Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Corporate Update (November 2023)

50 slides from Xcel Energy's corporate update, Nov 8, 2023

  1. Slide 1: Q3 – 2023 Colorado DSM Roundtable

    Q3 – 2023 COLORADO DSM ROUNDTABLE November 8, 2023

  2. Slide 2: Agenda

    AGENDA 1:00 p.m. Welcome and DSM Regulatory Updates 1:15 p.m. Q3 Achievement Update 1:30 p.m. IQ/DI Outreach and Engagement 1:45 p.m. 2024-2026 DSM BE Plan Updates • DR PIM and Electric DM Portfolio/Natural Gas DM • Heat Savers Study • RFP Update • BE Budget Update • Residential New Home Constructio

  3. Slide 3: DSM Regulatory Updates Q3 – 2023

    DSM REGULATORY UPDATES Q3 – 2023 Gina Gargano-Amari & Nick Minderman | DSM Regulatory ©2023 Xcel Energy | Q3 - 2023 DSM Roundtable 3

  4. Slide 4: Q3 60-Day Notices

    Q3 60-Day Notices 2023 Product Evaluation Updates 2023 DSM/BE Plan Settlement  Electric Vehicle Optimization  Business HVAC+R Systems • Notification Date (September 1, 2023) • Notification Date (July 31, 2023) • Implementation Date (October 3, 2023) • Implementation Date (September 1, 2023) ©2023

  5. Slide 5: Q3 Stakeholder Engagement Updates

    Q3 Stakeholder Engagement Updates • Tiered Program Offerings for the Income Qualified Disproportionately Impacted Community (August 9, 2023) • On-Bill Financing (August 23, 2023) • Point-of-Sale, All Electric New Construction & Affordability Programs & Heat Pumps (September 6, 2023) • Proxy Plant Te

  6. Slide 6: DSM Regulatory Calendar

    DSM Regulatory Calendar  Transportation Electrification Plan (Proceeding No. 23A-0242E) • Rebuttal Testimony to be filed on November 17, 2023  Commission’s Examination of 3rd Party Provision of Gas DR Services, Virtual Power Plants and Neighborhood Electrification (Proceeding No. 23M-0466EG) • Wor

  7. Slide 7: DSM Regulatory Calendar

    DSM Regulatory Calendar Upcoming Roundtables - Save the Date!  Q4-2023 - February 14th, 2024  Q1-2024 - May 8th, 2024 ©2023 Xcel Energy | Q3 - 2023 DSM Roundtable 7

  8. Slide 8: DSM Potential Study Stakeholder Feedback

    DSM Potential Study Stakeholder Feedback Proposed Approach Prior Approach Establish a dedicated potential study working group that includes Inform stakeholders during DSM Roundtables; Utilize Strategic Issues stakeholders (incl. scope, guiding principles, schedules, and deadlines) proceedings to deb

  9. Slide 9: DSM Achievement Update Q3 – 2023

    DSM ACHIEVEMENT UPDATE Q3 – 2023 Mark Schoenheider | Manager, Customer Energy Solutions ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 9

  10. Slide 10: 2023 Q3 Achievement Highlights

    2023 Q3 Achievement Highlights Electric Portfolio Gas Portfolio • 365 GWh (75% of 487 GWh Target) • 594,227 Net Dth (71% of 832,725 Target*) • 69 MW (69% of 100 MW Target) • $15.8M Spend (76% of $20.7M Budget*) • $73M (78% of $93M Budget) Business Programs Business Programs • 51,849 Net Dth • 262 GW

  11. Slide 11: Marketing Campaigns & Trade Relations Outreach

    Marketing Campaigns & Trade Relations Outreach Residential Customer Outreach • Emails – TOU outreach directing customers to storefront • Mass marketing – Payment Options & Managing higher energy costs, Home Energy Squad • Emails, Direct Mail – re-engaged customers affected by ARCA situation • Apogee

  12. Slide 12: Marketing Campaigns & Trade Relations Outreach

    Marketing Campaigns & Trade Relations Outreach Business Q3 2023 Rocky Mountain Facility Managers Expo • Wednesday July 26th, Arvada Center, Exhibit and presentation. Certifiably Green Webinar DSM Presentation o With the Business Solutions Center 7/27 Rockies Game for Rocky Mountain Mechanical Contra

  13. Slide 13: IQ/DI Outreach and Engagement Q3 - 2023

    IQ/DI OUTREACH AND ENGAGEMENT Q3 - 2023 Tami Gunderzik | Strategic Segment Team Lead ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 13

  14. Slide 14: IQ/DI Outreach and Engagement

    IQ/DI Outreach and Engagement EOC Funded Outreach and Education  3 outreach events  178 units in multi-family residence (upgrade/retrofit information, EE tips, assistance programs)  Continuous improvement on optimizing the educational literature. Xcel Energy's RED Truck  Awareness building in th

  15. Slide 15: 2024-2026 DSM BE Plan Updates

    2024-2026 DSM BE PLAN UPDATES ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 15

  16. Slide 16: DR PIM, Electric DM Portfolio & Natural Gas DM

    DR PIM, ELECTRIC DM PORTFOLIO & NATURAL GAS DM Ryan Bruers | Manager, Business Solutions and Result ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 16

  17. Slide 17: Electric DM Portfolio: Goals

    Electric DM Portfolio Goals • Approved Electric DR Goals 2024 2025 2026 Summer 593 628 663 Winter 281 301 321 − Dispatchable − Maximum megawatts on Peak Summer Day − Contracted or deemed value © 2023 Xcel Energy I Q3 - 2023 DSM Roundtable 17

  18. Slide 18: Electric DM Portfolio: Savings Targets

    Electric DM Portfolio Savings Targets • 2024-2026 Electric DR Savings Targets 2024 2025 2026 Summer 630 651 675 Winter 287 301 322 • Marketing Efforts (Customer Meetings, Seminars, Social Media, etc..) • Expand/Evolve existing programs • New Programs • Leverage Technology ©2023 Xcel Energy | Q3 - 20

  19. Slide 19: Electric DM Portfolio: Budget

    Electric DM Portfolio Budget • 2024-2026 Electric DR Budget 2024 2025 2026 Budget $20,900,000 $21,700,000 $22,400,000 ©2023 Xcel Energy | Q3 - 2023 DSM Roundtable 19

  20. Slide 20: Natural Gas DR

    Natural Gas DR  No Gas DR goals for 2024-2026  RFI Issued/RFP Update  Updated review of other Utilities Gas DR − Relatively new area − Limited success  Heat Savers ©2023 Xcel Energy | Q3 - 2023 DSM Roundtable 20

  21. Slide 21: DR PIM

    DR PIM Overview  SI DR PIM was a two-tiered PIM − Dispatch Incentive and Capacity Incentive  Commission declined DR PIM in SI, but to include an update proposal in DSM Plan − Include net economic benefits − Capacity and callability attributes  Company’s new DR PIM consists of 2 components − Award

  22. Slide 22: Heat Savers Study

    HEAT SAVERS STUDY Kevin Scott | Product Developer ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 22

  23. Slide 23: Heat Savers Update

    Heat Savers Update Objective  Goal is to shift gas load between 6am and 9am due to infrastructure limitations during peak time  Concept – create a program that is like AC Rewards for gas using the same implementer Agenda  Discuss survey conducted (25 participants) and results  M&V analysis © 202

  24. Slide 24: Season 2 Survey

    Season 2 Survey Two primary reasons for the survey: 1. Ask for furnace data – utilize furnace output with runtime to estimate gas usage − Compare against Resideo data − Compare against Copper Labs data 2. Ask customers questions to inform season 3 decisions and beyond − Schedules − Incentive levels

  25. Slide 25: Season 2 Survey - Schedules

    Season 2 Survey - Schedules 13 How was the schedule created? How frequently are manual adjustments to the run schedule or setpoint made? 4 12 Currently utilizing a pre- defined schedule? 17 Someone in house Someone in house created it at one created it at one point and have not point and have adjust

  26. Slide 26: Season 2 Survey - Schedules

    Season 2 Survey - Schedules Importance to save money Importance of run Importance to reduce on natural gas bill utilizing schedule to maintain a natural gas by utilizing thermostat run schedule comfortable temperature thermostat run schedule range 1 0 1 0 1 0 2 0 2 0 2 1 3 0 3 0 3 0 4 0 4 0 4 1 5 1

  27. Slide 27: Season 2 Survey - Incentives

    Season 2 Survey - Incentives How many events would you be willing to participate in to receive a $50 incentive? 8.6 How many events would you be willing to participate in to receive a $100 incentive? 13.7 © 2023 Xcel Energy 27

  28. Slide 28: Season 2 Survey – Event Motivation

    Season 2 Survey – Event Motivation How likely are you to participate in an How likely are you to participate in an event to provide system stability event to reduce natural gas? for all natural gas customers? Not at all likely 0 Not at all likely 1 Not so likely 1 Not so likely 3 Somewhat likely 6 S

  29. Slide 29: Season 2 Survey – Emergency Events

    Season 2 Survey – Emergency Events How many events would you participate in over the course of a weeklong streak of cold days? What about up to 2 days? Two or fewer 6 Not at all likely 8 Three to five 8 Not so likely 6 Six or more 9 Somewhat likely 10 None 2 Very likely 0 Extremely likely 1 How like

  30. Slide 30: Heat Savers M&V

    Heat Savers M&V 2022-2023 Heating Season November 8, 2023

  31. Slide 31: Copper Labs Analysis

    Copper Labs Analysis Overview • 5 participating sites with data. • Readings from natural gas meters. • Data does not reflect demand response events. Title of Presentation 31

  32. Slide 32: Runtime Analysis

    Runtime Analysis Event Data Baseline • Residio: 15-minute interval • Grand County load shapes runtime data (2018) • Average runtime for all • Comparision day selection participating • Low, High, Average • Furnace survey temperatures • Average input capacity: • Scaled to best fit with event ~100,000

  33. Slide 33: Event 3: Comparison with Baseline

    Event 3: 2/1/2023 Comparison with Baseline 9 25 8 20 Outdoor Air Temperature (Degrees F) 7 6 15 5 Runtime 4 10 3 2 5 1 0 0 12:00 AM 2:00 AM 4:00 AM 6:00 AM 8:00 AM 10:00 AM 12:00 PM 2:00 PM 4:00 PM 6:00 PM 8:00 PM 10:00 PM 12:00 AM Time of Day Average DR Event Day Operation Baseline Loadshape OAT

  34. Slide 34: Summary Event Preliminary Savings

    Summary Preliminary Savings (Therms *based on 100,000 BTU/hr) Event Date Preheat (-2 hrs) Event Snapback (+2 hrs) Participant Count Total (Therms) Outdoor Temp 1 1/20/2023 20.2 161.7 -2.8 131 179 9.6 2 1/24/2023 3.7 153.3 8.6 131 166 7.8 3 2/1/2023 -10.1 49.7 -10.3 129 29 1.2 4 2/3/2023 -43.7 74.4 -

  35. Slide 35: Areas of Improvement

    Areas of Improvement • Using Resideo telemetry data as a baseline • Improving baseline weather days with regressions Heat Savers M&V 35

  36. Slide 36: RFP Update

    RFP UPDATE Stephen Mullaly | Product Developer ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 36

  37. Slide 37: 2023 Colorado Settlement RFP Update

    2023 Colorado Settlement RFP Update  RFI received 14 idea submissions − Ideas covered both electric and gas DR for commercial and residential customers  After review, two areas of interest were selected for drafting an RFP for potential pilots − Development of a Demand Response Aggregator Marketpl

  38. Slide 38: BE Budget Update

    BE BUDGET UPDATE Mark Schoenheider | Manager, Customer Energy Solutions ©2022 Xcel Energy | Q2 - 2023 DSM Roundtable 38

  39. Slide 39: Beneficial Electrification Budget Update

    Beneficial Electrification Budget Update Heat pump rebates in the Plan will be lower than current levels BE Portfolio Budget Dth Goal $/Dth 2024 $9.5M 257,000 $36.96 2025 $21M 622,000 $33.76 2026 $37M 1,143,000 $32.37  BE Rebate progression – cold climate heat pump as an example: − $600 to $1,000 p

  40. Slide 40: Residential New Home Construction

    RESIDENTIAL NEW HOME CONSTRUCTION Rob Buchanan | Product Portfolio Manager ©2022 Xcel Energy | Q3 - 2023 DSM Roundtable 40

  41. Slide 41: Residential New Home Construction: Strategic Issues

    Residential New Home Construction How we got here: Strategic Issues “Accordingly, we require that the ESNH program support only all-electric housing by June 30, 2024.” © 2023 Xcel Energy I Q3 - 2023 DSM Roundtable 41

  42. Slide 42: Residential New Home Construction

    Residential New Home Construction f/k/a ENERGY STAR New Homes As a result of the all-electric requirement and ENERGY STAR Homes no longer being eligible to participate, the program will be renamed Residential New Home Construction Homes with permit dates on or before June 30, 2024 will be subject to

  43. Slide 43: Residential New Home Construction Tiers

    Residential New Home Construction f/k/a ENERGY STAR New Homes Requirement Tier 1 Tier 2 Tier 3 Energy Star NextGen and Must meet both - - ZERHv2 Envelope UA with At least At least respect to IECC 2021 - 10% better 25% better code minimums Infiltration rate (ACH50) - ≤1.5 ≤1.0 Continuous envelope - O

  44. Slide 44: Residential New Home Construction: Why this change?

    Residential New Home Construction Why this change? The legacy program design is inadequate to the task of electrification • Equipment swaps increase customer utility bills, cause negative customer experiences, and could unreasonably strain the distribution grid ©2023 Xcel Energy | Q3 - 2023 DSM Roun

  45. Slide 45: Residential New Home Construction: Why this change?

    Residential New Home Construction Why this change? Demonstrate market leadership and drive market transformation • Since 2021, 70% of Energy Star New Homes participating dwellings have been less than 20% better than code − Residential New Home Construction Tier 1 is 30% better than IECC 2021 ©2023 X

  46. Slide 46: Connecting customers to builders

    Residential New Home Construction Connecting customers to builders Elevate the status of Program-qualifying homes and builders • Highlight benefits • Improve market share for high performance builders ©2023 Xcel Energy | Q3 - 2023 DSM Roundtable 46

  47. Slide 47: Market transformation and skill building

    Residential New Home Construction Market transformation and skill building Provide top-class trainings 1. Contracted with EEBA and Construction Instruction (Ci) for trades training on Zero Energy Ready v2 and Energy Star NextGen 2. ANSI/RESNET/ACCA 310 training 3. Engaging industry partners and othe

  48. Slide 48: Time for a Break

    Xcel Energy’ TIME FORA BREAK ~—

  49. Slide 49: DSM Regulatory Contacts

    DSM Regulatory Contacts Gina Gargano-Amari Case Specialist II gina.l.gargano-amari@xcelenergy.com Melanie Castro Regulatory Administrator melanie.d.castro@xcelenergy.com ©2022 Xcel Energy | Q3 - 2022 DSM Roundtable 49

  50. Slide 50: 2020 Xcel Xcel Energy Energy | Q2 - 2023 DSM Roundtable

    ©2022 © 2020 Xcel Xcel Energy Energy | Q2 - 2023 DSM Roundtable 50

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