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NSP System

NSP System. NSP Supply Plans: Generation and Transmission. Betsy Engelking Director, Resource Planning Xcel Energy. Key Strategies in Developing Plan. Meet renewables requirements in all states Upgrade and maintain existing units as possible

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NSP System

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  1. NSP System

  2. NSP Supply Plans: Generation and Transmission Betsy Engelking Director, Resource Planning Xcel Energy

  3. Key Strategies in Developing Plan Meet renewables requirements in all states Upgrade and maintain existing units as possible Maintain a diverse portfolio of reasonably priced resources Position company to meet future environmental mandates such as carbon regulation

  4. 2008 Resource Plan Action Plan • Meet all jurisdictional renewable requirements • Focus on increasing owned wind • Increase DSM goal to 1.3% energy savings phased over 3 years • Extend Manitoba Hydro contract • Implement Nuclear and Sherco upgrades • Repower Blackdog as a combined cycle – 600 MW between 2015 and 2017 • Develop contingency plans

  5. Effects of Economic Downturn in Generation Planning • Expected continued sales decline • Changing reserve margins • Reduced need for renewable energy • Cancel 2011 peaking resource • Defer Black Dog conversion from 2013 to 2015 or later • Delay environmental and capacity upgrades at Sherco 1 and 2

  6. Updated Load and Resources Chart 502 278 324 328 252 167 (800) (961) (1,243) (1,320) (1,396) (1,415) (1,422) (1,618) (1,637) (1,909) (1,992) Assumes: Manitoba Hydro expires per current contracts, Black Dog 3&4 retired in 2015, PI life is extended, Monti uprates in 2011, Sherco 3 15 MW increase in 2011 Does not include: PI uprates (164 MW), Sherco 1&2 uprates (69 MW), Black Dog repowering (650 MW), MH extension (375+385 MW)

  7. Renewables Requirements • Requirements in all 5 jurisdictions • MN: 30% by 2020 • WI: 12% by 2015 • ND, SD, MI: 10% by 2015 • We plan compliance on a system-wide basis at the lowest possible cost • Accurate cost allocation to ensure each jurisdiction pays its cost for renewables

  8. Current Status: Renewable Energy • 350 MW of owned wind 2010-2011 • 200 MW Nobles (Minnesota) • 150 MW Merricourt (North Dakota) • Additional local and distributed wind • CBED in Minnesota • Discussion of Feed-in Tariffs • Bayfront Conversion • 20 MW biomass gasifier (Wisconsin) • Uses existing steam generator and turbine

  9. Mitigating Carbon Risk • Current plan, including renewables and nuclear upgrades, reduces carbon 22% below 2005 levels by 2020 • After 2020, expanded needs will cause carbon to increase absent development of low and no-carbon alternatives • Xcel develops plans to meet state voluntary reduction goals, but believes a national solution is the best way to address carbon

  10. Environmental upgrades at Sherco • Unit 3 mercury reduction and capacity upgrades (15-20 MW) complete in 2012 • Delay in CAIR and CAMR rulings allow us to delay upgrades at Units 1 and 2 • Lower cost options for compliance may be commercial soon • Earliest projects will begin is 2014

  11. Other Supply Issues • Grand Meadow Wind Farm on line in December 2008 • Last phase of MERP repowering project, new Riverside CC, will be online June 2009 • Need for flexible, modular plans that allow us to advance or delay resources as the economy dictates

  12. CAPX Transmission • Created by Minnesota Utilities to examine the infrastructure needed to ensure system reliability • Projects also support Wisconsin and the Dakotas • Phase 1 projects recently approved by Minnesota PUC

  13. Phase I CAPX projects • A 240-mile, 345-kilovolt line between Brookings County, S.D., and Hampton, Minn., plus a related 345-kilovolt line between Marshall and Granite Falls, Minn. • A 250-mile, 345-kilovolt line between Fargo, N.D., and Alexandria, St. Cloud and Monticello, Minn. • A 150-mile, 345-kilovolt line between Hampton, Rochester, Minn., and La Crosse, Wis.

  14. Next Steps • Obtain approval in other jurisdictions • Select routes for projects • Next set of projects currently being study • Will address transmission needs to address increased renewables goals after 2016 • Continue to monitor need and cost of transmission expansion

  15. Keeping Costs Low for Customers • Develop flexible plans that allow us to address changing economy • Use bidding and other strategies to obtain resources at lowest possible costs • Work actively with legislators and regulators to shape policies that reduce cost • Utilize existing resources and existing sites to expand generation fleet • Maximize use of transmission

  16. Conclusions • Xcel Energy’s resource needs are changing rapidly • Flexible planning is the key • Keep options open • Plan for modular system additions • Current goals include nuclear plant life extension, Black Dog repowering and Manitoba Hydro extension • We are working to meet all of our needs and requirements at the lowest cost to customers

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