DENVER, Colorado, US, 2004-05-12 (Refocus Weekly) The fourth-largest utility in the United States wants to acquire 500 MW of predominantly wind power.
Xcel Energy has filed its least-cost resource plan with the Colorado Public
Utilities Commission, to develop 3,600 MW of generating capacity by 2013. The
PUC requires a plan every four years to plan for growing energy demand in the
state.
The utility analyzed 100 resource mix options, using a “reasonable range of
potential fuel costs and environmental regulations,” to recommend that it
obtain up to 500 MW from renewables, mainly wind, “acquired ahead of other
needed resources.” It also wants to use an all-source bid process to secure
new capacity from natural gas or other fossil fuel-fired generation, additional
green power resources, and demand reduction programs.
It asked for PUC permission to request proposals for the green power this July,
to take advantage of the expected renewal of the federal production tax credit
for wind energy and to have the renewable energy power available by late 2006.
It also intends to request proposals for additional wind or solar resources to
further hedge against volatile fossil-fuel prices.
It also wants to spend $1.3 billion to add 750 MW of capacity to its coal-fired
Comanche facility near Pueblo, of which Xcel Energy would own 500 MW. Eighty
percent of the proposed new generating capacity would be competitively bid, and
the utility will also seek bids for programs that lead to reductions in overall
customer electricity demand. It will evaluate all supply and DSM options to
develop the least-cost mix of resources.
The Colorado electric customer base served by Xcel grew by 20% in the past ten
years, to reach 1.2 million last year, while individual demand grew by 13%.
Customers in the state now require 60% more peak electricity than a decade ago,
and the plan asks for a waiver to rules that limits the utility to owning no
more than 250 MW in any single generating unit that is not competitively bid.
“Demand for electricity continues to rise in Colorado, both in terms of
overall customer growth and per-customer requirements,” says David Eves. “Much
of this demand drives the need for additional base-load generation, resources
that run virtually all of the time. Our plan offers the best mix of resources to
help us serve that demand at reasonable prices.”
Xcel Energy has regulated operations in eleven states and serves 3.3 million
electricity and 1.8 million natural gas customers. In terms of customers, it is
the fourth-largest combination natural gas and electricity company in the U.S.
The utility buys power from the Colorado Green windfarm in Prowers County, and
that region is expected to benefit from the announcement to purchase more green
power.