Xcel Energy 2010 Annual Report Download - page 3

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With good results in every category,
Xcel Energy had an outstanding year
in 2010. We achieved our financial
goals and, in fact, have met or
exceeded our earnings target six
years in a row. We demonstrated
our environmental leadership by
bringing another wind farm on
line, helping customers conserve
more energy than ever before
and proposing an ambitious new
emission-reduction plan. We met
our reliability goals and maintained
high levels of customer satisfaction.
By consistently delivering on
our objectives, we prove that
Xcel Energy is, as our theme
indicates, Built to Last. We have
a strong financial foundation, a
straightforward strategy for growing
the business and the ability to
operate our companies well. We
keep our commitments to the
environment and the communities
we serve. And just as important,
we build lasting value for you.
Strong financial
foundation
Ongoing earnings were $1.62 in
2010, compared with $1.50 in 2009.
That means we increased earnings
8 percent, exceeding our 5 percent
to 7 percent earnings growth target
and putting us in the upper half of
our earnings guidance range. New
rates in several of our jurisdictions
and warmer summer temperatures
contributed to strong earnings.
Higher operating and maintenance
expenses and property taxes
partially offset those results.
In addition to growing earnings,
we’ve consistently increased your
annual dividend in the 2 percent
to 4 percent range, raising it 3
percent in 2010. And Xcel Energy
stock outperformed our peer
group of regulated utilities for the
third consecutive year. Taking into
account the reinvestment of our
dividends, we delivered a total
return of more than 16 percent
in 2010.
A strong balance sheet and solid
credit ratings also indicate financial
health. Standard & Poor’s upgraded
our credit ratings in 2010, and
we were able to issue $1.9 billion
of securities at attractive rates.
That made our purchase of two
Colorado natural gas plants from
Calpine Corporation a particularly
wise move. Not only were we able
to finance the acquisition on good
terms, the plants will save money
for customers in the long run, and
the investment is expected to be
accretive to earnings in 2011.
Building on that financial
momentum, we estimate achieving
ongoing earnings in the range of
$1.65 to $1.75 per share in 2011.
Straightforward strategy
Fundamental to our success is
an easy-to-understand growth
strategy: We invest in our own
businesses to provide safe,
BUILT TO LAST | XCEL ENERGY ANNUAL REPORT 2010 | ONE
Chairman and CEO Dick Kelly (left) and President and COO Ben Fowke are pictured above, with Xcel Energy’s
new Colorado regional headquarters building in the background.