Xcel Energy 2009 Annual Report Download - page 60

GHG Emissions
As one of the nation’s largest electric generating companies, Xcel Energy is committed to addressing climate change
through efforts to reduce its GHG emissions. Xcel Energy has adopted a methodology for calculating CO2 emissions
based on the recently issued reporting protocols of The Climate Registry. Xcel Energy is a ‘‘founding reporter’’ under
The Climate Registry. As third-party CO2 reporting protocols continue to evolve, Xcel Energy expects additional
changes in reporting methodology and reported CO2 emissions. Starting in 2011, Xcel Energy will also report GHG
emissions to the EPA under the agency’s newly adopted GHG reporting rule.
Based on The Climate Registry’s current reporting protocol, Xcel Energy has estimated that its current electric
generating portfolio, which includes coal- and gas-fired plants, emitted approximately 60.1 million tons of CO2 in
2009. Xcel Energy has also estimated emissions associated with electricity purchased for resale to Xcel Energy customers
from generation facilities owned by third parties. Xcel Energy estimates that these third-party facilities emitted
approximately 20.7 million tons of CO2 in 2009. Estimated total CO2 emissions, associated with service to Xcel Energy
electricity customers, declined by 5.9 million tons in 2009 compared to 2008, with a combined cumulative reduction
of over 39.0 million tons of CO2 since 2003. Xcel Energy anticipates that its ownership share of Comanche Unit 3, a
new coal-fired generation project scheduled for completion in early 2010, will result in CO2 emissions of approximately
3.4 million tons of CO2 per year. Comanche Unit 3, an efficient supercritical pulverized coal unit, will provide
low-cost, base load power and help maintain a reliable, reasonably priced and environmentally sound electricity supply
in Colorado. Operation of Comanche Unit 3 will help support Xcel Energy’s efforts to develop renewable energy, retire
older, less-efficient resources and take other steps to reduce emissions across its system consistent with state regulatory
processes. Xcel Energy plans to implement clean resource development and conservation plans that will result in overall
reductions in Xcel Energy’s CO2 emissions, both in absolute terms and per Kwh of electricity produced.
State Resource Plans
During 2009, the acquisition component of the overall Colorado resource plan and the Minnesota resource plan were
approved substantially as proposed. Both plans, proposed significant new clean energy resources. Under these plans, Xcel
Energy would:
• Increase overall system wind capacity from approximately 3,000 MW at the end of 2009 to approximately 4,500
to 5,000 MW by 2015;
• Add up to 250 MW of concentrating solar thermal technology with storage;
• Increase the size of our customer energy efficiency and conservation programs, resulting in a reduction of retail
demand;
• Retire and replace several existing coal-fired electric generation facilities;
• Improve the efficiency and reduction of CO2, mercury, SO2 and NOx emissions at several existing fossil plants;
and
• Upgrade the capacity of existing nuclear facilities.
Xcel Energy has designed these plans so that, depending on fuel, commodity and other assumptions, Xcel Energy
would maintain a reasonably priced product and continue to provide reliable power to our customers. At the same
time, the plans would result in a significant reduction in GHG emissions. The most recently approved Minnesota plan
is expected to reduce NSP-Minnesota’s CO2 emissions by 22 percent below 2005 levels by 2020. The approved
Colorado plan is expected to reduce PSCo’s CO2 emissions by 10 percent to 15 percent below 2005 levels by 2015 and
enables PSCo to propose additional reductions to achieve the 20 percent reduction goal by 2020, currently established
by Executive Order.
Our environmental leadership strategy has resulted in numerous environmental awards and recognition. For example,
Xcel Energy was named Utility of the Year by the American Wind Energy Association and also received a 2009 Energy
Star partner of the year award from the EPA. Xcel Energy strives to provide the public with detailed information
regarding environmental performance and risk, and was recognized on The Carbon Disclosure Project Leadership Index
for its high-quality disclosure of climate change risks. Among other things, our utility companies operating in
Minnesota, Colorado, and New Mexico use a carbon proxy cost mandated by the state commissions to evaluate the
impact of potential future GHG regulation on its future resource acquisition plans. Xcel Energy publishes a Corporate
Responsibility Report annually, which is available on our website, www.xcelenergy.com. The Corporate Responsibility
Report discloses Xcel Energy’s environmental, economic and social performance. Xcel Energy also provides detailed
information to environmental research and disclosure organizations, such as Trucost, the Carbon Disclosure Project and
The Climate Registry.
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