Xcel Energy 2011 Annual Report Download - page 4

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across our service territory and rate
increases in various states. The higher
margins were partially offset by expected
increases in operating and maintenance
expenses, depreciation, interest expense
and property taxes.
Our stock price rose 17 percent in 2011,
hitting a nine-year high in December.
Taking into account the reinvestment of
our dividends, we delivered a total return
of more than 22 percent. We also raised
our annual dividend by 3 cents per share,
or 3 percent, and maintained strong
credit ratings.
Looking ahead, we anticipate delivering
ongoing earnings in the lower half of our
$1.75 to $1.85 guidance range in 2012.
That’s due in part to an early 2012 decision
by the Colorado Public Utilities Commission
(CPUC) to deny our request for interim rates
as part of a larger rate increase request.
The CPUC did, however, allow deferred
accounting for a portion of that interim rate
request, which will partially offset a revenue
gap as we await new rates in Colorado.
In addition, we are paying higher property
taxes, primarily in Colorado and Minnesota.
Despite those challenges, we are focused
on delivering 5 percent to 7 percent annual
earnings growth and feel confident that we
will achieve that goal.
Energized for customers
Our work for customers is built on a
solid foundation of operational excellence.
For example, we carefully track electric
system reliability and in 2011 achieved our
company-wide reliability goal despite the
fact that we experienced several major
storms in various parts of our service
territory. Adverse weather resulted in
tornadoes in Minnesota, flooding in
North Dakota, fires in Texas and an early
snowstorm in Colorado. In every situation,
our employees proved their commitment to
customers, restoring power in record time.
In other reliability efforts, we completed
construction of a natural gas-fired unit at
our Jones Station in Texas. We brought
the unit on line a year ahead of schedule,
significantly under budget and in time for
peak electric use during an unusually hot
summer. Thriving energy and agricultural
industries in that part of the country
contribute to growing electric demand
and have prompted us to propose a
fourth unit at Jones Station that should
be complete by summer 2013, pending
all regulatory approvals.
Our public safety efforts are another
measure of operational excellence. To meet
new federal guidelines, we are inspecting
natural gas transmission systems across our
service territory, paying particular attention
to pipelines near public areas. We will
invest about $230 million to upgrade those
systems. We also are making significant
investments in our natural gas distribution
system. Xcel Energy’s natural gas business
is a vital component of our operational mix.
As we ensure reliability and safety, we also
help customers save energy and money
with a wide variety of energy efficiency
programs and rebates. In 2011, we more
than met challenging energy efficiency
targets and in the process gave customers
valuable options for controlling their energy
use in a tough economy. They responded
with a record residential customer
satisfaction score of 93 percent.
Our energy efficiency efforts are key
components of our environmental
leadership strategy. They help us reduce
emissions while enabling us to avoid
building new power plants, and we
are able to earn a significant return
on our efforts.
Xcel Energy’s
Doug Ryan (left)
worked with
Denver International
Airport’s (DIA)
Woods Allee on
energy efficiency
efforts at the
DIA that enabled
the airport to
save more than
9 gigawatt-hours
of electricity
annually and earn
rebates of more
than $400,000.
The DIA also
participated in
Xcel Energy’s
Solar*Rewards®
program, which
offers incentives and
rebates for installing
solar panels. The
airport installed
8 megawatts of
solar panels at three
different locations.
“Xcel Energy’s efforts
and programs have
enabled the airport
to implement a
number of energy
management
initiatives that
are not only
environmentally
beneficial but also
make economic
sense,” Allee said.
XCEL ENERGY 2011฀ANNUAL฀REPORT฀•฀2