Xcel Energy Powering Communities, Economies as Energy Landscape Evolves

Key Terms

electrification technical

Electrification is the process of replacing systems that run on fuel or other energy sources with electric-powered ones, such as switching from gasoline engines to electric motors. It matters to investors because it often signals a shift toward cleaner, more sustainable energy use, potentially transforming industries and creating new opportunities for growth and innovation.

carbon emissions medical

Carbon emissions are greenhouse gases, mainly carbon dioxide, that are released into the atmosphere when fossil fuels are burned or through industrial processes; think of them as the company equivalent of smoke from a chimney or the CO2 you exhale. Investors care because those emissions can lead to higher operating costs, fines, new rules, or damaged reputation, all of which can lower a company’s future profits and value.

gigawatt-hours technical

Gigawatt-hours (GWh) measure a large amount of energy — one gigawatt-hour equals one billion watt-hours, which is the amount of power used continuously for one hour at a rate of one gigawatt. For investors, GWh shows the scale of electricity generation, storage or consumption for projects and companies, much like the number of gallons tells you the size of a fuel tank; it helps compare project capacity, potential revenue and the ability to meet demand.

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Sustainability Report highlights stronger reliability, lower emissions and water use

MINNEAPOLIS--(BUSINESS WIRE)-- Xcel Energy (NASDAQ: XEL) is strengthening its energy grid with new electric generation and infrastructure to adapt to a rapidly evolving energy landscape, the company announced today in its 21^st annual Sustainability Report.

Xcel Energy’s investments in a diverse and increasingly carbon-free energy portfolio aim to deliver reliable, low-cost energy service for all of its customers during a time of significant growth in demand from data centers, vehicle charging, electrified home heating, natural gas development and other areas of the economy that spur growth. As it grows the capacity and resilience of the grid, the company has reduced carbon emissions from the electricity it provides to customers 58% from 2005 levels.

“For more than 150 years, Xcel Energy has energized communities and built brighter futures,” said Bob Frenzel, chairman, president and chief executive officer of Xcel Energy. “Today, the increasing trend toward electrification is reshaping how we live, work and power our world. We are meeting this moment through advanced technology, disciplined investment and a steadfast commitment to reliability, affordability and sustainability.”

Xcel Energy’s carbon reduction progress comes as it navigates higher resource costs, supply chain constraints and a dynamic public policy environment, while keeping affordability for customers at the forefront. Since 2007, it has retired or converted 27 coal units without layoffs — and, consistent with state‑approved plans, is working to retire or convert its remaining units by the end of 2030. Electrification of a portion of the company’s fleet vehicles has prevented 700 metric tons of carbon emissions.

In addition, the company has reduced its water use related to the electricity it provides by 35% since 2005. Meanwhile, Xcel Energy outperforms the industry reliability standard, restoring 89% of affected customers’ power within 24 hours during active storm days, and has an overall electric service reliability of 99.98%.

“At Xcel Energy, sustainability is a long-term commitment reflected in how we operate — balancing reliability and affordability while supporting safety, economic vitality and environmental stewardship,” said Jeff Lyng, vice president of external affairs and policy and chief sustainability officer. “As expectations of the energy system grow and the way customers use it changes, so does our responsibility to lead with transparency and purpose. This report shows how we are delivering on our commitments, adapting as the energy system evolves and demonstrating progress at scale.”

Electric bills for Xcel Energy customers over the past five years were 29% below the national average and gas bills were 11% below the national average. The company has lowered customers’ bills through cost-effective wind and solar projects, saving customers approximately $6 billion through avoided fuel costs and earned tax credits from wind projects alone between 2017 and 2025.

In 2025, Xcel Energy provided $175 million in customer rebates and incentives through programs that enable customers to embrace energy-efficient lighting, appliances and more. Residential and commercial customers participated in saving 1,100 gigawatt-hours of electricity, enough to power 140,000 homes. The company also connected more than 200,000 households in need to more than $181 million in energy assistance programs offered by the company and by public sources.

Bringing jobs and investment to communities

Xcel Energy engages with community members, businesses, organizations and civic and political groups across the 1,600 cities and counties it serves to better meet residents’ energy needs, connect customers to programs that save money and energy, foster economic growth and build the future workforce.

The company helps the communities it serves prosper, working with landowners, developers, municipalities and economic development organizations to ease the path to locating or expanding businesses. Xcel Energy provides jobs for 11,500 people in the communities it serves. It spent $5.8 billion with small or local businesses in 2025, helped create 1,400 new jobs and spurred $7 billion in additional capital investment. The company’s economic development team closed on 15 projects across the eight states it serves, which will help grow industries such as data centers, aerospace and manufacturing. As one example, Xcel Energy announced it will power a new Google data center in Pine Island, Minnesota, that will contribute significantly to the state and regional economies, with a large buildout of new clean energy projects included in the agreement to bring Minnesota closer to its clean energy goals while ensuring existing energy customers benefit.

Together with the Xcel Energy Foundation, employees and retirees, the company gave back to its communities, donating $13.5 million. Its employees contributed $3.3 million in economic impact through volunteering for nonprofit and community improvement projects.

Read the full Sustainability Report.

About Xcel Energy

Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy.

We are committed to leading the clean energy transition, meeting our customers’ need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives.

Headquartered in Minneapolis, we work every day to generate and distribute electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico and Texas. For more information, visit xcelenergy.com or follow us on X and Facebook.

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Xcel Energy Media Relations
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Source: Xcel Energy