Xcel Energy 2015 Annual Report Download - page 3

XCEL ENERGY | Annual Report 2015 3
Performance over time is proof of our ability to meet your
expectations, but reaching challenging benchmarks also
illustrates nancial strength. Xcel Energy produced the
fourth-highest total shareholder return among our peer
group (3.8 percent for 2015) in a year that the average peer
group performance was negative (-4.5 percent).
We were honored that Forbes magazine named
Xcel Energy to its list of The 100 Most Trustworthy
Companies in America for our consistent demonstration
of transparent accounting practices and solid corporate
governance. With a successful year behind us and solid
prospects for the coming year, we are reafrming our 2016
ongoing earnings guidance of $2.12 to $2.27 per share.
Leading the way with clean energy
Nowhere is The Right Mix more clear than in our energy
supply. That includes retiring and repowering aging coal
plants with natural gas, increasing our wind portfolio
through additional ownership and power purchase
agreements, investing in large-scale solar and maintaining
our nuclear operations.
Xcel Energy will, as we always have, work with our states
and stakeholders on sound plans to create sustainable
and affordable energy futures. This approach will not only
ensure compliance with existing and new environmental
regulations, but also take advantage of new technologies,
recognize evolving customer needs and continue to drive
improvements in how we produce and deliver energy.
We led a bold resource plan in the Upper Midwest to
reduce carbon dioxide emissions 60 percent (compared to
2005 levels) by 2030. In Colorado, we are on schedule and
budget for the Clean Air-Clean Jobs project to retire several
aging coal facilities and transition to natural gas, as we
reduce emissions across the state. These plans have been
Dear Fellow Shareholders:
Xcel Energy remains well positioned to deliver the energy
solutions our customers need and value in a dynamic,
rapidly-changing industry. 2015 was another excellent
year in which we achieved strong nancial and operational
performance and executed well on our strategies to meet
the changing needs of our stakeholders, position us for
success and build value for you.
We chose The Right Mix as the theme of this year’s report
to illustrate the balance we need to succeed in all aspects of
our business. Whether blending renewables and traditional
fuel sources within our energy portfolio, managing customer
costs while ensuring quality service, advocating for regulatory
frameworks to better meet customer and community needs
or attracting the best talent to help move our enterprise
forward, we are constantly striving for The Right Mix.
Solid nancial results
Year after year we have met or exceeded our nancial
targets, and 2015 was no exception. We reported ongoing
earnings of $2.09 per share, compared with $2.03 per share
in 2014. We generated $984 million in net income, a solid
result considering some adverse weather and regulatory
headwinds we faced last year.
2015 was the 11th consecutive year we have met or exceeded
our earnings guidance and, since 2005, we have achieved
annual ongoing earnings growth of 6.2 percent. I am very
proud of our strong, consistent nancial performance.
We also increased your dividend for the 12th consecutive
year, by 6.7 percent in 2015. We raised our dividend growth
guidance to the 5 to 7 percent range in 2015, reecting the
ongoing condence we have in our business strategy and
nancial exibility.
Letter to Shareholders
Ben Fowke
Chairman, President and CEO