Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Corporate Update (August 2013)
56 slides from Xcel Energy's corporate update, Aug 21, 2013
Slide 1: Colorado DSM Roundtable
Colorado DSM Roundtable August 21, 2013 1:00 – 4:00 pm 1800 Larimer St., Room 03G01 Denver, CO 80202
Slide 2: Welcome and Introductions
Welcome and Introductions Shawn White Manager, DSM Regulatory Strategy & Planning P: 303-294-2398 E: Shawn.M.White@xcelenergy.com
Slide 3: Agenda
Agenda 1:00 – 1:05 p.m. Welcome and Introductions 1:05 – 1:30 p.m. 2014 Plan & Regulatory Update 1:30 – 1:50 p.m. DSM Program Highlights 1:50 – 2:30 p.m. Product Development 2:30 – 2:45 p.m. Break 2:45 – 3:15 p.m. Energy Modeling Applications (NREL) 3:15 – 4:00 p.m. Strategic Issues
Slide 4: Regulatory Update
Regulatory Update Presented by Shawn White Compliance information available on Xcel Energy’s DSM website: http://www.xcelenergy.com/About_Us/Rates_&_Regulations/Regulatory_Filings/CO_DSM
Slide 5: 2014 DSM Plan – Overview
2014 DSM Plan – Overview Filed: 7/1/2013 Continuation of 2012-13 DSM Plan with no significant policy or program changes Contains most of the programs in place from prior years; with some enhancements Plan designed to meet 2014 goals: 384.5 GWh of electric energy savings; TRC 1.88 86.4 MW
Slide 6: 2014 DSM Plan – Goals by Segment
2014 DSM Plan – Goals by Segment Budget Savings Customer Segment Participants ($ million) Gen kW / Dth Gen kWh Electric $47.3 40,852 242,350,496 8,969 Business Gas $1.6 128,224 - 1,522 Electric $31.1 36,312 99,458,284 915,317 Residential Gas $5.3 244,306 - 69,939 Electric $2.9 1,029 8,169,590 17,517
Slide 7: 2014 DSM Plan – Program Updates
2014 DSM Plan – Program Updates Measures Added: Building Tune Up Measure – Recommissioning Bathroom and Kitchen Aerators – Energy Efficient Showerheads Anti-Sweat Heater Controls – Cooling Efficiency Electronically Commutated Motors For Furnace Fans – Heating System Rebates Online Energy
Slide 8: 2014 DSM Plan – Contracts and Pilots
2014 DSM Plan – Contracts and Pilots Pilots (continuing): Energy Feedback Pilot (Residential)* Community Energy Efficiency Planning Pilot Electric Vehicle Charging Station Pilot In-Home Smart Device Pilot Pilots (new): Energy Feedback Pilot (Business)* 8 * Market Transformation program
Slide 9: 2014 DSM Plan – Summary
2014 DSM Plan – Summary DSM programs & products steady; changes made pursuant to 60/90-day notice process Anticipate PUC approval before end of 2013 No interruption of programs is anticipated Over 50 products available to customers Plan targets to benefit over 1 million Colorado customers
Slide 10: Past 60-Day Notices
Past 60-Day Notices Program Notice Description Notification Date Comments Due Implemented Lighting Efficiency 2013 2/27/2013 03/29/2013 4/30/2013 Standard Offer – ***90 Day Notice*** 3/19/2013 4/19/2013 5/22/2013 Process Efficiency Product Eval 4/17/2013 N/A N/A Low-Income Energy Savings Kits Produc
Slide 11: DSM Program Evaluations
DSM Program Evaluations 2013: Colorado Technical Assumption & NTG Review Segment Efficiency Compressed Air Home Performance Comprehensive Program Evaluations Proposed for 2014: Energy Management Systems Low Income Multi-Family Weatherization 11
Slide 12: Future DSM Filings / Meetings
Future DSM Filings / Meetings November 13, 2013 Q4 DSM Roundtable Meeting February 19, 2014 Q1 DSM Roundtable Meeting Apr 1, 2014 DSM Annual Status Report July 1, 2014 2015/16 Colorado DSM Plan 12
Slide 13: DSM Program Highlights
DSM Program Highlights Presented by Bill Conrad, David Hueser, and Jennifer Elling
Slide 14: Second Quarter 2013 DSM Achievements
Second Quarter 2013 DSM Achievements Total DSM Portfolio 2013 Electric Targets: 87.9 MW; 356 GWh; $86M Q2 2013 Achievements: 33.7 MW; 183.9 GWh; $33M 2013 Gas Goals: 428,310 Dth; $13.3M Q2 2013 Achievements: 162,205 Dth; $4.8M 14
Slide 15: Cumulative Electric Achievement, Quarterly Comparison
Q2 2013 actual electric energy savings (kWh) is 52% of 2013 goal, back on pace with 2012 Colorado DSM Portfolio 2012/2013 Cumulative Electric Achievement, Quarterly Comparison 450,000,000 400,000,000 350,000,000 300,000,000 Cumulative 2012 250,000,000 kWh 184 GWh 184 GWh 2013 200,000,000 118 GWh 150
Slide 16: 2014 filed Residential program changes
2014 filed Residential program changes Program adjustments due to cost-benefit challenges High Efficiency A/C – program largely unchanged in 2014 68% Net To Gross vs. 89% in 2012-13 per program evaluation 2014 cost-benefit .93 as kW/kWh savings/participant decreased Residential Heating Syste
Slide 17: Residential Pool Pumps
Residential Pool Pumps Product launched April 29, 2013 Program updates Currently have 10 product partners Ecova, 3rd Party implementer responsible for marketing Focus: supporting partners existing channels Mailer: combined with partner’s monthly invoice Coming in Q3: DM for July & August
Slide 18: Home Lighting
Home Lighting On track to meet the 2013 goals 2013 Progress 53.3 GWh savings through Q2; if trend continues, will exceed 2013 goal Fall promotions planned for CFL twists and specialties, and LED bulbs 2014 Plans Home Lighting baseline changes for 60 watt equivalent bulbs. Since incandescen
Slide 19: Evaporative Cooling
Evaporative Cooling 2013 participation lower than last year Increased promotions through end of cooling season Program participation 2013 mid-year achievement slightly trailing 2012, partly due to cooler summer temperatures Participation driven by consumer retail advertising and retailer point
Slide 20: New Product: Commercial Refrigeration Efficiency
New Product: Commercial Refrigeration Efficiency Product selected from 2012 Innovative Technology RFP responses Product Design: Offers on-site assessments, free direct installation of low-cost measures, refrigeration maintenance and prescriptive refrigeration rebates to commercial customers
Slide 21: Self Directed Custom Efficiency
Self Directed Custom Efficiency Underperforming YTD 2013 forecasting less than goal Promotion initiated to boost pipeline for future years Standard Offer projects moving over 21
Slide 22: Heating Efficiency
Heating Efficiency 2014 Plan changes Boilers: Plan B Boiler measure removed: starting Jan 1, 2014 • Applications accepted through March 31, 2014. Plan B boilers submitted after this date are eligible for Plan A rebates. • Plan A-1 85% minimum efficiency remains the same and Plan A-2 92% minimum ef
Slide 23: Lighting Efficiency: Midstream for screw-in LED
Lighting Efficiency: Midstream for screw-in LED Xcel Energy is evaluating moving screw-in LED from downstream to midstream incentives Incentives are provided at the point of sale from the distributor Currently looking at these three measures: 23
Slide 24: Lighting Efficiency: Midstream for screw-in LED
Lighting Efficiency: Midstream for screw-in LED What are the benefits? Opportunity to increase achievement Opportunity to increase LED screw-in sales Opportunity to reduce program costs 24
Slide 25: DSM Product Development Update
DSM Product Development Update Presented by Kevin Schwain, Pat Goggin and Andre Gouin Program ideas can be submitted on Xcel Energy’s DSM website at: http://www.xcelenergy.com/About_Us/Rates_&_Regulations/Regulatory_Filings/CO_DSM
Slide 26: Product Development Team
Product Development Team Cover Multiple States and Platforms Leverage Development Resources across States Efficiency, Renewables, Demand Response, Transportation They’re here! Better understand CO specific needs Please feel free to meet them in person 26
Slide 27: 2014 New Products
2014 New Products Included what was ready in the 2014 Plan Filling the pipeline Improving our process to identify the best opportunities and concepts Your input is welcome 27
Slide 28: DSM Roundtable Concept Submissions
DSM Roundtable Concept Submissions Western Cooling Control Received verbally from SWEEP Researched and developed a possible prescriptive savings methodology 28
Slide 29: Western Cooling Control – 1st Cut
Western Cooling Control – 1st Cut Description Retrofit device for resident A/C units that increases cooling capacity by running fan after compressor cycle ends Initial Cost-Benefit Analysis Simple Payback before Rebate = 2.9 years MTRC = 1.72 Next Steps Recommend full evaluation of tec
Slide 30: Pilots
Pilots Energy Feedback Codes Support 30
Slide 31: Energy Feedback Pilot 2013 Results YTD
Energy Feedback Pilot 2013 Results YTD Savings from original print pilot continue to show year over year growth Email savings may have reached a plateau Savings from the print expansion group have shown a strong ramp up. Electric Savings – 7.3 GWh ytd Gas Savings – 42,000 Dth ytd 30 28.2 3.0 O
Slide 32: Energy Feedback Pilot: Plans for 2014
Energy Feedback Pilot Plans for 2014 Filed to continue pilot for a 3rd year Refill print/email participants lost to attrition NEW OFFERING: Online energy feedback portal Integrated into MyAccount Available to all PSCo residential customer (opt-in by visiting MyAccount) Similar functional
Slide 33: Code Support Pilot
Code Support Pilot Current Status Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Plan Data Data Collection Recruitment Training Implementation Development Collection Evaluation Heschong Mahone Group, Inc Status: Training completed in 3 participating jurisdictions Impact potential, methodology evaluation co
Slide 34: Pilot Findings
Pilot Findings Slight compliance improvement observed: ~5% Very high (existing) baseline compliance: >90% High compliance found in CO Energy Office’s Study Minimal opportunity to improve compliance = limited DSM energy savings potential (<1GWh/yr) Pre-Training Post-Training Number Weighted N
Slide 35: What did we learn?
What did we learn? Our original questions Q: Will a tailored approach to code training/technical support help jurisdictions adopt new codes? Additional energy savings quantifiable? Q: Will a tailored approach help improve and accelerate code compliance? Can we quantify additional energy savings? Q:
Slide 36: Savings Attribution Methodology
Savings Attribution Methodology Residential, Gross Savings 3.0 Per municipality that moves to a 13.9 GWh new code, total homes built times savings between codes Jurisdictions upgrading code Not all jurisdictions upgrade each year. 3-year code cycle is the 33% = 4.6 GWh Commercial, fastest possible.
Slide 37: Recommended Next Steps
Recommended Next Steps End the Xcel Building Code pilot by September Compliance program not viable given high baseline compliance Continue compliance support via builder training offered through our DSM new construction programs Working with designers/builders drives savings Investigate fe
Slide 38: Break
Break 2:30 – 2:45 p.m. 38
Slide 39: Strategic Issues
Strategic Issues Presented by Deb Sundin Compliance information is available on Xcel Energy’s DSM website: http://www.xcelenergy.com/About_Us/Rates_&_Regulations/Regulatory_Filings/CO_DSM
Slide 40: Strategic Issues Filing: Overview
Strategic Issues Filing: Overview Filed: 6/17/2013 Last filed strategic issues docket in 2010 Next strategic issues filing anticipated in 2016 Filing adjusts DSM goals in response to shifting market dynamics Requests the PUC: Re-examine emerging DSM strategic issues Approve modificatio
Slide 41: Energy Efficiency Long-Term Goals
Energy Efficiency Long-Term Goals Re-examined DSM potential impacting goals: Erosion of savings from traditional equipment-based EE programs New lighting standards - 30% more efficient bulbs (per EISA 2007) Tighter building energy codes General decline in energy savings potential Flatten
Slide 42: Proposed DSM Goals, 2015-2020
Proposed DSM Goals, 2015-2020 Reflects 75% customer incentive scenario (plus 10% additional) Request to use in next PSCo Resource Plan in place bidding 42
Slide 43: Lighting Energy Standards Impact to DSM
Lighting Energy Standards Impact to DSM 43
Slide 44: Non-Traditional Energy Efficiency
Non-Traditional Energy Efficiency Behavioral Change Programs that educate/influence customers to use less energy Pilot started 2011; expand to 500,000 customers in 2015 if approved; run for only three years New approaches: Web-based information Expansion of program to Business customers
Slide 45: Non-Traditional Energy Efficiency
Non-Traditional Energy Efficiency continued LED Street Lighting Company-owned / customer-maintained (to match DSM model) Company tentatively plans to file a 2014 program if PUC approves as DSM (if pilot is successful) $32M/yr over 5 years for 60 GWh in savings 45
Slide 46: Non-Traditional Energy Efficiency
Non-Traditional Energy Efficiency continued Distribution Voltage Optimization (“DVO”) Centralized control and two-way communication optimizes voltage along the feeder to decrease customer energy use by ~1.8% Participation in EPRI Green Circuits pilot found voltage could be lowered ~2.5% Syst
Slide 47: Energy Goals
Energy Goals Proposed vs. Existing (10A-554EG) 47
Slide 48: Demand Response
Demand Response Proposed 2015-2020 goals that are 94MW above current levels set in the resource plan Used to reduce energy use during periods of peak demand (i.e. hot summer days) Current programs include: Saver’s Switch C&I Interruptible Service Option Credit (ISOC) Peak Savings Does
Slide 49: Demand Response Goals
Demand Response Goals Table 5: Cumulative Demand Response — Demand Savings Goals Total System Controllable Load (DR) 528 | 537 | 555 | 575 | 598 | 623
Slide 50: DSM Budget
DSM Budget Historical spend is $45M-65M/yr for goals of 150-350GWh Recent budgets close to $75M for 400GWh/yr Expect future budgets may increase up to $100M-$130M/year 50
Slide 51: Current Incentive Mechanism
Current Incentive Mechanism Current incentive mechanism has two components: 1. Annual lump-sum Disincentive Offset $3.2M/yr for achievement of 80%-99.9% of goal $5.0M/yr for achievement of 100% of goal 2. Performance Incentive Based on Modified TRC Test Company retains a portion (sliding s
Slide 52: Recommended Incentive Mechanism
Recommended Incentive Mechanism Recommend continuing: Use of Modified TRC Test as cost-effectiveness measure Link between retained benefits and program performance Recommend altering: Disincentive Offset Performance Incentive 52
Slide 53: Gas DSM Policy
Gas DSM Policy Forward-looking; requests guidance for future filings Low gas commodity prices are causing gas DSM programs to be minimally cost effective Requests guidance on annual spending levels Currently maintaining $12M/yr Minimum required spend (per statute) is just over $7M/yr Dis
Slide 54: Summary
Summary Strategic Issues Continue broad portfolio of programs available for all customers that balances long-term energy savings with near-term costs Proposed goals result that more closely align with potential for energy efficiency and historic achievement Goals in this docket proposed to be
Slide 55: Final Q&A
Final Q&A 55
Slide 56: (2) Xcel Energy’
(2) Xcel Energy’