Xcel Energy Surpasses 50% Carbon-Free Electricity Generation Companywide

Rhea-AI Summary

Xcel Energy announces that more than half of the power it generates now comes from carbon-free sources, and it has reduced carbon emissions by 53% from 2005 levels. The company plans to exit from coal by the end of 2030 and is investing in emerging technologies to support the clean energy transition. Xcel Energy continues to provide reliable and affordable energy to its customers and is taking steps to save them money through wind and solar projects and efficiency programs. The company is also focused on building a diverse workforce and giving back to communities.

Positive

• Xcel Energy has increased its carbon-free energy mix to 53%, surpassing the national average of 41%.
• The company has reduced carbon emissions by 53% from 2005 levels, demonstrating progress in its clean energy transition.
• Xcel Energy plans to exit from coal by the end of 2030, aligning with its goal to provide customers with 100% carbon-free electricity by 2050.
• The company is investing in emerging technologies such as long-duration battery storage and clean hydrogen production to support the reliability and resiliency of the grid during the clean energy transition.
• Xcel Energy has reduced water consumption by 39% since 2005 and air emissions of sulfur dioxide and nitrogen oxides from its power plants by about 80%.

Negative

• None.

Company shows progress in clean energy transition while maintaining nearly 99% grid reliability

MINNEAPOLIS--(BUSINESS WIRE)-- More than half of the power Xcel Energy generates across the eight states it serves now comes from carbon-free sources, the company announced in its 18^th annual Sustainability Report today.

Carbon-free energy made up 53% of the company’s 2022 energy mix, compared to an average of 41% nationwide. The company has also reduced carbon emissions associated with the electricity it provides to customers by 53% from 2005 levels. The Sustainability Report details the company’s progress in transitioning to clean energy while maintaining reliable and affordable natural gas and electricity service, as well as the company’s commitments to further strengthen communities and value the people that make up its workforce.

“Xcel Energy is at the heart of our nation’s clean energy transition,” said Bob Frenzel, chairman, president and chief executive officer of Xcel Energy. “Guided by our customers’ priorities and enabled by rapidly changing technology, we’re driving toward a clean energy future, bringing reliable, affordable, increasingly clean energy to millions.”

Xcel Energy was the first U.S. energy provider to set aggressive goals to reduce carbon emissions from the most significant ways customers use energy: for electricity, heating and transportation. In 2018, the company set a goal to provide customers with 100% carbon-free electricity by 2050 and reduce carbon emissions from its operations by 80% from 2005 levels by 2030.

The company has begun to implement its Colorado and Upper Midwest energy plans, which outline the new energy generation, transmission infrastructure, and other resources it will develop to meet its 2030 goal. Xcel Energy also plans to exit from coal by the end of 2030 if regulators approve its proposal to retire coal operations at Tolk Generating Station in Texas four years ahead of schedule. To support the reliability and resiliency of the grid as this transition continues, the company is helping to incubate and scale emerging technologies, including demonstration-scale projects in long-duration battery storage and clean hydrogen production. Xcel Energy also continues to develop new transmission lines and in 2022 received approval for Colorado’s 560- to 650-mile Power Pathway project. The company has built more miles of transmission over the last 15 years than any other utility in the U.S.

Through the clean energy transition, the company is reducing other environmental impacts of its operations as well. Since 2005, Xcel Energy has reduced water consumption from owned and purchased energy generation by 39% and air emissions of sulfur dioxide and nitrogen oxides from its power plants by about 80%.

Providing customers with reliable and affordable service

Xcel Energy continues to provide reliable, affordable energy to its customers. The company outperforms the industry reliability standard, restoring power to 94% of customers within 24 hours during major storm events, and maintains average residential electric bills 20% lower than the national average.

The company is also taking steps to save customers money through cost-effective wind and solar projects as well as efficiency programs to help them save energy. From 2017 to 2022, company-owned wind projects saved customers approximately $3 billion through avoided fuel costs and earned tax credits.

As high global natural gas prices drove up energy bills this past winter, the company expanded efforts to arrange payment plans with customers and connected more than 190,000 customers to assistance programs from both Xcel Energy and public sources in 2022. Those customers received a total of $216 million in energy assistance, a nearly 50% increase over 2021. Xcel Energy continues to work on policies that will enhance its ability to protect customers from future natural gas price volatility.

Investing in people and communities

Xcel Energy continues to build and maintain a talented workforce that matches the diversity of the communities it serves. The company has increased female representation on both the Xcel Energy Board of Directors and senior executive leadership team and has also increased the racial and ethnic diversity of its leadership.

New programs will help to ensure that all customers have opportunities to participate in the clean energy transition. The company’s transportation vision, for example, includes programs that will make it easier and more affordable for customers to own and charge an electric vehicle and access electric transportation. Xcel Energy helped customers complete about 4.5 million energy efficiency projects in 2022, and nearly 290,000 customers participated in renewable choice programs.

Together with the Xcel Energy Foundation, employees and retirees, the company gave back to its communities, donating $15.6 million — up from $14.9 million the previous year — across the eight states it serves and contributing more than 74,000 volunteer hours for non-profit and community improvement projects. Meanwhile, Xcel Energy continues to partner with local economic development organizations to attract new business to communities, initiating 40 projects in 2022 with the combined potential to add $1.8 billion in investment and about 2,900 jobs. Xcel Energy spent $2.8 billion on goods and services with local businesses in 2022 and $1.2 billion with small and diverse businesses.

Read the full Sustainability Report.

About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.

About Xcel Energy Foundation

The Xcel Foundation is a 501(c)(3) organization that awards charitable grants to nonprofit organizations and sponsors the volunteer programs of Xcel Energy and its subsidiaries. The majority of Xcel Energy Foundation funding comes from Xcel Energy shareholder dollars. Learn more about the Foundation’s Focus Area Grants.

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Xcel Energy Media Relations

(612) 215-5300

mediainquiries@xcelenergy.com

Source: Xcel Energy

FAQ

What is the percentage of carbon-free energy in Xcel Energy's energy mix?

53%

How much have Xcel Energy's carbon emissions been reduced from 2005 levels?

53%

What is Xcel Energy's goal for carbon-free electricity?

100% by 2050

When does Xcel Energy plan to exit from coal?

By the end of 2030

What emerging technologies is Xcel Energy investing in?

Long-duration battery storage and clean hydrogen production

How much has Xcel Energy reduced water consumption since 2005?

39%

How much have air emissions of sulfur dioxide and nitrogen oxides been reduced from Xcel Energy's power plants?

About 80%

How does Xcel Energy provide reliable and affordable energy to its customers?

By outperforming the industry reliability standard and maintaining average residential electric bills 20% lower than the national average

What steps is Xcel Energy taking to save customers money?

Through cost-effective wind and solar projects and efficiency programs

How much did Xcel Energy donate to communities in the past year?

$15.6 million