PUC ISSUES WRITTEN DECISION ON XCEL ENERGY’S RESOURCE PLAN

DENVER -- The Colorado Public Utilities Commission (PUC), a division of the Colorado Department of Regulatory Agencies, today issued its written decision establishing the framework for Xcel Energy to balance environmental, reliability and economic goals in supplying its customers’ electric needs through 2015.

The 132-page decision, which stems from the Commission’s oral deliberations on Aug. 19, promotes energy savings, adds renewable energy resources, advances Colorado toward the governor’s carbon reduction goals, ensures an adequate supply of resources in the future; and aims at keeping consumers’ energy costs as low as possible.

The decision:

• Calls for energy savings of at least 1,744 GWh (energy) and 421 MW (demand) by 2015, via demand-side management (DSM) programs, the equivalent of two medium sized power plants.

• Adds a minimum of 200 MW (up to 600 MW) of developmental renewable energy resources with storage capability, such as concentrating solar power, and also approves up to an additional 850 MW of established intermittent renewable energy resources.

• Approves the closure of two, older coal-fired plants to reduce carbon dioxide emissions, citing substantial health and environmental benefits.

• Affirms that competitive bidding be used to acquire new generation, but allows the PUC to examine the benefits of portfolios containing a range of utility ownership options in Phase II of resource planning process.

Parties have 20 days to file for reconsideration of the PUC’s Phase I decision. After a final decision is issued, the utility will solicit bids consistent with the approved plan, and those bids will be evaluated by both the utility and an independent evaluator. Both the utility and the independent evaluator then file reports with the PUC recommending resource choices

The PUC will approve a final resource portfolio after comments on the utility and independent evaluator reports. That Phase II decision is expected by May of 2009. Xcel Energy then negotiates contracts to acquire the selected resources.

The complete decision may be viewed at:
 http://www.dora.state.co.us/puc/DocketsDecisions/decisions/2008/C08-0929_07A-447E.pdf 

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