Xcel Energy 2010 Annual Report Download - page 59

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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 2010, 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.
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, 2010 and Exhibit 99.01 to Xcel Energy’s Form 10-K for the year ended Dec. 31, 2010.
Management’s Strategic Plans
Xcel Energy’s corporate strategy focuses on three core objectives 1) cost-effective environmental leadership 2) achieving our
financial objectives and 3) optimizing the management of our operating utilities. 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 objectives and how they support our overall strategy.
Xcel Energy’s Environmental Leadership
Overview
Xcel Energy’s proactive environmental initiatives form one of three key strategic objectives. Xcel Energy believes that our
environmental leadership initiatives have been successful in meeting customer and policy maker environmental expectations,
while appropriately managing customer costs and hedging future environmental risk. This in turn, creates shareholder value.