Xcel Energy 2008 Annual Report Download - page 28

•Renewable Energy Standard Adjustment (RESA) — The RESA recovers the incremental costs of compliance with
the RES and is set at its maximum level of 2.0 percent of the customer’s total bill.
•Wind Energy Service Adjustment — The Wind Energy Service Adjustment provides for the recovery of costs
associated with wind energy resources from those customers subscribed to the WindSource program.
•Transmission Cost Adjustment (TCA) — Effective January 2008, the TCA provides for the recovery outside of rate
cases of transmission plant revenue requirements and allows for a return on construction work in progress for
transmission investments.
PSCo recovers fuel and purchased energy costs from its wholesale electric customers through a fuel cost adjustment
clause accepted for filing by the FERC.
Performance-Based Regulation and Quality of Service Requirements — PSCo currently operates under an electric and
natural gas PBRP. The major components of this regulatory plan include:
• An electric QSP that provides for bill credits to customers if PSCo does not achieve certain performance targets
relating to electric reliability and customer service through 2010; and
• A natural gas QSP that provides for bill credits to customers if PSCo does not achieve certain performance
targets relating to natural gas leak repair time and customer service through 2010.
PSCo regularly monitors and records as necessary an estimated customer refund obligation under the PBRP. In April of
each year following the measurement period, PSCo files its proposed rate adjustment under the PBRP. The CPUC
conducts proceedings to review and approve these rate adjustments annually.
Capacity and Demand
Uninterrupted system peak demand for PSCo’s electric utility for each of the last three years and the forecast for 2009,
assuming normal weather, is listed below.
System Peak Demand (in MW)
2006 2007 2008 2009 Forecast
PSCo .............................................. 6,757 6,950 6,903 6,958
The peak demand for PSCo’s system typically occurs in the summer. The 2008 system peak demand for PSCo occurred
on Aug. 1, 2008.
Energy Sources and Related Transmission Initiatives
PSCo expects to meet its system capacity requirements through existing electric generating stations, power purchases,
new generation facilities, DSM options and phased expansion of existing generation at select power plants.
Purchased Transmission Services — In addition to using its own transmission system, PSCo has contracts with regional
transmission service providers to deliver power and energy to PSCo’s customers.
Purchased Power — PSCo has contracts to purchase power from other utilities and independent power producers.
Capacity is the measure of the rate at which a particular generating source produces electricity. Energy is a measure of
the amount of electricity produced from a particular generating source over a period of time. Long-term purchase power
contracts typically require a periodic payment to secure the capacity from a particular generating source and a charge
for the associated energy actually purchased from such generating source.
PSCo also makes short-term purchases to replace generation from company-owned units that are unavailable due to
maintenance and unplanned outages, to comply with minimum availability requirements, to obtain energy at a lower
cost than that which could be produced by other resource options, including company-owned generation and/or
long-term purchase power contracts, and for various other operating requirements.
PSCo Resource Plan — PSCo estimates it will purchase approximately 35 to 45 percent of its total electric system
energy needs for 2009 under long-term contracts and generate the remainder with PSCo-owned resources. In November
2007, PSCo filed the Colorado Resource Plan (CRP), which details the type and amount of resources that will be
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