OCTOBER 16, 2012 ROTARY IN REVIEW:
A New World for the Energy Industry

Club 10 Business Report

President Dan McKeown brought the meeting to order at 12:27 p.m. on a sunny fall Tuesday in downtown Saint Paul.  District Governor Joe Kovarik led the assembled Rotarians in singing America The Beautiful accompanied by Dennis Boom on the piano.  Carol Bufton provided the invocation.  Bonnie Holub facilitated the introduction of visiting Rotarians and guests.  Today's Greeters were Dennis Boom and Rick Gobell.

President Dan thanked past president Tom Farnham for presiding over last week's meeting in his absence due to the Nagasaki trip (see below). He also mentioned the email that has been sent to Club members regarding the proposed ByLaws changes to the number of Board position nominees and the financial audit cycle, asking all to read the changes and be prepared to vote.  This was also noted as Barbara Nichols last Club 10 meeting before she enters retirement.  Congratulations, Barbara!  Member Bob Chandler introduced new member Jeremy Wells of Minnesota Philanthropy Partners.

A delegation traveled recently to Nagasaki, Japan, sister city of the City of Saint Paul, at the invitation of the Rotary Club in Nagasaki to deliver the Club 10 gift to the city, the replica "Vision of Peace" statue.  The delegation included President Dan, Sue Cammack, John Chandler, District Governor Joe Kovarik and sculptor Bill Hueg.  They all came to the podium to help describe the slide and video show of last week's dedication ceremony.  This included video of the actual unveiling of the statue in the International Peace Park in Nagasaki.  The delegation gave a glowing report of their week in Nagasaki and the wonderful reception they, and the gift, received by our sister club there.  Pictures of the trip will be posted at the Club website.

John Marshall introduced today's speaker, Judy Poferl, President and CEO of NSP-MN/Xcel Energy.  Ms. Poferl presented an "Energy Update: Successes and Opportunities" which summarized the breadth of Xcel Energy's business and current activities in Minnesota and beyond.  Xcel Energy is a Fortune 200 company operating in eight states. It has 1.4 million electric customers and 500,000 natural gas customers.  It is the largest property tax payer in the State of Minnesota.  It is committed to Minnesota and will be opening a new headquarters building on the Nicollet Mall in downtown Minneapolis in 2016.  Xcel is also committed to Saint Paul, exhibited by its name sponsorship of the Xcel Energy Center Arena and many partnerships with the City for energy savings in public buildings.

Ms. Poferl stated that Minnesota's progressive public energy policy has gotten a number of things right and is out in front when it comes to renewable energy, transmission of energy and energy efficiency.  This has allowed Xcel Energy to keep energy reliable through investments in "plants, pipes, poles and wires" totaling about $1 billion per year.  The "Cap X2020" transmission line project is Minnesota's largest construction project and will total a $3.4 billion dollar investment.  The conversion of the High Bridge Plant from coal burning to natural gas (and a dog park!) was the ultimate recycling project and a great success.  Another large investment ($36 million) is the Energy Innovation Corridor (energyinnovationcorridor.com) which is the relocation of utilities along the central corridor transit project planned to occur at the same time as light rail construction.  Ms. Poferl also showed a fascinating time-lapse video of the 36-hour installation of the 5th Street underground substation transformer replacement in Minneapolis. 

Ms. Poferl addressed energy sales trends as background for a briefing on the 2013 Electric Rate Increase Case.The forecast sales trend for the period 2009 to 2020 is +0.3% for the entire period.  This is in part due to slowing economic growth but also due to the success of efficiency programs promoted in part by Xcel Energy.  Due to the compound impact of this real sales decline, along with investments in nuclear and transmission projects, and the continuing increase in property taxes, Xcel Energy will make the case for a rate increase in 2013.