Xcel Energy 2013 Annual Report Download - page 25

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Capacity and Demand
Uninterrupted system peak demand for the NSP System’s electric utility for each of the last three years and the forecast for 2014,
assuming normal weather, is listed below.
System Peak Demand (in MW)
2011 2012 2013 2014 Forecast
NSP System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,792 9,475 9,524 9,212
The peak demand for the NSP System typically occurs in the summer. The 2013 uninterrupted system peak demand for the NSP
System occurred on Aug. 26, 2013. The 2011 peak demand occurred on a day with extremely high temperatures and humidity, which
resulted in the highest uninterrupted system peak demand since July 31, 2006. The 2012 peak demand occurred uninterrupted on a day
with weather much closer to normal peak day conditions. The 2013 peak demand includes the effect of warmer weather partially offset
by the impact of the termination of several firm wholesale contracts primarily at NSP-Wisconsin and also reflects the impact of two
large commercial and industrial customers at NSP-Minnesota that have ceased operations. These two large customers represented 1.3
percent, 0.4 percent, and zero percent of NSP System sales in 2011, 2012, and 2013 respectively. The 2014 forecast assumes normal
peak day weather.
Energy Sources and Related Transmission Initiatives
NSP-Minnesota expects to use existing power plants, power purchases, CIP options, new generation facilities and expansion of
existing power plants to meet its system capacity requirements.
Purchased Power — NSP-Minnesota has contracts to purchase power from other utilities and independent power producers. Long-
term purchased power contracts typically require a periodic payment to secure the capacity and a charge for the associated energy
actually purchased. NSP-Minnesota also makes short-term purchases to meet system load and energy requirements, to replace
generation from company-owned units under maintenance or during outages, to meet operating reserve obligations, or to obtain energy
at a lower cost.
Purchased Transmission Services — In addition to using their integrated transmission system, NSP-Minnesota and NSP-Wisconsin
have contracts with MISO and regional transmission service providers to deliver power and energy to the NSP System.
NSP System Resource Plans — In March 2013, the MPUC approved NSP-Minnesota’s 2011-2025 Resource Plan and ordered a
competitive acquisition process be conducted with the goal of adding approximately 500 MW of generation to the NSP System by
2019. Bid proposals were received in April 2013.
In September 2013, NSP-Minnesota recommended a self-build, 215 MW natural gas combustion turbine at the Black Dog site and a
PPA with either Calpine’s Mankato combined cycle natural gas project or Invenergy’s Cannon Falls combustion turbine natural gas
project. In October 2013, the DOC recommended the MPUC approve NSP-Minnesota’s proposal.
On Dec. 31, 2013, the ALJ recommended the MPUC select a combination of a 100 MW solar proposal by Geronimo Energy, LLC and
capacity credits offered by Great River Energy.
In January 2014, NSP-Minnesota filed exceptions to the ALJ’s report which supported NSP-Minnesota’s original proposal, reiterated
its commitment to meeting the solar mandate and made the following points:
• The ALJ’s report focused on meeting a portion of the solar mandate even though the docket was designed to meet our
resource need;
• Solar acquisition to meet the solar mandate should be conducted separately to encourage competition among solar
developers;
• One or more gas fueled plants should be selected because they are large enough to meet the range of reasonably expected
need, are least cost, and comply with environmental regulations; and
• Resource need uncertainty should be addressed through contract options to delay or cancel resources.
The MPUC is expected to make its selection determination in March 2014.