Dear Shareholders: As your new chairman, president and CEO,  I am honored to lead Xcel Energy and  will say without hesitation that this is the  best energy company in the nation. Our  strong financial performance, operational  excellence, customer focus and proactive  environmental efforts position us for long-term success. That was evident in 2011, an excellent year for us.  We met or exceeded our financial goals,  achieved our system reliability targets  despite challenges and hit a record high  in customer satisfaction. We continued to  take advantage of investment opportunities  that will benefit customers, ensure our  environmental leadership position and result in lasting value for you. Building on that strong momentum, we are  energized  for the challenges ahead.  Ongoing earnings per share were $1.72 in  2011, compared with $1.62 in 2010. That  means we achieved the upper half of our  guidance range, making 2011 the seventh  consecutive year in which we have met or  exceeded our earnings guidance. Ongoing earnings increased primarily due  to higher electric margins as a result of  warmer-than-normal summer weather  Meeting our financial goals  XCEL ENERGY  ! . . 5 ! , 2 % 0 / 2 4 s BEN FOWKE  CHAIRMAN, PRESIDENT AND CEO