Xcel Energy Environmental Policy

Summary

Xcel Energy will pursue environmental excellence and innovation in our corporate strategy and daily operations. We will set a cornerstone of outstanding environmental compliance and build upon that foundation to pursue industry-leading initiatives that enhance customer and shareholder value while demonstrating respect for our communities and concern for the environment. We will advance voluntary programs that go beyond current standards of environmental performance and demonstrate environmental leadership.

Applicability

This policy applies to Xcel Energy Inc., its wholly owned subsidiaries and affiliates ("Xcel Energy").

Content

Environmental Commitment and Stewardship

Commitment to the environment is one of our core values. Xcel Energy will conduct all of our operations in an environmentally responsible manner. We will:

• monitor our operations and, where appropriate, take steps to mitigate the environmental impact;
• strive to cost-effectively meet or exceed the requirements of environmental laws, regulations and permits and invest in environmentally sound technologies;
• seek to minimize corporate risk and liability arising from environmental issues;
• consider such issues as pollution prevention, energy efficiency, renewable energy, new technologies, emission reductions, resource conservation and wildlife protection in our business planning and decision-making processes; and
• support environmental research and development, as well as environmental projects and partnerships in our communities, through corporate giving and employee involvement.

Continuous Improvement

We will seek continuous improvement by maintaining and periodically auditing our environmental management system to commonly accepted management standards.

We will establish annual environmental performance improvement objectives and targets and periodically audit our performance.

We will report regularly on our environmental performance and management system to the Board of Directors.

Environmental Innovation

We will pursue proactive environmental initiatives and consider evolving technologies to enhance environmental performance and customer and shareholder value.

Communication

We will communicate information about our environmental policy, issues and initiatives; the nature of our operations and facilities and their environmental impact; and our environmental performance toward meeting objectives and targets on an annual and on-going basis.

We will work with our communities to engage in constructive dialogue and seek input concerning decisions or issues that may affect them.

Public Policy

We will advocate public policies that achieve environmental improvement, regulatory certainty and cost-effective energy for our customers.

Responsibility

Xcel Energy’s Chief Executive Officer has designated that all Governance Council members and Business Unit Presidents are responsible for complying with this policy. They will regularly review the policy to insure it remains current and appropriate to company operations, and that adequate resources and management systems are provided to implement it.

All employees are accountable for complying with this policy in performing their jobs.

Training

Xcel Energy employees will be trained and empowered to take individual responsibility for environmental activities related to their jobs.

Accountabilities

Person(s) accountable for various aspects of the policy:

Implementation, Communication and Compliance: Corporate Officers and Business Unit Presidents

Maintenance and Review: Vice President, Environmental

This policy was last reviewed on January 12, 2009.