Xcel Energy 2010 Annual Report Download - page 60

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As a portfolio of regulated utilities, Xcel Energy has an obligation to serve its customers by providing them with reasonably
priced, reliable electric and gas services. However, Xcel Energy’s strategy goes beyond this traditional mission. Under our
environmental strategy, Xcel Energy takes prudent, balanced steps to reduce the impact of our operations on the environment
while promoting technological and public policy advancements that will support a cleaner electric system at a reasonable price to
customers:
● We continue to increase our use of efficient renewable resources.
● We provide our customers with energy efficiency options at the lowest cost available while reducing emissions and
saving natural resources.
● We work with policy makers to undertake balanced, cost-effective and proactive initiatives to reduce the emissions and
environmental impact associated with our operations.
Xcel Energy looks to advanced technology and business innovation to find cost-effective means to meet, and where appropriate,
exceed new environmental mandates. Finally, Xcel Energy seeks to reduce regulatory uncertainty through constructive cost-
recovery for environmental initiatives. As a result, we are well-positioned to meet the challenges of potential climate change and
other environmental regulation and comply with state and federal renewable energy, efficiency and other clean energy mandates.
We believe that our leadership strategy has resulted in more efficient compliance with environmental mandates, by avoiding the
cost and uncertainty of traditional, piecemeal environmental regulation. Our leadership strategy has positioned Xcel Energy with
a diverse portfolio of energy resources, prevents excessive reliance on one form of energy production, and allows for more
efficient, lower cost planning. Moreover, our strategy has allowed us to take advantage of favorable market conditions. For
example, our acquisition of wind resources has not only positioned us to meet the requirements of state renewable energy
mandates but our wind portfolio has been delivered to customers at prices that are competitive with energy that could have been
provided by new fossil-fired generating units. As a whole, our balanced environmental leadership strategy has provided our
customers with both environmental and financial benefits.
The foundation for Xcel Energy’s environmental strategy resides within its environmental policy. Under this policy, the Xcel
Energy Board of Directors, acting through the Nuclear, Environmental and Safety Committee, establishes environmental
performance goals and oversees Xcel Energy’s environmental compliance program and policy initiatives. The policy is available
on our website at www.xcelenergy.com. Pursuant to that policy, we have established a highly effective environmental compliance
program and have produced an excellent compliance record. Xcel Energy has created an environmental management system that
provides employees with training and documentation of Xcel Energy’s compliance responsibilities, creates processes designed to
minimize the risk of noncompliance and audits Xcel Energy’s environmental performance. Environmental performance goals,
which include the goal of carbon reduction, consistent with our overall strategy, are incorporated into officer and employee job
responsibilities and compensation.
Our environmental leadership strategy resulted in numerous environmental awards and recognition. For example, Xcel Energy
was named to the 2010-2011 Dow Jones Sustainability Index for North America leading index of companies considered best in
class for corporate economic, environmental and social performance. This is the fourth year Xcel Energy received this distinction.
Xcel Energy was named to the Carbon Disclosure Project’s newly formed Carbon Performance Index for efforts to reduce GHGs.
The American Wind Energy Association ranked Xcel Energy the nation’s number one wind energy provider for the past six years,
and the Solar Electric Power Association ranked Xcel Energy number five among U.S. utilities for solar capacity for the past
three years. Xcel Energy has achieved these rankings while at the same time maintaining a balanced strategy and providing our
customers with energy at reasonable rates. As indicated above, in some circumstances our renewable energy initiatives have
resulted in lower customer costs than a traditional, fossil-only strategy.
Xcel Energy strives to provide the public with detailed information regarding environmental performance and risk. Among other
things, our utility companies operating in Minnesota, Colorado, and New Mexico use a carbon proxy cost mandated by the state
commissions as part of its evaluation of the impact of potential GHG regulation on its future resource acquisition plans. Xcel
Energy publishes a Corporate Responsibility Report annually, which is available on our website, www.xcelenergy.com.
Current Clean Energy, Renewable Energy, Conservation and Transmission Initiatives
Promoting Clean Energy
● In December 2010, the CPUC approved PSCo’s Plan, required by the CACJA, to reduce annual emissions of NOx, SO2
and mercury from five coal-fired power plants in Colorado by more than 80 percent from 2008 levels by 2017.
● Xcel Energy, with approval from the CPUC, established the Innovative Clean Technology Program, an initiative to test
promising new technologies with the potential to lower GHG emissions and result in other environmental improvements.