1. Energy Policy Act of 2005 Frank Prager Xcel Energy Inc. February 22, 2006

2. First comprehensive energy bill since 1992  Eight years in the making  1700+ pages, 18 titles  Signed into law August 8 th  $14 billion in tax incentives  $64 billion in authorizations Energy Policy Act of 2005

3. The Act – 18 Titles I Energy Efficiency II Renewable Energy III Oil and Gas IV Coal V Indian Energy VI Nuclear Matters VII Vehicles and Fuels VIII Hydrogen IX Research and Development X Department of Energy Management XI Personnel and Training XII Electricity XIII Energy Policy Tax Incentives XIV Miscellaneous XV Ethanol and Motor Fuels XVI Climate Change XVII Incentives for Innovative Technologies XVIII Studies

4. Clean coal provisions Clean Coal Power Initiative –$200 million per year Clean Air Coal Program –$500 million over two phases Loan guarantees Tax credits Goal: Support for new technologies, especially IGCC

5. What is IGCC? IGCC stands for “Integrated Gasification Combined Cycle”  Coal converted into synthesis gas or “syngas” in pressurized gasifier  Syngas cleaned to remove environmental contaminants before being burned in combustion turbine to generate electricity  Waste heat recovered to produce steam and generate additional electricity in a secondary steam turbine (the “Combined Cycle” part of the plant)

6. Boiler Coal TurbineGasifier CO 2 Sequestration Enhanced Oil Recovery IGCC Process Waste Heat

7. Western IGCC demonstration project Sen. Salazar: Section 413 –IGCC demonstration project –Using western coal –At altitude (above 4000 ft) No appropriation Colorado House Bill 06-1281

8. Transmission provisions Transmission Incentives. –Incentive based rates to attract new investment Advanced Transmission Technology. Transmission Siting. –DOE to identity constrained corridors –Streamlines the process for FERC to issue permits –Eminent domain authority

9. Tax provisions Nuclear Decommissioning. –Deductions extended for decommissioning funds Pollution Control. –Seven year accelerated depreciation Transmission. –Fifteen year accelerated depreciation Wind and Biomass Production Tax Credit. –Expire at the end of 2007 –Solar investment tax credit

10. Other provisions LNG incentives Incentives for advanced metering Reliability Standards. –Creates Electric Reliability Organizations subject to FERC oversight PUCHA Repeal. –New FERC merger authority Non-Regulated Utilities. –Opens access to transmission facilities Customer Protections.

11. What was left out? Climate change –Senate resolution –Bingaman/Domenici effort Renewable portfolio standard Nuclear waste disposal

12. What’s next? Coal Based Electric Generation –More investment, especially in low-emitting generation and transmission. Natural Gas –LNG. Alternative Energy –More wind, solar, biomass in short term –More transmission investment Nuclear More rulemaking More legislation