Prager at Conference

Xcel Energy’s Response to Climate Change: 

Xcel Energy’s Response to Climate Change Frank Prager Vice President, Environmental Policy September 24, 2007

Slide2: 

5th Largest Combination Electric and Gas Utility (based on customers) Gas Customers 1.8 M Electric Customers 3.3 M Member of: Xcel Energy Overview

Characteristics of Clean Energy Future: 

Characteristics of Clean Energy Future Climate regulation will be a reality There will be a national clean energy market Clean technology will lead the way Destiny shaped by both public policy and markets

Slide4: 

Federal Climate Change Proposals

Slide5: 

Renewables Portfolio Standards Climate Plan under Development Mandatory Climate Program Renewables Portfolio Standards & Mandatory Climate Program

Colorado: the New Energy Economy: 

Colorado: the New Energy Economy Renewable Energy Amendment 37 HB 06-1281– IGCC HB 07-1281 – 20% standard SB 07-100 – Transmission SB 07-91 – Renewable energy mapping HB 07-1037 – Energy efficiency and conservation 2007 “Least Cost Plan”

Responding to this Challenge: Xcel Energy’s Environmental Leadership: 

Responding to this Challenge: Xcel Energy’s Environmental Leadership #1 Retail wind energy provider Industry-leading voluntary emission reductions Voluntary carbon management strategy New technologies: IGCC, hydrogen, plug-in hybrids, energy storage, carbon sequestration, solar Comprehensive CSR reporting

Clean Energy Options: 

Clean Energy Options Sustainable pathway is through newer, cleaner technology Low and non-emitting technologies Higher efficiency fossil technologies Carbon capture/sequestration Advanced end use, storage, and grid management technologies Key issue: maintaining reliability and reasonable price

EPRI: Value of Clean Technologies*: 

0 500 1000 1500 2000 2500 3000 3500 1990 1995 2000 2005 2010 2015 2020 2025 2030 U.S. Electric Sector CO2 Emissions (million metric tons) EIA Base Case 2007 * Achieving all targets is very aggressive, but potentially feasible EPRI: Value of Clean Technologies*

Slide10: 

2015 2020 2025 2020 2011 2020 2015 2012 2009 2015 Increasing RPS Targets % Renewable

Slide11: 

1,085 2,770 Wind Additions by Year-End About 2,800 MW Wind Capacity (MW)

Xcel Energy Solar Energy in Colorado: 

Xcel Energy Solar Energy in Colorado Solar*Rewards Customer Program Over 1000 systems on line Mix of residential and business systems – up to 2 MW Over 20 MW by year-end 2008 Building 8.2 MW central solar PV plant in Southwest Colorado Investigating emerging, more efficient solar technologies Concentrating solar power

Energy Efficiency and Conservation: 

Energy Efficiency and Conservation HB 07-1037 - Energy Efficiency Legislation Requires gas conservation programs Increases electric energy efficiency goals Customer partnership opportunities Efficiency often first choice in reducing GHG emissions Lowers energy bills New Technologies LED lighting Sophisticated “Smart Grid” simplifies and maximizes energy savings and environmental benefits

IGCC: 

IGCC Integrated Gasification Combined Cycle Advanced coal gasification technology Offers environmental benefits Improved efficiency Carbon dioxide capture at lower cost Energy Policy Act of 2005 Clean Coal Power Initiative Sec. 413: Authorizes funding for IGCC using western coal at high altitude Colorado Legislation (H.B. 06-1281)

IGCC Process (Simplified): 

IGCC Process (Simplified)

Slide16: 

Our National Climate Policy Alternative: Clean Energy Portfolio Standard (CEPS) Technology-based mandate – similar to RPS Renewables, clean coal, nuclear, energy efficiency and conservation CEPS works! Reduces future CO2 emissions Promotes development of new energy technologies Reduces natural gas use Encourages conservation Imposes reasonable costs Part of national climate debate

Slide17: 

“When I look ahead to the future of my industry, I see electric production that will be highly efficient, harness diverse resources, and be nearly emission-free. I believe this future is possible. But we need to support both smart policy and new technology today to make it happen tomorrow.” Richard C. Kelly, Chairman and CEO, Xcel Energy