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A Message from the CEO

To Our Stakeholders:

Powering the lives of our customers and communities is at the core of what we do every day. As our corporate tagline acknowledges, we are indeed “Responsible by Nature” in all aspects of our business. At Xcel Energy, we understand the tremendous responsibility we have to ensure public safety, drive economic growth in the communities we serve, protect the environment and provide safe, clean reliable energy at a competitive price. That responsibility is deeply ingrained in our DNA.

We are constantly striving for The Right Mix. Whether blending renewables and traditional fuel sources within our energy portfolio, managing customer costs while ensuring quality service, advocating for regulatory frameworks to better meet customer and community needs or attracting the best talent to help move our enterprise forward, creating The Right Mix is paramount in our decision making.

Reliability and operational excellence

Our fundamental purpose is to deliver the energy customers need to power their lives, and we do so safely and reliably. When storms or other unforeseen circumstances cause service disruptions, our dedicated teams are some of the very best in the business – consistently delivering when our customers need us the most. Behind the scenes, we have invested substantially in the energy grid and other critical infrastructure and information systems to protect them from physical and cyber attacks. We focus on operational excellence to keep costs as low as possible for our customers while ensuring safety and reliability.

Economic development

We also recognize that we will only be as successful as the communities we serve. Xcel Energy drives prosperity into our communities through job creation, tax base and economic development. In 2015, we invested $3.5 billion through a variety of projects to strengthen our infrastructure and improve our operations. Whenever possible, we hire local contractors and suppliers and last year, more than 60 percent of our spending—approximately $2.4 billion—went to local businesses.

A clean energy leader

Protecting the environment is one of our core values, and we live that value by executing a clean energy strategy that includes retiring aging coal-fueled plants and replacing them with cleaner natural gas units, encouraging energy efficiency and expanding renewable energy sources—all to reduce carbon and other emissions without losing sight of affordability for our customers.

We are creating a more sustainable energy future in several ways:

Our clean energy strategy positions us favorably to meet any future emission requirements from the EPA or other regulatory organizations. We are most proud of our ability to simultaneously protect the environment and invest in the future at a reasonable price.

Serving our communities

An Xcel Energy hallmark is giving back to the communities we serve. Being Responsible by Nature is reflected in numerous ways we work together to positively impact as many lives as possible:

Delivering value

As a publicly traded energy company, we also recognize our responsibility to deliver a return worthy of the trust our investors place in us. 2015 was the 11th consecutive year we met or exceeded our earnings guidance, and we increased our dividend for the 12th consecutive year. Forbes magazine named Xcel Energy to its list of the 100 Most Trustworthy Companies in America for our consistent demonstration of transparent accounting practices and solid corporate governance—a hallmark of our responsible business practices.

The Right Mix

Providing reliable, affordable energy. Protecting the environment. Caring for our communities. Delivering value to our customers and investors. It’s all part of The Right Mix we use to make wise, responsible investments to power our collective future. As you read our Corporate Responsibility Report, you will learn more about our community impact and how we are working hard to create a more sustainable energy future for all of us. We’re glad that you have joined us for this exciting journey.

Sincerely,

Ben Fowke

Ben Fowke signature

Chairman, President & CEO

Corporate Responsibility Report 2015

Energy Saving Tip

Rather than crank up your heat in the winter, keep your thermostat at a moderate level and bundle up. (Who doesn't love fuzzy slippers?)

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