Xcel Energy 2001 Annual Report Download - page 9

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For the energy industry, 2001 proved to be a year like no other. Wholesale energy
markets fluctuated wildly, the economy softened, electric deregulation efforts
stalled and Enron fell. Xcel Energy, however, weathered the storms because your
company has staying power.
Staying power starts with a strong foundation. In our case, that includes a thriv-
ing service territory and a valuable asset base of power plants, electric distribution
and transmission lines and natural gas pipelines, which we operate well. Staying
power relies on financial strength, flexibility and integrity, sustainable growth
strategies and the ability to deliver dependable dividends. Staying power is
secured with excellent employees and a lasting commitment to customers, the
environment and the community.
Because your company is built on those fundamentals, we can say with confi-
dence that Xcel Energy is here for the long haul. Our knowledge of customers,
the communities we serve and the industry – coupled with our risk manage-
ment skills – enable us to successfully navigate the new energy marketplace. Years
of experience give us the ability to execute our strategies in good times and bad.
One of the best measures of staying power is our ability to achieve earnings growth.
To grow and add value for you, Xcel Energy relies on a number of earnings drivers,
beginning with its regulated electric and natural gas utility business.
The company operates its regulated business with several factors in its favor. Xcel
Energy’s service territory, for example, stretches across 12 states. That provides the
benefit of geographic diversity, which balances business risk, lessens exposure to
the decisions that could emerge from public policymakers, moderates the effects
of weather and makes the company far less dependent on a particular customer
group, regional economy or metropolitan area for its success.
Another strength is that the company operates across the entire service territory
instead of functioning as statewide jurisdictions. That enables it to standardize
practices to maintain a low cost structure and high service standards and to take
advantage of numerous synergies.
AN AVERAGE OF 15 COAL TRAINS A
WEEK TRANSPORT LOW-SULFUR,
SUB-BITUMINOUS WESTERN COAL
TO THE SHERCO PLANT FROM
MONTANA AND WYOMING. EACH
TRAIN CAR CONTAINS UP TO 120 TONS
OF COAL. XCEL ENERGY OPERATES
THE PLANT IN COMPLIANCE WITH ALL
ENVIRONMENTAL PERMITS, USING
SCRUBBERS AND OTHER POLLUTION-
CONTROL EQUIPMENT TO REDUCE
SULFUR AND OTHER EMISSIONS.
BUILT TO LAST
XCEL ENERGY HAS STAYING POWER