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Xcel Energy Initiates Common Platform Infrastructure. Realizing Cost Savings and Leveraging Investment for New Merged Entity. Situation:
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Xcel Energy Initiates Common Platform Infrastructure Realizing Cost Savings and Leveraging Investment for New Merged Entity Situation: Xcel Energy is the nation's fourth largest utility company serving both electricity and natural gas customers. Formed in August 2000 by the merger of Minneapolis-based Northern States Power Co. and Denver-based New Century Energies, Xcel Energy serves 12 states and has revenues of more than $11 billion annually. Synergies realized by the merger have been forecasted to result in more than $1.4 billion in cost savings over the next decade, benefiting both customers and shareholders. For the energy delivery group the merger immediately presented both practical and cost challenges in that it resulted in three control centers, located in different geographic regions with three different real-time energy management (EMS) systems each with varying degrees of age and functionality and a newly combined real-time (EMS) support staff that also have varying degrees of knowledge and expertise. Action: Xcel Energy engaged in a detailed study to determine the long-term cost effectiveness of their current situation with that of a business model that incorporates a common EMS platform. The study proved clear financial benefits to a common platform where cost savings could be realized to support the overall merger goals while enhancing the operational capabilities of the existing control systems. Results: In March of 2001, Xcel Energy chose Siemens to be their EMS common platform provider. The plan is to expand the existing state-of-the-art Siemens SINAUT Spectrum based EMS located in Minneapolis to the control center in Golden, Colorado. The two systems will work harmoniously together using a feature that is only available by Siemens called “Multi-Site”. Also central to this solution is the use of Siemens PowerCC Information Model Manager, a powerful data modeling, maintenance and data exchange tool that Xcel Energy will be using to auto-generate one-line schematics.
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