A Brief History of Metro Denver s 25 year pursuit of a diverse economy.

Transcription

1 A Brief History of Metro Denver s 25 year pursuit of a diverse economy.

2 Every city gets to make century decisions. In all of these there is only one common element the business community brings continuity. Bruce Rockwell

3 Metro Denver EDC Region 3.4 million residents 67% of state population Over 75% of State GDP

4 The Century Decisions Prior to 1980 Denver Pacific Railroad to Cheyenne, Wyoming The water decisions of the 19 th & 20 th centuries The Moffat Tunnel The City Beautiful Movement Stapleton The Valley Highway Lowry and Fitzsimons purchases

5 City and County Building

6 1930 s A New Port Stapleton Airport opens as Mayor Ben Stapleton sees the opportunity of commercial air service

7 The man who insists upon seeing with perfect clearness before he decides, never decides. Frederic Amiel

8 153 Days of Unhealthy Air 1973

9 The Oil Shale Bust of 1982 Denver: You Can t Fall Off the Floor Forbes, 1986 A recession is a terrible thing to waste. Economic development groups proliferate Office vacancies reach 31% in Downtown Finger pointing time Find the bad guy.

10 The October Cup of Coffee Crazy 8 comes up with a REAL crazy idea: Sell the region first, our communities second.

11 Economic Armistice Signed Denver Post January, 1987 Governor, warring Mayors sign historic agreement. The importance of ritual in regional collaboration. Customs vs. rules Developing a culture of collaboration. Honest broker on neutral ground.

12 A strategy to become a world community emerges Place making economic development Regional organizations proliferate in a burst of new thinking. Scientific Cultural Facilities Districts DIA Metro Mayors Caucus Metro County Commissioners Caucus Stadium Districts Regional Air Quality Commission RTD and eventually FasTracks

13 Innovation Clusters in Metro Denver

14 The Metro Denver Network and The Metro Denver EDC Principles of Agreement making assignments Code of Ethics developing a code of conduct Six Strategic Objectives Mobility mass transit Tax Reform TABOR, Gallagher and single factor apportionment DIA Existing Business National Marketing and Public Relations Special Projects

15 The Century Decisions since 1990 Mountain Backdrop DIA Fitzsimons and Lowry The 470s Lower Downtown T REX and FasTracks

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17 DIA

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19 Did all this matter? 3 rd fastest job growth for metro areas: July, 2011 July, th fastest growing state 1 st choice for years olds to migrate 4 th lowest metro area in loss of housing value during Great Recession New home for US Patent and Trade Office satellite office Region averages 6 10 corporate headquarters relocations each year since Average annual HQ locations from : <1. Colorado now 3 rd most diverse economy in U.S.

20 Phoenix, Arizona

21 Las Vegas, Nevada

22 Denver, Colorado

23 Mistakes, I ve made a few. Frank Sinatra

24 Put Two Forks in it, it s done. George Bush, Sr. goes from Texas Hold Em to Colorado Fold Em. Bush caves to environmental interests and years of planning and effort for major water storage project dries up Democrat Governor Roy Romer unable to persuade Republican President Bush to reverse decision. 600 years drought in shows folly of decision

25 Air Quality What Brown Cloud? Region ignored unhealthy air problems for almost 100 years. By 1985 Denver was 2 nd most polluted city in the U.S. behind L A Concerted effort by Chamber and environmentalists changed citizens perception of air quality from an environmental problem to an economic problem. By 1992, Robert Redford proclaimed on national TV, The only place in the country that gives a damn about air quality is Metro Denver. Region enjoyed 15 years of no violations for any pollutants.

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27 Bad Decisions Gone Good

28 Lowry Air Force Base Technical Training Center for Army Air Corps and temporary campus for Air Force Academy

29 Please Uncle Sam, don t cut all those $900 a month jobs at Lowry! Aurora and Denver combine to save an Air Force base from closing.a base that lacks one important element. A RUNWAY!!!!! Lowry becomes Poster Child for re development of abandoned military base an urban community with multiple uses and a classic urban neighborhood. Closed in 1994 it is now the highest priced housing ZIP code in Denver.

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31 Another bad decision becomes a century decision for the Denver region Fitzsimons now nation s largest life sciences center under construction $5.0 billion vs. $2.5 billion for most competing sites like Johns Hopkins

32 Manufacturing Land Closure of Lowry and Stapleton coupled with Gateway at DIA turns Denver into major land developer in region more land than Jeffco From abandoned sewage plant to 13,000 acres of prime land in a decade A land locked urban center no more

33 50 Year Decisions LoDo or Auraria whither go the Boys of Summer? The Can Pepsi that is. Mile High Thunder in the suburbs?

34 Infrastructure Placements Drive Downtown Revitalization Coors Field Pepsi Center Invesco Field

35 Convention Center

36 Coors Field Opening Date: 1995 Capacity: 50,445

37 Pepsi Center Opening Date: 2000 Capacity: 19,100

38 INVESCO Mile High Opening Date: 2001 Capacity: 76,125

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40 FasTracks Doubling the Airport for 100 million passengers The Super Slab all transmission High Speed Rail on the Front Range, with a stop at DIA for kicks

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42 I like a person who is proud of his community. And I like a community that is proud of the person who lives within it. Abraham Lincoln

43 Today s s Energy Outlook Ben Fowke Chairman, President and CEO Xcel Energy

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45 Xcel Energy: Who We Are Fortune 200 company 5 million customers in 8 states $10.7 billion in revenues No. 1 provider of wind energy Dow Jones Sustainability Index No. 2 on Most Trusted Companies in America

46 NSP-Minnesota: Who We Are 1.4 million electric customers 500,000 natural gas customers ~5,400 employees Largest property tax payer in Minnesota Active community partners Energy assistance United Way Non-profit grants

47 Today s s Energy Challenges Our aging infrastructure Managing environmental hurdles Investments, capital and cost Today s s choices for tomorrow The utility of the future

48 Building the Electric System Post WWII 1960 s US Third Industrial Revolution Economies of scale with 7% annual growth doubling every 10 years 1970 s 1980 s Inflation & higher cost per unit Environmental concerns emerge

49 Average Percent of Disposable Income and Growth Rates of Percentage ( ) 16% 14% 12% 10% 8% 6% 4% 2% 0% 1960s 1970s 1980s 1990s 2000s 2.5% 1.2% 0.1% -1.4% Health Care Services Electricity Financial Services & Insurance Natural Gas

50 A Better Product Cleaner 250, , , ,000 50,000 0 Tons of SO2 More Reliable Safer Number of Transmission Events Resulting in Load Loss OSHA Incidents

51 EPA s Regulatory Agenda Environmental Regulatory Timeline for Coal Units Ozone (O 3 ) SO2/NOx CAIR / CSAPR Water CAIR Vacated Begin CAIR Phase I Seasonal NOX Cap CAIR Remanded Transport Rule Proposal Issued (CAIR Replacement) SO2 Primary NAAQS Ozone Final NAAQS Proposed NOX Primary NAAQS Final Transport Rule (CSAPR) Final CO2 CSAPR Regulation Stayed (PSD/BACT) SO2 / NOx Secondary NAAQS Final Effluent Guidelines Proposal 316(b) Final Rule Effluent Guidelines Final Rule Expected Ozone NAAQS Final Rule Expected Effluent Guidelines Compliance 3-5 Yrs After Final Rule 316(b) Compliance 3-4 Yrs After Final Rule CAMR & Delisting Rule Vacated Begin CAIR Phase I Annual NOx Cap Begin CAIR Phase I Annual SO2 Cap PM/PM2.5 CCB Rule Proposal MATS Proposed 316(b) Proposed Rule MATS Final GHG NSPS Proposal (New Plants) Ash GHG NSPS Proposal (Existing Plants) PM-2.5 NAAQS Final MATS MATS Compliance Date Begin Compliance With CCB Rule (Ground Water Monitoring, Double Liners, Closure, Dry Ash Conversion) CO2 Regional Haze Reasonable Further Progress SIP Due Adapted from Wegman (EPA 2003) Updated Xcel Updated

52 Environmental Leadership Carbon Dioxide Sulfur Dioxide Nitrogen Oxide 100,000 90,000 80,000 70,000 60,000 50, % 80% 71% NSP-Minnesota owned generation, emissions in thousands of tons

53 Upper Midwest Fuel Mix Current 2025 Nuclear 29% Natural Gas 7% Other Renewables 10% Wind 10% Natural Gas 17% Nuclear 28% Other Renewables 4% Wind 13% Coal 44% Coal 38% * As filed in current Resource Plan

54 Capital Investment Xcel Energy NSP-Minnesota PSCo 32% SPS 17% NSP-Wisconsin 7% Environmental Distribution 13% 5% Nuclear Fuel 13% Natural Gas 4% Other 7% NSP-Minnesota 44% Total: $13.4 Billion Generation Transmission 30% 28% Total: $5.9 Billion

55 Projected Financing Plan Dollars in millions $13,400 Funding capital expenditures $9,380 $2,820 $800 $400 $2,640 Cap Ex CFO * New Debt Equity DRIP Refinanced Debt * Cash from operations, net of dividend and pension funding

56 Resource Decisions: Making Choices for Tomorrow Today year timeframe Options Conservation (demand-side management) Renewables (wind, solar) Coal Nuclear Natural Gas

57 Natural Gas Price Forecast $12 $10 Dollars per MMBtu 2008 Forecast Average: $9.51 $8 $6 $4 $ Forecast Current NYMEX Average: $5.57 Average: $5.22 $

58 Resource Cost Dollars Cost With No Subsidy Cost Subsidized Wind Natural Gas New Coal Nuclear Large Utility Solar Rooftop Solar

59 Will Solar Be Competitive? $500 $400 NREL and DOE 2020 Rooftop PV Solar Cost Estimates and Targets Customer Rates ($127/MWh) Total Cost ($/MWh MWh) $300 $200 $4.25/W $381/MWh $2.74/W $1.79/W $100 $255/MWh $171/MWh $0 NREL 2010 NREL 2020 Estimated DOE 2020 SunShot

60 Utility of the Future

61 Downtown Minneapolis 5 th Street Substation Transformer Replacement

62 Downtown Minneapolis 5 th Street Substation Transformer Replacement 1 Minute

63 Downtown Minneapolis 5 th Street Substation Transformer Replacement 3 Minute

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