Xcel Energy Nuclear Power. Karen Fili Site Vice President Monticello Nuclear Generating Plant

Transcription

1 Xcel Energy Nuclear Power Karen Fili Site Vice President Monticello Nuclear Generating Plant 1

2 Safe Harbor This material contains forward-looking statements that are subject to certain risks, uncertainties ies and assumptions. Such forward-looking statements, including 2013 and 2014 earnings per share guidance and assumptions, capital expenditures and dividends, are e intended to be identified in this document by the words anticipate, anticipate, believe, believe, estimate, estimate, expect, expect, intend, intend, may, may, objective, objective, outlook, outlook, plan, plan, project, project, possible, possible, potential, potential, should and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) to obtain financing on favorable terms; business conditions in the t energy industry, including the risk of a slow down in the U.S. economy or delay in growth recovery; ery; trade, fiscal, taxation and environmental policies in areas where Xcel Energy has a financial l interest; customer business conditions; actions of credit rating agencies; competitive factors, including the extent and timing of the entry of additional competition in the markets served by Xcel Energy Inc. and its subsidiaries; unusual weather; effects of geopolitical events, including war and a acts of terrorism; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; actions by regulatory bodies impacting g our nuclear operations, including those affecting costs, operations or the approval of requests pending before the Nuclear Regulatory Commission; financial or regulatory accounting policies imposed by regulatory bodies; availability or cost of capital; employee work force factors; the items described d under Factors Affecting Results of Operations; and the other risk factors listed from time to time by Xcel Energy in reports filed with the SEC, including Risk Factors in Item 1A and Exhibit of Xcel Energy Inc. s s Annual Report on Form 10-K K for the year ended Dec. 31, 2012, and Item 1A and Exhibit to the Quarterly Reports on Form 10-Q Q for the quarters ended March 31, June 30, and September 30,

3 Nuclear Excellence Energy diversity Operating as a fleet Invested for long-term safe and reliable operation Nuclear strategic cornerstones Sustainable and positioned for success 3

4 Proactive Risk Management NSP s Diverse Energy Portfolio Coal 35% Natural Gas 14% Hydro 7% Renewables 15% Non-Carbon Emitting Generation Hydro 14% Renewables 30% Nuclear 29% Nuclear 56% NSP

5 Adding Customer Value Key Nuclear Projects Life extended from 40 to 60 years Monticello authorized to operate until 2030 Prairie Island authorized to operate until 2033/2034 Life Cycle Management- Power Uprates (LCM/EPU) Major equipment replaced 71 MW uprate authorized by MPUC in

6 Investments for Safe and Reliable Operations for the Next 20 Years Replace original equipment after operating for 40 years Monticello Main transformer Main generator Steam dryer 13.8 Kv electrical system Reactor feed pumps Condensate pumps Feedwater heaters Prairie Island Unit 2 steam generators Main transformers Main generator 6

7 Monticello Life Cycle Management/Extended Power Uprate Project Initial cost estimate $320 million (2008) Final cost estimate $665 million (2013) Drivers of cost increase Program design and scope changes Delays in licensing process Installation complexity Similar experience to other nuclear uprates 7

8 Prairie Island Unit 2 Steam Generators $280 million investment Unit 2: Two generators replaced Each is 70 feet tall, weighing 330 tons Unit 1 generators replaced in

9 Bending the Nuclear Cost Curve O&M Baseline supports Operational Excellence plans Outage costs decrease after completion of major project outages in 2013 O&M levels for 2015 through 2018 are lower than 2014 levels 14% 11% 8% 5% 2% -1% -4% Nuclear O&M Trend (including outage costs) Percent change from prior year % Change Linear (% Change)

10 Bending the Cost Curve Capital Major project spending is declining after Monticello LCM/EPU & PI Steam Generator investments in 2013 Some life extension projects remain to be completed at Prairie Island from 2014 to 2016 Spending decline to baseline maintenance capital thereafter Nuclear Capital Expenditure Trend (excluding fuel purchases) 500 Dollars in millions 400 Other LCM/EPU

11 Positioned for Success Nuclear Strategic Cornerstones Performance Achieve top quartile performance People Leadership development Workforce pipeline Cost Improve productivity and efficiency Bend the nuclear cost curve Revenue Optimize capital spending 11

12 Summary Nuclear power plays a critical role in Xcel Energy s grid reliability and clean energy portfolio Xcel Energy has invested in the safe and reliable operation of its nuclear plants for the next 20 years The Monticello Life Cycle Management and Extended Power Uprate project costs were prudently incurred and benefit our customers We have initiatives in place that will position us for success in the long run 12