Xcel Energy 2012 Annual Report Download - page 58

48
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 2012, 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,
including the 2013 full year EPS guidance and assumptions, 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.