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Xcel Energy - Fact Sheet
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Important Proxy Voting Information for Xcel Energy
Shareholders on Proposal 2 - Energy Sourcing Policy
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| Why Should Xcel Shareholders Take the Risk for Manitoba
Hydro? |
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Xcel Purchases Only 4% of its Energy From Manitoba Hydro, yet
the international
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criticism over the devastating ecological and social impacts
of Manitoba Hydro projects has tainted Xcel's reputation and presents
legal, financial and reliability risks to Xcel and its shareholders. Tell
Xcel management that Investing in Manitoba Hydro's Environmental Destruction
and Human Rights Abuses is Just Bad Business. |
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* Renewables include wind, hydro
and biomass Source: Xcel Energy Annual Report, 2001
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Legal Liability Risks to Xcel |
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- Xcel will face a court challenge that the Public Utilities Commission
did not consider environmental, socioeconomic and reliability, risks
and costs associated with its proposed Manitoba Hydro contracts.
- Xcel may be legally liable, under economic torts of inducement to
breach contract and/or economic interference, for buying power from
Manitoba Hydro when Xcel knows, or ought to know, that power
is being produced in violation of Canadian treaty and Constitutional
law.
- Xcel may be joined as a defendant or sued in related actions for
Manitoba Hydro exports that are subject to a trade challenge under
US anti-dumping laws, and/or WTO subsidy laws for unfair subsidization
for failure to internalize environmental and socio-economic costs.
Reliability and Security Risks to Xcel |
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- Manitoba Hydro is facing over 300 lawsuits for its failure to remedy
the harms and internalize the true costs of production into the price
of its electricity. The longer this continues the greater the risk
that such costs will grow and be imposed as a result of an environmental
disaster and/or major lawsuits - with costs likely passed to customers.
- The Enron collapse and California energy crisis raised important
questions about risk management, disclosure and transparency. A study
by McCullough Research identified particular concerns that Manitoba
Hydro:
- Misrepresents its reservoir system by counting almost half
of the reservoirs it relies on for power as its own when these
are not in its territory or under its control. Furthermore, it
operates in a flat terrain with reservoirs that are limited in
storage volume making the system vulnerable to drought. Manitoba
Hydro also requires long transmission lines, up to 1000 miles,
that are highly vulnerable to disruptions from weather or sabotage.
- Has a long history of secrecy and has consistently refused
demands of the Manitoba Ombudsman and under the Freedom of Information
Act to release information about its operations. Basic information
that would allow shareholders and ratepayers to make informed
decisions, such as its reservoir levels and integrated resource
plan, is unavailable. In contrast, U.S. utilities are required
to provide much more disclosure of vital information.
Reputational Risks To Xcel |
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- A 2001 Report by the Canadian Inter-Church Inquiry into Northern
hydro development concluded that the Pimicikamak Cree Nation and other
indigenous peoples face an "ongoing ecological, social and moral catastrophe."
- Numerous other reports and court rulings have identified environmental
and/or economic impacts by Manitoba Hydro on the Pimicikamak Cree
Nation including: Manitoba Court of Appeal, Report of Auditor General
of Canada, Canadian Dept. of Fisheries and Oceans, and the Commission
of Inquiry into Manitoba Hydro.
- Public concern over this issue continues to grow. Xcel has become
the target of consumer and media campaigns and public protests. Religious
organizations,the Sierra Club and other environmental and human rights
groups have alerted their membership about this issue and/or contacted
Xcel management directly with their concerns.
- The Media Spotlight is increasing its coverage on this issue. From
1998 - 2001 here have been over 500 media stories relating to the
plight of the Pimicikamak Cree Nation and their fight to restore their
land and community.
How Renewable Energy Will Help Xcel Shareholders |
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* Improve Regulatory Preparedness * Improve Response to a Changing Market
* Protect Shareholder Value |
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Minnesota Renewable Energy Laws and Policies Have: |
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- Set renewable energy objectives for utilities and defined renewable
energy as solar, wind, hydropower at less than 60 MW capacity and
biomass (MN statute 216B.1691). Manitoba Hydro does not qualify.
- Required the Public Utilities Commission to evaluate environmental
and socioeconomic costs of each method of electricity generation,
and to give preference to renewable energy sources (MN statute 216B.2422).
- Established a Legislative Electric Energy Task Force to determine
how MN could develop more secure in-state energy sources (mostly renewable),
versus riskier imports. The Energy Planning Report sets out a clear
preference to maximize "conservation, efficiency, and renewable resources"
and to develop smaller-scale in-state power and to rely less on large
scale and imported power (such as Manitoba Hydro).
- Ranked preference for electric generation energy sources according
to minimal degree of negative environmental, economic and social impacts
(MN statute 216C.051 - see chart).
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| Preferred Electric Generation - Rank of Energy Sources |
| * Ranked from most preferred (1) to least preferred (5) |
| 1. Wind and Solar |
| 2. Biomass, Small Scale Hydro |
| 3. Landfill Gas, Waste to Energy |
| 4. Natural Gas, Solid Waste, Large Scale Hydro |
| 5. Coal and Nuclear Power |
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Alternatives to Manitoba Hydro Exist |
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- "The Saudi Arabia for Wind Energy," is how a Union of Concerned
Scientists report labeled the Midwest. Xcel's home state of Minnesota
is rated as Class 5 wind country - the best on the continent. The
MN Dept. of Commerce identified 35,000 megawatts of high-grade wind;
UCS report also identified abundant biomass resources.
- State and National Polls repeatedly show that given a choice, American
consumers want renewable energy and are willing to pay a premium to
protect the environment.
- Xcel's territory includes North Dakota, South Dakota, and Minnesota
which are ranked first, second, and third respectively for wind resources.
- " Wind Energy is the fastest growing electric generation technology
because the technology has developed to the point that it is cost-competitive
with other technologies, the fuel is free, and environmental impacts
are virtually none." (Minnesota Dept. Commerce)
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Source: American Wind Energy Association
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RENEWABLE ENERGY… building a clean and ethical energy future |
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