Xcel Energy (XEL) Risk Factor Changes

While we establish strategies and expectations related to climate change and other environmental matters, our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many…

If our regulators do not allow us to recover the costs incurred to comply with the mandates, it could have a material effect on our results of operations, financial condition or cash flows.

The utility industry has been the target of several attacks on operational systems and has seen an increased volume and sophistication of cybersecurity incidents from international activist organizations, other countr…

We rely on third-party contractors to perform operations, maintenance and construction work.

A significant disruption in supply could cause us to seek alternatives at potentially higher costs.

While we carry liability insurance, given an extreme event, damage amounts could exceed our coverage (as experienced with the Marshall Wildfire settlement in 2025) and negatively impact our results of operations, fina…

In recent years, wildfires have impacted the utility industry.

Our utilities have significant risks associated with wildfires.

The magnitude and timing of resource additions and changes in customer demand may not coincide with evolving customer preference for generation resources and end-uses, which introduces further uncertainty into long-te…

In addition, the long-term nature of both our planning processes and our asset lives are subject to risk.

Our utility operations, resource adequacy and system reliability are subject to long-term planning and project risks.

Generative Artificial Intelligence, such as large language models like ChatGPT, present a range of challenges and potential risks as we consider impacts to the business.

Adverse regulatory rulings (including changes in recovery mechanisms) or the imposition of additional regulations could negatively impact our results of operations, financial condition or cash flows.

Xcel Energy does not tolerate discrimination, violations of our Code of Conduct or other unacceptable behaviors.

We are exposed to risk of employee or third-party contractor fraud or misconduct.

Our employees, directors, third-party contractors, or suppliers may violate or be perceived to violate our Codes of Conduct, which could have an adverse effect on our reputation.

In addition, Xcel Energy cannot fully assure that its controls will be effective against all potential risks.

Due to the uncertainty involved in price movements and potential deviation from historical pricing, Xcel Energy is unable to fully assure that its risk management programs and procedures would be effective to protect…

We have programs in place to mitigate the physical and financial risks associated with wildfires; however, Xcel Energy’s wildfire mitigation initiatives may not be successful or effective in preventing or reducing wil…

•Increased costs due to aging infrastructure.

Emerging risks are considered and assigned as appropriate during the annual Board of Directors and committee evaluation process, resulting in updates to the committee charters and annual work plans.

The Audit Committee is responsible for reviewing the adequacy of the committees’ risk oversight and affirming appropriate aggregate oversight occurs.

The oversight, management and mitigation of risk is an integral and continuous part of the Board of Directors’ governance of Xcel Energy.

Management communicates regularly with the Board of Directors and key stakeholders regarding risk.

Management also identifies and analyzes risk through the business planning process, development of goals and establishment of key performance indicators, including identification of barriers to implementing Xcel Energ…

Management identifies and analyzes risks to determine materiality and other attributes such as timing, probability and controllability.

Xcel Energy maintains a robust compliance program and promotes a culture of compliance beginning with the tone at the top.

The Board of Directors is responsible for the oversight of material risk and maintaining an effective risk monitoring process.

Advancements in artificial intelligence and large language models may increase cybersecurity threats and operational risks.

Additional demand from a limited number of customers may increase our credit risk exposure and require incremental infrastructure investment.

Growth in large load customers, including data centers, may increase customer concentration, capital requirements and revenue variability risks.

Regulators may challenge rate increases due to increased customer affordability pressures.

We could suffer negative impacts to our reputation as a result of actual or perceived fraud, misconduct, legal or regulatory violations, violations of corporate policies, inappropriate use of social media, or other ac…

Actions of our employees, directors, third-party contractors or suppliers could expose us to reputational risks.

Additionally, due to the uncertainty involved in price movements and potential deviation from historical pricing, our risk management programs may not be effective to protect against significant adverse market fluctua…

Our ability to reliably serve customer demand depends on the availability of sufficient generation and capacity resources.

•Inability to deliver energy across transmission facilities, including due to congestion, outages, extreme weather, physical or cyber events, delays in construction or upgrades, permitting or siting challenges, or int…

•Risks associated with regulatory requirements that may extend the operation of our coal facilities beyond planned retirement dates and require additional investments.

•Risks associated with failures of other business processes and systems.

•Risks associated with aging infrastructure.

•Risks of thermal runaway incidents associated with large battery storage facilities

•Risks associated with increased reliance on natural gas generation, including gas price volatility and supply constraints during extreme weather events.