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Xcel Energy

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This article is part of the Coal Issues portal on SourceWatch, a project of CoalSwarm and the Center for Media and Democracy.
The Xcel Energy Center is an arena in St. Paul which was the site of the Republican National Convention in September, 2008.

Xcel Energy (NYSE: XEL), based in Minneapolis, Minnesota, is a public utility company that generates electric power and transmits and sells electricity and natural gas to customers in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. Xcel serves 3.3 million electricity customers and 1.8 million natural gas customers in these eight states.[1]

Contents

Power portfolio

Through its subsidiaries – Northern States Power Company, Public Service Company of Colorado, and Southwestern Public Service Company – Xcel generated 17,162 MW of electricity in 2005 (approximately 1.7% of all electricity produced in the U.S.). Of that total 2005 generating capacity, 8,961 MW (52.2%) was from coal, 5,162 MW (30.1%) from natural gas, 1,737 MW (10.1%) from nuclear, 581 MW (3.4%) from hydroelectricity, 524 MW (3.1%) from oil, 119 MW (0.7%) from wood and waste, and 26 MW (0.2%) from wind. Xcel’s 8,961 MW of coal energy production made it the 7th biggest private coal energy producer in the U.S. in 2005.[2] (However, Xcel has strongly pursued wind power in recent years, and by the end of 2007 Xcel had 2,800 MW of wind power capacity – making it the biggest wind power producer in the U.S.[3]) Xcel generates approximately 75% of the energy used by its customers; the remaining 25% is purchased from other electricity suppliers.[1]

Corporate earnings and governance

In 2007, Xcel reported total operating revenues of $10.0 billion – of which $7.8 billion was from its electricity business, and $2.1 billion from its natural gas business. The company’s 2007 profits totaled $577 million, or $1.35 per share.[4] In 2007, Xcel was the 260th biggest corporation in the U.S., and the 15th biggest gas & electric utility in the country.[5]

Xcel’s CEO, Richard Kelly, earned $8.0 million in total compensation in 2007.[6] Xcel’s Board of Directors includes:

  • Richard Davis (President and CEO of U.S. Bancorp)
  • Roger Hemminghouse (former CEO of Valero subsidiary Ultramar Diamond Shamrock)
  • Albert Moreno (former Senior VP of Levi Strauss)
  • Retired U.S. Navy Vice Admiral Richard Truly
  • David Westerlund (Executive VP of the Ball Corporation)
  • Timothy Wolf (Global CFO of Molson Coors Brewing Company)

CEO compensation

In May 2007, Forbes listed Xcel CEO Richard C. Kelly as receiving $6.31 million in total compensation for the latest fiscal year. He ranked 14th on the list of CEOs in the Utilities industry, and 254th among all CEOs in the United States.[7]

Political contributions

Xcel Energy is one of the largest energy company contributors to both Republican and Democratic candidates for Congress. These contributions total $194,423 to the 110th US Congress (as of the third quarter), the largest of which has been to Rep. Earl Pomeroy (D-ND) for $10,000. Rep. Pomeroy, for his part, has consistently voted with the coal industry on energy, war and climate bills.[1]

Contributions like this from fossil fuel companies to members of Congress are often seen as a political barrier to pursuing clean energy.

More information on coal industry contributions to Congress can be found at FollowtheCoalMoney.org, a project sponsored by the nonpartisan, nonprofit Oil Change International and Appalachian Voices.

The Center for Responsive Politics Open Secrets database lists Xcel subsidiaries as having contributed to various Republican National Committee (RNC) projects between 2000 and 2002 and a $1000 contribution from the Xcel Energy Employee PAC to Marilyn Musgrave in March 2005.[8]

Other contributions in previous years have been:

  • Xcel Energy Services contributed $10,000 in October 2000 to the RNC's Republican National State Elections Committee;
  • Xcel Energy contributed $5,000 in October 2002 to the RNC's Committee to Preserve Eisenhower Center;
  • Xcel Energy contributed $10,000 in January 2002 to Democratic Congressional Campaign Committee Building Fund Account 1;
  • Xcel Energy Services contributed $40,000 in January 2002 to the RNC's Republican National State Elections Committee;
  • Xcel Energy Services contributed $15,000 in January 2002 to the National Republican Senate Committee's Building Fund;
  • Xcel Energy Services contributed $10,000 in October 2000 to the RNC's Republican National State Elections Committee;
  • Xcel Energy Services contributed $10,000 in January 2000 to the National Republican Congressional Committee's Non-Federal Building Fund;
  • Xcel Energy Services contributed $7,500 in January 2000 to the Democratic Senatorial Campaign Committee's Non-Federal Building Fund;
  • Xcel Energy Services contributed $7,500 in January 2000 to the Democratic Senatorial Campaign Committee's Non-Federal Building Fund
  • in 2007 Xcel contributed $25,000 to the Democratic Governor's Association and the same amount to the Republican Governor's Association.[9]

Xcel Energy's lobbying

The Center for Responsive Politics Open Secrets database lists Excel disclosing that in 2007 it spent $2.7 million on lobbying. The lobbying disclosure forms reveal that the following companies worked for Xcel during 2007[10]:

Xcel Energy spent $2.42 million on its in-house lobbying work in 2008. A further $990,000 was spent in the first half of 2009.[11] Its sole registered lobbyist was John A. O'Donnell.[12]

In 2008 Xcel Energy also spent $50,000 on the services of Governmental Strategies, Inc, a lobbying firm.[13] The sole registered lobbyist working on the account was Timothy E. Smith.[14]

Xcel Energy also spent over $20,000 in 2008 on the services of The Smith-Free Group and a further $50,000 in the first half of 2009.[15] The registered lobbyists were James C. Free and Robert Hickmott.[16]

Xcel Energy spent $50,000 on the services of Clark & Weinstock in the first three quarters of 2008. The registered lobbyists working in the account were Niles Godes, Ed Kutler, Sandra Stuart and Vin Weber.[17]

Xcel Energy also spent $120,000 on the services of Stuntz Davis & Staffier, P.C. in 2008 and a further $30,000 in the second quarter of 2009. The registered lobbyists working on the account in 2008 were Randall E. Davis and Ellen S. Young[18] who were joined by Linda G. Stuntz in 2009.[19]

Xcel Energy also spent $40,000 on the services of Polaris Government Relations in the latter half of 2008. The registered lobbyists were Daniel J. Gans, Amelia Blackwood and Zack Rimmele.[20]

Contributions to trade associations and other groups

In its 2007 contributions report Xcel Energy discloses the following contributions[9]:

Xcel subidiaries

Xcel states that its has two principal non-regulated subsidiaries, Eloigne Company and Quixx Corporation. It also has four regulated operating companies: Northern States Power Company Minnesota; Northern States Power Company Wisconsin; Public Service Company of Colorado and the Southwestern Public Service Company. It also has the service company, Xcel Energy Services Inc.

Coal projects sponsored by Xcel

Active

Cancelled/Inactive

Citizen action against Xcel's coal plants

July 14, 2009: Residents protest Valmont at public hearing, push for conversion

Xcel and the City of Boulder are in negotiations to renew Valmont Station's contract with the city. The agreement must be renewed every five years and is slated to expire in August 2010.[21] Many Boulder residents are pushing for the plant to stop burning coal either shut down entirely or convert to cleaner energy.[22][23]

On July 14, 2009, the Colorado Air Quality Control Commission held a hearing to solicit public comment on renewing the plant's permit. More than 200 people turned out to oppose the plant at a rally before the meeting. About 50 people addressed the Commission, asking its members to deny the permit because the plant emits more than 1 million metric tons of carbon dioxide each year.[24]

November 18, 2009: Demonstrators protest Cherokee and Valmont Stations: Denver, CO

Protesters dressed as clowns visited Colorado Governor Ritter's office to urge him to "stop clowning around when it comes to confronting global warming." Environmental groups are opposed to Xcel's request to renew expired permits at its Cherokee and Valmont Stations and want the state to pursue clean energy options instead. New research has shown that nitrogen oxide emissions are clouding lakes, changing lake biology, and threatening the aquatic life in the Colorado mountains.[25]

November 19, 2009: Residents pack regulator's hearing on Cherokee: Denver, CO

Local residents packed a public hearing by state air-quality regulators, urging officials to deny Xcel's request to renew its permit for Cherokee Station. More than 50 people spoke in opposition to the plant and advocated for a switch to cleaner energy sources. Residents argued that at minimum, regulators should work with Xcel to ramp up natural-gas systems at the plant, and then switch to solar and wind as those technologies mature.[26]

November 30, 2009: Activists stage 'Die-In' at Department of Public Health and Environment in Denver, CO

Fifteen activists demonstrated outside the Colorado Department of Public Health and Environment (DPHE) to demand the denial of Xcel's request to renew its air permit for Cherokee Station. The protesters greeted DPHE employees as they arrived for work and called on the department to close the coal plant. Protestors staged a "die-in" to call attention to the harmful health and environmental effects of coal. Other activists wore hazmat suits and roped off the area with "Global Warming Crime Scene" tape.[27]

February 26, 2010: ‘Die-in’ at Xcel Headquarters in Denver, Colorado

On February 26, 2010, local citizens in Denver staged a 'die-in' at the headquarters for Xcel Energy in opposition to the utility’s plan to build a new coal-fired power plant, Comanche 3, in Pueblo, Colorado. The plant would be the largest in the coal-fired power station in the state. Protesters cited environmental as well as social and economic issues as reasons for their actions. “Our leaders are failing to lead and Xcel is failing to take their responsibility seriously. Xcel should expect more protests and actions unless they start closing down coal plants and moving Colorado to 100% renewable electricity,” Kate Clark, a Power Past Coal activist. The protest was part of an ongoing series of actions by concerned citizens in Colorado who seek to end coal-power in the state.[28]

Comanche 3 plant

Xcel is currently moving ahead with plans to build the 750-MW Comanche Generating Station Unit 3 in Pueblo, Colorado. Clean Energy Action and Citizens for Clean Air and Water in Pueblo filed a legal challenge against the plant. [29] After witnessing the public opposition to its Comanche 3 plant, Xcel executives have admitted that “they may never build another” coal-fired power plant.[30]

Climate settlement with New York state

In August 2008, in a landmark agreement, one of the America’s largest builders of coal-fired power plants was forced to give investors detailed warnings about the risks that climate change poses to its business. The agreement between New York’s attorney general, Andrew Cuomo, and Xcel Energy of Minneapolis, “could open a broad new front in efforts by environmental groups to pressure the energy industry into reducing emissions of the greenhouse gases that contribute to global warming,” said the New York Times.[31]

Although shareholder resolutions are gathering a pace against big oil and coal, “this really takes it another step, by making it a settlement agreement that should have an impact across the industry,” argued Dan Bakal, the director of electric power programs at Ceres, a coalition of investors and environmental groups.

According to the New York Times: “Cuomo subpoenaed Xcel and four other companies last September, seeking to determine whether their efforts to build new coal-fired power plants posed risks not disclosed to investors, like future lawsuits or higher costs to comply with possible regulations restricting carbon emissions.”[31]

“This landmark agreement sets a new industry wide precedent that will force companies to disclose the true financial risks that climate change poses to their investors,” Mr. Cuomo said in a statement.[32] “Coal-fired power plants can significantly contribute to global warming, and investors have the right to know all the associated risks.”

Under the agreement, Xcel had to disclose the financial risks of lawsuits and of federal or state court decisions that would affect its business. The company will also analyze and disclosed the “material financial risks” to itself associated with climate change.[31]

Plans to shut down Arapahoe Generating Station and Cameo Generating Station

In August 2008, Colorado regulators approved Xcel’s plan to shut down two coal plants: the Arapahoe Generating Station (Denver) and the Cameo Station (east of Grand Junction). According to Western Resource Advocates, "The utility’s decision to shut down the plants has been praised as the nation’s first voluntary effort to cut coal power generation in an attempt to reduce greenhouse gas emissions. In its decision to support Xcel’s plan, the Colorado Public Utilities Commission (PUC) cited public health benefits and shared concerns about carbon emissions as major selling-points in the company’s groundbreaking proposal. The verdict marks a collective effort to move the state and its utilities toward the carbon reduction goals outlined in Governor Bill Ritter’s Climate Action Plan."[33]

Xcel plans to replace the combined 229 MW of coal power with 850 MW of wind power and a 200 MW utility-scale solar power plant with storage capacity by 2015. Another key component of Xcel’s proposal, to build a 480 MW natural gas plant at the Arapahoe station, has been postponed pending approval by the Colorado PUC.[33]


Contact details

Xcel Energy
414 Nicollet Mall
Minneapolis, Minnesota 55401-1993
Website: http://www.xcelenergy.com General Xcel Energy website
Website: http://phx.corporate-ir.net/phoenix.zhtml?c=89458&p=irol-IRHome Xcel Energy Investor Information

Articles and resources

Related SourceWatch articles

References

  1. ↑ 1.0 1.1 Xcel website, accessed April 2008.
  2. ↑ ”Existing Electric Generating Units in the United States, 2005,” Energy Information Administration website, accessed April 2008.
  3. ↑ “2006 Triple Bottom Line”, Xcel website, accessed April 2008.
  4. ↑ “2007 Year End Summary”, Xcel press release, Jan. 30, 2008.
  5. ↑ 2008 Fortune 1000, Fortune website, accessed April 2008.
  6. ↑ BusinessWeek Company Insight Center, BusinessWeek website, accessed April 2008.
  7. ↑ CEO Compensation: #254 Richard C Kelly, Forbes.com, May 3, 2007.
  8. ↑ Center for Responsive Politics, "Xcel Energy: All Cycles", Opensecrets.org, accessed May 2008.
  9. ↑ 9.0 9.1 Xcel Energy, "Xcel Energy’s 2007 Political Contributions Report", Xcel Energy website, January 29, 2008.
  10. ↑ Center for Responsive Politics, "Xcel Energy: Client Summary, 2007", Opensecrets.org, accessed May 2008.
  11. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  12. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  13. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  14. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  15. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  16. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  17. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  18. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  19. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  20. ↑ "Xcel Energy", Center for Public Integrity, accessed September 2009.
  21. ↑ "Xcel franchise negotiations likely to drag into next year," Colorado Daily, June 3, 2009.
  22. ↑ Judith Mohling, "Peace Train: Convert Valmont plant to clean energy," Colorado Daily, July 11, 2009.
  23. ↑ Anne Butterfield, "Selfishly seeking clean energy," Daily Camera, July 12, 2009.
  24. ↑ "Public packs Valmont power plant hearing," Colorado Daily, July 14, 2009.
  25. ↑ Bruce Finley, "Protesters want Colorado to 'stop clowning around' on clean air," Denver Post, November 19, 2009.
  26. ↑ Bruce Finley, "Air panel urged to deny pollution permit for Xcel coal plant," Denver Post, November 20, 2009.
  27. ↑ "Denver N30:Local Citizens ‘Die-in’ at Dept. of Public Health and Environment in Protest over Coal," It's Getting Hot in Here, November 30, 2009.
  28. ↑ "Local Citizens ‘Die-in’ at Xcel HQ in Coal Protest Group calls on Xcel to Keep Comanche 3 Closed and Produce 100% Renewable Electricity by 2020" Katie Clark, Colorado Indymedia, February 26, 2010
  29. ↑ "Colorado PUC and the Pueblo Coal Plant: Legal issues 2007-2006", Colorado Clean Energy Action.
  30. ↑ "Comanche Smokestack a Lightning Rod", Denver Post, November 20, 2007.
  31. ↑ 31.0 31.1 31.2 Nicholas Confessore, Xcel to Disclose Global Warming Risks,New York Times, August 27, 2008
  32. ↑ "Cuomo Reaches Landmark Agreement With Major Energy Company, Excel Energy, To Require Disclosure of Financial Risks of Climate Change to Investors", Media Release, August 27, 2008.
  33. ↑ 33.0 33.1 "Clean Energy Accomplishments," Western Resrouce Advocates, accessed April 2009

External resources

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