Summary
Xcel Energy Inc. (XEL) filed an 8-K on January 28, 2005, reporting the January 21, 2005, written order from the Colorado Public Utilities Commission (CPUC) approving a comprehensive settlement agreement for its least-cost resource plan. This agreement, reached with environmental and community stakeholders, allows Public Service Company of Colorado (PSCo), Xcel Energy's operating company, to proceed with plans to meet a significant future energy demand of approximately 3,600 megawatts by 2013. The approved plan involves a multi-faceted approach, including competitive bidding for various energy resources (fossil, renewable, and conservation), and the construction of a new 750-megawatt coal-fired generating unit at the Comanche Generating Station. Importantly, this new unit and existing units at Comanche will feature state-of-the-art emissions reduction technology, leading to an overall decline in SO2 and NOx emissions despite increased capacity. The settlement is projected to provide substantial savings to customers, estimated between $500 million and $1.4 billion.
Key Highlights
- 1CPUC approval of Xcel Energy's (via PSCo) comprehensive least-cost resource plan, effective January 21, 2005.
- 2Plan to meet approximately 3,600 megawatts of new generating capacity need by 2013.
- 3Construction of a new 750-megawatt coal-fired generating unit at the Comanche Generating Station.
- 4Installation of state-of-the-art emissions reduction equipment on all Comanche units, including the new one, leading to decreased SO2 and NOx emissions.
- 5Estimated customer savings ranging from $500 million to $1.4 billion due to the settlement agreement.
- 6Significant expansion of energy conservation programs with up to $196 million investment.
- 7Consideration of carbon emissions regulation in resource planning, including an assumed $9 per ton CO2 cost.