Xcel Energy 2009 Annual Report Download - page 58

Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of
Operations
Business Segments and Organizational Overview
Continuing Operations
Xcel Energy is a public utility holding company. In 2009, Xcel Energy’s continuing operations included the activity of
four 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 CIG 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’s nonregulated subsidiary reported in continuing operations is Eloigne, which invests in rental housing
projects that qualify for low-income housing tax credits.
Discontinued Operations
See Note 4 to the consolidated financial statements for discussion of discontinued operations.
Forward-Looking Statements
Except for the historical statements contained in this report, the matters discussed in the following discussion and
analysis are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-
looking statements are intended to be identified in this document by the words ‘‘anticipate,’’ ‘‘believe,’’ ‘‘estimate,’’
‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘objective,’’ ‘‘outlook,’’ ‘‘plan,’’ ‘‘project,’’ ‘‘possible,’’ ‘‘potential,’’ ‘‘should’’ and similar
expressions. Actual results may vary materially.
Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update
them to reflect changes that occur after that date. Factors that could cause actual results to differ materially include, but
are not limited to: general economic conditions, including the availability of credit and its impact on capital
expenditures and the ability of Xcel Energy and its subsidiaries to obtain financing on favorable terms; business
conditions in the energy industry; actions of credit rating agencies; competitive factors, including the extent and timing
of the entry of additional competition in the markets served by Xcel Energy and its subsidiaries; unusual weather;
effects of geopolitical events, including war and acts of terrorism; state, federal and foreign legislative and regulatory
initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or
ownership or impose environmental compliance conditions; structures that affect the speed and degree to which
competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings,
settlements, investigations and claims; environmental laws and regulations, actions of accounting regulatory bodies; the
items described under Factors Affecting Results of Continuing Operations; and the other risk factors listed from time to
time by Xcel Energy in reports filed with the SEC, including ‘‘Risk Factors’’ in Item 1A of Xcel Energy’s Form 10-K
for the year ended Dec. 31, 2009 and Exhibit 99.01 to Xcel Energy’s Form 10-K for the year ended Dec. 31, 2009.
Management’s Strategic Plans
Xcel Energy’s strategy, called Building the Core, has three primary focuses: environmental leadership, achieving financial
objectives and optimizing the management of a portfolio of our operating utilities. In summary, our objective is to
provide value to our customers and execute environmental initiatives by investing in our core utility businesses and
earning a reasonable return on our invested capital. Below is a detailed discussion of our three primary focuses and how
they support our overall Building the Core strategy.
Xcel Energy’s Environmental Leadership
Overview
Xcel Energy has adopted environmental leadership as a primary focus, forming the cornerstone of our strategic
initiatives. Xcel Energy believes that our environmental leadership meets customer and policy maker expectations, while
appropriately managing long-term customer costs, and, in turn, creating shareholder value.
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