Xcel Energy Inc
XEL
Utilities
2
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Xcel Energy operates a significant fleet of coal-fired power plants, which historically formed the backbone of its electricity generation. As of 2022, coal accounted for approximately 21% of the company's total generation mix. Key facilities include the Sherburne County Generating Plant (Sherco) in Minnesota and the Harrington Generating Station in Texas. The company manages extensive coal ash disposal sites associated with these operations.
In October 2022, Xcel Energy announced a goal to exit coal generation by 2030. The company began this transition by retiring the first of three coal units at its Sherco plant in January 2024. However, the remaining coal-fired assets continue to operate and contribute materially to the company's power supply and emissions profile during the managed decline period. The "Stranded Assets and Thermal Coal" analysis listed Xcel Energy among power companies with significant exposure to thermal coal assets slated for retirement.
Xcel Energy Inc. has accumulated a documented history of environmental violations and contamination incidents across its operating territories. In October 2023, the Minnesota Pollution Control Agency (MPCA) fined the company $14,008 for violations related to the storage of tritium-contaminated groundwater at its Monticello Nuclear Generating Plant. This incident is part of a broader pattern of regulatory enforcement. ViolationTracker documents additional penalties, including a $95,000 EPA settlement in 2009 and an $80,000 air pollution violation in Minnesota in 2004.
The company's legacy of environmental damage is further evidenced by coal operations. In 2002, the EPA issued a notice of violation to Xcel regarding its Pawnee coal-fired power station for violations of Prevention of Significant Deterioration (PSD) standards under the Clean Air Act. Furthermore, the company has faced legal action, including a 2013 court case where it defended its Sherco coal plant in Becker, Minnesota, against claims that its emissions were harming air quality in the nearby St. Croix National Scenic Riverway park. Fitch Ratings notes Xcel Energy has an elevated ESG Relevance Score of '4' for Exposure to Environmental Impacts, citing heightened risk from wildfires and the energy transition.
Research Sources
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