Xcel Energy 2013 Annual Report Download - page 36

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Steam System Package Boilers and Regulatory Plan — In December 2012, PSCo filed for a CPCN to construct two packaged boilers
for its steam utility. The application also sought approval for PSCo’s regulatory plan affecting rates for natural gas and steam services
effective after the boilers have been placed in service. The proposed regulatory plan would combine the gas and steam revenue
requirements for purposes of setting rates for retail gas and steam customers beginning January 2016.
In December 2013, the CPUC denied the application. The regulatory plan was designed to minimize customer attrition and the CPUC
suggested that PSCo survey all steam customers in order to ensure that the boilers are appropriately sized before refiling.
Energy Source Statistics
Year Ended Dec. 31
2013 2012 2011
PSCo Millions of KWh Percent of Generation Millions of KWh Percent of Generation Millions of KWh Percent of Generation
Coal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,647 56% 21,367 59% 22,065 61%
Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . 7,565 22 7,930 22 8,896 24
Wind (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,750 19 5,752 16 4,518 12
Hydroelectric. . . . . . . . . . . . . . . . . . . . . . . . . 655 2 590 2 681 2
Other (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 1 263 1 324 1
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,867 100% 35,902 100% 36,484 100%
Owned generation . . . . . . . . . . . . . . . . . . . . . 22,873 66% 23,766 66% 23,743 65%
Purchased generation . . . . . . . . . . . . . . . . . . 11,994 34 12,136 34 12,741 35
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,867 100% 35,902 100% 36,484 100%
(a) This category includes wind energy de-bundled from RECs and also includes Windsource RECs. PSCo uses RECs to meet or exceed state resource requirements
and may sell surplus RECs.
(b) Includes energy from other sources, including nuclear, solar, biomass, oil and refuse. Distributed generation from the Solar*Rewards program is not included, and
was approximately 0.172, 0.133, and 0.137 net million KWh for 2013, 2012, and 2011, respectively.
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 Fuel Cost
PSCo Generating Plants Cost Percent Cost Percent
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.84 80% $ 4.86 20% $ 2.45
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.77 78 4.25 22 2.31
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.77 76 4.98 24 2.54
See Items 1A and 7 for further discussion of fuel supply and costs.
Fuel Sources
Coal — PSCo normally maintains approximately 41 days of coal inventory. Coal supply inventories at Dec. 31, 2013 and 2012 were
approximately 41 and 46 days usage, respectively. PSCo’s generation stations use low-sulfur western coal purchased primarily under
contracts with suppliers operating in Colorado and Wyoming. During 2013 and 2012, PSCo’s coal requirements for existing plants
were approximately 11.3 million tons. The estimated coal requirements for 2014 are approximately 10.5 million tons.
PSCo has contracted for coal supply to provide 100 percent of its estimated coal requirements in 2014, and a declining percentage of
requirements in subsequent years. PSCo’s 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.
Remaining requirements will be filled through the procurement process or over-the-counter transactions.
PSCo has coal transportation contracts that provide for delivery of 100 percent of its coal requirements in 2014 and 2015. Coal
delivery may be subject to short-term interruptions or reductions due to operation of the mines, transportation problems, weather and
availability of equipment.