2012 La Crosse County Disposal System Meeting April 18, 2012

1. 2012 La Crosse County Disposal System MeetingApril 18, 2012

2. Xcel Energy Company Profile • Regulated operations in 8 Western and Midwestern States • Provide electricity to 3.4 million customers • Provide gas service to 1.9 million customers • 11,223 employees

3. Wisconsin and Michigan Operations • Customers Electric ~ 250,000 Gas ~ 106,000 • Employees Wisconsin – 1,086 Michigan – 20 • Communities Served Wisconsin – 213 Michigan – 10

4. Accomplishments • NSPM and NSPW, were ranked No. 1 in the 2011 J.D. Power Business Electric Study among large utilities in the Midwest region earning top marks for power reliability, customer service and our billing and payment department. • Our Process Efficiency program, which helps commercial customers create three- to five-year energy-management plans that incorporate sustainable energy efficiency into their industrial processes and technical projects, received the Midwest Energy Efficiency Alliance’s (MEEA) “Inspiring Efficiency” award. • For the third year, G.I. Jobs Magazine named Xcel Energy one of the nation’s 100 most military-friendly employers. The annual list recognizes the top 2 percent of veteran-friendly companies in the United States. Approximately 1,325 – or about 11 percent – of our employees have served in the U.S. armed forces.

5. NSP Fuel Mix 2010 2020 Nuclear 30% Nuclear 30% Biomass 2% Biomass 1% Wind 9% Other 1% Other 7% Wind 19% Hydro 6% Hydro 8% Natural Gas 12% Natural Gas 7% Coal 37% Coal 31%

6. Environmental Leadership • #1 renewable energy provider in WI • #1 wind energy provider in nation (past 8 years) • #5 in U.S. for solar capacity-over 5,000 photovoltaic installations = ~ 48 MW (past 4 years) • currently have more than 25 MW-AC of utility-scale solar on our system, and through our popular Solar*Rewards® program, have grown the number of customer-owned photovoltaic systems from around 300 in 2006 to more than 7,300 by the end of 2010.

7. Environmental Leadership (cont.) • Research • We are the original founding member of the Solar Technology and Acceleration Center (SolarTAC), which is an integrated, world-class facility where the solar industry and solar energy users can test, validate and demonstrate advanced solar technologies under actual field conditions. Partnering with the Center to test and demonstrate advanced technologies for the emerging solar market. • Provided funding for solar panels and energy-efficient lighting at universities in CO and MN.

8. French Island Plant Operations • 32 MW • Produces enough energy to serve ~10,000 homes, displacing over 10,000 tons of coal annually • 29 full time employees • 24 hrs/day, five days per week • Safety – Over five years with zero lost-time accidents; > 2 years without OSHA-recordable injury • Provided plant tours to 811 citizens in 2011

9. 2011 Operating Data • In 2011, the plant burned 55,000 tons of RDF; 17,000 tons of wood biomass and 44,000 tons of ties. • Since the plant began burning RDF and biomass in 1987, it has burned in excess of 1 million tons of RDF and over 1.5 million tons of wood and ties. • In 2011, the plant sent 12,000 tons of ash to the La Crosse County landfill for disposal.

10. Environmental Performance • Annual tests conducted on each boiler • 2011 stack test results compared to 2001 stack test results show the following: • Dioxins/furans 98% • Lead 98% • Cadmium 82% • Mercury 97% • Particulate Matter 74% • Hydrogen Chloride 98%

12. Environmental Performance • Continuous Monitors • Sulfur dioxide • Nitrogen oxides • Carbon monoxide • Opacity • Permit Revised in 2012 to allow the plant to burn 100% RDF – requires additional stack testing to be done annually.

13. Environmental Performance • Air Pollution Control Devices at the Plant • Fabric Filter Baghouses: Particulate Control devices that remove metals and dioxins associated with particles, and any vapors that adsorb to the particles. • Lime Injection: Removes both acid gases (hydrogen chloride and SO2) and particulate matter • Urea Injection: Reduces NOx emissions • Activated Carbon Injection: Reduces dioxin and mercury (50% – 75% removal). Particles adsorb onto the carbon.

14. Environmental Performance -Recycling • Communities with waste-to-energy plants have a 20% higher recycling rate (on average) than communities without waste-to-energy • In 2011, the French Island plant sent 1385 tons of ferrous metals off-site for recycling • Installed a non-ferrous metal separator in 2010 to collect aluminum cans for recycling – sent 227 tons of aluminum for recycling in 2011

15. Environmental Performance: GHG Reporting • Since 1/1/2010, the French Island plant has reported its CO2e emissions to the EPA. The new reporting rule requires quarterly flue gas analysis to identify the portion of the gas that is shown to contain biogenic (renewable) carbon as opposed to “fossil” carbon. The plant’s 2011 samples showed an average biogenic carbon content of > 75%. CO2e = CO2, methane, nitrous oxide and fluorinated gases such as SF6

16. Waste-to-Energy Air Emissions Compared to Fossil Fuel Plants (pounds/MWH)

17. 2011 Plant Maintenance/Improvements • New tubes in boiler #2 • Replaced RDF rotary feeders, metering bin augers and walls for metering bins to improve RDF fuel feed • New RDF fire detection and protection system • RDF cyclone separator to increase throughput and reduce product carryover to baghouse • Internal and external inspections of both stacks • Improved lighting in RDF plant and steam plant

18. Statement by EPA • “Waste to Energy plants produce electricity with less environmental impact than almost any other source of electricity.” – (Letter from Marianne Lamont Horinko, Assistant Administrator, USEPA to Maria Zannes, President, Integrated Waste Services Association, February 14, 2003)