Xcel Energy 2009 Annual Report Download - page 30

In October 2009, the CPUC approved the acquisitions of the resources identified in the evaluation report. With minor
modification, the CPUC adopted PSCo’s preferred plan which includes an incremental 900 MW of additional
intermittent renewable energy resources (wind and PV solar) and approximately 280 MW of ‘‘new technology’’
renewable energy sources. The CPUC approved the negotiation of purchased power contracts from a pool of PV solar
bidders, rather than designating specific bidders. The CPUC approved the selection of about 800 MW of traditional
gas-fired resources. The CPUC preferred that PSCo file its next resource plan in the normal course of business in the
fall of 2011 rather than making an interim filing in 2010.
RES — The 2007 Colorado legislature adopted an increased RES that requires PSCo to generate or cause to be
generated electricity from renewable resources equaling:
• At least 10 percent of its retail sales for the years 2011 through 2014;
• 15 percent of retail sales for the years 2015 through 2019;
• 20 percent of retail sales by 2020 and after; and
• 4 percent must be generated from solar renewable resources with half the solar resources being located at
customers’ facilities.
The law limits the net incremental retail rate impact from these renewable resource acquisitions as compared to
non-renewable resources to 2 percent. The new legislation encourages the CPUC to consider earlier and timely
cost-recovery for utility investment in renewable resources, including the use of a forward rider mechanism.
The CPUC approved all material aspects of PSCo’s 2009 RES compliance plan in August 2009. The 2010 compliance
plan was filed in October 2009.
San Luis Valley-Calumet-Comanche Unit 3 Transmission Project — PSCo and Tri-State Generation and Transmission
Association filed a joint application with the CPUC for a certificate of need and public convenience in May 2009. The
project consists of four components of both 230 KV and 345 KV line and substation construction. The line is
intended to assist in bringing solar power in the San Luis Valley to load. The line is expected to be placed in-service in
2013 if no significant issues in the siting and permitting of the line are encountered. Several landowners are opposing
this transmission line, including two large ranches. Hearings before an ALJ were conducted in February 2010, with a
decision pending.
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 Natural Gas Average Fuel
PSCo Generating Plants Cost Percent Cost Percent Cost
2009 ...................................... $1.52 82% $3.99 18% $1.97
2008 ...................................... 1.42 84 7.03 16 2.31
2007 ...................................... 1.26 84 4.34 16 1.76
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 — Risks Associated with Our Business.
Fuel Sources
Coal — Coal inventory levels may vary widely among plants. However, PSCo normally maintains approximately
41 days of coal inventory at each plant site. Coal supply inventories at Dec. 31, 2009 and 2008 were approximately 68
and 32 days usage, respectively, based on the maximum burn rate for all of PSCo’s coal-fired plants. PSCo’s generation
stations use low-sulfur western coal purchased primarily under contracts with suppliers operating in Colorado and
Wyoming. During 2009 and 2008, PSCo’s coal requirements for existing plants were approximately 9.2 million and
11 million tons, respectively.
PSCo has contracted for coal suppliers to supply 82 percent of its coal requirements in 2010, 50 percent of its coal
requirements in 2011 and 19 percent of its coal requirements in 2012. Any remaining requirements will be filled
through an RFP process or through over-the-counter transactions.
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