## Dear Shareholders: 

As your new chairman, president and CEO, I am honored to lead Xcel Energy and will say without hesitation that this is the best energy company in the nation. Our strong financial performance, operational excellence, customer focus and proactive environmental efforts position us for long-term success. That was evident in 2011, an excellent year for us. 

We met or exceeded our financial goals, achieved our system reliability targets despite challenges and hit a record high in customer satisfaction. We continued to take advantage of investment opportunities that will benefit customers, ensure our 

environmental leadership position and result in lasting value for you. Building on that strong momentum, we are energized  for the challenges ahead. 

## Meeting our financial goals 

Ongoing earnings per share were $1.72 in 2011, compared with $1.62 in 2010. That means we achieved the upper half of our guidance range, making 2011 the seventh consecutive year in which we have met or exceeded our earnings guidance. 

Ongoing earnings increased primarily due to higher electric margins as a result of warmer-than-normal summer weather 

BEN FOWKE CHAIRMAN, PRESIDENT AND CEO 

