Xcel Energy 2008 Annual Report Download - page 16

COMPANY OVERVIEW
Xcel Energy is a holding company, with subsidiaries engaged primarily in the utility business. In 2008, 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 joint venture formed with a subsidiary of El Paso Corporation to develop and lease
natural gas pipeline, storage, 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, current reports on
Form 8-K and all amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 as soon as reasonably practicable after the reports are 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.
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 Colorado and Minnesota, which are intended
to result in a significant reduction in GHG 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 renewable energy mandates and take advantage of 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 9 percent of its total sales in
2008. 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 89 percent of NSP-Minnesota’s retail electric operating revenues were derived from operations in
Minnesota during 2008. Generally, NSP-Minnesota’s earnings range from 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 Interchange Agreement between the
two companies provides for the sharing of all generation and transmission costs of the NSP System.
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 its total sales in 2008. 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 248,000 customers and natural gas utility service to approximately
104,000 customers. The management of the electric production and transmission system of NSP-Wisconsin is
integrated with NSP-Minnesota. Approximately 98 percent of NSP-Wisconsin’s retail electric operating revenues were
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