Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Technical Presentation (June 2020)
23 slides from Xcel Energy's technical presentation, Jun 18, 2020
Slide 1: 2020 Tolk Analysis First Technical Conference
2020 Tolk Analysis First Technical Conference 06/18/2020
Slide 2: The Tolk Analysis
The Tolk Analysis • The uncontested comprehensive stipulation in New Mexico Case No. 19-00170-UT requires: – SPS to submit a robust analysis of Tolk abandonment and potential means of replacement by June 2021 (“The Tolk Analysis”) – The Tolk Analysis will be incorporated into SPS’s 2021 Integrated R
Slide 3: Stipulation Requirements
Stipulation Requirements The Tolk Analysis shall include evaluation of: (i) the type, technical characteristics, and cost of the resources needed or available to replace the capacity provided by Tolk (ii) The economically optimal (in terms of the public interest) abandonment dates for Tolk (iii) The
Slide 4: Technical Conferences
Technical Conferences • First Technical Conference – Present and solicit feedback on the basic parameters and approach of the Tolk analysis • Second Technical Conference – Provide and solicit feedback on the preliminary conclusions of the Tolk analysis • Both technical conferences were to be held in
Slide 5: Agenda – Session 1 of 1st Technical Conference
Agenda – Session 1 of 1st Technical Conference To conduct a robust analysis in the timeframe required, SPS is presenting the following critical items for immediate consideration and review: 1. General approach of the Tolk Analysis 2. Request for Proposal (“RFP”) to acquire the services of an IE 3. D
Slide 6: Agenda – Session 2 of 1st Technical Conference
Agenda – Session 2 of 1st Technical Conference The second session of the first technical conference will include the following discussions: 1. Finalize the RFI for pricing of replacement resources 2. SPS’s Encompass model 3. Further discussion on the scenarios outlined in today’s presentation 4. Cri
Slide 7: Agenda Item 1: General Approach to the Tolk Analysis
Agenda Item 1: General Approach to the Tolk Analysis
Slide 8: General Approach
General Approach • A Present Value Revenue Requirement (“PVRR”) Analysis using the Encompass production cost modeling software • Encompass will be discussed in detail during the second session of the first technical conference • Evaluate multiple retirement and operating scenarios for SPS’s coal uni
Slide 9: Process
Process Present Incorporate Issue RFI for Update the preliminary results from PVRR Appoint IE Replacement Encompass results at the RFI in analysis Resources Model 2nd technical Encompass conference 9
Slide 10: Agenda Item 2: The Independent Evaluator
Agenda Item 2: The Independent Evaluator
Slide 11: Independent Evaluator
Independent Evaluator • The New Mexico stipulation requires the Tolk Analysis to include a review by an IE • SPS intends to issue an RFP to acquire the services of an IE – SPS is soliciting comments from interested parties to be submitted via email – Comments to be received within 7 days of this mee
Slide 12: DRAFT Scope of Work Independent Evaluator
DRAFT Scope of Work Independent Evaluator Executive Summary Southwestern Public Service Company (“SPS”) is planning to issue an all-source Request for Information (“RFI”) to obtain current pricing, technical characteristics, and other relevant information for potential generating resources. The resu
Slide 13: DRAFT IE Responsibilities
DRAFT SPS is required to analyze a range of operating parameters and retirement dates for Tolk Station. The analysis will incorporate the pricing and technical characteristics obtained in the RFI process. The results of the analysis will be included in SPS’s next Integrated Resource Plan (“IRP”), to
Slide 14: DRAFT
DRAFT evaluate the draft proposal submittal requirements and standard bidder forms and make recommendations as needed. Review Bidder Communications Upon issuance of the RFI, the SPS staff directly involved with the RFI will adhere to strict communication protocols with Bidders. The IE will examine a
Slide 15: Agenda Item 3: RFI – Pricing for Replacement Resources
Agenda Item 3: RFI – Pricing for Replacement Resources
Slide 16: RFI for Replacement Resources
RFI for Replacement Resources • SPS will issue an all-source solicitation for replacement generating resources • SPS will consider all ownership structures including, but not limited to, purchased power agreements, build-own-transfers, and company self-built facilities • Bidders will be required to
Slide 17: Southwestern Public Service Company Request for Information Introduction
DRAFT Southwestern Public Service Company Request for Information Introduction: This announcement constitutes a Request for Information (“RFI”) notice soliciting current pricing, technical characteristics, and other relevant information for potential generating resources. This is not a Request for P
Slide 18: Qualifications and Assumptions
DRAFT Qualifications and Assumptions: • Expressions of interest should be from existing or proposed generating facilities within the SPS zone or delivered to the SPS zone from existing or proposed sites within the Southwest Power Pool. • Expressions of interest should include a proposed Commercial O
Slide 19: Proposal Submission Deadline, Follow-up Requests, Confidentiality
DRAFT Proposal Submission Deadline: Proposals will be accepted until 5:00 P.M. Central Time on Friday, August __, 2020. All Proposals must be transmitted by express, certified or registered mail, or hand delivered to SPS’s RFI point of contact at the following address: SPS 2020 All-Source RFI submis
Slide 20: Agenda Item 4: Overview of Scenarios being Evaluated
Agenda Item 4: Overview of Scenarios being Evaluated
Slide 21: Multiple Tolk Retirement Scenarios
Multiple Tolk Retirement Scenarios • Reduced operations – SPS’s currently implemented plan – Both units are economically dispatched June – September and offline in off-peak months • Economic Dispatch – Both units are economically dispatched in all months • Earliest Retirement of Both Tolk Units – Bo
Slide 22: Multiple Tolk Retirement Scenarios Continued
Multiple Tolk Retirement Scenarios Continued • Staggered Retirement of Tolk Units – One unit is retired as soon as feasible* – Second unit will be retired upon depletion of economically available water • Earliest Retirement of all Coal-Burning Units * Feasibility will be determined based on COD date
Slide 23: (2) Xcel Energy’
(2) Xcel Energy’