Utility Programs – What Has Been Learned and Where Are We Going U.S. Demand Response Coordinating Committee National Town Meeting on Demand Response June 2 & 3, 2008 Paul J Lehman

3 Northern States Power Company- Minnesota Southwestern Public Service Northern States Power Company- Wisconsin Xcel Energy Overview Gas Customers 1.8 M Electric Customers 3.3 M Gas Customers 1.8 M Electric Customers 3.3 M Public Service Company of Colorado

4 Demand Response Programs Number of Programs by Region MRO - 7 WECC - 2 SPP - 3

5 Demand Response Programs Number of Customers by Region MRO – 373,561 WECC – 87,858 SPP - 10

6 Demand Response Programs Potential Demand Reduction by Region MRO – 1006 MW (11%) WECC – 228 MW (3%) SPP – 57 MW (1%)

7 Demand Response Programs Demand Reduction by Customer Type (MW)

8 Demand Response Programs Demand Reduction by Function (MW)

9 Types of Demand Response Control Autonomous – Happens all by itself. Self- sensing of very local conditions. Sensors react with no communications. Resource Initiated – DR polls a site/bulletin board for what information is desired. Bulk Dispatched – System operator sends broad message to DR and DR responds. Precision Dispatch – Full bi-directional communications. Integrate what is going on at DR and then decisions are made on what performance of DR is desired.

10 Demand Response Programs Demand Reduction by Control Type (MW)

11 Where Are We Going Xcel Energys Smart Grid City

12 What makes a grid smart? Adding sensors and high-speed communications Self-balancing, self- monitoring system Wired for real-time analytics, pricing and decision making More renewable energy options Optimization of the entire grid and the energy pathway Allows customers to interact with the utility Bringing the power grid into the digital age.

13 Xcel Energy - Smart Grid vision & approach First to present a comprehensive solution Densest concentration of new technologies Encompassing the entire power pathway Fuel source to end-use consumer Collaborative model Shared risk, shared rewards Focus on environmental aspects Uniquely positions Xcel Energy

14 Smart Grid City - Boulder, Colo. An international showcase of smart grid possibilities… a comprehensive demonstration of an intelligent grid community. Test technology Integrate smart grid portfolio of projects Prove benefits and possibilities

15 Expected Benefits Better manage your energy use and save money More energy efficiency/conservation options Choices for smart appliances and smart in-home controls Reduced carbon footprint More clean, green power Reduced dependence on foreign oil New energy storage technology Address climate change concerns Enhanced grid reliability and performance Strengthens national grid security Shared-risk business model to fund improvements and modernize aging assets

16 Learn more at: xcelenergy.com/smartgrid