About XCEL Energy Inc.

Xcel Energy has accelerated its energy engine in utility markets across the US. The utility holding company distributes electricity to 3.6 million customers and natural gas to 2 million in eight states through its four regulated utilities. Colorado and Minnesota account for most of the company's customers. Xcel owns power plants that have combined capacity of more than 17,500 MW of electricity. It also owns transmission and distribution lines, as well as natural gas assets. It is investing in wind power, with wind farms in Colorado, Minnesota, and Texas and more planned.

Operations

Xcel's reportable segments are Regulated Electric Utility, Regulated Gas Utility, and Other. Regulated Electric is the largest segment and produces about 85% of total revenue through the generation, purchase, transmission, and distribution of electricity. Regulated Natural Gas transports, stores, and distributes natural gas to generate most of the remaining revenue.

The two power segments achieve their objectives through several subsidiaries: Northern States Power Minnesota (NSP-M), Northern States Power Wisconsin (NSP-W), the Public Service Company of Colorado (PSCo), and Southwestern Public Service (SPS).

Xcel owns and operates roughly 17,500 MW of electric generating capacity and purchases additional power from third parties through long-term power purchase agreements. Generally, Xcel's power plants produce about two-thirds of its needs and the company purchases the other third. Of its generated electricity, 40% comes from coal, 40% from natural gas, just less than 10% from nuclear and the rest from wind, hydroelectric, and other sources. Electricity flows to its customers over more than 20,000 miles of Xcel's transmission lines and through more than 1,200 substations.

The Regulated Natural Gas segment purchases the natural gas from producers and contracts with transmission pipeline companies to move it to Xcel's distributions facilities, from there the company sends it on to its gas customers.

Geographic Reach

Minneapolis, MN-based Xcel serves a number of US states. It's Northern States Power Minnesota serves 2 million customers in North and South Dakota and in Minnesota. Northern States Power Wisconsin delivers energy to about 370,000 customers in Wisconsin and Michigan. Public Service Company of Colorado provides energy to 2.8 million customers throughout the state, while Southwestern Public Service Company serves nearly 400,000 in New Mexico and Texas.

Xcel's supply of natural gas comes from basins in Colorado, Montana, Wyoming, Texas, Kansas, New Mexico, and Canada.

Sales and Marketing

Xcel Energy's major commercial and industrial electric sales are to customers in the petroleum, coal, and food products industries. It also serves small commercial and industrial customers, and produces significant electric retail sales from residential customers.

Financial Performance

In recent years the company's financial performance produced steady revenue and slowly rising net income results. Revenue generally stayed between $10 billion and $11 billion, while net income rose from about $600 million back in 2007 to more recent results near $1 billion.

For the year 2016, revenue rose marginally to $11.1 billion, with electricity sales gaining a bit more than $200 million and natural gas sales ticking down. The amount of delivered electricity (kilowatt hours) dipped slightly but the dollar amount charged to customers rose. Natural gas experienced the opposite as prices charged to customers decreased while the amount of delivered natural gas rose about 1%.

Net income in 2016 rose 14% to a ten-year high of $1.1 billion. The year-over-year increase was primarily due to a favorable comparison to 2015, which saw a $130 million loss on Xcel's Monticello power generation project.

Cash at year end was $84 million, a negligible change from 2015. Cash activities were largely in line with previous years as operating activities provided $3.0 billion, investing activities (mostly capital expenditures) used $3.3 billion, and financing activities delivered $210 million, largely through issuance of additional debt.

Strategy

Like many electricity companies Xcel Energy is pursuing a long-term shift towards carbon-neutral and renewable energy sources. It also invests in its infrastructure, modernizing its grid for safety, security, and reliability. In the coming five years it anticipates spending $18.3 billion on such projects.

Infrastructure will receive the lion's share of the $18.3 billion in capital expenditures. Electric transmission & gas distribution systems are targeted to receive $8.2 billion, electric generation (such as maintenance of power facilities and refueling nuclear plants) is earmarked for $2.9 billion. Input fuel - mainly natural gas - is expected to collect $2.0 billion, while the build out of its wind and solar energy sources are expected to receive $3.5 billion.

Of the $3.5 billion for renewables, Xcel expects to allocate it to several projects including its 600 MW Rush Creek wind project in Colorado, a proposed 750 MW wind generation facility for its NSP-Minnesota utility, its 300 MW Dakota Range wind project, and even an outreach endeavor to gain regulatory support for 1,000 MW of self-build (i.e. customer-built) wind energy. With the exception of Rush Creek, which receive approval in 2016, these projects are in various stages of regulatory approval.

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XCEL Energy Inc.

414 Nicollet Mall
Minneapolis, MN 55401-1993
Phone: 1 (612) 330-5500

Stats

  • Employer Type: Public
  • Stock Symbol: XEL
  • Stock Exchange: NASDAQ
  • Chairman, President, and CEO: Benjamin G. S. Fowke
  • EVP and CFO: Robert C. Frenzel
  • EVP and Group President, Operations: Kent T. Larson
  • 2016 Employees: 11,512

Major Office Locations

  • Minneapolis, MN
  • Saint Paul, MN

Other Locations

  • Orangevale, CA
  • Alamosa, CO
  • Arvada, CO
  • Aurora, CO
  • Boulder, CO
  • Brush, CO
  • Colorado Springs, CO
  • Denver, CO
  • Durango, CO
  • Glenwood Springs, CO
  • Golden, CO
  • Grand Junction, CO
  • Greeley, CO
  • Hayden, CO
  • Henderson, CO
  • Ignacio, CO
  • Lakewood, CO
  • Loveland, CO
  • Pueblo, CO
  • Rifle, CO
  • Silverthorne, CO
  • Wiggins, CO
  • Covert, MI
  • Albany, MN
  • Bayport, MN
  • Becker, MN
  • Brainerd, MN
  • Burnsville, MN
  • Cannon Falls, MN
  • Dodge Center, MN
  • Elk River, MN
  • Excelsior, MN
  • Inver Grove Heights, MN
  • Mankato, MN
  • Maple Grove, MN
  • Montevideo, MN
  • Monticello, MN
  • New Richland, MN
  • Newport, MN
  • Red Wing, MN
  • Shakopee, MN
  • Welch, MN
  • Winona, MN
  • Zumbrota, MN
  • Grand Forks, ND
  • Clovis, NM
  • Hobbs, NM
  • Roswell, NM
  • Canistota, SD
  • Elkton, SD
  • Salem, SD
  • Sioux Falls, SD
  • Amarillo, TX
  • Austin, TX
  • Dumas, TX
  • Earth, TX
  • Lubbock, TX
  • Plainview, TX
  • Abbotsford, WI
  • Amery, WI
  • Cornell, WI
  • Ladysmith, WI
  • Madison, WI
  • Menomonie, WI
  • Rice Lake, WI
  • Saint Croix Falls, WI
  • Sparta, WI
  • Cheyenne, WY
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