An administrative law judge’s (ALJ) recent recommendation that Minnesota rely on solar power rather than natural gas to meet growing demand for electricity capacity was based on flawed assumptions, according to the state’s Department of Commerce, which concluded that one of three “superior” proposed gas projects be chosen.
Xcel
Articles from Xcel
ALJ: Xcel Should Seek Minnesota Solar, Rather Than NatGas, Generation
Xcel Energy’s plans to increase electricity generation in Minnesota should rely on solar power rather than natural gas, according to an administrative law judge (ALJ) tasked with reviewing the issue.
Colorado Floods Worsen Impact on Gas Service, E&P
Xcel Energy on Sunday reported new heavy rain storms in already flooded areas in Colorado, further hampering efforts to assess the condition of natural gas pipelines and equipment. On Sunday, the combination utility said there were approximately 4,070 customers without gas service, up from the 2,500 total last Friday (see related item).
Industry Briefs
Xcel Energy Inc., which provides power generation to Colorado customers, plans to build a 21-mile transmission line (230-kV) in the Piceance Basin to serve anticipated natural gas-fired generation to enhance reliability on the Western Slope. A 1,100 MW gas-fired generator also is planned near Mesquite, NV, on 250 acres of land managed by the Bureau of Land Management. A unit of EWP Renewables Corp. has filed an application with Nevada regulators to construct the plant, which would come online in two 550 MW phases in 2016 and 2017.
Industry Brief
Xcel Energy’s combination Colorado utility filed quarterly rate changes with state regulators that could result in monthly retail natural gas utility bills dropping by up to 8% compared to the first quarter this year. The rate for residential natural gas customers would drop 6.9% from 52.06 cents/therm in1Q2012 to 45.17 cents/therm in 1Q2013; for small businesses, rates would drop 8% from 52.28 cents/therm to 44.82 cents/therm. The Denver-based utility is asking the Colorado Public Utilities Commission for the changes to be effective Jan. 1.
CIG, Xcel Developing Gas Storage for Proposed High Plains Project
WYCO Development LLC, jointly owned by El Paso Corp.’s Colorado Interstate Gas (CIG) and Xcel Energy, said Wednesday it plans to develop and lease some new natural gas transportation and storage facilities in Colorado. The new facilities would support the proposed High Plains Pipeline Project, which launched open seasons in mid-January (see Daily GPI, Jan. 16).
Wyoming Regulators Satisfied with Utility Sale to Black Hills
Transition problems inherent is shifting Cheyenne Light, Fuel and Power utility operations from Xcel Energy to Black Hills Corp. have now been resolved, the Wyoming Public Service Commission indicated last Tuesday in accepting a report resulting from a three-month commission investigation. Problems developed after the sale was completed last January, but concerns about utility billing practices and other issues have now been put to rest, the PSC reported indicated.
Xcel Energy’s 2nd Qtr. Profits Drop Slightly; Utility Net Up
Despite increased results from utility operations, Minneapolis-based Xcel Energy Wednesday reported that its overall income from continuing operations for the second quarter was $78 million, or 19 cents/diluted share, compared with $86 million, or 21 cents/share, for the same period last year. Total earnings were $83 million, or 20 cents/share, for the second quarter, compared with $86 million, or 21 cents/share, in the same period in 2004.
S&P Cuts Ratings on NRG to CCC
Xcel Energy subsidiary NRG Energy is fast approaching the basement of junk bond ratings levels. Standard & Poor’s (S&P) lowered its credit ratings to CCC from B-plus last Thursday due to NRG’s urgent need to sell off a massive number of power generation assets in order to meet a $1.3 billion collateral payment deadline of Sept. 13 or convince lenders it will be able to make the payments soon. S&P also lowered its credit rating on NRG Northeast Generating LLC’s bonds and NRG South Central Generating LLC’s bonds to CCC.