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About XCEL Energy Inc.

Xcel Energy is a utility holding company distributing electricity to 3.6 million customers and natural gas to 2 million in eight states through its four regulated utilities: Northern States Power Minnesota, Northern States Power Wisconsin, the Public Service Company of Colorado, and Southwestern Public Service. Colorado and Minnesota account for most of the company's customers. Xcel owns power plants that have combined capacity of more than 18,200 MW of electricity. It also owns transmission and distribution lines as well as natural gas assets. It is investing in wind power and operates wind farms in Colorado, Minnesota, and a half-a-dozen other states. The company traces its roots back to 1881. 

Operations

Xcel Energy's reportable segments are Regulated Electric Utility, Regulated Gas Utility, and Other. Regulated Electric is the largest segment, producing 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 18,200 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, a third comes from coal, another third comes from natural gas, 15% comes from nuclear, and the rest is generated from wind, hydroelectric, and other sources. 

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 natural gas to customers.

Xcel's Other segment generates about 1% of the company’s revenue and includes steam revenue, appliance repair services, and non-utility real estate activities.

Geographic Reach

Minneapolis, Minnesota-based Xcel Energy 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 400,000 customers in Wisconsin and Michigan. Public Service Company of Colorado provides energy to 2.9 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. The company also serves small commercial and industrial customers. Commercial and industrial customers account for nearly half of the company's total revenue. 

Residential customers account for a third of Xcel's revenue. 

 

Financial Performance

As is true with electric service companies, Xcel Energy's revenue has remained essentially unchanged over the past five years.

In 2018, revenue rose 1% to $11.5 billion, with both electricity and natural gas revenue increasing slightly from the previous year. The amount of delivered electricity (kilowatt hours) was up, primarily due to favorable weather conditions. 

Net income in 2018 rose to $1.2 billion, up $113 million from the previous year. While operating expenses were higher in 2018, the company paid less in income taxes than it did in the previous period, which resulted in the modest bottom line increase. 

Cash at the end of the year was $147 million, up $64 million from the previous period. Operating activities provided $3.1 billion, investing activities (mostly capital expenditures) used $3.9 billion, and financing activities provided $928 million, largely through issuance of additional debt.

Xcel carries a hefty long-term debt load. In 2018 the company held $15.8 billion in debt and has become more leveraged over the past five years. Just a few years prior in 2014, Xcel's long-term debt sat at $11.5 billion.  

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 $20.1 billion on such projects.

Infrastructure will receive the lion's share of the $20.1 billion in capital expenditures planned for the 2019-2023 period. Electric transmission & gas distribution systems are targeted to receive about $10 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 allotted $2.3 billion, while the build-outs of its renewable wind and solar energy resources are expected to receive $3.6 billion.

 

Company Background

The Minnesota Electric Light & Electric Motive Power Company was founded in 1881 and changed its name to Minnesota Brush Electric the next year. In the 1890s it provided street lighting and power for trolleys and became Minneapolis General Electric.

In 1909 Henry Byllesby formed rival firm Washington County Light and Power Co. (soon renamed Consumers Power Company), then created holding company Northern States Power Company of Delaware (NSPD). In 1910 he founded Standard Gas and Electric, a holding company overseeing NSPD and many other US utilities. 

The company took on its most recent incarnation as Xcel Energy in August 2000, following the merger of Northern States Power Company and New Century Energies, Inc. 

XCEL Energy Inc.

414 NICOLLET MALL
Minneapolis, MN 55401-1993
Phone: 1 (612) 330-5500

Stats

Employer Type: Publicly Owned
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
Employees (This Location): 15
Employees (All Locations): 11,092

Major Office Locations

Minneapolis, 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
Minneapolis, MN
Montevideo, MN
Monticello, MN
Newport, MN
New Richland, MN
Red Wing, MN
Saint Paul, 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
Hereford, TX
Lubbock, TX
Plainview, TX
Abbotsford, WI
Amery, WI
Ladysmith, WI
Madison, WI
Menomonie, WI
Rice Lake, WI
Saint Croix Falls, WI
Sparta, WI
Cheyenne, WY