Texan by Nature is excited to recognize Xcel Energy as a 2024 TxN 20 honoree for their leadership in conservation and sustainability. Xcel Energy’s commitment to conservation, their projects, programs, best practices, and lessons learned are an example and inspiration for us all.

Honoree Name: Xcel Energy

Honoree Industry and Size: Energy, Mid-size

Company Overview:
Based in Minneapolis, MN, Xcel Energy powers millions of businesses and homes with electricity and natural gas across eight states, including Texas. Xcel Energy is committed to delivering safe, reliable, affordable, and clean energy to its customers while driving positive change for people and planet. Xcel Energy was the first major U.S. power company with a vision for providing 100% carbon-free electricity. The company has expanded on that commitment to become the first in the industry with comprehensive goals to reach net-zero emissions across the most significant ways customers use energy: electricity, natural gas use in buildings, and transportation. 

Xcel Energy South Plains Wind Park.

What is Xcel Energy’s conservation and sustainability mission and why is it important to your culture?
Xcel Energy’s mission is built for sustainability. Providing customers with safe, clean, reliable energy services at a competitive price is core to the company’s strategy. Sustainability at Xcel Energy focuses on four areas where the company can make the largest economic, environmental, and social impact:

• Reach Net Zero Responsibly: Achieve climate goals without compromising reliability or affordability. 
• Value People: Cultivate a diverse, best-in-class workforce, champion safety, inclusion and equity. 
• Operate with Integrity: Live our values, govern with discipline and respect human rights. 
• Strengthen Communities: Deliver exceptional service and partnership.
  

Xcel Energy’s sustainability mission reflects a commitment to operating responsibly and sustainably. Dedication to environmental stewardship, social equity, ethical practices, and community partnership fosters a culture of excellence and inclusivity.  

What steps is Xcel Energy taking to address global natural resource challenges, and how are these efforts integrated into your overall business strategy?
Sustainability is at the core of who Xcel Energy is. Everyday Xcel Energy’s works to deliver safe, clean, reliable, affordable energy to its customers while empowering its employees and communities. In 2018, Xcel Energy became the first U.S. energy provider with a vision for delivering 100% carbon-free electricity by 2050 and was the first to add a net-zero goal for natural gas use in buildings and zero-carbon transportation goal. These goals cover the three sectors that represent the most significant ways Xcel Energy customers use energy and all three of Xcel Energy’s emissions scopes. 

• Electricity: 80% lower carbon emissions by 2030 and zero carbon emissions by 2050 (from 2005 levels). 
• Natural Gas Service: 25% lower greenhouse gas emissions by 2030 and net-zero gas service by 2050 (from 2020 levels). 
• Transportation: one in five vehicles are electric vehicles (EVs) in our states by 2030 and zero-carbon fuel is accessible within 1 mile by 2050. 

Through 2023, Xcel Energy reduced carbon emissions from electricity by an estimated 54% from 2005 levels and remains on track to achieve 80% carbon reduction by the end of 2030. Xcel Energy’s net-zero natural gas vision covers the full natural gas value chain: upstream production, distribution, and customer emissions. Xcel Energy strives to purchase only certified low-emission natural gas from suppliers, has reduced methane emissions from venting pipelines during scheduled construction projects by an average of 93% over the past five years, and as of 2022, 75% of Xcel Energy’s customers heated their homes and businesses with natural gas, with individual customers reducing their gas use more than 20% since 2000 through more efficient appliances, better building practices and Xcel Energy’s extensive portfolio of conservation programs. In 2023, Xcel Energy counted over 143,000 EVs on the road in its service areas, a 50% increase over 2022, and has 300 zero-emissions vehicles in its fleet.

Xcel Energy employees at the Xcel Day of Service volunteer event.

Who at Xcel Energy is leading your conservation and sustainability efforts and what are some examples of employee engagement in conservation and sustainability at your company?
None of Xcel Energy’s goals would be achievable without its best-in-class workforce. As sustainability is both a core value and strategic pillar at Xcel Energy, the entire, 11,300 full-time-employee organization supports sustainability and conservation. While the entire organization supports sustainability, teams at Xcel Energy’s four operating companies implement strategies tied to Xcel Energy’s sustainability initiatives. They frequently engage in their respective state regulatory processes with public utilities commissions (PUC) and policy processes with state and local governments to implement strategic priorities.

In 2000, Xcel Energy instituted oversight of environmental performance by its board of directors and was among the first U.S. energy providers to tie carbon reduction to executive compensation. The Operations, Nuclear, Environmental and Safety (ONES) committee of the board of directors oversees Xcel Energy’s carbon reduction strategy and the Governance, Compensation, and Nominating committee of the board of directors oversees sustainability. Bob Frenzel, the chairman, president, and CEO leads all aspects of Xcel Energy’s sustainability platform. Frank Prager, the chief sustainability officer, reports to the CEO, and is responsible for sustainability policies, including management of climate-related risks and regular discussions with the board, and works with teams across business areas that are accountable for addressing related risks and opportunities. 

Through the company and the Xcel Energy Foundation, the Xcel Energy workforce donates millions of dollars and volunteers thousands of hours every year, supporting causes meaningful to them while addressing needs unique to the places where they live and work. In 2023, the Xcel Energy Foundation donated $750,000 to 64 organizations that support environmental sustainability, and 30% of Xcel Energy’s employees volunteered at a local community or nonprofit organization for a total of 93,000 volunteer hours and an economic impact of $2.9 million. In Texas, this included environmental sustainability grants to Six Pack Outdoors and Slaton Railroad Heritage Association. 

Annually, Xcel Energy employees, retirees, family members, and friends band together for Day of Service, a day when Xcel Energy volunteers with various nonprofit organizations across the company’s service areas. 2023 marked the 13th year of Xcel Energy’s Day of Service, and over 100 nonprofits were served across the company’s footprint. 

Examples of Xcel Energy sustainability and conservation programs include: 

• Lesser Prairie Chicken Conservation: Rangelands in Xcel Energy’s Colorado, New Mexico, and Texas service areas provide important habitat for the lesser prairie chicken. Since 2014, Xcel Energy has spent more than $16 million on minimizing and mitigating impacts and improving habitat for these birds. 
• Restoring the “American Serengeti:” Southern Plains Land Trust (SPLT) was the benefactor of one of Xcel Energy’s high-quality carbon offset purchases. SPLT is focused on protecting and restoring grasslands for the benefit of native prairie flora and fauna. It is building a climate-resilient future for this endangered ecosystem, which supports species such as bison, pronghorn, and prairie dogs. Not only does the organization protect this land in perpetuity, but it also works to heal it after decades of intensive agriculture. By restoring streams, letting bison roam, removing dangerous fences, and letting the grass recover from overgrazing, SPLT can turn the shortgrass prairie into a “major carbon sponge.” “Xcel Energy’s purchase of voluntary carbon offset credits helps us to make further strides for prairie wildlife,” said SPLT assistant director Judith Westveer. “We appreciate our partnership with Xcel Energy as we work to bring back the American Serengeti across a vast prairie wilderness.” 

Kathya Saenz, Xcel Energy Supply Engineer.

What conservation and sustainability programs and projects does Xcel Energy lead and participate in?
Other efforts in Xcel Energy’s sustainability and conservation strategy include: 

• Transitioning out of coal: Xcel Energy will retire or repower all remaining coal-fueled plants by the end of 2030, which will lower or eliminate air emissions, reduce carbon dioxide emissions, cut waste, and reduce water consumption. 
• Biodiversity program: Xcel Energy partners with local, state, and federal wildlife agencies and advisory groups to determine how best to support conservation efforts, preserve habitats, and minimize risks and impacts to wildlife. This includes protecting and restoring lands, developing over 50 pollinator habitats spanning 2,300 acres, and retrofitting equipment to protect avian species. Through Xcel Energy’s partnership with the Raptor Resource Project, 444 peregrine falcons, 48 bald eaglets, and 4 American kestrels have been born at Xcel Energy facilities since 1989. 
• Waste-to-Energy Plants: Xcel Energy operates three waste-to-energy plants. Waste-to-energy plants divert municipal waste from landfills and converts it to combustible material used to fuel power plants. In 2023, Xcel Energy diverted 77% of waste from landfills in Minnesota. 
• Water goal: Xcel Energy’s water goal is to reduce water consumption from the electricity provided to customers by 70% by 2030 from 2005 levels. Since 2005, Xcel Energy has reduced water consumption by 27%. 
• Material Recycling: Xcel Energy has a robust recycling program, recycling 25,815 tons of material in 2023. 
• Coal Ash Management: coal-fueled plants produce coal combustion residuals, known as coal ash. All production of coal ash will wind down as Xcel Energy’s remaining coal operations are retired. Coal ash produced is reused for beneficial purposes to save natural resources. In 2023, just over 25% of coal ash Xcel Energy produced was reused for engineered fill material, concrete, roofing shingles and other uses. Two plants in Texas were able to reuse 100% of the coal ash produced.  
• Restricting Product Use: Xcel Energy maintains a list of targeted ingredients of highly regulated substances and emerging contaminants of concern with potential environmental or health impacts. Xcel Energy works to restrict their use, minimize waste generation, implement compliance programs for their use, and train employees on proper storage. 
• Waste disposition: Xcel Energy closely monitors and regulates waste generation. In 2023, 8% of non-hazardous waste was diverted from disposal, and 87% of PCB-related waste was either decontaminated or detoxified to remove PCBs and then recycled. 

“We’re absolutely delighted to be honored by Texan by Nature. This accolade is a testament to the hard work and dedication of our team, who are not just our employees but also our friends, neighbors, and relatives in our Panhandle and South Plains communities. Together, we will continue to innovate and lead the way in sustainable energy practices.”

– Adrian Rodriguez, President – New Mexico and Texas, Xcel Energy

What strategies does Xcel Energy use to educate and raise awareness among employees, customers, and stakeholders about the importance of conservation and sustainability?
Xcel Energy has many strategies to educate stakeholders about conservation and sustainability.

Xcel Energy publishes a publicly available, annual sustainability report. This report plays a crucial role in providing a comprehensive view of Xcel Energy’s progress in sustainable practices and strategies as well as its impact on the environment and society. The report highlights industry best practices, showcases progress, outlines programs that work with communities and stakeholders, and reaffirms the company’s sustainability strategy.

Xcel Energy offers educational outreach programs for residential customers, including discounted LED bulbs, rebates on energy efficient appliances and outdoor electric equipment, fridge recycling, and insulation & air sealing rebates. The company also provides load management programs and lighting efficiency rebates for businesses to encourage energy conservation and efficiency. These programs are part of a broader portfolio designed to help customers save energy and lower their energy bills in various ways. By educating customers about energy efficiency, Xcel Energy can decrease the energy demand and decrease emissions.

Xcel Energy leverages sponsorships and partnerships to promote participation in its energy efficiency and renewable programs. By attending local community and sporting events, Xcel Energy facilitates one-on-one interactions that give customers a better understanding of how Xcel Energy can help them save money on their energy bills and take meaningful action for sustainability.

In states like Texas, Xcel Energy offers the Xcel Energy School Education program, a fun and informative program for primary school teachers, their students, and families that reinforces energy concepts from a STEM curriculum and teaches lifelong lessons on energy and water efficiency. The program encourages students to think about energy efficiency, talk with their families about ways to use energy wisely, and provides a Take Action Kit full of energy and water saving devices to install at home. 

Can you share specific examples of successful partnerships or innovative collaborations Xcel Energy has formed with other organizations to enhance sustainability and conservation outcomes?
Xcel Energy expanded and upgraded a substation and power lines to meet growing demand in the southern part of Amarillo where the Amarillo Economic Development Corporation has attracted several new industries.

“Low electricity rates and high reliability are big draws for companies choosing to relocate or expand in Amarillo,” Carter said. “The investments Xcel Energy has made in substation and distribution infrastructure have been critical to our efforts to attract 3,000 new jobs and over $2 billion in capital investment over the past two years.” In the South Georgia Business Park alone, the Amarillo EDC has attracted $200 million in capital investments responsible for 350 new jobs at the new Austin Hose, Cacique Cheese and Caviness Beef facilities, Carter said.

Xcel Energy and Ford Pro are joining forces to accelerate EV adoption and enhance charging infrastructure for business fleets. Their 30×30 initiative aims to install 30,000 EV charging ports by 2030, simplifying the transition by reducing costs and easing installation across Xcel Energy’s U.S. territories. Xcel Energy will manage the installation for qualifying business customers, with Ford Pro providing equipment and ongoing support. The collaboration also includes analyzing vehicle telematics to encourage off-peak charging, reducing grid emissions and potentially lowering costs. This partnership serves as a model for energy and utility companies to meet commercial EV infrastructure demands.

“Ford Pro and Xcel Energy are pioneering a whole new way to scale EV charging infrastructure,” said Amanda Rome, executive vice president; group president, utilities; and chief customer officer at Xcel Energy. “Ford Pro is a trusted provider in fleet electrification, scaling charging infrastructure for fleets with smart vehicle, charging and software solutions. And Xcel Energy is a trusted advisor in transportation electrification, providing clean energy, infrastructure and innovative solutions for customers’ homes, businesses and EVs. Together, we are committed to making a real impact on the future of electrification in America.”

“We know electrification can be complex for businesses,” said Ted Cannis, Ford Pro CEO. “We’re focused on helping them make that transition at the right time in the right way that’s best for their business. We know that may require new ways of working to encourage and support adoption. We’re honored to work with Xcel Energy — together we’re creating a new model to help eliminate barriers for businesses in their electrification journey.” 

Starting in 2024, 30×30 will be available in Colorado and Wisconsin, with expansion over the next six years to Michigan, Minnesota, New Mexico, North Dakota, South Dakota, and Texas (pending regulatory approvals). 

Xcel Energy and Gundersen Health System are partnering to create a pioneering 100% renewable energy healthcare campus in Onalaska, Wisconsin. The project, part of Xcel Energy’s EMPOWER Resiliency program, will feature an all-renewable energy microgrid, integrating a new battery storage system with existing solar panels and energy from the La Crosse County Landfill. This collaboration aims to enhance sustainability and ensure uninterrupted power during outages.

“Safe and reliable power delivery to our customers is at the heart of Xcel Energy’s business,” said Karl Hoesly, president, Xcel Energy–Wisconsin and Michigan. “We recognize that some of our major commercial and industrial customers have exceptional resilience needs to maintain their operations. With the EMPOWER Resiliency program, we are proud to help Gundersen achieve their resiliency, sustainability and other energy-related goals.”

“We are excited to be partnering with Xcel Energy on this innovative project. This is something rarely seen in health care. It’s happening right here in Onalaska on a campus that is an innovation center for Gundersen,” says Alan Eber, Director of Gundersen Envision, the health system’s sustainability program. “This is a groundbreaking chance for a utility and a health system to come together to lower costs and create a more resilient campus for patient and community care.” The project is expected to be completed in 2025.

How does Xcel Energy quantify investment and return on conservation and sustainability?
At Xcel Energy, return on sustainability extends beyond financial metrics. Strategies and key initiatives are crafted and executed to strike a balance among reliability, resiliency, affordability and environmental impact. Today, 30% of executives’ incentive pay is tied to achieving short-term carbon reduction goals. Annual incentives are based on the corporate scorecard, which aligns with sustainability issues, including safety, reliability, customer satisfaction, wind generation availability, and DEI progress. Xcel Energy’s commitment to these initiatives is also rooted in enhancing the well-being of its communities, preserving natural resources, and ensuring a resilient future. 

Communities: By investing in energy-efficient technologies and sustainable practices, Xcel Energy reduces pollution and improves air and water quality, leading to healthier communities. Company programs that educate and empower individuals and businesses to adopt sustainable habits foster a culture of responsibility and stewardship. Xcel Energy’s sustainable investments also create jobs, stimulating local economies. These impacts are measured by carbon emissions reduction (54% from 2005 levels), community investments ($15.3 million in 2023), renewable energy program participation (300,000 customers in 2023), and workforce (11,311 full-time employees in 2023). 

Natural Resources: By prioritizing renewable energy sources and responsible resource management, Xcel Energy continues to reduce its carbon footprint year-over-year, mitigating the effects of climate change. Protecting biodiversity, conserving water, and maintaining healthy ecosystems ensures that natural resources are available for future generations. These efforts are measured by progress toward carbon-free electricity (54% carbon emissions reduction from 2005 levels), progress toward net-zero gas service (individual customers reducing their gas use by more than 20% since 2000), progress toward transportation goals (143,000 EVs on the road in Xcel Energy service areas and 300 zero-emissions vehicles Xcel Energy’s fleet), and reduced water consumption (27% reduction from 2005). 

Futures Planning: Xcel Energy’s investments in sustainability are designed to future-proof its operations against environmental risks and regulatory changes. By fostering innovation and adopting forward-thinking practices, Xcel Energy positioned itself as a leader in the energy sector. This proactive approach ensures long-term viability and competitiveness, aligning Xcel Energy’s business objectives with global sustainability goals. This is measured by alignment to the Paris Agreement, a scenario to limit global warming to 1.5°C by 2050, of which Xcel Energy is aligned, and compound annual growth rate of capital forecast (~9.0% expected rate base CAGR 2023-2028). 

How do you see the future of conservation and sustainability evolving, and what role will Xcel Energy play in that progress?
The future of conservation and sustainability is poised for significant advancements. Xcel Energy sees the integration of renewable energy sources, increased energy efficiency, and the adoption of innovative new technologies as critical components of a sustainable future. 

Xcel Energy believes collaboration with policymakers is essential to create and implement effective environmental policies that shape the energy industry. By working closely with local, state, and federal governments, Xcel Energy contributes to the development of regulations and incentives that encourage the adoption of clean energy solutions. The company’s involvement ensures these policies are both practical and ambitious, driving meaningful progress toward sustainability. 

Xcel Energy has been a first mover in setting and achieving robust climate goals, such as its 2030 and 2050 carbon-free and net-zero visions. The company backs its vision with investments in renewables, modernizing infrastructure, and battery storage which demonstrate its commitment to achieving its vision. By setting and attaining ambitious goals, Xcel Energy leads by example, showing that it is possible to balance economic growth, customer affordability, and environmental responsibility. 

While the industry has made significant strides toward decarbonization, the final 20% required to achieve a carbon-free future presents unique challenges that have yet to be fully addressed or become commercially viable. Xcel Energy is invested in the research and development of emerging technologies that hold promise for this critical phase. By partnering with research institutions, technology developers, and other industry stakeholders, the company can foster innovation and accelerate the path to commercial viability for these advanced solutions. These actions ensure that Xcel Energy is not only part of the conversation but at the forefront of the action needed to achieve a truly sustainable and carbon-free energy landscape. 

What is the one lesson that Xcel Energy has learned from your conservation and sustainability efforts that others can take back and think about applying within their own space?
Collaboration and knowledge sharing are powerful tools for driving sustainability. By participating in industry, environmental, business, community, and policymaking groups, Xcel Energy has adopted and refined best practices more efficiently, avoided common pitfalls, and leveraged proven strategies. These collaborations create a sense of community and collective responsibility among a wide array of stakeholders, driving broader progress toward sustainability goals. 

Why is Texas an important home or base of operations for Xcel Energy?
Xcel Energy serves 280,000 electric customers in Texas, but its involvement extends beyond providing energy. Texas is home to 1,536 Xcel Energy employees who embody the generosity and openness the state is known for. Xcel Energy is dedicated to supporting its Panhandle and South Plains community, volunteering over 6,000 hours with over 100 Texan nonprofits, spending over $1 million with local Texan suppliers, and investing over $1 million in the community. Texas also offers strategic importance to Xcel Energy through the state’s abundant solar capacity and innovation. At Xcel Energy, Texas is more than a market. It is a community, and a spirit, that leads our efforts across all eight states. 

Find out more about Xcel Energy’s conservation and sustainability efforts here.