Xcel Energy 2014 Annual Report Download - page 65

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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 2015 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 slowdown 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; cyber
security threats and data security breaches; 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 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 the following primary objectives:
• Improving utility performance;
• Driving operational excellence;
• Providing options and solutions to customers; and
• Investing for the future.
These objectives are designed to provide our investors an attractive total return and our customers with clean, safe, reliable energy at a
competitive price. Below is a discussion of these objectives and how they support our overall strategy.
Improving utility performance
Xcel Energy is made up of several utility operating companies. As part of the regulatory process, each state will generally establish an
authorized ROE. In many of our states, our utility operating companies are earning less than the authorized ROE. This is referred to
as an ROE gap. An ROE gap can be a result of numerous factors including the timing of implementation of new rates, timing of
capital investments, a regulatory commission not allowing the recovery of certain costs, the time period used as test year for rate cases,
fluctuations in sales, the impact of weather, unanticipated cost increases, etc. Xcel Energy is focused on closing this gap over the next
several years. As a result, we have established the following goals:
• Close the ROE gap by 50 basis points by 2018; and
• Derive 75 percent of our revenue from multi-year plans by 2017.
We are pursuing regulatory and legislative changes to streamline rate case proceedings and optimize recovery, while improving our
alignment with state policies and keeping pace with evolving customer preferences.