Xcel Energy 2001 Annual Report Download - page 4

In one of the most challenging years ever for the energy industry, Xcel Energy
proved it has staying power. Your company delivered solid financial results, grew
its businesses and strengthened its position among global energy companies. We
successfully integrated New Century Energies and Northern States Power Co.
and put together a leadership team dedicated to delivering long-term value for
you, our shareholders.
I’m proud of our accomplishments, especially in light of the year’s events.
In 2001, the energy industry experienced:
– enormous price swings on the wholesale electric market;
– significant new initiatives from the Federal Energy Regulatory Commission
(FERC);
– uncertainty surrounding the deregulation of the electric market that caused
many states to delay their efforts;
– a softening economy that slowed customer growth;
– the bankruptcy of Enron; and
– increased concerns about credit quality and accounting issues.
While each event had ramifications for Xcel Energy, the company has an even
longer list of achievements. In 2001, the Xcel Energy team:
– met its earnings target, due in part to strong results from its marketing
and trading effort and the contribution of NRG Energy, its largest non-
regulated business;
– delivered dividends of $1.50, which is a payout ratio of 65 percent;
– proposed creating an independent transmission company with five
other utilities;
– added more than 91,000 new natural gas and electric customers;
– successfully participated in the deregulated electric market outside its
service territory;
– reduced the number and duration of electric outages;
– completed a six-year effort to repower its decommissioned nuclear plant
Fort St. Vrain with natural gas;
DEAR SHAREHOLDERS
COMPARATIVE YIELDS
at December 31, 2001
(in percent)
2
1
3
4
5
6
0Six-month
CD
1.93
EEI
Electrics
Average
Dividends
4.70
Two-year
Treasury
3.21
Xcel
Energy
Dividend
5.40
20-year
Treasury
5.81
2
WAYNE BRUNETTI, CHAIRMAN, PRESIDENT
AND CEO, IS SHOWN AT XCEL ENERGY’S
HENNEPIN ISLAND PLANT, ONE OF 35 HYDRO
PLANTS OWNED AND OPERATED
BY THE COMPANY.