Xcel Energy CEO Interview: Richard Kelly

From an interview with Richard Elly, CEO of Xcel Energy, posted on Yahoo! Finance:

TWST: Would you begin with an overview of Xcel Energy and a picture of the things that the company is doing at the present time?

Mr. Kelly: Xcel Energy is the fifth-largest gas and electric utility in the United States. We serve eight states, with the largest ones being Minnesota, Colorado, Texas and a substantial portion of western Wisconsin, and we provide service to approximately 3.4 million electric and 1.9 million natural gas customers. We are a fully integrated, regulated utility, and our strategy is to grow the core, which means we are going to stay in the regulated side of the business. Our goal is to be an environmental leader, which I believe we have accomplished. We've done a lot of good work on the environmental side.

TWST: What are the most significant trends or developments that you anticipate in your markets over the next two to three years?

Mr. Kelly: One of the things that I worry about most for Xcel Energy is public policy and how that will evolve. I'm specifically referring to some kind of energy bill or legislation on carbon emissions and global warming, and the impact that's going to have on all utilities, including Xcel Energy. It is for this reason we've worked on our environmental strategy for the past several years. For example, strong demand-side management, large renewable energy and carbon reduction are all aspects we have worked on so that we are prepared for whatever legislation comes out of Washington, D.C. Alternatively, if nothing comes from the federal government, then at a minimum we would be in line with meeting the states' requirements.

TWST: What are the growth opportunities that you see for this company?

Mr. Kelly: The major growth opportunity is going to be investment in our environmental leadership strategy. Investment in wind, solar and biomass present great opportunities for us. We are blessed with the geography in the middle part of the United States, where there is abundant wind. And as you get farther down south, obviously there is abundant solar, and in the Midwest we have a lot of opportunities for biomass. So while the customer growth might be less going forward, as people become more conscious of energy efficiency, we'll still be able to maintain our growth because of these opportunities we have on the environmental side.