Xcel Energy 2009 Annual Report Download - page 25

In December 2008, the MPUC approved the Monticello CON for approximately 71 MW of power uprates. In 2008,
NSP-Minnesota re-submitted its NRC application for the Monticello plant extended power uprate, and the NRC’s
sufficiency review of the license amendment re-submittal was completed. NSP-Minnesota expects to receive NRC
approval and achieve the extended power uprate during 2011. The operating life of the Monticello nuclear plant has
already been extended through 2030.
In December 2009, the MPUC approved both the additional dry spent fuel storage capacity to support life extension
and the approximately 164 MW of power uprates at Prairie Island Units 1 and 2. If no action is taken by the
Minnesota legislature during the 2010 legislative session, the MPUC decision on dry spent fuel storage capacity to
support life extension will go into effect on June 1, 2010.
In April 2008, NSP-Minnesota filed an application with the NRC to renew the operating license of its two nuclear
reactors at Prairie Island for an additional 20 years, until 2033 and 2034, respectively. The PIIC filed contentions in
the NRC’s license renewal proceeding in August 2008, which was referred to an ASLB for review. The ASLB granted
the PIIC hearing request and has admitted seven of the 11 contentions filed. To date, all seven admitted contentions
have been resolved and removed from the ASLB docket. Subsequent to the NRC issuance of the final Safety Evaluation
Report and the draft supplemental environmental impact statement, the PIIC filed four additional contentions. The
ASLB has admitted one of the contentions and has not issued a decision on the other three. NSP-Minnesota is
challenging the admitted contention, and a decision on whether the other contentions will be accepted will be made in
early 2010. If the contentions are not resolved, the resulting adjudicatory process is expected to add approximately
eight months onto the NRC’s standard 22 month review schedule, resulting in a decision on the Prairie Island license
renewal in late 2010.
Fuel Supply and Costs
The following table shows the delivered cost per MMBtu of each significant category of fuel consumed for electric
generation, the percentage of total fuel requirements represented by each category of fuel and the total weighted average
cost of all fuels.
Weighted
Coal* Nuclear Natural Gas Average Fuel
NSP System Generating Plants Cost Percent Cost Percent Cost Percent Cost
2009 .................. $1.78 57% $0.70 39% $ 7.36 4% $1.61
2008 .................. 1.73 58 0.56 39 10.09 3 1.55
2007 .................. 1.56 57 0.51 38 7.60 4 1.47
* Includes refuse-derived fuel and wood.
See additional discussion of fuel supply and costs under Item 7 — Factors Affecting Results of Continuing Operations
in Management’s Discussion and Analysis and under Item 1A — Risk Factors.
Fuel Sources
Coal — The NSP System normally maintains approximately 40 days of coal inventory at each plant site. Coal supply
inventories at Dec. 31, 2009 and 2008 were approximately 43 and 49 days usage, respectively. NSP-Minnesota’s
generation stations use low-sulfur western coal purchased primarily under long-term contracts with suppliers operating
in Wyoming and Montana. Estimated coal requirements at NSP-Minnesota’s and NSP-Wisconsin’s major coal-fired
generating plants were approximately 10.2 and 11.0 million tons per year at Dec. 31, 2009 and 2008, respectively.
NSP-Minnesota and NSP-Wisconsin have contracted for coal supplies to provide 91 percent of their coal requirements
in 2010, 60 percent of their coal requirements in 2011 and 14 percent of their coal requirements in 2012. Any
remaining requirements will be filled through a RFP process or through over-the-counter transactions.
NSP-Minnesota and NSP-Wisconsin have a number of coal transportation contracts that provide for delivery of
100 percent of their coal requirements in 2010, 28 percent of their coal requirements in 2011 and 28 percent of their
coal requirements 2012. Coal delivery may be subject to short-term interruptions or reductions due to operation of the
mines, transportation problems, weather and availability of equipment.
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