What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-21 compared with 2023-02-23 · 205 added, 200 removed, 494 unchanged (45% of the section changed)

5 unchanged sentences

e prime e prime inc.

Nicollet Project Holdings Nicollet Project Holdings, LLC

NSP-Minnesota Northern States Power Company, a Minnesota corporation

15 unchanged sentences

EPA United States Environmental Protection Agency

ERCOT Electric Reliability Council of Texas

FERC Federal Energy Regulatory Commission

6 unchanged sentences

NRC Nuclear Regulatory Commission

OAG Minnesota Office of Attorney General

PHMSA Pipeline and Hazardous Materials Safety Administration

3 unchanged sentences

SEC Securities and Exchange Commission

TCEQ Texas Commission on Environmental Quality

Electric, Purchased Gas and Resource Adjustment Clauses

7 unchanged sentences

AFUDC Allowance for funds used during construction

AMT Alternative minimum tax

AMI Advanced metering infrastructure

ALJ Administrative Law Judge

ARO Asset retirement obligation

ARRR Application for Rehearing, Reargument, or Reconsideration

ASC Financial Accounting Standards Board Accounting Standards Codification

3 unchanged sentences

CapX2020 Alliance of electric cooperatives, municipals and investor-owned utilities in the upper Midwest involved in a joint transmission line planning and construction effort

CCN Certificates of Convenience and Necessity

CCR Coal combustion residuals

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IPP Independent power producing entity

IRA Inflation Reduction Act

IRP Integrated Resource Plan

ISO Independent System Operator

ITC Investment Tax Credit

JTIQ Joint Target Interconnection Queue

LP&L Lubbock Power & Light

MEC Mankato Energy Center

MGP Manufactured gas plant

4 unchanged sentences

NOL Net operating loss

NOPR Notice of proposed rulemaking

NOx Nitrogen Oxides

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OATT Open Access Transmission Tariff

ONES Operations, Nuclear, Environmental and Safety

PFAS Per- and Polyfluoroalkyl Substances

PI Prairie Island nuclear generating plant

PIM Performance Incentive Mechanism

Post-65 Post-Medicare

PPA Purchased power agreement

PPA Power purchase agreement

Pre-65 Pre-Medicare

PTC Production tax credit

RDF Refuse-derived fuel

REC Renewable energy credit

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SERP Supplemental executive retirement plan

Sulfur dioxide

SPP Southwest Power Pool, Inc.

TCA Transmission cost adjustment

TCJA 2017 federal tax reform enacted as Public Law No:

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THI Temperature-humidity index

TO Transmission owner

TSR Total shareholder return

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rising energy prices and fuel costs;

qualified employee work force and third-party contractor factors;

qualified employee workforce and third-party contractor factors;

violations of our Codes of Conduct;

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effects of geopolitical events, including war and acts of terrorism;

cyber security threats and data security breaches;

cybersecurity threats and data security breaches;

seasonal weather patterns;

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natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes;

costs of potential regulatory penalties;

costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage;

regulatory changes and/or limitations related to the use of natural gas as an energy source;

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LEAD THE CLEAN ENERGY TRANSITION ENHANCE THE CUSTOMER EXPERIENCE KEEP BILLS LOW

Our employees are guided by our four corporate values:

Our employees are guided by four corporate values:

Connected, Committed, Safe, and Trustworthy.

Our values, culture and Code of Conduct serve as the foundation upon which Xcel Energy’s Board of Directors, employees, contractors and suppliers approach their work in delivering on our three strategic priorities.

Our sustainability and Environmental, Social and Governance commitments are summarized as follows:

(1) Spans natural gas supply, delivery and customer use.

(2) Includes the Xcel Energy fleet;

zero-carbon fuel is electricity or other clean energy.

Our values, culture and Code of Conduct serve as the foundation upon which Xcel Energy’s employees, Board of Directors, contractors and suppliers approach their work in delivering on our three strategic priorities.

Deliver a Competitive Total Return to Investors

Successful strategy execution, along with our disciplined approach to growth, operations and management of environmental, social and governance issues, positions us to continue delivering a competitive TSR.

We have consistently achieved our financial objectives, meeting or exceeding our initial earnings guidance range for 18 consecutive years and delivering dividend growth for 19 consecutive years.

Over the past five years, GAAP earnings per share have grown by 7.1% annually and our annual dividend growth was 6.3%.

We have consistently achieved our financial objectives, meeting or exceeding our initial ongoing earnings guidance range for 19 consecutive years and delivering dividend growth for 21 consecutive years.

Over the past five years, ongoing earnings per share have grown annually by 6.3% and our dividend per share by 6.5% annually.

Xcel Energy works to maintain senior secured debt credit ratings in the A range and senior unsecured debt credit ratings in the BBB+ to A range.

Current ratings are consistent with this goal.

LEAD THE CLEAN ENERGY TRANSITION

For nearly two decades, Xcel Energy has proactively managed the risk of climate change and worked to meet increasing demand for cleaner energy.

Xcel Energy manages the risk of climate change and has worked to meet the increasing demand for cleaner energy for over 20 years.

Our sustainability commitments are summarized as follows:

*Companywide goal;

work also underway to meet state clean energy goals in our service area.

**Spans natural gas supply, delivery and customer use.

***Includes Xcel Energy fleet;

zero-carbon fuel is carbon free electricity or other clean energy.

Carbon-free Electricity by 2050

In 2018, Xcel Energy became the first U.S.

Xcel Energy was the first U.S.

utility to establish a carbon-free vision, targeting 100% carbon-free electricity by 2050 with an interim goal to reduce carbon emissions 80% by 2030 (from 2005 levels), including owned and purchased power.

A lead author for the climate change scientific analysis issued by the Intergovernmental Panel on Climate Change confirmed that our vision aligns with science-based scenarios likely to limit global warming to 1.5 degrees Celsius from pre-industrial levels.

Goal includes owned and purchased power.

The pace of achieving a carbon-free vision is governed by reliability and customer affordability.

Our approved resource plans outline a clear, transparent path for reducing carbon emissions 80% using current technologies, while maintaining customer bill increases at or below the rate of inflation.

A lead author for the Intergovernmental Panel on Climate Change (IPCC) confirmed that our vision aligns with science-based scenarios likely to limit global warming to 1.5 degrees Celsius from pre-industrial levels, in alignment with the Paris Climate Accords.

The pace of achieving a carbon-free vision is also governed by reliability and customer affordability.

Our approved resource plans outline a clear, transparent path for reducing carbon emissions by 80% using current technologies, while maintaining customer bill increases at or below the rate of inflation.

Moving from 80% carbon reduction to 100% carbon-free electricity will require new, dispatchable technologies that are economically viable, as well as supportive public policy.

See Item 1A for risks and uncertainties related to strategic and sustainability goals and objectives.

Through 2022, we reduced carbon emissions from generation serving customers by an estimated 53% (from 2005 levels) and remain on track to achieve 80% carbon reduction by 2030.

Xcel Energy will be coal-free by year-end 2030, pending the approval of the proposed acceleration of the Tolk coal plant retirement to 2028.

As we transition to clean energy, service reliability is a priority.

Xcel Energy was ranked in the top quartile for customer reliability as determined in the 2022 Institute of Electrical and Electronics Engineers Annual Benchmarking Study.

Xcel Energy’s operating footprint includes some of the best wind and solar resources in the country, providing for higher capacity factors and lower operating costs.

Our “Steel for Fuel” strategy reduces costs for our customers by taking advantage of these higher capacity factors along with savings provided by renewable tax credits and avoided fuel costs that mitigate higher cost fossil generation.

Through 2023, we reduced carbon emissions from generation serving customers by an estimated 54% (from 2005 levels) and remain on track to achieve 80% carbon reduction and fully exit coal by the end of 2030.

At the same time, our Steel for Fuel strategy has saved customers nearly $4 billion since 2017.

Xcel Energy’s wind capacity is now over 11,000 MW, including nearly 4,500 MW of owned wind.

Our fleet continues to demonstrate high wind availability with 2022 performance at approximately 97%, while saving customers over $3 billion in fuel related costs and PTCs since 2017.In 2022, Minnesota and Colorado commissions approved resource plans that will add nearly 10,000 MW of utility-scale renewable energy to our systems.

Beyond carbon emissions, we have significantly reduced other emissions and environmental impacts.

Notable environmental improvements include:

In Colorado, we anticipate adding an additional 1,850 MW of wind, 1,700 MW of solar, 1,850 MW of storage and 650 MW of gas generation to ensure reliability on our system by 2028.

In Minnesota, we have approvals for more than 700 MW of new solar at our Sherco facility, making it one of the largest solar facilities in the country.

In 2024, we filed our NSP Resource Plan, which proposes adding 3,600 MW of new wind and solar, 600 MW of battery storage and 2,200 MW of dispatchable resources by 2030, pending Commission approval.

In SPS, we filed for approval of 400 MW of solar generation, a 200 MW PPA and a broader system IRP, which could include between 5,000 to 10,000 MW of new generation by 2030.

Beyond carbon, we have significantly reduced other emissions and environmental impacts, including:

*Reductions in water consumption are from owned and purchased electricity that serves our customers.

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As we prepare for early coal plant retirements, employees are provided advanced notice and offered retraining and relocation opportunities.

To date, we have been successful in avoiding lay offs associated with our early coal plant retirements.

We also help foster economic development opportunities to offset community economic impacts associated with coal plant closures.

To date, we have been successful in avoiding layoffs associated with our early coal plant retirements.

We also help foster economic development opportunities to offset community impacts associated with coal plant closures.

Xcel Energy has a long track record of working with our communities on energy, climate and environmental initiatives that impact them and has publicly committed to furthering environmental justice.

Significant transmission expansion will also be required to enable the clean energy transition, and Xcel Energy is already investing towards its goals.

For example, our $2 billion Pathway project in Colorado will provide over 560 miles of transmission lines and enable nearly 5,500 MW of new renewable energy.

In addition, as part of MISO’s planned transmission expansion over the next decade, Xcel Energy has been awarded $1.2 billion of projects as part of Tranche 1.

Significant investment in our transmission and distribution systems is essential to ensure resiliency and reliability for customers through the clean energy transition.

We have nearly $12 billion in our 2024 - 2028 capital plan focused specifically on this, including our $1.7 billion Pathway project in Colorado, and additional investments to further support our recently approved Colorado resource portfolio.

As part of MISO’s planned transmission expansion over the next decade, Xcel Energy has been awarded $1.2 billion of projects as part of Tranche 1.

We anticipate MISO Tranche 2 awards in 2024.

Natural Gas Use in Buildings – Net-Zero GHG by 2050

In 2021, we committed to reduce GHG emissions 25% by 2030 (from 2020 levels) and provide net-zero natural gas service by 2050 from the supply, distribution and end-use of natural gas.

Similar to our electric plan, our vision to deliver gas service with net-zero emissions by 2050 aligns with science-based scenarios likely to limit warming by 1.5 C.

Our net-zero natural gas strategy includes:

• Working with suppliers to purchase only low emissions gas supply by 2030.

• Operating the cleanest possible system to achieve net-zero methane emissions on the system by 2030.

• Offering customer options that promote conservation, encourage electrification, where beneficial, and incorporate clean fuels such as hydrogen and renewable natural gas.

• Applying high quality carbon offsets through projects that remove emissions from other parts of the economy while providing additional environmental and social benefit.

Xcel Energy is committed to reducing GHG emissions 25% by 2030 (from 2020 levels) and provide net-zero natural gas service by 2050 from the supply, distribution and end-use of natural gas.

In 2023, we filed our Clean Heat Plan in Colorado and Natural Gas Innovation Plan in Minnesota, which provide a framework for this transition.

Similar to our electric plan, the lead author for the IPCC confirmed our vision to deliver natural gas service with net-zero emissions by 2050 aligns with science-based scenarios likely to limit global warming by 1.5 C.

Our net-zero natural gas frameworks include the following priorities:

• Work with suppliers to purchase only low emissions gas by 2030.

• Operate the cleanest possible system to achieve net-zero methane emissions on the system by 2030.

• Offer customer options for conservation, beneficial electrification, and clean fuels such as hydrogen and renewable natural gas.

• Apply high-quality carbon offsets through projects that remove emissions while providing additional environmental and social benefit.

Electrification of the Transportation Sector

In addition to transitioning our own generation fleet, we are helping to decarbonize other sectors, starting with transportation.

We aim to enable one out of five vehicles in our service areas to be electric by 2030, representing a nearly $2 billion investment, 0.6% to 0.7% incremental annual retail sales growth and avoidance of roughly 5 million tons of CO 2 emissions annually.

We are also helping reduce carbon emissions in other sectors, including transportation.

We aim to enable one out of five vehicles in our service areas to be electric by 2030, representing nearly $2 billion of investment, 0.6% - 0.7% of average incremental annual retail sales growth and avoidance of roughly 5 million tons of CO 2 emissions annually.

By 2050, our vision is to run all vehicles in our service area with carbon-free electricity or other clean energy.

We have launched new products and services across our service territories.

In addition, we have an approved, transportation electrification plan in Colorado and comprehensive transportation plans in Minnesota and Wisconsin that are pending commission approval.

We have approved, transportation electrification programs and plans in Colorado, New Mexico, Minnesota and Wisconsin and updated transportation plans pending commission approval in Minnesota and Colorado.

Innovation and Policy

Passage of the IRA is expected to reduce the cost of renewables for our customers, improve the competitiveness of our renewable projects and improve liquidity and credit metrics.

The IRA is expected to reduce the cost of future wind projects by 50-60% and solar projects by 25-40% (levelized cost of energy basis).

The IRA also lowers the costs of hydrogen production that could be used for generation and the natural gas system.

Finally, the IRA is likely to provide customers additional benefits from PTCs for the generation of electricity from our nuclear fleet.

New and emerging technologies are foundational to fulfilling our strategic priorities.

Advancement of economical, resilient and reliable zero-carbon 24/7 power technologies, as well as advanced storage and new low-carbon fuels, are needed to deliver on our clean energy goals by 2050.

We actively monitor and participate in emerging and advanced energy technologies through collaborations with researchers, technology developers, venture investors and others in our industry.

We have several initiatives, pilots and demonstration projects underway that are advancing and testing the real-world applications of cutting-edge technologies.

Our recently announced partnership with Form Energy to develop two 10 MW, 100-hour energy storage pilot projects is an example.

ENHANCE THE CUSTOMER EXPERIENCE

Xcel Energy has a comprehensive suite of renewable and conservation programs that provide customers with clean energy options and help keep their bills low.

We are also transforming and expanding our electric grid to accommodate load growth, renewable energy and distributed energy resources.

We are in the process of installing smart meters, which will deliver numerous customer and operational benefits, providing near-real-time communication, allowing customers to know how much energy they are using and what it will cost them.

Along with the smart meters, customers will have new digital tools to make it easier to access their energy information, gain useful insights to better understand and manage their energy use and make smarter energy choices that lower their bills.

KEEP BILLS LOW

Customer affordability is critical to successful strategy execution.

From 2013 - 2022, we have kept residential electric bill growth to 1.8% per year and below the rate of inflation.

Residential gas bills were near flat, growing 0.3% per year from 2013 - 2021.

Global pressures on natural gas prices increased customer natural gas bills in 2022.

We pass the cost of natural gas directly to customers (without markup) through fuel clauses in most of our states, and higher gas prices affected the affordability of the service we provide.

We have taken several steps to address this concern:

• Low-income customers are eligible to receive assistance with their bills.

In 2022, we set a company record for energy assistance outreach as 193,000 customers were connected to programs that provided $216 million in funding.

• Xcel Energy has invested more than $2 billion over the past decade in a comprehensive suite of electric and natural gas conservation programs.

• We also kept O&M expenses flat from 2014 through 2021.

While O&M increased in 2022 due to global inflation pressures and other drivers, our goal is to reduce 2023 O&M expenses 2% from 2022 levels and keep them relatively flat thereafter.

• We continue to invest to reduce operating costs through ongoing process and technology improvements, including the use of drone technologies, automated work processes, artificial intelligence and continuous improvement methodologies.

• In addition, we are augmenting our One Xcel Energy Way program in 2023, which we expect to drive increased productivity and efficiency across all levels of the Company.

• As previously discussed, our geographic advantages in wind and solar also enable customer savings, which we call our “Steel for Fuel” strategy.

High capacity factors, coupled with renewable tax credits and avoided fuel costs, enable Xcel Energy to add renewable energy while saving customers money.

REACHING OUR GOALS RESPONSIBLY

We instituted oversight of environmental performance by the Board of Directors beginning in 2000 and was among the first U.S.

energy providers to tie carbon reduction to executive compensation over fifteen years ago.

In 2023, the Department of Energy announced awards of nearly $1.5 billion to support multiple Xcel Energy affiliated projects.

The Heartland Hydrogen Hub, which includes multiple projects from Xcel Energy and others in the Upper Midwest, received an award of up to $925 million by the DOE.

This funding will serve as a catalyst for a clean hydrogen ecosystem in the region.

The DOE also awarded Xcel Energy up to $70 million to support our two 10-MW, 100-hour battery pilots with Form Energy.

Combined with grants committed by Breakthrough Energy Catalyst, we have secured up to $90 million to support these long duration energy storage pilots, a critical asset class to ensure cost effective reliability in a high-renewable grid.

Xcel Energy was selected as part of two different awards from the DOE’s Grid Resilience and Innovation Partnership program.

The DOE awarded Xcel Energy $100 million to support projects to mitigate the threat of wildfires and ensure resiliency of the grid through extreme weather.

Xcel Energy was also party to GRIP’s $464 million grant to expand transmission as part of the MISO and SPP program to fund high-voltage transmission to improve inter-regional transfer capability, reliability and resolve grid constraints.

Xcel Energy actively engages in wildfire mitigation activities across our operating territories.

For the past three years, we have operated under a commission-approved wildfire plan in Colorado.

We are currently evaluating updates to these plans with a wide range of options for consideration including new technologies, undergrounding, additional vegetation management, composite poles, selective use of covered conductor and preventative power system shutoffs.

Sustainability Governance and Oversight

In 2000, we instituted oversight of environmental performance by the Board of Directors and were among the first U.S.

energy providers to tie carbon reduction to executive compensation more than 15 years ago.

Xcel Energy has provided a voluntary, third-party verified annual GHG disclosure since 2005, longer than any other U.S.

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Our disclosures also align with the Global Reporting Initiative, Sustainability Accounting Standards Board and United Nations Sustainable Development Goals frameworks.

ENHANCE THE CUSTOMER EXPERIENCE

Xcel Energy has invested more than $2 billion over the past decade in a portfolio of renewable and conservation programs that provide customers with clean energy options and help keep bills low.

New demand remains robust in our territories, including load growth from new data centers, industrial electrification and electric vehicle adoption.

As such, we are transforming and expanding our electric grid to accommodate load growth, renewable energy and distributed energy resources.

We are in the process of installing smart electric meters, which will deliver customer and operational benefits, providing near-real-time communication, allowing customers to know how much energy they are using and what it will cost.

In addition, customers will have new digital tools to make it easier to access their energy information, gain useful insights to understand and manage their energy use and make energy choices that lower their bills.

KEEP BILLS LOW

Customer affordability is critical to successful strategy execution.

From 2014 - 2023, we have kept residential electric bill growth to 1.8% per year and natural gas bill growth to 1.1% per year, both below the rate of inflation.

Based on available EIA data, the five year average residential electric and natural gas bills for an Xcel Energy customer were 28% and 14% below the national average, respectively.

Going forward, our goal is to enable the clean energy transition while keeping customer bill growth below the rate of inflation through initiatives including conservation programs, O&M cost control, our One Xcel Energy Way lean management initiative, advanced operational technologies and our Steel for Fuel program.

* Based on 2019 - Q3 2023 EIA Data

STRENGTHEN OUR COMMUNITIES

We provide a fundamental service, powering communities with safe, reliable, affordable and increasingly clean energy.

For our local communities, we initiated 40 economic development projects in 2022, which are projected to create over $1.8 billion in capital investments and 2,900 jobs.

Additionally, nearly 60% of our supply chain spend was local and we spent approximately $550 million with diverse suppliers.

Our employees served on more than 520 nonprofit organization or local community boards in 2022.

The Xcel Energy Foundation contributed $4.4 million to 426 nonprofit organizations that support its three charitable giving focus areas:

STEM Career Pathways, Environmental Sustainability, and Community Vitality.

The Foundation, Company, employees and retirees also contributed more than $5 million to local communities through Xcel Energy’s annual United Way Giving Campaign and nearly 3,000 volunteers participated in Xcel Energy’s annual Day of Service, supporting more than 100 nonprofit projects.

We provide a fundamental service, powering communities with safe, reliable, competitively priced and increasingly clean energy.

Investing in our communities is important to our collective success.

We initiated 18 economic development projects for our local communities in 2023, which are projected to create more than $2.3 billion in capital investments and 1,400 jobs.

Nearly 63% of our supply chain spend was local, with approximately $638 million spent with diverse suppliers.

Approximately 300 employees served on more than 530 nonprofit organizations or local community boards, providing over 28,000 volunteer hours in 2023.

Our annual Day of Service attracted 2,500 people who volunteered over 7,200 combined hours at over 120 nonprofit projects across the company’s service footprint.

In 2023, the Xcel Energy Foundation contributed $4 million to 409 nonprofit organizations that support its three charitable giving focus areas of STEM Career Pathways, Environmental Sustainability, and Community Vitality.

Through our 2023 Power Your Purpose Giving Campaign, Xcel Energy employees, contractors and retirees donated more than $2 million to over 1,300 nonprofit and community organizations – exceeding our fundraising goal.

Combined with the Xcel Energy Foundation match to local United Way chapters, this campaign raised over $4 million for our communities.

VALUE PEOPLE AND OPERATE WITH INTEGRITY

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The Board of Directors oversees our workforce strategy, including diversity and inclusion initiatives.

In 2021, Xcel Energy added an incentive-based metric focused on diverse interview panels, executive sponsorship and employee feedback on inclusion in the workplace.

A total of 70% of annual incentive pay was tied to safety, system reliability and diversity, equity and inclusion metrics.

Management continuously evaluates benefits to maintain a market-competitive, performance-based, shareholder-aligned total rewards package that supports our ability to attract, engage and retain a talented and diverse workforce, while reinforcing and rewarding strong performance.

We partner with educational and community organizations to attract and hire diverse employees who reflect the communities we serve and live our values.

Xcel Energy has an incentive-based metric focused on diverse interview panels, executive sponsorship and employee feedback on inclusion in the workplace.

A total of 70% of annual incentive compensation was tied to safety, system reliability and inclusion metrics.

Management evaluates compensation and benefits to maintain a market-competitive, performance-based, shareholder-aligned total rewards package that supports our ability to attract, engage and retain a talented and diverse workforce, while reinforcing and rewarding strong performance.

We partner with educational and community organizations to attract and hire employees who reflect the communities we serve and live our values.

Xcel Energy had 11,311 full-time employees and workforce demographics as of December 2023 were as follows:

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Interns (hired throughout 2023) 33 14

To help foster a culture of inclusivity, we offer leaders and employees training on microinequities and unconscious bias.

The Company hosts 12 business resource groups to support employee interests and obtain diverse perspectives when solving challenges and achieving goals.

We offer leaders and employees training on microinequities and unconscious bias to help foster a culture of inclusivity.

Xcel Energy hosts 12 business resource groups to support employee interests and obtain diverse perspectives when solving challenges and achieving goals.

Xcel Energy also respects employees’ freedom of association and their right to collectively organize.

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Bargaining 6 % Within next 5 years 19 %

Non-Bargaining 15 Within next 10 years 35

(a) 24% of turnover was due to retirements.

We have publicly confirmed our commitment to the advancement and protection of human rights, consistent with U.S.

Non-Bargaining (a)

22 Within next 10 years 31

(a) 37% of turnover was due to workforce reduction initiatives.

(b) 38% of turnover was due to retirements, including the impacts of the workforce reduction initiatives.

We are committed to the advancement and protection of human rights, consistent with U.S.

human rights laws and the general principles in the International Labour Organization Conventions.

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We expect and offer employees multiple avenues to raise concerns or report wrong-doing and do not permit any retaliation.

Xcel Energy received the following recognitions in 2022:

Fortune Human Rights Campaign Ethisphere GI Jobs

World’s Most Admired Companies Best Places to Work for LGBTQ Equality World’s Most Ethical Companies Military Friendly Employer

Xcel Energy is proud of our track record and continue to invest in building a best-in-class workforce.

We recently received the following recognitions:

• For the seventh consecutive year, The Human Rights Campaign selected Xcel Energy as a recipient of the Equality 100 Award:

Leader in LGBTQ+ Workplace Inclusion in 2023.

• For the eleventh consecutive year, Xcel Energy is one of Fortune’s Most Admired Companies in 2024.

• For the ninth consecutive year, Xcel Energy was listed as a Best for Vets employer by Military Times and also recognized as a 2024 Military Friendly Employer by VIQTORY.

• Xcel Energy is among the 2023 World’s Most Ethical Companies® according to Ethisphere.

Utility Subsidiaries

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Rate Base (estimated) $15.7 billion

ROE (net income / average stockholder's equity) 8.76%

GAAP ROE 8.82%

Electric generating capacity 9,081 MW

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Rate Base (estimated) $2.4 billion

ROE (net income / average stockholder's equity) 10.57%

GAAP ROE 10.38%

Electric generating capacity 551 MW

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Rate Base (estimated) $16.9 billion

ROE (net income / average stockholder's equity) 8.23%

GAAP ROE 7.32%

Electric generating capacity 6,203 MW

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Rate Base (estimated) $7.2 billion

ROE (net income / average stockholder's equity) 9.36%

GAAP ROE 9.80%

Electric generating capacity 5,100 MW

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See Item 2 — Properties for further information.

Wind capacity is shown as net maximum capacity.

Net maximum capacity is attainable only when wind conditions are sufficiently available.

Owned — Owned and operated wind farms with corresponding capacity:

Utility Subsidiary 2023 2022

Wind Farms Capacity (MW) (a)

Wind Farms Capacity (MW) (b)

Wind Farms Capacity (MW) Wind Farms Capacity (MW)

NSP System 17 2,444 16 2,352

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Total 21 4,488 20 4,395

(a) Summer 2022 net dependable capacity.

(b) Summer 2021 net dependable capacity.

PPAs — Number of PPAs with capacity range:

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SPS 16 1 — 250 17 1 — 250

Capacity — Wind capacity (MW) for owned wind farms and PPAs:

PPAs — Contracted wind capacity (MW) for PPAs:

Utility Subsidiary 2023 2022

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SPS 1,562 1,564

Average Cost (Owned) — Average cost per MWh of wind energy from owned generation:

Utility Subsidiary 2022 2021

NSP System $ 18 $ 25

Average Cost (PPAs) — Average cost per MWh of wind energy under existing PPAs:

Average Cost — Average cost per MWh of wind energy from owned generation and existing PPAs:

Utility Subsidiary 2023 2022

NSP System $ 37 $ 37

Owned Generation NSP System $ 7 $ 18

PPA NSP System 33 37

Owned Generation PSCo 7 11

PPA PSCo 42 38

Owned Generation SPS 6 13

PPA SPS 26 27

Wind Development — Xcel Energy placed into service, repowered, or contracted for the following during 2023:

Project Utility Subsidiary Capacity (MW)

Dakota Range NSP-Minnesota 298 (a)(b)

Nobles Repower NSP-Minnesota 200 (a)(b)

Rock Aetna NSP-Minnesota 20 (a)(b)

Various PPAs Various 220 (c)

(a) Summer 2022 net dependable capacity.

(b) Values disclosed are the maximum generation levels.

Capacity is attainable only when wind conditions are sufficiently available.

Xcel Energy currently has approximately 550 MW of owned wind under development or being repowered.

Project Utility Subsidiary Capacity (MW) Estimated Completion

Northern Wind NSP-Minnesota 92

Grand Meadow Repower NSP-Minnesota 99

Border Winds Repower NSP-Minnesota 150 2025

Pleasant Valley Repower NSP-Minnesota 200 2025

(a) Placed in service in January 2023.

Xcel Energy currently has approximately 1,900 MW of owned wind under development or being repowered.

This includes 350 MW of approved repowering projects at the NSP System estimated to be completed in 2025, as well as an anticipated approximately 1,550 MW at PSCo as part of the Colorado Resource Plan.

The Company also anticipates approval of an additional 300 MW of PPAs as part of the Colorado Resource Plan, additions are expected to be placed in service between 2026 - 2028.

PPAs — Solar PPAs capacity by type:

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Distributed Generation PSCo 887

Utility-Scale PSCo 732

Utility-Scale PSCo 1,530 (a)

Distributed Generation SPS 28

Utility-Scale SPS 192

(a) Includes battery storage capacity of 225 MW.

Average Cost (PPAs) — Average cost per MWh of solar energy under existing PPAs:

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NSP System $ 90 $ 79

Solar Development — In September 2022, the MPUC approved NSP-Minnesota's proposal to add 460 MW of solar facilities at the Sherco site.

The project is expected to cost approximately $690 million (two phases to be completed in 2024 and 2025).

As a result of the IRA, the levelized cost of the project is expected to be approximately 30% lower than previously estimated.

PSCo placed approximately 200 MW of PPAs into service during 2022 and expects to place approximately 800 MW (including storage) of PPAs into service during 2023.

Xcel Energy currently has approximately 2,900 MW of owned and PPA solar under development.

For the NSP System, this includes 700 MW of solar approved at the Sherco site which are expected to be placed in service in 2024 and 2025.

PSCo anticipates development of approximately 1,700 MW of solar generation resources (650 MW Company Owned, 1,050 MW as PPAs) as part of the Colorado Resource Plan.

Colorado Resource Plan additions are expected to be placed in service between 2026 - 2028.

For SPS, approximately 400 MW of solar and storage are pending regulatory approval (expected to be placed in service in 2026 and 2027).

Additionally, various PPAs totaling approximately 100 MW are expected to be completed throughout 2024 and 2025.

Xcel Energy has two nuclear plants with approximately 1,700 MW of total 2023 net summer dependable capacity that serve the NSP System.

Our nuclear fleet has become one of the best performing and dependable in the nation, as rated by both the NRC and INPO.

Our nuclear fleet safely and reliably generates carbon free electricity at consistently high levels of performance among the industry.

Xcel Energy secures contracts for uranium concentrates, uranium conversion, uranium enrichment and fuel fabrication to operate its nuclear plants.

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Other — Xcel Energy’s other carbon-free energy portfolio includes hydro from owned generating facilities.

PSCo anticipates development of approximately 1,850 MW of storage capacity (400 MW Company Owned, 1,450 MW as PPAs) as part of the Colorado Resource Plan.

Colorado Resource Plan additions are expected to be placed in service between 2026 - 2028.

See Item 2 — Properties for further information.

Xcel Energy’s fossil fuel energy portfolio includes coal and natural gas power from both owned generating facilities and PPAs.

Xcel Energy owns and operates coal units with approximately 6,200 MW of total 2022 net summer dependable capacity, which provided 23% of Xcel Energy’s energy mix in 2022.

Xcel Energy has plans to retire all of its existing coal generation by the end of 2030.

Xcel Energy owned and operated coal units with approximately 6,200 MW of total 2023 net summer dependable capacity, which provided 19% of Xcel Energy’s energy mix in 2023.

Amount includes Sherco Unit 2, which was retired on Dec.

31, 2023, net summer dependable capacity of 682 MW and approximately 100 MW derived from RDF and wood fuel sources.

Xcel Energy has plans to retire or convert to natural gas all of its existing coal generation by the end of 2030.

Approved early coal plant retirements:

Year Utility Subsidiary Plant Unit Capacity (MW)

2023 NSP-Minnesota Sherco 2 682

2024 SPS Harrington (a)

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2025 PSCo Craig 1 42 (b)

2025 PSCo Pawnee (c)

2025 PSCo Pawnee (a)

2026 NSP-Minnesota Sherco 1 680

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2030 PSCo Comanche 3 500

2034 SPS Tolk 1 (d)

2034 SPS Tolk 2 (d)

(a) Reflects expected conversion from coal to natural gas following the TCEQ order that Harrington cease use of coal fuel by Jan.

2034 SPS Tolk 1 (c)

2034 SPS Tolk 2 (c)

(a) Reflects conversion from coal to natural gas.

(b) Based on Xcel Energy’s ownership interest.

(d) Tolk Unit 1 and 2 are approved to be retired early in 2034.

S PS proposed to retire both units in 2028 in the pending New Mexico and Texas rate cases.

The NMPRC has approved a retirement date of 2028.

SPS has filed a Texas rate case settlement agreement pending PUCT approval for a retirement date of 2028.

Coal Fuel Cost — Delivered cost per MMBtu of coal consumed for owned electric generation and the percentage of fuel requirements (nuclear, natural gas and coal):

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2023 $ 2.43 29 %

(a) Includes refuse-derived fuel and wood for the NSP System.

(a) Includes RDF and wood for the NSP System.

Xcel Energy has 23 natural gas plants with approximately 8,100 MW of total 2023 net summer dependable capacity, which provided 30% of Xcel Energy’s mix in 2023.

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2023 $ 3.91 21 %

(a) Reflective of Winter Storm Uri.

PSCo anticipates development of approximately 650 MW of Company Owned natural gas generation, as part of the Colorado Resource Plan to help ensure resiliency and reliability.

Colorado Resource Plan additions are expected to be placed in service between 2026 - 2028.

Capacity and Demand

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System Peak Demand (MW)

9,245 June 20 8,837 June 9

PSCo 6,821 Sept.

23 9,245 June 20

PSCo 6,909 July 24 6,821 Sept.

SPS 4,372 Aug.

17 4,280 July 19

SPS 4,280 July 19 4,054 Aug.

Transmission lines deliver electricity at high voltages and over long distances from power sources to transmission substations closer to customers.

Transmission lines deliver electricity at high voltages and over long distances from power sources to substations closer to customers.

A strong transmission system ensures continued reliable and affordable service, ability to meet state and regional energy policy goals, and support for a diverse generation mix, including renewable energy.

Xcel Energy owns approximately 110,000 conductor miles of transmission lines, serving 22,000 MW of customer load, across its service territory.

Between 2023 and 2028, Xcel Energy plans to build approximately 1,700 additional conductor miles of transmission lines, primarily as part of the MISO Tranche 1 and Colorado Power Pathway projects.

Xcel Energy plans to build approximately 1,750 additional conductor miles of transmission lines, primarily as part of the MISO Tranche 1, MN Energy Connection and Colorado Power Pathway projects between 2024 and 2028.

See Item 2 - Properties for further information.

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Xcel Energy has a vast distribution network, owning and operating approximately 215,000 conductor miles of distribution lines across our eight-state service territory.

To continue providing reliable, affordable electric service and enable more flexibility for customers, we are working to digitize the distribution grid, while at the same time keeping it secure.

Xcel Energy plans to invest approximately $1.7 billion implementing new network infrastructure, smart meters, advanced software, equipment sensors and related data analytics capabilities.

31, 2022, Xcel Energy had spent approximately $765 million on these investments.

Investments of this nature will further improve reliability and reduce outage restoration times for our customers, while at the same time enabling new options and opportunities for increased efficiency savings.

31, 2023, Xcel Energy has invested approximately $1.1 billion of $1.6 billion to implement new network infrastructure, smart meters, advanced software, equipment sensors and related data analytics capabilities.

These investments will improve reliability and reduce outage restoration times for our customers, while enabling new options and opportunities for increased efficiency savings.

The new capabilities will also enable integration of battery storage and other distributed energy resources into the grid, including electric vehicles.

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Maximum daily output (firm and interruptible) and occurrence date:

Utility Subsidiary MMBtu Date MMBtu Date (a)

Utility Subsidiary MMBtu Date MMBtu Date

NSP-Minnesota 753,642 Feb.

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NSP-Wisconsin 158,029 Jan.

6 167,656 Feb.

PSCo 2,243,552 Dec.

22 2,316,283 Feb.

(a) Reflective of Winter Storm Uri.

30 187,961 Jan.

PSCo 2,190,155 Jan.

30 2,243,552 Dec.

Natural Gas Supply and Cost

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Average delivered cost per MMBtu of natural gas for regulated retail distribution:

Utility Subsidiary 2022 2021 (a)

Utility Subsidiary 2023 2022

NSP-Minnesota $ 5.31 $ 7.00

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PSCo 4.91 6.33

(a) Reflective of Winter Storm Uri.

NSP-Minnesota, NSP-Wisconsin and PSCo have natural gas supply transportation and storage agreements that include obligations for purchase and/or delivery of specified volumes or to make payments in lieu of delivery.

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As a result, the overall operating results may fluctuate substantially on a seasonal basis.

Additionally, Xcel Energy’s operations have historically generated less revenues and income when weather conditions are milder in the winter and cooler in the summer.

Additionally, Xcel Energy’s operations have historically generated less revenues and income when weather conditions are warmer in the winter and cooler in the summer.

Sales true-up and decoupling mechanisms mitigate the impacts of weather in certain jurisdictions.

Xcel Energy is subject to public policies that promote competition and development of energy markets.

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In addition, customers may have the option of substituting other fuels or relocating their facilities to a lower cost region.

Customers have the opportunity to supply their own power with distributed generation including solar generation and in most jurisdictions can currently avoid paying for most of the fixed production, transmission and distribution costs incurred to serve them.

Customers have the opportunity to supply their own power with distributed generation including solar generation and can currently avoid paying for most of the fixed production, transmission and distribution costs incurred to serve them in most jurisdictions.

Several states have incentives for the development of rooftop solar, community solar gardens and other distributed energy resources.

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The FERC has continued to promote competitive wholesale markets through open access transmission and other means.

Xcel Energy’s wholesale customers can purchase their output from generation resources of competing suppliers or non-contracted quantities and use the transmission systems of the utility subsidiaries on a comparable basis to serve their native load.

Xcel Energy’s wholesale customers can purchase energy from generation resources of competing generation resources quantities and transmission services from other service providers to serve their native load.

FERC Order No.

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Emerging Environmental Regulation

Clean Air Act — In April 2022, the EPA proposed regulations under the "Good Neighbor" provisions of the Clean Air Act.

The proposed rules apply to Minnesota, Texas and Wisconsin.

The proposal establishes an allowance trading program for NOx, potentially impacting Xcel Energy fossil fuel generating facilities.

Under the proposed rule, facilities without NOx controls will have to secure additional allowances, install NOx controls, or develop a strategy of operations that utilizes the existing allowance allocations.

The EPA has indicated that it intends for the rule to be final and applicable in the first half of 2023.

While the financial impacts of the proposed regulation are uncertain and dependent on market forces, Xcel Energy anticipates that costs will be approximately $60 million annually and will be recoverable through regulatory mechanisms based on prior state commission practices.

In a June 2022 ruling, the United States Supreme Court held that an economy-wide approach to reducing greenhouse gas emissions from coal-fired power plants was not consistent with the Clean Air Act.

Therefore, if the EPA proceeds with new rules, it cannot set a standard based on economy-wide generation shifting to other sources, such as renewable energy.

It is anticipated that EPA will propose rules to limit GHG emissions from new and existing coal and natural gas-fired electric generating units in 2023.

If any new rules require additional investment, Xcel Energy believes that the cost of these initiatives or replacement generation would be recoverable through rates based on prior state commission practices.

Coal Ash Regulation — In February 2023, the EPA entered into a Consent Decree, committing the agency to either issue new proposed rules by May 5, 2023, to regulate inactive CCR landfills under the CCR Rule for the first time, or to determine no such rules are necessary by that date.

If proposed rules are issued in May, the EPA has committed to a May 2024 effective date for the new rules.

Until proposed rules are issued, it is not certain what the impact will be on Xcel Energy, but we anticipate that additional inactive ash units could become regulated for the first time.

It is also anticipated that the EPA may issue other CCR proposed rules in 2023 that further expand the scope of the CCR Rule.

Emerging Contaminants of Concern — PFAS are man-made chemicals that are widely used in consumer products and can persist and bio-accumulate in the environment.

Clean Air Act

Power Plant Greenhouse Gas Regulations — In May 2023, the EPA published proposed rules addressing control of CO 2 emissions from the power sector.

The rule proposed regulations for new natural gas generating units and emission guidelines for existing coal and certain natural gas generation.

The proposed rules create subcategories of coal units based on planned retirement date and subcategories of natural gas combustion turbines and combined cycle units based on utilization.

The CO 2 control requirements vary by subcategory.

Until final rules are issued, it is not certain what the impact will be on Xcel Energy.

Xcel Energy believes that the cost of these initiatives or replacement generation would be recoverable through rates based on prior state commission practices.

Coal Ash Regulation

In May 2023, the EPA published proposed rules to regulate legacy CCR surface impoundments at inactive facilities and previously exempt areas where CCR was placed directly on land at regulated CCR facilities under the CCR Rule for the first time.

The proposed rule would subject these areas to the CCR Rule requirements, including groundwater monitoring, corrective action, closure, and post-closure care requirements, among other requirements, with several of the deadlines accelerated.

The EPA has committed to a May 2024 publication date for those new rules.

It is also anticipated that the EPA may issue other CCR proposed rules in 2024 and 2025 that further expand the scope of the CCR Rule.

Until final rules are issued, it is not certain what the impact will be on Xcel Energy.

Xcel Energy believes that the cost of these initiatives would be recoverable through rates based on prior state commission practices.

Emerging Contaminants of Concern

PFAS are man-made chemicals that are widely used in consumer products and can persist and bio-accumulate in the environment.

Xcel Energy does not manufacture PFAS but because PFAS are so ubiquitous in products and the environment, it may impact our operations.

In September 2022, the EPA proposed to designate two types of PFAS as “hazardous substances” under the Comprehensive Environmental Response, Compensation, and Liability Act, specifically perfluorooctanoic acid and perfluorooctanesulfonic acid.

This proposed rule could result in new obligations for investigation and cleanup wherever PFAS are found to be present.

The impact the proposed regulation may have on electric and gas utilities is currently uncertain.

In September 2022, the EPA proposed to designate two types of PFAS as “hazardous substances” under the CERCLA.

In March 2023, the EPA published a proposed rule that would establish enforceable drinking water standards for certain PFAS chemicals.

Final rules are expected in 2024.

Costs are uncertain until a final rule is published.

The proposed rules could result in new obligations for investigation and cleanup.

Xcel Energy is monitoring changes to state laws addressing PFAS.

The impact of these proposed regulations is uncertain.

Effluent Limitation Guidelines

In March 2023, the EPA released a proposed rule under the Clean Water Act, setting forth proposed Effluent Limitations Guidelines and Standards for steam generating coal plants.

This proposed rule establishes more stringent wastewater discharge standards for bottom ash transport water, flue-gas desulfurization wastewater, and combustion residuals leachate from steam electric power plants, particularly coal-fired power plants.

The impact of these proposed regulations is uncertain until a final rule is published.

Environmental Costs

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The precise timing and amount of environmental costs, including those for site remediation and disposal of hazardous materials, are unknown.

Additionally, the extent to which environmental costs will be included in and recovered through rates may fluctuate.

Additionally, the extent to which environmental costs will be recovered through rates may fluctuate.

Capital expenditures for environmental improvements were approximately:

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Information about our Executive Officers (a)

Current and Recent Positions Time in Position

Name Age Current and Recent Positions Time in Position

Frenzel 53 Chairman of the Board of Directors, Xcel Energy Inc.

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February 2012 — April 2016

Carter 56 Executive Vice President, Group President, Utilities, and Chief Customer Officer, Xcel Energy Inc.

March 2022 — Present

Executive Vice President and Chief Customer and Innovation Officer, Xcel Energy Inc.

May 2018 — March 2022

Senior Vice President and Shared Services Executive, Bank of America, an institutional investment bank and financial services company October 2015 — May 2018

Patricia Correa 50 Senior Vice President, Chief Human Resources Officer, Xcel Energy Inc.

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January 2015 — March 2020

Amanda Rome 42 Executive Vice President, Chief Legal and Compliance Officer, Xcel Energy Inc.

June 2022 — Present

Amanda Rome 43 Executive Vice President, Group President, Utilities, and Chief Customer Officer, Xcel Energy Inc.

October 2023 — Present

Interim General Counsel, Xcel Energy Inc.

January 2024 — Present

Executive Vice President, Chief Legal and Compliance Officer, Xcel Energy Inc.

June 2022 — October 2023

Executive Vice President, General Counsel, Xcel Energy Inc.

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October 2019 — June 2020

Managing Attorney, Xcel Energy Services Inc.

Positions of increasing responsibility in the Legal Department, Xcel Energy Services Inc.

July 2015 — October 2019

Rotational Position, Xcel Energy Services Inc.

January 2018 — July 2018

Lead Assistant General Counsel, Xcel Energy Services Inc.

July 2015 — January 2018

Van Abel 42 Executive Vice President, Chief Financial Officer, Xcel Energy Inc.

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(a) No family relationships exist between any of the executive officers or directors.

(b) Ages as of Feb.

(c) In April 2014, Energy Future Holdings Corp., the majority of its subsidiaries, including Texas Competitive Energy Holdings the parent company of Luminant, filed a voluntary bankruptcy petition under Chapter 11 of the United States Bankruptcy Code.

(b) In April 2014, Energy Future Holdings Corp., the majority of its subsidiaries, including Texas Competitive Energy Holdings the parent company of Luminant, filed a voluntary bankruptcy petition under Chapter 11 of the United States Bankruptcy Code.

Texas Competitive Energy Holdings emerged from Chapter 11 in October 2016.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business