Xcel Energy 2014 Annual Report Download - page 33

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QSP Requirements — The CPUC established 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. PSCo monitors and records, as necessary, an estimated
customer refund obligation under the QSP. The CPUC extended the terms of the current QSP through 2015.
Capacity and Demand
Uninterrupted system peak demand for PSCo’s electric utility for each of the last three years and the forecast for 2015, assuming
normal weather, is listed below.
System Peak Demand (in MW)
2012 2013 2014 2015 Forecast
PSCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,689 6,678 6,152 6,475
The peak demand for PSCo’s system typically occurs in the summer. The 2014 uninterrupted system peak demand for PSCo occurred
on July 7, 2014. The 2014 system peak demand was lower due to reduced wholesale loads and cooler summer weather. In 2013
Comanche Unit 3 was off-line, which increased PSCo’s system load by approximately 250 MW for the backup power provided by
PSCo to the joint owners. The forecast of 2015 system peak assumes normal weather conditions.
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 Power — PSCo 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. PSCo 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 its own transmission system, PSCo has contracts with regional transmission
service providers to deliver energy to PSCo’s customers.
Colorado ERP and All-Source Solicitation — In 2013, PSCo issued an All-Source RFP for 250 MW of generation by the end of
2018. PSCo also issued a separate wind RFP for PPAs only.
The CPUC provided final approval to PSCo’s plan in December 2013, which includes the following:
• The addition of 450 MW of wind generation PPAs, which are expected to be operational in 2015. These additional PPAs will
bring the installed wind capacity on PSCo’s system in Colorado to 2,650 MW;
• The addition of 170 MW of utility-scale solar generation PPAs, which are expected to be operational in 2016. PSCo has
approximately 80 MW of utility-scale solar and approximately 188 MW of customer-sited solar generation;
• The addition of 317 MW of natural gas fired generation PPAs, which will come from existing power plants;
• The accelerated retirements of the coal-fired Arapahoe Unit 3 (45 MW) and Unit 4 (109 MW), which occurred in 2013; and
• The continued operation of Cherokee generating station’s Unit 4 as a natural gas facility after 2017.
In addition, PSCo continues to execute on the remaining aspects of CACJA compliance including the construction of a new natural
gas fired combined cycle unit at Cherokee generating station and the addition of emissions controls at the Pawnee and Hayden
stations. PSCo also expects to retire the Cherokee Unit 3 and Valmont Unit 5 coal-fired power plants by the end of 2015 and 2017,
respectively.
Brush, Colo. to Castle Pines, Colo. 345 KV Transmission Line — In March 2014, PSCo filed with the CPUC for a CPCN to
construct a new 345 KV transmission line originating from Pawnee Station, near Brush, Colo. and terminating at the Daniels Park
substation, near Castle Pines, Colo. The estimated cost of the project is $178 million. In September 2014, PSCo entered into a partial
settlement agreement with the CPUC Staff supporting the grant of a CPCN for the line. The OCC has opposed the CPCN. In
November 2014, the ALJ issued a recommended decision approving the CPCN, but delaying construction until May 2020. PSCo filed
exceptions to the recommended decision, requesting clarification and reconsideration to commence certain portions of the project in
2015. A CPUC decision is anticipated in the first quarter of 2015.