Company Strategy

The way we produce, distribute and use energy has changed over time. And it will continue to change. Over the next five to 10 years, it is possible that there will be more change in the utility industry than we have experienced in the last half century. We believe this requires a new approach to our operations and how we address the challenges facing our industry.

We launched the Strategic Call to Action to prepare our workforce for increased competition within our markets and to help grow our business. Through this effort, we are raising awareness among employees for the changes underway and reinforcing our commitment to customers, communities and the many stakeholders we serve. Employees play an important role in our success by looking for opportunities to streamline their work and by making smart investments — in both assets and customer services — that support the company’s business objectives and help to lower costs. We continue to promote operational excellence, specifically seeking opportunities to use technology that improves our processes and workforce productivity.

To support execution of the call to action, Xcel Energy is implementing a strategic plan with four main objectives, presented within the company as “the four pillars.” Focusing on these four objectives over the next several years will prepare Xcel Energy for competition and ensure the company is positioned for success in the changing utility landscape.

Objective Impacts, Challenges, Opportunities and Stakeholder Interests
Improve the performance of our utility companies
  • Strong financial performance improves our ability to attract investors and favorable financing for major capital projects needed to provide customers with safe, reliable and clean energy service at an affordable price.
  • Our goal is to earn the authorized return that each public utilities commission has provided us.
  • To accomplish this, we will pursue new longer-term, multi-year regulatory compacts in our jurisdictions, and we will implement stringent cost control measures.
Manage the workforce transition
  • Developing the next generation workforce is critical to our continued success, especially since nearly half of our current workforce will be eligible to retire over the next 10 years.
  • Managing this transition challenges us to attract, train and retain the most skilled and highest performing employees.
  • As we assimilate new employees into our workforce, we will cultivate a culture that is forward thinking, team oriented and ready for competition.
  • We also must leverage our skilled workforce to be more efficient and productive, relying on advanced technology to perform their jobs more effectively.
Give customers more options and solutions
  • Customers and communities depend on Xcel Energy to continue providing reliable, affordable energy—it is a critical service.
  • There also is growing customer interest in new and expanded energy solutions that can save money, reduce environmental impact and put more control in the hands of customers and communities.
  • Xcel Energy is well positioned to provide energy solutions that compete on cost and quality with third-party offerings but we must have a regulatory framework in place that enables this.
Grow the business
  • The energy grid and its reliability are a competitive advantage that cannot be matched cost effectively with alternative technology.
  • Xcel Energy must maintain the highest service quality while making smart investments in our infrastructure, processes and workforce.
  • Our infrastructure investments should align with the value that customers place on our products and services.
  • Through natural gas and transmission investments, we can build on our strengths to create growth that improves customer energy service with minimal impact to rates.
  • We are the energy experts and can demonstrate our knowledge and ability in delivering major projects on time and within budget, as well as in implementing advanced energy technologies.

A full description of our risk oversight and management processes is available in our 2014 10-K, along with a description of the risks associated with Xcel Energy’s business.

Our Company