Xcel Energy 2011 Annual Report Download - page 58

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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 Inc. is a public utility holding company. In 2011, 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 pipelines, storage and compression facilities, and WGI, an interstate natural gas pipeline company, these companies
comprise the continuing regulated utility operations.
Xcel Energy Inc.’s nonregulated subsidiary 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 inflation rates, monetary fluctuations and their impact on capital expenditures
and the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; business conditions in the energy
industry, including the risk of a slow down in the U.S. economy or delay in growth recovery; trade, fiscal, taxation and
environmental policies in areas where Xcel Energy has a financial interest; customer business conditions; 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 Inc. 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; actions by regulatory bodies impacting our nuclear operations, including
those affecting costs, operations or the approval of requests pending before the NRC; financial or regulatory accounting policies
imposed by regulatory bodies; availability or cost of capital; employee work force factors; the items described under Factors
Affecting Results of Continuing Operations; and the other risk factors listed from time to time by Xcel Energy Inc. in reports filed
with the SEC, including “Risk Factors” in Item 1A of this Annual Report on Form 10-K and Exhibit 99.01 hereto.
Management’s Strategic Plans
Xcel Energy’s corporate strategy focuses on three core objectives:
• Obtain stakeholder alignment;
• Invest in our regulated utility businesses; and
• Earn a fair return on our utility investments.
Achievement of these strategic plans is designed to provide our investors with an attractive total return and our customers with
clean, safe, reliable energy at a reasonable price. Below is a discussion of our three primary objectives and how they support our
overall strategy.