Item 1. BUSINESS

Definitions of Abbreviations

Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)
Capital Services	Capital Services, LLC
Eloigne	Eloigne Company
e prime	e prime inc.
NSP-Minnesota	Northern States Power Company, a Minnesota corporation
NSP System	The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota
NSP-Wisconsin	Northern States Power Company, a Wisconsin corporation
Operating companies	NSP-Minnesota, NSP-Wisconsin, PSCo and SPS
PSCo	Public Service Company of Colorado
SPS	Southwestern Public Service Co.
Utility subsidiaries	NSP-Minnesota, NSP-Wisconsin, PSCo and SPS
WGI	WestGas InterState, Inc.
WYCO	WYCO Development, LLC
Xcel Energy	Xcel Energy Inc. and its subsidiaries

Federal and State Regulatory Agencies
CPUC	Colorado Public Utilities Commission
D.C. Circuit	United States Court of Appeals for the District of Columbia Circuit
DOC	Minnesota Department of Commerce
DOE	United States Department of Energy
DOT	United States Department of Transportation
EPA	United States Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
Fifth Circuit	United States Court of Appeals for the Fifth Circuit
IRS	Internal Revenue Service
Minnesota District Court	U.S. District Court for the District of Minnesota
MPSC	Michigan Public Service Commission
MPUC	Minnesota Public Utilities Commission
NDPSC	North Dakota Public Service Commission
NERC	North American Electric Reliability Corporation
NMPRC	New Mexico Public Regulation Commission
NRC	Nuclear Regulatory Commission
OAG	Minnesota Office of the Attorney General
PHMSA	Pipeline and Hazardous Materials Safety Administration
PSCW	Public Service Commission of Wisconsin
PUCT	Public Utility Commission of Texas
SDPUC	South Dakota Public Utilities Commission
SEC	Securities and Exchange Commission
TCEQ	Texas Commission on Environmental Quality

Electric, Purchased Gas and Resource Adjustment Clauses
CIP	Conservation improvement program
DCRF	Distribution cost recovery factor
DSM	Demand side management
DSMCA	Demand side management cost adjustment
ECA	Retail electric commodity adjustment
EECRF	Energy efficiency cost recovery factor
FCA	Fuel clause adjustment
FPPCAC	Fuel and purchased power cost adjustment clause
GCA	Gas cost adjustment
GUIC	Gas utility infrastructure cost rider

PCCA	Purchased capacity cost adjustment
PCRF	Power cost recovery factor
PGA	Purchased gas adjustment
PSIA	Pipeline system integrity adjustment
RDF	Renewable development fund
RER	Renewable energy rider
RES	Renewable energy standard
RESA	Renewable energy standard adjustment
SCA	Steam cost adjustment
SEP	State energy policy rider
TCA	Transmission cost adjustment
TCR	Transmission cost recovery adjustment
TCRF	Transmission cost recovery factor

Other
ADIT	Accumulated deferred income taxes
AFUDC	Allowance for funds used during construction
ARO	Asset retirement obligation
ASC	FASB Accounting Standards Codification
ASU	FASB Accounting Standards Update
BART	Best available retrofit technology
Boulder	City of Boulder, CO
C&I	Commercial and Industrial
CACJA	Clean Air Clean Jobs Act
CAISO	California Independent System Operator
CapX2020	Alliance of electric cooperatives, municipals and investor-owned utilities in the upper Midwest involved in a joint transmission line planning and construction effort
CBA	Collective-bargaining agreement
CCR	Coal combustion residuals
CCR Rule	Final rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as a nonhazardous waste
CDD	Cooling degree-days
CEO	Chief executive officer
CFO	Chief financial officer
CEP	Colorado Energy Plan
CIG	Colorado Interstate Gas Company, LLC
CPCN	Certificate of public convenience and necessity
CWA	Clean Water Act
CWIP	Construction work in progress
DECON	Decommissioning method where radioactive contamination is removed and safely disposed of at a requisite facility or decontaminated to a permitted level.
DRC	Development Recovery Company
DRIP	Dividend Reinvestment Program
EEI	Edison Electric Institute
ELG	Effluent limitations guidelines
EMANI	European Mutual Association for Nuclear Insurance
EPS	Earnings per share
EPU	Extended power uprate
ETR	Effective tax rate
FASB	Financial Accounting Standards Board
FTR	Financial transmission right
GAAP	Generally accepted accounting principles
GE	General Electric
GHG	Greenhouse gas

HDD	Heating degree-days
IM	Integrated market
IPP	Independent power producing entity
IRP	Integrated Resource Plan
ITC	Investment Tax Credit
JOA	Joint operating agreement
LSP Transmission	LSP Transmission Holdings, LLC
MDL	Multi-district litigation
MEC	Mankato Energy Center
MGP	Manufactured gas plant
MISO	Midcontinent Independent System Operator, Inc.
Moody’s	Moody’s Investor Services
NAAQS	National Ambient Air Quality Standard
Native load	Demand of retail and wholesale customers that a utility has an obligation to serve under statute or contract
NAV	Net asset value
NEIL	Nuclear Electric Insurance Ltd.
NOI	Notice of Inquiry
NOL	Net operating loss
O&M	Operating and maintenance
OATT	Open Access Transmission Tariff
PI	Prairie Island nuclear generating plant
Post-65	Post-Medicare
PPA	Purchased power agreement
Pre-65	Pre-Medicare
PTC	Production tax credit
REC	Renewable energy credit
ROE	Return on equity
ROFR	Right-of-first-refusal
ROU	Right-of-use
RPS	Renewable portfolio standards
RTO	Regional Transmission Organization
Standard & Poor’s	Standard & Poor’s Ratings Services
SERP	Supplemental executive retirement plan
SMMPA	Southern Minnesota Municipal Power Agency
SO2	Sulfur dioxide
SPP	Southwest Power Pool, Inc.
TCEH	Texas Competitive Energy Holdings
TCJA	2017 federal tax reform enacted as Public Law No: 115-97, commonly referred to as the Tax Cuts and Jobs Act
THI	Temperature-humidity index
TOs	Transmission owners
TransCo	Transmission-only subsidiary
TSR	Total shareholder return
VaR	Value at Risk
VIE	Variable interest entity
WOTUS	Waters of the U.S.

Measurements
Bcf	Billion cubic feet
KV	Kilovolts
KWh	Kilowatt hours
MMBtu	Million British thermal units
MW	Megawatts
MWh	Megawatt hours

Forward-Looking Statements

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2020 EPS guidance, long-term EPS and dividend growth rate, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

The following factors, in addition to those discussed elsewhere in this Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 (including 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 hereto), could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs, changes in regulation and subsidiaries’ ability to recover costs from customers; reductions in our credit ratings and the cost of maintaining certain contractual relationships; 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; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

Where to Find More Information

Xcel Energy’s 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 SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically at http://www.sec.gov.

Overview

Xcel Energy is a major U.S. regulated electric and natural gas delivery company headquartered in Minneapolis, Minnesota (incorporated in Minnesota in 1909). The Company serves customers in eight mid-western and western states, including portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Xcel Energy provides a comprehensive portfolio of energy-related products and services to approximately 3.7 million electric customers and 2.1 million natural gas customers through four utility subsidiaries (i.e., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS). Along with the utility subsidiaries, the transmission-only subsidiaries, 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) comprise the regulated utility operations. The Company’s significant nonregulated subsidiaries are Eloigne, Capital Services and Nicollet Holdings.

Utility Subsidiaries’ Service Territory
Electric customers	3.7 million
Natural gas customers	2.1 million
Total assets	$50.4 billion
Electric generating capacity	18,730 MW
Electric transmission lines (conductor miles)	108,238 miles
Electric distribution lines (conductor miles)	207,524 miles
Natural gas transmission lines	2,177 miles
Natural gas distribution lines	35,624 miles
Natural gas storage capacity	53.4 Bcf

Vision, Mission and Values

Strategic Priorities

Lead the Clean Energy Transition

For more than a decade, Xcel Energy has proactively managed the risk of climate change and increasing customer demand for renewable energy through a clean energy strategy that consistently seeks to reduce carbon emissions and aims to transition our operations for the future. We have successfully reduced our carbon emissions from generation serving our customers by nearly 44% from 2005 to 2019 and we are on track to reach 60% renewable generation by 2030. We expect to reduce our carbon footprint by 80% by 2030 (over 2005 levels) and aspire to serve all customers with 100% carbon-free electricity by 2050.

In addition to increasing our renewable generation, Xcel Energy is transitioning how we produce, deliver and encourage the efficient use of energy by:

•	Offering energy efficiency programs;

•	Retiring coal units and modernizing generating plants; and

•	Advancing power grid capabilities.

We are working to add over 4,700 MW of wind energy to our system by 2021, including 3,500 MW of owned wind and 1,200 MW of PPAs. Of the 3,500 MW of owned wind, 1,300 MW are now in service and 2,200 MW are under development or construction. This will bring our total wind capacity to over 11,000 MW by 2021.

Our long-term plan includes the addition of approximately 5,000 MW of solar energy by the early 2030s, 275 MW of battery storage and a potential ten-year extension of our Monticello nuclear plant. It also includes the retirement of multiple coal units totaling approximately 2,000 MW. Xcel Energy plans to continue to evaluate its coal fleet for other potential early retirements as part of state resource plans or other regulatory proceedings.

Enhance the Customer Experience

Customers’ energy expectations continue to evolve and Xcel Energy is committed to providing the options and solutions they want and value.

Xcel Energy continues to expand its renewable energy production and offerings, and further develop and promote DSM and conservation programs. Over the past decade, the Company has spent over $2.1 billion on these programs.

We are also in the process of transforming our electric grid to accommodate increased levels of renewables, distributed energy resources and corresponding data growth, while maintaining high levels of reliability and security.

We have partnered with policymakers, state agencies and innovative companies to develop nation-leading electric vehicle solutions for our customers. We are preparing for a substantial amount of electric vehicles on roads across our service territory by 2030 and are focused on providing helpful information, making installations simple and keeping customer bills affordable through new rates and programs. We anticipate offering innovative programs for electric vehicle customers in Minnesota, Wisconsin, and Colorado this year. We are filing comprehensive Transportation Electrification Plans in both Colorado and New Mexico in the coming year.

We continue to develop and deliver new renewable energy solutions for our residential and C&I customers who want more directly sourced energy. Through programs such as Renewable*Connect® and Windsource®, we match our customers’ needs without them needing to add expensive or on‑site equipment.

Keep Bills Low

Affordability is critical part of our customers’ experience. We are focused on the impact our operations, regulation and legislation have on their bills. Our objective is to keep bill increases at or below the rate of inflation.

Our utility service territories benefit from the geographic concentration of favorable renewable resources. Strong wind and high solar generation capacity factors lower the lifetime cost of these resources. This, coupled with renewable tax credits and avoided fuel costs, enables us to invest in more renewable generation, in which the capital costs are largely or completely offset by fuel savings. We call this our “Steel for Fuel” strategy.

Steel for Fuel not only expands the Company’s renewable portfolio, but allows delivery of carbon-free energy without raising customer bills through replacement of fossil fuel generation or fuel-free wind and solar.

Xcel Energy is working to keep long-term O&M expense relatively flat without compromising reliability or safety. We intend to accomplish this objective by continually improving processes, leveraging technology, proactively managing risk and maintaining a workforce prepared to meet the needs of our business today and tomorrow.

O&M declined 0.6% in 2019 even as we took the opportunity to invest more in key strategic and operational areas, including reducing operational risks and enhancing our customers’ experience. While Xcel Energy continues to invest prudently in appropriate areas, we remain committed to our long-term objective of improving operating efficiencies and taking costs out of the business.

Deliver a Competitive Total Return to Investors and Maintain Strong Investment Grade Credit Rating

Successful execution of our strategic objectives should allow Xcel Energy to continue to deliver a competitive total return for our shareholders.

Through our disciplined approach to business growth, financial investment, operations and safety, we are well positioned to continue delivering on our value proposition.

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

Our ongoing earnings have grown 6.1% annually since 2005 and our dividend has grown 6.3% annually from 2013-2019. We work to maintain senior secured debt credit ratings in the A range and senior unsecured debt credit ratings in the BBB+ to A range. Our current ratings are consistent with this objective.

Environmental, Social and Governance Leadership

Xcel Energy has consistently demonstrated industry leadership in mitigating climate, operational and financial risks, while remaining committed to our customers, communities, employees and investors. We have delivered tangible environmental, social and governance results in alignment with our four corporate values - committed, connected, safe and trustworthy.

Environmental

Xcel Energy has been the number one U.S. wind provider for 12 of the past 14 years.

We continue to lead the industry with one of the most aggressive carbon reduction goals among our peers. Our plans to achieve 80% reduction by 2030 are aligned with Paris Accord goals and have been independently validated by an Intergovernmental Panel on Climate Change expert.

In December 2018, Xcel Energy became the first major electric utility in the country to announce an aspiration to produce 100% carbon-free electricity for customers by 2050.

Social

Xcel Energy works to mitigate the employee and community impacts of early plant retirements. We provide affected employees with advanced notice and offer retraining and relocation opportunities. Through these efforts and natural attrition, Xcel Energy has had no layoffs as a result of plant retirements.

We have also worked to foster economic sustainability and continued affordability through partnering with communities, policymakers and customers impacted by coal plant retirements, to build facilities and attract new businesses. Examples include:

•	Near our Sherco plant, scheduled to close by 2030, we are partnering with local leadership and a major data center to locate a $600 million data center. Additionally, Xcel Energy actively worked to relocate a metal recycling plant near our plant; and

•	We retained Evraz Steel in Colorado, a major Pueblo employer, by partnering with the company and community to create an affordable solar solution to meet their needs.

Xcel Energy is an active community member. We recognize and carefully evaluate the broader potential economic impacts of our decisions and work to proactively support the people and economic health of our communities. In 2019, we spent $3.1 billion locally, donated nearly $11 million to local charities, continued to offer employees 40 hours of volunteer paid time off annually and our employees served on over 500 non-profit boards. Donations include Xcel Energy employee and Xcel Energy Foundation gifts.

As a member of diverse communities, we value and celebrate diversity and inclusion. For example:

•	Xcel Energy has offered domestic partner benefits since 1995;

•	The Company’s CEO has signed the Action for Diversity & Inclusion Pledge, for the advancement of diversity and inclusion within the workplace, and Xcel Energy has an employee-led Diversity & Inclusion Council;

•	We have been selected among the nation’s top corporations for lesbian, gay, bisexual, transgender, and queer equality by earning a perfect score on the Human Rights Campaign’s 2019 Corporate Equality Index for the past 4 years; and

•	Xcel Energy was named to the 2019 Military Times Best for Vets Employers rankings for the sixth straight year and currently employs more than 1,000 veterans, nearly 10% of our workforce.

Governance

Xcel Energy has a diverse and qualified Board of Directors committed to effective governance.

The Company first adopted an environmental policy and instituted Board of Directors’ oversight of environmental performance in 2000, followed by publication of our corporate responsibility report in 2005.

We consistently set aggressive goals and hold ourselves accountable, to our customers, our communities and our investors. Additionally, Xcel Energy was among the first U.S. utilities to tie carbon reduction directly to executive compensation over fifteen years ago and is one of three peer utilities who do so today.

We are also focused on safety for our employees and our communities. In 2019, 60% of annual incentive pay was tied to safety and system reliability. Employees at every level have “stop work authority” and are instrumental in keeping each other and our surrounding communities safe.

Utility Subsidiaries

NSP-Minnesota
Electric customers	1.5 million			NSP-Minnesota conducts business in Minnesota, North Dakota and South Dakota and has electric operations in all three states including the generation, purchase, transmission, distribution and sale of electricity. NSP-Minnesota and NSP-Wisconsin electric operations are managed on the NSP System. NSP-Minnesota also purchases, transports, distributes and sells natural gas to retail customers and transports customer-owned natural gas in Minnesota and North Dakota.
Natural gas customers	0.6 million
Consolidated earnings contribution	35% to 45%
Total assets	$19.9 billion
Rate Base	$11.2 billion
ROE	9.31%
Electric generating capacity	7,712 MW
Gas storage capacity	17.1 Bcf
Electric transmission lines (conductor miles)	33,528 miles
Electric distribution lines (conductor miles)	80,186 miles
Natural gas transmission lines	86 miles
Natural gas distribution lines	10,518 miles

NSP-Wisconsin
Electric customers	0.3 million			NSP-Wisconsin conducts business in Wisconsin and Michigan and generates, transmits, distributes and sells electricity. NSP-Minnesota and NSP-Wisconsin electric operations are managed on the NSP System. NSP-Wisconsin also purchases, transports, distributes and sells natural gas to retail customers and transports customer-owned natural gas.
Natural gas customers	0.1 million
Consolidated earnings contribution	5% to 10%
Total assets	$2.8 billion
Rate Base	$1.7 billion
ROE	8.27%
Electric generating capacity	548 MW
Gas storage capacity	3.8 Bcf
Electric transmission lines (conductor miles)	12,285 miles
Electric distribution lines (conductor miles)	27,504 miles
Natural gas transmission lines	3 miles
Natural gas distribution lines	2,473 miles

PSCo
Electric customers	1.5 million			PSCo conducts business in Colorado and generates, purchases, transmits, distributes and sells electricity. PSCo also purchases, transports, distributes and sells natural gas to retail customers and transports customer-owned natural gas.
Natural gas customers	1.4 million
Consolidated earnings contribution	35% to 45%
Total assets	$19.0 billion
Rate Base	$12.4 billion
ROE	8.69%
Electric generating capacity	5,666 MW
Gas storage capacity	32.5 Bcf
Electric transmission lines (conductor miles)	24,008 miles
Electric distribution lines (conductor miles)	78,023 miles
Natural gas transmission lines	2,057miles
Natural gas distribution lines	22,633 miles

SPS
Electric customers	0.4 million			SPS conducts business in Texas and New Mexico and generates, purchases, transmits, distributes and sells electricity.
Consolidated earnings contribution	15% to 20%
Total assets	$7.9 billion
Rate base	$4.9 billion
ROE	9.71%
Electric generating capacity	4,804 MW
Electric transmission lines	38,418 miles
Electric distribution lines	21,810 miles

Operations Overview

Utility operations are generally conducted as either electric or gas utilities in our four utility subsidiaries.

Electric Operations

Electric operations consist of energy supply, generation, transmission and distribution activities across all four operating companies. Xcel Energy had electric sales volume of 116,317 (millions of KWh), 3,662,701 customers and electric revenues of $9,575 (millions of dollars) for 2019.

Sales/Revenue Statistics

		2019				2018
KWh sales per retail customer		24,712				25,263
Revenue per retail customer		$2,244				$	2,257
Residential revenue per KWh			11.97	¢			11.78	¢
Large C&I revenue per KWh			5.96	¢			5.91	¢
Small C&I revenue per KWh			9.43	¢			9.21	¢
Total retail revenue per KWh			9.08	¢			8.93	¢

Owned and Purchased Energy Generation — 2019

Electric Energy Sources

Total electric generation by source (including energy market purchases) for the year ended Dec. 31, 2019:

Distributed generation from the SolarRewards® program is not included (approximately 538 million KWh for 2019)

Renewable Energy Sources

Xcel Energy’s renewable energy portfolio includes wind, hydroelectric, biomass and solar power from both owned generating facilities and PPAs. Renewable percentages will vary year over year based on system additions, weather, system demand and transmission constraints.

See Item 2 — Properties for further information.

Renewable energy as a percentage of total energy for 2019:

(a)	Includes biomass and hydroelectric

Wind Energy Sources

Owned — Owned and operated wind farms with corresponding capacity:

		2019				2018
Utility Subsidiary		Wind Farms		Capacity		Wind Farms		Capacity
NSP System		7		1,090 MW		5		840 MW
PSCo		1		600 MW		1		600 MW
SPS		1		478 MW		—		—

PPAs — Number of PPAs with range:

Utility Subsidiary		2019				2018
	PPAs		Range		PPAs		Range
NSP System		131		0.7 MW — 205.5 MW		132		0.7 MW - 205.5 MW
PSCo		20		2.0 MW — 300.5 MW		19		2.0 MW - 300.5 MW
SPS		18		0.7 MW — 250.0 MW		18		0.7 MW - 250.0 MW

Capacity — Wind capacity:

Utility Subsidiary		2019		2018
NSP System		2,780 MW		2,550 MW
PSCo		3,165 MW		3,160 MW
SPS		2,045 MW		1,565 MW

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

Utility Subsidiary (a)		2019				2018
NSP System		$	35			$	37
PSCo		47				—

(a)	The table reflects owned wind sites that were in commercial operation for the full calendar year. The Hale wind farm for SPS was put into service in June 2019 and the Rush Creek wind farm was put into service in December 2018.

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

Utility Subsidiary		2019				2018
NSP System		$	41			$	44
PSCo		41				43
SPS		25				26

Wind Energy Development

Xcel Energy is executing the largest multi-state wind investment in the nation and placed approximately 1,300 MW of owned wind and approximately 300 MW of PPAs into service during 2018-2019:

Project		Utility Subsidiary		Capacity
Rush Creek		PSCo		582 MW
Hale		SPS		460 MW
Foxtail		NSP-Minnesota		150 MW
Lake Benton		NSP-Minnesota		99 MW
Various PPAs		Various		~300 MW

As part of the multi-state wind investment, Xcel Energy currently has approximately 2,200 MW of owned wind under development or construction and approximately 900 MW of planned PPAs with an estimated completion date of 2021 or earlier:

Project		Utility Subsidiary		Capacity		Estimated Completion
Freeborn		NSP-Minnesota		200 MW		2020
Blazing Star 1		NSP-Minnesota		200 MW		2020
Blazing Star 2		NSP-Minnesota		200 MW		2020
Crowned Ridge (a)		NSP-Minnesota		200 MW		2020
Jeffers (b)		NSP-Minnesota		44 MW		2020
Community Wind North(b)		NSP-Minnesota		26 MW		2020
Dakota Range		NSP-Minnesota		300 MW		2021
Cheyenne Ridge		PSCo		500 MW		2020
Sagamore		SPS		522 MW		2020
Various PPAs		Various		~900 MW		2020 - 2021

(a)	Build-own-transfer project.

(b)	Repowering project.

Solar Energy Sources

Solar energy PPA(s):

Type		Utility Subsidiary		Capacity
Distributed Generation		NSP System		736 MW
Utility-Scale		NSP System		266 MW
Distributed Generation		PSCo		557 MW
Utility-Scale		PSCo		305 MW
Distributed Generation		SPS		10 MW
Utility-Scale		SPS		191 MW

Other Carbon-Free Energy Sources

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

See Item 2 — Properties for further information.

Nuclear Energy Sources

Xcel Energy has two nuclear plants with approximately 1,700 MW of total 2019 net summer dependable capacity that serves the NSP-System. Our nuclear fleet has become one of the safest and well-run in the nation, as rated by both the NRC and INPO.

The Company secures contracts for uranium concentrates, uranium conversion, uranium enrichment and fuel fabrication to operate its nuclear plants. The contract strategy involves a portfolio of spot purchases and medium and long-term contracts for uranium concentrates, conversion services and enrichment services with multiple producers and with a focus on diversification and alternate sources to minimize potential impacts caused by supply interruptions due to geographical and world political issues.

Nuclear Fuel Cost

Delivered cost per MMBtu of nuclear fuel consumed for owned electric generation and the percentage of total fuel requirements:

Utility Subsidiary		Nuclear
NSP System		Cost				Percent
2019		$	0.81			45	%
2018		0.80				45

Fossil Fuel Energy Sources

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

See Item 2 — Properties for further information.

Coal Energy Sources

Xcel Energy owns and operates nine coal plants with approximately 6,500 MW of total 2019 net summer dependable capacity.

Our operating companies have embarked on an industry-leading coal retirement program with permission from its key regulatory bodies.

Approved and proposed coal plant retirements:

Approved (2019 to 2027)
Year		Utility Subsidiary		Plant		Capacity
2022		PSCo		Comanche 1		325 MW
2023		NSP-Minnesota		Sherco 2		682 MW
2025		PSCo		Comanche 2		335 MW
2025		PSCo		Craig 1		42 MW
2026		NSP-Minnesota		Sherco 1		680 MW

Proposed (2028 to 2030)
Year		Utility Subsidiary		Plant		Capacity
2028		NSP-Minnesota		A.S King		511 MW
2030		NSP-Minnesota		Sherco 3		517 MW

Coal Fuel Cost

Delivered cost per MMBtu of coal consumed for owned electric generation and percentage of fuel requirements:

		Coal (a)
Utility Subsidiary		Cost				Percent
NSP System
2019		$	2.02			36	%
2018		2.13				42
PSCo
2019		1.45				55
2018		1.45				62
SPS
2019		2.19				45
2018		2.04				56

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

Natural Gas Energy Sources

Xcel Energy has 22 natural gas plants with approximately 7,900 MW of total 2019 net summer dependable capacity.

Natural gas supplies, transportation and storage services for power plants are procured to provide an adequate supply of fuel. Remaining requirements are procured through a liquid spot market. Generally, natural gas supply contracts have variable pricing that is tied to natural gas indices. Natural gas supply and transportation agreements include obligations for the purchase and/or delivery of specified volumes or payments in lieu of delivery.

Natural Gas Cost

Delivered cost per MMBtu of natural gas consumed for owned electric generation and percentage of total fuel requirements:

		Natural Gas
Utility Subsidiary		Cost				Percent
NSP System
2019		$	3.09			19	%
2018		3.87				13
PSCo
2019		3.27				45
2018		3.74				38
SPS
2019		1.14				55
2018		2.24				44

Capacity and Demand

Uninterrupted system peak demand and occurrence date for the regulated utilities:

		System Peak Demand (in MW)
Utility Subsidiary		2019					2018
NSP System		8,774			July 19		8,927			June 29
PSCo		7,111			July 19		6,718			July 10
SPS		4,261			Aug. 5		4,648			July 19

Transmission

Transmission lines deliver electricity over long distances from power sources to transmission substations closer to homes and businesses. A strong transmission system ensures continued reliable and affordable service, ability to meet state and regional energy policy goals, and support a diverse generation mix, including renewable energy. Xcel Energy owns more than 20,000 miles of transmission lines, serving 22,000 MW of customer load.

Transmission projects completed in 2019 include:

Project		Utility Subsidiary		Miles			Size
Maple River-Red River		NSP-Minnesota		5			115 KV
Nelson-Wabasha		NSP-Wisconsin		2			69 KV
Pawnee-Daniels Park		PSCo		125			345 KV
Thornton Substation		PSCo		2			115 KV
TUCO-Yoakum-Hobbs		SPS		64			345 KV
NEF-Cardinal		SPS		15			115 KV
Potash Junction-Livingston Ridge		SPS		15			115 KV
Mustang-Shell		SPS		9			115 KV
North Loving-South Loving		SPS		3			115 KV
Cunningham-Monument Tap		SPS		7			115 KV

Notable upcoming projects:

Project		Utility Subsidiary		Miles			Size		Completion Date
Huntley-Wilmarth		NSP-Minnesota		50			345 KV		2021
Bayfield Second Circuit		NSP-Wisconsin		19			35 KV		2022
Cheyenne Ridge		PSCo		65			345 KV		2020
TUCO-Yoakum-Hobbs		SPS		106			345 KV		2020
Eddy-Kiowa		SPS		34			345 KV		2020

See Item 2 - Properties for further information.

Distribution

Distribution lines allow electricity to travel from substations directly to homes and businesses in neighborhoods and cities around the country. Xcel Energy has a vast distribution network, owning and operating thousands of miles of distribution lines across our eight-state service territory, both above ground and underground.

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. Over the next five years, the Company will invest $1.4 billion implementing new network infrastructure, smart meters, advanced software, equipment sensors and related data analytics capabilities. These investments 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. The new capabilities will also enable integration of battery storage and other distributed energy resources into the grid, including electric vehicles.

In 2019, Xcel Energy implemented foundational software and completed our initial smart meter deployment in Colorado as planned, with full-scale implementation to follow. We also requested approval to expand our advanced grid program to benefit our Minnesota customers and expect a Commission decision in late 2020. We plan to have smart meters implemented across our Colorado and Minnesota service territories by the end of 2024.

See Item 2 - Properties for further information.

Natural Gas Operations

Natural gas operations consist of purchase, transportation and distribution of natural gas to end use residential, C&I and transport customers in NSP-Minnesota, NSP-Wisconsin and PSCo. Xcel Energy had natural gas deliveries of 463,185 (thousands of MMBtu), 2,068,129 customers and natural gas revenues of $1,868 (millions of dollars) for 2019.

Sales/Revenue Statistics

		2019				2018
MMBtu sales per retail customer		129.31				120.51
Revenue per retail customer		$	851.94			$	785.86
Residential revenue per MMBtu		7.14				7.01
C&I revenue per MMBtu		5.73				5.76
Transportation and other revenue per MMBtu		0.57				0.80

Capability and Demand

Natural gas supply requirements are categorized as firm or interruptible (customers with an alternate energy supply).

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

		2019					2018
Utility Subsidiary		MMBtu			Date		MMBtu			Date
NSP-Minnesota		897,615		(a)	Feb. 25		786,751			Jan. 12
NSP-Wisconsin		166,009		(a)	Jan. 30		159,700			Jan. 5
PSCo		2,139,420		(a)	March 3		1,903,878			Feb. 20

(a)	Increase in maximum MMBtu output due to colder winter temperatures in 2019.

Natural Gas Supply and Cost

Xcel Energy actively seeks natural gas supply, transportation and storage alternatives to yield a diversified portfolio, which provides increased flexibility, decreased interruption and financial risk, and economic customer rates. In addition, the utility subsidiaries conduct natural gas price hedging activities approved by their state commissions.

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

Utility Subsidiary		2019				2018
NSP-Minnesota		$	3.71			$	4.03
NSP-Wisconsin		3.49				3.84
PSCo		2.95				3.20

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.

See Item 2 - Properties for further information.

General

General Economic Conditions

Economic conditions may have a material impact on Xcel Energy’s operating results. Other events impact overall economic conditions and management cannot predict the impact of fluctuating energy prices, terrorist activity, war or the threat of war. We could experience a material impact to its results of operations, future growth or ability to raise capital resulting from a sustained general slowdown in economic growth or a significant increase in interest rates.

Seasonality

Demand for electric power and natural gas is affected by seasonal differences in the weather. In general, peak sales of electricity occur in the summer months and peak sales of natural gas occur in the winter months. 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.

Competition

The Company is subject to public policies that promote competition and development of energy markets. Xcel Energy’s industrial and large commercial customers have the ability to generate their own electricity. 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.

Several states have incentives for the development of rooftop solar, community solar gardens and other distributed energy resources. Distributed generating resources are potential competitors to Xcel Energy’s electric service business with these incentives and federal tax subsidies.

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.

FERC Order No. 1000 established competition for construction and operation of certain new electric transmission facilities. State utilities commissions have also created resource planning programs that promote competition for electricity generation resources used to provide service to retail customers.

Xcel Energy Inc.’s utility subsidiaries have franchise agreements with cities subject to periodic renewal; however, a city could seek alternative means to access electric power or gas, such as municipalization.

While each utility subsidiary faces these challenges, Xcel Energy believes their rates and services are competitive with alternatives currently available.

Public Utility Regulation

See Item 7 for discussion of public utility regulation.

Environmental

Environmental Regulation

Our facilities are regulated by federal and state agencies that have jurisdiction over air emissions, water quality, wastewater discharges, solid wastes and hazardous substances. Various company activities require registrations, permits, licenses, inspections and approvals from these agencies. Xcel Energy has received necessary authorizations for the construction and continued operation of its generation, transmission and distribution systems. Our facilities have been designed and constructed to operate in compliance with applicable environmental standards and related monitoring and reporting requirements. However, it is not possible to determine when or to what extent additional facilities or modifications of existing or planned facilities will be required as a result of changes to regulations, interpretations or enforcement policies or what effect future laws or regulations may have. We may be required to incur expenditures in the future for remediation of MGP and other sites if it is determined that prior compliance efforts are not sufficient.

In Minnesota, Texas and Wisconsin, Xcel Energy must comply with emission budgets that require the purchase of emission allowances from other utilities. The Denver North Front Range Nonattainment Area does not meet either the 2008 or 2015 ozone NAAQS. Colorado will continue to consider further reductions available in the non-attainment area as it develops plans to meet ozone standards. Gas plants which operate in PSCo’s non-attainment area may be required to improve or add controls, implement further work practices and/or enhanced emissions monitoring as part of future Colorado state plans.

There are significant present/future environmental regulations to encourage use of clean energy technologies and regulate emissions of GHGs. We have undertaken numerous initiatives to meet current requirements and prepare for potential future regulations, reduce GHG emissions and respond to state renewable and energy efficiency goals. If future environmental regulations do not take into consideration investments already made or if additional initiatives or emission reductions are required, substantial costs may be incurred.

In July 2019, the EPA adopted the Affordable Clean Energy rule, which requires states to develop plans for GHG reductions from coal-fired power plants. The state plans, due to the EPA in July 2022, will evaluate and potentially require heat rate improvements at existing coal-fired plants. It is not yet known how these state plans will affect our existing coal plants, but they could require substantial additional investment, even in plants slated for retirement. Xcel Energy believes, based on prior state commission practice, the cost of these initiatives or replacement generation would be recoverable through rates.

In 2019, Xcel Energy estimates that it reduced the carbon emissions associated with the electric generating resources, both owned and under PPAs, used to serve its customers by approximately 44% from 2005 levels.

Environmental Costs

Environmental costs include accruals for nuclear plant decommissioning and payments for storage of spent nuclear fuel, disposal of hazardous materials and waste, remediation of contaminated sites, monitoring of discharges to the environment and compliance with laws and permits with respect to emissions.

Costs charged to operating expenses for nuclear decommissioning, spent nuclear fuel disposal, environmental monitoring and remediation and disposal of hazardous materials and waste were approximately:

•	$345 million in 2019;

•	$335 million in 2018; and

•	$315 million in 2017.

Average annual expense of approximately $400 million from 2020 – 2024 is estimated for similar costs. 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.

Capital expenditures for environmental improvements were approximately:

•	$30 million in 2019;

•	$50 million in 2018; and

•	$60 million in 2017.

See Item 7 — Capital Requirements for further discussion.

Capital Spending and Financing

See Item 7 for discussion of capital expenditures and funding sources.

Employees

As of Dec. 31, 2019, Xcel Energy had 11,273 full-time employees and 44 part-time employees, of which 5,091 were covered under CBAs.

		Employees Covered by CBAs			Total Employees
NSP-Minnesota		2,036			3,203
NSP-Wisconsin		392			538
PSCo		1,884			2,369
SPS		779			1,158
XES		—			4,005
Total		5,091			11,273

Information about our Executive Officers (a)
Name		Age (b)		Current and Recent Positions		Time in Position
Ben Fowke (c)		61		Chairman of the Board, President and Chief Executive Officer and Director, Xcel Energy Inc.		August 2011 — Present
				Chief Executive Officer, NSP-Minnesota, NSP-Wisconsin, PSCo, and SPS		January 2015 — Present
Brett C. Carter		53		Executive Vice President and Chief Customer and Innovation Officer, Xcel Energy Inc.		May 2018 — Present
				Senior Vice President and Shared Services Executive, Bank of America, an institutional investment bank and financial services company		October 2015 — May 2018
				Senior Vice President and Chief Operating Officer, Bank of America		March 2015 — October 2015
				Senior Vice President and Chief Distribution Officer, Duke Energy Co., an electric power company		February 2013 — March 2015
Christopher B. Clark		53		President and Director, NSP-Minnesota		January 2015 — Present
David L. Eves (d)		61		Executive Vice President and Group President, Utilities, Xcel Energy Inc.		March 2018 — Present
				President and Director, PSCo		January 2015 — February 2018
Darla Figoli		57		Senior Vice President, Human Resources & Employee Services, Chief Human Resources Officer, Xcel Energy Inc.		May 2018 — Present
				Senior Vice President, Human Resources and Employee Services, Xcel Energy Inc.		May 2015 — May 2018
				Vice President, Human Resources, Xcel Energy Inc.		February 2010 — May 2015
Robert C. Frenzel (c)		49		Executive Vice President, Chief Financial Officer, Xcel Energy Inc.		May 2016 — Present
				Senior Vice President and Chief Financial Officer, Luminant, a subsidiary of Energy Future Holdings Corp. (e)		February 2012 — April 2016
David T. Hudson		59		President and Director, SPS		January 2015 — Present
Alice Jackson		41		President and Director, PSCo		May 2018 — Present
				Area Vice President, Strategic Revenue Initiatives, Xcel Energy Services Inc.		November 2016 — May 2018
				Regional Vice President, Rates and Regulatory Affairs, PSCo		November 2013 — November 2016
Kent T. Larson (f)		60		Executive Vice President and Group President Operations, Xcel Energy Inc.		January 2015 — Present
Timothy O’Connor (g)		60		Senior Vice President, Chief Nuclear Officer, Xcel Energy Services Inc.		February 2013 — Present
Judy M. Poferl (h)		60		Senior Vice President, Corporate Secretary and Executive Services, Xcel Energy Inc.		January 2015 — Present
Jeffrey S. Savage		48		Senior Vice President, Controller, Xcel Energy Inc.		January 2015 — Present
Mark E. Stoering		59		President and Director, NSP-Wisconsin		January 2015 — Present
Scott M. Wilensky		63		Executive Vice President, General Counsel, Xcel Energy Inc.		January 2015 — Present

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

(b)	Ages as of Dec. 31, 2019.

(c)	Effective March 31, 2020, Mr. Fowke will cease to serve as President and Mr. Frenzel will become President and Chief Operating Officer of Xcel Energy Inc. At the same time, Brian J. Van Abel will become Executive Vice President, Chief Financial Officer of Xcel Energy Inc.

(d)	Effective May 1, 2020, Mr. Eves will be retiring from the Company after retiring from his executive officer positions effective March 30, 2020.

(e)	In April 2014, Energy Future Holdings Corp., the majority of its subsidiaries, including TCEH the parent company of Luminant, filed a voluntary bankruptcy petition under Chapter 11 of the United States Bankruptcy Code. TCEH emerged from Chapter 11 in October 2016.

(f)	Effective May 31, 2020, Mr. Larson will be leaving the Company after ceasing to serve in his executive officer positions effective March 30, 2020.

(g)	Effective March 31, 2020, Mr. O’Connor will become Executive Vice President, Chief Generation Officer.

(h)	Effective March 31, 2020, Ms. Poferl will be retiring from the Company. Frank Prager has been elected to serve with the title of Senior Vice President, Strategy and Planning and External Affairs effective March 1, 2020.