Xcel Energy 2012 Annual Report Download - page 33

23
Energy Source Statistics
Year Ended Dec. 31
2012 2011 2010
Millions of
KWh
Percent of
Generation
Millions of
KWh
Percent of
Generation
Millions of
KWh
Percent of
Generation
Coal ............................. 14,005
49
% 14,818
48
% 15,486
51
%
Natural Gas ...................... 12,088 43 13,167 43 12,206 40
Wind (a) ..........................
2,103 7 2,386 8 2,295 8
Other (b)..........................
177 1 409 1 361 1
Total ..........................
28,373
100
% 30,780
100
% 30,348
100
%
Owned generation ................
19,940
70
% 19,310
63
% 19,303
64
%
Purchased generation ............. 8,433 30 11,470 37 11,045 36
Total ..........................
28,373
100
% 30,780
100
% 30,348
100
%
(a) This category includes wind energy de-bundled from RECs and also includes Windsource RECs. SPS uses RECs to meet or exceed state resource
requirements and may sell surplus RECs.
(b) Includes energy from other sources, including nuclear, hydroelectric, solar, biomass, oil and refuse. Distributed generation from the Solar*Rewards program
is not included.
Fuel Supply and Costs
The following table shows the delivered cost per MMBtu of each significant category of fuel consumed for owned electric generation,
the percentage of total fuel requirements represented by each category of fuel and the total weighted average cost of all fuels.
Coal Natural Gas
Weighted
Average Owned
SPS Generating Plants Cost Percent Cost Percent Fuel Cost
2012............................... $
1.87
67
% $ 2.99
33
% $ 2.24
2011...............................
1.89
67 4.37 33 2.71
2010...............................
1.84
71 4.59 29 2.64
See Items 1A and 7 for further discussion of fuel supply and costs.
Fuel Sources
Coal — SPS purchases all of the coal requirements for its two coal facilities, Harrington and Tolk electric generating stations,
from TUCO. TUCO arranges for the purchase, receiving, transporting, unloading, handling, crushing, weighing and delivery of
coal to meet SPS’ requirements. TUCO is responsible for negotiating and administering contracts with coal suppliers, transporters
and handlers. The coal supply contract with TUCO expires in 2016 and 2017 for the Harrington station and Tolk station,
respectively. As of Dec. 31, 2012 and 2011, coal inventories at SPS were approximately 40 and 43 days supply, respectively.
TUCO has coal agreements to supply 92 percent of SPS’ coal requirements in 2013, and a declining percentage of the
requirements in subsequent years. SPS’ general coal purchasing objective is to contract for approximately 100 percent of
requirements for the following year, 67 percent of requirements in two years, and 33 percent of requirements in three years.
Natural gas — SPS uses both firm and interruptible natural gas supply and standby oil in combustion turbines and certain boilers.
Natural gas for SPS’ power plants is procured under contracts to provide an adequate supply of fuel; which typically is purchased
with terms of one year or less. The transportation and storage contracts expire in various years from 2013 to 2033. All of the
natural gas supply contracts have pricing that is tied to various natural gas indices.
Most transportation contract pricing is based on FERC and Railroad Commission of Texas approved transportation tariff rates.
Certain natural gas supply and transportation agreements include obligations for the purchase and/or delivery of specified
volumes of natural gas or to make payments in lieu of delivery. SPS’ commitments related to gas supply contracts were
approximately $57 million and $24 million and commitments related to gas transportation and storage contracts were
approximately $229 million and $242 million at Dec. 31, 2012 and 2011, respectively.
SPS has limited on-site fuel oil storage facilities and primarily relies on the spot market for incremental supplies.