Colorado Renewable Requirements, Policies, and Projects James Tarpey, Esq. Commissioner Colorado Public Utilities Commission 1560 Broadway, Suite 250 Denver, CO P | F

1 Falling Growth in Demand Note: Forecasts Includes DSM /Demand Response Goals Public Service Company Summer Peak Demand (MW)

2 And Falling Growth in Sales Public Service Company Annual Sales (MWh) Note: Forecasts Includes DSM /Demand Response Goals

3 Changes in Colorado’s RPS 2004 RPS Goal: 10% by RPS Goal: 20% by RPS Goal: 30% by 2020

4 Public Service Wind Development MW of wind generation in service by MW of new wind generation selected as part of the Electric Resource Plan –173 MW in service in 2009 –252 MW in service by 2010 –450 MW in service by 2015

5 Public Service Solar Thermal and PV Development 24 MW of utility scale PV generation in service by MW of new utility scale PV generation selected as part of the Electric Resource Plan 250 MW of Solar Thermal generation with storage selected as part of the Electric Resource Plan Projected three 250 MW solar thermal facilities in 2016, 2017 and 2018, totaling 750 MW 5

6 Distributed Generation Development HB : –Absolute 3% DG requirement in 2020 (contrast to 4% solar calculation) –Defines DG as a renewable resource not requiring any additional substation or transmission facilities: oRetail – interconnected on the customer side of the meter (may not supply more than 120% of customer’s average annual consumption) oWholesale – interconnected directly to distribution at normal distribution voltages (nameplate rating must be 30 MW or less) 6

7 Clean Air – Clean Jobs: HB Goals: –Meet reasonably foreseeable requirements of federal Clean Air Act –Protect public health and the environment at a lower cost than a piecemeal approach Impetus: IOUs’ compliance with expected federal environmental requirements, especially for regional haze and ozone Mercury reductions and potential federal greenhouse gas reductions also considered

8 Clean Air – Clean Jobs: HB Means: Retrofit, Retire, Replace Preferred replacement: –natural gas –Long term natural gas contracts are encouraged Public Service expected to address at least 900 MW of generation in the Front Range of Colorado

9 Clean Air – Clean Jobs: HB Key Dates: –August 15, 2010: Public Service plan due –December 15, 2010: PUC decision due –Early 2011: Legislative approval –December 31, 2017: Plan to be fully implemented

10 ERZs and Senate Bill SB : –Identify zones in Colorado rich in energy resources and transmission investments –180 day deadline for final Commission decisions on CPCNs for projects identified in bi-annual SB-100 reports –Current cost recovery through a rider for transmission projects for which a CPCN has been granted

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12 Transmission and Senate Bill