Xcel Energy 2015 Annual Report Download - page 34
Download and view the complete annual report
Please find page 34 of the 2015 Xcel Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.16
Fuel Supply and Costs
NSP-Wisconsin operates an integrated system with NSP-Minnesota. See NSP-Minnesota Fuel Supply and Costs.
Wholesale and Commodity Marketing Operations
NSP-Wisconsin operates an integrated system with NSP-Minnesota. NSP-Wisconsin does not serve any wholesale requirements
customers at cost-based regulated rates. See NSP-Minnesota Wholesale and Commodity Marketing Operations.
PSCo
Public Utility Regulation
Summary of Regulatory Agencies and Areas of Jurisdiction — PSCo is regulated by the CPUC with respect to its facilities, rates,
accounts, services and issuance of securities. PSCo is regulated by the FERC with respect to its wholesale electric operations,
accounting practices, hydroelectric licensing, wholesale sales for resale, the transmission of electricity in interstate commerce,
compliance with the NERC electric reliability standards, asset transactions and mergers and natural gas transactions in interstate
commerce. PSCo is authorized to make wholesale electric sales at market-based prices to customers outside its balancing authority
area.
Fuel, Purchased Energy and Conservation Cost-Recovery Mechanisms — PSCo has several retail adjustment clauses that recover
fuel, purchased energy and other resource costs:
• ECA — The ECA recovers fuel and purchased energy costs. Short-term sales margins are shared with retail customers through
the ECA. The ECA is revised quarterly.
• PCCA — The PCCA recovers purchased capacity payments.
• SCA — The SCA recovers the difference between PSCo’s actual cost of fuel and the amount of these costs recovered under its
base steam service rates. The SCA rate is revised on a quarterly basis beginning in January 2015.
• DSMCA — The DSMCA recovers DSM, interruptible service option credit costs and performance initiatives for achieving
various energy savings goals.
• RESA — The RESA recovers the incremental costs of compliance with the RES with a maximum of two percent of the
customer’s total bill.
• Wind Energy Service — Wind Energy Service is a premium service for customers who voluntarily choose to pay an additional
charge for renewable resources.
• TCA — The TCA recovers costs associated with transmission investment outside of rate cases.
• CACJA — The CACJA recovers costs associated with implementing its compliance plan under the CACJA.
PSCo recovers fuel and purchased energy costs from its wholesale electric customers through a fuel cost adjustment clause approved
by the FERC. PSCo’s wholesale customers have agreed to pay the full cost of certain renewable energy purchase and generation costs
through a fuel clause and in exchange receive RECs associated with those resources. The wholesale customers pay their jurisdictional
allocation of production costs through a fully forecasted formula rate with true-up.
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 2018.
Capacity and Demand
Uninterrupted system peak demand for PSCo’s electric utility for each of the last three years and the forecast for 2016, assuming
normal weather conditions, is as follows:
System Peak Demand (in MW)
2013 2014 2015 2016 Forecast
PSCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,678 6,152 6,284 6,493
The peak demand for PSCo’s system typically occurs in the summer. The 2015 system peak demand for PSCo occurred on Aug. 5,
2015. The 2014 system peak demand was lower due to reduced wholesale loads and cooler summer weather. The forecast of 2016
system peak assumes normal weather conditions.