Xcel Energy 2014 Annual Report Download - page 22

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COMPANY OVERVIEW
Xcel Energy Inc. is a holding company with subsidiaries engaged primarily in the utility business. In 2014, 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 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 four core objectives: improving utility performance; driving operational excellence;
providing options and solutions to customers; and investing for the future. These core objectives are designed to provide an attractive
total return to our investors, including long-term annual ongoing EPS growth of four to six percent and annual dividend increases of
five to seven percent.
NSP-Minnesota
NSP-Minnesota is a 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 seven
percent of its total KWh sold in 2014. 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 88 percent
of NSP-Minnesota’s retail electric operating revenues were derived from operations in Minnesota during 2014. Although NSP-
Minnesota’s large C&I electric retail customers are comprised of many diversified industries, a significant portion of NSP-Minnesota’s
large C&I electric sales include the following industries: petroleum, coal and food products. For small C&I customers, significant
electric retail sales include 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.
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 a 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. NSP-Wisconsin purchases, transports,
distributes and sells natural gas to retail customers and transports customer-owned natural gas in this service territory. NSP-Wisconsin
provides electric utility service to approximately 255,000 customers and natural gas utility service to approximately 111,000
customers. Approximately 98 percent of NSP-Wisconsin’s retail electric operating revenues were derived from operations in
Wisconsin during 2014. Although NSP-Wisconsin’s large C&I electric retail customers are comprised of many diversified industries,
a significant portion of NSP-Wisconsin’s large C&I electric sales include the following industries: food products, paper, allied
products and sand mining for oil and gas extraction. For small C&I customers, significant electric retail sales include the following
industries: grocery and dining establishments, educational services and health services. Generally, NSP-Wisconsin’s earnings
contribute approximately five percent to 10 percent of Xcel Energy’s consolidated net income.
The management of the electric production and transmission system of NSP-Wisconsin is integrated with NSP-Minnesota.