Xcel Energy 2007 Annual Report Download - page 16

COMPANY OVERVIEW
Xcel Energy is a holding company, with subsidiaries engaged primarily in the utility business. In 2007, Xcel Energy’s
continuing operations included the activity of four wholly owned utility subsidiaries that serve electric and natural gas
customers in eight states. These utility subsidiaries are NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. These utilities
serve customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and
Wisconsin. Along with WYCO, a company formed to develop and lease new natural gas pipeline and compression
facilities, and WGI, an interstate natural gas pipeline company, these companies comprise the continuing regulated
utility operations.
Xcel Energy was incorporated under the laws of Minnesota in 1909. Xcel Energy’s executive offices are located at
414 Nicollet Mall, Minneapolis, Minn. 55401. Its web site address is www.xcelenergy.com. Xcel Energy makes available,
free of charge through its web site, its annual report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K as soon as reasonably practicable after such material is electronically filed with or furnished to the
SEC. In addition, the Xcel Energy guidelines on Corporate Governance and Code of Conduct are also available on its
web site.
As discussed in detail in the Management’s Discussion and Analysis section, environmental leadership is a core strategic
priority for Xcel Energy. Our environmental leadership strategy is designed to meet customer and policy maker
expectations while creating shareholder value. We have established a highly effective environmental compliance program
and have produced an excellent compliance record. Moreover, we pursue environmental policy initiatives that promote
our environmental leadership and provide growth opportunities. Among other things, Xcel Energy is a national leader
in voluntary emission reduction programs, the nation’s largest retail utility wind energy provider and a leader in
innovative technology, energy efficiency and conservation and customer-driven renewable energy programs. In 2007,
Xcel Energy filed resource plans in two of its operating service territories that will result in a significant reduction in
CO2 emissions, while meeting growing customer demand at a reasonable price. Through our environmental leadership
strategy, we are well-positioned to meet the challenges of potential future climate change regulation, comply with the
renewable energy mandates and take advantage of the clean energy incentives created by policy makers in the states in
which we operate.
NSP-Minnesota
NSP-Minnesota was incorporated in 2000 under the laws of Minnesota. NSP-Minnesota is an operating utility engaged
in the generation, purchase, transmission, distribution and sale of electricity in Minnesota, North Dakota and South
Dakota. The wholesale customers served by NSP-Minnesota comprised approximately 10 percent of the total sales in
2007. NSP-Minnesota also purchases, transports, distributes and sells natural gas to retail customers and transports
customer-owned natural gas in Minnesota and North Dakota. NSP-Minnesota provides electric utility service to
approximately 1.4 million customers and natural gas utility service to approximately 0.5 million customers.
Approximately 90 percent of NSP-Minnesota’s retail electric operating revenues were derived from operations in
Minnesota during 2007. Generally, NSP-Minnesota’s earnings comprise approximately 40 percent to 50 percent of Xcel
Energy’s consolidated net income.
The electric production and transmission system of NSP-Minnesota is managed as an integrated system with that of
NSP-Wisconsin, jointly referred to as the NSP System. The electric production and transmission costs of the entire
NSP System are shared by NSP-Minnesota and NSP-Wisconsin. A FERC-approved agreement between the two
companies, called the Interchange Agreement, provides for the sharing of all costs of generation and transmission
facilities of the NSP System, including capital costs.
NSP-Minnesota owns the following direct subsidiaries: United Power and Land Co., which holds real estate; and NSP
Nuclear Corp., which owns NMC.
NSP-Wisconsin
NSP-Wisconsin was incorporated in 1901 under the laws of Wisconsin. NSP-Wisconsin is an operating utility engaged
in the generation, transmission, distribution and sale of electricity in portions of northwestern Wisconsin and in the
western portion of the Upper Peninsula of Michigan. The wholesale customers served by NSP-Wisconsin comprised
approximately 8 percent of the total sales in 2007. NSP-Wisconsin also purchases, transports, distributes and sells
natural gas to retail customers and transports customer-owned natural gas in the same service territory. NSP-Wisconsin
provides electric utility service to approximately 246,000 customers and natural gas utility service to approximately
102,000 customers. The management of the electric production and transmission system of NSP-Wisconsin is
integrated with NSP-Minnesota, as discussed previously. Approximately 98 percent of NSP-Wisconsin’s retail electric
6