11.	Earnings Per Share

Basic earnings per share (EPS) was computed by dividing the earnings available to Xcel Energy Inc.'s common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS was computed by dividing the earnings available to Xcel Energy Inc.'s common shareholders by the diluted weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents), such as share-based compensation awards were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.'s diluted EPS is calculated based on the treasury stock method.

Share-Based Compensation

Common stock equivalents related to share-based compensation causing dilutive impact to EPS currently consist of 401(k) equity awards. Stock equivalent units granted to Xcel Energy Inc.'s Board of Directors are included in common shares outstanding upon grant date as there is no further service, performance or market condition associated with these awards. Restricted stock, granted to settle amounts due certain employees under the Xcel Energy Inc. Executive Annual Incentive Award Plan, is included in common shares outstanding when granted, pending remaining service conditions.

Share-based compensation arrangements for which there is currently no dilutive impact to EPS include the following:

Restricted stock unit equity awards subject to a performance condition; included in common shares outstanding when all necessary conditions for settlement have been satisfied by the end of the reporting period.

Performance share plan liability awards subject to a performance condition; any portions settled in shares are included in common shares outstanding upon settlement.

The dilutive impact of common stock equivalents affecting EPS was as follows:

	Three Months Ended June 30, 2012						Three Months Ended June 30, 2011
(Amounts in thousands, except per share data)	Income		Shares		Per Share Amount		Income			Shares		Per Share Amount
Net income	$	183,060					$	158,762
Less: Dividend requirements on preferred stock		-						(1,060	)
Basic earnings per share:
Earnings available to common shareholders		183,060		487,717	$	0.38		157,702			484,918	$	0.33
Effect of dilutive securities:
401(k) equity awards		-		300				-			323
Diluted earnings per share:
Earnings available to common shareholders	$	183,060		488,017	$	0.38	$	157,702			485,241	$	0.33

	Six Months Ended June 30, 2012						Six Months Ended June 30, 2011
(Amounts in thousands, except per share data)	Income		Shares		Per Share Amount		Income			Shares		Per Share Amount
Net income	$	366,953					$	362,331
Less: Dividend requirements on preferred stock		-						(2,120	)
Basic earnings per share:
Earnings available to common shareholders		366,953		487,538	$	0.75		360,211			484,283	$	0.74
Effect of dilutive securities:
401(k) equity awards		-		468				-			492
Diluted earnings per share:
Earnings available to common shareholders	$	366,953		488,006	$	0.75	$	360,211			484,775	$	0.74

For the three and six months ended June 30, 2011, Xcel Energy Inc. had approximately 2.4 million and 2.5 million weighted average stock options outstanding, respectively, that were antidilutive, and therefore, excluded from the EPS calculation. No stock options were outstanding at March 31, 2012 or June 30, 2012.

Share Repurchase - In February 2012, Xcel Energy Inc.'s Board of Directors approved the repurchase of up to 0.7 million shares of common stock for the issuance of shares in connection with the vesting of awards under the Xcel Energy Inc. 2005 Long-Term Incentive Plan. In March 2012, Xcel Energy Inc. repurchased the approved 0.7 million shares in the open market at an average price of $26.42 per share. In addition, approximately 0.9 million shares of common stock were purchased in February 2012 through an agent independent of Xcel Energy to fulfill requirements for the employer match pursuant to the Xcel Energy 401(k) Savings Plan; the New Century Energies, Inc. Employees' Savings and Stock Ownership Plan for Bargaining Unit Employees and Former Non-Bargaining Unit Employees; and the New Century Energies, Inc. Employee Investment Plan for Bargaining Unit Employees and Non-Bargaining Employees.