Xcel Energy 2012 Annual Report Download - page 37

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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
..............................
51,395
47
% 57,014
50
% 57,832
51
%
Natural Gas
.......................
26,218 24 25,080 22 25,947 23
Wind (a)
...........................
13,298 12 11,216 10 9,885 9
Nuclear
...........................
13,249 12 13,781 12 15,012 13
Hydroelectric
.....................
3,800 3 4,203 4 3,998 3
Other (b)
...........................
2,022 2 1,659 2 1,663 1
Total
...........................
109,982
100
% 112,953
100
% 114,337
100
%
Owned generation
.................
75,071
68
% 74,722 66% 77,506
68
%
Purchased generation
..............
34,911 32 38,231 34 36,831 32
Total
...........................
109,982
100
% 112,953
100
% 114,337
100
%
(a) This category includes wind energy de-bundled from RECs and also includes Windsource RECs. Xcel Energy uses RECs to meet or exceed state resource
requirements and may sell surplus RECs.
(b) Includes energy from other sources, including solar, biomass, oil and refuse. Distributed generation from the Solar*Rewards program is not included.
NATURAL GAS UTILITY OPERATIONS
Overview
The most significant developments in the natural gas operations of the utility subsidiaries are continued volatility in natural gas
market prices, uncertainty regarding political and regulatory developments that impact hydraulic fracturing, safety requirements
for natural gas pipelines and the continued trend of declining use per residential and small commercial and industrial (C&I)
customer, as a result of improved building construction technologies, higher appliance efficiencies and conservation. From 2000
to 2012, average annual sales to the typical residential customer declined from 96 MMBtu per year to 78 MMBtu per year and to
the typical small C&I customer declined from 441 MMBtu per year to 377 MMBtu per year, on a weather-normalized basis.
Although wholesale price increases do not directly affect earnings because of natural gas cost-recovery mechanisms, high prices
can encourage further efficiency efforts by customers.
The Pipeline and Hazardous Materials Safety Administration
Pipeline Safety Act — The Pipeline Safety, Regulatory Certainty, and Job Creation Act, signed into law in January 2012 (Pipeline
Safety Act) requires, among other things, additional verification of pipeline infrastructure records by pipeline owners and operators
to confirm the maximum allowable operating pressure of lines located in high consequence areas or more-densely populated areas.
Where records are inadequate to confirm the maximum allowable operating pressure, the DOT Pipeline and Hazardous Materials
Safety Administration (PHMSA) will require operators to re-confirm the maximum allowable operating pressure. This process could
cause temporary or permanent limitations on throughput for affected pipelines. In addition, the Pipeline Safety Act requires PHMSA
to issue reports and develop new regulations, addressing a variety of subjects, including: requiring use of automatic or remote-
controlled shut-off valves in certain circumstances; requiring testing of certain previously untested transmission lines; and expanding
integrity management requirements. The Pipeline Safety Act also raises the maximum penalty for violating pipeline safety rules to
$0.2 million per violation per day up to $2 million for a related series of violations. While Xcel Energy cannot predict the ultimate
impact Pipeline Safety Act will have on its costs, operations or financial results, Xcel Energy is taking actions that are intended to
comply with the Pipeline Safety Act and any related PHMSA regulations as they become effective. PSCo can generally recover costs
to comply with the transmission and distribution integrity management programs through the PSIA rider.