Xcel Energy (XEL) risk factors, FY2025 10-K

Xcel Energy's FY2025 10-K, filed Feb 25, 2026, lists 36 risk factors in 3 groups. Against the prior year's 36: 4 new, 4 dropped, 8 substantially reworded.

Risk factors listed
363 groups
New this year
4vs 36 last year
Dropped
4since the prior 10-K
Substantially reworded
8of those kept
Section length
7k wordsItem 1A

What the changes say

  • Xcel Energy faces new pressures from rising AI-driven cybersecurity threats and surging data center power demands.
  • Wildfire risks and PHMSA natural gas pipeline compliance rules received heightened scrutiny.
  • Cost recovery challenges intensified amid customer affordability pressures.

What changed since the prior 10-K

New

  • NewOperational Risks

    Public perception often does not distinguish between pass through commodity costs and base rates. High commodity prices that are passed through to customer bills could impact our ability to recover costs for other improvements and operations

    Public confusion between pass-through commodity costs and base rates could impair our ability to recover operating improvement costs.

  • NewOperational Risks

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

    Misconduct by employees, contractors, or suppliers could damage our reputation, invite litigation, and increase regulatory oversight.

  • NewFinancial Risks

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

    Large load growth from data centers increases credit risk, capital requirements, and revenue variability if projections or cost allocations fail.

  • NewMacroeconomic Risks

    Advancements in artificial intelligence and large language models may increase cybersecurity threats and operational risks. Threat actors may use artificial intelligence to enhance their attacks, increasing the frequency, sophistication and potential impact of cyber incidents affecting our IT and OT environment

    Threat actors using AI could increase cyber attacks on our IT and OT environments, disrupting fuel supply chains.

Dropped

  • Dropped

    Oversight of Risk and Related Processes

    Board of Directors oversight of material risk and compliance culture.

  • Dropped

    The Audit Committee is responsible for reviewing the adequacy of the committees’ risk oversight and affirming appropriate aggregate oversight occurs. Committees regularly report on their oversight activities and certain risk issues may be brought to the full Board of Directors for consideration when deemed appropriate

    Audit Committee review of risk oversight and emerging risks.

  • DroppedOperational 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 against all significant adverse market deviations

  • DroppedOperational Risks

    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

Reworded

  • 64% rewrittenOperational Risks

    Our operations use third-party contractors in addition to employees to perform periodic and ongoing work

    Added vendor concentration risk from limited suppliers of key assets critical to long-term planning.

  • 56% rewrittenFinancial Risks

    Changes in the long-term cost-effectiveness or to the operating conditions of our assets may result in early retirements of utility facilities. While regulation typically provides cost recovery for these types of changes, there is no assurance that regulators would allow full recovery of all remaining costs

    Added risks that regulators may challenge rate increases due to customer affordability pressures and state-level public policy developments.

  • 56% rewrittenOperational Risks

    Our utilities have significant risks associated with wildfires

    Added that current wildfire mitigation initiatives may not be effective in preventing or reducing ignitions and losses.

    Was: Our utilities have physical and financial risks associated with wildfires

  • 40% rewrittenMacroeconomic Risks

    A cybersecurity incident or security breach could have a material effect on our business

    Retained core cybersecurity risks regarding operational technology, control systems, and sensitive customer data.

  • 30% rewrittenOperational Risks

    The occurrence of these events, if not fully covered by insurance, could have a material effect on our financial condition, results of operations and cash flows as well as potential reputational impact

    Added specific compliance costs and PHMSA regulatory risks related to the operation and maintenance of natural gas infrastructure.

  • 28% rewrittenOperational Risks

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

    Expanded resource adequacy risks to include resource retirements, accreditation, extreme weather, and transmission delivery delays.

    Was: Our utility operations are subject to long-term planning and project risks

  • 23% rewrittenMacroeconomic Risks

    The steps Xcel Energy has taken to date to reduce GHG emissions, including energy efficiency measures, adding renewable generation and retiring or converting coal plants to natural gas, occurred under state-endorsed resource plans, renewable energy standards and other state policies

    Tightened wording regarding the full recovery of compliance mandate costs from regulators.

  • 20% rewrittenOperational Risks

    We are subject to commodity risks and other risks associated with energy markets and energy production

    Retained commodity and fuel cost recovery risks impacting customer demand and bad debt expense.

All 36 risk factors

Headings as the filing states them, in filing order.

Operational Risks

  1. 01Our natural gas and electric generation/transmission and distribution operations involve numerous risks that may result in accidents and other operating risks and costs
  2. 02The occurrence of these events, if not fully covered by insurance, could have a material effect on our financial condition, results of operations and cash flows as well as potential reputational impact30% rewritten
  3. 03Our utility operations, resource adequacy and system reliability are subject to long-term planning and project risks28% rewritten
  4. 04Our utilities are highly dependent on suppliers to deliver components in accordance with short and long-term project schedules
  5. 05We are subject to physical and financial risks associated with climate change and other weather, natural disaster and resource depletion impacts
  6. 06Our utilities have significant risks associated with wildfires56% rewritten
  7. 07We are subject to commodity risks and other risks associated with energy markets and energy production20% rewritten
  8. 08Public perception often does not distinguish between pass through commodity costs and base rates. High commodity prices that are passed through to customer bills could impact our ability to recover costs for other improvements and operationsNew
  9. 09Failure to attract and retain a qualified workforce could have an adverse effect on operations
  10. 10Our operations use third-party contractors in addition to employees to perform periodic and ongoing work64% rewritten
  11. 11Actions of our employees, directors, third-party contractors or suppliers could expose us to reputational risksNew
  12. 12Our subsidiary, NSP-Minnesota, is subject to the risks of nuclear generation

Financial Risks

  1. 13Our profitability depends on the ability of our utility subsidiaries to recover their costs and changes in regulation may impair the ability of our utility subsidiaries to recover costs from their customers
  2. 14We are subject to comprehensive regulation by federal and state utility regulatory agencies, including siting and construction of facilities, customer service and the rates that we can charge customers
  3. 15There can also be no assurance that our regulatory commissions will judge all the costs of our utility subsidiaries to be prudent, which could result in disallowances, or that the regulatory process will always result in rates that will produce full recovery
  4. 16Changes in the long-term cost-effectiveness or to the operating conditions of our assets may result in early retirements of utility facilities. While regulation typically provides cost recovery for these types of changes, there is no assurance that regulators would allow full recovery of all remaining costs56% rewritten
  5. 17Growth in large load customers, including data centers, may increase customer concentration, capital requirements and revenue variability risksNew
  6. 18Any reductions in our credit ratings could increase our financing costs and the cost of maintaining certain contractual relationships
  7. 19We are subject to capital market and interest rate risks
  8. 20Credit risk includes the risk that our customers will not pay their bills, which may lead to a reduction in our cash flows and liquidity and an increase in bad debt expense. Credit risk is comprised of numerous factors including the price of products and services provided, the overall economy and unemployment rates
  9. 21Increasing costs of our defined benefit retirement plans and employee benefits may adversely affect our results of operations, financial condition or cash flows
  10. 22Increasing costs associated with health care plans may adversely affect our results of operations
  11. 23We must rely on cash from our subsidiaries to make dividend payments
  12. 24Federal tax law may significantly impact our business

Macroeconomic Risks

  1. 25Economic conditions impact our business
  2. 26We face risks related to health epidemics and other outbreaks, which may have a material effect on our financial condition, results of operations and cash flows
  3. 27Operations could be impacted by war, terrorism or other events
  4. 28A cybersecurity incident or security breach could have a material effect on our business40% rewritten
  5. 29Advancements in artificial intelligence and large language models may increase cybersecurity threats and operational risks. Threat actors may use artificial intelligence to enhance their attacks, increasing the frequency, sophistication and potential impact of cyber incidents affecting our IT and OT environmentNew
  6. 30We maintain security measures to protect our information technology and control systems, network infrastructure and other assets. However, these assets and the information they process may be vulnerable to cybersecurity incidents, including asset failure or unauthorized access to assets or information
  7. 31Our operating results may fluctuate on a seasonal and quarterly basis and can be adversely affected by milder weather
  8. 32Increased risks of regulatory penalties could negatively impact our business
  9. 33Legislative and regulatory responses related to climate change may create financial risk as our facilities may be subject to additional regulation at either the state or federal level in the future. International agreements could additionally lead to future federal or state regulations
  10. 34The steps Xcel Energy has taken to date to reduce GHG emissions, including energy efficiency measures, adding renewable generation and retiring or converting coal plants to natural gas, occurred under state-endorsed resource plans, renewable energy standards and other state policies23% rewritten
  11. 35We are subject to environmental laws and regulations, with which compliance could be difficult and costly
  12. 36Changes in environmental policies and regulations or regulatory decisions may result in early retirements of our operational facilities. While regulation typically provides relief for these types of changes, there is no assurance that regulators would allow full recovery of all remaining costs

Other Xcel Energy 10-Ks

  • FY2024 10-K risk factors
    36 risks

    Xcel Energy faces operational and safety hazards from natural gas and electric networks, plus wildfire and climate risks. Regulatory cost recovery, environmental rules, and capital market access drive financial performance. Cybersecurity threats, nuclear operations, and supply chain dependencies also affect results.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.