Contribution to Economic Development
We are connected to the communities we serve through active and ongoing investment in their infrastructures and through our supply chain spending practices. We contributed more than $1.8 million directly to chambers of commerce and economic development organizations in communities across our service territory in 2011.
Learn more about our support of economic development in the communities we serve.
Supply Chain Spending
Suppliers play an important role in our ability to grow and operate effectively, and the money we spend through our supply chain adds to the overall prosperity of our communities and beyond. In 2011, we spent nearly $3 billion with suppliers. Of that amount, 56 percent was spent with locally based suppliers.
We do not set specific targets for local spending; however, much of our spending occurs naturally on the local level as we build relationships within our communities. In many circumstances, necessary materials and services cannot be obtained locally or it is not feasible to do so given our primary considerations of cost, quality, fairness, risk level, time constraints and legal/regulatory requirements.
|Out of Territory||$1,328,838,624|
Supplier Diversity Program
Our corporate policies underscore our commitment to supplier diversity by recognizing that it is in our best interest to encourage a broad base of supplier relationships. Using diverse suppliers contributes to the economic growth and expansion of the communities we serve. Our policy is to offer these businesses the opportunity to compete in our procurement for products and services. We develop and strengthen business relationships with diverse suppliers by:
- Conducting outreach efforts to seek, identify and encourage supplier diversity in our procurement processes
- Facilitating alliances and partnering
- Educating businesses about our procurement and business processes
- Identifying and encouraging subcontracting (tier two) opportunities with major suppliers when direct participation is not possible
In 2011, we spent $248 million with diverse suppliers, directly and indirectly.
|Dollars spent||% of total purchases|
Learn more about our supplier diversity program.
In 2011, we received the following awards for our supplier diversity program:
- Minnesota Metropolitan Economic Development Association “Corporation of the Year”
- Minnesota Black Chamber of Commerce “Corporate Advocate of the Year”
- Colorado Women's Chamber of Commerce “Sustainable Corporation of the Year”
- Colorado Women's Chamber of Commerce “Sponsor of the Year”
- Colorado Black Chamber of Commerce “Presidential Corporation of the Year”
- Colorado Asian Chamber of Commerce “Corporation of the Year”
In 2011, we distributed nearly $160 million in franchise fees to the communities where we operate. Xcel Energy collects franchise fees through customers and distributes them to cities as part of the franchise agreements that we negotiate for the right to place energy facilities in the public right of way.
- Upper Midwest
- Texas/New Mexico