Xcel Energy Inc.
12/15/2023 | Press release | Distributed by Public on 12/15/2023 14:01
Material Event - Form 8-K
Item 8.01. Other Events
Colorado Resource Plan - In August 2022, the Colorado Public Utilities Commission (CPUC) approved a settlement for the Colorado Resource Plan among Public Service Company of Colorado (PSCo), a wholly owned subsidiary of Xcel Energy Inc. (Xcel Energy), and various intervenors. This settlement provides for an expected carbon reduction and the retirement of PSCo's remaining coal plant by the end of 2030.
In September 2023 and updated in October 2023, PSCo filed its recommended portfolio of resources (Updated Preferred Plan) with the CPUC. The updated preferred plan proposed a total of 7,521 megawatts of generation resources, including 4,716 owned MW and 2,805 purchased power MW. The filing also included several other alternative portfolios.
On December 13, the CPUC deliberated and verbally approved an alternative portfolio of 5,835 megawatts. The CPUC referred to the alternative portfolio as a "no-regrets" decision since it achieves reliability requirements while reducing total cost and curtailments through lower levels of renewable generation and greater amounts of storage. The decision also provides additional flexibility to assess timing and levels of incremental renewable resources to be addressed in a second quarter filing ("Just Transition Plan"), expected to be submitted by June 1, 2024. The approved portfolio includes the following resources:
| Generation Resource (in Megawatts) | Company Generation | Power Purchase Agreements | Total |
| Wind Resources | 1,325 | 375 | 1,700 |
| Solar | 858 | 760 | 1,618 |
| Storage | 500 | 1,348 | 1,848 |
| Natural Gas | 450 | 219 | 669 |
| Total | 3,133 | 2,702 | 5,835 |
PSCo expects to invest approximately $4.8 billion in generation resources under the alternative portfolio for the benefit of its customers and achieving the state's clean energy goals. The CPUC did not approve the May Valley to Longhorn Transmission Line, which was estimated at $250 million.
The CPUC is expected to continue to deliberate on certain aspects of the Resource Plan, including performance incentive mechanisms, later in December.
Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including statements concerning anticipated investment amounts and our expectations regarding the regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would," and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy's and PSCo's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2022, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of PSCo to obtain financing on favorable terms; availability or cost of capital; our customers' and counterparties' ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.