XCEL ENERGY | ANNUAL REPORT 2020 FISCAL AGENTS XCEL ENERGY INC. Transfer Agent, Registrar, Dividend Distribution, Common Stock EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101 Mendota Heights, MN 55120 Trustee–Bonds Wells Fargo Bank, N.A., Corporate Trust Services 600 South 4th Street Minneapolis, MN 55415 2020 ANNUAL 2020 ANNUAL REPORT ESSENTIAL xcelenergy.com | © 2021 Xcel Energy Inc. | Xcel Energy is a registered trademark of Xcel Energy Inc. | 21-02-126 XCEL ENERGY BOARD OF DIRECTORS SHAREHOLDER INFORMATION Lynn Casey 2,4 HEADQUARTERS Retired Chair and CEO, Padilla 414 Nicollet Mall, Minneapolis, MN 55401 Ben Fowke WEBSITE FOWKE ADVOCATES FOR Chairman and CEO, xcelenergy.com Xcel Energy Inc. RACIAL EQUITY AS EEI CHAIR STOCK TRANSFER AGENT 2,4 In June, Xcel Energy Chairman and CEO Ben Fowke was elected Chairman of Edison Electric Institute, our Netha Johnson EQ Shareowner Services President, Bromine Specialties industry trade association, after serving as Vice Chair last year. He originally planned to focus on the clean 1110 Centre Pointe Curve, Suite 101 and Global IT, Albemarle Corporation energy transition and COVID-19 recovery, but two weeks before his one-year term began, Ben and most of Mendota Heights, MN 55120 the country saw the footage of George Floyd’s death while in police custody in south Minneapolis. Patricia Kampling 2,3 Telephone: 877-778-6786, toll free Retired Chairman and Chief Executive Calling the incident that occurred only a few miles from Xcel Energy’s corporate headquarters “an awakening,” REPORTS AVAILABLE ONLINE Officer, Alliant Energy Corporation Ben knew that addressing racial equity was too important to not include in his platform. Ben, who was named Financial reports, including filings with the Securities and 2020 Executive of the Year by Utility Dive, quickly rallied the industry and gained commitments from 57 CEOs George Kehl 1,2 Exchange Commission and Xcel Energy’s Report to Shareholders, to address racial equity in their companies and communities, starting with four core principles: 1) Ensuring Retired Managing Partner, KPMG are available online at xcelenergy.com; click on Investor Relations. Other information about Xcel Energy, including our Code of diversity, equity and inclusion efforts are driven from the top 2) Removing barriers to entry and broadening 1,4 Richard O’Brien Conduct, Guidelines on Corporate Governance, Corporate talent pools 3) Establishing strong community connections, and 4) Developing infrastructure academies and Independent Consultant training programs. Responsibility Report and Committee Charters, is also available at David Owens 2,4 xcelenergy.com. Xcel Energy added a diversity, equity and inclusion corporate scorecard metric for 2021, tying executive Retired Executive, and employee compensation to demonstrate our commitment to diversity, equity and inclusion and STOCK EXCHANGE LISTINGS AND TICKER SYMBOL Edison Electric Institute Common stock is listed on the Nasdaq Global Select Market improved hiring and sponsorship practices. This metric is designed to create accountability in our (Nasdaq) under the ticker symbol XEL. In newspaper listings, it leadership team and the company as a whole to reduce the barriers to a diverse workforce. Charles Pardee 1,4 President, Terrestrial Energy, USA may appear as XcelEngy. Christopher Policinski 3 INVESTOR RELATIONS FINANCIAL HIGHLIGHTS EARNINGS PER SHARE Lead Independent Director Website: xcelenergy.com or contact Paul Johnson, Dollars per share (diluted) Vice President, Investor Relations, at 612-215-4535. 2019 2020 Retired President and CEO, Land O’ Lakes, Inc. SHAREHOLDER SERVICES Total GAAP earnings per share 2.64 2.79 James Prokopanko 3,4 Website: xcelenergy.com or contact Darin Norman, Retired President and CEO, Senior Analyst, Investor Relations, at 612-337-2310 or Ongoing earnings per share 2.64 2.79 The Mosaic Company email [email protected]. 2.47 2.47 2.64 2.64 2.79 2.79 James Sheppard 2,4 CORPORATE GOVERNANCE Dividends annualized 1.62 1.72 Independent Consultant Xcel Energy has filed with the Securities and Exchange Commission certifications of its Chief Executive Officer and Chief David Westerlund 1,3 Stock price (close) 63.49 66.67 Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act Retired Executive Vice President, of 2002 as exhibits to its Annual Report on Form 10-K for 2020. Administration and Corporate Secretary, Assets (millions) 50,448 53,957 Ball Corporation To contact the Board of Directors, send an email to [email protected]. 2018 2019 2020 Kim Williams 2,3 You also may direct questions to the Corporate Secretary’s Retired Partner, COMPANY DESCRIPTION GAAP (generally accepted accounting department at [email protected]. principles) earnings per share Wellington Management Company LLP Xcel Energy is a major U.S. electric and natural gas Timothy Wolf 1,4 company with annual revenues of $11.5 billion. Based in Ongoing earnings per share President, Minneapolis, Minnesota, the company operates in eight Wolf Interests, Inc. states and provides a comprehensive portfolio of energy- related products and services to 3.7 million electricity Daniel Yohannes 1,2 customers and 2.1 million natural gas customers. Former United States Ambassador to the Organization for Economic Cooperation and Development ON THE COVER: Adolphus Ugeh, a member of our Transmission Field Board Committees: Operations team, is pictured at a new transmission 1. Audit substation near Golden, Colorado. He is one of 2. Finance thousands of Xcel Energy essential workers responsible 3. Governance, Compensation and Nominating for providing safe, reliable energy for our customers. 4. Operations, Nuclear, Environmental and Safety DEAR FELLOW SHAREHOLDERS: 2020 was a year like no other, and I am proud to say the Xcel Energy team rose to the challenge. In the face of a global pandemic, a severe economic downturn and widespread civil unrest, we delivered on our financial and operational objectives while simultaneously mitigating the impacts of COVID-19 and supporting our communities like never before. We continue to lead the clean energy transition and make excellent progress toward our vision to provide 100% carbon-free electricity for our customers by 2050. At the end of 2020, 47% of the energy we produced came from carbon-free sources. That number will continue to climb as we execute our plans to retire coal plants, build large-scale renewable projects, preserve our high-performing nuclear fleet and maintain natural gas as a bridge and backup fuel. A diversified energy mix is critical during this transition to enhance reliability and keep customer bills low. We’ve reduced carbon emissions 51% since 2005 — halfway to our 2050 goal and ahead Ben Fowke Chairman and of schedule — and we are creating concrete Chief Executive Officer pathways to reach our 80% reduction goal by 2030. I’m encouraged by the opportunity to take our increasingly green product and reduce carbon from the transportation sector. Last year, we announced a bold vision to power 1.5 million electric vehicles in our service areas by the end of 2030 (see story on pages 6-8) and launched a comprehensive strategy to lower greenhouse gas emissions from our natural gas business. For me, 2020 will always be remembered as the year that our employees delivered for our customers and communities in extraordinary times. We never take for granted the trust you place in us to power the homes and businesses of our customers all day, every day. It’s a tremendous responsibility that took on additional meaning during this global pandemic. ESSENTIAL ANNUAL REPORT 2020 3 We chose “Essential” as the theme for this STEEL FOR FUEL EXECUTION report because of the essential role we play in Our Steel for Fuel growth strategy — building our communities and in our society. Electricity wind farms that deliver both economic and and natural gas are essential services provided environmental benefits for our customers and by our essential workers who take great pride in stakeholders — continues to drive organic their ability to deliver for their neighbors. We also growth for the company. Under Steel for Fuel, play a vital role in driving economic development we add carbon-free renewable energy — the and giving back through the Xcel Energy Foundation. “steel” — allowing our customers to avoid Last year, we earmarked $20 million in short- and the cost of fuel that would otherwise be used long-term corporate giving, including support for to produce electricity in traditional generating COVID-19 recovery and racial justice (see story plants. This strategy keeps customer bills low, on pages 16-18). drives economic development and generates an I take great pride in our team’s resiliency, attractive shareholder return. determination and flexibility last year as we In the last year, we added nearly 1,500 learned to work differently, keep each other safe megawatts of company-owned wind to our and deliver for our customers, our communities system, including large self-build projects in and you, our valued shareholders. Colorado, Minnesota and New Mexico. In 2021, we will complete the four remaining projects in STRONG FINANCIAL PERFORMANCE our nation-leading multi-state wind expansion For the 16th consecutive year, we met or that began in 2017. With completion of those exceeded our earnings guidance. We delivered remaining projects, the total wind on our system 2020 earnings of $2.79 per share, within our will grow to approximately 11,000 megawatts, original earnings guidance range of $2.73-$2.83 including nearly 4,500 megawatts of owned per share, compared to $2.64 per share in 2019. wind capacity (see story on pages 12-13). Although electric sales declined approximately 3% Our investments in wind will continue longer due to the economic downturn, we successfully term, including wind repowering projects where implemented continuous improvement initiatives we replace aging equipment with the latest and other cost control measures that reduced our technology to increase wind farm efficiency O&M expenses by nearly 1%.