UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-3034 Xcel Energy Inc. (Exact Name of Registrant as Specified in its Charter) Minnesota 41-0448030 (State or Other Jurisdiction ...

2022 Q1 EARNINGS REPORT PRESENTATION APRIL 28, 2022 Safe Harbor Except for the historical statements contained in this presentation, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2022 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, ...

PART I [Item 1 — Business](index=3&type=section&id=Item%201%20%E2%80%94%20Business) Xcel Energy is a major U.S. regulated electric and natural gas delivery company focused on clean energy transition and customer experience [Definitions of Abbreviations](index=4&type=section&id=Definitions%20of%20Abbreviations) [Where to Find More Information](index=5&type=section&id=Where%20to%20Find%20More%20Information) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Overview](index=6&type=section&id=Overview) Key Operational and Financial Metrics | Metric | Value | | :--- | :--- | | Electric customers | 3.7 million | | Natural gas customers | 2.1 million | | Total assets | $57.9 billion | | Electric generating capacity | 20,653 MW | | Natural gas storage capacity | 53.4 Bcf | | Electric transmission lines (conductor miles) | 111,434 miles | | Electric distribution lines (conductor miles) | 210,470 miles | | Natural gas transmission lines | 2,293 miles | | Natural gas distribution lines | 36,510 miles | [Strategy](index=6&type=section&id=Strategy) - Strategic Priorities: Lead the Clean Energy Transition, Enhance the Customer Experience, Keep Bills Low[17](index=17&type=chunk) - Sustainability Commitment: First U.S. energy provider to set aggressive GHG reduction goals across electricity, natural gas, and transportation sectors[18](index=18&type=chunk) - Net-zero methane emissions on natural gas system by **2030**[20](index=20&type=chunk) [Values and Culture](index=8&type=section&id=Values%20and%20Culture) - Core values are Connected, Committed, Safe, Trustworthy, underpinning all business operations and strategic priorities[21](index=21&type=chunk)[22](index=22&type=chunk) [Lead the Clean Energy Transition](index=8&type=section&id=Lead%20the%20Clean%20Energy%20Transition) - Carbon-free electricity target: **100% by 2050**, interim **80% reduction by 2030** (from 2005 levels)[24](index=24&type=chunk) - Estimated **50% carbon emission reduction** from generation serving customers by 2021 (from 2005 levels)[26](index=26&type=chunk) - Coal-free by **2034**[32](index=32&type=chunk) - Projected **~80% of energy** will come from carbon-free resources by 2030[34](index=34&type=chunk) - Planned **~10,000 MW** of additional renewables over the next decade[37](index=37&type=chunk) - Commitment to reduce natural gas GHG emissions by **25% by 2030** (from 2020 levels) and net-zero natural gas service by **2050**[37](index=37&type=chunk) - Aim to enable **1.5 million EVs** across its states by 2030, representing a nearly **$2 billion investment**[37](index=37&type=chunk) [Enhance the Customer Experience](index=10&type=section&id=Enhance%20the%20Customer%20Experience) - Installed over **300,000 smart meters** in 2021 and plans to install more than **one million in 2022**[39](index=39&type=chunk) - Launched **12 EV programs** for residential and commercial customers[40](index=40&type=chunk) - Initiated **20 economic development projects** in 2021, projected to lead to over **$1 billion in capital investments** and **5,000 jobs**[40](index=40&type=chunk) [Keep Bills Low](index=10&type=section&id=Keep%20Bills%20Low) - Managed average residential bill growth to **below 1% annually** since 2013 (electric: **0.8%**, natural gas: **0.3%**)[41](index=41&type=chunk) - Invested more than **$2 billion** over the past decade in conservation programs[42](index=42&type=chunk) - Delivered more than **$1.8 billion** in customer savings by adding owned wind to the system[43](index=43&type=chunk) - Anticipates sales growth from electric vehicles will help keep bills low for all customers, providing approximately **$1 billion in annual fuel savings by 2030**[43](index=43&type=chunk) [Deliver a Competitive Total Return to Investors](index=10&type=section&id=Deliver%20a%20Competitive%20Total%20Return%20to%20Investors) Investor Return Targets and Performance | Metric | Target/Performance | | :--- | :--- | | Total Shareholder Return | ~8-10% | | EPS Growth | 5-7% | | Dividend Yield | ~3% | | Dividend Growth (CAGR) | 5-7% | | Payout Ratio | 60-70% | | GAAP earnings growth (past 5 years) | 6% annually | | Annual dividend growth (past 5 years) | 6.1% | | Senior secured debt credit ratings | A range | | Senior unsecured debt credit ratings | BBB+ to A range | [Human Capital](index=10&type=section&id=Human%20Capital) - Prioritizes continuous elevation of workplace quality and safety with a 'Safety Always' approach[48](index=48&type=chunk) - Board of Directors oversees workforce strategy, including diversity and inclusion initiatives, with **70% of annual incentive pay** tied to safety, system reliability, and DEI metrics in 2021[54](index=54&type=chunk) - Approximately **44% of employees** were covered by collective bargaining agreements as of Dec. 31, 2021[58](index=58&type=chunk) - Overall employee turnover for 2021 was **12%**, with **31% due to retirements**; **26% of employees** are eligible for retirement within the next 5 years, and **40% within the next 10 years**[59](index=59&type=chunk) Workforce Diversity and Inclusion Metrics (as of Dec. 2021) | Demographic (as of Dec. 2021) | Female | Ethnically Diverse | | :--- | :--- | :--- | | Board of Directors | 23 % | 15 % | | CEO direct reports | 36 % | 18 % | | Management | 22 % | 11 % | | Employees | 24 % | 17 % | | New hires | 39 % | 26 % | | Interns (hired throughout 2021) | 34 % | 27 % | [Utility Subsidiaries](index=13&type=section&id=Utility%20Subsidiaries) Utility Subsidiary Key Metrics | Subsidiary | Electric Customers | Natural Gas Customers | Total Assets | Rate Base (estimated) | ROE | | :--- | :--- | :--- | :--- | :--- | :--- | | NSP-Minnesota | 1.5 million | 0.5 million | $22.8 billion | $13.7 billion | 8.45% | | NSP-Wisconsin | 0.3 million | 0.1 million | $3.1 billion | $2.0 billion | 9.92% | | PSCo | 1.5 million | 1.5 million | $22.0 billion | $14.0 billion | 8.23% | | SPS | 0.4 million | N/A | $9.3 billion | $6.4 billion | 9.22% | [Operations Overview](index=15&type=section&id=Operations%20Overview) [Electric Operations](index=15&type=section&id=Electric%20Operations) Electric Operations Performance Metrics | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Electric sales volume | 115,474 million kWh | N/A | | Electric customers | 3.7 million | N/A | | Electric revenues | $11,205 million | $9,802 million | | kWh sales per retail customer | 23,968 | 23,910 | | Revenue per retail customer | $2,405 | $2,199 | | Total retail revenue per kWh | 10.03 cents | 9.20 cents | - Carbon-free energy as a percentage of total energy for 2021: **50%** (includes wind, nuclear, hydroelectric, biomass, solar)[71](index=71&type=chunk) - Total owned wind capacity: **4,075 MW in 2021** (up from 3,566 MW in 2020)[72](index=72&type=chunk) - Total solar PPA capacity: **2,767 MW in 2021**[76](index=76&type=chunk) - Nuclear capacity: **~1,700 MW** from two plants[80](index=80&type=chunk) - Approved early coal plant retirements: Comanche 1 (**2022**), Sherco 2 (**2023**), Harrington (**2024**, conversion to natural gas), Comanche 2 (**2025**), Craig 1 (**2025**), Sherco 1 (**2026**), Craig 2 (**2028**), A.S. King (**2028**), Sherco 3 (**2030**)[84](index=84&type=chunk) - Proposed coal plant retirements: Pawnee (**2025**, conversion to natural gas), Hayden 2 (**2027**), Hayden 1 (**2028**), Tolk 1 & 2 (**2034**), Comanche 3 (**2034**)[85](index=85&type=chunk) - Natural gas plants capacity: **~7,900 MW** from 22 plants[87](index=87&type=chunk) Electric Fuel Cost and Requirements by Type | Fuel Type | 2021 Cost per MMBtu | 2020 Cost per MMBtu | 2021 % of Fuel Requirements | 2020 % of Fuel Requirements | | :--- | :--- | :--- | :--- | :--- | | Nuclear (NSP System) | $0.77 | $0.80 | 46% | 51% | | Coal (NSP System) | $1.60 | $1.97 | 39% | 31% | | Coal (PSCo) | $1.43 | $1.41 | 62% | 51% | | Coal (SPS) | $2.07 | $2.28 | 66% | 40% | | Natural Gas (NSP System) | $4.98 | $2.67 | 15% | 17% | | Natural Gas (PSCo) | $8.38 | $3.01 | 38% | 49% | | Natural Gas (SPS) | $6.72 | $1.43 | 34% | 60% | [Transmission](index=19&type=section&id=Transmission) - Owns more than **111,000 conductor miles** of transmission lines[93](index=93&type=chunk) - Colorado Pathway project (if approved) will provide over **560 miles of transmission lines** and enable nearly **5,500 MW of new renewables by 2027**[95](index=95&type=chunk) [Distribution](index=19&type=section&id=Distribution) - Owns and operates approximately **210,000 conductor miles** of distribution lines[96](index=96&type=chunk) - Plans to invest approximately **$1.7 billion** in digitizing the distribution grid (new network infrastructure, smart meters, advanced software, equipment sensors, data analytics)[97](index=97&type=chunk) - Spent approximately **$568 million** on these investments to date[97](index=97&type=chunk) [Natural Gas Operations](index=20&type=section&id=Natural%20Gas%20Operations) Natural Gas Operations Performance Metrics | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Natural gas deliveries | 405,895 thousand MMBtu | N/A | | Natural gas customers | 2.1 million | N/A | | Natural gas revenues | $2,132 million | $1,636 million | | MMBtu sales per retail customer | 114 | 118 | | Revenue per retail customer | $917 | $720 | | Residential revenue per MMBtu | $8.61 | $6.64 | | C&I revenue per MMBtu | $7.20 | $5.22 | Natural Gas Average Delivered Cost per MMBtu by Subsidiary | Utility Subsidiary | 2021 Average Delivered Cost per MMBtu | 2020 Average Delivered Cost per MMBtu | | :--- | :--- | :--- | | NSP-Minnesota | $7.48 | $3.32 | | NSP-Wisconsin | $7.11 | $3.08 | | PSCo | $6.06 | $2.52 | [General](index=21&type=section&id=General) - Demand for electric power and natural gas is affected by seasonal weather patterns, leading to fluctuations in operating results[105](index=105&type=chunk) - Subject to competition from industrial and large commercial customers generating their own electricity, and distributed generation (e.g., solar)[106](index=106&type=chunk) - FERC Order No. 1000 established competition for ownership of certain new electric transmission facilities[112](index=112&type=chunk) - FERC Order 2222 requires RTO and ISO markets to allow participation of aggregations of distributed energy resources[113](index=113&type=chunk) [Governmental Regulations](index=23&type=section&id=Governmental%20Regulations) - Facilities are regulated by federal and state agencies with jurisdiction over air emissions, water quality, wastewater discharges, solid and hazardous wastes[116](index=116&type=chunk) - Future environmental regulations may result in substantial costs, but Xcel Energy believes these costs or replacement generation would be recoverable through rates[120](index=120&type=chunk) - SPS will convert the Harrington plant from coal to natural gas by Jan. 1, 2025, to attain Federal Clean Air Act standards for SO2 emissions[122](index=122&type=chunk) - Estimated average annual environmental expense of approximately **$425 million** from 2022–2026[125](index=125&type=chunk) - Capital expenditures for environmental improvements were approximately **$60 million in 2021**, **$30 million in 2020**, and **$30 million in 2019**[127](index=127&type=chunk) [Capital Spending and Financing](index=25&type=section&id=Capital%20Spending%20and%20Financing) [Executive Officers](index=25&type=section&id=Executive%20Officers) Executive Officer Information (as of Feb. 23, 2022) | Name | Age (as of Feb. 23, 2022) | Current and Recent Positions | Time in Position | | :--- | :--- | :--- | :--- | | Robert C. Frenzel | 51 | Chairman, President, Chief Executive Officer and Director, Xcel Energy Inc.; Chief Executive Officer, NSP-Minnesota, NSP-Wisconsin, PSCo, and SPS | December 2021 — Present (Chairman); August 2021 — Present (President, CEO, Director); August 2021 — Present (CEO Subsidiaries) | | Brett C. Carter | 55 | Executive Vice President and Chief Customer and Innovation Officer, Xcel Energy Inc. | May 2018 — Present | | Patricia Correa | 48 | Senior Vice President, Chief Human Resources Officer, Xcel Energy Inc. | February 2022 — Present | | Timothy O'Connor | 62 | Executive Vice President, Chief Operations Officer, Xcel Energy Inc. | August 2021 — Present | | Frank Prager | 59 | Senior Vice President, Strategy, Planning and External Affairs, Xcel Energy Inc. | March 2020 — Present | | Amanda Rome | 41 | Executive Vice President, General Counsel, Xcel Energy Inc. | June 2020 — Present | | Jeffrey S. Savage | 50 | Senior Vice President, Controller, Xcel Energy Inc. | January 2015 — Present | | Brian J. Van Abel | 40 | Executive Vice President, Chief Financial Officer, Xcel Energy Inc. | March 2020 — Present | [Item 1A — Risk Factors](index=27&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) The company faces diverse operational, financial, macroeconomic, public policy, and environmental risks impacting its business [Oversight of Risk and Related Processes](index=27&type=section&id=Oversight%20of%20Risk%20and%20Related%20Processes) - The Board of Directors is responsible for the oversight of material risk and maintaining an effective risk monitoring process[133](index=133&type=chunk) - Management identifies and analyzes risks through formal risk assessment, financial disclosure process, hazard risk procedures, internal audit, and compliance with financial and operational controls[134](index=134&type=chunk) - Risk mitigation includes adherence to the Code of Conduct and compliance policies, operation of formal risk management structures, and overall business management[135](index=135&type=chunk) [Operational Risks](index=27&type=section&id=Operational%20Risks) - Natural gas and electric operations involve inherent hazards and operating risks such as leaks, explosions, outages, property damage, and environmental pollution[141](index=141&type=chunk) - Long-term operational planning is subject to risks from significant changes in the electric utility sector, including increased energy efficiency, wider adoption of distributed generation, and shifts away from fossil fuels, potentially leading to stranded costs[148](index=148&type=chunk) - Highly dependent on suppliers to deliver components; shortages could significantly impact project plans, budgets, and timelines[152](index=152&type=chunk) - Subject to commodity risks and other risks associated with energy markets and production, including fuel cost increases that may not be fully recovered despite existing mechanisms[153](index=153&type=chunk) - Failure to attract and retain a qualified workforce, especially technical employees, could adversely affect the ability to manage and operate the business[161](index=161&type=chunk) - Reliance on third-party contractors introduces risks of poor performance or unavailability, impacting operations and reputation[162](index=162&type=chunk) - NSP-Minnesota's nuclear generation facilities are subject to risks associated with radioactive material, limited insurance, and technological/financial uncertainties related to decommissioning costs[165](index=165&type=chunk) [Financial Risks](index=33&type=section&id=Financial%20Risks) - Profitability depends on the ability of utility subsidiaries to recover costs and earn a return on capital investment through regulated rates, with no assurance of full recovery for all costs[167](index=167&type=chunk) - Reductions in credit ratings could increase financing costs, impact access to capital markets, and trigger collateral requirements in contractual relationships[176](index=176&type=chunk) - Subject to capital market and interest rate risks, which can impact the ability to fund operations, the cost of capital, and the value of assets held in trusts for nuclear decommissioning and employee benefit plans[178](index=178&type=chunk) - Exposed to credit risks from customers' inability to pay bills and counterparties' nonperformance on contractual obligations, potentially leading to bad debt expense and financial losses[180](index=180&type=chunk) - Increasing costs of defined benefit pension and postretirement plans, influenced by actuarial assumptions and funding requirements, may adversely affect results[184](index=184&type=chunk) - Ability to make dividend payments relies on cash from subsidiaries, which is subject to statutory and contractual restrictions, as well as limitations imposed by state utility commissions[186](index=186&type=chunk) [Macroeconomic Risks](index=39&type=section&id=Macroeconomic%20Risks) - Economic conditions, including inflation, monetary fluctuations, and supply chain constraints, can impact sales growth, customers' ability to pay, and the cost of materials for utility infrastructure[192](index=192&type=chunk) - Health epidemics like COVID-19 can cause sales volatility and workforce impacts, though financial impacts have been largely mitigated by regulatory mechanisms[194](index=194&type=chunk) - Operations are vulnerable to war, terrorism, and major catastrophic events (e.g., severe storms, wildfires, widespread pandemics), potentially leading to decreased revenues, increased repair costs, and supply chain disruptions[197](index=197&type=chunk) - Cyber incidents or security breaches could disrupt critical business functions, limit generating/transmitting capabilities, delay projects, and cause data breaches, leading to financial penalties and reputational damage[204](index=204&type=chunk) - Operating results may fluctuate seasonally, with milder winters and cooler summers adversely affecting revenues and income due to reduced demand for heating and cooling[214](index=214&type=chunk) [Public Policy Risks](index=42&type=section&id=Public%20Policy%20Risks) - Subject to legislative and regulatory responses to climate change, which may create financial risk through additional regulations and costly compliance requirements, potentially impacting cost recovery[215](index=215&type=chunk) - Risk of climate change lawsuits, which could require substantial capital expenditures, penalties, or damages, and incur significant defense costs[219](index=219&type=chunk) - Increased risks of regulatory penalties (e.g., up to **$1.3 million per violation per day by FERC**) for non-compliance with statutes, rules, and NERC electric reliability standards[221](index=221&type=chunk) - Public policy advocacy targeting the continued use of natural gas could result in limitations on its use for power generation and heating, potentially leading to stranded costs and impacting service reliability and affordability[225](index=225&type=chunk) [Environmental Risks](index=45&type=section&id=Environmental%20Risks) - Subject to environmental laws and regulations (air emissions, water quality, waste disposal) that may require significant compliance costs, facility modifications, or early retirements, with no assurance of full cost recovery[226](index=226&type=chunk) - Physical and financial risks associated with climate change and extreme weather events (e.g., thunderstorms, floods, tornadoes, wildfires, droughts) could increase service costs, impact sales, and affect access to capital[228](index=228&type=chunk) - Drought or water depletion could adversely impact electricity provision, cause early power plant retirements, and increase energy costs[231](index=231&type=chunk) - Failure to achieve long-term climate change goals could negatively impact reputation and potentially result in financial risk[234](index=234&type=chunk)[236](index=236&type=chunk) [Item 1B — Unresolved Staff Comments](index=45&type=section&id=Item%201B%20%E2%80%94%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report for Xcel Energy Inc [Item 2 — Properties](index=47&type=section&id=Item%202%20%E2%80%94%20Properties) This section details the utility plant property of Xcel Energy's operating companies, largely subject to first mortgage bond indentures - Virtually all of the utility plant property of the operating companies is subject to the lien of their respective first mortgage bond indentures[241](index=241&type=chunk) Owned Generation Facilities by Subsidiary and Fuel Type | Subsidiary | Fuel Type | Installed Capacity (MW) | | :--- | :--- | :--- | | NSP-Minnesota | Coal | 2,390 | | | Nuclear | 1,040 | | | Natural Gas | 1,960 | | | Wood/Refuse | 36 | | | Wind | 2,031 | | NSP-Wisconsin | Wood/Natural Gas | 41 | | | Wood/Refuse | 16 | | | Oil | 122 | | | Natural Gas/Oil | 234 | | | Hydro | 135 | | PSCo | Coal | 1,747 | | | Natural Gas | 2,454 | | | Hydro | 235 | | | Wind | 1,059 | | SPS | Natural Gas | 1,545 | | | Coal | 2,085 | | | Wind | 984 | Electric Transmission and Distribution Conductor Miles (as of Dec. 31, 2021) | Conductor Miles (as of Dec. 31, 2021) | NSP-Minnesota | NSP-Wisconsin | PSCo | SPS | | :--- | :--- | :--- | :--- | :--- | | Total Transmission | 34,155 | 12,409 | 24,116 | 40,754 | | Total Distribution | 81,406 | 27,701 | 78,712 | 22,651 | Natural Gas Mains Mileage (as of Dec. 31, 2021) | Natural Gas Mains (miles, as of Dec. 31, 2021) | NSP-Minnesota | NSP-Wisconsin | PSCo | SPS | WGI | | :--- | :--- | :--- | :--- | :--- | :--- | | Transmission | 85 | 3 | 2,174 | 20 | 11 | | Distribution | 10,741 | 2,526 | 23,243 | — | — | [Item 3 — Legal Proceedings](index=25&type=section&id=Item%203%20%E2%80%94%20Legal%20Proceedings) The company is involved in various litigation, with management deeming ultimate liabilities immaterial to consolidated financials - Xcel Energy is involved in various litigation matters in the ordinary course of business[250](index=250&type=chunk) - Management maintains accruals for losses probable of being incurred and subject to reasonable estimation[252](index=252&type=chunk) - Management does not anticipate that the ultimate liabilities, if any, from current proceedings (not specifically reported) would have a material effect on Xcel Energy's consolidated financial statements[677](index=677&type=chunk) - One remaining active multi-district litigation matter (Arandell Corp.) related to natural gas trading allegations, for which a loss is deemed remote[677](index=677&type=chunk) [Item 4 — Mine Safety Disclosures](index=25&type=section&id=Item%204%20%E2%80%94%20Mine%20Safety%20Disclosures) Xcel Energy Inc. has no mine safety disclosures to report PART II [Item 5 — Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205%20%E2%80%94%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Xcel Energy's common stock (XEL) is listed on Nasdaq, with approximately 49,137 stockholders of record as of Feb 2022 - Xcel Energy Inc.'s common stock (XEL) is listed on the Nasdaq Global Select Market[253](index=253&type=chunk) - The number of common stockholders of record as of Feb. 17, 2022, was approximately **49,137**[258](index=258&type=chunk) - No equity securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 were purchased by or on behalf of Xcel Energy Inc. or any of its affiliated purchasers for the quarter ended Dec. 31, 2021[258](index=258&type=chunk) [Item 6 — [Reserved]](index=26&type=section&id=Item%206%20%E2%80%94%20%5BReserved%5D) This item is reserved and contains no information [Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207%20%E2%80%94%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Xcel Energy's financial performance, condition, cash flows, regulatory impacts, and liquidity [Non-GAAP Financial Measures](index=26&type=section&id=Non-GAAP%20Financial%20Measures) - Xcel Energy's management uses non-GAAP measures (ongoing ROE, ongoing earnings, ongoing diluted EPS) for financial planning, analysis, reporting to the Board of Directors, determining performance-based compensation, and communicating its earnings outlook[260](index=260&type=chunk) - For the years ended Dec. 31, 2021 and 2020, GAAP earnings equaled ongoing earnings, indicating no adjustments were made for certain nonrecurring items[263](index=263&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Diluted EPS by Subsidiary/Segment | Subsidiary/Segment | 2021 Diluted EPS | 2020 Diluted EPS | Change | | :--- | :--- | :--- | :--- | | PSCo | $1.22 | $1.11 | +$0.11 | | NSP-Minnesota | $1.12 | $1.12 | $0.00 | | SPS | $0.59 | $0.56 | +$0.03 | | NSP-Wisconsin | $0.20 | $0.20 | $0.00 | | Earnings from equity method investments — WYCO | $0.05 | $0.05 | $0.00 | | Regulated utility total | $3.18 | $3.04 | +$0.14 | | Xcel Energy Inc. and Other | $(0.22) | $(0.25) | +$0.03 | | **Total Xcel Energy** | **$2.96** | **$2.79** | **+$0.17** | [Statement of Income Analysis](index=27&type=section&id=Statement%20of%20Income%20Analysis) Impact on Diluted EPS from Key Components (2021 vs. 2020) | Component of Change (2021 vs. 2020) | Impact on Diluted EPS | | :--- | :--- | | Higher electric revenues, net of electric fuel and purchased power | $0.26 | | Lower ETR | $0.17 | | Higher natural gas revenues, net of cost of natural gas sold and transported | $0.15 | | Changes in taxes (other than income taxes) | $(0.03) | | Lower AFUDC | $(0.10) | | Higher depreciation and amortization | $(0.24) | | Other (net) | $(0.04) | | **Total Change** | **$0.17** | Return on Equity (ROE) by Entity | ROE | 2021 (GAAP and Ongoing) | 2020 (GAAP and Ongoing) | | :--- | :--- | :--- | | NSP-Minnesota | 8.45 % | 9.20 % | | PSCo | 8.23 | 8.06 | | SPS | 9.22 | 9.54 | | NSP-Wisconsin | 9.92 | 10.52 | | Operating Companies | 8.58 | 8.87 | | Xcel Energy | 10.58 | 10.59 | - Estimated impact of temperature variations on EPS compared with normal weather conditions for 2021 vs. 2020 was a decrease of **$0.033**[274](index=274&type=chunk) - Weather-normalized and leap-year adjusted total retail electric sales growth for Xcel Energy was **1.7% in 2021 vs. 2020**[276](index=276&type=chunk) - Weather-normalized and leap-year adjusted firm natural gas sales growth for Xcel Energy was **0.4% in 2021 vs. 2020**[277](index=277&type=chunk) - Electric margin increased by **$182 million in 2021 vs. 2020**, driven by non-fuel riders and regulatory rate outcomes, partially offset by PTCs flowed back to customers[281](index=281&type=chunk) - Natural gas margin increased by **$104 million in 2021 vs. 2020**, primarily due to regulatory rate outcomes and infrastructure riders[285](index=285&type=chunk) - O&M expenses decreased **$3 million** year-to-date, while depreciation and amortization increased **$173 million** year-to-date[286](index=286&type=chunk) - AFUDC decreased **$58 million** year-to-date due to completion of various wind projects[287](index=287&type=chunk) - Interest charges increased **$2 million** year-to-date, largely due to higher debt levels to fund capital investments, partially offset by lower interest rates[288](index=288&type=chunk) - Income tax benefit increased **$64 million** year-to-date, driven by an increase in wind PTCs[289](index=289&type=chunk)[290](index=290&type=chunk) [Public Utility Regulation](index=28&type=section&id=Public%20Utility%20Regulation) [NSP-Minnesota](index=28&type=section&id=NSP-Minnesota) - Regulatory bodies: MPUC, NDPSC, South Dakota Public Utilities Commission, FERC, MISO[296](index=296&type=chunk) - Recovery mechanisms include CIP Rider, Environmental Improvement Rider, Renewable Development Fund, RES, Renewable Energy Rider, State Energy Policy Rider, TCR, Infrastructure Rider, FCA, Purchased Gas Adjustment, and Sales True-up[298](index=298&type=chunk) - 2022 Minnesota Natural Gas Rate Case: Filed for a **$36 million annual increase (6.6%)**, based on a **10.5% ROE**, **$934 million rate base**, and **52.50% equity ratio**; Interim rates of **$25 million** approved from Jan. 1, 2022[299](index=299&type=chunk) - 2022 Minnesota Electric Rate Case: Filed for a three-year electric rate case with a total request of **$677 million (2022-2024)**, based on a **10.2% ROE**, **52.50% equity ratio**, and **$10.931 billion rate base (2022)**; Interim rates of **$247 million** approved from Jan. 1, 2022[300](index=300&type=chunk) - 2020 North Dakota Electric Rate Case: Settlement approved for a **$7 million base revenue increase**, **9.5% ROE**, and **52.5% equity ratio**, effective Jan. 1, 2021[305](index=305&type=chunk) - Minnesota Resource Plan (approved Feb. 8, 2022): Includes a **10-year extension** for the Monticello nuclear facility, early retirement of A.S. King (**2028**) and Sherco 3 (**2030**), and the need for **2,150 MW of new wind** and **2,500 MW of new solar by 2032**[307](index=307&type=chunk) - FERC NOPR on ROE Incentive Adders: If adopted, NSP-Minnesota would prospectively discontinue charging its current **50 basis point ROE incentive adders**[311](index=311&type=chunk) [NSP-Wisconsin](index=32&type=section&id=NSP-Wisconsin) - Regulatory bodies: PSCW, MPSC, FERC, MISO[323](index=323&type=chunk) - Recovery mechanisms include Annual Fuel Cost Plan, Power Supply Cost Recovery Factors, Wisconsin Energy Efficiency Program, Purchased Gas Adjustment, and Natural Gas Cost Recovery Factor (MI)[324](index=324&type=chunk) - Wisconsin Electric and Natural Gas Settlement (approved Dec. 2021): Approved electric rate increases of **$35 million (4.9%) for 2022** and **$18 million (2.5%) for 2023**, and natural gas rate increases of **$10 million (8.4%) for 2022** and **$3 million (2.3%) for 2023**; ROE set at **9.80% for 2022** and **10.00% for 2023**, with an equity ratio of **52.5%**[325](index=325&type=chunk) - Michigan Electric Rate Case: Reached a settlement in principle for an electric revenue increase of **$1.6 million in 2022**, based on a **9.7% ROE** and an equity ratio of **52.5%**[325](index=325&type=chunk) [PSCo](index=33&type=section&id=PSCo) - Regulatory bodies: CPUC, FERC, SPP Western Energy Imbalance Service Market[331](index=331&type=chunk) - Recovery mechanisms include ECA, Purchased Capacity Cost Adjustment, Steam Cost Adjustment, DSM Cost Adjustment, RES Adjustment, Colorado Energy Plan Adjustment, Wind Cost Adjustment, Transmission Cost Adjustment, Clean Air Clean Jobs Act, FCA, GCA, PSIA, Decoupling, and Transportation Electrification Plan[332](index=332&type=chunk) - Colorado Natural Gas Rate Case (Jan. 2022 filing): Seeking a net increase of **$107 million**, based on a **10.25% ROE**, **55.66% equity ratio**, and a 2022 current test year[333](index=333&type=chunk) - Colorado Electric Rate Request (July 2021 filing, settlement Jan. 2022): A net electric rate increase of **$177 million** was approved, with a **9.3% ROE** and **55.69% equity ratio**[336](index=336&type=chunk) - Pathway Transmission Expansion Settlement: Agreed to a cost estimate of **$1.7 billion** for the project, with recovery through the transmission rider, and conditional CPCN approval for a 345 kV extension project[339](index=339&type=chunk) - Resource Plan Settlement (Nov. 2021): Expected **87% carbon reduction** and an **80% renewable mix by 2030**; Includes early retirement of Hayden units, conversion of Pawnee to natural gas, early retirement of Comanche 3, and significant additions of wind, solar, storage, and flexible generation[340](index=340&type=chunk) - Partial Settlement (Oct. 2021): Allows full recovery of Winter Storm Uri deferred costs (**$263 million electric, $287 million natural gas**) over **24-30 months** with no carrying charges; PSCo will refund **$41 million** for the 2020 electric decoupling pilot and forego recovery of **$14 million** for Comanche Unit 3 replacement power costs[348](index=348&type=chunk) [SPS](index=35&type=section&id=SPS) - Regulatory bodies: PUCT, NMPRC, SPP RTO[357](index=357&type=chunk) - Recovery mechanisms include Distribution Cost Recovery Factor, Energy Efficiency Cost Recovery Factor, Energy Efficiency Rider, Fuel and Purchased Power Cost Adjustment Clause, Power Cost Recovery Factor, Renewable Portfolio Standards, TCR Factor, Fixed Fuel and Purchased Recovery Factor, and Wholesale Fuel and Purchased Energy Cost Adjustment[358](index=358&type=chunk) - 2021 New Mexico Electric Rate Case: A **$62 million rate increase** was approved (Feb. 2022), with a **9.35% ROE** and **54.72% equity ratio**[364](index=364&type=chunk) - 2021 Texas Rate Case: A blackbox settlement for an **$89 million base rate increase** was reached, effective March 15, 2021, with a **9.35% ROE**[367](index=367&type=chunk) - Wind Operating Commitments: Annual generation for Hale and Sagamore wind projects must exceed a net capacity factor of **48%**; the 2021 factor was **48.4%**, resulting in no refund liability[701](index=701&type=chunk) - Contract Termination: Finalized a settlement with LP&L to terminate a **170 MW partial requirements contract** upon LP&L's move to ERCOT (expected 2023), with LP&L paying SPS **$78 million**[702](index=702&type=chunk) [Other Public Utility Matters](index=36&type=section&id=Other%20Public%20Utility%20Matters) - Comanche Unit 3 Outage (Jan. 2022): Expected to last approximately **two months**, with estimated incremental replacement power costs of **~$10 million**; PSCo will not seek recovery of costs above expected[373](index=373&type=chunk) - Marshall Wildfire (Dec. 2021): Cause pending; Xcel Energy operates under a commission-approved wildfire mitigation plan and carries liability insurance[374](index=374&type=chunk) - Winter Storm Uri (Feb. 2021): Incurred approximately **$1 billion** in net natural gas, fuel, and purchased energy costs, largely deferred as regulatory assets[377](index=377&type=chunk) - Regulatory recovery for Winter Storm Uri costs: NSP-Minnesota (recovery of **$179 million** extraordinary costs over **27-63 months**), North Dakota (recovery of **$32 million** over **15 months**), NSP-Wisconsin (recovery of **$45 million** over **9 months**), Michigan (recovery of **$2 million** over **10 months**), PSCo (full recovery of **$263 million electric** and **$287 million natural gas costs** over **24-30 months**), SPS (interim rates to collect up to **$110 million** over **30 months**)[378](index=378&type=chunk)[381](index=381&type=chunk) [Potential Tax Reform](index=37&type=section&id=Potential%20Tax%20Reform) - Potential federal tax law changes, such as the Build Back Better Act, are not expected to have a material impact on Xcel Energy's earnings if enacted[382](index=382&type=chunk) [Critical Accounting Policies and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) [Regulatory Accounting](index=37&type=section&id=Regulatory%20Accounting) - Xcel Energy applies accounting for Regulated Operations, deferring incurred costs as regulatory assets and credits as regulatory liabilities based on the probability of future recovery from or refund to customers[385](index=385&type=chunk) - As of Dec. 31, 2021, Xcel Energy had regulatory assets of **$3.8 billion** and regulatory liabilities of **$5.7 billion**[388](index=388&type=chunk) - The assessment of future recoveries and obligations considers the current regulatory environment, recently issued rate orders, and historical precedents[388](index=388&type=chunk) [Income Tax Accruals](index=39&type=section&id=Income%20Tax%20Accruals) - Income tax accruals involve significant judgment and estimates due to the application of tax statutes and regulations, and outcomes of tax audits and appeals[390](index=390&type=chunk) - Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the future effective tax rate (ETR)[391](index=391&type=chunk) - Valuation allowances are applied to deferred tax assets if it is more likely than not that at least a portion may not be realized[393](index=393&type=chunk) [Employee Benefits](index=39&type=section&id=Employee%20Benefits) - Xcel Energy sponsors noncontributory, defined benefit pension plans and other postretirement benefit plans covering almost all employees and certain retirees[395](index=395&type=chunk) - Key assumptions for 2021 include a **6.49% rate of return on assets** for pension costs and **4.10%** for postretirement health care costs, with discount rates of **3.08%** and **3.09%** respectively[396](index=396&type=chunk) - Pension funding contributions were **$131 million in 2021** and are expected to decline in following years[400](index=400&type=chunk) - Projected pension costs for financial reporting are **$77 million in 2022** and **$60 million in 2023**, primarily due to reductions in loss amortizations[403](index=403&type=chunk)[405](index=405&type=chunk)[406](index=406&type=chunk) [Nuclear Decommissioning](index=40&type=section&id=Nuclear%20Decommissioning) - Xcel Energy recognizes Asset Retirement Obligations (AROs) for the expected cost of retiring tangible long-lived assets, with a significant portion related to nuclear plant decommissioning[413](index=413&type=chunk) - The nuclear decommissioning obligation was **$2.1 billion in 2021** and **$2.0 billion in 2020**, funded by an external decommissioning trust fund[414](index=414&type=chunk) - Estimates are based on periodic independent cost studies, considering retirement dates (Monticello **2030**, PI Unit 1 **2033**, PI Unit 2 **2034**), the DECON method, escalation rates (**3.2%**), and discount rates (ranging from **3% to 7%**)[416](index=416&type=chunk)[418](index=418&type=chunk] - Changes in estimates have minimal impact on results of operations as NSP-Minnesota expects to continue to recover all costs in future rates[420](index=420&type=chunk)[421](index=421&type=chunk) [Derivatives, Risk Management and Market Risk](index=41&type=section&id=Derivatives%2C%20Risk%20Management%20and%20Market%20Risk) - Xcel Energy manages commodity price risk through long- and short-term physical purchase and sales contracts for energy products and fuels, and through financial derivative instruments[427](index=427&type=chunk) - Wholesale and commodity trading activities are conducted within guidelines and limitations approved by the risk management committee[429](index=429&type=chunk) - Fair value of net commodity trading contracts as of Dec. 31, 2021, was **$(98) million for futures/forwards** and **$65 million for options**[429](index=429&type=chunk) - A **10% increase or decrease** in market prices for commodity trading contracts would impact pretax income from continuing operations by approximately **$13 million**[431](index=431&type=chunk) - The Value at Risk (VaR) for commodity trading operations reached a high of **$52 million** on Feb. 17, 2021, due to unprecedented market conditions during Winter Storm Uri[432](index=432&type=chunk) - NSP-Minnesota's nuclear fuel supply from Russia (approximately **30% of average enriched nuclear material requirements through 2030**) could be impacted by sanctions[433](index=433&type=chunk) - Interest rate risk is managed through fixed rate debt, floating rate debt, and interest rate derivatives; a **100 basis point change** in the benchmark rate on variable rate debt would impact pretax interest expense annually by approximately **$11 million in 2021**[436](index=436&type=chunk) - Credit risk from counterparties' nonperformance is managed through credit policies, parental guarantees, and collateral requirements[436](index=436&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) Cash Flow Activities (Millions of Dollars) | Cash Flow Activity | 2021 (Millions of Dollars) | 2020 (Millions of Dollars) | Change (2021 vs 2020) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $2,189 | $2,848 | $(659) | | Net cash used in investing activities | $(4,287) | $(4,740) | +$453 | | Net cash provided by financing activities | $2,135 | $1,773 | +$362 | - Net cash provided by operating activities decreased by **$659 million in 2021** compared to 2020, primarily due to the deferral of net natural gas, fuel, and purchased energy costs related to Winter Storm Uri[444](index=444&type=chunk) - Net cash used in investing activities decreased by **$453 million in 2021** compared to 2020, largely due to decreased capital expenditures from the sale of MEC and completion of various wind projects[445](index=445&type=chunk) - Net cash provided by financing activities increased by **$362 million in 2021** compared to 2020, primarily attributable to higher debt issuances, lower repayments of long-term debt, and incremental financing due to the lag in recovery costs associated with Winter Storm Uri[446](index=446&type=chunk) - Total base capital expenditures forecast for 2022-2026 is **$26 billion**[451](index=451&type=chunk) - Key capital expenditure areas for 2022-2026 include electric distribution (**$7,930 million**), electric transmission (**$7,420 million**), electric generation (**$3,195 million**), natural gas (**$3,340 million**), and renewables (**$1,605 million**)[455](index=455&type=chunk) - Planned financing for 2022-2026 includes **$17,640 million** from cash from operations, **$7,110 million** from new debt, **$450 million** from DRIP and benefit programs, and **$800 million** from other equity[466](index=466&type=chunk) - Planned financing activity for 2022 includes approximately **$600 million** in unsecured bonds for Xcel Energy Inc. and **$1.35 billion** in first mortgage bonds for utility subsidiaries[467](index=467&type=chunk) - As of Dec. 31, 2021, Xcel Energy Inc. issued **5.33 million shares** of common stock with net proceeds of **$347 million** through an At-the-Market (ATM) program[467](index=467&type=chunk) [Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives](index=44&type=section&id=Earnings%20Guidance%20and%20Long-Term%20EPS%20and%20Dividend%20Growth%20Rate%20Objectives) - Xcel Energy's 2022 GAAP and ongoing earnings guidance is a range of **$3.10 to $3.20 per share**[468](index=468&type=chunk) - Key assumptions for 2022 guidance include constructive outcomes in regulatory proceedings, normal weather patterns, **~1% weather-normalized retail electric sales increase**, **0-1% weather-normalized retail firm natural gas sales increase**, **1-2% O&M expense increase**, **$255-265 million depreciation expense increase**, **$55-65 million interest expense increase**, and an ETR of **~(3%) to (5%)**[472](index=472&type=chunk) - Long-term annual EPS growth objective: **5% to 7%** (based off a 2021 base of **$2.96 per share**)[472](index=472&type=chunk) - Long-term annual dividend increase objective: **5% to 7%**[472](index=472&type=chunk) - Target dividend payout ratio: **60% to 70%**[472](index=472&type=chunk) - Objective to maintain senior secured debt credit ratings in the **A range**[472](index=472&type=chunk) [Item 7A — Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%207A%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item refers to the 'Derivatives, Risk Management and Market Risk' section within Item 7 for market risk disclosures [Item 8 — Financial Statements and Supplementary Data](index=45&type=section&id=Item%208%20%E2%80%94%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Xcel Energy's audited consolidated financial statements, including income, cash flows, balance sheets, and notes [Management Report on Internal Control Over Financial Reporting](index=46&type=section&id=Management%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) - Management is responsible for establishing and maintaining adequate internal control over financial reporting[474](index=474&type=chunk) - Xcel Energy Inc.'s internal control over financial reporting was assessed as effective as of Dec. 31, 2021, based on criteria set forth by COSO (2013)[476](index=476&type=chunk) [Report of Independent Registered Public Accounting Firm](index=47&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - Deloitte & Touche LLP issued an unqualified opinion on Xcel Energy Inc.'s consolidated financial statements for the three years ended Dec. 31, 2021[480](index=480&type=chunk) - Deloitte & Touche LLP also issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of Dec. 31, 2021[480](index=480&type=chunk) - The critical audit matter identified was the 'Regulatory Assets and Liabilities - Impact of Rate Regulation on the Financial Statements' due to significant management judgments and high subjectivity in assessing future regulatory orders[489](index=489&type=chunk) [Consolidated Statements of Income](index=49&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income (Millions of Dollars) | Metric (Millions of Dollars) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total operating revenues | $13,431 | $11,526 | $11,529 | | Total operating expenses | $11,228 | $9,410 | $9,425 | | Operating income | $2,203 | $2,116 | $2,104 | | Income before income taxes | $1,527 | $1,467 | $1,500 | | Income tax (benefit) expense | $(70) | $(6) | $128 | | Net income | $1,597 | $1,473 | $1,372 | | Diluted EPS | $2.96 | $2.79 | $2.64 | [Consolidated Statements of Comprehensive Income](index=50&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income (Millions of Dollars) | Metric (Millions of Dollars) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net income | $1,597 | $1,473 | $1,372 | | Other comprehensive income (loss) | $18 | $0 | $(17) | | Total comprehensive income | $1,615 | $1,473 | $1,355 | [Consolidated Statements of Cash Flows](index=51&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Millions of Dollars) | Cash Flow Activity (Millions of Dollars) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $2,189 | $2,848 | $3,263 | | Net cash used in investing activities | $(4,287) | $(4,740) | $(4,343) | | Net cash provided by financing activities | $2,135 | $1,773 | $1,181 | | Net change in cash and cash equivalents | $37 | $(119) | $101 | | Cash, cash equivalents and restricted cash at end of period | $166 | $129 | $248 | [Consolidated Balance Sheets](index=52&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (Millions of Dollars) | Metric (Millions of Dollars) | Dec. 31, 2021 | Dec. 31, 2020 | | :--- | :--- | :--- | | Total current assets | $4,239 | $3,275 | | Property, plant and equipment, net | $45,457 | $42,950 | | Total other assets | $8,155 | $7,732 | | **Total assets** | **$57,851** | **$53,957** | | Total current liabilities | $5,046 | $4,239 | | Total deferred credits and other liabilities | $15,414 | $15,498 | | Long-term debt | $21,779 | $19,645 | | Total common stockholders' equity | $15,612 | $14,575 | | **Total liabilities and equity** | **$57,851** | **$53,957** | [Consolidated Statements of Common Stockholders' Equity](index=53&type=section&id=Consolidated%20Statements%20of%20Common%20Stockholders%27%20Equity) Consolidated Statements of Common Stockholders' Equity (Millions of Dollars) | Metric (Millions of Dollars) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | | :--- | :--- | :--- | :--- | | Total Common Stockholders' Equity | $15,612 | $14,575 | $13,239 | | Common Stock (Par Value) | $1,360 | $1,344 | $1,311 | | Additional Paid In Capital | $7,803 | $7,404 | $6,656 | | Retained Earnings | $6,572 | $5,968 | $5,413 | | Accumulated Other Comprehensive Loss | $(123) | $(141) | $(141) | [Notes to Consolidated Financial Statements](index=54&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies](index=54&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) - Xcel Energy's regulated operations include NSP-Minnesota, NSP-Wisconsin, PSCo, SPS, WGI, and WYCO, while non-regulated subsidiaries include Eloigne, Capital Services, Venture Holdings, and Nicollet Project Holdings[505](index=505&type=chunk) - Applies regulatory accounting, deferring certain costs as regulatory assets and credits as regulatory liabilities based on the expected ability to recover or return amounts in future rates[506](index=506&type=chunk) - Accounts for income taxes using the asset and liability method, recognizing deferred tax assets and liabilities for temporary differences[514](index=514&type=chunk) - Property, plant, and equipment are stated at original cost and depreciated using the straight-line method over commission-approved useful lives[516](index=516&type=chunk) - Recognizes Asset Retirement Obligations (AROs) at fair value, with nuclear decommissioning being a significant component[526](index=526&type=chunk) - Environmental costs are recorded when probable and estimable, and deferred as a regulatory asset if future recovery from customers is probable[530](index=530&type=chunk)[531](index=531&type=chunk) - Revenue from contracts with customers is recognized as energy is delivered, with unbilled revenue estimated at month-end[537](index=537&type=chunk) - Uses derivative instruments (forward contracts, futures, swaps, options) to manage interest rate, utility commodity price, and commodity trading activities[540](index=540&type=chunk)[548](index=548&type=chunk) [2. Accounting Pronouncements](index=57&type=section&id=2.%20Accounting%20Pronouncements) - Xcel Energy implemented ASC Topic 326 (Credit Losses) on Jan. 1, 2020, using a modified-retrospective approach[560](index=560&type=chunk) - The adoption resulted in a cumulative effect charge of **$2 million** (after tax) to retained earnings[561](index=561&type=chunk) - The guidance did not have a significant impact on Xcel Energy's consolidated financial statements, other than the first-time recognition of an allowance for bad debts on accrued unbilled revenues[561](index=561&type=chunk) [3. Property, Plant and Equipment](index=57&type=section&id=3.%20Property%2C%20Plant%20and%20Equipment) Property, Plant and Equipment, Net (Millions of Dollars) | Property, Plant and Equipment (Millions of Dollars) | Dec. 31, 2021 | Dec. 31, 2020 | | :--- | :--- | :--- | | Electric plant | $48,680 | $47,104 | | Natural gas plant | $7,758 | $7,135 | | Common and other property | $2,602 | $2,503 | | Plant to be retired | $1,200 | $677 | | CWIP | $1,969 | $1,877 | | Total property, plant and equipment | $62,209 | $59,296 | | Less accumulated depreciation | $(17,060) | $(16,657) | | Nuclear fuel | $3,081 | $2,970 | | Less accumulated amortization | $(2,773) | $(2,659) | | **Property, plant and equipment, net** | **$45,457** | **$42,950** | Jointly Owned Assets (Millions of Dollars, Dec. 31, 2021) | Jointly Owned Assets (Millions of Dollars, Dec. 31, 2021) | Plant in Service | Accumulated Depreciation | Percent Owned | | :--- | :--- | :--- | :--- | | NSP-Minnesota Total | $1,814 | $694 | Various (50-80%) | | NSP-Wisconsin Total | $346 | $43 | Various (37-80%) | | PSCo Total | $1,626 | $506 | Various (7-82%) | [4. Regulatory Assets and Liabilities](index=58&type=section&id=4.%20Regulatory%20Assets%20and%20Liabilities) Regulatory Assets (Millions of Dollars) | Regulatory Assets (Millions of Dollars) | Dec. 31, 2021 | Dec. 31, 2020 | | :--- | :--- | :--- | | Pension and retiree medical obligations | $1,021 | $1,350 | | Deferred natural gas, electric, steam energy/fuel costs | $1,047 | $32 | | Recoverable deferred taxes on AFUDC | $289 | $283 | | Excess deferred taxes — TCJA | $233 | $245 | | Depreciation differences | $189 | $170 | | Environmental remediation costs | $106 | $129 | | Texas revenue surcharges | $84 | $71 | | Sales true-up and revenue decoupling | $89 | $129 | | Renewable resources and environmental initiatives | $218 | $141 | | Contract valuation adjustments | $56 | $71 | | **Total regulatory assets** | **$3,844** | **$3,377** | Regulatory Liabilities (Millions of Dollars) | Regulatory Liabilities (Millions of Dollars) | Dec. 31, 2021 | Dec. 31, 2020 | | :--- | :--- | :--- | | Deferred income tax adjustments and TCJA refunds | $3,256 | $3,388 | | Plant removal costs | $1,655 | $1,520 | | Effects of regulation on employee benefit costs | $235 | $221 | | Renewable resources and environmental initiatives | $102 | $64 | | ITC deferrals | $53 | $51 | | Revenue decoupling | $50 | $51 | | Contract valuation adjustments | $57 | $19 | | Deferred natural gas, electric, steam energy/fuel costs | $50 | $84 | | Conservation programs | $42 | $49 | | DOE settlement | $28 | $23 | | **Total regulatory liabilities** | **$5,676** | **$5,613** | - Regulatory assets not earning a return primarily included the unfunded portion of pension and retiree medical obligations and net AROs, as well as **$1,718 million in 2021** and **$812 million in 2020** of past expenditures not earning a return[568](index=568&type=chunk) [5. Borrowings and Other Financing Instruments](index=59&type=section&id=5.%20Borrowings%20and%20Other%20Financing%20Instruments) Short-Term Debt (Millions of Dollars) | Short-Term Debt (Millions of Dollars) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Borrowing limit | $3,100 | $3,100 | $3,600 | | Amount outstanding at period end | $1,005 | $584 | $595 | | Average amount outstanding | $1,399 | $1,126 | $1,115 | | Maximum amount outstanding | $2,054 | $2,080 | $1,780 | | Weighted average interest rate (daily basis) | 0.57 % | 1.45 % | 2.72 % | - The total borrowing limit under the amended credit agreements is **$3.1 billion**, maturing in June 2024[573](index=573&type=chunk) - As of Dec. 31, 2021, Xcel Energy Inc. and its utility subsidiaries had **$2,076 million** in available capacity under committed credit facilities[575](index=575&type=chunk) - Long-term debt obligations for Xcel Energy Inc. and its utility subsidiaries totaled **$21,779 million in 2021**, up from **$19,645 million in 2020**[580](index=580&type=chunk) - Maturities of long-term debt include **$601 million in 2022**, **$1,150 million in 2023**, **$552 million in 2024**, **$1,102 million in 2025**, and **$501 million in 2026**[582](index=582&type=chunk) - Through its ATM Equity Offering, Xcel Energy Inc. issued **5.33 million shares** of common stock with net proceeds of **$347 million** as of Dec. 31, 2021[583](index=583&type=chunk) - Utility subsidiaries' dividends are subject to FERC jurisdiction, prohibiting payments from capital accounts, and state regulatory commissions impose more restrictive dividend limitations[584](index=584&type=chunk) [6. Revenues](index=62&type=section&id=6.%20Revenues) Operating Revenues by Type (Millions of Dollars) | Revenue Type (Millions of Dollars) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Total operating revenues** | **$13,431** | **$11,526** | **$11,529** | | Revenue from contracts with customers: | | | | | Residential | $4,461 | $4,083 | $4,045 | | C&I | $5,720 | $5,085 | $5,440 | | Wholesale | $1,540 | $759 | $737 | | Transmission | $604 | $579 | $507 | | Other (contracts) | $209 | $210 | $169 | | Alternative revenue and other | $763 | $679 | $497 | [7. Income Taxes](index=62&type=section&id=7.%20Income%20Taxes) - Federal income tax returns for 2014-2016 and 2018 are open for audit, and state audits are in progress for Colorado (2014), Minnesota (2015), Texas (2016), and Wisconsin (2016)[591](index=591&type=chunk) - The total unrecognized tax benefit was **$58 million in 2021**, up from **$52 million in 2020**[592](index=592&type=chunk) - Federal NOL carryforward was **$765 million in 2021**, and federal tax credit carryforwards were **$1,172 million in 2021**[595](index=595&type=chunk) - State NOL carryforwards were **$1,648 million in 2021**[595](index=595&type=chunk) Effective Income Tax Rate Reconciliation | Effective Income Tax Rate | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Federal statutory rate | 21.0 % | 21.0 % | 21.0 % | | State income tax on pretax income, net of federal tax effect | 5.0 | 4.9 | 4.9 | | (Decreases) increases in tax from: | | | | | Wind PTCs | (23.4) | (15.7) | (9.4) | | Plant regulatory differences | (6.2) | (7.6) | (5.8) | | Other tax credits, net NOL & tax credit allowances | (1.1) | (1.2) | (1.7) | | NOL Carryback | — | (0.9) | — | | Change in unrecognized tax benefits | 0.4 | 0.5 | 0.5 | | Other, net | (0.3) | (1.4) | (1.0) | | **Effective income tax rate** | **(4.6)%** | **(0.4)%** | **8.5 %** | [8. Share-Based Compensation](index=64&type=section&id=8.%20Share-Based%20Compensation) - Xcel Energy's incentive plan includes restricted stock, other equity awards (time-based and performance-based), and stock equivalent units for non-employee directors[600](index=600&type=chunk) - Performance conditions for a portion of equity awards are based on relative Total Shareholder Return (TSR) and environmental goals[604](index=604&type=chunk) - TSR liability awards are accounted for as liabilities, with their fair value remeasured each period[607](index=607&type=chunk) - Compensation cost for share-based awards was **$31 million in 2021**, down from **$73 million in 2020**[609](index=609&type=chunk) - Total unrecognized compensation cost related to nonvested share-based compensation awards was approximately **$28 million in 2021**, expected to be recognized over a weighted average period of **1.6 years**[612](index=612&type=chunk) [9. Earnings Per Share](index=65&type=section&id=9.%20Earnings%20Per%20Share) Shares Outstanding for EPS Calculation (Millions) | Shares (Millions) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Basic | 539 | 527 | 519 | | Diluted | 540 | 528 | 520 | - Diluted common shares outstanding included common stock equivalents of **0.3 million**, **1.1 million**, and **1.3 million shares** for 2021, 2020, and 2019, respectively[616](index=616&type=chunk) [10. Fair Value of Financial Assets and Liabilities](index=66&type=section&id=10.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) - Xcel Energy uses a three-level hierarchical framework for fair value measurements, with Level 1 for quoted prices in active markets, Level 2 for observable inputs other than quoted prices, and Level 3 for significant unobservable inputs[621](index=621&type=chunk) - The nuclear decommissioning fund assets were **$3.256 billion** as of Dec. 31, 2021, up from **$2.777 billion in 2020**[629](index=629&type=chunk) - Assets held in rabbi trusts were **$109 million** as of Dec. 31, 2021, up from **$102 million in 2020**[635](index=635&type=chunk) - Fair value of net commodity trading contracts as of Dec. 31, 2021, was **$(98) million for futures/forwards** and **$65 million for options**[429](index=429&type=chunk) - As of Dec. 31, 2021, six of Xcel Energy's **10 most significant counterparties** for commodity activities (**38% of credit exposure**) had investment grade credit ratings, and three (**20% of credit exposure**) were unrated but internally consistent with investment grade[644](index=644&type=chunk) - Accumulated other comprehensive loss related to settled interest rate derivatives included **$5 million of net losses** expected to be reclassified into earnings during the next 12 months[638](index=638&type=chunk) [11. Benefit Plans and Other Postretirement Benefits](index=70&type=section&id=11.%20Benefit%20Plans%20and%20Other%20Postretirement%20Benefits) Pension and Postretirement Benefit Funded Status (Millions of Dollars) | Metric (Millions of Dollars) | Pension Benefits (Dec. 31, 2021) | Postretirement Benefits (Dec. 31, 2021) | | :--- | :--- | :--- | | Fair value of plan assets | $3,670 | $442 | | Obligation at Dec. 31 | $3,718 | $511 | | Funded status of plans at Dec. 31 | $(48) | $(69) | - Pension plan assets were **$3,670 million in 2021**, up from **$3,599 million in 2020**[663](index=663&type=chunk) - Postretirement benefit plan assets were **$442 million in 2021**, down from **$452 million in 2020**[664](index=664&type=chunk) - Benefit obligations for both pension and postretirement plans decreased from Dec. 31, 2020, to Dec. 31, 2021, primarily due to benefit payments and increases in discount rates[665](index=665&type=chunk) - Significant assumptions for 2021 include a pension discount rate of **3.08%**, a postretirement discount rate of **3.09%**, an expected return on pension assets of **6.49%**, and an expected return on postretirement assets of **4.10%**[670](index=670&type=chunk) - Net periodic pension cost was **$121 million in 2021**, up from **$117 million in 2020**[671](index=671&type=chunk) - Projected pension benefit payments are **$323 million in 2022** and **$257 million in 2023**[671](index=671&type=chunk) - Projected net postretirement health care benefit payments are **$40 million in 2022** and **$39 million in 2023**[671](index=671&type=chunk) - Total expense for defined contribution plans was approximately **$43 million in 2021**[671](index=671&type=chunk) [12. Commitments and Contingencies](index=72&type=section&id=12.%20Commitments%20and%20Contingencies) - Legal proceedings include one active multi-district litigation matter (Arandell Corp.) related to natural gas trading, for which a loss is deemed remote[677](index=677&type=chunk) - NSP-Minnesota is participating in a contested case regarding the prudency of incremental natural gas costs incurred during Winter Storm Uri, with potential disallowances up to **$179 million** recommended by the OAG[680](index=680&type=chunk) - Xcel Energy is investigating, remediating, or performing post-closure actions at **16 historical MGP, landfill, or other disposal sites**[709](index=709&type=chunk) - PSCo is evaluating options for corrective action at two coal ash locations, with total potential costs up to **$35 million**[712](index=712&type=chunk) - NSP-Minnesota's public liability for claims from any nuclear incident is limited to **$13.5 billion** under the Price-Anderson Act, with **$450 million** covered by insurance[732](index=732&type=chunk) - NSP-Minnesota owns temporary on-site storage facilities for spent nuclear fuel and is seeking a Certificate of Need (CON) for additional storage at the Monticello site[736](index=736&type=chunk) - The discounted nuclear decommissioning cost obligation on a regulatory basis was **$6,554 million in 2021**, with **$3,256 million** of assets held in the external decommissioning trust[743](index=743&type=chunk) - Operating lease Right-of-Use (ROU) assets were **$1,291 million in 2021**, primarily related to Power Purchase Agreements (PPAs)[750](index=750&type=chunk) - Finance lease ROU assets were **$125 million in 2021**, primarily related to gas storage and pipeline facilities[755](index=755&type=chunk) - Total operating lease expense was **$287 million in 2021**, and total finance lease expense was **$24 million in 2021**[451](index=451&type=chunk) - Unconditional purchase obligations, including fuel and non-lease PPAs, totaled **$4,837 million** as of Dec. 31, 2021, with **$1,718 million** due in less than one year[762](index=762&type=chunk) - Certain IPPs under PPAs and TUCO Inc. (coal supplier) are Variable Interest Entities (VIEs) for which Xcel Energy is not the primary beneficiary; however, low-income housing limited partnerships are consolidated[766](index=766&type=chunk) - Guarantees and bond indemnities issued and outstanding for Xcel Energy totaled **$60 million** as of Dec. 31, 2021[774](index=774&type=chunk) [13. Other Comprehensive Income](index=79&type=section&id=13.%20Other%20Comprehensive%20Income) Accumulated Other Comprehensive Loss (Millions of Dollars) | Component (Millions of Dollars) | 2021 | 2020 | | :--- | :--- | :--- | | Accumulated other comprehensive loss at Jan. 1 | $(141) | $(141) | | Net current period other comprehensive income (loss) | $18 | $0 | | **Accumulated other comprehensive loss at Dec. 31** | **$(123)** | **$(141)** | [14. Segment Information](index=80&type=section&id=14.%20Segment%20Information) - Xcel Energy has two reportable segments: Regulated Electric (generates, transmits, and distributes electricity in eight states, including wholesale operations) and Regulated Natural Gas (transports, stores, and distributes natural gas in five states)[780](index=780&type=chunk) - The 'All Other' category includes operating segments with revenues below quantitative thresholds, such as steam revenue, appliance repair services, non-utility real estate, refuse-derived fuel processing, low-

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $2.96 for 2021, an increase from $2.79 in 2020, marking the 17th consecutive year of meeting or exceeding earnings guidance [14][27] - The annual dividend was raised for the 18th straight year, increasing by $0.11 per share [14] - Weather-adjusted electric sales increased by 1.7% in 2021, with an anticipated growth of approximately 1% in 2022 [29] Business Line Data and Key Metrics Changes - The nuclear fleet achieved a capacity factor of over 92% in 2021, maintaining its status as the top-performing fleet in the country [16] - The company completed four wind farms with a total capacity of 800 megawatts, contributing to significant environmental benefits and cost savings for customers [17] - The company installed over 300,000 smart meters as part of its advanced grid program, with plans to install more than 1 million in 2022 [16] Market Data and Key Metrics Changes - The company reached constructive rate case settlements in multiple states, including Colorado, Texas, New Mexico, Wisconsin, North Dakota, and Michigan [14][38] - In Colorado, a net rate increase of $177 million was approved based on a return on equity (ROE) of 9.3% [31] - In Minnesota, interim rates of $247 million for electric customers and $25 million for natural gas customers were approved [33] Company Strategy and Development Direction - The company aims for an 80% carbon reduction by 2030 and plans to be coal-free by the end of 2034 [17][37] - A $1.7 billion pathway transmission project in Colorado is expected to enable 5,500 megawatts of new renewables, with additional investments planned for further network upgrades [22][52] - The company is focused on expanding its electric vehicle programs and anticipates increased adoption across its service areas [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable organic growth over the next decade, driven by affordable renewable additions and necessary transmission infrastructure [20] - The company remains optimistic about the potential for clean energy legislation, which could provide substantial customer benefits [23][75] - Management noted that while the energy provisions in the Build Back Better legislation have stalled, there is potential for a more modest version to move forward [24][75] Other Important Information - The company has committed to reducing greenhouse gas emissions from its natural gas business by 25% by 2030 and aims for net-zero emissions by 2050 [17] - The company has been recognized for its ESG leadership, including being named among the world's most ethical companies [18] Q&A Session Summary Question: O&M growth forecast changes - Management clarified that the O&M growth forecast was updated to reflect actuals from 2021, with a guidance of 1% to 2% for 2022 due to lower benefits costs and effective management of weather impacts [42][43] Question: Equity issuance and five-year plan - Management explained that the recent equity issuance aligns with their five-year capital plan, providing flexibility for future investments, especially if clean energy legislation passes [44][48] Question: Pathway project and potential upside - Management discussed the strategic importance of the pathway project for achieving carbon reduction goals and indicated that additional capital may be needed for interconnections and upgrades [51][53] Question: MISO MTEP process timeline - Management provided insights on the MISO transmission expansion opportunities and expected timelines for project announcements [63][66] Question: Wildfire risk and mitigation plans - Management acknowledged the need to reassess wildfire mitigation strategies in light of recent catastrophic fires and committed to participating in ongoing discussions with regulators [81][82] Question: Sales growth outlook - Management expressed confidence in the overall sales growth outlook for 2022, anticipating stronger C&I sales to offset residential declines [85][86]

2021 YEAR END EARNINGS REPORT PRESENTATION JANUARY 27, 2022 Safe Harbor Emily Ahachich Director, Investor Relations 612-330-6054 emily.a.ahachich@xcelenergy.com Except for the historical statements contained in this presentation, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2022 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended Sept. 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-3034 Xcel Energy Inc. (Exact name of registrant as specified in its charter) Minnesota 41-0448030 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-3034 Xcel Energy Inc. (Exact name of registrant as specified in its charter) Minnesota 41-0448030 (State or other jurisdiction o ...

[Report Preamble](index=1&type=section&id=Report%20Preamble) This section details SEC filing information, the report's structure, key definitions, and forward-looking statement risks [SEC Filing Information](index=1&type=section&id=SEC%20Filing%20Information) This document is Xcel Energy Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2021. The company is a large accelerated filer and has filed all required reports - Xcel Energy Inc. is filing its Quarterly Report on Form 10-Q for the period ended March 31, 2021[2](index=2&type=chunk) - The registrant is a **large accelerated filer** and has filed all required reports during the preceding 12 months[3](index=3&type=chunk)[4](index=4&type=chunk) - As of April 22, 2021, there were **538,206,800 shares of Common Stock**, $2.50 par value, outstanding[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The table of contents outlines the structure of the 10-Q report, dividing it into Part I (Financial Information) and Part II (Other Information), detailing specific items and their corresponding page numbers within the report's internal numbering system - The report is structured into **Part I: Financial Information** and **Part II: Other Information**[7](index=7&type=chunk) - Part I includes Financial Statements, Management's Discussion and Analysis, Market Risk Disclosures, and Controls and Procedures[7](index=7&type=chunk) - Part II covers Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities, and Exhibits[7](index=7&type=chunk) [Definitions and Forward-Looking Statements](index=4&type=section&id=Definitions%20and%20Forward-Looking%20Statements) This section provides definitions of abbreviations used throughout the report, including company subsidiaries, regulatory agencies, and financial terms. It also includes a cautionary statement regarding forward-looking statements, highlighting various risks and uncertainties that could cause actual results to differ materially from projections - The report defines abbreviations for Xcel Energy Inc.'s subsidiaries (e.g., NSP Minnesota, PSCo, SPS), federal and state regulatory agencies (e.g., FERC, MPUC, CPUC), and financial/operational terms (e.g., AFUDC, EPS, GAAP)[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Forward-looking statements are subject to **risks, uncertainties, and assumptions**, and actual results may vary materially[12](index=12&type=chunk) - Key risk factors include the impacts of the **COVID-19 pandemic**, operational safety, commodity risks, regulatory changes, economic conditions, and climate change[12](index=12&type=chunk)[13](index=13&type=chunk) [PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents unaudited financial statements, management's discussion, market risk, and controls [Item 1 — Financial Statements (unaudited)](index=6&type=section&id=Item%201%20%E2%80%94%20Financial%20Statements%20(unaudited)) This section presents Xcel Energy Inc.'s unaudited consolidated financial statements for the three months ended March 31, 2021 and 2020, including statements of income, comprehensive income, cash flows, balance sheets, and common stockholders' equity, along with detailed notes explaining significant accounting policies, financial instruments, and commitments [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Xcel Energy Inc. reported a significant increase in net income and diluted EPS for Q1 2021 compared to Q1 2020, driven by higher operating revenues, particularly in electric and natural gas segments, despite increased operating expenses | Metric | Three Months Ended March 31, 2021 (Millions) | Three Months Ended March 31, 2020 (Millions) | | :----- | :------------------------------------------- | :------------------------------------------- | | Electric Operating Revenues | $2,870 | $2,203 | | Natural Gas Operating Revenues | $647 | $583 | | Total Operating Revenues | $3,541 | $2,811 | | Electric Fuel and Purchased Power | $1,386 | $797 | | Total Operating Expenses | $3,034 | $2,356 | | Operating Income | $507 | $455 | | Net Income | $362 | $295 | | Diluted EPS | $0.67 | $0.56 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income increased in Q1 2021, primarily due to higher net income and a positive shift in other comprehensive income, moving from a loss in the prior year to a gain, mainly influenced by derivative instruments | Metric | Three Months Ended March 31, 2021 (Millions) | Three Months Ended March 31, 2020 (Millions) | | :----- | :------------------------------------------- | :------------------------------------------- | | Net Income | $362 | $295 | | Total Other Comprehensive Income (Loss) | $3 | $(7) | | Total Comprehensive Income | $365 | $288 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased in Q1 2021, primarily due to the deferral of Winter Storm Uri costs. Investing cash flow saw a reduction in cash used, while financing cash flow substantially increased due to higher debt issuances | Metric | Three Months Ended March 31, 2021 (Millions) | Three Months Ended March 31, 2020 (Millions) | | :----- | :------------------------------------------- | :------------------------------------------- | | Net Cash (Used in) Provided by Operating Activities | $(136) | $669 | | Net Cash Used in Investing Activities | $(1,035) | $(1,606) | | Net Cash Provided by Financing Activities | $2,081 | $933 | | Net Change in Cash, Cash Equivalents and Restricted Cash | $910 | $(4) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $1,039 | $244 | - The decrease in operating cash flow was primarily due to the **deferral of net natural gas, fuel, and purchased energy costs related to Winter Storm Uri**[265](index=265&type=chunk) - The increase in financing cash flow was primarily attributable to **proceeds from issuances of short-term and long-term debt**, partially offset by higher repayments of long-term debt[267](index=267&type=chunk) [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased at March 31, 2021, driven by higher cash, property, plant and equipment, and regulatory assets. Total liabilities also rose, with notable increases in short-term and long-term debt | Metric | March 31, 2021 (Millions) | Dec. 31, 2020 (Millions) | | :----- | :------------------------ | :----------------------- | | Total Current Assets | $4,315 | $3,275 | | Property, Plant and Equipment, Net | $43,582 | $42,950 | | Total Other Assets | $8,614 | $7,732 | | Total Assets | $56,511 | $53,957 | | Total Current Liabilities | $4,877 | $4,239 | | Total Deferred Credits and Other Liabilities | $15,464 | $15,498 | | Long-Term Debt | $21,470 | $19,645 | | Total Common Stockholders' Equity | $14,700 | $14,575 | | Total Liabilities and Equity | $56,511 | $53,957 | [Consolidated Statements of Common Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Common%20Stockholders'%20Equity) Total common stockholders' equity increased in Q1 2021, primarily due to net income and other comprehensive income, partially offset by dividends declared | Metric | March 31, 2021 (Millions) | Dec. 31, 2020 (Millions) | | :----- | :------------------------ | :----------------------- | | Balance at Period End | $14,700 | $14,575 | | Net Income | $362 | $295 (from Dec 31, 2019 to Mar 31, 2020) | | Other Comprehensive Income (Loss) | $3 | $(7) (from Dec 31, 2019 to Mar 31, 2020) | | Dividends Declared on Common Stock | $(246) | $(227) (from Dec 31, 2019 to Mar 31, 2020) | | Shares Outstanding at Period End | 538,076,662 | 537,438,394 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on Xcel Energy's accounting policies, recent pronouncements, balance sheet data, borrowings, revenues, income taxes, EPS, fair value measurements, benefit plans, commitments, and segment information, offering crucial context to the unaudited financial statements [1. Summary of Significant Accounting Policies](index=11&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This section states that significant accounting policies are consistent with those in the 2020 Annual Report on Form 10-K - Significant accounting policies are consistent with those outlined in the Xcel Energy Inc. Annual Report on Form 10-K for the year ended Dec. 31, 2020, and are incorporated by reference[29](index=29&type=chunk) [2. Accounting Pronouncements](index=11&type=section&id=2.%20Accounting%20Pronouncements) Xcel Energy adopted ASC Topic 326 on January 1, 2020, with a minor impact on financial statements - Xcel Energy adopted **ASC Topic 326** (Financial Instruments - Credit Losses) on January 1, 2020, recognizing a cumulative effect charge of **$2 million** (after tax) to retained earnings[30](index=30&type=chunk)[31](index=31&type=chunk) - The adoption did not have a significant impact on Xcel Energy's consolidated financial statements, other than the first-time recognition of an allowance for bad debts on accrued unbilled revenues[31](index=31&type=chunk)[35](index=35&type=chunk) [3. Selected Balance Sheet Data](index=11&type=section&id=3.%20Selected%20Balance%20Sheet%20Data) This section provides detailed breakdowns of inventories, property, plant and equipment, and accounts receivable | Metric | March 31, 2021 (Millions) | Dec. 31, 2020 (Millions) | | :----- | :------------------------ | :----------------------- | | Total Inventories | $469 | $535 | | Electric Plant | $48,008 | $47,104 | | Natural Gas Plant | $7,218 | $7,135 | | Total Property, Plant and Equipment, Net | $43,582 | $42,950 | | Metric | March 31, 2021 (Millions) | Dec. 31, 2020 (Millions) | | :----- | :------------------------ | :----------------------- | | Accounts Receivable, Net | $959 | $916 | | Less Allowance for Bad Debts | $(86) | $(79) | [4. Borrowings and Other Financing Instruments](index=11&type=section&id=4.%20Borrowings%20and%20Other%20Financing%20Instruments) This section details Xcel Energy's borrowing limits, outstanding amounts, credit facilities, and debt issuances | Metric | Three Months Ended March 31, 2021 (Millions) | Year Ended Dec. 31, 2020 (Millions) | | :----- | :------------------------------------------- | :---------------------------------- | | Borrowing limit | $4,300 | $3,100 | | Amount outstanding at period end | $1,477 | $584 | | Weighted average interest rate at period end | 0.73% | 0.23% | | Credit Facility (Millions) | Credit Facility | Drawn | Available | | :------------------------- | :-------------- | :---- | :-------- | | Xcel Energy Inc. | $1,250 | $277 | $973 | | PSCo | $700 | $8 | $692 | | NSP-Minnesota | $500 | $10 | $490 | | SPS | $500 | $2 | $498 | | NSP-Wisconsin | $150 | $0 | $150 | | Total | $3,100 | $297 | $2,803 | - In February 2021, Xcel Energy Inc. entered into a **$1.2 billion 364-Day Term Loan Agreement** maturing Feb. 17, 2022[39](index=39&type=chunk) - During Q1 2021, PSCo, SPS, and NSP-Minnesota issued a total of **$1,821 million in first mortgage bonds**[43](index=43&type=chunk) - Xcel Energy Inc. issued **$13 million of equity** through its Dividend Reinvestment and Stock Purchase Program (DRIP) during Q1 2021[41](index=41&type=chunk) [5. Revenues](index=13&type=section&id=5.%20Revenues) This section provides a breakdown of Xcel Energy's electric and natural gas revenues by customer type | Revenue Type (Millions) | Q1 2021 | Q1 2020 | | :---------------------- | :------ | :------ | | Electric Residential | $733 | $676 | | Electric C&I | $1,033 | $1,066 | | Electric Wholesale | $743 | $166 | | Natural Gas Residential | $384 | $355 | | Natural Gas C&I | $187 | $180 | | Total Revenues | $3,541 | $2,811 | [6. Income Taxes](index=15&type=section&id=6.%20Income%20Taxes) This section details Xcel Energy's effective income tax rates and potential changes in unrecognized tax benefits | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :----- | :-------------------------------- | :-------------------------------- | | Federal Statutory Rate | 21.0% | 21.0% | | State Tax (net of federal tax effect) | 4.9% | 4.9% | | Wind PTCs | (24.6)% | (17.2)% | | Effective Income Tax Rate | (6.5)% | (2.1)% | - It is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately **$27 million** in the next 12 months[48](index=48&type=chunk) [7. Earnings Per Share](index=15&type=section&id=7.%20Earnings%20Per%20Share) This section presents basic and diluted common shares outstanding and their impact on earnings per share | Metric (Shares in Millions) | 2021 | 2020 | | :-------------------------- | :--- | :--- | | Basic Common Shares Outstanding | 538 | 526 | | Diluted Common Shares Outstanding | 539 | 527 | - Diluted common shares outstanding included common stock equivalents of **0.2 million** and **0.8 million** for the three months ended March 31, 2021 and 2020, respectively[55](index=55&type=chunk) [8. Fair Value of Financial Assets and Liabilities](index=17&type=section&id=8.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This section outlines the fair value hierarchy for financial instruments, including nuclear decommissioning funds and long-term debt - Fair value measurements are categorized into a hierarchical framework: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than quoted prices), and **Level 3** (significant unobservable inputs)[66](index=66&type=chunk) | Nuclear Decommissioning Fund (Millions) | March 31, 2021 Fair Value | Dec. 31, 2020 Fair Value | | :-------------------------------------- | :------------------------ | :----------------------- | | Cash equivalents | $32 | $40 | | Commingled funds (NAV) | $1,052 | $1,041 | | Debt securities | $586 | $585 | | Equity securities | $1,155 | $1,111 | | Total | $2,825 | $2,777 | | Long-Term Debt (Millions) | March 31, 2021 Carrying Amount | March 31, 2021 Fair Value | Dec. 31, 2020 Carrying Amount | Dec. 31, 2020 Fair Value | | :------------------------ | :----------------------------- | :------------------------ | :---------------------------- | :----------------------- | | Long-term debt, including current portion | $21,491 | $23,654 | $20,066 | $24,412 | - As of March 31, 2021, accumulated other comprehensive loss related to settled interest rate derivatives included **$6 million of net losses** expected to be reclassified into earnings during the next 12 months[75](index=75&type=chunk) - Derivative liabilities with credit-related contingent features totaled **$4 million** at March 31, 2021, and those with cross default provisions were approximately **$59 million**[87](index=87&type=chunk) [9. Benefit Plans and Other Postretirement Benefits](index=25&type=section&id=9.%20Benefit%20Plans%20and%20Other%20Postretirement%20Benefits) This section details Xcel Energy's net periodic benefit costs for pension and postretirement health care plans | Metric (Millions) | Q1 2021 Pension Benefits | Q1 2020 Pension Benefits | Q1 2021 Postretirement Health Care Benefits | Q1 2020 Postretirement Health Care Benefits | | :---------------- | :----------------------- | :----------------------- | :---------------------------------------- | :---------------------------------------- | | Service cost | $26 | $24 | $0 | $0 | | Interest cost | $26 | $31 | $4 | $5 | | Expected return on plan assets | $(52) | $(52) | $(4) | $(5) | | Net periodic benefit cost (credit) | $27 | $27 | $(1) | $(1) | | Net benefit cost recognized for financial reporting | $26 | $29 | $0 | $0 | - In January 2021, **$125 million in contributions** were made across four of Xcel Energy's pension plans, with no additional pension contributions expected during 2021[93](index=93&type=chunk) [10. Commitments and Contingencies](index=25&type=section&id=10.%20Commitments%20and%20Contingencies) This section covers legal settlements, regulatory rulings on ROE, environmental compliance, lease obligations, and guarantees - A settlement of approximately **$3 million** was reached in February 2021 for the Breckenridge/Colorado gas trading litigation, awaiting court approval[98](index=98&type=chunk) - The FERC issued Opinion No. 569-B, setting the MISO base ROE at **10.02%** effective Sept. 28, 2016, and denying refunds for the second complaint period; each **10 basis point ROE reduction** would reduce net income by **$1-2 million**[109](index=109&type=chunk)[110](index=110&type=chunk) - The EPA's final rule requires Xcel Energy to expedite closure plans for two CCR impoundments, with NSP-Minnesota initiating closure activities for an existing ash pond at an estimated cost of **$4 million**[123](index=123&type=chunk)[124](index=124&type=chunk) | Lease Type (Millions) | Total Minimum Obligation | Interest Component of Obligation | Present Value of Minimum Obligation | Noncurrent Liabilities | | :-------------------- | :----------------------- | :------------------------------- | :---------------------------------- | :--------------------- | | PPA Operating Leases | $1,592 | $(248) | $1,344 | N/A | | Other Operating Leases | $201 | $(37) | $164 | N/A | | Total Operating Leases | $1,793 | $(285) | $1,508 | $1,287 | | Finance Leases | $253 | $(178) | $75 | $71 | - Xcel Energy's utility subsidiaries had approximately **4,062 MW of capacity** under long-term PPAs with Variable Interest Entities (VIEs) at March 31, 2021[128](index=128&type=chunk) - Guarantees and bond indemnities issued and outstanding for Xcel Energy were approximately **$60 million** at March 31, 2021[132](index=132&type=chunk) [11. Other Comprehensive Income (Loss)](index=31&type=section&id=11.%20Other%20Comprehensive%20Income%20(Loss)) This section presents the accumulated other comprehensive loss and net current period other comprehensive income | Metric (Millions) | March 31, 2021 | Jan. 1, 2021 | | :---------------- | :------------- | :----------- | | Accumulated Other Comprehensive Loss | $(138) | $(141) | | Net Current Period Other Comprehensive Income (Loss) | $3 | N/A | [12. Segment Information](index=31&type=section&id=12.%20Segment%20Information) This section provides a breakdown of total revenues and net income (loss) by regulated electric, natural gas, and other segments | Segment (Millions) | Q1 2021 Total Revenues | Q1 2021 Net Income (Loss) | Q1 2020 Total Revenues | Q1 2020 Net Income (Loss) | | :----------------- | :--------------------- | :------------------------ | :--------------------- | :------------------------ | | Regulated Electric | $2,870 | $269 | $2,203 | $227 | | Regulated Natural Gas | $647 | $118 | $583 | $91 | | All Other | $24 | $(25) | $25 | $(23) | | Consolidated Total | $3,541 | $362 | $2,811 | $295 | [Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202%20%E2%80%94%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Xcel Energy's financial performance, condition, and cash flows for Q1 2021. It details the impact of weather, sales trends, changes in electric and natural gas margins, operating expenses, and the effects of significant events like Winter Storm Uri and the COVID-19 pandemic. It also covers regulatory updates, risk management strategies, liquidity, capital resources, and future earnings guidance [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Xcel Energy utilizes non-GAAP financial measures such as electric margin, natural gas margin, ongoing earnings, and ongoing diluted EPS to supplement GAAP results, providing a clearer view of core performance for internal analysis and investor communication. For Q1 2021 and 2020, GAAP earnings were equivalent to ongoing earnings - Electric margin is defined as electric revenues less electric fuel and purchased power expenses, while natural gas margin is natural gas revenues less the cost of natural gas sold and transported[146](index=146&type=chunk) - Ongoing earnings and ongoing diluted EPS adjust GAAP earnings for certain non-recurring or infrequent items to evaluate core performance[147](index=147&type=chunk)[148](index=148&type=chunk) - For the three months ended March 31, 2021 and 2020, **GAAP earnings equaled ongoing earnings**, as no adjustments were made[149](index=149&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Xcel Energy's diluted EPS increased by $0.11 in Q1 2021, primarily driven by higher electric and natural gas margins, which offset increased depreciation, interest charges, and lower AFUDC. PSCo, NSP-Minnesota, and SPS all contributed positively to this earnings growth | Subsidiary | Q1 2021 Diluted EPS | Q1 2020 Diluted EPS | | :--------- | :------------------ | :------------------ | | PSCo | $0.31 | $0.24 | | NSP-Minnesota | $0.24 | $0.20 | | SPS | $0.11 | $0.08 | | NSP-Wisconsin | $0.06 | $0.06 | | Equity earnings of unconsolidated subsidiaries | $0.01 | $0.01 | | Regulated utility | $0.73 | $0.60 | | Xcel Energy Inc. and Other | $(0.06) | $(0.04) | | Total | $0.67 | $0.56 | | Components of Change - 2021 vs. 2020 | Diluted EPS Impact | | :----------------------------------- | :----------------- | | Higher electric margin | $0.11 | | Higher natural gas margins | $0.07 | | Lower ETR | $0.06 | | Higher other income (expense), net | $0.02 | | Higher depreciation and amortization | $(0.08) | | Lower AFUDC | $(0.02) | | Higher interest charges | $(0.01) | | Higher O&M | $(0.01) | | Other, net | $(0.03) | | GAAP and ongoing diluted EPS - 2021 | $0.67 | [Statement of Income Analysis](index=35&type=section&id=Statement%20of%20Income%20Analysis) Q1 2021 saw a positive EPS impact from weather due to higher Heating Degree Days. While overall retail electric sales declined, residential sales increased, and natural gas sales grew. Electric and natural gas margins both improved, driven by regulatory outcomes and non-fuel riders. Operating expenses increased, particularly depreciation and amortization due to new assets and rate changes | Metric | 2021 vs. Normal | 2020 vs. Normal | 2021 vs. 2020 | | :----- | :-------------- | :-------------- | :------------ | | HDD | 1.3% | (5.5)% | 6.5% | | Weather Impact on EPS (Millions) | 2021 vs. Normal | 2020 vs. Normal | 2021 vs. 2020 | | :------------------------------- | :-------------- | :-------------- | :------------ | | Retail electric | $0.00 | $(0.011) | $0.011 | | Decoupling and sales true-up | $0.002 | $0.006 | $(0.004) | | Electric total | $0.002 | $(0.005) | $0.007 | | Firm natural gas | $0.003 | $(0.007) | $0.010 | | Total | $0.005 | $(0.012) | $0.017 | | Sales Growth (Decline) - Q1 2021 vs. Q1 2020 | PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | | :------------------------------------------- | :--- | :------------ | :-- | :------------ | :---------- | | Actual Electric Residential | 6.3% | 5.1% | 8.8% | 4.7% | 6.0% | | Actual Electric C&I | (4.8)% | (6.6)% | (7.1)% | (1.8)% | (5.8)% | | Total Retail Electric Sales | (1.0)% | (2.9)% | (4.3)% | 0.2% | (2.4)% | | Firm Natural Gas Sales | 4.7% | 0.5% | N/A | 0.8% | 3.1% | | Electric Margin (Millions) | Q1 2021 | Q1 2020 | Change | | :------------------------- | :------ | :------ | :----- | | Electric revenues | $2,870 | $2,203 | $667 | | Electric fuel and purchased power | $(1,386) | $(797) | $(589) | | Electric margin | $1,484 | $1,406 | $78 | | Natural Gas Margin (Millions) | Q1 2021 | Q1 2020 | Change | | :---------------------------- | :------ | :------ | :----- | | Natural gas revenues | $647 | $583 | $64 | | Cost of natural gas sold and transported | $(299) | $(285) | $(14) | | Natural gas margin | $348 | $298 | $50 | - O&M expenses increased by **$5 million (0.9%)** due to new wind farms, software/infrastructure costs, compensation, and storm-related expenses[167](index=167&type=chunk) - Depreciation and amortization increased by **$58 million (12.5%)** due to new wind farms going into service and new depreciation rates in Colorado, New Mexico, and Texas[168](index=168&type=chunk) - AFUDC decreased by **$14 million** due to various wind projects being placed into service[169](index=169&type=chunk) - Interest charges increased by **$6 million (3.0%)** due to higher debt levels, partially offset by lower interest rates[170](index=170&type=chunk) - Income tax benefit increased by **$16 million**, primarily driven by an increase in wind Production Tax Credits (PTCs) due to additional wind facilities going into service[171](index=171&type=chunk) [Other](index=39&type=section&id=Other) Winter Storm Uri in February 2021 led to approximately $965 million in net natural gas, fuel, and purchased energy costs, largely deferred as regulatory assets, with Xcel Energy mitigating customer impact by $190 million. The COVID-19 pandemic continues to affect sales patterns and bad debt, with regulatory deferrals approved for incremental costs in several jurisdictions - Winter Storm Uri resulted in approximately **$965 million** in net natural gas, fuel, and purchased energy costs, largely deferred as regulatory assets[175](index=175&type=chunk) - Xcel Energy mitigated customer impact by approximately **$190 million**, primarily through sales of excess generation[175](index=175&type=chunk) - Higher market prices during Winter Storm Uri resulted in **$27 million of net gains** (after customer sharing) related to proprietary commodity trading[175](index=175&type=chunk) - Utility subsidiaries are proposing to recover Winter Storm Uri cost increases over a period of up to two years with no associated financing costs to mitigate customer bill impacts[177](index=177&type=chunk) - COVID-19 has led to higher residential sales and lower C&I sales, with decoupling and sales true-up mechanisms in Minnesota and Colorado mitigating some impacts[180](index=180&type=chunk) - Several commissions have approved the deferral of incremental COVID-19 related costs, including bad debt expense, as regulatory assets[182](index=182&type=chunk)[183](index=183&type=chunk) [Public Utility Regulation](index=41&type=section&id=Public%20Utility%20Regulation) Xcel Energy's utility subsidiaries are subject to extensive rate regulation, with ongoing rate cases and rider filings across various states. Key regulatory developments include NSP-Minnesota's resource plan for carbon reduction, PSCo's wildfire protection and electric resource plans, and SPS's pending electric rate cases in New Mexico and Texas, all aiming to recover investments and manage costs through approved rates - NSP-Minnesota's 2020 Minnesota Electric Rate Case was withdrawn in favor of a stay-out alternative, which includes extending true-up mechanisms, delaying nuclear decommissioning accrual, not seeking COVID-19 cost recovery, and an earnings test[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) - NSP-Minnesota is requesting a **$19 million annual retail electric revenue increase** in North Dakota, with interim rates of **$13 million** implemented[195](index=195&type=chunk) - NSP-Minnesota's Minnesota resource plan aims for an **80% carbon reduction by 2030** and **100% carbon-free by 2050**, including early retirement of coal plants, extending nuclear plant life, and adding **3,500 MW of solar** and **2,250 MW of wind**[199](index=199&type=chunk)[210](index=210&type=chunk) - PSCo's Wildfire Protection Rider was approved for the mitigation program, but the rider request was denied in favor of deferred accounting with future rate case recovery[207](index=207&type=chunk) - PSCo's 2021 Electric Resource Plan proposes early retirement of Comanche Unit 3 (2040), Hayden Units 1 & 2 (2028, 2027), conversion of Pawnee to natural gas (2028), and adding **2,300 MW wind**, **1,600 MW large-scale solar**, **400 MW energy storage**, and **1,300 MW flexible dispatchable resources**[219](index=219&type=chunk)[226](index=226&type=chunk) - SPS filed for an **$88 million electric rate increase** in New Mexico and a **$143 million increase** in Texas, both with offsetting fuel cost reductions and PTCs from the Sagamore wind project[225](index=225&type=chunk)[232](index=232&type=chunk) - The D.C. Circuit vacated and remanded the EPA's Affordable Clean Energy rule, potentially allowing alternate regulation of coal-fired power plants, with expected cost recovery through rates for any new investments[237](index=237&type=chunk) [Environmental](index=48&type=section&id=Environmental) This section discusses the regulatory landscape for environmental matters, specifically the vacating and remanding of the EPA's Affordable Clean Energy rule. Xcel Energy anticipates that any new rules requiring additional investment for greenhouse gas reductions from coal-fired power plants would be recoverable through rates - The U.S. Court of Appeals for the D.C. Circuit vacated and remanded the EPA's Affordable Clean Energy rule, which required states to develop plans for greenhouse gas reductions from coal-fired power plants[237](index=237&type=chunk) - If new rules require additional investment, Xcel Energy believes the cost of these initiatives or replacement generation would be recoverable through rates[237](index=237&type=chunk) [Derivatives, Risk Management and Market Risk](index=48&type=section&id=Derivatives,%20Risk%20Management%20and%20Market%20Risk) Xcel Energy manages commodity price and interest rate risks through physical contracts and financial derivatives. The company's Value at Risk (VaR) for commodity trading spiked to $52 million during Winter Storm Uri. Nuclear fuel supply from Russia is a monitored risk, and credit risk is managed through counterparty reviews and credit enhancements - Xcel Energy manages commodity price risk through physical purchase/sales contracts and financial derivative instruments, adhering to commission-approved hedge plans[241](index=241&type=chunk) - The Value at Risk (VaR) for commodity trading operations reached a high of **$52 million** on Feb 17, 2021, during Winter Storm Uri, compared to **$1 million** before and after the event[249](index=249&type=chunk)[250](index=250&type=chunk) - A **10% increase** in market prices for commodity trading contracts would increase pre-tax income by approximately **$14 million**, while a **10% decrease** would decrease it by **$13 million**[247](index=247&type=chunk) - A **100-basis-point change** in the benchmark rate on Xcel Energy's variable rate debt would impact pre-tax interest expense annually by approximately **$15 million**[252](index=252&type=chunk) - NSP-Minnesota has contracted for approximately **11% of its 2021** and **28% of its long-term (through 2030) enriched nuclear material requirements** from sources potentially impacted by sanctions against entities doing business with Iran[251](index=251&type=chunk) - Fluctuations in equity prices or interest rates affecting the nuclear decommissioning fund do not have a direct impact on earnings due to regulatory accounting[255](index=255&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased significantly in Q1 2021 due to Winter Storm Uri cost deferrals, while financing cash flow increased substantially from higher debt issuances. Xcel Energy maintains strong liquidity, with $3,590 million available as of April 26, 2021, and plans to meet future capital needs through a mix of debt and equity issuances | Cash Flow Activity (Millions) | Q1 2021 | Q1 2020 | Change (2021 vs 2020) | | :---------------------------- | :------ | :------ | :-------------------- | | Operating Activities | $(136) | $669 | $(805) | | Investing Activities | $(1,035) | $(1,606) | $571 | | Financing Activities | $2,081 | $933 | $1,148 | - The decrease in operating cash flow was primarily due to the **deferral of net natural gas, fuel, and purchased energy costs related to Winter Storm Uri**[265](index=265&type=chunk) - The increase in financing cash flow was primarily attributable to **proceeds from issuances of short-term and long-term debt**, partially offset by higher repayments of long-term debt[267](index=267&type=chunk) - Xcel Energy plans to issue approximately **$75 to $80 million of equity** through the DRIP and benefit programs in 2021[276](index=276&type=chunk) | Available Liquidity (Millions) as of April 26, 2021 | Credit Facility | Drawn | Available | Cash | Total Liquidity | | :------------------------------------------------ | :-------------- | :---- | :-------- | :--- | :-------------- | | Xcel Energy Inc. | $1,250 | $200 | $1,050 | $3 | $1,053 | | PSCo | $700 | $8 | $692 | $144 | $836 | | NSP-Minnesota | $500 | $10 | $490 | $518 | $1,008 | | SPS | $500 | $2 | $498 | $43 | $541 | | NSP-Wisconsin | $150 | $0 | $150 | $2 | $152 | | Total | $3,100 | $220 | $2,880 | $710 | $3,590 | - Xcel Energy does not have any material off-balance-sheet arrangements other than those currently disclosed[277](index=277&type=chunk) [Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives](index=56&type=section&id=Earnings%20Guidance%20and%20Long-Term%20EPS%20and%20Dividend%20Growth%20Rate%20Objectives) Xcel Energy's 2021 earnings guidance is set at $2.90 to $3.00 per share. The company aims for long-term annual EPS growth of 5% to 7% and similar dividend increases, targeting a dividend payout ratio of 60% to 70% while maintaining strong credit ratings - Xcel Energy's 2021 GAAP and ongoing earnings guidance is a range of **$2.90 to $3.00 per share**[279](index=279&type=chunk) - Long-term objectives include annual EPS growth of **5% to 7%** (based off a 2020 base of $2.78 per share) and annual dividend increases of **5% to 7%**[288](index=288&type=chunk) - The company targets a dividend payout ratio of **60% to 70%** and aims to maintain senior secured debt credit ratings in the **A range**[288](index=288&type=chunk) [Item 3 — Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the market risk disclosures previously provided in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - There have been **no material changes** to the market risk disclosure included in the Annual Report on Form 10-K for the year ended Dec. 31, 2020[280](index=280&type=chunk) [Item 4 — Controls and Procedures](index=56&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) As of March 31, 2021, Xcel Energy's disclosure controls and procedures were deemed effective, and no material changes occurred in internal control over financial reporting during the most recent fiscal quarter - As of March 31, 2021, Xcel Energy's disclosure controls and procedures were **effective**[282](index=282&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, Xcel Energy's internal control over financial reporting[283](index=283&type=chunk) [PART II — OTHER INFORMATION](index=56&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and exhibits [Item 1 — Legal Proceedings](index=56&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) Xcel Energy is involved in various ordinary course legal proceedings. While management accrues for probable and estimable losses, the timing and ultimate resolution of certain matters, especially those in early stages or involving novel legal theories, remain uncertain. No current proceedings are anticipated to have a material effect on the consolidated financial statements beyond what is already reported - Management maintains accruals for losses probable of being incurred and subject to reasonable estimation in various litigation matters[284](index=284&type=chunk) - For current proceedings not specifically reported, management does not anticipate that the ultimate liabilities, if any, would have a material effect on Xcel Energy's consolidated financial statements[285](index=285&type=chunk) [Item 1A — Risk Factors](index=56&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) This section confirms that there have been no material changes to the risk factors previously disclosed in Xcel Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 - There have been **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended Dec. 31, 2020[287](index=287&type=chunk) [Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During March 2021, Xcel Energy Inc. purchased 4,399 common shares at an average price of $58.59 per share to fulfill obligations under its Stock Equivalent Plan for Non-Employee Directors | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----- | :------------------------------- | :--------------------------- | | March 1, 2021 - March 31, 2021 | 4,399 | $58.59 | - The purchases were made to satisfy obligations under the Stock Equivalent Plan for Non-Employee Directors[289](index=289&type=chunk) [Item 6 — Exhibits](index=58&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, supplemental indentures for debt issuances, a term loan agreement, and Sarbanes-Oxley Act certifications - Exhibits include amended articles of incorporation, bylaws, supplemental trust indentures for bond issuances, a term loan agreement, and certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[290](index=290&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) The report is officially signed on behalf of Xcel Energy Inc. by its Senior Vice President, Controller (Principal Accounting Officer) and Executive Vice President, Chief Financial Officer (Principal Financial Officer) on April 29, 2021 - The report was signed by Jeffrey S. Savage, Senior Vice President, Controller (Principal Accounting Officer), and Brian J. Van Abel, Executive Vice President, Chief Financial Officer (Principal Financial Officer), on April 29, 2021[293](index=293&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Commission File Number) Xcel Energy Inc. (Mark One) (Exact name of registrant as specified in its charter) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Minnesota 41-0448030 For the fiscal year ended December 31, 2020 or (State or Other Jurisdiction of Incorporation or Organization) (IRS Employer Identification No.) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Xcel Energy, Inc. (NASDAQ:XEL) Q4 2020 Results Conference Call January 28, 2021 10:00 AM ET Company Participants Paul Johnson - Vice President of Investor Relations Benjamin Fowke - Chairman and Chief Executive Officer Brian Van Abel - Executive Vice President and Chief Financial Officer Robert Frenzel - President and Chief Operating Officer Amanda Rome - Executive Vice President and General Counsel Conference Call Participants Jeremy Tonet - JPMorgan Chase & Co Julien Dumoulin-Smith - BofA Merrill Lynch In ...