Xcel Energy 2012 Annual Report Download - page 16

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COMPANY OVERVIEW
Xcel Energy Inc. is a holding company with subsidiaries engaged primarily in the utility business. In 2012, Xcel Energy Inc.’s
continuing operations included the activity of four wholly owned utility subsidiaries that serve electric and natural gas customers
in eight states. These utility subsidiaries are NSP-Minnesota, NSP-Wisconsin, PSCo and SPS, and 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. was incorporated under the laws of Minnesota in 1909. Xcel Energy’s executive offices are located at 414
Nicollet Mall, Minneapolis, Minn. 55401. Its website address is www.xcelenergy.com. Xcel Energy makes available, free of
charge through its website, its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon
as reasonably practicable after the reports are electronically filed with or furnished to the SEC. The public may read and copy any
materials that Xcel Energy files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C.
20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The SEC also maintains an internet site that contains reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC at http://www.sec.gov.
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. Xcel Energy files periodic rate cases and establishes formula rates or
automatic rate adjustment mechanisms with state and federal regulators to earn a return on its investments and recover costs of
operations. Environmental leadership is a core priority for Xcel Energy and is designed to meet customer and policy maker
expectations for clean energy at a competitive price while creating shareholder value.
NSP-Minnesota
NSP-Minnesota is an operating utility primarily engaged in the generation, purchase, transmission, distribution and sale of
electricity in Minnesota, North Dakota and South Dakota. The wholesale customers served by NSP-Minnesota comprised
approximately 4 percent of its total KWh sold in 2012. NSP-Minnesota also purchases, transports, distributes and sells natural gas
to retail customers and transports customer-owned natural gas in Minnesota and North Dakota. NSP-Minnesota provides electric
utility service to approximately 1.4 million customers and natural gas utility service to approximately 0.5 million customers.
Approximately 89 percent of NSP-Minnesota’s retail electric operating revenues were derived from operations in Minnesota
during 2012. Although NSP-Minnesota’s large commercial and industrial electric retail customers are comprised of many
diversified industries, a significant portion of NSP-Minnesota’s large commercial and industrial electric sales include customers
in the following industries: petroleum and coal, as well as food products. For small commercial and industrial customers,
significant electric retail sales include customers in the following industries: real estate and educational services. Generally, NSP-
Minnesota’s earnings contribute approximately 35 percent to 45 percent of Xcel Energy’s consolidated net income.
The electric production and transmission costs of the entire NSP System are shared by NSP-Minnesota and NSP-Wisconsin. A
FERC-approved Interchange Agreement between the two companies provides for the sharing of all generation and transmission costs
of the NSP System. Such costs include current and potential obligations of NSP-Minnesota related to its nuclear generating facilities.
NSP-Minnesota owns the following direct subsidiaries: United Power and Land Company, which holds real estate; and NSP
Nuclear Corporation, which owns NMC, an inactive company.
NSP-Wisconsin
NSP-Wisconsin is an operating utility primarily engaged in the generation, transmission, distribution and sale of electricity in
portions of northwestern Wisconsin and in the western portion of the Upper Peninsula of Michigan. The wholesale customers
served by NSP-Wisconsin comprised approximately 6 percent of its total KWh sold in 2012. NSP-Wisconsin also purchases,
transports, distributes and sells natural gas to retail customers and transports customer-owned natural gas in the same service
territory. NSP-Wisconsin provides electric utility service to approximately 251,000 customers and natural gas utility service to
approximately 108,000 customers. Approximately 98 percent of NSP-Wisconsin’s retail electric operating revenues were derived
from operations in Wisconsin during 2012. Although NSP-Wisconsin’s large commercial and industrial electric retail customers
are comprised of many diversified industries, a significant portion of NSP-Wisconsin’s large commercial and industrial electric
sales include customers in the following industries: paper and allied products, food products, as well as oil and gas extraction. For
small commercial and industrial customers, significant electric retail sales include customers in the following industries: grocery
and dining establishments and educational services. Generally, NSP-Wisconsin’s earnings contribute approximately 5 percent to
10 percent of Xcel Energy’s consolidated net income.