Position on Climate Policy

At Xcel Energy, we believe climate policy should be designed to maximize environmental benefit and minimize consumer costs. We favor a federal policy as a more effective way to achieve large-scale greenhouse gas reductions, rather than individual state or regional policies. And a flexible, well-designed federal policy is the best option to reduce emissions, manage costs and achieve technological transformation. We believe to significantly reduce greenhouse gas emissions, we need to develop advanced, clean-energy technologies. Although other policy designs may be effective, Congress is focused on creating a national cap and trade program for greenhouse gases. A properly designed cap-and-trade program should provide for the kind of flexibility and innovation that encourages technological development.

Xcel Energy Climate Policy Principles Climate policy should: Minimize customer costs and maximize environmental benefits; Recognize and reward utilities for early reduction efforts; Encourage the development and deployment of clean-energy technologies; Provide flexibility and reasonable cost-containment mechanisms; and Avoid becoming the equivalent of an additional tax on energy production and consumption.

We have engaged with policymakers, energy providers, the environmental community and others to discuss our climate policy principles. Mandatory climate policy could transform our business, but this technology transformation will not be free. We anticipate rising costs as we continue to provide reliable service while steadily reducing CO2 emissions.

Xcel Energy is a member of the Edison Electric Institute (EEI), an association of U.S. shareholder-owned electric companies. EEI and its members have been working for more than two years to ensure climate change legislation protects electricity consumers.

Learn more about Smart Climate Policy from EEI