FORGING OUR PATH

Corporate Responsibility Report for 2014

A Report on the Economic, Environmental & Social Impacts of Xcel Energy

Our Company

• Message from the CEO

• Operating companies

• Company strategy

• Stakeholders 

• Performance measures

• Governance

• Corporate Compliance & Business Conduct

• Customer data privacy

• Financial performance

• About this report

Earning Customer Loyalty

• Customer numbers

• Customer solutions

• Customer engagement

• Customers in need

• Public safety

Providing Community Value

• Operations numbers

• Reliable energy

• Affordable power

• Supply chain

• Community investment

Fostering a Safe, Productive Workforce

• Workforce numbers

• Safety and workforce relations

• Talent strategy and transformation

• Employee engagement

• Total Rewards

Leading Environmental Commitment

• Emission numbers

• Emission reductions and reporting

• Environmental policy

• Renewable energy

• Energy efficiency

• Clean energy partnerships

• Environmental management

• Waste reporting

• Water reporting

• Biodiversity

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Safe Harbor Statement

This material includes forward-looking statements subject to certain risks, uncertainties and assumptions. 

They include statements about our future performance, future financial and operational results, strategies, 

prospects and other statements that are not purely historical. Such forward-looking statements may be 

identified by words such as “anticipate, believe, estimate, expect, may, projected, objective, outlook, plan, 

possible, potential, should” or similar expressions; and speak only as of the date they are made. We do 

not undertake any obligation to update any forward-looking statements. Factors that could cause actual 

results to differ materially include, but are not limited to: general economic conditions, including inflation 

rates, monetary fluctuations, and their impact on capital expenditures and our ability to obtain financing 

on favorable terms; energy industry business conditions, including the risk of a slowdown in the U.S. 

economy or delay in growth recovery; trade, fiscal, taxation and environmental policies in areas where 

Xcel Energy has a financial interest; customer business conditions; actions of credit rating agencies; 

competitive factors; unusual weather; geopolitical events, including war and acts of terrorism; 

cybersecurity threats and data security breaches; state, federal and foreign legislative and regulatory 

initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset 

operation or ownership or impose environmental compliance conditions; structures that affect the speed 

and degree to which competition enters the electric and natural gas markets; costs and other effects of 

legal and administrative proceedings, settlements, investigations and claims; actions by regulatory bodies 

impacting our nuclear operations; financial or regulatory accounting policies regulatory bodies impose; 

availability or cost of capital; work force factors; and other risk factors Xcel Energy lists in our 2014 report 

on Form 10-K to the SEC, including Item 1A - Risk Factors and Exhibit 99.01, as they may be updated in 

our subsequent 10-Q and 8-K reports.

3
About Us

Minneapolis-based Xcel Energy is a major U.S. electricity and natural gas company operating in eight 

Western and Midwestern states. The company serves its 3.5 million electricity and 2 million natural gas

customers with a leading portfolio of renewable resources and one of the most extensive offerings of 

energy management programs in the nation. Xcel Energy employs more than 11,000 full-time employees 

and is recognized for its commitment to hiring military veterans. The Xcel Energy Foundation donates 

about $13 million annually in communities the company serves.

Vision

We will be the preferred and trusted provider of the energy our customers need.

Mission

We provide our customers the safe, clean, reliable energy services they want and value at a competitive 

price.

Values

Our values reflect our core beliefs—who we are, how we conduct our business and the importance of our 

customers. We commit to:

• Ensure safety for ourselves, our coworkers and the public

• Work productively and create a challenging and rewarding workplace

• Treat all people with respect

• Conduct all our business in an honest and ethical manner

• Work together to serve our customers

• Be accountable to each other for doing our best

• Promote a culture of diversity and inclusion

• Protect the environment

• Achieve operational excellence

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Message from the CEO

To our stakeholders:

In a changing and challenging energy marketplace, Xcel Energy is exactly where we want to be: 

Forging Our Path for success and a more sustainable energy future. Achieving that goal means relying 

on fundamental values that are more important than ever, while determining new and innovative ways to 

satisfy our customers, care for our communities, support our employees and create value for our 

investors.

Year after year, we’ve delivered on the fundamentals. For a decade, we’ve met or exceeded our earnings 

guidance, and our balance sheet and credit metrics stayed strong. Our customer satisfaction results are 

consistently high. We turn in outstanding reliability and operational performances. Our portfolio of 

renewable energy resources is second to none, and we’ve been the No. 1 utility provider of wind energy 

in the nation for more than a decade. We are a mainstay in our communities, supporting them with 

corporate funding and volunteer efforts.

But we recognize more than anything that our customers want us to go above and beyond—and that is 

where we’ve set our sights. To guide that effort, we’ve developed a dynamic strategic action plan that 

focuses on improving the performance of our operating companies, expanding options for customers, 

growing our business and ensuring we have the technology and people we need to be competitive. 

Customers are looking in particular for cleaner energy options and more control over their energy use. 

This year alone to keep our systems safe and reliable, we are investing more than $3 billion, and we’ll 

invest $14.5 billion over the next five years. Beyond that, we are building an even more significant 

portfolio of renewable energy sources. By 2016, we plan to add 1,900 megawatts of wind energy across 

our service territory for a total of more than 7,000 megawatts. 

Already among the top 10 utilities in the country for solar capacity, we are expanding solar energy across 

our service territory, but particularly in the Upper Midwest, where we recently announced a first-in-thenation Clean Energy Partnership with the city of Minneapolis. The agreement charts a collaborative 

approach to enable the city to meet aggressive climate and energy goals.

In fact, Xcel Energy is on a path to reduce carbon dioxide (CO2) emissions 30 percent compared with 

2005 levels by 2020. That makes us an industry leader in CO2 reduction. Beyond that, we’ve proposed a 

resource plan for the Upper Midwest that would double our renewable energy portfolio and reduce CO2 

emissions 40 percent by 2030 in the region. With emission reductions as its driver, the plan gradually 

reduces our reliance on coal-fueled generating units but maintains a diversity of resources to keep costs 

reasonable. In the end, we would have an energy mix in the Upper Midwest that is more than 60 percent 

carbon free.

In Colorado, we are significantly reducing CO2 emissions by retiring six coal-fueled units and building a 

new natural gas-fueled plant as part of the state’s Clean Air-Clean Jobs effort. Our transformed fleet of 

generating units is not only cleaner but more efficient and reliable.

Those efforts put us in a strong position as the U.S. Environmental Protection Agency (EPA) prepares to 

issue new rules to reduce greenhouse gases. At the same time, we are working with the EPA to advocate 

for recognition of the early action we’ve taken to reduce emissions— again, to protect the interests of our 

customers.

Finally, the most important element of our environmental leadership effort is the fact that we are delivering 

clean energy at a competitive price, which makes me particularly proud.

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Our path forward relies on strong communities, and we think of them as our energy partners who benefit 

from clean, safe, reliable energy. Beyond that, we support them with corporate funding from the Xcel 

Energy Foundation, which in 2014 contributed more than $3.6 million to promote workforce development, 

STEM education, environmental stewardship and access to the arts. Our United Way campaign, which 

has been impressive over the years, resulted in more than $5.4 million to benefit the communities we 

serve—with the highest level of employee participation in our campaign to date.

Employees are especially important to our success. Day after day, they demonstrate their commitment to 

our customers and communities, understanding that their work is vital to the quality of people’s lives. In 

return, we strive to provide employees a safe and welcoming workplace, give them the tools they need to 

do their best work, and ensure their compensation and benefits are fair.

For the past few years, our employee recruitment effort placed special emphasis on hiring military 

veterans because we recognize that vets are a good fit at Xcel Energy, with outstanding technical and 

leadership skills among other attributes. Those efforts have garnered us recognition as one of G.I. Job’s 

Top 100 Military Friendly Employers for six years in a row, a distinction that places us among the top 2 

percent of employers dedicated to hiring veterans.

Investors round out our list of stakeholders. To build value for them, we are focused in particular on 

growing our business, the final piece of our strategic action plan. We look for organic growth 

opportunities, but beyond that we are focusing in particular on growing our transmission and natural gas 

businesses—areas where we already have expertise.

In 2014, we created three independent transmission companies, or transcos, to give us the flexibility to 

compete in a competitive transmission market. While we are in the early days of pursuing growth in 

natural gas, we see great opportunities for new infrastructure as our industry works to address the EPA’s 

proposed greenhouse gas rules. We will be building infrastructure but also considering upstream 

investments, which means looking at the potential of investing in a natural gas transmission pipeline or 

perhaps natural gas reserves.

Ours is an exciting business, and again, we are exactly where we want to be: moving forward with our 

customer and community partners, forging our path to success. As you read our report, you will see many 

more examples of how we are tackling the challenges ahead and of the success of our journey. We’re 

glad you are along for the ride.

Sincerely,

Ben Fowke

Chairman, President and CEO

6
Operating Companies

Xcel Energy Inc.’s operations include the activity of four wholly owned utility subsidiaries that serve 

electric and natural gas customers in eight states. These utility subsidiaries, referred to as operating 

companies, are Northern States Power Company-Minnesota, Northern States Power CompanyWisconsin, Public Service Company of Colorado and Southwestern Public Service Company.

Along with WYCO Development LLC, a joint venture formed with Colorado Interstate Gas Company (CIG) 

to develop and lease natural gas pipeline, storage and compression facilities, and WestGas Interstate, 

Inc. (WGI), an interstate natural gas pipeline company, these companies make up the continuing 

regulated utility operations.

Xcel Energy Services (XES) is the service company for the Xcel Energy holding company system. XES 

provides a variety of administrative, management, engineering, construction, environmental and support 

services, including the company’s philanthropic division.

Xcel Energy Transmission Development Company, LLC (XETD) and Xcel Energy Southwest 

Transmission Company, LLC (XEST) are transmission-only subsidiaries that will participate in 

Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP) competitive 

bidding processes for transmission projects. Xcel Energy West Transmission Company, LLC (XEWT) is a 

transmission-only subsidiary that will competitively bid on transmission projects in the western United 

States.

Additionally, we have one non-regulated subsidiary in continuing operations, Eloigne Company, which 

invests in rental housing projects that qualify for low-income housing tax credits.

Northern States Power Company-Minnesota (NSPM)

Minnesota, North Dakota, South Dakota

Electricity and natural gas service (electricity only in South Dakota)

Christopher B. Clark, president

• Customers: 

o Electricity: 1,435,665

o Natural gas: 498,719

• Communities served: 

o Minnesota

o North Dakota

o South Dakota

Northern States Power Company-Wisconsin (NSPW)

Wisconsin, Michigan

Electricity and natural gas service

Mark E. Stoering, president 

• Customers: 

o Electricity: 254,547

o Natural gas: 111,121

• Communities served: 

7
o Wisconsin

o Michigan

Public Service Company of Colorado (PSCo)

Colorado

Electricity and natural gas service

David L. Eves, president 

• Customers: 

o Electricity: 1,413,611

o Natural gas: 1,347,459

• Communities served

o Colorado

Southwestern Public Service Company (SPS)

Texas, New Mexico

Electricity service only

David T. Hudson, president 

• Electricity customers: 386,019

• Communities served: 

o Texas

o New Mexico

8
Company Strategy

The way we produce, distribute and use energy has changed over time. And it will continue to change. 

Over the next five to 10 years, it is possible that there will be more change in the utility industry than we 

have experienced in the last half century. We believe this requires a new approach to our operations and 

how we address the challenges facing our industry.

We launched the Strategic Call to Action to prepare our workforce for increased competition within our 

markets and to help grow our business. Through this effort, we are raising awareness among employees 

for the changes underway and reinforcing our commitment to customers, communities and the many 

stakeholders we serve. Employees play an important role in our success by looking for opportunities to 

streamline their work and by making smart investments — in both assets and customer services — that 

support the company’s business objectives and help to lower costs. We continue to promote operational 

excellence, specifically seeking opportunities to use technology that improves our processes and 

workforce productivity.

To support execution of the call to action, Xcel Energy is implementing a strategic plan with four main

objectives, presented within the company as “the four pillars.” Focusing on these four objectives over the 

next several years will prepare Xcel Energy for competition and ensure the company is positioned for 

success in the changing utility landscape.

Objective Improve the performance of our utility companies

Impacts, 

challenges, 

opportunities 

and stakeholder 

interests

• Strong financial performance improves our ability to attract investors and 

favorable financing for major capital projects needed to provide customers with 

safe, reliable and clean energy service at an affordable price.

• Our goal is to earn the authorized return that each public utilities commission 

has provided us.

• To accomplish this, we will pursue new longer-term, multi-year regulatory 

compacts in our jurisdictions, and we will implement stringent cost control 

measures.

Objective Manage the workforce transition

Impacts, 

challenges, 

opportunities 

and stakeholder 

interests

• Developing the next generation workforce is critical to our continued success, 

especially since nearly half of our current workforce will be eligible to retire over 

the next 10 years.

• Managing this transition challenges us to attract, train and retain the most skilled 

and highest performing employees.

• As we assimilate new employees into our workforce, we will cultivate a culture 

that is forward thinking, team oriented and ready for competition.

• We also must leverage our skilled workforce to be more efficient and productive, 

relying on advanced technology to perform their jobs more effectively.

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Objective Give customers more options and solutions

Impacts, 

challenges, 

opportunities 

and stakeholder 

interests

• Customers and communities depend on Xcel Energy to continue providing 

reliable, affordable energy—it is a critical service.

• There also is growing customer interest in new and expanded energy solutions 

that can save money, reduce environmental impact and put more control in the 

hands of customers and communities. 

• Xcel Energy is well positioned to provide energy solutions that compete on cost 

and quality with third-party offerings but we must have a regulatory framework in 

place that enables this.

Objective Grow the business

Impacts, 

challenges, 

opportunities 

and stakeholder 

interests

• The energy grid and its reliability are a competitive advantage that cannot be 

matched cost effectively with alternative technology.

• Xcel Energy must maintain the highest service quality while making smart 

investments in our infrastructure, processes and workforce.

• Our infrastructure investments should align with the value that customers place 

on our products and services.

• Through natural gas and transmission investments, we can build on our strengths 

to create growth that improves customer energy service with minimal impact to 

rates.

• We are the energy experts and can demonstrate our knowledge and ability in 

delivering major projects on time and within budget, as well as in implementing 

advanced energy technologies.

A full description of our risk oversight and management processes is available in our 2014 10-K, along 

with a description of the risks associated with Xcel Energy’s business.

10
Stakeholder Engagement

Having a clear understanding of our stakeholders and our impact helps us set priorities and create a 

course of action to ensure a sustainable and socially responsible future. We cannot act effectively without 

considering input from many different groups. Xcel Energy’s stakeholders are those individuals and 

groups who affect or are affected by our business operations. The greater the impact, the more heavily 

we invest our time, energy and resources in the relationship. Xcel Energy engages with and responds

frequently to various groups as outlined below.

Stakeholder group Engagement Key interests Our response

Customers Customer Contact 

Center 

Business Solutions 

Center

Business account 

managers

Personal account 

representatives for 

customers in need

Customer advocate 

process

Surveys and focus 

groups

Website, newsletters 

and bill inserts

Direct mail and 

advertising

Energy expos

One-on-one meetings

Energy service start 

and stop

Service reliability and 

timely outage 

response

Electric and natural 

gas safety

Energy and money 

saving opportunities

Easy billing and online 

account management

Neighborhood 

construction or repair 

work

Renewable energy

Information privacy

Environmental 

improvement

Public safety materials, 

programs and 

advertising

Expanded energy 

saving programs and 

program goals

Low-cost or no-cost 

energy saving tips 

Community outreach 

and events to promote 

energy efficiency

Online account

management programs 

Renewable energy 

consumer programs

Clean energy strategy

Operational excellence 

initiative

Data privacy process

Employees Leadership meetings

Employee webcasts

Executive site visits 

and presentations

Bargaining unit 

negotiations and 

communications

Satisfaction, 

engagement and 

communication 

surveys

Training

Continued marketbased compensation 

and benefits

Professional 

development 

opportunities

Communication

Recognition

Employee 

engagement

Community 

involvement

Increased involvement 

in national, state and 

local energy policy and 

legislation

Total Rewards 

statement

Management 

compensation training 

My Financial Future 

planning tool

New Hire Connection 

employee orientation

Individual Performance 

and Development 

(IPAD) plans

Online professional

development resources

Tuition reimbursement

Power of Recognition 

program

Print, electronic and 

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video communications

Volunteer activities and 

paid-time-off program

United Way campaigns 

and matching gift 

program

Positive Effect 

engagement program

Business Resource 

Groups

Wellness programs

Lunch-and-learn 

seminars

Grassroots political 

informational events

Communities Project-specific 

stakeholder meetings 

and open house 

events

Community relations 

and foundation staff

Partnerships and local 

memberships

Franchise agreements

Presentations and 

speaking 

engagements

Community workshops

Sponsorships and 

community events

Volunteer projects

Public safety 

Project input and 

communication

Continued community 

support

Economic 

development and jobs

Continued community 

investment

Environmental 

leadership and support 

for local goals

Energy efficiency

Energy education

Public safety programs

Project websites, 

newsletters, mailings 

and stakeholder 

meetings

United Way campaign 

Foundation focus areas 

and grants

Employee volunteers 

and board members

Programs for customers

in need

Clean energy strategy

Power plant tours

Energy Classroom

Legislators and 

regulators*

Policy leadership

Governmental and 

regulatory staff

Regulatory 

proceedings

Reports, filings and 

informational materials

Legislative initiatives

Political action 

committees and 

grassroots political 

informational events 

with employees

Speaking

engagements

Reasonable energy 

costs

Environmental 

leadership

Emissions reductions

Responsible corporate 

governance

Productivity and cost 

reduction efforts

Clean energy strategy

Support for renewable 

energy standards

Regulated energy 

efficiency and 

conservation programs 

and goals 

Voluntary emissions

reduction initiatives

Highly rated corporate 

governance program

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Investors Website

Annual report, 10-K, 

10-Q, proxy, financial 

press releases and 

other disclosures

Annual shareholders’ 

meeting

Teleconferences

Investor meetings

Stock appreciation and 

company growth 

prospects

Dividend growth and 

total returns

Meet earnings per 

share guidance

Solid credit ratings

Financing needs

Favorable regulatory 

environment

Corporate strategy that 

includes a fair return 

on investment, utility 

business investment 

and stakeholder 

alignment

Senior management 

presentations at 

investor conferences

One-on-one meetings 

with current and 

prospective 

shareholders

Analyst Day meetings

in New York City

Participation in utility 

and retail shareholder 

organizations

*Often overlaps with community stakeholders

13
Performance Measures

Xcel Energy annually sets goals to ensure performance around strategic priorities. The table below 

includes corporate and business unit targets, 2014 results and 2015 goals, specific to our economic, 

environmental and social performance. 

Report Area 2014 Goal 2014 Performance 2015 Goal

Our Company

Meet earnings target 

range of $1.90 to 

$2.05

Ongoing diluted 

earnings per share 

were $2.03*

Meet earnings target 

range of $2.00 to $2.15 

per share 

Meet authorized 

return target of 8.84 

to 9.05 percent

Earned authorized 

return of 9.14 

percent

Meet authorized return 

target of 9.0 percent

Customers

Achieve customer 

value survey rating of 

86 percent

Achieved customer 

value rating of 87 

percent

Achieve customer 

engagement index* rating 

of 683

Achieve energy 

savings of 878 

GWh**

Achieved energy 

savings of 909 

GWh**

Achieve energy savings 

of 900 GWh**

Achieve public safety 

index rating of 100

Achieved public 

safety index rating of 

120

Achieve public safety 

index rating of 100

Managed growth of 

operating and 

maintenance 

expenses at 2.2 

percent

Managed growth of 

operating and 

maintenance 

expenses at 1.9

percent

Manage growth of 

operating and 

maintenance expenses at 

1.0 percent

Achieve SAIDI 

(System Average 

Interruption 

Duration Index) of 

97 minutes

Achieved SAIDI rate 

of 88 minutes

Achieve SAIDI rate of 94 

minutes

Achieve UOR 

(Unplanned Outage 

Rate) of 5.0

Achieved UOR of 

5.7

Achieve UOR of 4.9

Achieve 47 percent 

employee 

participation in the 

annual United Way 

campaign

Achieved 52 percent 

employee 

participation in the 

annual United Way 

campaign

Achieve 47 percent 

employee participation in 

the annual United Way 

campaign

Workforce

Achieve OSHA 

recordable incident 

rate of 1.17 or lower

Achieved OSHA 

recordable incident 

rate of 1.00

Achieve OSHA 

recordable incident rate 

of 1.00 or lower

Achieve employee 

engagement survey 

rate of 82

Achieved employee 

engagement survey 

rate of 82

Achieve employee 

engagement survey rate 

of 81

14
Environment

Achieve SO2 intensity 

of 2.83 lbs/MWh

Achieved SO2 

intensity of 2.62 

lbs/MWh

Achieve SO2 intensity of 

2.43 lbs/MWh

Achieve NOx 

intensity of 1.74 

lbs/MWh

Achieved NOx 

intensity of 1.61 

lbs/MWh

Achieve NOx intensity of 

1.57 lbs/MWh

Reduce CO2

emissions 30 percent 

from 2005 levels by 

2020

Reduced CO2

emissions 22

percent from 2005 

levels

Reduce CO2 emissions 

30 percent from 2005 

levels by 2020

Meet Colorado and 

Minnesota 

Renewable Energy 

Standard goals of 30 

percent by 2020

Estimated 

compliance with all 

state renewable 

standards and 

objectives through at 

least 2020

Meet Colorado and 

Minnesota Renewable 

Energy Standard goals of 

30 percent by 2020

*A reconciliation to GAAP earnings per share is located in Item 7 of the Form 10-K.

**Includes only results for Colorado, Minnesota and New Mexico. Total energy savings for customers in 

all states was about 982 gigawatt-hours in 2014.

15
Governance

We have developed corporate governance policies that provide a high level of disclosure and have 

implemented numerous mechanisms to ensure board effectiveness. 

Highlights

• We currently have 11 directors on our board, 10 of whom are classified as independent.

• Ben Fowke, chairman, president and CEO, is an inside director and is not considered independent. 

• To strengthen independent oversight, independent members of the board annually elect a lead 

independent director. The lead independent director is expected to serve for more than one annual 

term but for no more than four years. Richard K. Davis currently serves as the lead independent 

director. Specific responsibilities and independent oversight provided by the lead director are defined 

in Xcel Energy's Corporate Governance Guidelines.

• Xcel Energy’s Corporate Governance Guidelines are reviewed annually to ensure they are current and 

reflect company best practices, as well as generally accepted governance best practices. They were 

last reviewed in August 2014. 

• Each director is a full and equal participant in the major strategic and policy decisions of the company.

• Our board committees include:

o Operations, Nuclear, Environmental and Safety

o Governance, Compensation and Nominating

o Audit

o Finance

• All board committee members are independent directors.

• The Governance, Compensation and Nominating Committee is responsible for annually reviewing with 

the board the appropriate skills and characteristics required of board members in the context of the 

current board make-up. This assessment of the perceived needs of the board considers factors such 

as demonstrated leadership; judgment; skill; diversity; integrity; and experience with business, 

operations relevant to the energy industry, and working for or with organizations of comparable size. 

The committee also considers the interplay of each director nominee’s experience with the experience 

of other board members. Read more about the diversity of our board.

• The board and its committees each conduct an annual self-evaluation. The board periodically reviews 

and updates the evaluation questions and process to ensure they remain effective. More information 

regarding the orientation, education and evaluation processes for board members can be found in our 

Governance, Compensation and Nominating Committee charter.

• All directors are expected to adhere to our Code of Conduct, which complies with the requirements of 

the Sarbanes-Oxley Act of 2002.

• The board of directors and senior management meet frequently throughout the year to assess the 

company’s economic, social and environmental performance and to plan for the future. Board 

members receive regular presentations, reports and white papers from various business groups within 

the company at meetings throughout the year. 

• Our four operating company presidents are responsible for the social, environmental and economic 

topics relating to their respective operating companies. The board of directors is kept apprised of 

stakeholder feedback and concerns. 

• Our company’s senior leaders are responsible for identifying and managing risks, while our board of 

directors oversees and holds these leaders accountable. Our risk management process has three 

parts: identification and analysis, management and mitigation, and communication and disclosure. 

More information on the oversight of risk management processes and specific risks associated with 

our business is available in our 10-K and proxy statement.

16
• Our Audit Committee charter outlines board oversight relating to accounting and financial reporting 

processes; internal control structure of the company; integrity of financial statements; compliance with 

legal and regulatory requirements, as well as our Code of Conduct; performance of our internal and 

independent external auditors; and qualifications and independence of our independent external 

auditors. An Audit Committee report is included in our proxy statement. 

• We regularly monitor activity to ensure conflicts of interest are avoided. 

Find all of our corporate governance documents.

Read the biographies of our board of directors and our senior leadership team.

Learn more about our practices around information governance.

Board Communications

How to Contact the Board

You may contact the board of directors by email at boardofdirectors@xcelenergy.com or by regular mail 

at:

Board of Directors

c/o Corporate Secretary

414 Nicollet Mall, 5th floor

Minneapolis, MN 55401

Shareholders may propose actions for consideration at the annual meeting as outlined in our proxy 

statement. Detailed information about our corporate governance and executive compensation practices 

also is available in the proxy statement.

17
Corporate Compliance and Business Conduct

Conducting our business in an honest and ethical manner is one of our corporate values. It is the right 

thing to do and a foundation of our success. As a result, Xcel Energy has a solid reputation for good 

corporate governance. Our company’s rigorous Corporate Compliance and Business Conduct (CCBC) 

program exists to identify and manage risks and improve the awareness of an ethical business culture; it 

is a cornerstone of how we do business.

Compliance and Business Conduct Governance

The Audit Committee of our board of directors is the governing authority for compliance and business 

conduct matters. As such, it is knowledgeable about the content, processes and operation of the 

program, and exercises reasonable oversight with respect to implementation and effectiveness. While the 

Audit Committee has overall CCBC program oversight, the Governance, Compensation & Nominating 

(GCN) Committee has oversight responsibilities for corporate policies. The GCN reviews proposed 

content changes for designated corporate policies, including the Code of Conduct, and recommends 

board approval as appropriate. Our chief ethics and compliance officer has overall responsibility for our 

CCBC program and reports directly to the CEO. The CCBC Council is made up of executives from key 

business areas. It monitors the effectiveness of specific compliance programs and business conduct 

issues.

Code of Conduct

Our employees make decisions every day that impact other employees, customers, the community, 

shareholders, business partners and government decision makers. The Code of Conduct provides 

employees with the knowledge they need to make sound business decisions that meet or exceed our 

ethical and legal standards. For example, we abide by anti-corruption laws, including the Foreign Corrupt 

Practices Act, which is a topic in our Code of Conduct. 

Communications and Training

Regular, consistent communication to employees about company values, the Code of Conduct, other 

policies and training requirements is a high priority at Xcel Energy. We use a variety of techniques to 

reach employees who have regular computer access and those who do not.

Code of Conduct training is one component of our annual CCBC training plan. Code of Conduct training 

is required within 30 days of being hired and annually thereafter. Courses are identified for the annual 

training plan based on policies, regulations, key issues and our three-year rotating training cycle. The 

goal is 100 percent training completion by due dates. Employees are responsible for knowing and 

following not only our Code of Conduct, but all corporate policies and applicable laws and regulations.

Investigations and Resolving Conflicts

We encourage employees to discuss issues with their leaders. Numerous other reporting options also are 

available, including Xcel Energy’s new enterprise investigations system, EthicsPoint. The system will be 

used by all areas that have responsibility for tracking, monitoring and reporting activities related to 

investigations for allegations of wrongdoing. EthicsPoint provides an enhanced web tool for reporting 

allegations, the ability for employees to ask questions about company policies, and improved data 

analytics for identifying patterns and trends. Anonymous reports are accepted. Every issue reported is 

investigated, and as necessary, appropriate responsive action is taken. Actions can range from 

communicating key messages to discipline to termination. The company strictly prohibits any retaliation 

18
against an employee who, in good faith, reports a violation or suspected violation of the Code of Conduct 

or company policy.

Performance and Trends

Employees are invited annually to respond to five specific statements regarding the effectiveness of our 

CCBC program. Favorable results have been reported for the last eight years. These results demonstrate 

that a culture of compliance and ethics is embraced at Xcel Energy.

2014 CCBC Employee Survey Results

Agree

I know what is expected of me 100%

I believe I would be protected from 

retaliation

94%

My manager would never ask me to do 

something unethical

98%

I am familiar with the company’s vision, 

mission and values

100%

Company leaders use our vision, mission 

and values to guide the company

90%

19
Customer Data Privacy 

We take seriously our responsibility to protect company information and the information we collect in the 

course of our business. This includes personal information about our customers, employees, contractors, 

shareholders and other individuals, as well as the confidential information of companies that do business 

with us. Our corporate policies around data privacy, confidentiality and security are designed to maintain 

the trust of the individuals and organizations who give us information. The focus of our Information 

Governance program includes ongoing accountability for data privacy, confidentiality and security. 

Xcel Energy operates in a highly regulated industry that requires the continued operation of sophisticated 

information technology systems and network infrastructure. In addition, in the ordinary course of 

business, we use our systems and infrastructure to create, collect, use, disclose, store, dispose of and 

otherwise process sensitive information, including company data, customer energy usage data and 

personal information regarding customers, employees and their dependents, contractors, shareholders 

and other individuals.

We have developed and implemented a written program that is designed to detect, prevent and mitigate 

identity theft in connection with opening or maintaining customer accounts. Our program identifies the 

patterns and activities that indicate potential identity theft fraud pertinent to activity on our customer 

accounts, describes our methods for detecting and responding to such patterns and activities, and 

implements a mechanism to periodically review and administer our program.

Since 2011, we have engaged a diverse internal team in the preparation and drilling of an action plan for 

managing a potential data security breach. Being prepared positions us to respond quickly and effectively 

to data security incidents, and hopefully, mitigates any resulting impact on affected individuals and our 

brand.

To date, we have not experienced any significant breach of customers’ sensitive personal or financial 

information. However, we did experience an event in 2013 that demonstrated our focus on protecting 

customer information. The event was caused by a printing error that resulted in one day’s worth of printed 

bill statements for 16,000 Minnesota and North Dakota customers inadvertently including another 

customer’s name, address, account and meter number, energy used and amount owed. We took 

appropriate steps to mitigate potential fraud by contacting affected residential customers and changing 

their customer account numbers unless they requested we not do so. We also offered affected business 

customers the option of establishing new account numbers. 

We continue to be active and take a lead role in the national discussion around data privacy, 

confidentiality and security. We regularly speak on these issues in a number of forums, including public 

meetings related to the U.S. Department of Energy’s initiative to develop a voluntary code of conduct for 

customer energy usage data (CEUD). In addition, we continue to be an active participant in state 

regulatory commission proceedings involving customer privacy in Colorado, Michigan and Minnesota. 

Some of our customers have expressed concerns about privacy and health risks that they fear may be 

associated with the use of smart meters or the smart grid. We believe that it is important to provide our 

customers with information about their energy usage and the metering technology deployed in our service 

territory. For this reason, we have information on our company website to help address these types of 

questions. Our customer communications have been recognized as leading examples of transparency 

and customer education for CEUD by noted privacy experts (see Privacy by Design white paper).

20
We continue to bolster our data privacy, confidentiality and security awareness efforts in several ways, 

including: 

• maintaining transparent and informative customer-facing and internal privacy policies and 

communications

• updating internal information governance controls and training materials 

• providing guidance for our customers on identity theft protection

Read our Privacy Policy and learn more about how Xcel Energy manages privacy, confidentiality and 

security of customer data.

21
Financial Performance

For the tenth consecutive year, we have met or exceeded our earnings guidance. For the first time ever, 

we realized $1 billion in net income, and our market capitalization was more than $19 billion. Ongoing 

earnings in 2014 increased as a result of higher electric and natural gas margins due to rate increases in 

various jurisdictions, weather-normalized sales growth and lower interest charges. These positive factors 

were partially offset by the unfavorable impact of milder weather, as well as higher expected operating 

and maintenance expenses, property taxes and depreciation. 

In 2014, total return for our investors was nearly 34 percent, with a dividend increase of 7 percent. Our 

ongoing earnings have grown approximately 6.5 percent and our dividend has grown approximately 3.8 

percent annually from 2005 through 2014. Going forward, we plan to deliver long-term annual earnings 

growth of 4 to 6 percent and annual dividend increases of 5 to 7 percent in order to offer an attractive total 

return for our shareholders. Our earnings guidance for 2015 is $2.00 to $2.15 per share. 

Read more about our corporate strategy and priorities.

See how we plan to invest $14.5 billion in capital expenditures through 2019.

Financial Summary for 2014

Earnings $1.0 billion

*Earnings per diluted share $2.03

*Ongoing diluted earnings per share $2.03

Economic Value Generated

Total revenues $11.7 billion

Electric utility revenues $9.5 billion

Natural gas revenues $2.1 billion

Other operating revenues $78 million

Economic Value Distributed

Electric fuel and purchased power costs $4.2 billion

Cost of natural gas sold and transported $1.4 billion

Employee compensation, including wages and 

benefits

$1.8 billion

Total corporate giving $45 million

Interest charges and financing costs $528 million

Common stock dividends $561 million

Sales, use and property taxes $784.8 million

Franchise fees $180 million

Please see our 2014 10-K for detailed financial statements.

*A reconciliation to GAAP earnings per share is located in Item 7 of the Form 10-K.

22
About this Report

Reporting Period: Jan. 1, 2014 – Dec. 31, 2014 

Date of Previous Report: May 2013

Reporting Cycle: Annual

Report Boundary: Xcel Energy and its four utility subsidiaries

Contact Point: corporateresponsibility@xcelenergy.com

Xcel Energy’s Corporate Responsibility Report covers the company’s economic, environmental and social 

performance. We report on key initiatives and performance indicators important to stakeholders and Xcel 

Energy as we continue to provide high quality energy service and meet the challenges of a changing 

energy marketplace.

This year marks the tenth year we have been reporting. Our first Corporate Responsibility Report 

(formerly known as the Triple Bottom Line report) was published in April 2005, with the contents covering 

the 2004 calendar year, and we have published a similar report in each following year. In 2012, we began 

publishing the full report online. We believe the online format is convenient to use and provides easier 

access to information for our stakeholders. Throughout the report, we provide links to data and 

information published in our other corporate reports, such as the Form 10-K and the proxy statement. To 

promote the full report and encourage our stakeholders to access it online, we have produced a much 

shorter overview publication to distribute at our annual shareholders’ meeting and other events. 

As a regulated, public utility we interact with stakeholders on a daily basis through the dozens of requests 

and reports we file with our public utilities commissions; through our ongoing interactions with customers, 

both business and residential; and through regular meetings and contacts with investors, community 

leaders, elected officials and others. Having a clear understanding of our stakeholders and our impact 

helps us set priorities and create a course of action to ensure a sustainable and socially responsible 

future. We cannot act effectively without considering input.

For the purposes of this report, our stakeholders are those individuals and groups who affect or are 

affected by our business operations. We have divided these stakeholders into five categories:

• Customers

• Employees

• Communities

• Legislators and Regulators

• Investors

Xcel Energy continues to base its Corporate Responsibility Report on Global Reporting Initiative (GRI) 

guidelines, which we have used since 2008. This year we have used GRI’s G4 guidelines and the Electric 

Utilities sector specific supplement as the framework for the report. We have tried to meet the intent and 

follow the G4 guidelines as closely as possible; however, there are instances where we track the 

information for disclosure differently or not at all, based on our company or stakeholder information 

needs. We have noted these items in the GRI index that accompanies our report. 

Materiality Assessment

Consistent with GRI’s G4 guidelines, we conducted our first materiality assessment for the report in early 

2015. For our Corporate Responsibility Report, material issues are associated with Xcel Energy’s 

potential impact on environmental, social and local economic matters that are important to Xcel Energy 

and its stakeholders. Material issues in this context are different from those related to investment 

decisions.

23
Xcel Energy’s materiality assessment for this report was done in a limited manner because it was the 

company’s first and was done for experience and learning purposes. We developed a questionnaire to 

ask stakeholders about their interests in 23 important sustainability or corporate social responsibility 

related issues. The issues were chosen based on the work of the Electric Power Research Institute’s

Energy Sustainability Interest Group, of which Xcel Energy is a member, and also our own experience 

and interactions with stakeholders.

Company departments that maintain relationships with different stakeholder groups distributed the 

questionnaire. We had 97 stakeholders from throughout Xcel Energy service territories complete 

questionnaires and results were weighted to reflect the customer base of our states.

After the stakeholder results were compiled, we compared stakeholder interests to the interests of Xcel 

Energy and our strategic plan and objectives. Overall, the results confirmed that there is alignment among 

stakeholders and Xcel Energy when it comes to the issues that are most important for the future.

24
Through our strategic plan and objectives, as well as other corporate priorities, Xcel Energy is focused on 

those issues that stakeholders rated most highly, including:

• Energy reliability

• Public health and safety

• Public policy engagement and collaboration

• Renewable and advanced clean energy technologies

• Employee safety and health

• Greenhouse gas emissions

• Cybersecurity, physical security and data protection

• Customer engagement and satisfaction

• Economic viability of the utility

• Community support and economic development

• Energy affordability

The results have helped inform our business and have been used to improve the focus and quality of this 

report.

2014 Materiality Assessment Results

Learn more about Xcel Energy’s materiality assessment in the GRI Index online.

25
Earning Customer Loyalty

At Xcel Energy, we are committed to giving customers the choices they want and delivering a positive 

experience each time our customers engage with us. We recognize that customer expectations are 

growing, and it is our goal to provide innovative solutions that build a loyal and satisfied customer base. 

Xcel Energy has been a leader in energy efficiency and conservation programs for more than two

decades. We continue to expand our portfolio of renewable energy sources while developing new 

programs that give customers more control over the type of energy they use, as well as how they manage 

it. Our “Moments that Matter” customer experience initiative focuses on the four key opportunities we 

have to engage positively with customers: when they start their service, when they pay their bill, when 

they experience an outage and as they seek new ways to manage their energy. Of course, safety is a top 

priority. Above all else, we want customers who use our service and the people who live, work or gather 

near our facilities to be aware of possible hazards and to respond safely to them.

Highlights:

• Overall 94 percent of customers surveyed are satisfied with Xcel Energy. Our commitment to 

customers is validated through positive feedback in areas such as showing concern for safety,

supporting renewable energy sources, providing reliable electricity service and being a good 

corporate citizen.

• Through one of the most extensive energy efficiency portfolios in the country, Xcel Energy offers 

residential and business customers nearly 100 programs to help manage their electricity use and 

nearly 50 programs for managing natural gas. In 2014, our customers saved 982 gigawatt-hours

of electricity—enough to power more than 121,000 average-sized homes for a year—and 1.7 

million dekatherms of natural gas—enough to fuel more than 20,000 homes for a year.

• In early 2014, Xcel Energy customers victimized by scams spiked, prompting us to launch an 

awareness campaign and make technology changes to help protect customers. By the end of the 

year, the number of customers impacted by scams was down 60 percent.

• Our Minnesota customers now have a choice of two solar energy programs, Solar*Rewards® and 

Solar*Rewards® Community®

, both are similar to solar programs Xcel Energy also offers in other

states. Through year-end 2014, Solar*Rewards had contributed about $357 million in incentives to 

help more than 25,500 customers in Colorado, New Mexico and Minnesota install solar panels.

• We have improved our response time to potential natural gas emergencies by more than 40 

percent—measured from the time we receive the call to when we arrive on location.

26
Customer Numbers

Electricity Customers (as of year-end 2014)

Residential Large 

Commercial 

& Industrial

Small 

Commercial 

& Industrial

Public 

Authority & 

Other

Wholesale Total

NSPM 1,274,182 466 153,988 7,015 14 1,435,665

Minnesota 1,117,871 429 130,422 6,249 14 1,254,985

North Dakota 79,206 18 12,475 342 -- 92,041

South Dakota 77,105 19 11,091 424 -- 88,639

NSPW 214,350 114 38,939 1,144 -- 254,547

Wisconsin 206,651 112 37,673 1,098 -- 245,534

Michigan 7,699 2 1,266 46 -- 9,013

PSCo

(All Colorado)

1,202,621 334 156,809 53,824 23 1,413,611

SPS 302,922 214 76,553 6,323 7 386,019

Texas 208,826 151 53,904 4,590 3 267,474

New Mexico 94,096 63 22,649 1,733 4 118,545

Total 2,994,075 1,128 426,289 68,306 44 3,489,842

Natural Gas Customers (as of year-end 2014)

Residential Commercial & 

Industrial

Transportation & 

Other

Total

NSPM 456,191 42,504 24 498,719

Minnesota 411,622 34,724 23 446,369

North Dakota 44,569 7,780 1 52,350

NSPW 98,325 12,773 23 111,121

Wisconsin 93,265 12,114 23 105,402

Michigan 5,060 659 -- 5,719

PSCo

(All Colorado)

1,240,674 100,238 6,547 1,347,459

Total 1,795,190 155,515 6,594 1,957,299

27
Customer Solutions

As customers become increasingly interested in making energy choices that meet their individual needs 

and preferences, Xcel Energy is providing solutions. Our diverse and innovative programs include more 

convenient payment options, rebates for energy efficient upgrades and the chance to make a difference 

by choosing renewable energy. In addition, we are working to meet the fueling needs of customers who 

choose to drive electric and natural gas vehicles. Customers are taking advantage of Xcel Energy’s

solutions in large numbers, and have expressed strong satisfaction with their ability to select programs

and make their own energy decisions.

Energy Efficiency Programs

Xcel Energy has developed a broad portfolio of energy efficiency offerings so all customers have an 

opportunity to participate. From rebate programs to energy audits to recycling services, our awardwinning programs provide solutions that our customers value. Not only can customers save money by 

improving efficiency, these projects also help the environment.

We have been a leader in energy efficiency and conservation since the 1990s, and currently offer nearly 

150 electric and gas programs for residential and business customers. Our Xcel Energy website helps

customers learn more about the many program choices and rebates available to them. Our goal is to 

make it as easy as possible for customers to access our programs and understand the benefits of energy 

efficiency.

In 2014, Xcel Energy provided more than $86 million in rebates to residential and business customers. In 

total, our programs had nearly 2.8 million electricity and 886,000 natural gas participants―some of our 

customers participate in multiple programs. 

Xcel Energy is always evaluating emerging technologies and program models to develop products that 

benefit different customer groups. An important part of the process is considering what our customers and 

communities want and value. Xcel Energy assesses its demand side management product offerings 

based on several criteria in addition to cost effectiveness. We seek to ensure:

• Value to all stakeholders

• Options for all customers groups

• Control over costs and customer rate impacts

• Balance between energy and demand savings

• Products that provide long-term energy and demand savings to meet future customer needs

Our energy efficiency programs were nationally recognized in 2014. The U.S. Green Building Council 

(USGBC) staff and board of directors selected Xcel Energy as the Best Energy Service Provider/Utility in 

the nation, as part of the organization’s Best of Building Awards that recognize the year’s best green 

products, projects, organizations and individuals making an impact in green building. E Source ranked 

Xcel Energy’s Colorado Energy Design Assistance program in its Top Technologies and Trends of 2014.

The program successfully improved the energy efficiency of commercial new construction projects by 

developing a unique tracking system to improve the program and allow more customers to participate. In 

addition, the USGBC Colorado recognized 12 Xcel Energy customers for their exemplary building 

projects at the Colorado Green Commercial Real Estate awards. Of the 17 projects nominated, 12 

28
participated in Xcel Energy’s energy efficiency programs, helping them maximize efficiency and earn a 

nomination.

See the details of our energy efficiency program results for 2014.

Energy Efficiency Open Houses and Customer Awards

We recognized 12 businesses in Colorado and six businesses in Minnesota for their individual efforts to 

save energy through our 2014 energy efficiency programs. These companies collectively saved more 

than 63 million kilowatt-hours of electricity and more than 1.3 million therms of natural gas. Awards were 

presented at our energy efficiency open houses in Denver and St. Paul. More than 400 business 

customers attended the Denver event, and more than 600 business customers attended the St. Paul 

expo. These events featured teams of experts from Xcel Energy and outside organizations, providing 

participants with energy saving ideas and rebate opportunities, as well as information on energy efficiency 

study funding. The St. Paul event included a technology showcase to educate customers on available 

options, including the latest lighting and variable frequency drive and controls equipment.

State-by-state Overview and Performance

Upper Midwest

Minnesota

Residential Programs Program offerings range from prescriptive rebates to in-home services providing 

energy efficient materials and installation labor. Consumer education is included 

with most of the residential programs to increase conservation awareness and 

to encourage energy-wise choices and behavior in the home. 

In 2014, the residential electric efficiency products in Minnesota exceeded our 

participation and savings goals. The Home Lighting program was the leading 

performer among the electric programs, exceeding its energy savings goal by 

approximately 25 gigawatt-hours. The program experienced continued strong 

customer response to promotions and event marketing. The Residential 

Cooling, Energy Feedback and Refrigerator Recycling also contributed 

significant electric savings. The ENERGY STAR Homes® program more than 

doubled its electric savings in 2014, due in large part to combining efforts with 

CenterPoint Energy’s new ENERGY STAR Homes gas program.

Nearly all the residential natural gas programs exceeded our energy savings 

goals primarily because of high—and in some cases unprecedented—

participation levels, including strong contributions from Heating System Rebate, 

Energy Feedback, ENERGY STAR Homes and Energy Efficient Showerheads 

programs.

Business Programs The business segment includes electric and natural gas commercial, industrial 

and small business customers. We offer a variety of programs that encourage 

business customers to save energy, lower their energy bills and/or peak 

demand and minimize environmental impacts. These include: 

• Demand response programs that help lower customers’ electricity use

during peak periods in exchange for lower rates or energy bill discounts

• Equipment rebate programs that lower the upfront cost for customers to 

purchase and install energy efficient equipment or process improvements

29
• Studies and audits that help customers identify, plan, prioritize and 

implement their efficiency and conservation efforts

• Holistic programs that combine awareness, study funding and equipment 

rebates within a single offering. These encourage long-term energy planning 

to help customers analyze, track and implement efficiency plans rather than 

ad-hoc efficiency projects

• Business education, advertising and promotional efforts that increase 

awareness of energy use and conservation options, which drive behavioral 

changes and lead to future participation in our programs

Electric efficiency and conservation programs for businesses showed strong 

results in 2014. Overall, the gas portfolio performance was strong due to a 

number of very large project completions that had been in the works for several 

years. Business New Construction had another outstanding year, bringing in 

more than 56 gigawatt-hours of savings—the culmination of focused efforts over 

the past few years, return of a healthy economy within the region and increased 

interest in green building certifications and practices. Growth in this market is 

expected to continue. The Lighting Efficiency and Process Efficiency programs 

produced more than 117 gigawatt-hours of energy savings. The holistic 

approach of Process Efficiency in particular encourages the development of 

targeted savings plans to encourage customers toward deeper and sustained 

efficiency improvements.

Trade and community groups continue to engage in efficiency projects. We 

provide the tools and resources they need to advocate for energy efficiency. 

Through these partnerships, we are able to expand our reach, generate 

awareness and increase participation in our efficiency programs.

Low-Income Programs The low-income segment includes the Home Energy Savings program (HESP), 

Multi-Family Energy Savings program (MESP) and Low-Income Home Energy 

Squad program. These services and products help income-qualified customers 

reduce their energy use and ultimately lower their bills. HESP offers customers 

a home energy use analysis to identify areas for energy savings and free energy 

efficiency upgrades. MESP provides electric energy efficiency measures and 

information to customers in multi-family buildings. The Low-Income Home 

Energy Squad program performs a quick assessment of each participant’s home 

and implements energy saving measures during one visit.

In its second year, MESP continued to show strong performance in 2014 due to 

high participation numbers in large complexes combined with strong interest 

from property management organizations.

South Dakota

Residential and 

Business Programs

Xcel Energy’s energy efficiency portfolio for South Dakota customers is a mix of

electric programs designed to encourage our residential and business 

customers to save energy and lower their energy bills in a variety of ways. For 

businesses, we offer Lighting Efficiency Rebates as well as load management 

programs to help reduce peak demand. For residential customers, we offer 

Ground Source Heat Pump Rebates, discounted CFL and LED bulbs through 

30
our Home Lighting program and educational outreach programs. 2014 was our 

third year with active programs in South Dakota, and we continue to work with 

customers and trade partners to promote energy efficiency.

North Dakota

Residential and 

Business Programs

Xcel Energy provides savings opportunities for North Dakota customers through 

our load management programs, as well as gas education, energy audit and 

rebate programs.

Wisconsin

Residential and 

Business Programs

Xcel Energy participates in a statewide program called Focus on Energy that 

provides incentives to eligible Wisconsin residents and businesses for installing 

cost-effective energy efficiency and renewable energy projects. 

Xcel Energy retains a portion of the approved annual funding for our voluntary 

customer programs and to promote the Focus on Energy programs. The 

retained dollars also fund general conservation activities, advertising and energy 

efficiency education for residential customers, commercial customers and trade 

allies in our service territory.

Michigan

Residential and 

Business Programs

In Michigan, Xcel Energy participates in a statewide program called Efficiency 

United that educates residential and commercial customers about energy 

efficiency and offers cost-effective solutions and rebates for reducing energy 

use. Michigan does not allow Xcel Energy to retain any of the funding dollars for 

internal programs.

Colorado

Residential Programs Xcel Energy’s residential energy efficiency programs focus on cost-effective, 

direct impact products that target household appliances and lighting. This effort 

is supplemented with educational services intended to further increase customer 

understanding and interest in conservation and energy efficiency. 

In 2014, the products in our residential programs performed very well, with the 

following electric and gas products exceeding their targets: ENERGY STAR®

New Homes, High Efficiency Air Conditioning, Home Lighting & Recycling, 

Home Performance with ENERGY STAR, Refrigerator Recycling, School 

Education Kits and Water Heating. In addition, 1.5 percent of total residential 

natural gas rebates paid were attributed to Colorado Flood Victim Rebates—

primarily through higher rebates for homeowners who rebuilt with high efficiency 

furnaces and water heaters.

Business Programs Energy efficiency sales to business customers are achieved through Xcel 

Energy’s account managers and Business Solutions Center, end-use equipment 

vendors and energy service companies. Our business program—for commercial 

and industrial customers of all sizes—offers a broad portfolio of demand side 

management products designed to meet the needs of this varied segment. The 

portfolio has three primary components: 

• Prescriptive products focus on the most common equipment 

• Custom products encourage savings from unique situations, often involving 

newer technologies or measures

• Study and educational products help customers identify energy efficiency 

31
opportunities

In 2014, the performance of the electric products in Xcel Energy’s business 

program exceeded target—at 127 percent of anticipated net generator kilowatthours. Lighting Efficiency was the largest contributor to business program 

achievements, as anticipated, followed by New Construction and Process 

Efficiency products due to economic improvements. In addition, Computer 

Efficiency, Data Centers and Compressed Air exceeded their electric savings 

targets due to improvements in the economy and increased activity with trade 

partners and manufacturers. 

The performance of our natural gas products in the business program exceeded 

the anticipated savings target by 45 percent in 2014. These achievements—

aided by more construction growth due to improved economic conditions—

resulted in higher participation and savings in our New Construction, Custom 

Efficiency and Energy Management Systems programs.

Low-income Programs The primary objective of low-income programs is to reduce energy use in homes 

of low-income customers, thereby helping to reduce bills.

The low-income program consists of the Single-Family Weatherization, MultiFamily Weatherization, Energy Savings Kit and Non-Profit Energy Efficiency 

programs. The programs analyze the natural gas and electric use of low-income 

customers and provide products, services and information to help them lower 

energy bills.

In 2014, the main driver in the electric and gas low-income portfolio was our

Multi-Family Weatherization program, which exceeded its anticipated 

performance due to higher than expected participation. 

Southwest

New Mexico

Xcel Energy offers a broad portfolio of programs to meet the needs of business, 

residential and low-income customers in our eastern New Mexico service 

territory. In 2014, our expanded program offerings saw strong performance and 

surpassed the annual goal. In our residential portfolio, the Home Lighting and 

Residential and Low-Income Home Energy Services programs far exceeded 

their goals. On the business side the Cooling and Motors & Drives programs

were the strongest contributors toward the portfolio success.

Texas

We offer our Texas customers energy efficiency programs through third-party 

standard and custom contracts. These programs are provided to residential, 

low-income, small commercial, and commercial and industrial customers

32
Windsource®

Through our Windsource program, launched in 1998, we were an early adopter of wind energy. 

Windsource is a voluntary green energy program that gives customers the option to purchase more 

renewable energy, above what is provided in our standard energy supply.

Customers can purchase as little as one 100-kilowatt-hour block of renewable energy or opt to have 100 

percent of their electricity consumption provided through Windsource. The Green-e Energy Program 

certifies that Windsource meets the environmental and consumer protection standards established by the 

nonprofit Center for Resource Solutions. Xcel Energy offers the program in five states: Colorado, 

Michigan, Minnesota, New Mexico and Wisconsin. In 2014, Windsource was ranked the third largest 

voluntary green energy program in the United States based upon customer participation, according to the 

National Renewable Energy Laboratory. The number of customers who participated in Windsource in 

2014 grew by about 15 percent compared to 2013.

Through Windsource, we sponsor the KidWind project, a nonprofit dedicated to equipping inquisitive 

learners and educators with renewable energy resources for the classroom and beyond. In 2014, our 

Windsource program contributed $7,500 to enable five teachers from our service territories to attend the 

organization’s REcharge Academy, a four-day educator workshop on renewable energy. This opportunity 

helps local educators prepare our youth for the growing clean energy economy.

2014 Windsource Results

Customers

Residential Commercial & 

Industrial

Total MWh

NSPM 

(Minnesota)

39,003 268 39,271 173,837

NSPW 

(Wisconsin & 

Michigan)

4,778 55 4,833 12,126

PSCo 

(Colorado)

40,124 762 40,886 187,544

SPS (New 

Mexico)

818 90 908 3,973

TOTAL 84,723 1,175 85,898 377,480

33
Solar*Rewards®

Through Solar*Rewards, we offer customers in Colorado, Minnesota and New Mexico incentives to install 

solar panels on their homes and businesses. By the end of 2014, Xcel Energy had paid about $357 

million in incentives to help customers install more than 25,500 photovoltaic (PV) systems, with a capacity 

of about 255 megawatts-DC.

Solar*Rewards Results 

State (year 

program launched)

2014 Total

Systems Capacity (MW-DC) Systems Capacity (MW-DC)

Colorado (2006) 6,242 46.70 24,516 234.8

Minnesota (2010) 277 4.35 957 12.2

New Mexico (2009) 14 0.09 129 7.84

Total 6,533 51.14 25,602 254.84

Colorado

The state’s Renewable Energy Standard and the Public Utilities Commission determine annually the 

capacity and incentives available under Solar*Rewards in Colorado. Solar*Rewards currently supports 

the installation of systems at several program levels—small systems up to 25 kilowatts and medium 

systems between 25.1 to 500 kilowatts. In the past, the program also has issued requests for proposals to 

support large systems over 500 kilowatts. The largest systems installed under Solar*Rewards are located 

at Denver International Airport (four systems, 10 MW-DC), Colorado State University (two systems, 15.9 

MW-DC) and Fort Carson Army Base (four systems, 15.9 MW-DC).

In 2014, the Colorado Public Utilities Commission approved an agreement between Xcel Energy, the 

solar industry and others that allows Solar*Rewards to acquire up to 24 megawatts of solar energy from 

small installations and up to 12 megawatts from medium installations each year in 2015 and 2016.

Minnesota

In August 2014, Xcel Energy launched a new, redesigned and enhanced Solar*Rewards program for 

Minnesota customers. The redesign of Solar*Rewards encourages greater participation and seeks to 

maximize the energy that solar projects produce by offering production-based incentives. Customers who

install up to 20-kilowatt photovoltaic installations on their properties receive incentives based on the 

amount of energy their systems generate, encouraging them to install and maintain efficient systems. 

Solar*Rewards in Minnesota will be funded annually for five years with $5 million from the Renewable 

Development Fund. This annual funding level is projected to support about 4.6 megawatts of solar energy 

capacity.

In addition to Solar*Rewards, the state also supports a Made in Minnesota program with a budget of $15 

million that the Department of Commerce (DOC) administers. Solar energy systems up to 40 kilowatts

must incorporate components that meet Made in Minnesota requirements to be eligible for productionbased incentives. Xcel Energy supports the Made in Minnesota program by interconnecting the systems 

and by providing production data for DOC to pay annual incentives.

34
New Mexico

All Xcel Energy electricity customers in New Mexico are eligible to participate in Solar*Rewards as long 

as system equipment meets program requirements. Solar*Rewards supports the installation of systems at 

three program levels—small systems from 0.5 to 10 kilowatts, medium systems between 10.1 to 100 

kilowatts and large systems from 100.1 kilowatts to 2 megawatts. The largest systems installed under 

Solar*Rewards belong to Haley Farms (350 kW-DC), RMS Foods (two systems, 199.68 kW-DC) and the 

City of Roswell (26 systems, 2.48 MW-DC).

Find information about Renewable Energy Credits or RECs.

Learn more about Xcel Energy’s position on solar policy issues in 2014.

Community Solar Gardens

Xcel Energy’s Solar*Rewards®Community® program gives customers in Colorado and Minnesota an 

option to invest in solar energy even if they cannot or do not want to install their own panels.

Under the program, solar developers apply to Xcel Energy to build and operate solar gardens, which are 

community-based, shared solar installations connected to the grid. Garden developers offer Xcel Energy 

customers various options to subscribe, lease or purchase a share of the garden’s energy. Participating 

customers receive credits on their Xcel Energy electricity bills for their portion of energy that the solar 

garden produces.

Colorado

Xcel Energy launched Solar*Rewards Community in Colorado in 2012, after the state became one of the 

first to approve the solar garden concept in 2010. The company to date has approved applications to 

install 25 solar gardens with a total capacity of about 18 megawatts. In 2014, the Colorado Public Utilities 

Commission approved an agreement between Xcel Energy, the solar industry and others that allows 

Solar*Rewards Community to acquire up to 30 megawatts of new solar garden capacity each year in

2015 and 2016. We plan to issue requests for proposals to fulfill this new requirement. 

Solar*Rewards Community Colorado Results (as of 3/23/15)

Completed Under Development

Approved Gardens 14 11

Garden Capacity 9.6 MW-DC 8.5 MW-DC

Subscribers 532 n/a

Subscribed 

Capacity 9.3 MW-DC n/a

Minnesota

Xcel Energy began accepting applications from garden developers in December 2014 for Solar*Rewards 

Community in Minnesota. The response has been tremendous with developers submitting applications for 

more than five times the number of garden projects anticipated. As of April 2015, we had received 

applications for 502 garden projects totaling about 560 megawatts-AC of power. All applications undergo 

an evaluation to ensure they meet program requirements, as well as an engineering review, prior to 

approval.

35
Under the program so far we have advanced applications totaling about 80 megawatts-AC. These 

applications are for projects that currently meet the state requirement which limits garden size to one 

megawatt or less. We plan to work with developers who proposed larger projects to scale them down to 

one megawatt. Approximately 95 percent of the garden applications received to date are for gardens of 

more than one megawatt. 

We are poised to have one of the largest solar garden programs in the nation, with the first gardens 

expected to be online in 2015.

 

Find information about Renewable Energy Credits or RECs.

Learn more about Xcel Energy’s work on solar policy issues in 2014.

Repowering Transportation

In Xcel Energy’s service territory the market for electric and natural gas vehicles remains in the initial 

growth stages. Less than 1 percent of our customers currently own these vehicles, but according to 

information from the Electric Power Research Institute, two of the states Xcel Energy serves are leading 

the country in electric vehicle growth. Colorado is ranked eighth in the nation for electric car sales and 

Minnesota has one of the highest adoption rates for electric vehicles per capita. The market is projected 

to grow, especially as new models of alternative fuel vehicles become more available and more 

affordable for both individual and fleet use. Plus, fueling is becoming increasingly easier and more 

accessible.

As an energy provider, Xcel Energy has the unique opportunity to support customers and communities 

that want to participate in this vehicle market. We offer the safe, clean, reliable energy to fuel electric and 

natural gas vehicles at an affordable price.

Xcel Energy has developed three areas of focus for supporting alternatively fueled vehicles:

• Enable the market by supporting customers who choose to repower their transportation

• Get the rules right by engaging stakeholders to develop policy and regulations that support the 

market in a way that is equitable and fair to all customers

• Manage system impacts by providing reliable and safe energy to fuel vehicles at an affordable 

cost to customers

Supporting Customers

Along with specific Xcel Energy initiatives that support customer vehicle fueling and public education, we 

encourage customers to contact us to ensure that adequate system infrastructure is in place to support 

their fueling needs.

• Across all service territories, we work with auto manufacturers and station developers to build public 

fueling stations for both electric and natural gas vehicles. In 2014, we supported the installation of 

more than 10 new public fueling stations, plus provided electricity and natural gas to thousands of 

drivers that fuel at home or in their fleet parking lots. 

• In early 2015, we filed a request with the Minnesota Public Utilities Commission to offer customers in 

the state a new electric vehicle (EV) rate, in addition to the time-of-day rate that we already offer 

customers in the Upper Midwest. Under the EV rate, customers use a separate meter for EV charging 

and are encouraged to shift their charging times to evening. Customers can save about 40 percent on 

their energy costs by charging their EVs off-peak in the late evening or early morning.

36
• In Colorado, we completed a two-year electric vehicle charging pilot that studied customer charging 

behaviors and acceptance of demand response. Xcel Energy worked with a limited number of 

customers to minimize load on the electric grid during peak hours. Participating vehicle owners had 

the opportunity to earn credit on their Xcel Energy bills in exchange for allowing us to interrupt their 

vehicle charging for a limited number of hours throughout the year. The final analysis of the pilot was 

completed in May 2015.

• Xcel Energy markets Windsource® for EVs specifically to electric vehicle owners who want a 

renewable fueling option. Currently, about two-thirds of our customers who drive EVs participate in 

one of Xcel Energy’s renewable energy programs, including Windsource. In Minnesota, we 

collaborated with community partners and customers to promote the Zero Emissions Challenge, a 

Windsource offset for public charging stations.

• Xcel Energy hosted booths and participated in several public education and outreach events to 

provide customers with information, including Drive Electric Week events in Colorado and Minnesota 

and the Twin Cities and Denver Auto Shows.

• Some Xcel Energy employees now drive electric vehicles to and from work. Under a pilot program, 

employees have the option to charge electric vehicles at Xcel Energy facilities for a reasonable 

monthly fee that covers electricity and administrative costs. 

Policy Development

Xcel Energy continues to work with stakeholders to help develop state policy and regulations that support 

the market and customers who purchase electric and natural gas vehicles. It is important that new rules 

are fair to all customers—both those who own vehicles and those who do not. To make it easier for third 

parties to install fueling stations in Colorado, we changed our policies to include a special tariff and 

construction allowance.

System Readiness

We have conducted several studies of our electric and natural gas systems to verify that we can manage 

the increased load as customers begin using our energy to fuel vehicles. To make it easier for third 

parties to install natural gas fueling stations, we work individually with developers to help find ideal 

locations based on preferred gas pressure, vehicle traffic and fleet needs. To stay informed about electric 

vehicle purchases and system needs, we participate in the Electric Vehicle Information Exchange (EVIX) 

that helps us track vehicle sales throughout our service territory. We also receive monthly vehicle sales 

reports from auto manufacturers. Additionally, the electric vehicle charging pilot in Colorado, the use of 

electric vehicles in our fleet and market research continue to inform the company’s strategy for the future.

Learn more about how we’re helping to repower transportation.

37
Customer Engagement

Xcel Energy monitored customer perceptions of the company’s performance through the Voice of the 

Customer (VOC) market research initiatives in 2014. VOC is a continual study where randomly selected 

customers are interviewed about various aspects of Xcel Energy, including reliability, communications, 

pricing, company programs and customer service. 

In 2014, 94 percent of customers gave Xcel Energy positive marks for overall satisfaction. Xcel Energy’s 

commitment to customers was validated through historic high positive feedback related to the company’s

concern for safety, support of renewable energy sources and delivery of reliable electricity service. Value 

to customers remained high for the second year as well, driven by favorable ratings of reasonable 

electricity rates and continually rising familiarity with energy efficiency programs offered. Finally, 

customers continue to provide high positive scores to Xcel Energy for being a good corporate citizen. 

Beginning in 2015, we will monitor relationships between Xcel Energy and our residential and small- to 

medium-sized customers through the Customer Engagement Index (CEI), which evaluates three key 

components: brand trust, operational excellence and product experience. We will continue to survey large 

customers through our Voice of the Customer (VOC) relationship study. 

2014 Overall Satisfaction with Xcel Energy (All Customers)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

NSPM 91% 90% 93% 92% 94% 94% 96% 96% 95% 95%

NSPW 93% 94% 95% 94% 94% 95% 95% 96% 96% 95%

PSCo 82% 82% 89% 89% 92% 91% 91% 93% 93% 93%

SPS 92% 92% 93% 93% 95% 97% 97% 96% 97% 95%

Xcel Energy 88% 87% 91% 91% 93% 93% 94% 95% 95% 94%

VOC Relationship, Percent Positive (6-10 Scores, 0-10 Scale)

38
Customer Experience

Multiple research sources show that customers engage with utilities for a very small amount of time—on 

average, only six minutes per year. Each customer touch point is an opportunity to build trust and 

relationships with our customers. We do this by adding convenience to all interactions, delivering digital 

improvements and driving engagement and participation. 

At Xcel Energy, customer experience means focusing on customer perspectives to identify and deliver 

valuable solutions that can transform their experience with us. In 2013, Xcel Energy established a 

customer experience strategy focused on fine-tuning the company’s customer touch points in an initiative 

called Moments that Matter. The four Moments that Matter are our best opportunities to change customer 

perceptions:

• Start My Service: Building a Strong Relationship

Start My Service focuses on making a strong and lasting first impression that fosters trust and 

leaves the customer wanting to engage further with Xcel Energy. This moment addresses more 

than just the start service transaction—it sets a path for Xcel Energy to engage customers from 

day one.

• Pay My Bill: Delivering Convenience and Choice

Pay My Bill addresses account management, billing and payment touch points for all customers. 

This moment is unique because there is consistent engagement—every customer experiences 

this in some way. There is a substantial opportunity to build relationships by informing customers 

of convenient and easy bill payment choices that align with their expectations. The Pay My Bill 

moment focuses on shifting away from a one-size-fits-all approach toward targeted and dynamic 

programs and messaging. 

• Understand My Outage: Providing Accurate, Relevant and Timely Information

Understand My Outage is built on the understanding that during outage events, customers want

updated information to manage their lives and make decisions while their power is being restored. 

Research shows that customers value having accurate information and easy-to-use tools.

• Manage My Energy: Engaging Through the Right Choices

Manage My Energy focuses on building and nurturing ongoing relationships with customers. It 

positions Xcel Energy as a trusted energy resource by delivering choices that meet customer 

needs and expectations.

Redesigned Website and New Outage Map

Late in 2014, we launched a redesigned website based on customer feedback. The site has a fresh look, 

additional tools, enhanced performance and more relevant organization. It also is mobile-friendly, so 

customers can find the information they need no matter where they are. Key elements of the new site 

include:

• A simplified design

• Faster navigation

• More interactive elements

• Automatic recognition of the customer’s location

• New and enhanced online forms and tools

39
Also in 2014, an improved electric outage map was added to our website. Customers can report and 

monitor outages online, learning how many customers are affected by the outage in their area and when 

service is expected to be restored. In early 2015, a customer preference center will be introduced that 

offers proactive phone, text or email notifications on outage events to provide an even higher level of 

personalization and service. The new outage map is accessible at outagemap-xcelenergy.com.

Education and Outreach

Xcel Energy’s Education and Outreach program is designed to promote and encourage participation in 

our energy efficiency and renewable programs. We do this by leveraging partnerships and sponsorships 

to meet customers in the communities where they live and provide information in a compelling way. In 

2014, the program yielded 4,000 direct sign-ups to our energy efficiency and renewable programs. We 

gained exposure to more than 3 million people at community events and generated 21,000 targeted 

customer leads.

‘This is How’ Videos Help Customers Save Energy and Money

Xcel Energy has introduced a new video series: This is How features15 how-to videos demonstrating a 

range of conservation behaviors and projects to help customers save energy and money. The series was

rolled out for testing in late 2014 at a kiosk in Minnesota’s Shoreview Public Library, with plans to roll out 

more kiosks at other high-traffic public locations in other states this year. The concept is to try to catch 

customers and influence them as part of their daily routines—returning a library book, at intermission 

during the kids’ hockey game or picking up a light bulb at the hardware store. Once customers view a 

video, they can text themselves a link to follow the steps at a later time. See an example of one of the 

videos showing how to seal air leaks in your home.

Scam Awareness

Xcel Energy has monitored scam activity reported by customers for several years. After scam activity 

increased in 2014, we launched an awareness campaign and technology changes that are proving 

effective in protecting customers. Scammers try various ways to trick customers into paying them money 

by threatening to turn off their service. All types of customers have been targeted, especially small 

business customers.

The awareness campaign provided guidance to customers through bill messages, emails and other 

communications. On the technology side, additional levels of security are being added to the company’s 

Interactive Voice Response phone system before customers are provided certain account information. 

Xcel Energy’s Security Services team also works with law enforcement agencies to track scam reports 

received from customers, monitor trends and share the findings. At the end of last year, we estimated

these changes helped reduce the number of customers victimized through scams by 60 percent.

40
Customers in Need

We work with state and local agencies and advocates for low-income customers to provide energy 

assistance to those in need. Our Personal Accounts department provides services that promote the 

efficient use of energy while making energy bills more affordable to income-qualified families through 

payment plans and energy assistance programs. 

In 2014, we helped provide nearly $29.4 million to customer energy assistance programs throughout our 

service territory. Our support of energy assistance includes: 

• Public policy and advocacy supporting efforts on the state and federal level to increase funding for 

Low-Income Home Energy Assistance Programs (LIHEAP)

• Funding for state and local energy assistance agencies and energy weatherization programs

• Encouraging our customers to contribute to statewide fuel funds via their Xcel Energy bills

• In-kind marketing and public relations to support energy assistance organizations and advocates for 

low-income customers

2014 Programs Available to Customers in Need

PROGRAM DESCRIPTION STATES 

AVAILABLE

# CUSTOMERS 

PARTICIPATING 

IN 2014

Gas Affordability 

Program

The program is designed to reduce the 

percentage of income that low-income 

households must devote to meet current 

energy bills. It’s also designed to increase 

the number of customer payments and 

provide a mechanism for assisting 

customers in paying off past due 

balances. We partner with Energy CENTS 

Coalition (ECC) on both outreach and

administration of the program.

MN 9,987

PowerON Customers enrolled in PowerON get a 

discount on their monthly bills in return for 

their commitment to a payment plan. We 

partner with ECC to provide outreach and 

administration of this program. ECC 

obtains consumption information from us 

and combines it with customer income 

information to calculate each participant’s 

PowerON benefit. 

MN 8,032

Low-income Discount 

Program

Qualifying participants receive a $15 

discount each billing period.

MN 53,236

Low-income Energy 

Savings Programs

Our Home Energy Savings program offers 

free energy savings services and 

upgrades, including weather stripping, 

insulation, replacement of inefficient 

furnaces, water heaters, refrigerators, 

freezers and window/wall air conditioners, 

MN 2,098 in Home 

Energy Savings, 

plus 1,430

Home Energy 

Squad and 2,238 

Multi-family 

41
and installation of compact fluorescent 

light bulbs (CFLs). Free in-home 

installation and equipment upgrades also 

are available to income-qualified 

customers through our Home Energy 

Squad program and our newly launched 

Multi-family Energy Savings program, 

which targets apartment buildings. 

Energy Savings

Electric and Gas 

Assistance Programs 

(EAP/GAP)

Through these programs, participants are 

eligible for benefits such as a discount on 

their monthly gas or electricity bill, partial 

forgiveness for outstanding balances and 

weatherization assistance through the 

Colorado Energy Office program.

CO 16,190

Medical Exemption 

Program (MEP)

Customers in Colorado who have a 

medical condition and/or use life support 

equipment that requires electricity may be 

eligible for the Medical Exemption 

Program. The program offers a rate of 

$0.063 per kilowatt-hour (kWh) for all 

electricity used each month from June to 

September. Participants in the Colorado 

MEP revert to standard residential electric 

rates in October. 

CO 544

Income-qualified 

Weatherization 

Programs

Free weatherization services, including 

weather stripping, insulation, replacement 

of inefficient furnaces and refrigerators,

and installation of CFLs, in partnership 

with the Colorado Energy Office and 

Energy Outreach Colorado.

CO 1,263 (singlefamily 

residences)

28 (multi-family 

complexes)

7,786 (energy 

saving kits)

Nonprofit Energy 

Efficiency Program 

(NEEP)

This program helps selected nonprofit 

organizations lower energy use and save 

costs. Participating organizations receive 

energy audits to identify energy saving 

measures, which are then implemented.

CO 28 (includes 

multi-family 

complexes and 

other large 

buildings)

Home Energy 

Services: Low-Income 

Program

This program provides various energy 

saving programs to low-income customers 

in New Mexico. Weatherization of existing 

homes, increasing duct efficiency for 

homes with central air, attic insulation and 

installation of up to 10 CFL light bulbs are 

the most requested services. Refrigerator 

replacement, installation of evaporative air 

conditioners and installation of radiant 

barriers are also offered.

NM 703

42
Keep Wisconsin 

Warm Fund (KWWF)

The Keep Wisconsin Warm Fund assists 

thousands of customers every year who 

face a number of situations that create 

financial challenges. About 95 percent of 

those helped are elderly, families with 

young children or people with disabilities. 

The funds from KWWF are distributed to 

local energy assistance and community 

action agencies. 

In March 2014 Xcel Energy made an 

donation of $100,000 to the fund.

WI n/a

Income Eligible -

Residential Rewards 

and Home 

Performance

Through the statewide Focus on Energy 

program, income-eligible customers are 

offered larger incentives than standard 

program participants for the purchase of 

energy efficient heating and cooling 

equipment. They are also offered reduced 

costs on professional home energy 

assessments and increased incentives to 

offset costs of recommended air-sealing 

and insulation improvements.

WI n/a

Service Disconnects

If we are unsuccessful in our efforts to reach out to customers regarding payment issues, we disconnect 

service only as a last resort. We will usually shutoff service three to 10 days after the disconnection notice 

is sent if we are unable to resolve the issue or arrange a payment plan with the customer. In 2014, we 

disconnected service to a total of 99,360 customers. The majority of these customers are reconnected 

after they arrange payment plans or pay their bills in full. We typically send customers a reminder notice 

33 days after their unpaid bill is due and a disconnection notice 64 days after the original due date. Heataffected disconnects are not performed in our five Upper Midwest states during the heating season. In all 

states, Customer Care leadership can decide to suspend disconnections during extreme weather or other 

emergency situations. 

Learn more about energy assistance.

43
Public Safety 

Safety is an important value at Xcel Energy, and we are committed to the safety of our employees and 

the public. We want our customers and the people who live, work or gather near our facilities to be aware

of possible hazards and to respond safely to them. We provide comprehensive outreach programs to 

promote safe behavior among our customers, communities, emergency responders and third-party 

workers. Our goal is to prevent accidents that can result in serious injury or death, property damage, 

costly repairs or fines, and decreased service reliability. Most serious accidents happen because 

someone directly or indirectly makes contact with an overhead electric line, digs into an electric or natural 

gas line, or fails to respond safely to the warning signs of a gas or electric emergency.

Public Safety Index

Our corporate scorecard includes a public safety index measure. Our goal for this index measure was 

100, meaning that we need to meet or achieve 100 percent for each target outlined on the index below. 

While the goal for the entire index is consistently 100 each year, the different targets within the index 

increase annually.

2014 Public Safety Index Performance

Measure Target Description

Response time to gas emergency 

calls

26 minutes To meet this target, the average response 

time of our total E1 gas emergency calls 

needed to be 26 minutes or less. The 

clock begins ticking when a call arrives at 

Customer Care and ends when our 

responders arrive at the site. In 2014, our 

average response time for gas 

emergency calls was 25 minutes.

Nuclear emergency response 95.5% To meet this target, we needed to 

perform in a timely and accurate manner 

during at least 95.5% of all drill, exercise 

and actual nuclear emergency response 

opportunities throughout the year. In 

2014, we performed timely and accurately 

to 97.5% of all nuclear emergency 

response opportunities.

Number of inadvertent dig-ins to Xcel 

Energy’s underground gas or electric 

service

1.29 per 1,000 

locates

To meet this target, we must have had 

less than 1.29 damages for every 1,000 

tickets we receive via the states’ one-call 

centers, which arrange for utilities to 

locate and mark buried utilities in 

response to a locate request. In 2014, we 

had 1.41 damages for every 1,000 locate 

tickets.

44
Assessments of the company’s highpressure gas system

220 HCA miles To meet this target, we must have 

assessed historical and current integrity 

along 220 miles of high-pressure natural 

gas pipeline in high-consequence areas 

(HCA), which is determined by the 

number of people and buildings near a 

potential impact zone in the event of a 

pipeline emergency. In 2014, we 

assessed 328 miles of pipeline in HCAs.

Public Safety Initiatives

We send direct mail to thousands of customers and offer free safety materials through our fulfillment 

programs and participation with other organizations, as described below. We also offer online safety 

resources for elementary educators, students and their parents and for third-party workers. Likewise, our 

Responding to Utility Emergencies online training provides local emergency responders, such as 

firefighters and law enforcement, with important safety information about situations involving natural gas 

pipelines and electricity. We also share safety information in our communities through traditional 

advertising, social media sites and our electronic newsletters and billing statements.

We work closely with several national organizations that focus on public safety awareness for electric, 

natural gas and pipeline safety. 

Fulfillment Outreach Programs

Our fulfillment programs provide safety information to targeted, at-risk groups such as children, third-party 

workers and emergency responders. We offer free videos and related safety materials that address the 

specific needs of these audiences. Our programs also direct workers and elementary educators—

including younger students and their parents—to our e-SMART worker website and our e-SMART kids

website, where safety information is continuously available. In 2014, our safety fulfillment efforts achieved 

the following:

• Xcel Energy sent safety brochures to more than 25,000 elementary educators, along with samples of 

free energy safety books they can order. In response to our offer, we placed more than 162,000 pieces 

of safety material directly into classrooms. These safety materials help educators meet national 

science education curriculum standards, and the related e-SMART website continues to be a valuable 

educational resource, as demonstrated by nearly 9,600 website visits in 2014. 

• Xcel Energy mailed safety posters to 61,318 businesses with at-risk third-party contractors and 

included an offer for free visor cards and DVDs about working safely near power lines and natural gas 

pipelines. In response to this offer, we provided more than 44,000 additional pieces of safety 

information to at-risk workers (excavators, plumbers, general contractors, etc.) to support 1,438

requests. We also emailed additional safety information using “tips of the trade” and had several 

thousand visits to our e-SMART worker website. 

• The mailing to third-party contractors also included tree workers and gutter, siding and roofing

installers to further emphasize the hazards of performing work in areas near energized electric lines. 

We offered a Tree Worker Safety video program and an industry-best DVD entitled Worker Beware to 

workers who install gutters, siding and roofing and use scaffolding in our service areas. 

45
Pipeline Safety Collaborative Programs

Through our membership with the national nonprofit Pipeline Association for Public Awareness (PAPA) 

and our participation in state-specific pipeline associations, as well as Minnesota’s Community 

Awareness Emergency Response (CAER) association, we helped distribute the following materials in 

states where we have natural gas distribution and transmission pipelines: 

• Excavators

o PAPA Excavation Safety Guide, Pipeline Edition” was mailed to more than 144,000 excavators

o MN CAER Gopher State Newsletter was mailed to 32,119 excavators

• Public Officials 

o PAPA Public Officials Newsletter was mailed to 18,009 public officials

o MN CAER Public Officials Newsletter was mailed to 5,774 public officials

• Emergency Officials

o PAPA Pipeline Emergency Response Guide was mailed to 4,366 emergency response 

agencies

o MN CAER Emergency Responder books were provided to more than 2,700 emergency 

response agencies 

o Attendance at and sponsorship of many pipeline emergency responder meetings in Colorado, 

Minnesota, North Dakota, South Dakota and Wyoming provided additional, in-person pipeline 

safety training to hundreds more emergency responders

For each of the above direct-mail pieces provided within Xcel Energy’s service territories, hundreds of 

thousands more excavators and thousands more public and emergency officials across the United States 

received the same industry best practice information. Sharing consistent information nationwide also 

helps encourage pipeline safety. 

Additional Community Outreach that Encourages Public Safety

• We conducted a train-the-trainer pilot program for emergency responders in Colorado enabling fire 

and law enforcement personnel to train their co-workers on safely responding to utility emergencies. 

• We estimate that nearly 20,000 people watched our electricity safety demonstrations at the 

Minnesota State Fair in 2014. 

• Xcel Energy provided hundreds of electricity and natural gas safety pamphlets at safety events 

throughout our service territory.

• We mailed information to 1,312 emergency responder agencies and community officials across our 

service territory and provided information specific to their regions regarding response to lifethreatening and non-life-threatening emergencies, including essential public service restoration.

• The Xcel Energy sponsored Responding to Utility Emergencies and First Responder Beware

websites received 1,348 visits. 

• Xcel Energy conducts numerous emergency drills each year, including about a dozen that involve 

local emergency responders from the communities we serve.

Learn more about customer safety & education. 

46
PIPELINE SAFETY

Xcel Energy has its own Transmission Integrity Management Program (TIMP) and Distribution Integrity 

Management Program (DIMP), which each operating company uses to address the specific risks 

identified on its gas pipelines as required by the federal Pipeline and Hazardous Materials Safety 

Administration (PHMSA). TIMP rules are prescriptive and extensive but can be summarized in several 

simple points:

• Know your pipeline assets

• Understand the threats against your assets

• Be proactive in addressing the threats against your assets 

DIMP rules require operators of distribution pipelines to continually identify and assess risks to their 

distribution lines, to remediate conditions that present a potential threat to pipeline integrity, and to 

monitor program effectiveness. Instead of imposing prescriptive requirements for DIMP, PHMSA 

concluded that requirements for operator-specific programs to manage pipeline system integrity would be 

more effective given the diversity in distribution systems and the threats to which they may be exposed.

We are committed to having knowledgeable, experienced, trained personnel regularly inspect our 

pipelines for any potential leaks or anomalies. The design, construction, operation, inspection and 

maintenance of our operating pipelines are subject to state and federal regulations, including the 

Congressional Pipeline Inspection, Protection, Enforcement and Safety Act of 2006. We review publicly 

available data that the pipeline industry reports to the PHMSA, participate in benchmarking studies, and 

engage in peer-to-peer reviews with other utilities with the goal of continuously improving our safety 

programs in order to reduce public safety incidents and taking proactive steps to prevent such incidents. 

Third-party excavation damage remains the biggest threat to our natural gas distribution systems. We 

continue to heavily promote the Call Before You Dig campaign that uses the national three-digit number, 

8-1-1. We also reinforce to anyone planning to dig near our pipelines, the need and importance of always 

calling 8-1-1 before digging. Since 2008, we have reduced the damage incident rate per 1,000 facility 

locates by 24 percent. Preventing dig-ins is a corporate goal and is tracked and measured as part of our 

public safety index.

When building gas pipelines, we consistently meet or exceed national standards for construction and 

safety and work closely with local emergency responders to ensure there is a safe, coordinated response 

in the event a pipeline incident should occur. 

Read more about pipeline safety.

47
PROVIDING COMMUNITY VALUE

Xcel Energy is highly committed to the communities we serve. Over the next five years, we plan to invest 

$14.5 billion in our electric and natural gas businesses to ensure we continue to provide our communities 

with the safe, reliable and affordable energy they depend on, as well as energy with less environmental 

impact. The energy landscape is changing, and we are responding with a comprehensive, forwardthinking approach that includes strengthening our infrastructure and making sure it is resilient and secure. 

As Xcel Energy works to operate more competitively, controlling company costs, leveraging technology to 

improve our processes and working to establish longer-term regulatory agreements all play a key role in 

our future. To meet the interests of individual cities and towns, we are seeking to implement constructive 

solutions—such as the innovative Clean Energy Partnership we established with Minneapolis in 2014. We 

want to ensure our communities remain desirable places for everyone to live, work or own a business.

Beyond our core business, our company and employees find ways through the Xcel Energy Foundation 

and our community giving efforts to contribute to the economic prosperity and quality of life in 

communities we serve.

Highlights:

• Xcel Energy’s system reliability results consistently rank near the top one-third of U.S. electric 

utilities. On average, our customers have electricity more than 99.9 percent of the time.

• Xcel Energy’s rates are competitive both nationally and in the states we serve. To help maintain 

affordable rates for customers, we are controlling costs. In 2014, we limited the growth of 

operating and maintenance expenses to 1.8 percent, within our goal range of below 2 percent.

• Last year we expanded natural gas service to three Minnesota communities previously served by 

more costly propane service, an arrangement that benefits both the community and Xcel Energy. 

We added 1,100 new customers to our system that will save money on their monthly energy bills 

while we expect to increase annual revenue by about $600,000.

• Xcel Energy proposed a groundbreaking new resource plan to serve communities in the Upper 

Midwest from 2016 to 2030. The plan charts a path to more than double the company’s 

renewable energy portfolio and deliver a 40 percent reduction in carbon dioxide emissions by 

2030, all while keeping costs reasonable for customers and maintaining a diverse mix of energy 

resources.

• Xcel Energy contributed more than $45 million to communities in 2014 through a combination of 

foundation giving, volunteer contributions, energy assistance and support for economic 

development. Contributing to this, our annual United Way campaign raised $5.2 million for local 

nonprofit agencies, with employee participation at the highest level yet.

48
Operations Numbers

2014 Energy Supply Resource Mix (owned and purchased)

1

Includes wind energy de-bundled from renewable energy credits (RECs); learn more about RECs

2

Includes wind energy purchased for Windsource

3

Includes solar energy generated by customer-owned systems through Solar*Rewards

4

”Other” includes small amounts of power purchased from a number of sources

49
2014 Owned and Purchased Generation ( in MWh)

Owned Purchased Total

Upper Midwest 33,633,367 12,511,710 46,145,077

Colorado 23,019,974 11,449,231 34,469,205

Texas/New Mexico 16,953,436 9,979,851 26,933,287

TOTAL 73,606,777 33,940,792 107,547,569

Owned Generating Plants

Type Plants Units Net Dependable Capacity 

in Megawatts (MW)

Coal 12 25 7,409

 Colorado 6 11 2,673

 Upper Midwest 4 9 2,651

 Texas/New Mexico 2 5 2,085

Natural Gas 25 70 6,877

 Colorado 7 18 2,045

 Upper Midwest 10 31 2,472

 Texas/New Mexico 8 21 2,360

Nuclear 2 3 1,594

 Upper Midwest 2 3 1,594

Hydro 26 79 377

 Colorado 6 11 236

 Upper Midwest 20 68 141

Wind* 3 238 327

 Colorado 1 37 25

 Upper Midwest 2 201 302

Solar 4 4 0.1

 Texas/New Mexico 4 <4 0.08

Other 4 19 435

 Upper Midwest 4 19 435

Total 76 438 17,019

 Colorado 20 77 4,979

 Upper Midwest 42 331 7,595

 Texas/New Mexico 14 26 4,445

*Wind generation is based on net maximum capacity.

Learn more about Xcel Energy’s power plants. Read about our nuclear plant operations on our website

and in the Form 10-K.

50
2020 Projected Energy Supply Resource Mix (based on current plans and energy forecasts)

51
2014 Natural Gas Pipelines (measured in miles)

Transmission Distribution

NSPM 136 9,931

NSPW -- 2,316

PSCo 2,258 21,844

SPS -- --

WestGas 

Interstate 

(WGI)*

11 --

*WGI is an interstate natural gas pipeline 

company that is part of our continuing 

regulated utility operations. 

2014 Electric Transmission and Distribution Lines

Throughout our service territory we operate 289,989 conductor miles of transmission and distribution 

lines.

Transmission 

Lines

Distribution 

Lines

Transmission and Distribution Lines by Voltage

500 kV 345 kV 230 kV 161 

kV

138 

kV

115 kV <115 kV

NSPM 27,584 77,547 2,917 8,403 1,803 416 - 7,502 84,090

NSPW 9,936 26,945 - 1,152 - 1,575 - 1,746 32,408

PSCo 21,176 73,707 - 2,630 12,162 - 92 4,889 75,110

SPS 34,404 18,690 - 8,110 9,312 - - 12,378 23,294

TOTAL 93,100 196,889 2,917 20,295 23,277 1,991 92 26,515 214,902

(Provided in conductor miles— a measure of the conductor in use on our system in miles; it accounts for 

all conductor phases or strands on a circuit)

52
2014 System Average Interruption Duration Index (SAIDI)

The System Average Interruption Duration Index (SAIDI) measures the average number of minutes a 

typical customer was without power in a year. 

Xcel Energy: 88

NSPM: 86

NSPW: 121 

PSCo: 85

SPS: 80 

2014 System Average Interruption Frequency Index

The System Average Interruption Frequency Index (SAIFI) measures the average number of power 

outages that an average customer experienced in a year. 

Xcel Energy: 0.92 

NSPM: 0.85

NSPW: 0.96 

PSCo: 0.99 

SPS: 0.86 

2014 Customer Average Interruption Duration Index

The Customer Average Interruption Duration Index (CAIDI) measures the length of the average power 

outage in a year. 

Xcel Energy: 95.55

NSPM: 101.43

NSPW: 125.35

PSCo: 85.32

SPS: 93.00

53
Reliable Energy

Keeping Xcel Energy’s system reliable and secure is fundamentally important to our customers and 

communities. We never lose sight of this fact and are taking steps to ensure our reliability ranks among 

the best in the country now and well into the future. In 2014, Xcel Energy customers had electricity

service 99.9 percent of the time on average. When a major storm hits, we are prepared to respond swiftly 

and effectively to restore power, as has been demonstrated time and again in our own jurisdictions, as 

well as in other parts of the country where we have responded through mutual-aid agreements. Having a 

diverse mix of energy resources on our systems helps us to ensure reliability at a reasonable cost to 

customers while also managing the risks associated with relying too heavily on any one resource. As we 

invest in strengthening and upgrading our infrastructure, Xcel Energy always considers how to manage 

risk and choose the projects that provide the best value for communities.

Physical and Cybersecurity

Xcel Energy is committed to the security of customers, our assets and the nation’s critical infrastructure. 

We understand the risks and continue to focus on the improvement of our security program, leveraging 

our partnerships with public and private agencies, to ensure the protection of the critical assets that 

deliver safe, reliable energy to our communities and secure our customers’ information. Our security 

programs are built on a Defense-in-Depth strategy that provides multi-layered safeguards against security 

risks. Because there is no solution that can guarantee complete security of our systems and critical 

infrastructure, we use a risk management approach inclusive of planning and preparing for events to 

ensure full, fast mitigation and recovery. 

We view law enforcement, defense agencies and regulatory agencies as critical partners in our effort to 

protect our systems. We have longstanding relationships with personnel from these groups that enhance 

our own security. Further, Xcel Energy’s chairman, president and CEO Ben Fowke is a member of the 

National Infrastructure Advisory Council (NIAC) subcommittee on cybersecurity, which advises President 

Obama through the secretary of Homeland Security on the security of critical infrastructure sectors and 

their information systems. In addition, we are subject to a number of statutory and regulatory 

requirements, including data privacy laws focused on protecting our systems and customer information 

and data. 

The responsibility of protecting our critical assets continues to evolve as new threats emerge, and we 

continually elevate our capabilities to prepare, prevent and respond to potential threats. Our 

investments in infrastructure, cyber-assets and personnel reinforce our commitment to protecting 

customers, our assets and the nation’s critical infrastructure.

Regulation of Infrastructure and Information Security

As we go forward, we believe that infrastructure security and information security laws and regulations 

should focus on:

• Aligning relevant requirements across state and federal agencies

• Establishing a clear reporting and federal agency responsibility structure in case of a 

cybersecurity event

• Sharing cybersecurity threats and vulnerabilities information between the federal government and 

the private sector

54
• Giving the utility industry the tools and flexibility it needs to develop safeguards that are 

appropriate for each utility’s risk profile

• Strengthening cyber defenses while minimizing paperwork and ineffective compliance measures

• Limits on liability associated with sharing cyber data

Emergency Preparedness and Response

At Xcel Energy, we consider our preparations for safe and timely power restoration following severe 

weather events and other natural disasters as key components of electric and gas reliability. Industry 

leading emergency preparedness and response includes many elements, such as training, weather 

system monitoring, resource staging prior to emergencies, rapid mobilizations for restoration and ongoing 

communications with all stakeholders. 

We continuously assess potential risks—natural, technical and terrorist. We carefully consider the 

consequences of each possible emergency and develop our response plans. To test our plans, we 

conduct several complex and multi-business unit reliability drills each year. 

These drills challenge the organization with scenarios such as earthquakes, severe weather, major power 

or gas outages, or cyberattacks. Our primary drill objective is to test our emergency procedures and 

processes to identify performance gaps or previously unconsidered issues and make the plans more 

effective and efficient. Many of our reliability drills involve Xcel Energy’s executive team as well as 

participants from federal, state and local regulatory and emergency-management agencies. 

55
Infrastructure Investment

By investing in new infrastructure and modernizing existing infrastructure, we can be sure to maintain 

high reliability over time. In the next five years, Xcel Energy will invest $14.5 billion in projects that offer 

the most value for customers, while strengthening the safety and security of our system. Current low 

interest rates allow us to make necessary and innovative improvements at an affordable cost to 

customers. 

2015-2019 $14.5 Billion Capital Investment Plan

56
Transmission and Natural Gas Investment for the Future

Xcel Energy has a strong track record of managing and completing complex construction projects under 

challenging and often changing conditions. Our expertise is particularly strong when it comes to building 

and upgrading transmission lines and natural gas pipeline, which is why we’re focusing a significant 

portion of our infrastructure investment plans on growth opportunities in these two areas. 

Transmission

For the communities we serve, transmission is an area of our business that continues to expand as we 

plan to maintain electric reliability, meet future load growth and seek ways to connect more renewable 

energy resources. 

In 2014, we put more than 760 miles of new transmission lines into service and modernized 190 miles of 

existing lines, successfully executing more than $1 billion in capital investment in transmission. We plan 

to invest an additional $4.5 billion in transmission between 2015 and 2019 and have established three

independent transmission companies to give us the flexibility to compete in the highly competitive 

transmission market. Xcel Energy is one of the largest builders of 345-kilovolt transmission in the United 

States, and we’re able to do so at an average cost per mile that’s lower than the national average.

Natural Gas

Xcel Energy currently operates more than 2,400 miles of natural gas transmission and more than 34,000

miles of natural gas distribution pipelines to serve our customers in Colorado and the Upper Midwest. We 

continue to take advantage of the low cost of natural gas to meet customer demand for electricity at a 

competitive price, and we have managed to accelerate upgrades to our natural gas distribution system 

with minimum impact to customer bills.

We’re still in the early days of pursuing growth in natural gas and are looking at opportunities for building 

new infrastructure, as well as investing in natural gas transmission pipeline or natural gas reserves.

Because natural gas is a cleaner fossil fuel, we see great opportunities for new natural gas infrastructure 

as our industry works to address more stringent environmental rules, including the Environmental 

Protection Agency’s plans to regulate greenhouse gas emissions.

In 2014, we expanded natural gas service to three communities in Minnesota that were previously served 

only by propane. For customers, natural gas is more dependable, reliable and lower cost fuel than 

propane. Additionally, we replaced the last remaining cast iron pipe on our system, which will help ensure 

safety and reliability, and we completed 35 miles of natural gas transmission pipeline on time and on 

budget to bring natural gas to Cherokee Generating Plant in Colorado as part of our Clean Air Clean Jobs 

project. 

Read about our transmission projects and organizations.

Learn more about natural gas production and distribution.

Resource Planning

Our commitment to provide customers with clean, affordable and reliable energy requires a diverse mix of 

electricity resources, which today includes coal, nuclear, natural gas and renewable resources. By having 

diversity in our energy supply, we capture the benefits associated with each resource, while also 

57
minimizing the operational, financial and environmental risks that come with relying too heavily on any 

one resource. 

Regulatory commissions in some of the major states we serve require us to submit resource plans at 

regularly established intervals. The plans generally assess the resources necessary to serve customers’ 

future energy requirements. They also discuss our future energy efficiency program goals and summarize 

our transmission planning process and other resources we may need to acquire based on our studies of 

future load growth. The regulatory review for these plans includes input from customers and other 

stakeholders.

The filing of a resource plan marks the beginning of a process that focuses on a proposed long-term plan 

that is evaluated by regulators as well as environmental, business and community stakeholders. Xcel 

Energy and stakeholders have the opportunity to advocate for specific assumptions that will form the 

basis for subsequent plans.

If the resulting approved plan proposes to add resources to meet customer needs, Xcel Energy will 

release one or more requests for proposals (RFPs), which are either general or target specific energy 

production technologies. Stakeholders are given the opportunity to provide testimony on the best course 

of action concerning new resource additions with our public utilities commissions as the commissions rule

on resources to be acquired. 

58
Resource Planning Activity and Schedule

Region Frequency of Filings Last Filing Next Filing

Colorado At least every four years October 31, 2011 October 31, 2015

New Mexico* Every three years July 16, 2012 July 2015

Upper Midwest Every two to three years January 2, 2015 To be determined by 

early 2016

*Texas has no resource plan filing requirement

Upper Midwest Resource Plan

In January 2015, Xcel Energy filed its Upper Midwest 2016-2030 Resource Plan with Minnesota Public 

Utilities Commission, outlining a long-term road map to a more sustainable and affordable energy future. 

By 2030, more than 60 percent of our Upper Midwest system’s energy supply will be carbon free, while 

maintaining fuel diversity to hedge price and reliability risk and keeping energy costs affordable. The plan 

is driven by achieving aggressive reductions in CO2 emissions from 2005 levels—at least a 30 percent 

reduction by 2020 and at least a 40 percent reduction by 2030.

In the plan, Xcel Energy proposes the following:

• Add approximately 1,800 megawatts of wind resources

• Add approximately 1,700 megawatts of large-scale solar resources and approximately 700 MW of 

customer-owned solar

• Continue to operate all of our coal plants through 2030 while gradually decreasing energy output and 

CO2 emissions

• Add approximately 2,000 megawatts of natural gas-fueled plants

• Retain nuclear power, which emits no CO2 emissions

• Maintain industry-leading energy efficiency programs

Related to the Upper Midwest Resource Plan is the e21 Initiative. The resource plan was filed weeks after 

the e21 Initiative released its Phase 1 Report in Minnesota and incorporates elements of the initiative.

59
Affordable Power

We understand that most customers are primarily concerned with the affordability and reliability of the 

products and services we provide. Even as we continue to modernize our infrastructure and bring more 

renewable energy onto our system, we have kept our retail electricity rates competitive with rates across 

the country and in the states we serve. We offer energy assistance programs for customers in need and 

also contribute funding to state and local energy assistance agencies each year.

Xcel Energy Electricity Rates Compared with the National 

Average

*Based on data from the U.S. Energy Information Administration (EIA)

60
The Regulatory Compact

Our utility subsidiaries operate under carefully regulated conditions, which are determined in part by state 

public utilities commissions. A utilities commission is a governing body that regulates the rates and 

services of utilities such as ours. In exchange for the exclusive right to provide electricity and natural gas 

services in certain regions, we agree to the following:

• Duty to serve: We will provide service to any residence or business within our service territory 

that requests it under reasonable terms and conditions. Utilities cannot pick and choose their 

customers.

• Cost of service pricing: Pricing for our services is regulated by the costs we incur to deliver 

them. We cannot arbitrarily raise prices to levels beyond our costs.

• Resource planning process: Every few years, we go through a process to determine the 

resources necessary to serve customers’ future energy needs. Resource plans must be reviewed 

and approved by regulatory commissions, and stakeholders are given the opportunity to provide 

input on the plans through a public process.

Together, this is known as the regulatory compact. As a participant in the compact, we are granted the 

ability to recover our costs of doing business and earn a reasonable rate of return. This rate of return is 

not guaranteed—we have only the opportunity to earn it, and in some years we do not achieve the rate. 

To operate effectively in a closely regulated business like ours, it’s imperative that we stay in sync with 

the current demands of the public and policymakers.

The changes taking place within our industry will require that we further develop the current regulatory 

model. The electric system or “grid” that serves our customers is undergoing a transformation as 

advanced energy technologies become more viable and as customers demand new and expanded 

energy options. Our policies must consider this change and the rules that govern our industry will need to 

keep pace and evolve as demands on the grid grow. We must be able to continue investing to ensure the 

grid can serve its purpose, providing the network and support to connect customers with the energy 

services they need and want.

61
e21: A regulatory framework for the future

Xcel Energy is part of a diverse group of stakeholders working on recommendations for 

how to better align Minnesota’s regulatory framework for electric utilities with changing 

policy goals, customer expectations and advanced technologies. Called e21, the 

initiative’s goal is to help enable and shape the 21st century electricity system. It began 

through conversations and a willingness among stakeholders to voluntarily collaborate on 

a proactive process.

Over the course of a year, the group developed a set of Phase I recommendations, 

released in December 2014. The recommendations support a new utility business model 

that places less emphasis on selling an increasing amount of electricity and more on 

providing energy services and options to meet customer expectations. At a high-level the 

proposal includes:

• Shifting to a multi-year, performance-based rate plan for utilities

• Reforming the integrated resource planning process to enable comprehensive 

business plans guided by longer-term integrated resource analysis

• Providing more transparency to distribution system planning

• Creating a roadmap for grid modernization

Xcel Energy has expressed interest in the e21 recommendations through a letter to the 

Minnesota Public Utilities Commission (MPUC) that discusses how to turn the ideas into 

action. In our most recent resource plan for the Upper Midwest, we incorporate elements 

from e21. We also are supporting legislation in Minnesota for performance-based, multiyear rate plans.

The MPUC has expressed support for continuation of the e21 initiative, and work on 

Phase 2 of the effort began in spring 2015.

Learn more about the e21 initiative.

62
MANAGING OPERATIONS AND MAINTENANCE COSTS

We are focused on better managing costs by increasing productivity and becoming more efficient. In 

2014, we publicly committed to limit the company’s operations and maintenance cost growth to 2 percent 

or less annually. Since 2011, we have been successful in bending the company’s cost curve—reducing 

annual cost growth from an average of 6 percent between 2007 and 2011 down to approximately 3

percent between 2011 and 2014. We remain focused on simplifying and automating business processes 

while taking full advantage of new systems and other technology. Our consistent focus on operational 

excellence will ensure continuous improvement, helping improve quality without dramatically raising rates 

for consumers. 

Productivity through Technology

Productivity through Technology (PTT) is an initiative we started in 2011 to help us solve our workforce 

challenges, make smart investments and minimize customer price increases—all while improving service

reliability. PTT is about removing roadblocks that are preventing our employees from being productive by 

providing them with new tools and ways of working. The work is driven by a cross-functional project team 

of more than 150 employees, as well as a change network of about 150 leaders from all business areas. 

The change network is critical as it helps proactively lead the change throughout the company.

Currently we are focused on building a new general ledger as well as a new work and asset management 

(WAM) system, both using the SAP technology. The new general ledger will standardize and simplify 

financial accounting and reporting to enable us to make better business decisions. WAM will address the 

way we do business from start to finish, allowing us to standardize operations. Together, these efforts will 

enable us to be more competitive and meet our customers’ expectations.

63
Supply Chain 

Our Supply Chain organization is responsible for the sourcing and procurement of normal goods and 

services, materials management, fleet management and accounts payable for all of Xcel Energy’s utility 

operating companies. Suppliers play an important role in our ability to grow and operate effectively, and 

the money we spend through our supply chain adds to the overall prosperity of our communities and 

beyond. In 2014, we spent $3.8 billion with suppliers on normal goods and services, and 60 percent of 

that spend went to local suppliers, up from 53 percent in 2013. In addition, 60 percent of our 6,447

suppliers are locally based. 

2014 Supply Chain Spending

We do not set specific targets for local spending; however, much of our spending occurs naturally on the 

local level as we build relationships within our communities. In some circumstances, necessary materials 

and services cannot be obtained locally or it is not feasible to do.

2014 Local Supply Chain Spending

State Spending

Colorado $687,226,157

Minnesota $642,809,570

North Dakota $201,305,587

South Dakota $3,934,039

Wisconsin $169,278,034

Michigan $106,562,241

Texas $439,779,791

New Mexico $23,636,009

TOTAL 

LOCAL 

SPEND

$2,274,531,428

64
Among many other things, the Supply Chain organization is involved in negotiating contracts for 

everything from day-to-day business necessities (e.g., office supplies and furniture) to capital items used 

to construct, operate and maintain our generation and transmission assets (e.g., transmission poles and 

transformers); implementing vendor, supplier and contractor management strategies and policies; 

handling accounts payable; and implementing company-wide sourcing and procurement strategies to 

achieve cost savings.

We sort our annual supply chain spending into 31 categories with more than 800 sub-categories. This 

data is used to determine risk, opportunity and negotiation leverage with suppliers. We employ a 

systematic sourcing method to get needed materials and services to the right place at the right time for 

the right price. The five-step sourcing process used to select suppliers includes: preparation; request for 

information; request for proposal; contract evaluation and negotiation; and implementation. Four key 

business objectives—each associated with specific initiatives—drive our supply chain strategy: 

• maximize investment yield 

• achieve operational excellence

• manage risk and opportunities

• support community and environmental leadership

We have developed guidelines for bid analysis for all categories of spend. Within these guidelines, up to 

20 percent of the bid analysis weight can be allocated to social and environmental factors such as safety 

performance, diversity and green performance.

2014 Supply Chain Spending Categories

Aggregates Engineering Services Maintenance Services Steel Structures

Boiler Systems Environmental

Marketing and 

Communications 

Services

Transformers

Cable and Wire Fleet Meters Transportation Services

Chemicals, Gases and 

Lubes Gas Materials MRO Materials Travel Services

Circuit Breakers HR and Benefits Other Plant Systems Turbine and Generator 

Systems

Construction IT and Telecom Property Services Vegetation 

Management

Consulting Services Logistics Integration Revenue Cycle Wood Poles

Electrical Materials and 

Equipment Safety Materials Staff Augmentation

65
Monitoring Suppliers and Managing Risk

We have a Supplier Qualification program that uses services from Dunn & Bradstreet to monitor all active 

suppliers for Office of Foreign Assets Control (OFAC), Excluded Parties List System (EPLS), OSHA and 

EPA violations, as well as criminal proceedings and disaster events. We assess suppliers’ financial 

health, safety and use of diverse subcontractors before contracting with them, and suppliers who will 

have access to confidential data from Xcel Energy must undergo a data security review. We also 

periodically conduct key risk assessments, looking at categories such as commodity price risk, contract 

quality and governance processes.

All contractors who provide services or materials at company sites are required to complete a contractor 

health and safety questionnaire and submit five years of safety-related performance data. Our contractor 

safety department reviews this data and may reject a contractor or require a safety improvement plan. We 

continue to monitor safety performance once a contract is implemented.

All contracts include a clause requiring suppliers to abide by equal employment opportunity and 

affirmative action mandates prohibiting discrimination on the basis of race, color, religion, sex, national 

origin, actual or perceived sexual orientation or gender identity of an individual, or physical or mental 

disability. Additionally, all suppliers are expected to comply with our Code of Conduct.

Supplier Classifications

We classify our suppliers in four tiers based on a combination of overall supplier spend and criticality or 

risk to operations. Critical suppliers provide key materials and services required to support daily 

operations. We have identified 39 critical suppliers who are considered tier 1, independent of how much 

we spend annually with them. Tier 1 suppliers, including those who are critical to our operations, are part 

of our Supplier Relationship Management program. The program enables us to build longer-term 

contracts with these strategic suppliers and implement continuous improvement initiatives to benefit both 

the supplier and Xcel Energy in terms of costs and operations.

Suppliers are also tiered based on their total spend. See below:

Tier Annual Spending No. of Suppliers % of Annual Spend

Tier 1 More than $10 million 68 58%

Tier 2 Between $4-10 million 99 16%

Tier 3 Between $1-4 million 279 14%

Tier 4 Less than $1 million 6,001 12%

We support suppliers in non-tier 1 spend classifications through collaborative initiatives and programs. 

For example, Xcel Energy is a founding member of the ITASCA-Project in the Twin Cities, which is 

dedicated to helping smaller local suppliers grow through procurement opportunities. The ITASCA-Project 

group is made up of chief supply chain personnel from large corporations, such as Xcel Energy, U.S. 

Bank, Target, United Health and General Mills, who meet monthly to discuss ideas for supporting the 

local economy by growing the capacity of small- and medium-sized businesses.

Supplier Diversity Program

Our corporate policies underscore our commitment to supplier diversity by recognizing that it is in our best 

interest to encourage a broad base of supplier relationships. Using diverse suppliers contributes to the 

economic growth and expansion of the communities we serve. Our policy is to offer these businesses the 

66
opportunity to compete in our procurement for products and services. We develop and strengthen 

business relationships with diverse suppliers by:

• Conducting outreach efforts to seek, identify and encourage supplier diversity in our procurement 

processes

• Facilitating alliances and partnering

• Educating businesses about our procurement and business processes

• Identifying and encouraging subcontracting (tier two) opportunities with major suppliers when 

direct participation is not possible

We are an active member of the Edison Electric Institute’s Supplier Diversity Best Practices Group, as 

well as the National Minority Supplier Development Council, the Women’s Business Enterprise National 

Council and most local chambers of commerce in our operating territories. In 2014, we spent $385 million 

with diverse suppliers, directly and indirectly. 

 2014 Spending with

Annual Spending with Diverse Suppliers Diverse Suppliers by State

Dollars spent % of total 

purchases

2014 $385 million 10.3%

2013 $364.7 million 9.3%

2012 $265.0 million 8.7%

2011 $248.0 million 8.3%

2010 $208.9 million 7.1%

2009 $153.1 million 6.9%

2008 $180.8 million 7.2%

Learn more about our supplier diversity program.

Dollars spent

Colorado $83.3 million

Michigan $1.6 million

Minnesota $74.1 million

New Mexico $17.8 million

North Dakota $0.2 million

South Dakota $1.5 million

Texas $32.4 million

Wisconsin $7.5 million

Other $166.1 million

67
Community Investment

We serve the energy needs of hundreds of cities and towns throughout our service territory, and we are 

integral members of those communities. We are literally connected to the communities we serve through 

active and ongoing investment in their infrastructures.

We believe we have a responsibility to have a positive impact in all we do—as a good neighbor, 

community advocate and environmental steward. Our community impact is far-reaching—from charitable 

giving to employee volunteering to economic development and support for energy assistance programs.

2014 Xcel Energy Total Community Giving

Corporate Giving & Community Investment (managed through the Xcel Energy 

Foundation)

 $12,965,125

Volunteer Time $879,770

Energy Assistance $29,391,730

Economic Development $1,828,738

Total $45,065,363

Learn about our support for energy assistance programs and our low-income energy efficiency programs.

Xcel Energy Foundation

The mission of the Xcel Energy Foundation is to use the collective knowledge, resources and skills of our 

staff and colleagues to make a positive impact in communities throughout our service territory. Formed in 

2001 as the philanthropic arm of the company, the Xcel Energy Foundation oversees the charitable 

activities and supports the volunteer programs of Xcel Energy and its subsidiaries. The annual budget is 

determined by prioritizing what the Xcel Energy Foundation board hopes to accomplish with the available 

resources.

The foundation board is comprised of five directors and two officers who meet three times a year to 

approve monthly financial statements, as well as the annual budget. The board sets policy on a number 

of items, including the levels at which we provide matching funds for employee efforts and our focus 

areas for giving. They also oversee the foundation’s investments. The majority of Xcel Energy Foundation 

funding comes from Xcel Energy shareholder dollars.

See the Xcel Energy Foundation board of directors and staff.

68
Xcel Energy Community Investment (managed through the Xcel Energy Foundation)*

2012 2013 2014

Focus Area Grants $3,928,486 $4,105,455 $3,680,428

 STEM education $1,266,020 $1,412,510 $1,259,600

 Environmental stewardship $874,620 $884,600 $737,698

 Workforce development $1,151,080 $1,159,255 $1,100,500

 Access to the arts $636,766 $649,090 $582,630

United Way Contributions $5,761,246 $5,236,942 $5,439,368

 Employee contributions $2,830,522 $2,753,178 $2,725,158

 Company match & corporate gifts $2,930,724 $2,431,346 $2,714,210

 Company in-kind $52,419

Matching Gifts Program $1,619,269 $1,240,523 $1,409,731

 Employee contributions $941,490 $660,836 $811,232

 Company contributions $677,779 $579,687 $598,499

Volunteer Matching Dollars $279,170 $236,480 $244,750

Disaster Relief $134,491 $116,570 $122,605

 Employee contributions $15,713 $8,410 $5,240

 Company contributions $118,778 $108,160 $117,365

Volunteer Paid Time Off (VPTO)

 VPTO Hours 14,690 13,017 16,179

 VPTO Dollars $537,834 $489,742 $635,020

Other Contributions $1,248,090 $1,298,497 $2,238,541

In-kind Contributions $116,911 $95,211 $74,452

Total $13,625,496 $12,819,430 $13,844,895

Employee Volunteer Hours 44,847 40,210 27,229

*Other Contributions are sponsorships, including tables, sports venues and charitable contributions 

made outside of the Xcel Energy Foundation.

In-kind Contributions refers to the value of donated equipment and supplies; it also includes supplies 

purchased for sponsoring or participating in community and volunteer events.

Employee Volunteer Hours are provided for those programs that we have a system in place for tracking, 

which include Volunteer Paid Time Off, Dollars-for-Doing and Volunteer Energy. Actual employee 

volunteer hours are greater than reported here because the company promotes and sponsors a number of 

employee volunteer activities in addition to the programs we track.

Volunteer Matching Dollars includes company payments to community organizations through Dollars-for 

Doing and Volunteer Energy.

Disaster Relief includes corporate contributions to the Red Cross and similar organizations, as well as

funds donated on behalf of customers through special product promotions.

Focus Area Grants

In 2014, the foundation distributed more than $3.6 million in focus area grants to promote STEM 

education, workforce development, environmental stewardship, and access to the arts in the communities 

we serve. More than 402 organizations across our eight-state service territory received grants, averaging 

just over $8,500 each.

Education Focus Area Guidelines

Environment Focus Area Guidelines

Economic Sustainability Focus Area Guidelines

Arts & Culture Focus Area Guidelines

69
2014 Focus Area Funding by Operating Company

STEM

Education

Environmental 

Stewardship

Workforce 

Development

Access to the 

Arts

TOTAL

NSPM $682,100 $333,500 $679,000 $338,700 $2,033,300

NSPW $54,500 $25,500 $15,500 $48,930 $144,430

PSCo $389,500 $321,698 $286,500 $92,500 $1,090,198

SPS $133,500 $57,000 $119,500 $102,500 $412,500

TOTAL $1,259,600 $737,698 $1,100,500 $582,630 $3,680,428

Signature Projects

STEM education is a major focus for the communities Xcel Energy serves. After all, a highly educated 

and trained workforce is imperative to local economic health because increasingly, more jobs require 

technical skills, including those in the energy industry. In part, our support for STEM comes from the 

overall importance to our company and the connection to Xcel Energy’s future workforce demands. We 

know firsthand the need for workers in this field, as more than half of our current jobs require STEM 

degrees or extensive math and science skills.

In our two largest urban areas―greater Twin Cities in Minnesota and metro Denver in Colorado―we 

have supported signature projects to help build stronger community partnerships and foster STEM 

education in a more meaningful way.

Minnesota Signature Project

In 2014, Xcel Energy formed a partnership with a network of high performing public charter schools in 

north Minneapolis. Harvest Preparatory School and the Harvest Network of Schools serve about 1,300 

primarily low-income students that are beating the odds and succeeding in school.

Under the partnership, the Xcel Energy Foundation provided a $50,000 signature grant for the 

organization to continue its mission. On the day of the check presentation, Xcel Energy employees, 

including chairman, president and CEO, Ben Fowke, worked with seventh graders on a special math 

problem to show how much energy is saved by replacing a few incandescent light bulbs with more 

energy-efficient compact fluorescent bulbs. This was just the beginning of hands-on work with the 

network. In early 2015, a team of Xcel Energy volunteer tutors began assisting students with math and 

reading in preparation for the spring Minnesota Comprehensive Assessments (MCAs). During Xcel 

Energy’s annual Day of Service, employee volunteers also helped prepare the network’s middle school 

grounds and the media center for the first day of school.

Colorado Signature Project

Xcel Energy partnered with the Colorado Education Initiative (CEI) through a signature project in support 

of the organization’s Colorado Legacy Schools program. CEI is an independent nonprofit that 

collaborates with the Colorado Department of Education, schools and districts across the state to 

accelerate achievement for all Colorado students. Through Legacy Schools, they seek to dramatically 

increase student enrollment and success rates in AP math, science and English courses at Colorado high 

schools.

In addition to a $30,000 signature grant from the Xcel Energy Foundation, our employees are mentoring 

students at Arvada High School. The goal is to close the opportunity gap and motivate students interested 

in pursuing college and career pathways in science, technology, engineering and mathematics (STEM). 

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Xcel Energy volunteers met with students informally, led engaging events and accompanied students on 

field trips to expose them to multiple opportunities in STEM careers. This Xcel Energy signature project is 

now a model for the program’s other industry partnerships in schools throughout Denver because of its 

success.

So far, results for the program show a 73 percent increase in AP scores for the 10 schools implementing 

the Legacy Schools initiative. CEI recognized Xcel Energy with a STEM Champion Award in 2014 for its 

support.

Xcel Energy was named a 2015 STEM JobsSM Approved Employer by Victory Media—a workforce 

development firm specializing in connecting classrooms to careers. This first-of-its-kind list rates 

companies on their responsiveness to creating and filling high-demand, high-growth STEM occupations. 

Being recognized as a top STEM employer shows job seekers that Xcel Energy is one of the best places 

to use their skills and the company is looking for the best to join its team.

United Way Campaign

Xcel Energy has a long-standing tradition of supporting United Way and the community organizations it 

assists. Each year, we sponsor an employee campaign that for the last five years has raised well over 

$2.5 million in employee and retiree pledges, which the company matches. The campaign also includes a 

number of special fundraising events—from chili cook-offs to sport tournaments. The campaign is a fun 

and rewarding part of working at Xcel Energy.

The company’s 2014 United Way campaign was one of the most successful, as we topped nearly every 

measure in our campaign history. A record number of employees participated this past year, contributing 

$2.7 million, which the company matched, for a total of more than $5.4 million raised. The funds will 

support United Way programs and hundreds of nonprofit organizations throughout Xcel Energy’s service 

territory.

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Contribution to Economic Development and Local Tax Payments

Xcel Energy is connected to the communities we serve through active and ongoing investment in their 

infrastructures, our local supply chain spending and the taxes we pay. We are active members in 

community chambers of commerce and economic development organizations throughout our service 

territory, and in 2014, contributed more than $1.8 million directly to these organizations. In addition, we 

often collaborate and work closely with our cities and towns as they try to attract and develop new 

business, expanding employment and revenue opportunities.

Our company also pays significant property and sales taxes. In many small communities, Xcel Energy is 

the largest tax payer.

2014 Sales, Use and Property Tax Payments (in millions)

Payments

Colorado $320.5

Kansas $0.4

Michigan $2.1

Minnesota $338.6 

New Mexico $32.7

North Dakota $3.0

Oklahoma $0.4

South Dakota $14.1

Texas $46.9

Wisconsin $26.1

Total $784.80

City Franchise Agreements

Xcel Energy has franchise agreements with some of the cities and towns where we provide natural gas 

and electricity service. These agreements give us rights to use the municipality’s alleys, streets and 

rights-of-way so we can, for example, run power lines along city property. As part of some of the franchise 

agreements, we collect a fee from our customers and pay that money to the cities and towns. The 

franchise fee is not a tax but rather a portion of the cost to operate a utility.

In 2014, we distributed more than $180 million in franchise fees to the communities where we operate. 

2014 Franchise Summary

Cities with Agreements Fees Collected and Paid

Colorado 120 $91,786,562

Upper Midwest 85 $68,575,931

Texas/New Mexico 94 $20,233,327

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Minneapolis and Xcel Energy Form Clean Energy Partnership

The city of Minneapolis, Xcel Energy and CenterPoint Energy have teamed up to form a novel Clean 

Energy Partnership to help the city reach its Climate Action Plan goals. Building on a long history of 

collaboration, the partnership will explore innovative approaches and enhanced outcomes in energy 

efficiency and the use of renewable energy in Minneapolis.

This first-of-its-kind effort was formally approved in October 2014. At the end of the year, the White House 

and U.S. Department of Energy recognized Minneapolis for its commitment to clean energy as one of 16 

Climate Action Champion cities.

In early 2015, the newly formed Clean Energy Partnership board held its first meeting and will be 

responsible for developing a work plan, as well as overall leadership and decision making for the effort. 

Minneapolis’ adopted Climate Action Plan will shape the board’s work plan and may include opportunities 

such as: 

• Giving customers additional choices for how their energy is produced 

• Increasing residential and business use of new and existing energy efficiency and renewable energy 

programs to help consumers control costs and reduce greenhouse gases 

• Supporting the development of renewable energy in the city 

• Exploring and implementing ways for the city to reduce its own energy use and increase its use of 

renewable energy 

A community-based group that represents the diverse interests of the city called the Energy Vision 

Advisory Committee will provide recommendations on the board’s work plan and gather feedback from 

critical Minneapolis communities. Learn more about the partnership at mplscleanergypartnership.org

As part of the partnership, Xcel Energy and Minneapolis finalized a new 10-year franchise agreement, 

with the option to extend the agreement for up to 20 years.

Learn more at the Minneapolis Clean Energy Partnership website. 

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City of Boulder Pursues Municipal Utility

Xcel Energy has worked with the city of Boulder for years as it explored forming a municipal utility to take 

over the company’s electric business in and around Boulder. The Colorado Public Utilities Commission 

(CPUC) confirmed in 2013 that the commission determines who serves Boulder County customers and 

the city of Boulder needs to provide the CPUC with its separation plans before moving forward with a 

condemnation case. In January 2014, Boulder appealed the CPUC’s orders to Boulder District Court in 

early 2014, and by May, Boulder’s City Council voted to form a municipal electric utility. In July, the city 

filed a condemnation case with Boulder District Court, formally beginning the process to attempt to take 

control of the electric assets in the area.

In early 2015, there were two key decisions from Boulder District Court related to Boulder’s effort to form 

an electric utility. The Boulder District Court affirmed the CPUC’s jurisdiction and ruling that prior to 

Boulder moving forward with a condemnation case, the CPUC must evaluate the city’s plans to ensure 

that they will not harm non-Boulder customers and the state-wide electric system as it relates to safety 

and reliability as well as the CPUC’s jurisdiction over the service of Boulder county customers. Most 

importantly, the CPUC routinely deals with these types of issues and has the expertise to properly 

evaluate the impacts of Boulder’s plans on other customers. The court affirmed the CPUC orders in their 

entirety, ruling that Xcel Energy has a certificate to serve customers outside the city of Boulder and that 

this property right cannot be taken away from Xcel Energy unless the city can prove to the CPUC that 

Xcel Energy is unwilling or unable to serve these customers. The court specifically ruled that the CPUC 

provides protection to customers outside the city who have no vote, and therefore, no voice within the 

municipality. The court also ruled that the CPUC must decide how the Boulder electric system is to be 

separated from the Xcel Energy system, prior to the city condemning the facilities, so that the CPUC can 

assure the electric system outside Boulder remains effective, reliable and safe. 

The Boulder District Court also dismissed Boulder’s condemnation lawsuit. The dismissal validates the 

court’s first ruling that confirmed the orders of the CPUC. Before Boulder moves forward with any 

condemnation case in the future, the CPUC must evaluate the city’s separation plans. Boulder is currently 

revising its plan and indicated they intend to file it with the CPUC in the coming months.

In addition to the rulings in Boulder District Court, the Federal Energy Regulatory Commission (FERC) 

must approve the city of Boulder’s plans as it relates to high voltage transmission assets and matters. As 

such, Xcel Energy asked FERC for a declaratory ruling, acknowledging that the FERC has jurisdiction 

over the transfer of assets greater than $10 million under the Federal Power Act.

At the end of 2014, the FERC weighed in on the case, granting Xcel Energy’s request for a declaratory 

ruling and confirming its authority in the case. The FERC’s decision supports the fact that there is a 

structured and necessary process Boulder must follow to protect the statewide electric system and all of 

our customers.

These decisions reinforce our position that there is a process to be followed which includes recognizing 

the important role both the CPUC and FERC play in maintaining the reliability of the grid and these 

commissions must be allowed to see the city’s plans and make rulings prior to the city trying to condemn 

our business. This process will protect the effectiveness, reliability, and safety of the state-wide electric 

system and all of our customers.

Xcel Energy remains committed to reducing carbon dioxide and increasing the use of renewable energy, 

which aligns with Boulder’s stated environmental goals. By working together, we can provide customers 

with options that take advantage of our mutual strengths. We continue to believe that this is the best path 

for success.

More information and full legal briefs are available at Your Boulder Energy.

74
PROMOTING A SAFE, PRODUCTIVE WORKFORCE

Xcel Energy’s workforce is a critical contributor to our company’s success, and our employees know the 

importance of their work to the communities we serve. While retirement will play a significant role in 

changing the composition of our workforce over the next 10 years, these changes enable us to find new 

ways to engage employees, implement more efficient and effective processes and build an inclusive and 

diverse team-centered culture that is ready to respond to the increasingly competitive energy industry. As 

we strengthen the talent acquisition, development and management strategies at Xcel Energy, we never 

lose sight of our No. 1 priority—providing a safe work environment for all employees, every day of the 

year.

Highlights:

• Xcel Energy continues its Journey to Zero workplace injuries, with employees achieving their 

seventh consecutive best-ever safety performance. Injuries were down 21 percent in 2014 

compared to 2013.

• In 2014, 82 percent of employees participated in Xcel Energy’s annual workforce engagement 

survey, with 82 percent of the respondents providing favorable responses to overall engagement.

• Employees volunteered more than 16,000 hours in 2014 supporting more than 1,300 community 

organizations through our Volunteer Paid Time Off program. Each full-time employee is allowed 

to use up to 40 hours annually to support community efforts. In addition, more than 290 

employees participate on nonprofit and community boards.

• New Hire Connection launched in 2014, a two-day, in-person orientation for all new employees. 

The program provides new hires with important information about the company and encourages 

them to develop lasting connections with others.

• We continue to rank favorably as one of G.I Job’s Top 100 Military Friendly Employers, which 

recognizes companies in the top 2 percent of employers dedicated to hiring and supporting the 

nation’s veterans. For 2015, we made the list for the sixth consecutive year and are ranked 22, up 

from 45 in 2014.

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Workforce Numbers

2014 Workforce Totals by Job Classification and State

The following table includes all full-time, part-time and temporary employees of Xcel Energy, but excludes 

contractors and employees on leaves of absence. It breaks down our workforce by state and by main job 

categories. Bargaining employees are full-time, permanent employees covered under collective 

bargaining agreements. Craft employees are temporary, project-specific employees also covered by 

collective bargaining agreements. Both bargaining and craft employees are combined to make up the 

percent of our workforce represented by unions. Non-bargaining employees consist of management and 

non-management employees based on the type of work they perform. 

State Bargaining

NonBargainingCraft/

Temporary Total

% 

Represented 

by Unions Management

NonManagement

CO 1,962 1,756 40 3,758 52.2% 540 1,216

DC 3 0 3 0.0% 3

MI 14 2 0 16 82.4% 1 2

MN 2,141 2,759 888 5,788 51.2% 940 1,819

ND 66 40 4 110 60.0% 11 29

NM 151 87 1 239 63.4% 24 62

SD 62 18 4 84 73.8% 6 12

TX 661 784 44 1,489 44.4% 175 609

WI 385 558 39 982 39.6% 93 465

Total 5,442 6,007 1,020 12,469 50.3% 1,790 4,217

* Please note that this employee count is different from the 10-K report because the information includes 

temporary employees and reflects workforce changes that happened immediately prior to year-end 2014

that were not recorded or reconciled until early 2015.

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Projected Retirement Eligibility 

2019 (5-year) 2024 (10-year)

Bargaining Non-bargaining Bargaining Non-bargaining

NSPM 35.6% 31.4% 51.4% 47.7%

NSPW 29.6% 40.8% 51.0% 55.3%

PSCo 38.7% 41.1% 48.9% 55.9%

SPS 16.4% 39.9% 29.0% 49.5%

Xcel Energy 

Services

Not applicable 25.4% Not applicable 39.8%

We project that in five years about 31 percent of our workforce will be eligible for retirement, increasing to 

about 46 percent of our workforce in 10 years. Please note that we do not expect all employees to retire 

once they become eligible.

2014 Employee Turnover 

Bargaining Non-Bargaining

NSPM 5.2% 7.6%

NSPW 4.0% 8.4%

PSCo 6.3% 8.7%

SPS 7.3% 7.6%

Xcel Energy Services Not applicable 15.0%

The average employee turnover for combined bargaining and non-bargaining employees in 2014 was 9 

percent. About 33 percent of turnover was the result of retirements, about 45 percent were resignations 

and the remaining 22 percent includes turnover for other reasons, such as unsatisfactory performance, 

misconduct, severance or death.

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Employee Demographics

78
Safety and Workforce Relations

Safety is first in our list of corporate values and for good reason. Given the nature of our business, Xcel 

Energy employees face numerous hazards while performing their jobs. None of us are immune to 

accidents or injury; however, we are committed to sending all employees home without injury every day. 

We track the safety performance of 325 workgroups, and of those groups, 76 percent have gone one year 

or more without an OSHA recordable injury. While recorded injuries were down 21 percent compared to 

2013, we need to remember safety is about more than numbers. It is about people. We are working to 

provide the policies, training and awareness campaigns to help people stay safe.

OSHA Recordable Incident Rate (in days)

EEI Top Quartile Actual Goal

2014 -- 1.00 1.17

2013 1.19 1.24 1.42

2012 1.24 1.47 1.55

2011 0.99 1.68 1.74

2010 1.00 1.90 1.99

2009 1.19 2.11 2.23

2008 1.39 2.42 2.35

2007 1.61 2.61 2.19

2006 1.80 2.53 2.53

2005 2.04 2.76 --

2004 2.09 3.40 --

2003 2.39 3.62 --

Xcel Energy recorded 123 OSHA recordable injuries in 2014, 32 fewer injuries than in 2013. Strains and 

sprains continue to be the leading injury type, with lacerations and fractures as the next most frequent 

injury type.

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Days Away, Restricted and Transferred Incident Rate (DART)

EEI Top Quartile Actual

2014 -- 0.51

2013 0.63 0.68

2012 0.66 0.83

2011 0.55 1.02

2010 0.49 1.07

2009 0.58 1.21

2008 0.59 1.41

2007 0.79 1.41

2006 0.79 1.42

2005 0.93 1.39

2004 1.02 1.79

2003 1.06 2.01

Xcel Energy recorded 63 DART injuries in 2014, 22 fewer injuries than in 2013. DART measures the 

more severe types of injuries.

Employee Work-Related Fatalities

2014 0

2013 1

2012 0

2011 1

2010 0

2009 0

2008 0

2007 0

2006 0

2005 0

2004 0

2003 0

2014 CONTRACTOR SAFETY PERFORMANCE

The chart below reflects safety performance for contractors working on operation and maintenance, as 

well as capital projects.

Hours 

worked

# of OSHA 

recordable injuries

Total case 

incident rate

2014 4,280,767 65 3.04

2013 4,024,229 60 2.98

2012 6,903,078 129 3.74

2011 6,798,655 126 3.71

For comparison, the national average occupational incident rate for construction is 3.7.

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Policies and Training

We have 21 corporate safety policies in place to address occupational safety and health issues. These 

policies apply to both bargaining and non-bargaining unit employees of Xcel Energy, as well as 

contractors of Xcel Energy as applicable. Our policies cover a wide range of topics—from working in 

confined and enclosed spaces to preparing for and responding to emergency situations.

As part of our corporate values, and to protect our employees and the public, working safely is the first 

consideration while planning or performing work. It is the role of Xcel Energy management to foster, 

develop, implement and provide training and communication about safety programs that will help reduce 

occupational injuries and illnesses at work. We expect employees to report unsafe acts, behaviors or 

conditions to management in a timely manner so that we may address these safety concerns. Any 

retaliation against an employee who, in good faith, reports a safety violation or suspected violation is 

strictly prohibited.

The Corporate Safety, Field Safety and Training, and Contractor Safety departments—all under the 

leadership of the vice president of safety and workforce relations—are responsible for overseeing 

implementation of regulatory compliance, providing technical consultation to business areas, tracking and 

communicating the company's safety performance, and fostering our safety philosophy and core value.

There are three key components to our safety and health culture: communication, safety committees and 

training.

• Communication: Within each business area, we verify that OSHA-required written programs are 

current and maintained at our facilities. Employees must be thoroughly briefed on site-specific 

hazards and protective measures prior to starting a job at an Xcel Energy operating facility or on 

electric and natural gas transmission and distribution lines and equipment. All employees or 

crews working on the job must be identified and emergency procedures must be put into place. 

Finally, we establish a system of hazard analysis, which includes hazard identification and 

control, in each business area and communicate this system to all affected employees. 

• Safety Committees: Our safety committees are organized and represented by both bargaining 

unit employees and management. The expectations for these committees are outlined by 

management and periodically audited to track progress and effectiveness. Managers in each 

business area provide support for safety committee findings and recommendations that align with 

our corporate values. 

• Training: Each business area develops training plans annually to include OSHA-required training 

and required elements of our Corporate Safety and Industrial Hygiene programs. We maintain 

thorough records of all training, including recording the names and dates employees who 

complete required safety training. 

We provide effective safety and health communications in various formats, including verbal instructions, 

written documents and posters, safety committee meetings, multimedia presentations such as video- and 

computer-based training, and online. Through these various media, all employees have access to 

required safety and health training, policies, programs and safety manuals, as well as federal or state

required communications. All Xcel Energy employees are expected to actively participate in the 

company's safety and health training and communications program.

Safety Campaigns

In 2014, we entered the fifth year of our ambitious Journey to Zero workplace safety campaign. Journey 

to Zero is about creating a safer work environment by putting safety at the forefront of everything we do. 

Our objectives include:

• Demonstrating support for safety improvements, starting with top leadership 

• Implementing a strategic approach aligning our efforts to advance our safety culture 

• Ensuring all safety efforts focus on common goals, making sense of all activities we do 

• Ensuring that employees take personal responsibility for their safety and the safety of others 

• Actively driving culture change through behavioral safety program and initiatives 

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• Implementing specific business-area safety plans focusing on four aspects: 

o Leadership effectiveness: Line of sight to executive levels; expectation setting; participation 

in safety leadership at all levels (including foremen and crew leaders) 

o Employee engagement: Taking responsibility for personal safety and the safety of crews; 

maximizing impact of safety teams; ensuring employees are engaged, effective and working 

together

o Incident prevention: Providing the right personal protective equipment; increasing 

awareness; communication and safety meetings; taking a proactive approach; outlining 

medical management; leveraging information, learning and insights

o Bargaining unit engagement: Engaging union leadership to be active in safety programs 

and improvements 

In 2014, we continued a number of important safety campaigns while also launching a number of new 

initiatives to help keep employees safe.

24/7 Work Injury Helpline and Nurse Pilot Project

Xcel Energy piloted an Occupational Health Nurse (OHN) program in 2014 to provide medical 

consultation for operations employees experiencing non-emergency work related injuries. Employees 

injured at work can contact an onsite OHN or a 24/7 Work Injury Helpline for help assessing their 

symptoms and recommendations for the best course of action. 

24/7 Safety Campaign: Bringing Safety Home

Xcel Energy’s 24/7 Safety campaigns are focused on maintaining a safety mindset around the clock. We 

want our employees to be safe both on and off the job. In 2014, we focused on distracted driving. 

Employees were encouraged to pledge to avoid distractions while driving as part of a U.S. Department of 

Transportation campaign.

Ergonomics Campaign

Sprains and strains continue to be the leading type of injury at Xcel Energy, resulting in approximately 45 

percent of all injuries and illnesses on an annual basis. Ergonomics sub-teams focus on three areas: 

education and training, tools and equipment, and policies and procedures. Two ergonomics specialists 

assist with training and education, assessments and sub-team work. 

Job Briefings

One of the most important things we do is to complete thorough job briefings with employees working on 

projects. We have improved the quality of our job briefings with some additional tools to assist foremen 

and managers.

OSHA's Electrical Power Generation, Transmission and Distribution Standard

The Occupational Safety and Health Administration (OSHA) revised the construction standard for electric 

power line work, making it more consistent with the corresponding general industry standard. The final 

rule became effective in July 2014. Xcel Energy launched an internal campaign with summaries and 

resources to explain revisions to standards to managers and employees.

Office and Non-Operational Area Safety Programs

Safety guides and resources were improved and made available for office workers and non-operational 

employees in 2014.

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Rules to Live By

Each month the Rules to Live By campaign focuses on reminding employees about a specific safety 

behavior, such as following seat belt safety or wearing personal protective equipment.

Safety News

All safety news items are now aggregated in a single weekly communications available through an easily 

accessible, online safety news hub. 

Who gives you permission to get hurt?

Injuries don’t just impact those who are injured—they also affect families, friends and coworkers. The 

campaign encouraged employees to think about this question before taking any risks.

Winter Safety

Xcel Energy provided employees with safety tips and reminders to stay safe through the holidays and 

cold weather months.

Life Sustaining Awards

The Xcel Energy Life Sustaining Awards are given to employees who go beyond the call of duty and save 

or attempt to save the life of another.

2014 Recipients of Life Sustaining Awards

Recipient Position Location

Albert Correa Journeyman Lineman—Serviceman Hereford, Texas

Jesse C Perez Line Apprentice 4th Year Seminole, Texas

Lonnie Todd Morris Field Operator Meeker, Colorado

Lynn A Dreher Lead Service Fitter B Lakewood, Colorado

Randy D Oehlert Working Foreman B Denver, Colorado

Rich Padilla Field Operations Supervisor I Lakewood, Colorado

Charles Garza Senior Storekeeper Arvada, Colorado

Donald R Goble HU/IS Corporate Functional Area Manager Minneapolis, Minnesota

Christopher (Troy) Myers Associate Designer Montevideo, Minnesota

Mark Frikken Iron Worker Foreman Minneapolis, Minnesota

Michele Huset Billing Support Analyst Roseville, Minnesota

Deanna Maslowski Billing Specialist Roseville, Minnesota

William Sconone Meter Reader 1st 6 Months Pueblo, Colorado

Austin McCracken Groundman 1st Year Golden, Colorado

Marissa Montoya Project Manager Denver, Colorado

Jose Campos Designer Thereafter Denver, Colorado

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Workforce Relations

Xcel Energy is committed to providing all employees with a safe, rewarding workplace that values their 

contributions and ensures fair treatment. We respect our employees’ right to organize if desired, and

approximately half of our workforce is currently represented by unions.

While each collective bargaining agreement is negotiated with a specific local union, we include equal 

opportunity clauses in all our bargaining contracts. We also operate in compliance with the policies of the 

National Labor Relations Board, the statutes of the National Labor Relations Act and the guidance of the 

federal Department of Labor. 

Xcel Energy recognizes that all parties benefit by coming together to achieve mutual goals, so we meet at 

least monthly with our unions to discuss new and ongoing issues. Employee safety is a mutual focus for 

both bargaining units and the company. Bargaining unit employees fully support and participate in the 

company’s safety advisory councils, committees, training and other programs. 

Interim bargaining has been used for the past 16 years to improve union relations and promote 

collaboration on business challenges that impact our operations and workforce. For instance, we 

frequently work on issues such as staffing plans for operational changes associated with large projects 

like Clean Air Clean Jobs in Colorado. We also hold regular meetings between management and labor 

unions to address grievances and avoid arbitration when possible.

Xcel Energy is still negotiating with the unions representing our employees in Colorado, Texas and New 

Mexico. Those contract disputes are scheduled to be resolved through interest arbitration in the later part 

of 2015, if not resolved through mutual agreement earlier. 

84
Talent Strategy and Transformation

Over the next 10 years, nearly half of Xcel Energy’s current workforce will be eligible to retire. While not 

everyone eligible will immediately retire, the company is facing both a challenge and an opportunity as we 

plan for the workforce of the future and envision what our workforce culture will be. We have made it our 

mission to proactively shape an environment that attracts and retains high quality employees who fit well 

in the Xcel Energy culture. We are developing inspirational and courageous leaders and holding

employees accountable for operational excellence. With an emphasis on a performance-based culture, 

we have implemented a number of innovative programs and improved our use of technology to 

strengthen planning and recruitment efforts.

Workforce Planning and Analytics

Planning is a key part of our overall workforce strategy, and having the roadmap, facts and data to make 

informed decisions is vital to proper planning.

In 2014, we developed a stronger strategic workforce planning process and model to support leaders in 

using the opportunities that arise as a result of turnover. By leveraging data and analytics, we have been 

able to more accurately determine what the organization will need in terms of size, type and quality of the 

workforce to achieve its objectives. The strategic workforce plan allows for a more intentional approach to 

deploying solutions that will address our changing workforce.

The Human Capital Report dashboard is a tool that includes standardized measures of cost, 

engagement, employee movement and performance management. It continues to be used to inform 

leaders on workforce costs and provide monthly information on the state of their organizations to help in 

decision making. 

Talent Pipeline and Attraction

Our recruitment strategy has changed dramatically over the past several years, transforming from a 

manual, time-intensive process to one that is more efficient and uses modern, automated tools and 

systems. We also proactively find qualified candidates for current or planned open positions, providing a 

strong pipeline of potential workers. Our objective is to find the right job candidates at the right time and 

place. 

Xcel Energy posted 2,263 requisitions in 2014, with internal candidates successfully filling about 828 (37 

percent) of these openings.

Technical schools

We have established relationships with a number of technical schools to ensure they offer the right kind of 

training and curriculum to prepare our future workforce. We provide internships and administer preemployment testing to students, so when job openings become available, we have a pool of qualified 

candidates to fill positions.

High Schools

We have started to place a higher focus on high school recruitment to attract students into our skilled 

trades. In our Texas and New Mexico regions, where our needs are greatest, we have actively reached 

out to more than 100 area high schools. In Colorado, we developed programs in cooperation with two 

85
Denver area high schools. In Minnesota, we continued our partnership with Step-Up Achieve to hire high 

school interns for both office and field positions. 

Targeted job fairs

We continue to support the employment events that are most successful in helping us hire qualified 

employees. We maintain relationships with several schools and local organizations within our service 

territories that hold job fairs. We have been successful finding qualified candidates at these events.

Search engine optimization

We continue to review and modify the way we market our jobs. The optimization of marketing technology 

over the last several years has increased visibility of our jobs to many job seekers who begin their search 

on search engines rather than national job boards. In 2014, we averaged 96,341 visitors to our career 

website per month, and on average, attracted more than 6,100 external applicants per month. 

Additionally, we refined our recruitment messaging in order to more consistently articulate who Xcel 

Energy is as an employer and characteristics we seek in prospective employees.

Niche job advertising

By leveraging partnerships with niche-oriented websites, we have been able to reach highly skilled 

workers whose skills closely match our job requirements. For example, by advertising relevant openings 

on nuclear engineering websites, we have been more successful in locating qualified applicants for these 

positions. Similarly, we are marketing jobs to local, community-based organizations to reach candidates 

within our service areas—reducing the need to relocate candidates while increasing the exposure of our

job openings to our customer community.

Veteran outreach

In 2014, we focused on building strategic partnerships with veteran organizations and engaging in 

activities to increase our visibility as a preferred employer for military veterans. We created and

implemented military-specific marketing and communications efforts, and attended more than 30 job fairs 

that specifically targeted military veterans throughout our service area. In May, we also signed a national 

Statement of Support with the Employer Support of the Guard and Reserve (ESGR), a Department of 

Defense office. While the number of veteran hires remained flat from 2013 to 2014, we increased the 

percent of external veteran applicants, especially in our Texas and New Mexico service territories.

Diversity outreach

Through our partnerships with Local Job Network and Diversity Minnesota, we are able to reach diverse 

job seekers in the places where they live and work. Partnerships like this, as well as our outreach events 

and marketing strategy, have enabled us to create robust, qualified diverse candidate pools for our open 

positions.

Active candidate sourcing

To locate candidates who may not currently be seeking employment, we use various online tools like 

LinkedIn to actively search for qualified candidates for open positions. This is an effective process for jobs 

that are more difficult to fill or jobs with small numbers of qualified candidates.

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Recruitment Videos

In partnership with operations business areas, we have developed recruitment videos to expand our 

outreach for a few areas where we expect to have the highest recruitment needs over the upcoming 

years. Our lineman, gas worker and engineering videos can be found on YouTube.

Diversity and Inclusion

We promote diversity and inclusion as a core value, as reflected in our Code of Conduct and corporate 

diversity policy. Our commitment to diversity and inclusion goes beyond human resource policies and 

practices. It is an integral part of who we are, how we operate and how we see our future.

We define diversity as differences in people (ethnicity, gender, age, race, national origin, disability, 

religion and sexual orientation), as well as differences in their thought processes, educational 

backgrounds, work experiences, personalities, lifestyles and cultural backgrounds. Inclusion is the act of 

building an environment that welcomes and embraces diversity. An inclusive work culture provides all 

employees with equal access to employment opportunities and development. 

Each Xcel Energy employee has the power to make a difference when it comes to creating an inclusive 

environment. We encourage our employees to remember Diversity Exists: Inclusion is My 

Responsibility.

Diversity and Inclusion Training

In 2014, more than 1,500 Xcel Energy employees participated in half-day diversity and inclusion training 

sessions that were conducted throughout our service territory. In addition, more than 50 managers 

attended diversity and inclusion training sessions. The classes are designed to provide knowledge, 

insight and skills to manage diverse teams and create an inclusive culture. 

Board Diversity

We seek diversity on our board of directors. In 2014, we had three women on our 11-member board of 

directors, one of whom is African American. We also have one board member who is Latino.

Business Resource Groups

To help achieve a more productive and inclusive workplace, Xcel Energy supports the formation and 

existence of Business Resource Groups (BRGs). Our BRGs are an inclusive venue for cultural exchange, 

community outreach and business solutions that contribute to professional and personal growth. These 

groups work together to help the whole company achieve Xcel Energy’s business goals. More than 800 

employees participate in our Business Resource Groups.

2014 Business Resource Group (BRG) Activity

BRG FUNCTION 2014 EVENTS & 

ACCOMPLISHMENTS

GCEEE (General Counsel 

Employee Excellence and Equality 

Committee)

Aids the general counsel in 

fostering a spirit of 

inclusiveness throughout the 

company

Participated in Step Up for 

Diversity to grow relationships 

between our corporate counsel 

and a diverse mix of attorneys 

outside our company.

Received Minority Corporate 

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Counsel Association’s 2014 

Employer of Choice Award for 

the Western Region for 

commitment to diversity and 

creating and maintaining an 

inclusive workplace.

MOVE (Military Ombudsmen for 

Veterans and Employees)

Supports our active military 

employees and those who 

have served in the military by 

focusing on the development, 

implementation and 

communication of programs 

and policies centered on the 

welfare of veterans and their 

families

Hosted several Serve Our 

Troops events. G.I. Jobs 

named Xcel Energy one of the 

nation’s 100 most militaryfriendly employers in 

recognition of our efforts to 

support veteran employees. 

The company also received 

Civilian Jobs’ Most Valuable 

Employer (MVE) award.

Employee Connection Network Connects new and existing 

employees and helps broaden 

all employees’ understanding 

of Xcel Energy as a whole 

through networking 

opportunities, meet-ups and 

community service events

Established a presence in all 

four operating companies. 

Partnered with human 

resources to update the onboarding program for new 

employees and hiring 

managers. In addition, the 

group hosts coffee chats and 

outings to baseball games to 

help build camaraderie.

SAGE (Supportive Association for 

Gay/Lesbian/Bisexual/Transgender 

Employees)

Works to help the company 

become and remain a leader in 

this area of workforce diversity 

by addressing issues relating 

to sexual orientation

Hosted a variety of employee

awareness events and panel 

discussions for all employees 

in both Minnesota and 

Colorado on the safety of 

inclusion, legislative updates 

and strides for equality.

Tribal Wind Supports diverse workforce 

initiatives and the Native 

American population through 

business initiatives, such as 

recruiting, retention, 

professional development and 

cultural awareness

Partnered with the Prairie 

Island Indian Community for a 

cultural awareness discussion 

and native dance. Promoted the 

Colorado Indian Education 

Foundation Scholarship 

program.

SOURCE (Strategic Organization 

Utilizing Resources for Career 

Enhancement)

Promotes career 

development, continued 

education, training and cultural 

awareness and addresses 

issues and concerns of people 

of color

Hosted a variety of employee 

events in Denver and 

Minneapolis. Conducted 

outreach at Manual High 

School in Denver to help build a 

pipeline of future applicants.

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Helped with the internship 

program and first-day internship

orientation. Give an annual 

Legacy Award to an employee 

who creates a legacy of 

diversity and inclusion at Xcel 

Energy.

WIL (Women’s Information Link) Identifies and implements 

innovative ideas and 

strategies for recruiting, 

developing, promoting and 

retaining women in nontraditional work roles in our 

Energy Supply business area

Participated in career path 

presentations for middle school 

girls in Minnesota and Texas. 

Supported recruitment events 

and involvement opportunities 

with the Society of Women 

Engineers. Held WIL 

awareness events in 

Minnesota, Texas and 

Colorado. 

WIN (Women’s Interest Network) Focuses on issues of interest 

to women, such as 

professional development and 

work/life balance

Provided a Power of WIN 

award to honor employees who 

help the Women’s Interest 

Network efforts within the 

company. Held the third annual 

speed networking event in 

Minneapolis, offering 

employees the opportunity to 

network one-on-one with 

leaders in different parts of the 

company. Hosted various 

professional development 

opportunities, including 

speeches, plant tours and 

leadership panels.

!Xcelente¡ Increases visibility of Latino 

employees within the 

company and community, 

promotes professional 

development and shares 

Latino culture through 

awareness, inclusion and 

celebration

Participated and supported 

numerous diversity and 

inclusion events around the 

company. During the holiday 

season, !Xcelente¡ sponsored 

an event for all BRG members 

to get together and celebrate 

the work completed throughout

the year.

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COUNCIL FOR DIVERSITY AND INCLUSION 

The Council for Diversity and Inclusion (CDI) is composed of leaders from each of our Business Resource

Groups (BRGs). CDI’s goal is to improve collaboration between BRGs and engage them in helping 

address key business challenges at Xcel Energy. 

CDI Vision: Be a diverse and inclusive culture 

CDI Mission: Create and foster a culture of diversity and inclusion that drives employee engagement by 

recognizing both individual and group contributions in support of corporate goals. Promote an 

environment that recognizes, celebrates and embraces diverse cultures, interests, perspectives and 

experiences in the communities served by Xcel Energy.

The following are some of the CDI’s initiatives to support our business priorities:

Initiatives in support of Operating Effectiveness

• Focus on business challenges and opportunities

• Gain and enhance regional support for diversity and inclusion through partnerships with leaders 

and employees

• Support the focus to increase the number of ambassadors in the communities where we live and 

serve

Initiatives in support of Engagement

• Host Xcel Energy leadership speaker series

• Expand BRG membership and involvement through special events

• Increase education by participating in employee events like the Knowledge Fairs and Day of 

Service

In addition, the following events took place in 2014:

• Ben Fowke, chairman, president and CEO of Xcel Energy, signed a National Statement of 

Support for Employer Support of the Guard and Reserve (ESGR). Paul Mock, national chairman 

of ESGR, and Tom Bullock, ESGR employer outreach director were with Fowke to witness the 

signing. Employers signing a statement of support pledge to:

o Fully recognize, honor and enforce the Uniformed Services Employment and Reemployment 

Rights Act

o Provide managers and supervisors with the tools to effectively manage those employees who 

serve in the Guard and Reserve

o Appreciate the values, leadership and unique skills service members bring to the workforce 

and encourage opportunities to employee guardsmen, reservists and veterans

o Continually recognize and support our country’s service members and their families in peace, 

in crisis and in war

• Each quarter, approximately five to 10 employees from Xcel Energy attended Talent, Inclusion,

Engagement, Diversity (TIED) events that are held with the different companies representing 

TIED. TIED is a leadership roundtable to bring together national and global organizations with a 

Colorado presence to share and establish best practices in workplace diversity and inclusion.

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EQUAL EMPLOYMENT OPPORTUNITY AND NON-DISCRIMINATION POLICIES

Our corporate Code of Conduct prohibits all forms of discrimination and promotes equal employment 

opportunities. We have Equal Employment Opportunity and Non-Discrimination policies in place that 

apply to all operating companies and subsidiary companies throughout the company. Xcel Energy 

provides equal opportunity in hiring, training, compensation, promotion, termination, transfer and all other 

terms and conditions of employment, without regard to race, color, religion, creed, national origin, gender, 

age, disability, veteran status, sexual orientation or any other protected class status in accordance with 

applicable federal, state and local laws.

Learn more about our supplier diversity program.

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Employee Engagement

As a company, we are focused on building a workforce of people who are highly engaged and bring their 

best to work every day. A significant part of our engagement effort involves empowering employees to 

create positive change within the company. By engaging our employees effectively, we can increase 

productivity, work more efficiently and collaborate across business areas to share best practices and 

solve problems. 

Employee Input and Participation

Our 2014 employee engagement survey had an 82 percent participation rate with an 82 percent overall 

engagement score. A portion of the survey includes questions to assess employees’ belief that 

management listens to and acts on issues identified in the annual survey. In addition to survey results, 

our leaders held employee focus groups this past year that identified areas where the company could 

improve. Based on analysis of all results, the company is focusing efforts on shortening the length of time 

to make decisions, as well as increasing process efficiencies.

Employees have several opportunities to share input with Xcel Energy leadership throughout the year. 

They can submit anonymous comments as part of the engagement survey and ask questions during 

regular leadership webcasts and face-to-face meetings.

Employee Recognition Programs

Employee recognition is a powerful tool that can contribute to improved bottom-line results by helping 

build trust, engage employees and improve productivity.

Power of Recognition

The Power of Recognition program supports employee engagement by providing tools for Xcel Energy 

leaders and employees to recognize individuals whose work supports the value, brand and goals of our 

company. We have a corporate budget of $1.2 million to support this program to ensure our employees 

are recognized for deserving efforts. In 2014, there were 12,101 recognition moments.

Years of Recognition

Our Years of Contribution program honors employees for contributions and accomplishments during their 

careers with Xcel Energy. Recognition occurs at an employee’s five-year anniversary with the company, 

every five years after that and upon retirement. In 2014, 1,714 years of contribution and 364 retirements 

were honored.

Positive Effect

Xcel Energy employees are encouraged to be involved and make a “Positive Effect,” both at work and in 

the community. We can each be an expert, advocate and champion for the company. Throughout the 

year, employees have the opportunity to learn more about Xcel Energy and to volunteer and support the

company’s initiatives through the ambassador engagement program.

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Xcel Energy has a number of communication tools in place internally to keep employees informed and 

connected, including:

• Daily news and an employee news magazine

• An online knowledge base

• Executive and other webcasts

• Business Resource Groups

• An enterprise social media network

• Trainings and new employee orientation

Employees are encouraged to support their communities through a number of volunteer and charitable 

programs, including: 

• Volunteer Paid Time Off (VPTO): Full-time employees are eligible for up to 40 hours per year to 

volunteer for nonprofit organizations in our service area to help strengthen the communities we 

serve.

• Dollars-for-Doing: The Xcel Energy Foundation matches each hour employees volunteer for up 

to 100 hours annually per employee at a rate of $10 per hour.

• Matching Gifts: The company matches employee and retiree charitable donations of $50 or 

more dollar for dollar, up to $750 for nonprofit organizations and up to $2,000 for higher education 

institutions.

• Day of Service: The company’s largest volunteer day where employees demonstrate collectively 

their community spirit. 

• United Way: Xcel Energy sponsors an annual United Way campaign and matches the pledges of 

employees, retirees and contractors.

• Board service: We currently have about 290 employees serving on nonprofit boards throughout

Xcel Energy’s service territories.

Grassroots advocacy is important to Xcel Energy because our industry is so complex. We can help 

educate our friends, neighbors and community leaders by participating in:

• Legislative Day: We offer employees a special day at the capital in each of our jurisdictions for 

employees to meet their elected officials and learn more about the legislative process.

• Local events and meetings: Employees can represent the company at community meetings and 

special events.

• Political Action Committees: Employees can voluntarily participate in six different groups that 

are organized and run by employees.

Xcel Energy made a difference in numerous communities during our annual Day of Service on Sept. 6, 

2014. More than 3,000 employees, family members, friends and even customers volunteered for about 80 

nonprofit projects. Volunteers performed a number of tasks from packing food boxes to planting trees and 

cleaning. The total value of the time contributed for the one-day event was $271,000.

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Political Action Committees

Xcel Energy sponsors six Political Action Committees (PACs) organized and run by employees, five at the 

state level and one at the federal level. Participation in the company’s PACs is completely voluntary and 

is part of the engagement activities that we offer employees.

Each of the company-sponsored PACs has its own board of directors elected by its members that make 

contribution decisions. All of our PACs are strictly voluntary, and there are no employment benefits based 

upon participation. Each complies with all applicable local, state and federal laws. 

Along with sponsoring PACs, Xcel Energy also from time to time makes contributions to organizations 

that advocate before Congress. To ensure transparency in those expenditures, we have established a 

corporate policy requiring annual disclosure of company expenditures above a certain amount to 

organizations that use a portion of those dollars for lobbying activities. 

2014 Xcel Energy Political Action Committee Activity

PAC No. of 

Employees 

Participating

Total Employee 

Contributions to 

PACs in 2014*

Total Contributions to 

Candidates and Political 

Groups in 2014

Minnesota** 231 $36,969.37 $40,475.00

North Dakota 250 $7,477.37 $11,000.00

South Dakota 232 $7,539.12 $9,000.00

Texas/New Mexico 

(SCOPE)

335 $37,678.36 $57,050.00

Colorado (Western 

PAC)

278 $21,955.68 $21,300.00

Wisconsin 274 $29,663.98 $32,015.61

Federal PAC (XPAC) 445 $262,953.51 $202,750.00

* Funds contributed by employees can accrue over multiple years and are not necessarily distributed in 

the same year they were contributed.

**The state PAC in Minnesota is operated outside of Xcel Energy in accordance with state law that 

prohibits the use of corporate resources to support the PAC; although, payroll deduction is specifically 

permitted in Minnesota. Activity for the Minnesota PAC is only included in this report for transparency and

informational purposes.

See our political contributions policy and annual report. 

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Total Rewards

Xcel Energy is committed to providing employees with a market-competitive compensation and benefits 

package. We seek to offer programs that are aligned with the external market and attractive to our 

employees, while finding ways to manage costs to keep our benefits programs financially viable. 

Our Total Rewards Statement tool is offered to most of our employees and shows them the full value of 

the benefits package we provide. It offers a personalized snapshot of pay and benefits information, as 

well as links to additional program and service information. Employees can access their individual 

statements online.

Example Employee Statement

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Benefits

A significant portion of our investment in employees is made through a benefits package that remains 

consistently competitive in the marketplace. Our benefits package for employees often exceeds 40 

percent of base pay.

Xcel Energy continues to offer a basic pension plan along with a 401(k) savings plan, which is a 

demonstration of our commitment to partnering with employees to meet their long-term financial goals. 

Unlike many employers who have frozen pension plans or reduced contributions to 401(k) accounts, we 

continue to contribute to these plans as a sign of our commitment to provide savings vehicles that allow 

employees to be fully engaged while working, yet able to exit the workforce at an appropriate age. At Xcel 

Energy, we balance financial and workforce objectives with providing a fair and market-based benefits 

package, resulting in our ability to recruit and retain the best talent to serve our customers.

 

Xcel Energy Benefits Package for Full-time, Non-bargaining Unit Employees

Medical plan Includes medical, pharmacy and a Health Savings Account 

(HSA). Employees who enroll in our High Deductible 

Healthcare Plan (HDHP) are able to contribute pre-tax 

dollars to an HSA that can be used to offset current or future 

healthcare expenses not covered by the plan. This account 

accrues tax-free interest, is owned by the employee and 

carries over year to year. Employees pay reasonable and 

affordable premiums for the HDHP plan. In aggregate, 

employees pay approximately 25 percent of healthcare costs 

through their premiums, deductibles and co-insurance 

expenses. Xcel Energy pays the remaining 75 percent.

Dental and vision Xcel Energy covers 75 percent of dental plan premiums and 

up to 75 percent of vision plan premiums. 

Life insurance Xcel Energy covers the full cost of basic life insurance 

coverage and offers voluntary supplemental and dependent 

life insurance coverage.

Disability coverage Xcel Energy covers the full cost of long-term disability 

coverage for eligible employees and provides salary 

continuation in the form of short-term disability, paid time off 

(PTO), vacation and sick leave.

Work/life balance programs Includes Employee Assistance Program; adoption 

assistance; healthcare, dependent-care and transportation 

reimbursement accounts; transit pass subsidies; fitness 

center reimbursement; and wellness programs.

Professional development programs Includes tuition reimbursement and a variety of internal and 

external development opportunities.

Pension Xcel Energy provides a formula-driven basic pension plan to 

help employees prepare for a financially secure retirement. 

The pension benefit is based on an employee’s length of 

service and eligible compensation.

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401(k) savings plan Xcel Energy’s 401(k) Savings Plan allows employees to 

save for their future through automatic payroll deductions 

(pre-tax, Roth 401(k) after-tax or a combination of both). 

Employees can choose to invest their contributions using a 

variety of options (cash, bond and stock investments). Xcel 

Energy matches a portion of employee contributions. For 

new, non-bargaining unit and SPS bargaining unit 

employees, we automatically enroll new hires at 4 percent 

pre-tax savings with an automatic 1 percent annual 

escalation until 10 percent is reached. This results in a 

guaranteed company match of 2 percent for employees who 

do not waive coverage. 

Notes on benefits:

• Coverage for eligible dependents includes medical, dental, vision, life insurance and AD&D 

insurance.

• Employees whose families are composed of domestic partners and/or children of domestic 

partners have participated in Xcel Energy benefits since 1992.

• Bargaining unit benefits are based on the contract negotiated with a specific local union.

Health and Wellness

Studies have shown organizations that invest in their employees’ health and wellness have a more 

satisfying and productive work environment. Plus, investments in wellness support more educated 

healthcare consumerism and help us manage long-term cost increases related to healthcare. In 2014, our 

focus on wellness continued with a number of opportunities offered to employees.

My Health Choices

My Health Choices is our voluntary wellness rewards program that began in 2012. It is designed to 

encourage healthy lifestyle choices for employees and their covered spouses or domestic partners 

through financial incentives. More than 4,500 members participated in the program in the first year, with 

nearly 3,100 employees attending onsite biometric events to measure important health-related indicators, 

such as blood pressure, body mass index and cholesterol levels. 

The number of participants in My Health Choices increased to more than 6,000 employees in 2014, and 

the company contributed nearly $2.4 million toward the program. By taking steps to monitor and improve 

their health, participants were eligible to receive up to $450 deposited into a health savings account. Not 

only did the participants reap financial rewards, but they and their families also benefited in other ways, 

such as:

• Increased knowledge of personal health

• Increased knowledge of healthy choices related to identified health risks

• Increased preventive benefit use supporting early disease detection

• Earlier cancer detection through regular preventive screenings

• Weight loss across the employee population

• Disease progression slowdown

• Better clinical compliance for those managing their chronic health conditions

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Additionally, Xcel Energy continued to offer wellness coaching and care management programs in 2014. 

More than 550 employees participated in United Healthcare coaching programs focusing on topics like 

weight management, exercise, nutrition, tobacco use cessation, heart healthy lifestyle, stress 

management and diabetes. More than 1,200 employees participated in care management programs that 

offer assistance to those with conditions such as asthma, coronary artery disease, cancer, chronic 

obstructive pulmonary disease, diabetes and heart failure. 

Additional Wellness Activity in 2014

Onsite flu shot clinics Over 4,700 seasonal flu shots were given at over 80 sites. An 

additional 1,400 flu shots were administered through our new 

pharmacy benefit.

Health assessments 1,856 employees took the assessment to determine their health 

risk score and were offered programs to assist them in improving 

or maintaining health.

Fitness center reimbursement 

program

1,579 plan members received just under $196,000 in 

reimbursements for exercising at least eight times per month.

Onsite yoga classes More than 800 yoga classes were held at eight locations.

Wellness ambassadors 53 employees volunteered to be Xcel Energy wellness 

ambassadors at 35 worksites, championing a culture of wellness 

in various work areas.

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Professional Development

Total Rewards is more than pay and benefits; it also includes providing opportunities for the professional 

development of our employees. Xcel Energy is committed to the professional development of our 

employees and to maintaining an environment where learning and growth can occur. Employees are 

ultimately responsible for owning and managing their own professional development; however, we expect 

managers to encourage development through feedback, suggestions and support.

With this in mind, we offer employees resources and tools to support their personal and professional 

development, including a Learning Management System, which provides e-learning, virtual and traditional 

training options. We also provide employees with development planning tools, assessments and 

suggestions for practicing new skills and behaviors.

In 2014, employees completed a total of more than 420,073 internal learning opportunities. Additionally, 

our tuition reimbursement program provided approximately $979,000 to 352 employees in 2014.

2014 Professional Development Opportunities

Learning 

Programs

Completions 

in 2014

Opportunities

Online Courses 235,976 

completions of 

2,730 course 

titles

We offer an extensive catalog of online courses for employees to 

complete, ranging from technical and computer application training 

to professional and management training to compliance-related 

education and more. Some of these training programs are 

mandatory.

Classroom 

Courses

181,441

completions of 

1,896 course 

titles

Employees can choose to attend a number of different training 

programs that are taught in person, ranging from safety and 

compliance-related classes to professional development classes to 

technical trainings. Depending on job responsibilities, some of 

these courses are mandatory.

Career 

Development 

Assignment 

Program

24 The Career Development Assignment (CDA) Program is an 

intentional effort to support the development of high performing 

employees through cross-functional experience aligned to business 

needs. Employees may be pre-identified through succession 

planning or, in some cases, the opportunity may be posted. 

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Developing strong leaders at Xcel Energy is increasingly important to our succession planning efforts. 

Almost 1,000 employees participated in leadership development programs last year.

2014 Leadership Development Opportunities

Program Participants 

in 2014

Description

Talent Review 500+ Our talent review process identifies individuals who might be 

successors for critical positions at Xcel Energy. In all, about 230 

key positions have been identified and more than 300 leaders have 

been assessed. Through this systematic process, executives and 

managers complete and discuss assessments regarding the longterm performance, leadership potential and career aspirations of 

their employees. Working in teams, they determine the 

developmental readiness of each employee, create customized 

development plans and identify talent gaps.

Path to 

Leadership

150 The Path to Leadership program prepares employees for future 

leadership roles by providing them with mentors and formal 

education to develop the skills needed to be successful in future 

leadership roles. In 2014, 150 employees completed the program 

and a new class of 150 kicked off their year-long session. About 50 

leaders supported the program in a mentor or panel member 

capacity.

Front Line 

Leadership 

Development

199 Leaders of bargaining unit employees participated in the first 

module of the Front Line Leader program, covering topics like 

safety, business acumen and giving and receiving feedback. 

Module two of the program consisted of learning labs, which are 

experiential sessions with intact work groups where leaders 

practiced what they learned in module one. In 2014, 61 learning 

labs were completed.

Performance Management

Xcel Energy believes that is it important to differentiate our investment and to reward top-performing 

employees accordingly. We rely on performance management and performance reviews to identify our 

top performers. The performance review process begins with setting clear and measurable individual 

objectives that align with and support the goals of Xcel Energy. It's important for employees to see how 

their work impacts the larger organization.

During the 2014 performance review process, non-bargaining employees and leaders at Xcel Energy 

were measured on not only what they accomplished, but also how they went about accomplishing their 

goals. This method of measurement supports efforts to create a performance-based culture by driving 

long-term continuous performance across the organization.

Although job-specific expectations for each individual contributor have varied in the past, in 2014 we 

identified five common competencies that align with our corporate values and will be used going forward:

• Accountability

• Customer and Stakeholder Engagement

• Job and Business Expertise

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• Operational Excellence

• Relationship Focused

Similarly, all leaders at Xcel Energy are consistently evaluated on how well they perform in five areas of 

leadership:

• Strategist

• Operations Management

• Talent Management

• Self Management

• Relationship Management

At Xcel Energy, our leaders hold calibration sessions to discuss performance rating distributions within 

their organizations. Calibration supports a consistent application of the rating scale across the 

organization, as well as differentiation of ratings to provide more significant rewards to top performers.

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Leading Environmental Commitment

Xcel Energy’s clean energy strategy balances environmental improvement and cost while ensuring we 

continue to operate a reliable utility system. Our company is focused on making smart investment choices 

that customers want and value and that benefit the environment. These efforts include:

• Increasing the use of cost-effective renewable resources

• Helping customers better manage their energy use, save money and support the environment

• Modernizing our power plant fleet and retiring older, less efficient coal units

As we work toward a more diverse portfolio of cleaner, modern technologies, our system is stronger to 

better serve customers. For more than a decade, Xcel Energy continues to be ranked the No. 1 utility 

provider of wind energy in the United States, and we are applying the same dedication to increase the 

use of solar energy. Our portfolio of customer energy efficiency programs is extensive and recognized as 

one of the best in the country. We have spent the past decade implementing projects that reduce 

emissions and transform our generating plants. This began with the Minnesota Metro Emissions

Reduction Project, which significantly reduced air emissions from our Twin Cities-area power plants, and 

continues today with the Clean Air Clean Jobs project in Colorado. Beyond our clean energy strategy, 

protecting the environment is one of our core values. From recycling in our office buildings to water 

management at our plants and protection of wildlife habitat on the land where we have power lines—it’s 

part of our everyday operations.

Highlights:

• Since 2005, Xcel Energy has reduced carbon dioxide emissions by 22 percent and projects a 30 

percent reduction by 2020. If approved, our proposed Upper Midwest resource plan will reduce 

our carbon dioxide emissions in that region by 40 percent by 2030.

• According to the 2014 Ceres report: Benchmarking Utility Clean Energy, Xcel Energy is among 

the top U.S. utilities for renewable energy sales and energy efficiency saving. In 2014, wind 

energy was 16 percent of our total energy mix—four times the wind energy in the average U.S. 

energy supply, which is about 4 percent.

• We continue to set system records for wind production. Through advanced wind forecasting, we 

have improved our ability to predict wind availability by 40 percent, which has saved customers 

more than $49 million in fuel costs.

• Xcel Energy is well positioned to meet new requirements for mercury and other hazardous air 

pollutants beginning in 2015, thanks to early improvements made under comprehensive 

emission-reduction efforts in Minnesota and Colorado, as well as new controls installed at our 

coal-fueled plants in Texas.

• At Xcel Energy’s power plants in Texas and New Mexico, about half of the water we use comes 

from recycled municipal effluent. It is a practice we helped pioneer decades ago to help save 

fresh water resources.

• Under the company’s Avian Protection Plans, Xcel Energy has retrofitted more than 2,600 electric

transmission and distribution locations with equipment to protect birds.

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Emissions Numbers

Carbon Dioxide (CO2) Emissions

Historical for 2014:

103
104
Projected for 2020

Xcel Energy

Colorado

105
Texas/New Mexico

Upper Midwest

106
Air Emissions

Xcel Energy has reduced emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2) by nearly 60 

percent since 2005.

107
Find Xcel Energy’s current Toxic Release Inventory information filed with the U.S. Environmental 

Protection Agency. 

108
Emissions Reporting and Reductions

Today our emissions are lower thanks to a combination of renewable energy, energy efficiency and

power plant modernization efforts that include the retirement of older, less efficient coal units . Since 

2005, we have reduced emissions of nitrogen oxides and sulfur dioxide by nearly 60 percent from the 

generating plants we own. We also are on track to surpass our goal for reducing carbon dioxide 

emissions 20 percent by 2020 from 2005 levels, with current projections indicating a 30 percent reduction

companywide. Our clean energy strategy allows us to focus on those initiatives that produce the greatest 

benefits at the best price and positions us to meet future environmental regulations. Through this 

approach, we are meeting the many diverse—if not competing—interests of the people we serve by 

offering customers innovative solutions, keeping energy prices competitive, modernizing our 

infrastructure, investing in local economies and improving the environment.

CO2 Emissions Reporting and Third-Party Assurance

The CO2 emissions charts in this report show CO2 emissions from electricity produced at Xcel Energy 

generating plants and purchased from other suppliers. A system emission rate is included for each year. 

It provides the pounds of CO2 emissions produced for each megawatt-hour of electricity generated or 

supplied. Xcel Energy’s projected emission reductions are based on our most current energy forecasts.

We have provided only CO2, not other greenhouse gases, such as methane and nitrous oxide. These 

latter two emissions comprise less than 0.5 percent of total greenhouse gas emissions (CO2 equivalent) 

from electricity generation. Emissions reported here include biogenic CO2 from biomass power 

generation, as well as fossil CO2 emissions. However, biogenic CO2 is effectively carbon neutral, since 

compared to fossil fuels, the CO2 released from biomass combustion is part of a relatively short-term 

cycling of CO2 between ecosystems and the atmosphere. 

Electricity production is Xcel Energy’s most significant source of emissions. We consistently report 

emissions associated with electricity production in short tons and in pounds per megawatt-hour in our 

annual form 10-K and Corporate Responsibility Report. This allows users of these reports to follow our 

company’s emissions trend.

More comprehensive reporting of our greenhouse gas emissions is provided in the GRI Index for this 

report. See indicators G4-EN15, G4-EN16 and G4-EN17 for Xcel Energy’s Scope 1, 2 and 3 greenhouse 

gas emissions.

Xcel Energy publicly reports annual CO2 emissions, as well as other greenhouse gases, through a 

number of different reporting programs, including The Climate Registry, The Carbon Disclosure Project 

and the U.S. Environmental Protection Agency’s mandatory greenhouse gas reporting rule. These 

programs each use a unique reporting protocol and may represent emissions differently. While reporting 

protocols and formats vary, the information we report comes from the same data sources.

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Methodology

Xcel Energy uses methodology that the U.S. Environmental Protection Agency established for reporting 

greenhouse gas emissions. We follow The Climate Registry’s protocol for greenhouse gas reporting and 

use The Climate Registry’s comprehensive and electric utility specific protocols. The Climate Registry 

bases its protocols on both the World Resources Institute (WRI) standards and the ISO 14000 standards 

on environmental management.

Third-party assurance and verification

The Climate Registry (TCR) is a nonprofit organization established to provide consistent and transparent 

standards for calculating, verifying and reporting greenhouse gas emissions into a single registry for 

North America. Xcel Energy recognizes the value and importance of using a formal emissions protocol 

and completing third-party verification for emissions reporting. We joined TCR as a founding member in 

2007, and have since worked to third-party verify and register all of our CO2 emissions going back to 

2005. To date, verification and registration is complete for Xcel Energy’s emissions in 2005, 2006, 2008, 

2010 and 2011. We anticipate emissions for 2007 and 2009 will be verified and registered in 2015, and 

the process for verifying 2012 and 2013 emissions is underway.

To learn more about greenhouse gas reporting methodology and third-party assurance for our emissions, 

go online to The Climate Registry, the U.S. EPA greenhouse gas mandatory greenhouse gas reporting, 

the WRI protocol and ISO 14000. 

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Emissions reductions

We have a number of retirement, efficiency and emission control projects that are underway or were 

completed this past year which will reduce emissions and modernize our facilities.

Efficiency, Control and Retirement Projects for 2014

Location Project Description Completion Date

COLORADO

Pawnee Clean Air Clean Jobs emission control project: 

Installation of a lime-spray dryer and selective 

catalytic reduction to reduce SO2 and NOx

2014 (complete)

Hayden Clean Air Clean Jobs emission control project: 

Installation of selective catalytic reduction on 

Units 1 and 2 to reduce NOx

2015 (Unit 1)

2016 (Unit 2)

Cherokee 

Unit 3

Retire Cherokee Unit 3 in 2015 2015

TEXAS/NEW MEXICO

Tolk Unit 2 Low-NOx burner and separated over-fire air 

equipment to reduce NOx emissions about 30 

percent.

2014 (complete)

Harrington 1-

3 and Tolk 1-

2

Installation of activated carbon injection systems 

for achieving the goal to reduce mercury 

emissions by 90 percent.

2014 (complete)

UPPER MIDWEST

Sherco Units 

1 and 2

Emission control upgrades: Sparger project for 

additional SO2 reductions, as well as tuning and 

installation of combustion controls and coal mill 

improvements for additional NOx reductions

2014 (complete)

Sherco Units 

1 and 2

Installation of activated carbon injection (ACI) 

systems for mercury emission control with a 

goal of 90 percent reduction

2014 (complete)

Bayfront 1 

and 2 

Installation of fabric filters for particulate control 

and activated carbon injection for mercury 

control

2014 (complete)

Black Dog 

Units 3 and 4

Retire Black Dog Unites 3 and 4 in second 

quarter 2015

2015

Bayfront 

Unit 5

Bayfront Unit 5 will cease coal operations in 

2015

2015

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Clean Air Clean Jobs

Xcel Energy worked with a coalition of policymakers and legislators to support the passage of Colorado’s 

Clean Air Clean Jobs Act in 2010. Under the legislation, we were directed to propose and implement a 

comprehensive plan for reducing emissions of nitrogen oxides (NOx) by at least 80 percent from 900 

megawatts of coal-fueled generation.

We are now mid-way through implementation of our Clean Air Clean Jobs project, which the Colorado 

Public Utilities Commission approved at the end of 2010 after extensive public discussion and review. 

This year a new, highly efficient natural gas combined-cycle unit at our Cherokee Generating Plant will 

begin operations. It will replace about 700 megawatts of coal-fueled generation scheduled for retirement 

by 2018. So far, we have retired four aging coal units under the project, representing about 370 

megawatts. In addition, the 152-megawatt, coal-fueled Cherokee Unit 3 will be retired this year.

Also under the project, we are installing modern emission controls at two remaining coal plants, Pawnee 

and Hayden generating plants, and will switch a fourth unit at Cherokee Plant from coal to natural gas.

Once complete, the entire effort will reduce emissions of nitrogen oxides by about 86 percent, sulfur 

dioxide by 83 percent and mercury by 82 percent from plants included in the project. System-wide, it will 

contribute to a projected reduction in carbon dioxide emissions of 35 percent by 2020 from 2005 levels.

Our Clean Air Clean Jobs project is part of Colorado’s State Implementation Plan to address Regional 

Haze. It also will help the state and Xcel Energy meet other upcoming environmental requirements, 

including the U.S. EPA’s proposed Clean Power Plan. The entire effort will cost about $1 billion and is 

estimated to have an average annual rate impact of approximately 2 percent over a 10-year period.

METHANE

Methane emissions from Xcel Energy’s natural gas distribution system make up less than 1 percent of the 

company’s total greenhouse gas emissions, most of which are attributed to processes associated with 

electricity production. Nevertheless, we have worked to cost effectively prevent methane emissions 

through a combination of proactive system improvements and other efforts implemented as part of our 

voluntary participation in the U.S. Environmental Protection Agency’s (EPA) Natural Gas STAR program. 

In 2014, we reported methane emissions from our natural gas distribution system to be approximately 

498 million cubic feet. Emissions were reported under the EPA’s Greenhouse Gas Reporting Program, 

based on factors that the EPA provides to calculate emissions. Since Xcel Energy became a Natural Gas

STAR Partner in 2008, we have reduced the company’s natural gas emissions by a total of 274 million 

cubic feet—enough natural gas to fuel about 2,100 homes for a year. 

Xcel Energy’s methane emission reduction efforts include:

• Replacing the cast iron pipe and unprotected steel pipe on our system, originally installed 50 to 100 

years ago. In fall 2014, Xcel Energy completed replacing all 880 miles of cast iron in Colorado and 

Minnesota.

• Using pressure reductions and other methods to reduce methane emissions during pipeline 

maintenance and repairs.

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• Increasing efforts to prevent dig-ins and other damage to our systems. Our damage prevention 

program ranks in the top decile of utilities across the nation.

• Replacing high-bleed controllers on our distribution and high-pressure pipelines. We are currently 

working to replace the high-bleed controllers in our processing plants and are considering new 

programs to modernize the high-bleed controllers at our storage fields and compressor stations to 

reducing emissions at these facilities.

Read more about environmental considerations with natural gas and find information on our natural gas 

system improvements.

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Environmental Policy

Xcel Energy’s environmental policy approach seeks to balance costs and environmental benefits while 

maintaining a reliable utility system. We pursue proactive emission reduction and clean energy strategies 

to improve the environment, control costs and meet the interests of our communities. It is a sensible 

approach to providing clean energy for our customers.

Our efforts have already reduced considerable future environmental costs to our customers and risk to 

shareholders. In 2014, we advanced environmental initiatives and opposed some regulations when 

necessary to protect the interests of our customers, communities and shareholders. We regularly engage 

in discussions with policymakers, regulators, energy providers, the environmental community and 

customers regarding environmental issues, with the following principles in mind: 

• Xcel Energy strives to comply with all environmental regulations. We have developed and are 

continually improving our environmental management system to meet the compliance challenges 

of the next decade, including the growing complexity of environmental regulation.

• On behalf of customers, we have invested substantially in environmental improvements and clean 

energy. We continue to look for ways to proactively reduce environmental risk. These efforts in 

anticipation of laws and regulations can offer significant value in the form of lower long-term cost 

to customers. Xcel Energy’s proactive emissions reduction projects, such as Clean Air Clean 

Jobs and the Minnesota Metro Emissions Reduction Project, have allowed us to avoid the cost 

and disruption seen in other parts of the industry.

• We believe that environmental and climate policy should appropriately recognize the 

environmental benefits of our proactive efforts.

• Environmental and climate policy should drive forward the development of new, cost-effective 

clean energy technologies. As the nation’s No. 1 utility provider of wind energy and a leader in 

solar and energy efficiency programs, we are optimistic about the future opportunities that clean 

energy technologies present.

• Cascading environmental mandates, such as stack-by-stack or emission-specific compliance 

requirements, should be coordinated on a system-wide basis to maximize cost effectiveness and 

environmental benefits. 

• Flexibility mechanisms, such as alternative compliance options and market-based environmental 

programs, should be incorporated to implement rules. Flexibility yields real cost benefits to 

customers while maintaining environmental benefits.

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Policy and Regulatory Developments for 2014

The U.S. Environmental Protection Agency and state environmental regulators in 2014 continued to 

develop a broad set of environmental rules covering climate, air quality, water quality and coal ash that 

will likely require owners of many U.S. power plants to modify operations and install new environmental 

controls in the coming years. Meanwhile, continued low natural gas prices and declining prices for 

renewable energy have provided utilities with more cost-effective options. Many utilities are considering 

retiring aging coal plants and replacing them with natural gas-fueled generation rather than adding 

controls to meet new regulations.

Key policy, regulatory and legal developments this past year included:

• Greenhouse gas rules for electric generating plants 

Under the President’s Climate Action Plan announced in 2013, the EPA proposed three separate 

rules regulating greenhouse gas (GHG) emissions from new, existing and modified or 

reconstructed power plants. The EPA plans to finalize all three rules in summer 2015. 

o The proposed rule for new power plants would set maximum emission rates for coal and 

natural gas combined-cycle units built after January 2014. It effectively bans the construction 

of new coal power plants unless about half of the CO2 emissions can be captured and stored. 

This rule has limited implications for Xcel Energy since we have no plans for new coal plants. 

Nonetheless, we opposed the carbon capture and storage (CCS) requirement in our 

comments to the EPA since CCS does not meet the statutory requirement as an “adequately 

demonstrated” technology.

o The proposed rule for existing coal and natural gas combined-cycle units installed

before January 2014 would set interim (2020-2029) and final (2030) maximum GHG emission 

rates (pounds of carbon dioxide per megawatt hour) for the electric system in each state. This 

rule, which the EPA calls its Clean Power Plan, is described in more detail in this report. Of 

the three greenhouse gas rules, the Clean Power Plan will by far have the most impact on 

our company and the industry.

o The proposed rule for modified and reconstructed sources—existing sources where a 

modification increases hourly emission rates or where a retrofit exceeds half the capital cost 

of a new unit—would require a combination of best operating practices and equipment 

upgrades to meet a lower emission rate. The corresponding standard for modified or 

reconstructed natural gas combined-cycle units is the same as the standard for new units. 

The type of changes that might trigger these requirements are not common in the power 

industry.

• Interstate air quality 

The Cross State Air Pollution Rule (CSAPR) addresses long-range transport of particulate matter

and ozone by requiring reductions in SO2 and NOx from utilities in the eastern half of the United 

States using an emissions trading program. For Xcel Energy, the rule applies in Minnesota, 

Wisconsin and Texas.

Since the CSAPR was finalized, the rule has been subject to legal review before both the D.C. 

Circuit and the U.S. Supreme Court. The D.C. Circuit had vacated the rule and remanded it back 

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to the EPA in August 2012, but in 2014, The U.S. Supreme Court overruled the D.C. Circuit’s 

ruling. Following this outcome, the EPA has begun to administer the CSAPR in 2015. While there 

are still remaining issues for the D.C. Circuit to rule on in 2015 that could change the status of the 

CSAPR, the rule is currently in effect and Xcel Energy is complying with the rule. 

o Texas/New Mexico. Compliance costs for Xcel Energy’s operations in Texas and New 

Mexico are expected to be a small fraction of what they would have been in 2012 when the 

rule was first planned for implementation. Multiple changes to our system in the region have 

substantially improved our ability to comply at a lower cost of about $7 million annually.

o Upper Midwest. With the retirement of Black Dog Units 3 and 4 in early 2015, we hold

enough allowances to comply with the CSAPR in Minnesota at a low cost. However, we 

remain concerned that the final rule ignored considerable emissions reductions already 

achieved at the High Bridge and Riverside Plants. For Wisconsin, we have complied with the 

CSAPR’s predecessor rule since 2009. We plan to cease coal operations at Bay Front Unit 5, 

which will help us operate within the CSAPR emission allowance allocation for SO2, and we 

anticipate compliance with the CSAPR for NOx through operational changes or allowance 

purchases.

• Regional haze and visibility

The Clean Air Act may require power plants to install emission controls to reduce alleged haze 

and visibility impacts of SO2, NOx and particulate matter emissions on national parks and 

wilderness areas.

o Colorado. The EPA approved Colorado’s State Implementation Plan (SIP) for regional haze 

in 2012, which incorporates changes the company is implementing under its Clean Air Clean 

Jobs project, as well as emission controls installed at our Comanche plant. The changes 

address all currently known regional haze requirements. In addition, pending in the U.S. 

Court of Appeals for the 10th Circuit is WildEarth Guardians’ challenge to Colorado’s best

available retrofit technology (BART) determination for Comanche.

o Minnesota. The Minnesota Pollution Control Agency (MPCA) issued Minnesota’s regional 

haze State Implementation Plan (SIP), which identifies as best available retrofit technology 

(BART) the installation of NOx combustion controls and SO2 scrubber upgrades at Units 1 

and 2 of our Sherburne County Generating Plant (Sherco). The EPA has approved the SIP 

and accepted the emission limits for Sherco. Several environmental groups sued the EPA, 

asking the court to reverse the agency’s decision approving Minnesota’s haze plan and 

require the EPA to examine additional NOx emission reductions as BART for Sherco Units 1 

and 2. Separate litigation under the Reasonably Attributable Visibility Impairment (RAVI) 

provisions of the Clean Air Act alleges visibility impairment in Voyageurs and Isle Royale 

National Parks attributable to Sherco Units 1 and 2. 

Based on the current level of controls for particulate matter and the upgraded controls for SO2 

at Sherco Units 1 and 2, it is not expected that any further reductions of these pollutants 

would be required due to implementation of visibility programs. However, for NOx, the 

outcome of either lawsuit could oblige Xcel Energy to consider either selective catalytic 

reduction controls (SCR) or retirement for these units. If the Regional Haze litigation results in 

new revisions to Minnesota’s Regional Haze SIP, the currently selected controls for Sherco 

Units 1 and 2 might continue to be adequate, or the BART determination might be revised to 

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include SCR on one or both units. If the RAVI litigation results in a new BART determination 

process for Sherco Units 1 and 2, the currently selected controls might continue to be 

adequate, or the BART determination might be revised to include SCR on one or both units.

In either case, we are concerned that a requirement for SCRs would not strike the right 

balance between the visibility improvement that might be predicted to occur and the 

additional cost for customers.

o Texas/New Mexico. Xcel Energy owns two coal-fueled electric generating plants, Harrington 

and Tolk, located in the Texas Panhandle. These plants are the backbone of our electricity 

system in the region and a primary reason that our electricity rates are so affordable. Both 

use low-sulfur coal, and early on, were equipped with particulate emission controls. We have 

installed low-NOx burners on all units at Harrington and Tolk, and both plants use advanced 

neural networks that continually adjust operations to achieve efficiency and reduce 

emissions.

In March 2009, the State of Texas submitted to the EPA a revision to its State 

Implementation Plan (SIP) for addressing regional haze over the first planning period that 

runs 2008 through 2018. Texas submitted this SIP revision to meet the requirements of the 

Clean Air Act and the EPA's rules that require states to prevent any future, and remedy any 

existing, manmade impairment of visibility to assure reasonable progress toward the national 

goal of achieving natural visibility conditions.

The EPA proposed in 2014 to partially approve and partially disapprove the revision to the 

Texas SIP. The EPA’s proposed Federal Implementation Plan (FIP) for Texas would impose 

costs on our operations in Texas that we believe are not justifiable. By requiring two new 

scrubbers on our Tolk units, the EPA is proposing that our customers expend hundreds of 

millions of dollars for a visibility benefit that is estimated to be insignificant.

We believe that the EPA should not require the scrubber installations in this planning period. 

Instead, the agency should wait on this decision until updated data is available and the effect 

of new programs is known, rather than continuing to rely on data and modeling that are now 

more than 10 years old. In addition, by that time, we also would have a better sense of our 

compliance plans under the EPA’s Clean Power Plan. This would allow for more 

comprehensive planning to assure the best economic and environmental benefit to our 

customers, without impacting long-term progress toward the goal of attaining natural visibility 

in Texas’ national parks.

• Mercury and Air Toxics. Under national standards for mercury and other hazardous air 

pollutants from power plants, coal- and oil-fueled units larger than 25 megawatts are required to 

meet new emission limits. The standards apply to mercury, acid gases (hydrochloric acid) and 

non-mercury metals, such as arsenic, beryllium and lead. Our plants are complying with MATS 

requirements that took effect April 15, 2015. Some utilities and the mining industry have 

challenged MATS, but Xcel Energy is not part of this litigation. In November 2014, the Supreme 

Court agreed to hear the case.

 

o Colorado. Xcel Energy is well positioned to comply with MATS thanks to our Clean Air Clean 

Jobs project. Plus, the remaining coal units on our Colorado system are equipped with 

controls that meet all MATS emission requirements.

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o Texas/New Mexico. To comply with the new rule, we have installed activated carbon 

controls on the units at Harrington and Tolk generating plants with the goal of reducing 

mercury emissions by 90 percent.

o Upper Midwest. Xcel Energy is well positioned to comply with MATS thanks to early actions 

taken under the Metro Emission Reduction Project. Plus, we currently use activated carbon 

injection to control mercury emissions at Sherco and Allen S. King generating plants in 

Minnesota. Mercury controls were already required by Minnesota statute, and SO2 control 

improvements were needed for regional haze requirements. We also will cease coal 

operations at Unit 5 of our Bay Front Generating Plant in Wisconsin and Units 3 and 4 at 

Black Dog Generating Plant in Minnesota.

• Particulate matter. The EPA in December 2012 lowered the annual air quality standard for PM2.5

to 12 micrograms per cubic meter (μg/m3

) from the prior annual standard of 15 μg/m3. In 

December 2014, the EPA finalized its area designations for the lower PM2.5 annual standard and 

did not classify nonattainment areas in any of Xcel Energy’s states.

• Ozone. Ozone, commonly referred to as smog, is formed from the reaction of oxides of nitrogen 

(NOx) and volatile organic compounds (VOCs) in the presence of sunlight. Ozone levels are 

highest in the summer months. In 2008, the EPA finalized the current National Ambient Air 

Quality Standard (NAAQS) for ozone, setting the primary standard at 75 parts per billion (ppb). In 

November 2014, the agency proposed an updated Ozone NAAQS, proposing to set both the 

primary (public health) and secondary (public welfare) standards as eight-hour standards within a 

range of 65 to 70 ppb, and also seeking comment on levels for the primary standard as low as 60 

ppb. Ozone levels in our states could exceed the new standard. For example, some areas in 

Minnesota may not attain a standard of 65 ppb. However, we do not know where the EPA will set 

the final standard, whether areas of Minnesota will be classified as nonattainment, and if so, 

whether the Minnesota Pollution Control Agency will seek additional NOx emission reductions 

from power plants or focus instead on mobile and other sources. 

• Water quality. The EPA in June 2013 published proposed Effluent Limitations Guidelines for 

power plants that use coal, natural gas, oil or nuclear materials as fuel and discharge treated 

effluent to surface waters, as well as utility-owned landfills that receive coal combustion residuals. 

The proposal includes eight potential approaches, differing in the number of waste streams 

covered, size of the units controlled and stringency of controls. More stringent effluent limitation 

guidelines may go into effect with the final rule, anticipated in September 2015. Under the current 

proposed rule, facilities would need to comply as soon as possible after July 2017 but no later 

than July 2022. 

• Waters of the United States. In April 2014, the EPA and U.S. Army Corps of Engineers 

proposed a new definition of what water bodies and topographic features are considered Waters 

of the United States (WOTUS). This definition is the basis of the federal regulatory agencies’ 

jurisdiction under the Clean Water Act and triggers numerous permitting and spill prevention 

requirements. For instance, any person that discharges dredged or fill material into WOTUS must 

obtain a permit. The revised definition could impact permitting and wetland mitigation 

requirements for infrastructure projects and complicate the siting and construction of wind and 

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solar facilities. Xcel Energy submitted comments on the EPA’s proposed re-definition by the 

November 2014 deadline, and the agency is expected to issue a revised definition sometime in 

late spring 2015.

• Coal combustion residuals. In spring 2015, the EPA published its final rule for coal combustion 

residuals (CCR). The rule regulates CCRs or coal ash as a non-hazardous waste under Subtitle 

D of the Resource Conservation and Recovery Act (RCRA-D). The rule establishes minimum 

national standards for the design, operation and closure of landfills and surface impoundments. 

Beneficial use of CCRs as defined in the rule is exempted. The rule is unusual because it is selfimplementing, with the EPA exercising no direct permitting or enforcement authority. Based on 

our initial review of the final rule, we believe our costs for the management and disposal of coal 

ash will not significantly increase under the new rule.

• Cooling water intake. The EPA has been developing rules for cooling water intake structures 

under section 316(b). Cooling water intake structures that previously met state site-specific Best 

Professional Judgment determination likely face more stringent regulations and require additional 

equipment to protect aquatic biota. Under the final rule released in May 2014, closed-cycle 

cooling towers are not mandated, but all power plants using more than 2 million gallons of surface 

water per day are required to take measures to reduce aquatic impacts. This could have 

significant impacts and costs at some Xcel Energy power plants.

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Xcel Energy’s Response to the EPA’S Clean Power Plan

In the absence of comprehensive national climate legislation, the EPA is using its Clean Air Act authority 

to develop regulations for new and existing power plants. Xcel Energy has been working with the EPA, 

our state clean air agencies, other utilities and environmental stakeholders, advocating for efficient and 

effective policy based on our experience. After all, our clean energy strategy serves as a model for how 

states and utilities can work together to reduce emissions at the lowest cost to customers. We share the 

goal of establishing a workable, cost-effective and legally defensible strategy to address greenhouse 

gases and have encouraged the EPA to make targeted fixes to the proposed rule. With all that Xcel 

Energy has accomplished for customers, we want to ensure that these potentially far-reaching regulations 

recognize the value of state clean energy programs and Xcel Energy’s environmental leadership position.

The EPA’s Clean Power Plan is the proposed rule for existing power plants under section 111(d) of the 

Clean Air Act. The proposal sets emission rate targets for the overall electric system in each state based 

on four building blocks that include:

• Coal unit efficiency improvements

• Shifting generation from coal to natural gas combined-cycle units

• Expansion of renewable energy and preservation of “at risk” nuclear capacity

• Energy efficiency.

State environmental agencies are required to submit implementation plans by summer 2016—with 

possible extension to summer 2017 or summer 2018 for states working jointly with other states—or else 

accept a federal plan the EPA designs. The proposed rule provides some flexibility, since states are not 

required to use the same combination of building blocks to achieve their goals as the EPA used in setting 

their goals.

Xcel Energy has significant concerns with the rule as proposed:

• It uses a 2012 baseline and effectively sweeps away credit for the proactive reductions Xcel Energy 

and its states achieved prior to 2012. It sets more stringent targets for clean energy leaders than for 

states that have done relatively less to date. This in effect punishes our customers, since the next 

increment of reductions in the proactive states is likely to be more expensive, and sends the signal 

that utilities and states should have delayed taking action until mandated to do so. The rule also has 

relatively weak incentives for further reductions prior to 2020.

• It imposes relatively stringent interim targets that require many states to achieve most of their 2030 

goal by 2020 or soon thereafter. This could cause greater economic disruption, premature plant 

retirements and reliability issues, since the necessary infrastructure (gas pipelines, transmission, new 

power plants) cannot be built in such a short time after state plan approval.

• The building blocks are not technically feasible in all states, and the EPA has not fully considered the 

interactions among building blocks.

• The rule has significant legal shortcomings, representing an approach to regulation unprecedented 

under the Clean Air Act.

• The rule generally fails to recognize the integrated, interstate nature of the electricity system, and sets 

high barriers for states to collaborate. Emission reduction measures implemented in one state often 

have effects in other states, and cross-state collaboration may be desirable to take advantage of the 

lowest-cost CO2 reduction opportunities across a region. 

In short, the Clean Power Plan is unlike any other environmental rule in that compliance involves not the 

installation of a control technology, but an overall shift in energy policy toward lower-emitting resources. 

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Compliance would be analogous to state- or regional-level integrated resource planning, shifting toward 

more renewable energy and energy efficiency, increased natural gas use, reduced use and/or retirement 

of coal plants.

In response, Xcel Energy has proposed to the EPA targeted fixes that could better recognize early action 

by leading states and utilities, provide stronger incentives for further early action, and avoid the risks 

posed by the interim targets. We have urged the EPA to:

• Recognize the retirement of coal plants occurring prior to the 2012 baseline

• Account for the effect of renewable energy on the dispatch of natural gas combined-cycle plants

• Grant states the flexibility to establish their own emission reduction glide paths to the 2030 goal

• Allow leading renewable states to bank renewable energy for use in meeting their 2030 compliance 

obligations

• Fix technical problems in the rule that harm clean energy leaders

The EPA plans to finalize the Clean Power Plan in the summer of 2015. In the meantime, we have begun 

to work with the responsible agencies in several of our states to discuss key questions in the design of 

state implementation plans.

Environmental Considerations with Natural Gas Production

Xcel Energy relies on a consistent supply of natural gas for generating electricity and for distributing to 

customers for use in their homes and businesses. We are not a natural gas producer but purchase gas as 

a commodity. Our gas purchases are generally not tied to any specific well or production technique since 

generally all the gas produced combines as it flows into the national pipeline system.

Our customers are currently benefiting from low natural gas prices. Lower fuel costs have enabled us to 

make system improvements that contribute to the safety and reliability of our natural gas system with less 

impact to our customers’ bills. For instance, we are adding natural gas-fueled generating plants that will 

modernize and diversify our power plant fleet while also enhancing our ability to integrate more variable 

renewable energy.

The use of natural gas to produce electricity has lower emissions than coal, producing about half the 

carbon dioxide emissions for each megawatt-hour generated while also significantly reducing sulfur 

dioxide, nitrogen oxides, mercury, particulate matter and other emissions. From a resource standpoint, 

natural gas-fueled generation also significantly reduces water use on a per-megawatt-hour basis 

compared to coal and it produces no waste byproducts, like coal ash.

Today’s reduced natural gas prices are the result of production methods that have significantly increased 

supply. Hydraulic fracturing, commonly referred to as fracking, is a technique gas producers use to 

fracture shale rock to stimulate the flow of natural gas to the well bore so it can be more easily obtained. 

Fracking along with horizontal drilling—a technique that allows for the extraction of natural gas along 

sources that run horizontally such as shale rock—allow producers to reach a significant supply of natural 

gas that was previously inaccessible with conventional drilling.

Natural gas production is governed by federal, state and local regulations, with additional regulations 

under consideration. Natural gas producers currently face intense scrutiny around these techniques and 

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continue to refine their practices while the U.S. Environmental Protection Agency (EPA) and other 

scientific groups conduct more analysis around water safety, air emissions and gas production.

We expect the natural gas that we purchase and distribute to be produced responsibly and in compliance 

with the law. We encourage gas producers to adopt best practices and continue to reduce the 

environmental impact of natural gas production. It is important that additional regulation be done in a 

reasonable manner that assures continued access to affordable natural gas. We have seen evidence that 

this is possible, particularly at the state level.

We continue to work with the gas industry and environmental organizations to understand methane 

emissions from the natural gas delivery system. Participating in research studies is important so that we 

fully understand the potential issues associated with providing our customers energy service.

In 2014, we signed on to the Natural Gas Downstream Initiative, a collaborative effort with other major 

gas utilities, facilitated by MJ Bradley & Associates. It will support the work of leading natural gas local 

distribution companies to identify and encourage advanced programs that accelerate infrastructure 

investment and lead to the effective management and reduction of methane emissions within natural gas 

distribution systems. The initiative is focused on opportunities that can substantially reduce methane 

emissions and support safe, reliable and cost-effective service.

In 2013, Xcel Energy was one of 12 utilities that participated in a major study to measure methane

emission rates along the natural gas distribution system. The study, led by researchers at Washington

State University and the Environmental Defense Fund, found that upgrades to metering and regulating

stations, changes in pipeline materials and better instruments for detecting pipeline leaks have led to

methane emissions that are from 36 to 70 percent lower than current Environmental Protection Agency

estimates. Results of the study were published in Environmental Science & Technology in early 2015.

Learn more about hydraulic fracturing. 

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Renewable Energy

Clean energy from renewable resources accounted for more than 20 percent of Xcel Energy’s total 

energy supply in 2014, more than double what it was in 2005. We remain committed to expanding the use 

of renewable energy in the most economical way for customers.

As the No. 1 utility provider of wind energy in the country for 11 years running, we have found wind power

to be the most cost-effective renewable resource. It has grown to become an important component of our 

diverse energy portfolio. In 2013, we proposed to expand our wind portfolio by about 40 percent over the 

next couple years, from 5,080 megawatts to 7,078 megawatts in 2016. We have made similar 

commitments to grow the use of solar power on our system through a range of resources—from large, 

central solar plants to community solar gardens to customer-owned solar panels. In fact, our solar 

portfolio will more than triple by the end of 2016.

As our renewable energy portfolio grows, we are working to better integrate these resources onto our 

systems too. Specifically, we have projects underway to improve system operations, forecasting and 

storage.

Current and Projected Renewable Energy Portfolio in Megawatts (MW)

Wind Hydro Solar (AC) Biomass RDF/Landfill Total

Utility-Scale On-Site Total

Colorado 2,342 65 87 170 257 - 3 2,667

Texas/

New Mexico 1,526 - 50 8 58 - - 1,584

Upper Midwest 1,867 312 2 10 12 197 104 2,492

Total 2014 5,735 377 139 188 327 197 107 6,743

Projected yearend 2016 7,078 377 736 388 1,124 197 107 8,883

Projected by 

2020* 8,231 590 736 583 1,319 210 105 10,455

*Projected capacity includes approximately 500 MW of short-term Texas QF wind. Projections also 

assume expiring PPA capacity is replaced. Onsite solar projections are estimated based on current plans.

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State Renewable Energy and Portfolio Standards

Colorado Renewable Energy 

Standard

30 percent of retail sales by 2020, with 3 percent from distributed 

generation (DG), including at least 1.5 percent from retail netmetered DG resources and up to 1.5 percent from wholesale DG 

resources (defined as resources ≤30 megawatts located in 

Colorado) 

Michigan Renewable Portfolio 

Standard

10 percent by 2015

Minnesota Renewable 

Portfolio Standard

30 percent by 2020 with at least 24 percent of sales from wind; 

1.5 percent of sales from solar energy by 2020, with at least 10 

percent of this from on-site solar

New Mexico Renewable 

Portfolio Standard

20 percent by 2020

North Dakota Renewable 

Portfolio Objective

10 percent by 2015*

South Dakota Renewable 

Portfolio Objective

10 percent by 2015*

Texas Renewable Portfolio 

Standard

Based on statewide capacity, Xcel Energy’s requirement is about 

3 percent of retail sales in 2010 and 4 percent in 2015

Wisconsin Renewable 

Portfolio Standard

Statewide goal of 10 percent by year-end 2015, and each utility 

must increase renewable energy 6 percent over its baseline; for 

Xcel Energy this is 12.89 percent in 2015

*Indicates the state has a voluntary renewable energy objective 

rather than a mandated standard

Renewable Energy Credits

A renewable energy certificate or credit (REC) is created for every megawatt-hour of renewable electricity 

generated (1 REC = 1 MWh). RECs are created by statute or voluntary trading programs to promote 

market-based, cost-effective development of renewable energy. RECs can be disaggregated or 

separated from the underlying renewable energy and sold separately to utilities and other consumers. 

Xcel Energy uses RECs to confirm or validate compliance with state renewable energy standards 

throughout our service territory. Our company carefully tracks its REC ownership and works to comply 

with the rules and best practices around renewable energy claims. Generally, only parties that own or 

retire RECs can claim to use the renewable energy. 

Strategy and Sales

We continue to look for ways to increase the value of the renewable energy on our systems through the 

sale of RECs. In several states, Xcel Energy has more renewable energy on its system than is needed for 

compliance with renewable energy standards. Based on market opportunities, we sell some of our extra 

RECs. In 2014, we sold about 1.14 million RECs, about one-third what was sold in 2013. The renewable 

energy that generated these RECs came from Colorado, New Mexico, Texas and the Upper Midwest. Our 

customers benefit by sharing in any profits associated with the sales. 

Consistent with The Climate Registry protocols, Xcel Energy does not presently adjust its CO2 reporting 

for REC sales. However, because the treatment of CO2 attributes associated with REC sales under future 

greenhouse gas reporting protocols is uncertain, we have provided a chart to illustrate the potential effect 

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of an alternative CO2 reporting scenario, in addition to the actual carbon dioxide emissions shared in this 

report. This alternative assumes the avoided CO2 emissions related to renewable energy are added back 

to the company’s overall emissions when RECs are transferred. 

2014 Renewable Energy Credit (REC) Sales

Xcel Energy 

REC Sales 

by Vintage 

Year 2007 2009 2011 2012 2013 2014 Total

Colorado

 

283,203 283,203

Texas/New 

Mexico

 

11,803 

 

5,671 

 

62,863 

 

188,285 

 

169,957 

 

100,000 538,579

Upper 

Midwest

 

47,824 

 

74,873 

 

199,950 322,647

Total 11,803 5,671 62,863 236,109 244,830 583,153

 

1,144,429

Wind Power

Wind power has become an important component to our diverse energy mix, as it is our most costeffective renewable option. Our early actions to add wind energy at competitive prices and proactively 

comply with state renewable energy standards have benefitted customers and helped protect them 

against rising fuel and environmental compliance costs, all while reducing environmental impacts. For 11

consecutive years the American Wind Energy Association has ranked Xcel Energy the nation’s No. 1 

utility provider of wind energy. And the wind power on our systems continues to grow.

To take advantage of extremely competitive prices available in the market today, we will add nine new 

projects totaling 1,900 megawatts, enough to serve about 900,000 homes, throughout our service territory 

by 2016. Three of these projects were completed and began producing power last year.

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The following wind power additions are underway:

• Colorado: Two projects totaling approximately 450 megawatts, for a system total of about 2,600 

megawatts. The additions will save Colorado customers $231 million in fuel costs over 20 years. 

In October 2014, the 200-megawatt Limon III Wind Farm began operations.

• Texas/New Mexico: Three projects totaling almost 700 megawatts located in New Mexico, 

Oklahoma and Texas, for a total of more than 1,500 megawatts in wind purchases. The additions 

will save Texas-New Mexico customers between $481 million and $590 million in fuel costs over 

20 years. At the end of 2014, the 199-megawatt Mammoth Plains Wind Energy Center in 

Oklahoma and the 249-megawatt Palo Duro Wind Energy Center in Texas began operations.

• Upper Midwest: Four projects totaling 750 megawatts in Minnesota and North Dakota for a 

system total of about 2,600 megawatts. The additions will save Upper Midwest customers about 

$225 million in fuel costs over 20 years.

Wind Records

Our significant wind energy resources and ongoing efforts to improve system operations through better 

forecasting and other measures have resulted in multiple system records in terms of the amount of wind 

energy available to serve customers. Around midnight on Nov. 1, 2014, we set a new hourly system 

record with wind producing more than 61 percent of the electricity on our Colorado system. High wind 

generation levels are becoming increasingly more common, 2 percent of the time this past year, wind 

exceeded 50 percent of our energy production in Colorado on an hourly basis. 

Below is an overview of our peak hourly wind energy milestones in 2014:

System Percent of Load Served Date Time

Upper Midwest 46% April 27, 2014 3 a.m.

Colorado 61% Nov. 1, 2014 12 a.m.

Texas/New Mexico 35% Dec. 25, 2014 3 a.m.

Xcel Energy Total 38% April 27, 2014 2 a.m.

Wind Forecasting

Xcel Energy completed its fifth year using WindWX—one of the most advanced wind-production 

forecasting systems in the world. Through a multi-year research and development project with Global 

Weather Corp. (GWC), an affiliate company of the National Center for Atmospheric Research (NCAR), we 

helped develop this highly detailed wind-forecasting system. 

Wind power production is difficult to forecast due to its variability. Also, landscape features such as hills 

and trees can reshape wind speeds and directions, causing turbulence in ways that can greatly influence 

the amount of energy produced. In addition, most forecasting models are designed to generate 

information about winds near ground level rather than at 200 to 300 feet, where turbine hubs are typically 

located. 

The WindWX system uses real-time, turbine-level operating data and applies sophisticated algorithms to 

forecast the amount of wind power that will be produced. Through ongoing work with GWC, forecasts for 

a 168-hour period are provided every 15 minutes across Xcel Energy’s entire service territory—from the 

hills of western Minnesota to the plains of eastern Colorado and the flat expanses of the Texas 

Panhandle. 

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The forecasts, now available worldwide through GWC, are designed to help utilities make better 

commitment and dispatch decisions, including opportunities to power down less efficient power plants 

when sufficient winds are forecasted to help meet customer electric demands. Xcel Energy receives 

royalties from the sale of WindWX to other utilities and uses the funds to pay for hosting services and 

further development on the system.

The system has increased our wind forecasting accuracy by nearly 40 percent since 2009, and we 

estimate that this has saved our customers a total of $49 million through year-end 2014. The project’s 

success was honored in 2014 with a Colorado Governor’s Award presented by Co-Labs, a nonprofit that 

works to inform the public about the breakthroughs and impacts from the state’s 30 federally funded labs 

and research facilities

Xcel Energy, NCAR and GWC are currently collaborating on a third phase of the project to further 

enhance the sophistication of the WindWX technology. We are seeking to improve short-term forecasting, 

focusing on ramping and extreme weather events, introducing probabilities into the forecasting process, 

as well as exploring solar forecasting behind the customer meter. NCAR scientists and engineers are 

developing systems to help anticipate sudden changes in wind, to shut down turbines ahead of potentially 

damaging icing events and to predict the amount of energy to be produced by private solar panels on a 

daily basis.

Improved Wind Integration Efforts

While wind energy prices have declined to the point where wind can compete with new natural gas-fueled 

generation, wind can be expensive to operate and integrate on the electric system. Although improved 

forecasting helps to manage this cost, operational costs will continue to rise as wind production 

increases.

Xcel Energy continues to improve processes and seek additional opportunities to lower integration costs, 

including:

• Cycling less efficient base-load fossil fuel units offline to accommodate more wind generation; the 

approach reduces fuel costs and helps save about 233,000 tons of carbon dioxide emissions 

annually

• Using set-point controls and Automatic Generation Control of wind and thermal units, which lets 

wind farms operate at peak levels while reducing production from economical fossil fuel units

• Establishing a 30-minute flexibility reserve; after studying the amount of wind energy typically lost 

within 30 minutes, we implemented the new practice, which dramatically reduced costs 

associated with carrying power reserves to balance our wind resources

• Adding more flexible production resources that can be ramped up and down more efficiently to 

work with variable wind generation, such as the new natural gas plant being installed under the 

Clean Air Clean Jobs program in Colorado

Xcel Energy’s Colorado system is somewhat unique in that it is small and serves a limited geographic 

area, which can present challenges for integrating higher levels of wind energy. We curtail about 3 

percent of our total wind generation to reliably achieve annual wind production levels around 20 percent. 

To manage the cost and overall impact of curtailments, the company has taken the following steps:

• Negotiating purchase power agreements that include free curtailment hours

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• Conducting a special screening as part of the resource planning process to account for 

curtailment costs as we evaluate future resources

• Exploring opportunities to increase the flexibility of our Colorado system by developing a larger, 

organized market in the West; as a step in this direction, the company filed with the Federal 

Energy Regulatory Commission to enable joint dispatch of its resources with the resources of 

other Colorado utilities to allow for more efficient and cost-effective, real-time system operations

Learn more about wind power on our system.

Find information on our Windsource program.

Solar Power

Xcel Energy is approaching solar energy with the same commitment that made our company the No. 1 

utility provider of wind energy. We are investing in economical large-scale projects that serve all 

customers on our systems, in addition to offering customers the option to participate more through 

voluntary, customer-driven programs, such as Solar*Rewards® and Solar*Rewards® Community®

. 

Investing in solar power is an opportunity to further diversify our energy supply and meet customer 

interest in clean energy. At the end of 2014, we had more than 327 megawatts of solar on our system, 

enough to power about 71,000 homes and we have plans to more than triple this in 2016.

As we expand the use of solar power, we believe the policies that encourage its development must work

for all customers. Our objective is to meet the preferences and interests of our customers in a way that 

treats everyone equally and fairly, whether you are a customer who chooses to invest in more renewable 

energy or not.

Large, Central Solar Energy (Utility-Scale)

Large-scale installations make solar power available at the lowest cost, to the greatest number of 

people in the communities Xcel Energy serves. We support the development of large, central solar 

because of the benefits that come with the economies of scale.

These systems are developed with more sophisticated technology in optimal locations to maximize 

sun exposure. They produce up to 50 percent more energy panel-for-panel than the typical rooftop 

installation, due in part to tracking technology that is used to follow the sun, compared to fixed panels 

on most rooftops. For these reasons, large projects are lower in cost—less than one half the cost of 

rooftop solar to install per kilowatt.

Xcel Energy had 139 megawatts-AC of large, central solar on its systems at the end of 2014, with the 

following expansion plans underway:

• Colorado: Two approved projects totaling 170 megawatts, including purchases from the120-

megawatt Comanche Solar project in Pueblo, Colo., and the 50-megawatt SunPower San Luis 

Valley project near Alamosa, Colo.

• Texas/New Mexico: Two proposed projects totaling 140 megawatts, including purchases from 

two projects developed near Roswell, NM.

• Upper Midwest: Four approved projects totaling 287 megawatts, including a 100-megawatt

purchase from the North Star Solar project near North Branch, Minn., a 62-megawatt purchase 

from the Marshall Solar project near Marshall, Minn., and a 25-megawatt purchase from the MN 

Solar I project near Tracy, Minn.; in addition, the Minnesota Public Utilities Commission approved 

the purchase of 100-megawatts from the Aurora Solar project to be built at 20 locations across

Minnesota.

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The table below outlines the large-scale solar projects that currently supply Xcel Energy’s systems.

Large, Central Solar on Xcel Energy Systems

Facility 

Owner

System Type Size (AC) Location Online

SunEdison 

Alamosa

Combination 

concentrating and 

flat-plate 

photovoltaic

6.95 MW Alamosa, Colo. 2007

SunPower 

Greater 

Sandhill

High efficiency 

photovoltaic

19 MW Alamosa, Colo. 2010

SunEdison Ground-mounted 

photovoltaic (five 

10-MW sites)

50 MW Lea and Eddy 

counties, New 

Mexico

2011

Iberdrola 

Renewables 

San Luis 

Valley Solar 

Central 

photovoltaic

30 MW Alamosa, Colo. 2012

Cogentrix 

Alamosa Solar 

Generating 

Project

Central, 

concentrating 

photovoltaic

30 MW Alamosa, Colo. 2012

Solar 

Technology 

Acceleration 

Center 

(SolarTAC)

Multiple 

technologies

0.92 MW Aurora, Colo. 2012

St. John’s 

Solar Farm

Photovoltaic 0.32 MW Collegeville, 

Minn.

2010

Slayton Solar Photovoltaic 1.66 MW Slayton, Minn. 2013

Learn more about SolarTAC and Xcel Energy’s participation in this world-class solar testing and 

demonstration facility.

On-site Solar

Xcel Energy offers the Solar*Rewards® program in Colorado, Minnesota and New Mexico. We provide 

incentives to customers interested in installing solar systems on homes and businesses to help make the 

systems more affordable. In turn, the program and the renewable energy credits associated with the solar 

energy produced enable us to meet state renewable energy standards.

Read more about Xcel Energy’s Solar*Rewards program. 

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Community Solar

Solar gardens offer a convenient option for customers to invest in solar energy, especially for those who 

cannot or do not want to install solar panels on site. In Colorado and Minnesota, Xcel Energy offers 

Solar*Rewards® Community® for customers who want to participate in a shared, centralized solar 

installation.

Read more about Xcel Energy’s solar gardens programs.

Through our New Mexico Community Solar program, we own four photovoltaic systems located on 

community partner sites in eastern and southeastern New Mexico. The four systems installed in 2009 and 

2010 total 77 kilowatts and feature different types of technology, including rooftop and ground-mounted 

solar photovoltaic panels and single- and dual-axis panels. Projects are located at Clovis High School, 

Eastern New Mexico University-Roswell and Xcel Energy’s Hobbs Service Center. A key component of 

the program is educational outreach. We provide energy curriculum developed specifically for New 

Mexico schools. Students, as well as the general public, are able to access live and historical data 

measuring ambient temperatures, wind speed and levels of solar production at the sites. Find information 

on the program website. 

Learn more about solar power on our system.

Read about our work at SolarTAC. 

Responsible Solar Policy

As the energy landscape continues to evolve and the use of renewable energy grows, it is critical that we 

incorporate renewable resources in a fair, efficient and sustainable manner. Xcel Energy’s policy around 

solar and other clean energy resources is guided by these principles:

• We support the development of solar power as part of a diverse energy portfolio

• Cost should be a priority; all customers should have access to the lowest cost, most efficient 

renewable energy resources available

• Incentives supporting solar energy should be fair and transparent—subsidies should be reasonable 

and based on market pricing, and customers should know what and how they are contributing to 

develop clean energy sources

• Energy policy should meet the demand for clean energy in a manner that is equitable to all 

customers—those who choose to participate and those who do not

• All customers should pay their fair share of grid and system costs

• We will seek to offer customers a variety of solar options to meet different needs 

Net Metering in Colorado

Net metering is the method used to determine how customers with solar panels are compensated for the 

energy their systems produce. It was originally designed as an incentive to encourage the early adoption 

of rooftop solar and to grow a fledgling industry. As panel prices drop and more customers install solar, 

we have become increasingly concerned with the effect of net metering on non-solar customers. While 

customers with rooftop solar still use and rely on the electric grid, they avoid paying for its upkeep under 

net metering—and those costs are unfairly shifted to non-solar customers. To address this issue, we have 

opened conversations with our regulators, the solar industry, customers and other interested stakeholders 

on how to make solar energy sustainable and practical for all.

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In a plan submitted to the Colorado Public Utilities Commission (CPUC) in 2013, Xcel Energy proposed a 

way to improve the transparency of net metering by tracking and quantifying the costs that are shifted 

from solar customers to non-solar customers. In response, the Colorado Public Utilities Commission 

began a public process in 2014 to determine the future of net metering in the state. Xcel Energy is 

participating, along with the solar industry and other stakeholders, in a series of panel discussions with 

the Commission to examine:

• The present and expected impacts of net metering on Colorado utilities and their customers 

• The costs and benefits associated with on-site solar energy

• The efforts of other states across the country to address net metering

• The technologies and policies around solar power

In addition to the panel discussions, all participating parties have submitted legal briefs to respond to 

specific Commission questions or interests.

Minnesota Community Solar Gardens

Xcel Energy is aggressively expanding solar power in Minnesota to meet the requirements of the state’s 

new solar energy standard. Adopted in 2013, the standard requires investor-owned utilities to provide 1.5 

percent of power from solar energy sources by 2020, and 10 percent of this requirement must come from 

on-site or rooftop solar.

Beyond the requirement, Xcel Energy wants to provide customers new options for using solar 

resources—something we know they want. Our Solar*Rewards and Solar*Rewards Community programs 

both play a role in this effort, in addition to the state’s Made in Minnesota solar rooftop program 

administered by the Department of Commerce.

Xcel Energy’s Solar*Rewards Community program launched in mid-December 2014, and through April 

2015, we had received applications from third-party developers with plans to develop solar garden 

projects, totaling about 560 megawatts-DC of solar power. In March 2015, at the request of the Minnesota 

Public Utilities Commission, we submitted comments providing our perspective on how the program is 

unfolding.

As part of Minnesota’s solar energy standard, the legislature considered and passed the concept of 

community solar gardens, envisioned as small-scale solar installations—up to one megawatt—that 

allowed neighbors, nonprofits, churches and businesses to share access to a centrally located solar 

installation.

Many of the applications for solar garden projects that we received through April 2015 are more similar to 

large-scale solar. State statute set the size limit for solar gardens at one megawatt; however,

approximately 95 percent of the applications are for garden projects of more than one megawatt, with one 

as large as 40 megawatts. The size of these projects would likely require approving large-scale projects 

that will have significant cost for customers without the regulatory safeguards and oversight typically 

given to solar acquisitions of this size.

The impact of higher, small-scale solar pricing for large-scale solar developments will have a real impact 

on our customers. Small-scale solar gardens are more expensive to develop than large-scale 

developments, and the payment rate set under Solar*Rewards Community recognized this reality. We 

estimate that developing all of the garden applications received as of April 2015, including all those that 

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are over one-megawatt in size, would potentially increase rates by $60 million or more annually to 

customers who are not participating in solar gardens. 

Xcel Energy has provided the commission the results to date and our perspective in hopes that any 

adjustments can be made in the program’s early stages. We also have advanced garden projects totaling 

about 80 megawatts-DC that meet the one-megawatt size limit. We support the Solar*Rewards 

Community program and want it to succeed by getting the program right at the beginning. We have asked 

the commission to confirm our view of what constitutes a solar garden and is eligible for the 

Solar*Rewards Community program. In the interim, we will work with solar developers to keep the 

process moving forward.

Learn more about Xcel Energy’s commitment to solar and our policy developments.

Other Renewable and Alternative Energy Resources

Besides wind and solar power, Xcel Energy has nearly 700 megawatts of other renewable and alternative 

energy resources on our system, including hydroelectric, biomass, waste-to-energy and refuse-derived 

fuel.

Learn more about other renewable resources on our system.

Renewable Development Fund

Xcel Energy’s Renewable Development Fund (RDF) supports the startup, expansion and attraction of 

renewable electric energy projects and companies in Minnesota. The RDF also stimulates research and 

development into renewable electric energy technologies. Our RDF efforts are designed to increase the 

market penetration of renewable electric energy resources at reasonable costs, which benefits 

customers. RDF is financed by our Minnesota and Wisconsin electricity customers.

In March 2014, the Minnesota Public Utilities Commission (MPUC) issued a written order approving our 

grant award recommendations for cycle 4, the latest funding cycle from the RDF. These 

recommendations include 29 grant awards totaling $42 million, as well as six projects to be held in 

reserve. Grants were awarded in the areas of energy production, research and development projects, and 

educational research initiatives. Nearly 70 renewable energy proposals were considered for funding, and 

those selected predominantly feature solar technologies. See the full list of projects funded.

Projects that receive an RDF grant award are evaluated by a seven-member advisory board consisting of 

two representatives of environmental organizations, one representative of the Prairie Island Indian 

Community, an industrial/commercial customer representative, a residential customer representative and 

two Xcel Energy representatives. Xcel Energy recommends projects for the MPUC to approve. 

Learn more about the Renewable Development Fund.

Renewable Energy Trust

The Renewable Energy Trust (RET) is a voluntary, customer-driven charitable fund established in 1993 to 

help develop renewable energy sources in Colorado for the benefit of local schools, nonprofit 

organizations and community groups. Customer contributions to RET are tax deductible and are used to 

purchase and install renewable energy projects, such as solar electric systems for community 

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organizations that would otherwise be unable to afford the technology. We collected donations totaling 

about $64,000 from customers in 2014, and no grant awards were made during the year. 

Learn more about the Renewable Energy Trust.

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Energy Efficiency 

Energy efficiency is a cornerstone of our clean energy strategy. Today we help customers manage their 

energy consumption through one of the largest energy saving program portfolios in the United States. 

Customers save money, and we avoid emissions and the need to purchase or produce additional power. 

Since we began consistently tracking energy efficiency results in 1992, we estimate our customers have 

saved enough electricity to help us avoid the need for approximately seventeen 250-megawatt generating 

plants. In 2014, Xcel Energy customers saved about 982 gigawatt-hours of electricity through our energy 

efficiency programs, enough to prevent more than 550,000 tons of CO2 for the year, as well as other 

emissions. With results like this, energy efficiency is one of the most cost-effective ways for our company 

to reduce emissions and meet growing clean air requirements.

2014 Energy Efficiency Program Results: Conservation and Load Management*

State Spending Gas Gas Conservation

Participants Generator kW Generator kWh Participants Dth Saved

MN $ 100,858,729 2,092,507 114,023 481,325,941 582,405 849,698

CO $ 76,962,284 601,572 80,957 391,615,207 276,026 606,995

WI $ 11,288,934 8,119 10,303 55,524,707 5,912 296,285

TX $ 2,557,292 1,445 5,010 11,961,804 NA NA

NM $ 7,809,444 35,245 6,649 36,435,342 NA NA

SD $ 773,574 89,136 2,651 4,452,786 NA NA

MI $ 355,670 2,730 0 1,377,030 563 8,482

ND $ 375,522 398 479 7,626 1,609 13,567

Total $200,981,449 2,831,152 220,073 982,700,443 866,515 1,775,027

Electric Conservation & Load Management

*Achievements listed in this table are preliminary for 2014.

Read about our energy efficiency programs for customers. 

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Conservation at Xcel Energy Facilities

Just as we encourage customers to use energy efficiently, Xcel Energy looks for opportunities to use 

energy more efficiently at our own facilities. In 2008, our Property Services department developed the 

Sustainable Facilities Management program to align its activities with the company’s commitment to the 

environment. In 2014, three teams were organized to manage a number of environmental impacts 

associated with our buildings:

• Conservation Team

o Energy management

o Water conservation

• Environmental Safety Team

o Indoor air quality

o Water quality—well monitoring

o Green cleaning

o Site product safety—GREENGUARD Certified

o Lighting fixture and refrigerant compliance

• Sustainable Design Team

o LEED certification

The program’s accomplishments include:

• More than 8 million kilowatt-hours have been saved through the energy management initiative over 

the past five years. In 2015, the company will save another 750,000 kilowatt-hours through targeted 

energy reductions.

• Over the past five years, 143,176 therms of natural gas have been saved through the initiative, and 

an additional 20,000 therms will be saved in 2015.

• Almost 4.2 million gallons of water have been saved over the past five years, and another 300,000 

gallons are expected to be saved in 2015. 

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LEED Certified Facilities 

We continue to seek LEED (Leadership in Energy and Environmental Design) certification for our 

facilities. LEED is a U.S. Green Building Council certification program that recognizes sustainable building 

strategies and practices. To receive LEED certification, building projects satisfy prerequisites and earn 

points to achieve different levels of certification. LEED certification has four levels—Certified, Silver, Gold 

and Platinum—based on achievement in five areas: sustainable site development, water savings, energy 

efficiency, materials selection and indoor environment quality. 

Xcel Energy currently owns 14 facilities throughout our eight operating regions that are LEED certified:

Building Location Certification

1800 Larimer Denver, Colo. LEED Platinum Certified

401 Nicollet Mall Headquarters Minneapolis, Minn. LEED Silver Certified (registered)

Alamosa Service Center Alamosa, Colo. LEED Certified

Arvada Service Center Arvada, Colo. LEED Silver Certified

Ashland Service Center Ashland, Wis. LEED Silver Certified

Carlsbad Service Center Carlsbad, N.M. LEED Certified (pending)

Faribault Service Center Faribault, Minn. LEED Certified (pending)

Greeley Service Center Greeley, Colo. LEED Certified

Hugo Training Center Hugo, Minn. LEED Silver Certified (pending)

Montrose Service Center Montrose, Minn. LEED Certified

Maple Grove Fleet Building Maple Grove, Minn. LEED Certified

Newport Service Center Newport, Minn. LEED Certified

Red Wing Service Center Red Wing, Minn. LEED Certified (registered)

St. Cloud Service Center St. Cloud, Minn. LEED Certified (registered)

Learn more about LEED certification. 

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Clean Energy Partnerships

To keep pace with technological advancements and to address emerging issues, we participate in a 

number of successful, collaborative efforts. Through partnerships, we are able to join with others to learn 

about, test and promote technologies that offer the greatest promise for solving environmental concerns 

and for providing customers with more reliable, lower cost and cleaner energy in the future. 

SOLARTAC

After celebrating its grand opening in 2011, the Solar Technology Acceleration Center (SolarTAC) in 

Aurora, Colo., is now a world-class facility for demonstrating and validating some of the most advanced 

solar technologies available. There are seven founding and sponsoring members that occupy 90 percent 

of the 74-acre site and have invested about $30 million in the SolarTAC.

Xcel Energy recognized early the benefit to customers and became SolarTAC’s original founding 

member, an investment that has paid off. Several large-scale solar technologies fine-tuned at SolarTAC 

are now in commercial operation as part of arrays in New Mexico and Colorado producing more costeffective and reliable solar power for our customers. Developers also have been able to make 

adjustments for cold weather conditions before installing technology in our service area.

Xcel Energy has a unique opportunity at SolarTAC to study solutions to solar integration in a real-world 

environment, separate from the system that serves customers. We have installed a community energy 

storage project that is testing a more cost-effective way to integrate solar power in areas with high solar 

production. Working with the Electric Power Research Institute (EPRI), we are testing a 25-kilowatt 

battery integrated with four small photovoltaic installations that simulate a neighborhood with multiple 

rooftop solar power systems.

In 2011, we installed a 1.5 megawatt battery provided by Younicos (formerly Xtreme Power) at SolarTAC 

to evaluate how energy storage can aid in operating a distribution system with energy from large-scale 

solar facilities. Solar energy produced by a nearby solar array onsite was channeled through the battery 

before going to the grid. The study concluded in 2014 and a final report was produced, which overviews 

how the project provided greater insight and understanding into the abilities of battery storage to integrate 

variable solar generation. 

In addition to the testing work, several solar installations operating at SolarTAC are connected to the Xcel 

Energy electric system and serve our customers. Through agreements with other SolarTAC participants, 

we purchase nearly a megawatt of solar power produced at the site.

Read more about SolarTAC and our battery storage projects. 

Energy Innovation Corridor

Xcel Energy helped launch the Energy Innovation Corridor project in 2009 along with more than 20 

diverse partners, including the cities of St. Paul and Minneapolis, Hennepin and Ramsey counties, three 

other utility companies, the state of Minnesota, the University of Minnesota and numerous chambers of 

commerce, nonprofits and businesses. This first-of-its kind clean energy and transportation model 

focused on advancements in four areas: renewable energy, transportation, energy efficiency and smartgrid technologies. The Energy Innovation Corridor extends along the 11-mile METRO Green Line light-rail 

transit route between St. Paul and Minneapolis. In 2014, the new METRO Green Line began serving the 

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Twin Cities—with one stop along its route, the more energy efficient and freshly renovated historic Union 

Depot, which earned LEED® Gold certification and includes electric vehicle charging stations.

The Energy Innovation Corridor has quickly become a showcase for clean energy and transportation 

technologies. It includes many solar energy systems helping to power buildings and homes along the 

corridor, thousands of energy efficiency projects implemented, and clean transportation projects,

including nearly 60 electric vehicle charging stations now in use.

One project that Xcel Energy spearheaded as part of the Energy Innovation Corridor was SmartVAR. The 

SmartVAR pilot incorporated sophisticated capacitor controls and real-time information to intelligently 

monitor and control capacitor banks on the distribution system. The pilot successfully demonstrated an 

improvement in system efficiency by reducing losses on the distribution system, resulting in carbon 

reductions and energy savings. Because of this success, we embarked on an effort to install the 

technology on the distribution system throughout our service territory in Minnesota, North Dakota and 

South Dakota. By the end of 2014, we had installed 1,356 SmartVAR capacitor controls across 58 

substations, which we estimate will save 11.5 million kilowatt-hours of electricity annually and reduce

peak capacity by about 86 megawatts. The project will continue through 2016.

The Energy Innovation Corridor reports collective results for the entire effort from 2010 through the end of 

2014 as saving nearly 411 million kilowatt-hours of electricity and 16.8 million therms of natural gas, as 

well as avoiding nearly 1.6 million tons of carbon dioxide.

Find full information about the Energy Innovation Corridor and project results. 

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Environmental Management

Managing our environmental responsibilities continues to grow more challenging as the rules become 

more complex. Every day we work to comply with a multitude of requirements designed to protect the air, 

water, land and wildlife surrounding our operations. By improving our environmental impact and lowering 

emissions through our proactive clean energy strategy, we reduce our compliance risk. We have in place 

a strong environmental management system that guides our compliance efforts. It is based on a 

corporate-wide environmental policy for which all employees are accountable.

Environmental Management System

We have a formal environmental management system designed to ensure continuous improvement and 

compliance with all applicable environmental requirements. Our management system provides:

Oversight Board of directors—Nuclear, Environment and Safety Committee

Chairman, president and CEO

Executive Committee

Environmental Policy department

Environmental Services department

Risk analysis Goals and performance indicators at corporate and operating levels

Multidisciplinary teams for developing new compliance programs

Environmental Audit program

Policies & procedures Corporate environmental policy

Formal, documented procedures

Regular monitoring of new, evolving regulatory activity

Monitoring Compliance tracking system

Monthly performance reporting

Routine facility audits

Follow-up for compliance gaps Tracking for corrective action and internal audit findings

Training & communication New employee orientation

Site and topic specific employee training

Updates and information communicated through internal channels

Read our corporate environmental policy.

Compliance Results

We strive to operate in compliance with all federal, state and local rules and regulations. However, there 

are occasions when regulatory agencies issue notices of violation (NOVs) or other types of notifications of 

potential noncompliance for alleged exceedances of permit limits or regulatory requirements. These 

NOVs can potentially result in fines or penalties. Often there can be disputes about the alleged 

noncompliance, and even when it is our view that we remained in compliance, settlements are often 

reached to avoid the transaction costs of litigation and to cooperate with the regulatory agencies.

Every year as part of our internal and ongoing efforts to self-identify and self-correct any potential 

noncompliance issues, we conduct our own facility audits. In 2014, we conducted about 76 internal audits 

to ensure compliance.

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2014 Compliance Activity

Activity 2014

Notices of Violation or Compliance Advisories 5

Penalties Paid1 $7,500

External Agency Audits or Inspections 142

Internal Audits Conducted to Ensure Compliance 76

Learn more about Xcel Energy’s Environmental Management System.

Environmental Expenditures for 2014

Environmental costs include payments for nuclear plant decommissioning, storage and ultimate disposal 

of spent nuclear fuel, disposal of hazardous materials and waste, remediation of contaminated sites and 

monitoring of discharges to the environment. Increasingly stringent regulation has caused higher 

operating expenses and capital expenditures for environmental compliance.

In addition to nuclear decommissioning and spent nuclear fuel disposal expenses, costs charged to 

operating expenses for environmental monitoring and disposal of hazardous materials and waste were 

approximately:

• $361 million in 2014

• $275 million in 2013

• $263 million in 2012

• $265 million in 2011

• $256 million in 2010

• $225 million in 2009

• $213 million in 2008

• $173 million in 2007

Nuclear decommissioning and spent nuclear fuel disposal expense information is in our 2014 10-K .

Capital expenditures for environmental improvements at regulated facilities were approximately:

• $373 million in 2014

• $517 million in 2013

• $255 million in 2012

• $48 million in 2011

• $473 million in 2010

• $89 million in 2009

• $230 million in 2008

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Waste Reporting

Coal Ash Management

Coal-fueled power plants produce a number of coal combustion residuals or byproducts commonly 

referred to as coal ash. Xcel Energy plants consumed about 28.1 million tons of coal in 2014, which is 

supplied from mines in Colorado and the Powder River Basin in Wyoming. Throughout our system, we try 

to recycle coal ash whenever possible for beneficial use, such as in concrete products, roadbed material, 

soil stabilization, engineered-fill material and more. Ash that is not reused is properly disposed.

Coal Ash Summary (estimated in tons)

2012 2013 2014

Produced Reused Produced Reused Produced Reused

Colorado 767,389 424,780 931,002 394,522 874,062 290,353

Texas/New 

Mexico

333,753 333,753 324,244 324,244 335,074 335,074

Upper 

Midwest

586,293 87,677 658,392 123,697 886,106 186,428

TOTAL 1,687,435 846,210 1,913,638 842,463 2,095,242 811,855

Learn more about Xcel Energy’s coal ash management.

PCB Phase-out Effort

We have been phasing out equipment that contains PCBs from our transmission and distribution system 

for many years. The Toxic Substances Control Act of 1979 defines PCB equipment as equipment having 

a PCB concentration of 500 parts per million (ppm) or more, while PCB-contaminated equipment has a 

PCB concentration of 50 to 499 ppm. 

Xcel Energy has made dedicated efforts to remove all known PCB equipment from its system, including 

transformers, capacitors and other regulated categories of equipment. This equipment was targeted, 

removed and replaced with non-PCB equipment. In many cases, we retrofitted systems to accommodate 

the removal and replacement of regulated equipment with non-PCB equipment. 

Other phase-out efforts include the replacement of regulated equipment with non-PCB equipment as 

systems are upgraded. Any regulated equipment removed from the field is immediately disposed of and 

replaced with non-PCB equipment unless there are extenuating circumstances associated with the design 

or procurement of the equipment. Xcel Energy personnel are trained on PCB regulations and the proper 

identification, handling, removal and disposal of this equipment to facilitate phase-out efforts. 

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Aside from PCBs that are occasionally discovered during facility upgrade projects in small sealed or 

previously untested specialized equipment, most of the PCB and PCB-contaminated equipment left on 

our system is the result of cross-contamination occurring during manufacturing or maintenance activities 

prior to or shortly after the adoption of the Toxic Substances Control Act. 

PCB Contaminated Equipment and Oil Removed from the Xcel Energy System 

2011 2012 2013 2014

PCB and PCBcontaminated oil 

(gallons 

disposed)

30,597 53,470 23,075 25,951

PCB and PCBcontaminated 

equipment (units 

removed from 

service)

454 721 714 764

Investment Recovery

Xcel Energy actively works to recycle material that is no longer used or usable. Recycling simultaneously 

diverts waste material from landfills while conserving natural resources by becoming raw materials for 

production of new products. 

A unique program initiated in 2009 turns Xcel Energy’s waste polyethylene plastic pipe into a versatile 

plastic lumber product. Excess waste pipe from natural gas construction projects is collected and 

consolidated at company locations to ship to a recycling facility, where the pipe is then transformed into 

plastic lumber.

The table below illustrated the Investment Recovery group’s recycling activity over the last four-year 

period.

Recycled Waste Material Summary (in tons)

2011 2012 2013 2014

Scrap metal 15,805 10,633 8,924 15,050

Used oil 2,239 1,547 1,719 3,070

Scrap 

polyethylene 

pipe

64 52 57 83

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Waste Disposition Summary (in tons)

2011 2012 2013 2014

Hazardous 47 98 42 65

Universal* 37 30 35 37

PCB related** 365 449 438 335

Asbestos 1,308 2,221 553 271

Special*** 18,806 6,345 14,242 5,753

*Universal waste includes regulated waste such as fluorescent light bulbs, rechargeable batteries and 

mercury switches.

**PCBs (polychlorinated biphenyls) are chemicals controlled under the Toxic Substances Control Act. 

PCBs were historically used in transformer oil.

***Special waste includes oily materials recovered from our operations, such as rags, filters, soil and 

water.

Legacy Manufactured Gas Plant Projects

In the 1800s up until the mid-1900s, gas was manufactured using coal, oil and petroleum. It was used as 

natural gas is today, primarily for heating, cooking and street lighting. The U.S. Environmental Protection 

Agency (EPA) estimates that more than 50,000 manufactured gas plant (MGP) facilities operated in the 

United States between 1815 and 1960. They were owned by municipalities and corporations, including 

predecessor companies to today’s electric utilities. MGPs produced a variety of wastes and byproducts, 

including coal tar. Some of the waste and byproducts were sold for reuse or disposed off-site, and some 

were left at plant sites.

Given the extensive history of our operating companies—going back more than 100 years—Xcel Energy 

has inherited legacy MGP sites. All the plant facilities were closed and dismantled years ago, and some 

of the properties where the MGP once operated have been sold. Over the years, Xcel Energy has worked 

cooperatively with environmental agencies and communities to successfully investigate and/or remediate 

former MGP sites. We currently have investigation and/or remediation activities underway at eight MGP 

sites across our service territory.

One of Xcel Energy’s operating companies, Northern States Power Company-Wisconsin (NSPW), is part 

of an extensive remediation project underway in Ashland, Wis. During the late 1800s and early 1900s, the 

lakefront in Ashland was one of the busiest industrial ports in the country. It was the site not only of a 

legacy MGP, but also the site of lumber and wood treatment facilities, as well as a loading area for 

railroads. The MGP was operated at the site from 1885 to 1947 and provided gas for street lighting and 

businesses. Later the site was used for a city-owned landfill and waste water treatment plant. NSPW has 

owned a portion of the Ashland site since 1986. The site is being cleaned under the supervision of the 

EPA and the Wisconsin Department of Natural Resources (WDNR). The EPA has identified several 

parties responsible for the cleanup. Under an agreement with the U.S. Department of Justice, the EPA 

and WDNR, we have conducted phase 1 of the project, which includes remediation of the impacted soils 

and groundwater at the site. The project was completed in early 2015. In addition, we have initiated 

litigation against other potentially responsible parties (PRPs) for cost recovery of their fair share of the 

cleanup costs. Negotiations among the PRPs, EPA and WDNR are ongoing for the second phase of the 

remediation, which will address impacted sediments at the site in an area of Lake Superior’s 

Chequamegon Bay.

Learn more about the Ashland, Wis., project.

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Water Reporting

A reliable water source is essential to producing power at our hydroelectric and thermal generating plants. 

We carefully manage our water resources by seeking responsible and secure supply options, working to 

conserve water where we can and ensuring we maintain water quality, especially where water is used 

and then returned to the environment. For our hydro plants, water is the fuel that operates plant turbines 

to produce electricity. At thermal plants, we use water to produce steam and to cool equipment. Cooling 

makes up greater than 95 percent of a thermal power plant’s water needs, depending on specific plant 

operations.

Thermal plants generally use one of two cooling options that are each uniquely designed for optimal heat 

transfer to water. This allows the plants to operate at maximum efficiency and to generate the most 

electricity possible from the fuel source.

Open-loop Cooling. Water is taken from a river, lake or reservoir and used to cool and condense the 

steam that drives turbines to produce electricity. Water is then returned to the river, lake or reservoir in 

accordance with all state and federal permits or requirements and in a condition that protects water 

quality for human use and the environment. Nearly all of Xcel Energy’s thermal generating plants in the 

Upper Midwest and one plant in Colorado (Valmont Generating Plant) use open-loop cooling, also 

referred to as once-through cooling.

Closed-loop Cooling. Water runs through towers to cool and condense the steam used to drive turbines 

to produce electricity. Cooling towers require relatively low water volumes to operate efficiently. They are 

operated to minimize water withdrawals by reusing water several times in the cooling water system, and 

can also provide recycled water for other plant operations. Nearly all of Xcel Energy’s thermal generating 

plants in Colorado, Texas and New Mexico and one plant in Minnesota (Sherco Generating Plant) use 

closed-loop cooling. A portion of the water in closed-loop cooling systems may be returned to the river, 

lake or reservoir in accordance with all state and federal permits or requirements. Water may also be 

stored in evaporation ponds.

There are several advanced closed-loop cooling technologies that can be built into new thermal plants. 

While these systems require less water for cooling equipment, they may be less efficient for producing 

electricity and are best incorporated into facilities located in areas with extreme water scarcity that warrant 

the use of more expensive technology.

• Hybrid cooling uses both air and water for cooling. Air cooling reduces the need for water 

when ambient air temperature is sufficient to support the necessary cooling, but uses water 

during other times of the year when heat transfer to air is inefficient. Electric production with 

hybrid cooling requires more fuel and produces less electricity than water cooling because of the 

less efficient steam cycle and additional electric load required by cooling fans. Xcel Energy has 

one thermal unit in Colorado (Comanche Generating Plant, Unit 3) that uses hybrid cooling. 

• Dry cooling uses only air cooling to condense steam. In addition to being expensive to 

construct, dry cooling uses more fuel and produces less electricity than water cooling, due to a 

less efficient steam cycle and additional electric load required by cooling fans. Additionally, heat 

transfer limitations during some months may limit plant generation capacity, potentially requiring 

additional power purchases to support system demands. Xcel Energy does not currently operate 

thermal plants that use dry cooling.

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Managing Water Supply

Thermal Operations in the West and Southwest

In the semi-arid and arid states where we operate—Colorado, New Mexico and Texas—water is acquired 

for our thermal and hydroelectric plants through water rights and other agreements. We have strategic 

water resource plans that are updated annually to reflect our current operational requirements, local 

climate conditions and water use. Throughout the year we conduct a variety of activities to accurately 

predict and plan for future water supplies, which include forecasting plant water requirements based on 

anticipated electric generation; accounting for the water we need and use; monitoring snowpack reports; 

and studying stream flow forecasts, seasonal climate projections and changes to the Ogallala 

aquifer―the primary aquifer that underlies much of the region in Texas and New Mexico that we serve.

We have pursued an integrated water supply portfolio strategy, including owned or self-supplied water 

rights, reservoir storage, groundwater rights and a number of other supplies, including municipal and 

recycled water supplies. Our portfolio includes water from geographically diverse areas, including transbasin water imported from other basins. This diversity is critical for maintaining a resilient, reliable water 

supply in the arid, climatically variable western United States.

Xcel Energy is a Tier 1 water supplier, which means we own water supplies dedicated for our own use. In 

Colorado, our owned water supplies or rights are available depending on regional water supply conditions 

in accordance with Colorado's prior appropriation system. The recent historic multi-year drought in the 

West identified weaknesses in the regional water supply. Xcel Energy expended significant resources to 

address these issues and improve our water supply and the resiliency of our systems.

Other Tier 1 suppliers that we do business with responded similarly to drought conditions and improved 

their water supplies. They also adopted drought response plans to identify concrete steps for ensuring 

that suppliers meet their municipal and industrial water supply obligations. Further, they pursued the 

acquisition of geographically diverse water supplies originating in other river basins, enhancing the 

resiliency of their systems.

Finally, Xcel Energy has pursued recycled water where available and feasible, which minimizes the 

competition between water needs for power generation and needs for environmental, recreational, 

municipal or other industrial uses. Recycled water use has the added benefit of increasing the reliability of 

our water supply portfolio because it is virtually drought-proof.

According to the Colorado Division of Water Resources Cumulative Yearly Statistics 1996-2008, 

thermoelectric power generation makes up less than 0.5 percent of the state’s water usage, with 

agriculture making up 86 percent of usage and the remainder going to meet municipal, recreational and 

other industrial needs. We anticipate the western and southwestern portions of our service area will 

experience drought conditions in the future. We continue to work with water boards, management 

organizations, farmers and ranchers, utilities and local communities to develop innovative partnerships 

and agreements to help meet different water needs during dry times.

Learn more about our innovative partnerships and agreements. 

145
2014 Colorado Water Supply and Consumption

2014 Texas/New Mexico Water Supply and Consumption

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Thermal Operations in the Upper Midwest

In Minnesota, Wisconsin and other northern states where water is more abundant, our thermal plants are 

permitted to use and return water to nearby rivers and other waterways. We also take a strategic 

approach to water use in these areas by monitoring weather patterns and meteorological forecasting 

models to predict and prepare for an adequate water supply during times when unusually dry conditions 

are likely to persist. During drought years, we evaluate the use of alternative cooling options for each 

facility and implement prudent temporary measures to provide supplemental thermal cooling. In time of 

energy emergencies, our permits have provisions that allow some plant operating flexibility, along with 

additional environmental monitoring requirements to ensure protection of aquatic wildlife and biota.

2014 Upper Midwest Water Supply and Consumption

Hydroelectric Operations

Xcel Energy operates 26 hydroelectric plants, including six in Colorado, 19 in Wisconsin and one in 

Minnesota. These plants are built on rivers and other waterways where rushing water can flow through 

turbine generators to produce electricity. The Cabin Creek Hydroelectric Plant near Georgetown, Colo., is 

a pumped-storage hydroelectric plant and is unique to our system. Water is pumped from a lower 

reservoir to an upper reservoir where the water is released through a tunnel to turn turbine generators.

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Hydroelectric plants do not consume water in the generation process even though there will be naturally 

occurring evaporation from reservoirs. We work with environmental and wildlife agencies to ensure plans 

are in place for monitoring watering quality, protecting aquatic life, ensuring minimum stream flow, 

preventing erosion, and controlling noxious weeds and other invasive plants.

Xcel Energy’s hydroelectric plants operate on the following waterways; many of these are open to public 

recreation:

Colorado Minnesota Wisconsin

Lower Clear Creek Mississippi River Chippewa River

South Fork Arkansas River Apple River

South Clear Creek Red Cedar River

Colorado River Namekagon River

Animas River and tributaries Montreal River

San Miguel River and tributaries White River

Flambeau River

Maintaining Water Quality

All our large plants in Texas and New Mexico, as well as several plants in Colorado, are zero discharge 

facilities—no process water is discharged from the plant site. Instead, it can be reused for growing crops 

or disposed through evaporation ponds. 

Other plants, especially those in Minnesota and Wisconsin, use once-through cooling where water is 

taken from a river or other waterway and returned to the environment. At all our plants where we return or 

discharge water, we systematically treat, monitor and analyze the water to ensure we are meeting 

discharge requirements and to protect the aquatic environment. It is important that we return the water we 

use to rivers and waterways in a usable condition and in compliance with stringent regulatory 

requirements.

 

Water Conservation

Our water consumption has remained relatively flat since 2005 despite having increased electric 

production. We look for cost-effective opportunities to conserve water and have developed a number of 

innovative efforts to reduce water usage at our plants, especially the use of fresh or high quality water.

• Through our operations we use water as efficiently as possible. Water is circulated through the 

cooling process at our closed-loop plants multiple times — up to 25 times at some plants. When it is 

no longer suitable for cooling, water is used in coal-ash handling processes, with emission controls, 

for site irrigation and other uses.

• In Texas, we use recycled municipal effluent at our Harrington, Nichols and Jones facilities, and our 

Tolk plant uses effluent from Plant X for a portion of its water supply.

• Recycled municipal water from metro Denver is used for cooling water at the Cherokee generating 

plant. Overall, this recycled water accounts for more than 40 percent of Cherokee’s water 

consumption and about 10 percent of our total water consumption in Colorado.

• We have reduced water use 30 to 50 percent for Comanche Unit 3 by incorporating a low-water use 

system with hybrid cooling technology that provides additional air cooling capability.

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• Once the Clean Air Clean Jobs project is complete with the retirement of about 700 megawatts of 

coal-fueled generation, we anticipate decreasing overall system water usage in Colorado by about 15 

percent.

• Diversifying our energy supply can help reduce water usage. The more than 15 percent of wind and 

solar power on our systems does not require water.

• When customers save energy through our energy efficiency programs, they also help save water.

In addition to saving water used for electric generation, we have efforts underway to conserve water in 

our office buildings and service centers. Learn more about our Sustainable Facilities Management 

program. 

Water Partnerships, Innovative Agreements and Stakeholder Efforts

Water is a fundamental resource that has become more stressed as communities grow and as weather 

patterns fluctuate. It is an environmental concern that affects habitat and wildlife, in addition to people. 

Through engagement in the communities we serve—including participation on water boards, in 

management organizations and in regulatory forums—we are finding solutions and forming partnerships. 

Through the Xcel Energy Foundation, we also have supported local projects and community initiatives.

Innovative Agreements, Partnerships and Stakeholder Efforts

• Xcel Energy personnel participate regularly in stakeholder organizations for the water basins in which 

the company has interests. Plus, our staff serves on boards and as officers overseeing eight ditch 

companies in Colorado where the company owns significant water rights. Conflicts involving water 

are often identified and resolved through these organizations and boards.

• We own very senior water rights on the Colorado River that are used to operate the Shoshone 

Hydroelectric Generating Plant. To help meet water needs within the city of Denver and surrounding 

suburbs, we have an agreement to “relax” a portion of our water requirements for Shoshone during 

dry years. In 2013, Colorado experienced below-average moisture, which marked the first year that 

we implemented this agreement, which was originally established with Denver Water in 2006. Rather 

than maintaining 1,250 cubic feet per second (cfs) in the river to run Shoshone, we reduced our use 

to 704 cfs and allowed Denver Water and other Colorado Front Range water providers to store river 

flows above this amount for municipal use.

• We have an agreement with the city of Longmont in northern Colorado that helps preserve high 

quality water for municipal use. We exchange annually up to 5,000 acre-feet of high quality water 

acquired under our water rights with the city’s lowest quality water or effluent. The city routinely 

discharges its effluent to the South Platte River where we take it to use at our power plants, including 

Fort St. Vrain, Cherokee and Pawnee generating plants. We have a similar agreement with the city of 

Westminster to provide high quality water from Clear Lake in exchange for municipal effluent to use at

our plants.

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• In dry years Colorado farmers typically lack the full water supply needed for growing crops. Through a 

mutually beneficial agreement, we buy limited quantities of water that farmers have available and use 

it in our power plants. Under this arrangement, farmers are compensated, helping them financially 

during dry years.

• The Xcel Energy Foundation funds a statewide initiative of the Colorado Foundation for Water 

Education (CFWE) to help raise awareness about water as a limited and valuable resource. By 

connecting Coloradans with information and activities focused on water, including library and 

museum exhibits, speakers and video presentations and a water website, the CFWE strives to 

motivate residents to become more proactive participants in the state’s water future and increase 

support for better managing and protecting Colorado’s water and waterways. In addition to providing 

funding, Xcel Energy water resources staff volunteer with and support this effort. In 2014, Xcel 

Energy hosted CFWE’s Water/Energy Nexus tour at the Ft. St. Vrain Generating Plant and educated 

participants about water use for thermoelectric power generation in Colorado, as well as Xcel 

Energy’s water use and water rights portfolio.

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Biodiversity

Xcel Energy has a long history of addressing wildlife protection, including avian protection, land 

restoration and fish management. We recognize our operations can impact wildlife and important habitat, 

so we take extra steps to protect these special resources.

Avian Protection Plans

Transmission line structures and equipment can be attractive to birds for roosting and building nests and 

can pose a collision hazard resulting in risk of death or injury. Migratory birds and bald and golden eagles 

are protected by federal laws—the Migratory Bird Treaty Act (MBTA) and Bald and Golden Eagle

Protection Act (BGEPA). A critical initiative to the company’s compliance with the MBTA and BGEPA are 

our Avian Protection Plans (APP). In 2002, Xcel Energy operating companies entered into separate 

voluntary Memorandums of Understanding (MOUs) with the U.S. Fish and Wildlife Service (USFWS) to 

work together to address avian issues throughout the company’s service territories and to develop an 

APP for each Xcel Energy operating company.

As part of the APP, each operating company developed a schedule for retrofitting facilities that were 

determined to pose a higher risk for bird injuries or deaths. Distribution and transmission designers and 

engineers have had great success in getting the required retrofits completed in a timely manner. All 

retrofits have been completed in our Colorado, Texas and New Mexico service territories. In our Upper 

Midwest service territory, we have finished the highest priority lines and poles and are working through 

the next level of retrofit projects. In Colorado, we have retrofitted almost 1,700 locations, and in our Texas 

and New Mexico region, we have retrofitted about 750 locations. We will retrofit an additional 546 

locations in Texas and New Mexico during routine maintenance activities in the coming years. In the 

Upper Midwest, we have completed retrofits on nearly 200 locations. Additionally, the APP for the Upper 

Midwest region is currently being updated to reflect current design standards to ensure the continued 

success of these avian protection measures. The APPs for Colorado, Texas and New Mexico will be 

updated in 2016.

The MOUs also include Xcel Energy employees reporting injured or dead birds using the company’s 

online reporting form. Designers and troublemen then analyze whether reasonable retrofits or marking of 

lines with bird flight diverters would minimize an avian incident from occurring at that location in the future. 

This reporting and retrofit evaluation process is a critical component of our compliance with the MBTA 

and BGEPA and demonstrates Xcel Energy’s commitment to taking responsible actions for avian 

protection. 

151
Protecting birds and bats near wind turbines

Xcel Energy works with the wind project developer, the U.S. Fish and Wildlife Service (USFWS) and 

appropriate state wildlife/natural resource agencies during wind turbine project siting and permitting to 

ensure wind turbine locations are not in major flyway areas or critical habitat for population-sensitive 

threatened and endangered species. For our newer projects, we ensure that the developer has prepared

a detailed Avian and Bat Protection Plan that addresses steps to be taken to identify and mitigate impacts 

to avian and bat species during both construction and operation of the wind turbine project. We perform 

additional studies and monitoring after construction as part of the permitting process to confirm that the 

wind turbine operations are not causing impacts to bird populations. We also report injuries or fatalities to 

the USFWS and appropriate state agencies to ensure that additional mitigation measures can be 

developed if necessary. Xcel Energy purchases generation from wind energy companies that have 

performed similar permitting, reporting, reviews and/or studies.

Osprey Nests

Ospreys are federally protected raptors that have seen recent reintroduction success in the Midwest 

following decades of restoration and conservation efforts. Ospreys benefit from the presence of power 

lines by using distribution poles and transmission structures for nesting. However, osprey nests built on 

utility poles may pose a threat to the birds and can jeopardize system reliability through outages and 

damage to electrical equipment. Xcel Energy environmental staff, linemen and field crews have been 

actively involved in erecting alternate nest platforms adjacent to and taller than the lines in known osprey 

nesting areas to provide more attractive and safer nesting sites while protecting system reliability. Xcel 

Energy also works closely with communities and civic group volunteers to help evaluate utility poles near 

high-quality osprey habitat, to identify alternate sites and to assist with building and installing safe osprey 

nest platforms.

Xcel Energy has installed web-based cameras in nest boxes at our generating plants to help increase 

awareness for conservation efforts. Our nine bird cams feature six different species: bald eagles, great 

horned owls, herons, kestrels, osprey and peregrine falcons. 

See our bird cams.

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Karner Blue Butterfly Partnership

Xcel Energy continues to be a proud partner in the conservation and protection of the Karner blue 

butterfly—a small, federally endangered butterfly restricted to habitats—most prevalent in Wisconsin—

that support wild lupine plants. In 1999, Xcel Energy partnered with the Wisconsin Department of Natural 

Resources (DNR) and other stakeholders to prepare an innovative statewide Habitat Conservation Plan 

(HCP). As part of the HCP, Xcel Energy voluntarily agreed to various mitigation, land management and 

conservation commitments. Xcel Energy’s Wisconsin environmental staff continues to participate in 

annual meetings with the DNR and other utilities to evaluate ongoing conservation efforts. The staff also 

leads lupine and butterfly field surveys to ensure that company activities, such as transmission line 

rebuilds and new gas pipeline construction, will not result in adverse impacts to the Karner blue butterfly 

and its habitat.

Pollinator Habitat Enhancement 

The decline of pollinator species—including bees, wasps and butterflies—and the resulting ecological and 

economic consequences—such as impacts to food production—is fast becoming a critical environmental 

issue. Utility right-of-ways present ideal opportunities for creating and enhancing pollinator habitat 

through modifying land management practices such as mowing frequency, reseeding mixtures and 

pesticide spraying practices while still managing to maintain system safety and reliability. Xcel Energy is 

actively seeking opportunities to participate in pollinator habitat restoration efforts. For example, we have

partnered with nonprofit organizations, agencies and communities to use a diverse pollinator seed mix 

along portions of the CapX2020 transmission line rights-of-way in North Dakota, Minnesota and 

Wisconsin. 

Northern Long-eared Bat

In April 2015, the USFWS published a final rule listing the northern long-eared bat as a threatened 

species under the Endangered Species Act (ESA) due to declining populations from a widespread 

disease threatening the bat’s health. At the same time, the USFWS established an interim rule specifying 

measures it deems "necessary and advisable" to provide for the conservation of the bat. The interim rule 

includes certain exceptions from the ESA’s "take" prohibition, including certain exceptions for utility rightsof-way and transmission corridors and an exception for removal of hazardous trees for the protection of 

human life or property. The USFWS expects to finalize the interim rule by the end of 2015. The bat’s 

habitat range extends across all five Upper Midwest states in Xcel Energy’s service territory. We are 

working with our vegetation management crews to ensure right-of-way maintenance work is performed 

consistently with the requirements of the listing decision and interim rule.

Greater Sage-Grouse Conservation Plan

In Colorado, Xcel Energy helped develop the Northern Eagle/Southern Routt Greater Sage-Grouse 

Conservation Plan and is a signatory on the plan. This plan describes and sets forth a strategy for longterm management of the greater sage-grouse in concert with other resource values and land uses at a 

landscape scale. It serves as the beginning of a cooperative effort between private landowners and state 

and federal agencies to conserve greater sage-grouse and their habitats in Northern Eagle and Southern 

Routt counties.

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Lesser Prairie-chicken Conservation Agreement 

Xcel Energy has voluntarily entered into a conservation agreement with the Western Association of Fish 

and Wildlife Agencies (WAFWA) pursuant to the Lesser Prairie-Chicken Range-Wide Conservation Plan 

to mitigate impacts to this species of prairie grouse in areas where we operate. The U.S. Fish and Wildlife 

Service listed the lesser prairie-chicken as a threatened species on March 27, 2014 due to the rapid 

decline in its population over the past 15 years.

Range lands in our Colorado, New Mexico and Texas service territories serve as important habitat for the 

lesser prairie-chicken, and under the conservation agreement, Xcel Energy will implement conservation 

measures that help protect this habitat. The company paid an enrollment fee of $60,000, and will pay 

future mitigation fees based on anticipated development activities. We also agreed to follow avoidance, 

minimization and mitigation measures during operation, maintenance and new construction activities. 

These measures may include burying distribution lines within a certain distance of active breeding areas 

and using mono-pole construction in certain lesser prairie-chicken habitat areas. The goal of the WAFWA 

conservation plan is to increase the population of the species from about 17,000 birds currently to 67,000 

birds across the range states of Colorado, Kansas, New Mexico, Oklahoma and Texas.

Vegetation Management

Xcel Energy’s Vegetation Management department manages millions of trees across more than 50,000 

miles of distribution right-of-way (ROW) and 18,000 miles of transmission ROW throughout our service 

territory. 

The department uses industry best practices such as integrated vegetation management. Integrated 

vegetation management encompasses a progressive system of information gathering and assists the 

department with developing compliant solutions to vegetation control near electric and natural gas 

facilities. The practice focuses on achieving such ends in an environmentally sensitive, socially 

responsible and cost-effective manner. 

In addition, pruning methods comply with standards set by the American National Standards Institute and 

the Tree Care Industry Association, which are endorsed by the International Society of Arboriculture.

Our practices seek to balance our customers’ need for reliable energy while respecting the natural 

environment that surrounds our facilities. For example, we work with landowners to determine if trees and 

other vegetation can be deemed compatible with safe operation of our electric lines. 

In our efforts to comply with governmental regulation and to better ensure electric system reliability, our 

transmission line vegetation management program emphasizes the removal of incompatible vegetation to 

promote long-term vegetation control. In many cases, this means removing trees in areas where trees 

had been pruned in the past.

We employ manual and mechanized clearing where the vegetation is too tall for herbicide applications. 

When necessary, our contractors apply herbicides that are registered by the U.S. Environmental 

Protection Agency and the appropriate state regulatory agency. The herbicides are applied by licensed 

applicators. 

Learn more about our vegetation management practices and planting the right tree in the right place.

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Tyrone Property Restoration

Xcel Energy originally acquired the 4,400-acre Tyrone property in Dunn County, Wis., in the 1960s and 

1970s as a potential nuclear generating plant site. The plant was never built, and for more than four 

decades the land became home to permanent tree stands and trash sites. Areas of the property also 

were eroded and rutted from unauthorized off-road vehicle use.

In 2008, following a detailed field inspection of the property, Xcel Energy crews cleaned up trash sites 

and posted signs to keep motorized vehicles off the property. Our ongoing activities have included 

converting existing agricultural lands into prairie and forest, harvesting timber to promote regeneration, 

planting trees and monitoring grassland birds to determine if restoration practices are increasing bird 

nesting population.

With help from the Wisconsin Department of Natural Resources and nonprofit conservation organizations, 

we have worked to restore areas of the property into five kinds of land: oak savanna, floodplain savanna, 

sand blow prairie, dry sand prairie and goat prairie. Of the four kinds of prairie communities at Tyrone, 

sand barrens and floodplain savanna are considered globally rare.

In 2007, there were only 32 acres of managed prairie at Tyrone. Since then, Xcel Energy has established 

more than 1,000 acres of different types of prairie.

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