water heater, roof mounted System for one home for family of four Capital cost $3,000 - $5,000 Base use = 20
Slide 20: Solar Water Heating - Economics
Solar Water Heating-Economics 20 year life 30% Federal tax credit => $900 credit on $3,000 $10/Dth gas cost => $120/yr savings Simple payback = $2,100/ $120 => 18 yr Potential rebate => $300 (similar to HW Htg $/%) Simple payback after rebate = $1,800/$120 = 15 yr Next Step: Do not go
Slide 21: Ground-Source Heat Pumps
Ground-Source Heat Pumps Taps into the earth’s relatively constant temperature. Moves heat from the home into the earth in the summer, and moves heat from the earth into the home in the winter. Underground piping loops are installed and heat is moved via water or brine pumped through the system.
Slide 22: Ground-Source Heat Pumps - Economics
Ground-Source Heat Pumps- Economics Residential capital costs range from $8,000-$10,000 Commercial capital costs can range from $400,000 to $2,300,000. Baseline is a 13 SEER refrigerated A/C unit – 291 gen kWh saved and 0.44 gen kW saved on the cooling side per unit. TRC = tbd Next Step: R
Slide 23: Whole House Ventilation Fans
Whole House Ventilation Fans Used in climates with large day and night time temperature swings to reduce air conditioner use. Multiple California utilities have prescriptive rebates ranging from $75 to $250 per unit. Fan runs when outside temp is below AC set point. Typical unit is 1,000 CFM
Slide 24: Whole House Ventilation Fans - Economics
Whole House Ventilation Fans- Economics 10 year life Installed costs: $750-$1,650 $0.10/kWh customer savings ($79/year) Customer simple payback = $750 / $79 => 9.5 yr TRC using most optimistic numbers (highest savings and lowest costs) = 0.29 Next Step: Do not go forward with current ass
Slide 25: Automated Energy Audits
Automated Energy Audits Nearly paperless process for home energy auditing Automated: Enrollment (on-line), assignment to Auditor Data prep for Auditor – name, address, energy history Field input via portable computer/PCA Prescribed ECMs, analytics Some flexibility with custom condition
Slide 26: Automated Energy Audits - Benefits
Automated Energy Audits - Benefits Uniformity of appearance, content, quality Searchable database for analytics, opportunities More competitive conditions for Auditors More audits, information, opportunities => more impacts ~ 2,000 audits/yr in MN & CO combined Efficiency of multiple dat
Slide 27: Automated Energy Audits - Costs
Automated Energy Audits - Costs Find appropriate system (not known at this time) Develop own system $250k - $500k Sponsor development of custom system/ownership rights Pay per use of system – developed or existing Next Step: Recommend moving forward with development 27
Slide 28: Break
(2) Xcel Energy’ Break
Slide 29: DSM Program Updates
DSM Program Updates Presented by: Peter Narog, Karen Rhodes, Shawn White, and Lisa Mahoney Xcel Energy
Slide 30: Residential and Low-Income Energy Efficiency Programs
Residential and Low-Income Energy Efficiency Programs Peter Narog
Slide 31: High Efficiency Air Conditioning
High Efficiency Air Conditioning 2009 Program Goals: 2,000 units; 1.2 GWh Program filed May 1 and launches May 15. Units purchased and installed prior to that date do not qualify. Rebated equipment: central air conditioners Air-source heat pumps Contractor training May 4 - 8 Customers
Slide 32: Heating System Rebates
Heating System Rebates 2009 Program Goals: 4,500 installs; 35,868 Dth Q1 Achievement: 175 installs; 1,505 Dth (4% of goal) Program launched January 1, 2009 Program promotions include advertising, trade relations, consumer education effort, and xcelenergy.com Current customer promotion for
Slide 33: Home Lighting & Recycling
Home Lighting & Recycling 2009 Goal: sell 1 million bulbs, estimated achievement 46.2 GWh Q1 Promotion Summary: Achievement: sold 550,000 bulbs, 25 GWh Retailers: Target, Costco, Ace Hardware, King Soopers Promotion: radio, on-line and print advertising Q2: Promote our CFL website sales
Slide 34: Energy Star Retailer Incentive Pilot Program
Energy Star Retailer Incentive Pilot Program 2009 Goal: sell 16,469 ENERGY STAR appliances, estimated savings 2.4 GWh Launched program April 1st. Partnering with Best Buy. Calculated appliance baseline using past sales. Providing incentives for a shift to the baseline of ENERGY STAR appliance
Slide 35: School Education Kits
School Education Kits 2009 Program Goal: 6,600 students from 6th grade classrooms. Internal decision to increase target to 15,000 students by year-end Selecting schools throughout service area To date participants: 13,000 (87% of goal) On target to achieve the revised goal by July 2009 35
Slide 36: Water Heater Rebates
Water Heater Rebates 2009 Program Goal: 1,250 installs; 1,513 Dth To date completions: 186 installs, 492 Dth (33% of goal) Program launched January 1, 2009 Program promotions include advertising, trade relations, consumer education effort (CBC) and xcelenergy.com 36
Slide 37: Insulation Rebates
Insulation Rebates 2009 Program Goal: 1,500 installs; 28,210 Dth To date completions: 486 installs, 7,536 Dth (27% of goal) Strong start due to GEO Insulate Colorado program Program will continue to be promoted through Update Newsletter, trade relations, advertising and xcelenergy.com. 37
Slide 38: Refrigerator Recycling
Refrigerator Recycling 2009 Program Goal: 3,250 units; 2,189,309 Gen kWh Program will launch June 1, 2009 Program provider Appliance Recycling Centers of America (ARCA) Program will be promoted through Energy Update Newsletter, summer bill insert, xcelenergy.com, and local “green” community
Slide 39: ENERGY STAR New Homes
® ENERGY STAR New Homes 2009 Program Goals: 2,200 gas participants, 34,658 Dth; 100 electric participants, 117,030 kWh Settlement outcomes: Simplified builder rebate structure and increased rebate levels Xcel Energy will pay raters directly for enrolling homes and completing SOW. Raters are
Slide 40: Home Energy Audits
Home Energy Audits 2009 Program Goals: 4,950 gas and 4,613 electric participants Launched February 1, 2009 Q1 Achievement: 389 participants (8% of goal) Program promotions include radio campaign, bill inserts, customer newsletters and xcelenergy.com Over 90% of audits completed YTD have be
Slide 41: Home Performance with ENERGY STAR
Home Performance with ENERGY STAR 2009 Program Goals: 300 combined participants; 9,617 Dth & 374,715 kWh Settlement outcomes: Extended installation timeframe from 6 months to 12 months Blower door test will be required for test-in and test-out phases Program promotions include consumer rad
Slide 42: Evaporative Cooling Rebates
Evaporative Cooling Rebates 2009 Program Goals: 3,800 units; 2.0 GWh To date completions: 149 installed, 123 MWh (6% of year end goal) Program promotions include advertising, trade relations, consumer education effort (CBC) and xcelenergy.com Researching whole house cooling systems (Tier 3)
Slide 43: Energy Efficient Showerheads
Energy Efficient Showerheads 2009 Program Goal: 20,000 participants Program will launch late May Partnering with Denver Water “Plumb Green, Save Blue” Pilot Program Providing two 1.5 gpm units for pilot 100 participants Collaborative marketing efforts through print materials Continui
Slide 44: Low-Income: Single- and Multi-Family Weatherization
Low-Income Single- and Multi-Family Weatherization SF Program Goals: 2.1 GWh, 53,551 Dth MF Program Goals: 323 MWh, 6,298 Dth Q1 Achievements (SF Only): 252 MWh, 4,078 Dth Programs launched January 1, 2009 Program promotions include consumer education effort, local “green” community events
Slide 45: Low-Income: Easy Savings Energy Kits
Low-Income Easy Savings Energy Kits 2009 Program Goals: 2.4 GWh, 36,666 Dth and 20,000 electric/gas customers 60-day notice submission updates: Decreasing showerheads from a 2.0 to a 1.5 gpm flow Electric savings calculation added to accommodate homes with electrically heated hot water. Ad
Slide 46: Low-Income: Non-Profit Energy Efficiency Program
Low-Income Non-Profit Energy Efficiency Program 2009 Program Goals: 201 MWh, 4,064 Dth Programs launched January 1, 2009 Expanding the existing Energy Outreach Colorado program Initial Audits taking place in Q1-Q2 for funding approval Program promotions include, consumer education effort,
Slide 47: Customer Behavior Change
Customer Behavior Change 2009 Program Goals: 60,000 direct interactions (50% Electric/50% Gas) Program launched February 2009. Inaugural year of behavior change campaign; program purpose is to create disruptive and permanent behavior change in the way customers use energy. Campaign efforts i
Slide 48: Commercial Energy Efficiency Programs
Commercial Energy Efficiency Programs Karen Rhodes
Slide 49: Cooling Efficiency
Cooling Efficiency Program continuation from 2008 with slight modifications addressed in the 60-day notice Participant Goals: 234 projects; 6.17 GWh Q1 Achievement: 40 projects; 1.05 GWh (17% of goal) 60-day notice was filled to ensure the compliance with the IECC 2006 code Added a part lo
Slide 50: Customer Behavior Change
Customer Behavior Change 2009 Program Goals: 1,973 direct interactions; 1,385 Electric/593 Natural Gas Program launched January 2009. Inaugural year of behavior change campaign; program purpose is to create disruptive and permanent behavior change in the way customers use energy. Campaign ef
Slide 51: Data Center Efficiency
Data Center Efficiency Program launched March 16, 2009 Participant Goals: 10 projects; 5.9 GWh Q1 Achievement: none, launched late Q1 Program promotions include conservation expo, advertising, media relations, direct mail, newsletter articles, account manager training & vendor prequalificati
Slide 52: Energy Management Systems
Energy Management Systems Program launched June 2007 Participant Goals: 29 electric & 14 gas Impact goals: 4.2 GWh, 6,286 Dth Q1 Achievement: 4 electric projects (14% of goal); 0 gas projects 1.6 GWh (38% of goal); 0 Dth (0% of goal) Program promotions include conservation expo, accoun
Slide 53: Furnace Efficiency
Furnace Efficiency Program launched January 1, 2009 Participant Goals: 50 projects; 4204 Dth Q1 Achievement: 2 projects in process; no savings yet Currently running a double rebate promotion Effective April 1 through May 31 Applications should be submitted by June 15 Rebate levels will
Slide 54: Lighting Efficiency
Lighting Efficiency Program launched January 1, 2007 Participant Goals: 632 projects; 32 GWh Q1 Achievement: 230 projects; 17 GWh (55% of goal) Program promotions include Energy Expo event, advertising, newsletter articles, vendor emails, and account management training Increased the Light
Slide 55: Business New Construction
Business New Construction Launched as Energy Design Assistance in January 2006 Changed name for improved online search results Q1 Achievement: 2 projects; 736,000 kWh (4% of goal) Program promotions include new brochure created and distributed to customers, trade allies and at events. Cust
Slide 56: Recommissioning
Recommissioning Original program launched January 1, 2007 Gas component launched February 1, 2009 Participant Goals: 36 projects (includes studies and implementation; 2,199 Dth; 3.9 GWh Q1 Achievements: 2 approved studies; 0 Dth; 0 GWh (0% of goal) Program promotions include vendor newslet
Slide 57: Segment Efficiency: Commercial Real Estate
Segment Efficiency: Commercial Real Estate Program launched March 16, 2009 Participant Goals: 51 projects; 528,904 kWh Q1 Achievement: 5 projects enrolled; studies are in process, no energy savings implemented yet Program promotions include: email communications to customers and trade, BOMA
Slide 58: Small Business Lighting Efficiency
Small Business Lighting Efficiency Program scheduled to launch June 2009 Participant Goals: 50 projects; 1.15 GWh Program promotions will include a customer seminar, community events, direct mails, vendor emails, Business Solutions Center training, vendor trainings, and newsletters. Franklin
Slide 59: Standard Offer
Standard Offer Program launched Feb 1, 2009 Participant Goals: 12 projects; 473 Dth and 1.77 GWh Q1 Achievement: 5 Technical Energy Audits pre-approved for rebate 1 bundle of energy conservation measures pre-approved for rebate Program promotions To Date: Launch announcement through th
Slide 60: Industrial Energy Efficiency Programs
Industrial Energy Efficiency Programs Shawn White
Slide 61: Process Efficiency
Process Efficiency Program launched January 16, 2009 Participant Goals: 7 customers launching in the program (Phase 1) 5 customers proceed to studies/scoping (Phase 2) 1 customer processing rebates (Phase 3) 9,000 Dth and 0.48 GWh Q1 Achievement: 2 customers enter Phase 1 Program pro
Slide 62: Boiler Efficiency
Boiler Efficiency Program launched Jan. 15, 2009 Modifications (rebate changes, tech assumption changes) filed in 60-day notice. Participant Goals: Filed 146 participants; 31,650 Dth Q1 Achievement: 0 projects; 0 Dth (0% of goal) Q1 program promotions: expo breakout session, customer e-m
Slide 63: Custom Efficiency
Custom Efficiency Electric launched 2006; Gas launched January 2009 Participant Goals: Electric 43 projects; 7,467,223 GWh Gas 14 projects; 13,492 Dth Q1 Achievement: Electric 14 projects; 1,677,640 GWh (22% of goal) Gas 0 projects; 0 Dth (0% of goal – typical for new custom program)
Slide 64: Motor & Drive Efficiency
Motor & Drive Efficiency Electric - launched 2006 Impact Goal: 20.7 GWh Q1 Achievement: 5.5 GWh (27% of goal) Program promotions include CO expo, account manager meetings, trade meetings and vendor 1:1 training, Sales training with Motor Decision Matters (MDM) webinar. 64
Slide 65: Compressed Air Efficiency
Compressed Air Efficiency Electric - launched 2006 Impact Goals: 9.1 GWh Q1 Achievement: 1.9 GWh (21 % of goal) Program promotions include CO expo, account manager meetings, trade meetings and vendor 1:1 training, DOE Compressed Air Challenge Seminar for customers and trade. 65
Slide 66: Load Management Programs
Load Management Programs Lisa Mahoney
Slide 67: Saver's Switch
Saver’s Switch Program launched in 2001 2009 goal: install 19,500 switches for incremental peak load reduction of 22 MW. Increased annual bill credit to $40 (from $25 in 2008) Q1 Achievement: Received 1,500 applications, installed 428 switches. In response to the increased enrollment targe
Slide 68: Compliance Update
Compliance Update Suzanne Doyle
Slide 69: Compliance Activities
Compliance Activities 60/90-Day Notices - provides Roundtable with notice of program changes. Notification dates: April 14, 2009 - 2 programs (Boilers, Cooling) April 30, 2009 - 4 programs (Motors, Compressed Air, Furnaces, & Home Performance) 2009/10 DSM Plan Amendment – filed 5/1/09 Adde
Slide 70: Compliance Activities
Compliance Activities DSM DSMrelevant relevantcompliance complianceinformation informationisisavailable availableat atthe theDSM DSM Website: Website: http://www.xcelenergy.com/Company/About_Energy_and_Ra http://www.xcelenergy.com/Company/About_Energy_and_Ra tes/DemandSideManagement/Pages/Home.aspx
Slide 71: Open Discussion/Wrap-Up
Open Discussion/Wrap-Up 2009 2009Roundtable RoundtableSchedule, Schedule,Remaining RemainingMeetings: Meetings: August August13, 13,2009 2009 November 18, 2009 November 18, 2009