Xcel Energy 2009 Annual Report Download - page 29

Performance-Based Regulation Plan (PBRP) 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 2010,
assuming normal weather, is listed below.
System Peak Demand (in MW)
2007 2008 2009 2010 Forecast
PSCo .............................................. 6,950 6,903 6,258 6,608
The peak demand for PSCo’s system typically occurs in the summer. The 2009 uninterrupted system peak demand for
PSCo occurred on Aug. 12, 2009.
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.
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.
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 and for various other operating requirements.
PSCo Resource Plan — In September 2008, the CPUC issued its order detailing the amount of resources that will be
added, including the following:
• Increase in wind portfolio of 850 MW by 2015. PSCo would then have a total of approximately 1,900 MW of
wind power resources;
• Add up to 250 MW of concentrating solar thermal technology with thermal storage;
• Increase customer efficiency and conservation programs with plans to meet the CPUC goals of annual energy
sales reductions to approximately 3,669 GWh, that would yield a demand savings in the range of 886 MW to
994 MW by 2020;
• Retirement of two older coal-burning plants (two units at Arapahoe and two units at Cameo), replacing the
capacity with company owned resources, provided the costs are reasonable; and
• Reduce PSCo’s CO2 emissions between 10 and 15 percent below 2005 levels and for PSCo to propose additional
reductions to achieve a 20 percent reduction by 2020 in its next plan.
PSCo acquired 174 MW of wind resources and 19 MW of central station photovoltaic (PV) solar resources through
separate RFPs and those contracts were specifically approved by the CPUC. In January 2009, PSCo issued an all-source
RFPs to fill the approved resource plan. Bids were received in April 2009, and PSCo filed its bid evaluation report with
the CPUC in August 2009.
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