Legalectric

Xcel Energy has released its 2016 SEC 10-K, and here is the number I care most about, the peak demand, incorporated into the chart above:

“Peak Demand” is the number they use to attempt to justify “need” for all sorts of abhorrent and expensive infrastructure, particularly infrastructure of the transmission variety.  Here are the specifics in megawatts (MW):

As Xcel Energy’s Ben Fowkes says, this is the “new normal.”  From the Seeking Alpha transcript of the XEL Earnings Call, January 31, 2013. 

So I think the economies are in decent shape across all our jurisdictions. Doesn’t necessarily mean it translates to high sales growth. And that’s consistent with our forecast. I mean, we’re not anticipating that we’re going to see a tremendous rebound in sales, even as the economies start to improve. I mean, I think, that’s our new normal, frankly.

Hence, they’re looking for other ways to make money, which they found in transmission, specifically CapX 2020 transmission, which was justified with this chart from MN Dept. of Commerce’s Steve Rakow, in his bar napkin depiction of the ups and down of peak demand:

Compare this drunken-dream drawing with the actual peak demand above — doesn’t look at all similar, does it.  Nevertheless, we’ve been stuck with over $2 billion in transmission infrastructure build-out which we’re just starting to pay for, and just starting to see show up in rate cases.  People are just now starting to get a feel for the economic impact, as if the environmental and quality-of-life impact isn’t bad enough…

Meanwhile, after going through years and years over CapX 2020, followed by the MISO MVP 17 project portfolio, now under construction, MISO wants to spring another bunch of projects on us. Their “Transmission Overlay.”  Yeah, right…

Here’s the list, in a spreadsheet:

20170131 EPUG Preliminary Overlay Ideas List

This is the MN, WI, SD, ND and some IA wish list weeded out from that spreadsheet (click for a larger version):

They want to add all of this, nevermind that Xcel is whining in its e21_Initiative that only 55% of the grid is not utilized:

(N) Identify and develop opportunities to reduce customer costs by improving overall grid efficiency.  In Minnesota, the total electric system utilization is approximately 55 percent (average demand divided by peak demand), thus providing an opportunity to reduce system costs by better utilizing existing system assets (e.g., generation, wires, etc.). (e21_Initiative_Phase_I_Report, p. 11).

And they want to build more?  MORE?!?!

And they want to ram it through even though it’s not needed, just like CapX 2020 transmission?  As if Obama’s RRTT wasn’t enough, pushing CapX 2020 Hampton-La Crosse transmission line:

Obama “fast tracks” CapX Hampton-LaCrosse?!?!?!

… check out tRump’s Executive Order 13766:

Expediting Environmental Reviews and Approvals for High Priority Infrastructure Projects

GRRRRRRRRRRRR!  As if there’s not enough work to do these days… but you know, the work never ends for us “paid protesters.”  And a woman’s work is never done either.

The Public Utilities Commission has approved the Public Hearing Notice for the Xcel Energy Rate Case to be included in bills and publicized where ever.  We’ve got some notice to get prepared:

Lo and behold, there’s one scheduled for Red Wing!!  Thanks for small favors…

What are the issues in the rate case?  Check the docket by going HERE TO PUC SEARCH DOCUMENTS PAGE, and search for docket 15-826.

A couple of things you might find interesting, I did, are some of the Direct Testimony filings.

2A2_Multi-Year Rate Plan – Burdick_201511-115332-02

2C2_Xmsn_Benson_201511-115335-03

In addition to whining about the grid being only 55% utilized (ummm, yes, we knew it wasn’t needed, but you went ahead and built it and now want us to pay through the nose, or other orifices, for your transmission for market export?  ppppppbbbbbbft!), here’s the issue — prices have fallen, the market is down, down, down, and we’re conserving, using less, and so now they want us to pay more to make up for it, oh.  Recap:  Xcel Energy wants us to pay for the transmission over our land for their private profit, they want us to pay more because we’re using less, and they want us to make up for their poor business decisions… yeah, great idea.

This rate case and rate increase request is in large part transmission driven.  Xcel wants to move from cost based rates to formula rates, and they want to shift transmission costs from the Construction Work in Progress recovery that was part of the deal leading to the 2005 Ch 97 – Transmission Omnibus Bill from Hell, with transmission perks, CWIP and Transmission Only Companies.

And then there’s the e21 Initiative, Xcel Energy’s effort leading up to the 2015 legislative session, and it seems that with the exception of AARP, only those who signed on to the e21 “Consensus” are allowed to intervene.

e21_Initiative_Phase_I_Report_2014

Great…

Lo and behold, there’s a public hearing scheduled for Red Wing!!  Thanks for small favors…  Mark the hearings on your calendar and show up.  Before hand, do a little reading!

Remember Xcel’s CapX 2020 peak demand projections of 2.49% annual increase?  How wrong can they be?  And how unjustified was their basis for a Certificate of Need for CapX 2020?  And how are they held accountable for those gross misrepresentations?  This is why the rate case in progress, PUC Docket 15-826, is so important.

I love it when this happens… Xcel Peak Demand is again DOWN!  There’s a trend, and it’s called decreased demand.  Demand has yet to exceed the 2007 peak, and now it’s 8 years…

Here’s the Xcel Energy SEC 10-K filed a couple days ago:

2015 – Xcel Energy 10-K

Is it any wonder they want to get away from a cost based rate a la their “e21 Initiative” scheme?  Particularly now that the bill for CapX 2020 is coming due and their newest rate case (PUC Docket GR-15-826) is now underway?

And the specifics, and note how they inexplicably forecast a 2016 peak of 9,327:

Yes, I’ve filed this under “Energy” “Disaster” because it’s a train wreck of a proposal, and I cannot believe people would buy into this… or sell out into this.  What, you say?  e21!

102115_e21_Initiative_Phase_I_Report_2014

In December, Xcel filed this, and I swear, this was the heading:

REQUEST FOR PLANNING MEETING AND DIALOGUE

ROADMAP FOR SUPPORTING THE e21 INITIATIVE

“Roadmap for SUPPORTING?”  Really…

So what is it?  It’s a lot of whining about how hard it is to be a utility and that things are changing.  Ummmmm… yeah.  As if Xcel didn’t know that?

It feels to me like it’s another whack at “restructuring,” a/k/a deregulation, and a “we’re too big to fail” argument.  And as before with “restructuring,” everyone’s getting in line, jumping on the bandwagon.

Listen to this recommendation:

(J)1. Encourage the use of, and give additional weight to, settlement agreements among parties, as long as the Commission determines that the agreements are in the public interest.

Really…

And now that we’ve permitted and built all this excess transmission capacity, they’re whining about under-utilization… can you believe it?  Check this recommendation:

(N) Identify and develop opportunities to reduce customer costs by improving overall grid efficiency.  In Minnesota, the total electric system utilization is approximately 55 percent (average demand divided by peak demand), thus providing an opportunity to reduce system costs by better utilizing existing system assets (e.g., generation, wires, etc.).

This sounds like the best opening to get into the CapX and MVP dockets and get them revoked.  Give me a break…

So I just filed this, we’re gonna do what we can:

Legalectric and Muller – Petition for Intervention

Why file for intervention?  Well, this thing is all about stakeholders, and argues that, hey, look, all the stakeholders agree so just do it.  Ummmm… right… and just who are the stakeholders?  Those who have made those agreements with them in the past that got us right where we are today, DOH! What a fine mess you’ve gotten us into… let’s not do it yet again!