Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Q2 2015 Earnings Presentation
49 slides from Xcel Energy's earnings presentation, Aug 19, 2015
Slide 1: Q2-2015 Colorado DSM Roundtable
Q2-2015 COLORADO August 19, 2015 D S M R O U N D TA B L E
Slide 2: Agenda
AGENDA • 2:00 – 2:05 p.m. Welcome and DSM Regulatory Updates • 2:05 – 3:05 p.m. DSM Programs: Q2-2015 » Business Program » Residential and Low-Income Programs • 3:05 – 3:25 p.m. -- Networking Break -- • 3:25 – 3:40 p.m. Product Development: Q2-2015 » Stakeholder Idea Submissions • 3:40 – 4:00 p.m. P
Slide 3: DSM Regulatory Updates Q2-2015
D S M R E G U L AT O R Y U P D AT E S Q2-2015
Slide 4: DSM Regulatory Update
DSM REGULATORY UPDATE • 2015/16 DSM Plan – Commission Decision on Exceptions Issued July 21 – New DSMCA rates effective August 1 – “Redlined” Plan w/Settlement and Decision impacts to be filed August 20 – Plan implementation by Sept 1 Prorated Electric Goal Duration (Months) of Duration (Months) of
Slide 5: DSM Regulatory Update Con't.
DSM REGULATORY UPDATE CON’T. • No 60/90-Day Notices during Q2 • Q3-2015 DSM Roundtable Meeting on November 4, 2015 5
Slide 6: DSM Achievements Q2-2015
DSM ACHIEVEMENTS Q2-2015 BILL CONRAD Manager, Energy Efficiency Marketing
Slide 7: Q2-2015 Achievement Highlights
Q2-2015 ACHIEVEMENT HIGHLIGHTS Electric Portfolio Gas Portfolio • 165 Net Gen GWh (40% of Target) • 205,159 Net Dth (34% of Target) • 26 MW (27% of Target) • $3.8M Spend (29% of filed budget) • $31M Spend (33% of filed budget) Business Programs Business Programs • Data Center Eff. – 87% of Target •
Slide 8: Q2-2015 Customer & Trade Events
Q2-2015 CUSTOMER & TRADE EVENTS Business Trade Events Residential Trade Events • Heating Advisory Board Meeting • CD Jones’ Open House • Annual Xcel Energy Expo / Partner • CAMPC Showcase trade event Awards • HMCC trade meeting presentation • Energy Smart Contractor Expo • Cooper Heating training •
Slide 9: Trade Partner Awards Q2 for 2014
TRADE PARTNER AWARDS Q2 FOR 2014 [SAVINGS ACHIEVEMENTS] AMERICAN MECHANICAL SERVICES BLACKHAWK EQUIPMENT CORP CARRIER COMMERCIAL SERVICES CFM COMPANY CHILLER SYSTEMS SERVICE INC CLOUDBURST MISTING SYSTEMS COLORADO LIGHTING INC CONSERVE A WATT DENVER ELECTRICAL CONTRACTORS ECOSYSTEMS ENERGY MANAGEMEN
Slide 10: DSM Business Program Q2-2015 Highlights
DSM BUSINESS PROGRAM Q2-2015 HIGHLIGHTS JENNIFER ELLING Team Lead, DSM Marketing
Slide 11: DSM Business Program Highlights
DSM BUSINESS PROGRAM HIGHLIGHTS • Cloudburst DEPACC Workshop – June 17th – Presented EEP Award – 1st Year Award – Top Performing Trade Partner for 2014 for DEPACC 11
Slide 12: DSM Business Program Highlights
DSM BUSINESS PROGRAM HIGHLIGHTS Midstream Cooling Participating Distributors to Date Distributor Manufacturers Represented Lennox Industries Inc. Lennox Trane, Ameristar, Samsung, Multistack, Rocky Mountain Trane Napps Daikin, Lennox, United Cool Air, Valent, Long Building Technologies FHP Lohmiller
Slide 13: DSM Business Program Highlights
DSM BUSINESS PROGRAM HIGHLIGHTS 13
Slide 14: DSM Business Program Highlights
DSM BUSINESS PROGRAM HIGHLIGHTS 14
Slide 15: DSM Business Program Highlights
DSM BUSINESS PROGRAM HIGHLIGHTS 15
Slide 16: DSM Business Program Highlights
DSM BUSINESS PROGRAM HIGHLIGHTS Energy Analysis • The $100 onsite Energy Analysis (EA) campaign resulted in 85 new EA applications so far in 2015. • Will extend the campaign to small business customers not targeted during the “Ring in the New Year with Savings” campaign earlier in year. Recommission
Slide 17: DSM Business Program Highlights: Lighting Updates
DSM BUSINESS PROGRAM HIGHLIGHTS Lighting Updates: New Prescriptive Rebates Upon • 20% bonus rebate, May 15 – Plan Approval: Sept 15, 2015 - Exterior Area Lighting • Bonus rebate applies to total - Customer-owned Street rebate amount for the following Lighting products: - Luminaire Level Lighting – R
Slide 18: LED Instant Rebate Initiative
LED INSTANT REBATE INITIATIVE • LED Instant Rebate Initiative – Launched Jan 15, 2015 – Forecasting 84% of target – Distributor spiff in June & July to increase participation – 15% of distributors participating out of 132 registered distributors – Minimum customer contribution lowered from $5 to $3
Slide 19: LED Instant Rebate Initiative
LED INSTANT REBATE INITIATIVE 19
Slide 20: 15/16 Plan Launch: What's New for Business Customers?
15/16 PLAN LAUNCH: WHAT’S NEW FOR BUSINESS CUSTOMERS? 2015/16 DSM Plan Highlights for Business Customers: • Lighting – Integrated sensors (occupancy sensors + photo cells) – Customer-owned area lighting – Customer-owned LED street lights • Data Centers ‒ EC Plug Fans • EMS ‒ Energy Information Syste
Slide 21: DSM Residential & Low-Income Program Q2-2015 Highlights
DSM RESIDENTIAL & LOW-INCOME PROGRAM Q2-2015 HIGHLIGHTS DAVID HUESER Team Lead, DSM Marketing
Slide 22: Residential and Low Income Updates to 2015/16 Biennial Plan
RESIDENTIAL AND LOW INCOME UPDATES TO 2015/16 BIENNIAL PLAN; MODIFICATIONS Summary of 2015/16 DSM Plan changes, Settlement Agreement Residential/Low Product changes or Measures eliminated Next Steps Income Product Measures added Transition from Pilot to Energy Feedback Residential Product, increase
Slide 23: Residential ENERGY STAR New Homes
RESIDENTIAL ENERGY STAR NEW HOMES Provides homebuilders with incentives to exceed their local building energy code requirements by at least 10%. Homes that are ENERGY STAR certified can earn an additional incentive • Company is forecasting to have adequate budget dollars available to fund the progra
Slide 24: Residential Home Performance with ENERGY STAR
RESIDENTIAL HOME PERFORMANCE WITH ENERGY STAR • Q2 Electric achievements: 153,750 net kWh • Q2 Natural Gas Achievements: 4,158 net Dekatherms • Increased customer rebates with the launch of 2015/16 DSM Plan, increased customer and contractor incentives expected to boost participation – Air Condition
Slide 25: Evaporative Cooling (Electric)
EVAPORATIVE COOLING (ELECTRIC) Customer rebates increased – effective June 1 – to improve product’s participation and savings after a delayed cooling season start, lower YTD achievement vs. prior years • In Q2 ramped up seasonal customer marketing. Promotional schedule will be extended into Septembe
Slide 26: Residential Home Energy Squad
RESIDENTIAL HOME ENERGY SQUAD (ELEC. & GAS) NEW PRODUCT IN 2015 CLEAResult will implement the Colorado introduction of this Residential product, effective September 1 • Participation goals – 2015: 1,200, pro-rated for September 1 launch – 2016: 1,600 • Program components – Walk through audit to iden
Slide 27: Low Income Single-Family Weatherization
LOW INCOME SINGLE-FAMILY WEATHERIZATION (ELEC. & GAS) $3.7M of total $6.4M budget in 2015 is dedicated to treating single family homes of income-qualified customers with energy-saving upgrades • Collaboration with • Energy Outreach Colorado Program Implementers organizations outside of the partnered
Slide 28: Networking Break
(2) Xcel Energy’ - Networking Break - 28
Slide 29: DSM Product Development Q2-2015 Highlights
DSM PRODUCT DEVELOPMENT Q2-2015 HIGHLIGHTS LEE HAMILTON Product Developer
Slide 30: DSM Product Development
DSM PRODUCT DEVELOPMENT Currently Goal: Scored 162 Framing 31 15‐20 22 PD 10‐12 PD Concepts 9 PDX 5‐10 PDX 30
Slide 31: Final Framing Results – Traditional PD
DSM PRODUCT DEVELOPMENT Final Framing Results – Traditional PD Framed Concept Scoring ‐ 2015 Concept GWh Dth C&I Holistic Refrigeration 10.6 ‐ HE CRAC Units 7.9 ‐ Mini‐Split AC 10.1 ‐ Comprehensive Data Center Design Assistance 7.6 ‐ Computer Tablets 6.5 ‐ Upstream Electronics 8.2 ‐ Advanced RTU Con
Slide 32: Final Framing Results – PD Express
DSM PRODUCT DEVELOPMENT Final Framing Results – PD Express Framed Concept Scoring ‐ 2015 Estimated Impact Concept (GWh) LED Bays (high, low, aisle) 1.45 LED Linear Tubes 1.25 Close The Case Refrigeration 2.48 Static Head Pressure Pump VFDs 1.51 Commercial Furnace ECMs 0.03 32
Slide 33: Q2 Idea Submissions
Q2 IDEA SUBMISSIONS 1. Energy Efficient Shade Window Coverings via Hunter Douglas 33
Slide 34: EE Shade Window Coverings
2. EE SHADE WINDOW COVERINGS Received May 22, 2015 • Description: – Cellular or “honeycomb” window shades reduce energy losses – Reflective coating reduces unwanted solar heat gain – Air pockets create layer of insulation that reduce heat loss • Evaluation Result: – Used submitted assumptions to det
Slide 35: Product Idea Submissions
PRODUCT IDEA SUBMISSIONS New Easy Link to Share Product Ideas: www.xcelenergy.com/productideas 35
Slide 36: DSM Pilot Updates Q2-2015 Highlights
D S M P I L O T U P D AT E S Q2-2015 HIGHLIGHTS LEE HAMILTON Product Developer
Slide 37: DSM Pilot Highlights
DSM PILOT HIGHLIGHTS PILOT STATUS 1 Online Energy Feedback In Progress 2 Business Energy Feedback In Progress 3 Smart Thermostat Pilot In Progress 4 Small Business Smart Thermostat Filed 5 Building Optimization In Progress 6 Multifamily Buildings In Progress 37
Slide 38: Energy Feedback
(2) Xcel Energy’ ENERGY FEEDBACK
Slide 39: DSM Pilot Updates: Residential Energy Feedback
DSM PILOT UPDATES RESIDENTIAL ENERGY FEEDBACK UPDATE 1 Moved from Pilot to Program in 2015/16 DSM Plan 2 Final customer expansion = 380,000 new participants 3 Evaluating customizable modules on reports to promote other DSM programs 39
Slide 40: DSM Pilot Updates: Online Energy Feedback Measure
DSM PILOT UPDATES ONLINE ENERGY FEEDBACK MEASURE RESIDENTIAL PANEL SURVEY Measure within Residential 1 The most effective My Energy email is Energy Feedback program straightforward, factual, and emphasizes saving Emails at 6-week intervals both energy and money. Determine if My Energy users sa
Slide 41: DSM Pilot Updates: Business Energy Feedback Measure
DSM PILOT UPDATES BUSINESS ENERGY FEEDBACK MEASURE UPDATE 2-year pilot 1 2.9+ GWh (113% of goal) 10,000 small business customers 2 Customers saving ~0.8% Budget: $250,000 (E & G) 3 No energy savings claimed starting Sept. 1 (when 2015/16 DSM Plan is in effect) 41
Slide 42: Smart Thermostat
(2) Xcel Energy’ SMART THERMOSTAT
Slide 43: DSM Pilot Highlights: Residential Smart Thermostat
DSM PILOT HIGHLIGHTS RESIDENTIAL SMART THERMOSTAT UPDATE 1 Pilot is live! 2 Targeted marketing continues via promoted social posts & targeted emails 3 Online enrollment portals live by mid-August 4 DR capabilities still being tested 60-Day Notice filed Aug 2014 2-year pilot Budget $1,158,500 (
Slide 44: DSM Pilot Highlights: Small Business DR Smart Thermostat
DSM PILOT HIGHLIGHTS SMALL BUSINESS DR SMART THERMOSTAT UPDATE 1 Launching Sept. (when 2015/16 DSM Plan is in effect) Filed in 2015/16 DSM Plan 2 RFP proposals received from 3 manufacturers for 2-year pilot, 100 bldgs. Budget: $561,976 (2-yr) devices, training, etc. Tie in with Res Smart T-s
Slide 45: Building Optimization
(2) Xcel Energy’ BUILDING OPTIMIZATION
Slide 46: DSM Pilot Highlights: Building Optimization
DSM PILOT HIGHLIGHTS BUILDING OPTIMIZATION UPDATE Filed in 2015/16 DSM Plan 1 Early prep work will enable DR events in 2- year pilot, 10 bldgs. time for summer control season Budget: $257,598 (2-yr) 2 823,000 square feet enrolled (4 buildings) 3 Software installation complete at 1 building 4 2
Slide 47: Multifamily Buildings
(2) Xcel Energy’ MULTIFAMILY BUILDINGS
Slide 48: DSM Pilot Updates: Multifamily Buildings
DSM PILOT UPDATES MULTIFAMILY BUILDINGS UPDATE 1 Franklin Energy Services selected via RFP process as Program Administrator 2 Launching to customers in August 60-Day Notice – Aug 2014 2-year pilot 0.55 GWh, 8,400 Dth (2015) 2015 Budget: $225,028 (E & G) 48
Slide 49: Thank You
THANK YOU