Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Corporate Update (November 2008)

54 slides from Xcel Energy's corporate update, Nov 10, 2008

1. Slide 1: Xcel Energy Colorado DSM Roundtable Discussion

   Xcel Energy Colorado DSM Roundtable Discussion November 10, 2008 1:00pm to 4:15pm TSB Basement Conference Rooms 019

2. Slide 2: Agenda

   Agenda 1:00 - 1:05 Welcome, Introductions 1:05 – 1:15 Status of 2008 DSM Programs 1:15 – 2:15 2009/2010 DSM Plan 2:15 – 2:30 Break 2:30 – 3:00 DSM Product Development Process 3:00 – 4:00 DSM Research Plans 4:00 – 4:15 Wrap-Up/Action Items 11/10/08 2

3. Slide 3: 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

4. Slide 4: Status of 2008 DSM Programs

   Status of 2008 DSM Programs Presented by: Rachel Sours-Page Xcel Energy

5. Slide 5: Year-to-Date Achievements

   Year-to-Date Achievements Through 3rd quarter 2008, the Company had the following DSM achievements: ƒ Residential Energy Efficiency – 5.6 MW, 20.2 GWh ƒ Residential Load Management – 12.4 MW, 0.167 GWh ƒ Low-Income Energy Efficiency – 0.205 MW, 1.8 GWh ƒ Business Energy Efficiency – 14.6 MW, 94.2 GW

6. Slide 6: 2009/2010 DSM Plan

   2009/2010 DSM Plan Presented by: Debra Sundin, Peter Narog, Lisa Mahoney Xcel Energy

7. Slide 7: Summary of Program Offerings

   Summary of Program Offerings Residential Low-Income Business Load Management Consumer Behavioral Change Easy Saving Energy Kits Boiler Efficiency Energy Efficient Showerheads Multi-Family Weatherization Compressed Air Efficiency ENERGY STAR® New Non-Profit Energy Efficiency Cooling Efficiency Homes

8. Slide 8: Existing Business Programs

   Existing Business Programs Energy Efficiency ƒ Compressed Air Efficiency ƒ Energy Management Systems ƒ Cooling Efficiency ƒ Lighting Efficiency ƒ Custom Efficiency ƒ Motor Efficiency ƒ Energy Analysis ƒ Recommissioning ƒ Energy Design Assistance 11/10/08 8

9. Slide 9: Proposed Business Programs

   Proposed Business Programs Energy Efficiency ƒ Boiler Efficiency (G) ƒ Furnace Efficiency (G) ƒ Process Efficiency (E/G) ƒ Custom Efficiency (G) ƒ Recommissioning (G) ƒ Customer Behavioral Change – ƒ Segment Efficiency (E/G) Business (E/G) ƒ Self-Direct (E) ƒ Data Center Efficiency (E) ƒ Small Busin

10. Slide 10: Proposed Business Programs

    Proposed Business Programs ƒ Boiler Efficiency: Rebates for high efficiency boilers, boiler tune-ups, and ancillary energy efficiency components ƒ Custom Efficiency: Customized analysis and rebates for unique energy efficiency projects; added gas savings component ƒ Data Center Efficiency: Studies a

11. Slide 11: Proposed Business Programs

    Proposed Business Programs ƒ Energy Design Assistance: Energy modeling and design assistance for new construction projects; added gas savings component ƒ Energy Management Systems: Custom rebates for building control systems; added gas savings component ƒ Furnace Efficiency: Prescriptive rebates for

12. Slide 12: Proposed Business Programs

    Proposed Business Programs ƒ Process Efficiency: Study funding and implementation rebates for very large opportunities at manufacturing facilities ƒ Recommissioning: Study and implementation rebates for low-cost efficiency measures in existing buildings; added gas savings component ƒ Segment Efficie

13. Slide 13: Proposed Business Programs

    Proposed Business Programs ƒ Small Business Lighting: Third party offering providing lighting assessment, turnkey services, and rebates targeted at customers under 400 kW ƒ Standard Offer: Performance contracting program targeted at schools and government buildings ƒ Self-Direct: Program for large c

14. Slide 14: Existing Residential Programs

    Existing Residential Programs Energy Efficiency ƒ Home Lighting & Recycling ƒ Central AC Tune-Up ƒ Evaporative Cooling Rebates 11/10/08 14

15. Slide 15: Proposed Residential Programs

    Proposed Residential Programs Energy Efficiency ƒ Central AC Quality Installation (E)* ƒ Home Energy Audits (E/G) ƒ Central AC Tune Up (E)* ƒ Home Performance with ƒ Customer Behavioral Change - ENERGY STAR (E/G) Residential (E/G) ƒ Insulation Rebates (G) ƒ Energy Efficient Showerheads (G) ƒ Refrige

16. Slide 16: Proposed Residential Programs

    Proposed Residential Programs ƒ Central Air Conditioning Rebates: Tiered rebates for new AC units installed properly based on airflow, refrigerant and sizing ƒ Customer Behavioral Change: Indirect impact program focused on building awareness of general energy efficiency through community events, pro

17. Slide 17: Proposed Residential Programs

    Proposed Residential Programs ƒ Energy Efficient Showerheads: Encouraging use of energy and water saving showerheads by free distribution of units ƒ ENERGY STAR New Homes: Test the performance and provide rebates for new homes ‹ Modeled shell design and tested performance ‹ Performance modeling of h

18. Slide 18: Proposed Residential Programs

    Proposed Residential Programs ƒ ENERGY STAR Retailer Incentive: Pilot program providing rebates to increase sales of a variety of electric home appliances and televisions ƒ Heating System Rebates: Prescriptive tiered rebates for high efficient furnaces and boilers ƒ Home Energy Audits: Tiered audit

19. Slide 19: Proposed Residential Programs

    Proposed Residential Programs ƒ Insulation Rebates: Gas rebates for additional wall, attic and attic bypass insulation; Electric rebates may be added in late 2009 ƒ Home Performance with ENERGY STAR: Whole house approach to existing homes ‹ Measures include: Insulating ceiling, walls, perimeter, sto

20. Slide 20: Proposed Residential Programs

    Proposed Residential Programs ƒ Refrigerator Recycling: Seasonal campaigns offering a rebate for recycling secondary refrigerators ƒ School Education Kits: Teacher’s lesson plan and kit with low cost measures & educational materials ƒ Water Heater Rebates: Prescriptive tiered rebates for high effici

21. Slide 21: Existing Low-Income Programs

    Existing Low-Income Programs Energy Efficiency ƒ Energy $avings Partners (G) 11/10/08 21

22. Slide 22: Proposed Low-Income Programs

    Proposed Low-Income Programs Energy Efficiency ƒ Easy Savings Energy Kits (E/G) ƒ Multi-Family Weatherization (E/G) ƒ Non-Profit Energy Efficiency (E/G) ƒ Single-Family Weatherization (E/G) 11/10/08 22

23. Slide 23: Proposed Low-Income Programs

    Proposed Low-Income Programs ƒ Easy Savings Energy Kits: Partner with third parties to identify and distribute educational materials and a kit containing low-cost measures to customers ƒ Non-Profit Energy Efficiency: Partner with Energy Outreach Colorado for auditing and upgrading efficiency within

24. Slide 24: Proposed Low-Income Programs

    Proposed Low-Income Programs ƒ Single & Multi-Family Weatherizations: † Menu of options for existing residences ‹ Attic, wall, floor, crawl space insulation ‹ Air infiltration reduction and duct sealing ‹ High efficiency furnaces and CFL’s ‹ Variable speed furnace fan motor with furnace replacements

25. Slide 25: Existing Residential Programs: Saver's Switch

    Existing Residential Programs Demand Response Saver’s Switch † Approximately 100,000 enrolled air conditioners in 2008 ‹ Installed approximately 13,000 switches in 2008 ‹ Peak load reduction of 112 MW † Plans for 2009 & 2010: ‹ Install 19,500 switches in both 2009 & 2010 for incremental peak load re

26. Slide 26: Proposed Business Programs: Interruptible Service Credit Option

    Proposed Business Programs Demand Response Interruptible Service Credit Option (ISOC) ISOC TWO docket filed Feb. 2008, approved Nov. 2008 ƒ New program details: † Lowers minimum interruptible load requirement from 500 kW to 300 kW † Customers can choose to have interruptions less than 4 hours in len

27. Slide 27: Proposed Business Programs: 3rd Party Aggregator

    Proposed Business Programs Demand Response 3rd Party Aggregator ƒ Ft. St. Vrain Order specified use of 3rd Party Aggregators to achieve at least 20 MW of load relief ƒ RPF issued July 1st, vendor to be selected by December 1st ƒ Program in place for summer 2009 11/10/08 27

28. Slide 28: Break

    (2) Xcel Energy’ Break

29. Slide 29: DSM Product Development Process

    DSM Product Development Process Presented by: George Spargo Xcel Energy

30. Slide 30: Product Development Process

    Product Development Process ƒ Traditional “Stage-Gate” process that includes team or management review at key decision points: † Ideation † Framing † Design † Build † Test † Launch 11/10/08 30

31. Slide 31: Ideation

    Ideation ƒ 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. ƒ This stage begins by asking: What idea do you have that will solve a customer concern?” † Ideas

32. Slide 32: Framing

    Framing ƒ Objective: Evaluate the market opportunity of new product ideas ƒ 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 in order to prioriti

33. Slide 33: Scoring Matrix in Framing

    Scoring Matrix in Framing Program: 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 GWh) 2 (GW h) Low (<2 GW h) 1 3

34. Slide 34: Design

    Design ƒ Objectives †Refine and validate assumptions made in the Framing stage † More clearly define the product and opportunity ƒ The process to obtain any legal approvals or meet any regulations begins here. ƒ The deliverables of this stage are high-level requirements, a Product Case (in certain s

35. Slide 35: Build

    Build ƒ 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. ƒ The deliverables of this stage are a testable prod

36. Slide 36: Test

    Test ƒ 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. ƒ User requirements, usage scenarios and new operational processes can be tested for flow- through—this is sometimes informally done in t

37. Slide 37: Launch

    Launch ƒ The process moves to launch phase once: † Product, systems and processes have been tested/fixed/retested, † Personnel has been trained † Collateral has been developed ƒ Objectives † Stabilize all processes † Transition the new product into product life cycle † Execute launching the product

38. Slide 38: 2009 DSM Research Plans

    2009 DSM Research Plans Presented by: Suzanne Doyle and Heather Hemphill Xcel Energy

39. Slide 39: DSM Research Plan

    DSM Research Plan ƒ Comprehensive Program Evaluations ƒ Other Studies Planned ƒ Electric & Natural Gas Potentials Study 11/10/08 39

40. Slide 40: Comprehensive Program Evaluations

    Comprehensive Program Evaluations ƒ General Objective: Assess overall effectiveness and determine what improvements or other changes should be implemented in the future. ƒ General Components: The exact components are determined at the start of each evaluation but normally involve reviewing the proce

41. Slide 41: Net-to-Gross (NTG)

    Net-to-Gross (NTG) ƒ In the past, typically followed NTG approach proposed by vendor. ƒ Moving forward, we plan to start each evaluation using the California PUC’s NTG framework. † Self-Report Approach (SRA) using survey results † NTG Calculated using three scores: ‹ Program Influence Score ‹ Timing

42. Slide 42: Comprehensive Program Evaluations

    Comprehensive Program Evaluations ƒ Complete evaluation on nearly every program once every 8 years; 3 to 5 programs evaluated each year. ƒ Factors considered when determining the priority and schedule of programs: † Program Tenure in Colorado † Amount of Savings compared to total goals & per part. †

43. Slide 43: Comprehensive Program Evaluations

    Comprehensive Program Evaluations ƒ 2009 Comprehensive Process & Impact Evaluations † Residential - Home Lighting & Recycling (E) † Residential - Saver’s Switch (E) † Business - New Construction ( E/G) † Business - Cooling Efficiency (E) ƒ Schedule is reviewed at beginning of each year and may be ad

44. Slide 44: Comprehensive Program Evaluations

    Comprehensive Program Evaluations ƒ 2010 Comprehensive Process & Impact Evaluations † Residential - Evaporative Cooling Rebates (E) † Business – Motor & Drive Efficiency (E) † Business - Recommissioning (E/G) † Residential & Business - Customer Behavorial Change (E/G) ƒ Schedule is reviewed at begin

45. Slide 45: Comprehensive Program Evaluations

    Comprehensive Program Evaluations ƒ 2011 Comprehensive Process & Impact Evaluations (Per Settlement Agreement) † Residential – ENERGY STAR Retailer Incentive (E/G) † Low-Income – Single-Family Weatherization (E/G) † Business - Boiler Efficiency (G) † Business - Self-Direct (E/G) 11/10/08 45

46. Slide 46: Other Studies Planned

    Other Studies Planned ƒ 2009 Market Research † Residential-DSM Awareness, Attitude & Usage Study [C08-560, #87] † Market Transformation/NTG Policies & Practices Study [C08-560, #87; C08- 769, #43 & #45] † Non-Energy Benefits (NEB) of Low-Income [C08-560, #139] † Conservation Tracker Study † Home Ene

47. Slide 47: Other Studies Planned

    Other Studies Planned ƒ 2009 Related Compliance (abridged): † C08-560, #87: Conduct updates to…customer awareness and energy efficiency behaviors † C08-560, #87: Conduct updates to…assess techniques for quantifying market transformation † C08-560, #139: Update the quantification of NEB of Low Income

48. Slide 48: Other Studies Planned

    Other Studies Planned ƒ 2010 Market Research † Business-DSM Awareness, Attitude & Usage Study [C08-560, #87] † Colorado Home Use Study [C08-560, #87] † Conservation Tracker Study † Home Energy Audit Customer Satisfaction Tracker † Contractor Research † Dun & Bradstreet Business List Purchase † E-Sou

49. Slide 49: Other Studies Planned

    Other Studies Planned ƒ 2010 Related Compliance (abridged): † C08-560, #87: Conduct updates to…customer awareness and energy efficiency behaviors. † C08-560, #87: Conduct updates to…residential appliance saturation. ƒ Schedule is reviewed at beginning of each year and may be adjusted based on costs,

50. Slide 50: Electric & Gas Potential Study

    Electric & Gas Potential Study Overall Goal: Determine Technical, Economic and Achievable (Market) Potential for demand reduction and energy efficiency in residential, commercial and industrial customer classes. Estimated Schedule: January 1-December 31, 2009 † RFP Process: Nov ’08-Jan ‘09 † Project

51. Slide 51: Types of DSM Potential

    Types of DSM Potential Technical Economic Achievable Program Naturally Occurring Technical – complete penetration of measures analyzed in applications where deemed technically feasible from an engineering perspective. Economic – technical potential of measures that are cost-effective when compared t

52. Slide 52: Electric & Gas Potential Study

    Electric & Gas Potential Study ƒ Study will cover both electricity & natural gas potentials † Never conducted a gas potentials study in Public Service † Update electric portion of the 2005-2006 “KEMA” study ƒ Study will comply with directives from Decision C08-560 † Paragraph 85: Complete another co

53. Slide 53: Electric & Gas Potential Study

    Electric & Gas Potential Study ƒ Discussion/Review of Draft RFP 11/10/08 53

54. Slide 54: Open Discussion/Wrap-Up

    (2) Xcel Energy’ Open Discussion/Wrap-Up

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