Xcel Energy 2013 Annual Report Download - page 10

in particular, the value of a strong energy grid. With the
growing reality of smart appliances, distributed generating
options such as wind or solar and the need for two-way
communication with customers, the electric system
needs to be more flexible and reliable than ever before.
Over the next five years, for example, we will be investing
more than $3 billion in our electric distribution system to
increase reliability, enhance the options we can offer to
customers and integrate it with distributed generating sources.
Those projects also will ensure the safety of our employees
and the public and increase capacity to serve new customer
growth. In addition to industrial growth in New Mexico and
Texas, we are experiencing it in Wisconsin, where sand
mining, established to serve the hydraulic fracturing industry,
is increasing.
Demonstrating environmental
leadership and community care
Looking ahead, we recognize that the utility industry will be
making large investments to comply with new and expanding
environmental regulations. In particular, we expect new
carbon dioxide regulations to be introduced this year and
finalized over the next two years that will make a significant
impact on the industry. Because we’ve been proactive in our
approach to environmental protection, we are ready for that
carbon regulation and better situated to manage long-term
environmental risk.
We acted early in converting and refurbishing power plants
and today are well on our way to reduce carbon emissions
about 30 percent by 2020 over 2005 levels. Staying ahead
is especially important in this realm because as the rest of
the industry works to comply with environmental regulation,
the price of labor and materials will increase.
In another example of our proactive approach, Xcel Energy
has positioned itself as the No. 1 provider of wind energy in
the nation, a ranking we’ve held for nine consecutive years.
In 2013, we announced plans to increase our wind portfolio by
40 percent, including two new wind farms in North Dakota and
Minnesota that Xcel Energy will own. Given the current price
of wind energy, this is an excellent way to protect customers
from rising fuel costs. In fact, we estimate the new
wind projects will reduce customer costs by more
than $900 million over the length of the contracts.
Because wind energy is variable, we must continually
balance our system to integrate wind with the rest of our
generating resources. To help in that process, we are using
advanced wind forecasting tools that enable us to make
better decisions in dispatching resources, which again
saves money for customers.
The American Wind Energy Association (AWEA) in 2013
recognized our efforts to promote wind production when
AWEA named us Utility of the Year. We obviously appreciated
the designation but are particularly satisfied that we’ve
determined how to make wind energy an affordable
option for customers.
In the community, Xcel Energy is a steadfast presence
with notable employee volunteer activities, funding from
the Xcel Energy Foundation and an impressive United Way
campaign every year.
In 2013, the Xcel Energy Foundation contributed more than
$4.1 million to promote job training and placement, science
and math education, environmental stewardship and access
to the arts. Our United Way campaign resulted in $5.3 million
going to the community.
This year, we are gathering all of our community efforts
under one umbrella called Positive Effect so we can better
track and leverage our efforts. We think it’s important that
more people understand and appreciate the positive effect
we have on the community. As proof of that impact, we
have been included for seven years in the Dow Jones
Sustainability Index for North America, a leading financial
index of companies considered best in class for corporate
economic, environmental and social performance.
Celebrating the best
employees in the business
We’ve always appreciated the fact that our employees
are essential to our success—and 2013 gave them many
opportunities to prove their commitment to customers.