AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Operating networks serving 3.9 million electric and 2.2 million gas customers, together with municipal franchises, demonstrate a substantial incumbent infrastructure position. Efficient-scale barriers are inferred; exclusive territories are not established.
durability · 2/4 · Installed networks, franchises and approved regulated revenues support persistence, while periodic franchise renewal, customer bypass and regulatory discretion limit its demonstrated duration. No current municipalization is disclosed.
customer dependency · 3/4 · Millions of customers currently depend on the operating utility networks. Dependence is inferred from service delivery rather than measured retention. Industrial self-generation and fuel substitution limit universality; the approved Minnesota tariff creates stronger terms only for qualifying new loads.
erosion resilience · 2/4 · Approved rate recovery and Minnesota large-load protections counter some erosion risks. Actual wildfire insurance consumption and disclosed customer bypass economics constrain resilience; wholesale and transmission competition are exposures rather than proof of realized market-share losses.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Minnesota approved approximately $332 million of increases for 2022–2024. South Dakota approved a $26 million annual increase effective July 2026 against a $44 million request. These demonstrate successful but constrained regulatory pricing; the July increase is an effective tariff, not first-half realized revenue.
retention · 2/4 · The large operating customer base and absence of current municipalization indirectly support continuing demand. No longitudinal retention evidence is supplied, and self-generation, relocation and wholesale alternatives make retention less secure than the network footprint alone suggests.
margin resilience · 2/4 · First-half 2026 operating income rose to $1.460 billion from $1.254 billion despite slightly lower revenue, supported in part by lower energy costs. Disclosed cost-recovery and decoupling mechanisms provide protection, but higher financing costs and wildfire exposure limit the conclusion. These results do not independently establish pricing power.
contractual freedom · 1/4 · Retail prices and important terms require regulatory approval, and South Dakota's approved increase was below the request. Minnesota's approved minimum bills, long term and exit fees improve protection for qualifying new loads, but remain regulator-authorized terms rather than broad unilateral pricing freedom.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength2
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 8.39
- currentRatioGrade
- 0.00
- Net debt / operating income (x)
- 13.01
- Interest coverage (x)
- 1.92
- Current ratio (x)
- 0.71
Capital allocation—
Missing required inputs: sbcRevenue. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 5.30
- 3-year average dilution (%)
- 2.39
- cashConversionGrade
- 0.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half earnings and EPS increased, but long-term debt rose from $31.832 billion to $35.948 billion and weighted-average diluted shares increased year over year. The $60 billion capital plan anticipates $22.820 billion of new debt and $7 billion of equity. This is mixed evidence of financing burden and per-share outcomes; cash generation and completed project returns cannot be fully assessed.
incentive alignment · 3/4 · Actually granted awards include EPS, operating and environmental conditions with relative TSR adjustments. Clawbacks, hedging restrictions and demonstrated director ownership compliance strengthen alignment. A substantial service-only award component and executives described as either compliant or on track temper the assessment.
execution · 2/4 · The issuer reports 21 consecutive years of meeting or exceeding initial ongoing earnings guidance, and first-half 2026 GAAP EPS improved. However, 2025 GAAP EPS fell 0.6% despite 8.6% ongoing growth, and wildfire settlements have consumed most insurance coverage. Execution is mixed, with operating quality assessed indirectly from financial outcomes rather than comprehensive reliability data.
governance · 3/4 · Existing annual majority-vote elections, proxy access, special-meeting rights, regular evaluations and compensation safeguards support strong formal governance. Combined chairman and CEO roles are balanced by a lead independent director. These disclosed practices establish structure, not exceptional effectiveness in preventing operational losses.
Evidence
Utility Subsidiary Overview Electric customers 3.9 million Natural gas customers 2.2 million Total assets $81.4 billion Electric generating capacity (owned) 20,800 MW Natural gas storage capacity 53.3 Bcf Electric transmission lines (conductor miles) 115,000 miles Electric distribution lines (conductor miles) 225,000 miles Natural gas transmission lines 2,100 miles Natural gas distribution lines 38,000 miles Service Territory Strategy Xcel Energy’s vision is to be the preferred and trusted provider of the energy our customers need.
Item 1 — Business; Utility Subsidiary Overview · Filed 25/02/2026
Xcel Energy Inc.’s utility subsidiaries have franchise agreements with cities subject to periodic renewal; however, a city could seek alternative means to access electric power or gas, such as municipalization.
Item 1 — Business; Competition; municipal franchise agreements · Filed 25/02/2026
No municipalization activities are occurring presently.
Item 1 — Business; Competition; current municipalization activity · Filed 25/02/2026
Customers have the opportunity to supply their own power with distributed generation including solar generation and can currently avoid paying for most of the fixed production, transmission and distribution costs incurred to serve them in most jurisdictions.
Item 1 — Business; Competition; distributed generation and fixed-cost avoidance · Filed 25/02/2026
Xcel Energy’s wholesale customers can purchase energy from other generation resources and transmission services from other service providers to serve their native load.
Item 1 — Business; Competition; wholesale customer alternatives · Filed 25/02/2026
FERC Order No. 1000 established competition for ownership of certain new electric transmission facilities under Federal regulations.
Item 1 — Business; Competition; new transmission ownership · Filed 25/02/2026
Xcel Energy’s industrial and large commercial customers have the ability to generate their own electricity.
Item 1 — Business; Competition; industrial and commercial self-generation · Filed 25/02/2026
In addition, customers may have the option of substituting other fuels or relocating their facilities to a lower cost region.
Item 1 — Business; Competition; fuel substitution and relocation · Filed 25/02/2026
Public policy developments, including legislative actions and electoral changes at the state level, may affect recovery mechanisms or allowed returns and may limit recovery timing or cost allocation, negatively impacting our results of operations, financial condition or cash flows.
Item 1A — Risk Factors; recovery mechanisms and allowed returns · Filed 25/02/2026
2022 Minnesota Electric Rate Case — In July 2023, the MPUC approved a three-year rate increase of approximately $332 million for 2022-2024, based on a ROE of 9.25% and an equity ratio of 52.5%.
2022 Minnesota Electric Rate Case; approved increase and allowed ROE · Filed 30/07/2026
2025 South Dakota Electric Rate Case — In June 2025, NSP-Minnesota filed a request with the SDPUC for a net annual electric rate increase of $44 million (15%).
2025 South Dakota Electric Rate Case; requested increase · Filed 30/07/2026
1, 2026. In April 2026, NSP-Minnesota and SDPUC Staff filed a black box settlement agreement with the SDPUC, including a net annual electric rate increase of $26 million.
2025 South Dakota Electric Rate Case; settlement amount · Filed 30/07/2026
In May 2026, the SDPUC approved the settlement agreement, and rates became effective July 1, 2026.
2025 South Dakota Electric Rate Case; approval and effective date · Filed 30/07/2026
PSCo Summary of Regulatory Agencies / RTO and Areas of Jurisdiction Regulatory Body / RTO Additional Information on Regulatory Authority CPUC Retail rates, accounts, services, issuance of securities and other aspects of electric, natural gas and steam operations.
PSCo; regulatory authority over retail rates and operations · Filed 25/02/2026
NSP-Minnesota —The tariff, which was approved by the MPUC in June 2026, is mandatory for new loads over 100 MW and includes an incremental cost test, minimum initial term of 15 years, minimum bill provisions, termination and exit fees, and credit requirements.
Large-load tariffs; approved NSP-Minnesota tariff · Filed 30/07/2026
Sales true-up and decoupling mechanisms mitigate the impacts of weather in certain jurisdictions.
Item 1 — Business; Seasonality; sales true-up and decoupling · Filed 25/02/2026
Current estimated financing plans of Xcel Energy for 2026 through 2030 (includes the impact of tax credit transferability): (Millions of Dollars) Funding Capital Expenditures Cash from operations (a) $ 30,180 New debt (b) 22,820 Equity issuances (c) 7,000 Base capital expenditures 2026 - 2030 $ 60,000 Maturing debt $ 3,580 (a)Net of dividends and pension funding.
Financing for Capital Expenditures through 2030; estimated funding plan · Filed 25/02/2026
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions, except per share data) Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Operating revenues Electric $ 2,740 $ 2,878 $ 5,716 $ 5,713 Natural gas 365 396 1,395 1,451 Other 14 13 29 29 Total operating revenues 3,119 3,287 7,140 7,193 Operating expenses Electric fuel and purchased power 678 918 1,697 1,938 Cost of natural gas sold and transported 93 134 613 647 Cost of sales — other 2 1 5 3 Operating and maintenance expenses 691 675 1,366 1,361 Conservation and demand side management expenses 107 88 228 198 Depreciation and amortization 662 722 1,430 1,450 Taxes (other than income taxes) 177 172 360 342 Marshall Wildfire litigation 3 — (19) — Total operating expenses 2,413 2,710 5,680 5,939 Operating income 706 577 1,460 1,254 Other income, net 37 68 59 75 Earnings (loss) from equity method investments 76 (8) 89 (9) Allowance for funds used during construction — equity 105 69 197 117 Interest charges and financing costs Interest charges — includes other financing costs 443 349 855 681 Allowance for funds used during construction — debt (45) (27) (85) (50) Total interest charges and financing costs 398 322 770 631 Income before income taxes 526 384 1,035 806 Income tax benefit (60) (60) (107) (121) Net income $ 586 $ 444 $ 1,142 $ 927 Weighted average common shares outstanding: Basic 625 586 625 580 Diluted 627 588 627 582 Earnings per average common share: Basic $ 0.94 $ 0.76 $ 1.83 $ 1.60 Diluted 0.93 0.75 1.82 1.59 See Notes to Consolidated Financial Statements 5 Table of Contents XCEL ENERGY INC.
Consolidated Statements of Income; six months ended June 30, 2026 and 2025 · Filed 30/07/2026
31, 2025 Assets Current assets Cash and cash equivalents $ 2,010 $ 274 Accounts receivable, net 1,255 1,330 Accrued unbilled revenues 786 880 Inventories 745 761 Regulatory assets 521 529 Derivative instruments 178 165 Prepayments and other 587 1,075 Total current assets 6,082 5,014 Property, plant and equipment, net 69,497 65,639 Other assets Nuclear decommissioning fund and other investments 4,727 4,389 Regulatory assets 3,108 2,998 Derivative instruments 44 54 Operating lease right-of-use assets 865 893 Finance lease right-of-use assets 1,421 1,348 Other 1,421 1,036 Total other assets 11,586 10,718 Total assets $ 87,165 $ 81,371 Liabilities and Equity Current liabilities Current portion of long-term debt $ 999 $ 501 Short-term debt 2,510 1,550 Accounts payable 2,323 2,307 Regulatory liabilities 846 714 Taxes accrued 416 579 Accrued interest 385 337 Dividends payable 370 355 Derivative instruments 17 31 Operating lease liabilities 107 110 Other 699 605 Total current liabilities 8,672 7,089 Deferred credits and other liabilities Deferred income taxes 6,012 6,004 Regulatory liabilities 6,594 6,277 Asset retirement obligations 3,293 3,888 Derivative instruments 51 67 Customer advances 123 129 Pension and employee benefit obligations 307 365 Operating lease liabilities 759 788 Finance lease liabilities 1,288 1,262 Other 61 61 Total deferred credits and other liabilities 18,488 18,841 Commitments and contingencies Capitalization Long-term debt 35,948 31,832 Common stock — 1,000,000,000 shares authorized of $2.50 par value; 624,405,747 and 623,600,715 shares outstanding at June 30, 2026 and December 31, 2025, respectively 1,561 1,559 Additional paid in capital 12,947 12,906 Retained earnings 9,607 9,207 Accumulated other comprehensive loss (58) (63) Total common stockholders’ equity 24,057 23,609 Total liabilities and equity $ 87,165 $ 81,371 See Notes to Consolidated Financial Statements 8 Table of Contents XCEL ENERGY INC.
Consolidated balance sheet; debt, assets and outstanding shares · Filed 30/07/2026
These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.
Derivative activity; fuel and purchased energy cost-recovery mechanisms · Filed 30/07/2026
Resolution of remaining complaints and claims associated with the Smokehouse Creek Fire Complex could exceed our insurance coverage of $525 million for the annual policy period (of which approximately $80 million of coverage remains after consideration of settlements reached and legal costs incurred through June 30, 2026) and could have a material adverse effect on our financial condition, results of operations or cash flows.
Smokehouse Creek Fire Complex; remaining insurance and potential exposure · Filed 30/07/2026
We have consistently achieved our financial objectives, meeting or exceeding our initial ongoing earnings guidance range for 21 consecutive years and delivering dividend growth for 23 consecutive years.
Item 1 — Business; Our Performance; historical guidance and dividend record · Filed 25/02/2026
2025 EPS Growth (0.6)% (annual GAAP EPS growth) 8.6% (annual ongoing EPS growth) PROXY STATEMENT 2026 A-1
Proxy Appendix A; 2025 GAAP and ongoing EPS growth · Filed 07/04/2026
Xcel Energy‘s Board of Directors has granted share based awards under these plans, which include various service, performance and market conditions.
Note 8 — Share-Based Compensation; awards actually granted · Filed 25/02/2026
For 2025, awards with conditions incremental to service contain goals based on EPS, operations and environmental performance, each with adjustments for relative TSR ranking.
Note 8 — Share-Based Compensation; 2025 award performance conditions · Filed 25/02/2026
Equity award units granted to employees: (Units in Thousands) 2025 2024 2023 Granted units (a) 683 658 586 Weighted average grant date fair value $ 68.19 $ 63.02 $ 67.06 (a)Includes 2025, 2024 and 2023 grants of 379, 457 and 413 units (each in thousands), respectively, subject only to service conditions.
Note 8 — Share-Based Compensation; performance and service-only grant mix · Filed 25/02/2026
What We Do What We Don't Do •Pay for performance with a substantial percentage of each NEO's total direct compensation being variable, at risk and aligned with performance-based metrics •Use an appropriate peer group when establishing compensation •Balance short-term and long-term incentive performance goals to reflect operating and strategic objectives •Place strong emphasis on performance-based equity awards •Include sustainability metrics in our compensation programs in support of our sustainability strategy •Align executive compensation with stakeholder interests through long-term incentives goals •Set significant stock ownership guidelines for NEOs, other executives and non-employee directors •Mitigate undue risk-taking in compensation programs •Have clawback policies in place allowing for recoupment of compensation •Retain an independent compensation consultant •Don't provide employment contracts to NEOs •Don't permit directors or employees to hedge or pledge their Company stock •Don't provide unusual or excessive perquisites •Don't provide tax gross-ups on severance benefits or executive perquisites except for circumstances regarding relocation •Don't supplement service credit to newly hired officers under any of our qualified or nonqualified retirement plans Our Compensation Program Supports our Sustainability Strategy Sustainability metrics have been included in our incentive compensation plans since 2000: 2000 Employee safety metrics have been included as a KPI on our corporate scorecard and annual incentive plan since Xcel Energy was formed 2005 Environmental reductions and projects have been tied to long-term incentives for the past 21 years 2014 Our current carbon emissions reduction goal has been in place for the past 12 years 2021 Inclusion metric added as a KPI as part of our corporate scorecard and annual incentive plan 32 Compensation Discussion and Analysis Impact of Say on Pay Vote Each year, Xcel Energy provides shareholders with a non-binding say on pay vote on its executive compensation programs.
Compensation Discussion and Analysis; clawbacks, ownership guidelines and hedging restrictions · Filed 07/04/2026
As of March 23, 2026, all the NEOs have achieved, or are on track to achieve, the stated stock ownership requirement by the date specified for achievement.
Compensation Discussion and Analysis; executive ownership guideline status at March 23, 2026 · Filed 07/04/2026
Sound Practices Governance Best Practices Shareholder Rights •Regular executive sessions •Board and management succession plans •Term limits and mandatory retirement age for directors •Guardrails to prevent overboarding •Regular shareholder outreach •Routine engagement with outside experts •Annual committee assignments •Annual election of directors by majority vote •Annual advisory vote on executive compensation •Proxy access adopted •No supermajority voting provisions •Right to call a special meeting •Each share is entitled to one vote Effective Board Oversight Strategy and Direction Performance Monitoring •Annual strategy session and regular strategic updates •Annual enterprise and compliance risk assessments •Annual charter reviews and updates •Clear committee oversight of and executive accountability for sustainability issues •Focus on execution and results •Scorecard governance with metrics aligned to sustainability issues •Annual Board and committee evaluations overseen by the Lead Independent Director Key Focus Areas •Safety •Operational excellence •Reliability and resiliency •Resource adequacy •Cyber and physical security •Risk management •Clean energy and climate leadership •Advanced energy technologies •Customer experience and affordability •Human capital management •Organization and culture An Experienced and Engaged Board Our directors bring extensive and relevant business, leadership and community experience.
Proxy Summary; existing governance practices and shareholder rights · Filed 07/04/2026
PROXY STATEMENT 2026 9 Corporate Governance Leadership Structure and Roles Our Board leadership structure consists of a combined Chairman and CEO position, complemented by a Lead Independent Director chosen annually from our independent directors.
Corporate Governance; combined chairman and CEO with lead independent director · Filed 07/04/2026
All directors whose stock ownership target date was on or before December 31, 2025 have met the guideline.
Director Stock Ownership Guidelines; compliance for directors with elapsed deadlines · Filed 07/04/2026
Zero-Carbon Electricity by 2050 Xcel Energy’s operating footprint includes some of the best wind and solar resources in the country, providing for higher capacity factors and lower electricity costs.
Item 1 — Business; issuer claim about wind and solar resource advantages · Filed 25/02/2026
In March 2026, the MPUC declined to modify the treatment of executive compensation.
2022 Minnesota Electric Rate Case; March 2026 executive compensation treatment decision · Filed 30/07/2026
In July 2026, the MPUC declined to modify the treatment of prepaid pension asset.
2022 Minnesota Electric Rate Case; July 2026 prepaid pension asset treatment decision · Filed 30/07/2026
