Xcel Energy’s Doug Ryan (left) worked with Denver International Airport’s (DIA) Woods Allee on energy efficiency efforts at the DIA that enabled the airport to save more than 9 gigawatt-hours of electricity annually and earn rebates of more than $400,000. 

The DIA also participated in Xcel Energy’s Solar*Rewards ® program, which offers incentives and rebates for installing solar panels. The airport installed 8 megawatts of solar panels at three different locations. 

“Xcel Energy’s efforts and programs have enabled the airport to implement a number of energy management initiatives that are not only environmentally beneficial but also make economic sense,” Allee said. 

across our service territory and rate increases in various states. The higher margins were partially offset by expected increases in operating and maintenance expenses, depreciation, interest expense and property taxes. 

Our stock price rose 17 percent in 2011, hitting a nine-year high in December. Taking into account the reinvestment of our dividends, we delivered a total return of more than 22 percent. We also raised our annual dividend by 3 cents per share, or 3 percent, and maintained strong credit ratings. 

Looking ahead, we anticipate delivering ongoing earnings in the lower half of our $1.75 to $1.85 guidance range in 2012. That’s due in part to an early 2012 decision by the Colorado Public Utilities Commission (CPUC) to deny our request for interim rates as part of a larger rate increase request. The CPUC did, however, allow deferred accounting for a portion of that interim rate request, which will partially offset a revenue gap as we await new rates in Colorado. In addition, we are paying higher property taxes, primarily in Colorado and Minnesota. Despite those challenges, we are focused on delivering 5 percent to 7 percent annual earnings growth and feel confident that we will achieve that goal. 

## Energized for customers 

Our work for customers is built on a solid foundation of operational excellence. For example, we carefully track electric system reliability and in 2011 achieved our company-wide reliability goal despite the fact that we experienced several major storms in various parts of our service territory. Adverse weather resulted in tornadoes in Minnesota, flooding in North Dakota, fires in Texas and an early snowstorm in Colorado. In every situation, 

our employees proved their commitment to customers, restoring power in record time. 

In other reliability efforts, we completed construction of a natural gas-fired unit at our Jones Station in Texas. We brought the unit on line a year ahead of schedule, significantly under budget and in time for peak electric use during an unusually hot summer. Thriving energy and agricultural industries in that part of the country contribute to growing electric demand and have prompted us to propose a fourth unit at Jones Station that should be complete by summer 2013, pending all regulatory approvals. 

Our public safety efforts are another measure of operational excellence. To meet new federal guidelines, we are inspecting natural gas transmission systems across our service territory, paying particular attention to pipelines near public areas. We will invest about $230 million to upgrade those systems. We also are making significant investments in our natural gas distribution system. Xcel Energy’s natural gas business is a vital component of our operational mix. 

As we ensure reliability and safety, we also help customers save energy and money with a wide variety of energy efficiency programs and rebates. In 2011, we more than met challenging energy efficiency targets and in the process gave customers valuable options for controlling their energy use in a tough economy. They responded with a record residential customer satisfaction score of 93 percent. 

Our energy efficiency efforts are key components of our environmental leadership strategy. They help us reduce emissions while enabling us to avoid building new power plants, and we are able to earn a significant return on our efforts. 

