QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Commission File Number) | (I.R.S. Employer Identification No.) |
(Registrant, State of Incorporation or Organization, Address of Principal Executive Officers and Telephone Number) | ||
Xcel Energy Inc. | ||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | |||
Emerging growth company |
Class | Oct. 17, 2019 | |
Common Stock, $2.50 par value |
PART I | FINANCIAL INFORMATION | ||
Item 1 — | |||
Item 2 — | |||
Item 3 — | |||
Item 4 — | |||
PART II | OTHER INFORMATION | ||
Item 1 — | |||
Item 1A — | |||
Item 2 — | |||
Item 6 — | |||
Certifications Pursuant to Section 302 | |||
Certifications Pursuant to Section 906 |
Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former) | |
NSP-Minnesota | Northern States Power Company, a Minnesota corporation |
NSP System | The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota |
NSP-Wisconsin | Northern States Power Company, a Wisconsin corporation |
PSCo | Public Service Company of Colorado |
SPS | Southwestern Public Service Co. |
Utility subsidiaries | NSP-Minnesota, NSP-Wisconsin, PSCo and SPS |
WGI | West Gas Interstate |
WYCO | WYCO Development, LLC |
Xcel Energy | Xcel Energy Inc. and its subsidiaries |
Federal and State Regulatory Agencies | |
CEC | Colorado Energy Consumers |
CPUC | Colorado Public Utilities Commission |
D.C. Circuit | United States Court of Appeals for the District of Columbia Circuit |
DOC | Department of Commerce |
EPA | United States Environmental Protection Agency |
FEA | Federal Executive Agencies |
FERC | Federal Energy Regulatory Commission |
IRS | Internal Revenue Service |
MPUC | Minnesota Public Utilities Commission |
NMPRC | New Mexico Public Regulation Commission |
NRC | Nuclear Regulatory Commission |
OAG | Minnesota Office of the Attorney General |
OCC | Office of Consumer Counsel |
PSCW | Public Service Commission of Wisconsin |
PUCT | Public Utility Commission of Texas |
SEC | Securities and Exchange Commission |
Electric, Purchased Gas and Resource Adjustment Clauses | |
DSM | Demand side management |
FCA | Fuel clause adjustment |
FPPCAC | Fuel and Purchased Power Cost Adjustment Clause |
GUIC | Gas utility infrastructure cost rider |
RES | Renewable energy standard |
TCR | Transmission cost recovery adjustment |
Other | |
ACE | Affordable Clean Energy |
AFUDC | Allowance for funds used during construction |
ASC | FASB Accounting Standards Codification |
ASU | FASB Accounting Standards Update |
C&I | Commercial and Industrial |
CAPM | Capital Asset Pricing Model |
CC | Combined cycle |
CCR | Coal combustion residual |
CCR Rule | Final rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as a nonhazardous waste |
CEO | Chief executive officer |
CFO | Chief financial officer |
CIG | Colorado Interstate Gas Company, LLC |
CT | Combustion turbine |
CWIP | Construction work in progress |
DCF | Discounted Cash Flows |
DR | Demand response |
DRC | Development Recovery Company |
DRIP | Dividend Reinvestment and Stock Purchase Program |
EPS | Earnings per share |
ETR | Effective tax rate |
FASB | Financial Accounting Standards Board |
FTR | Financial transmission right |
GAAP | Generally accepted accounting principles |
GE | General Electric |
IPP | Independent power producing entity |
MDL | Multi district litigation |
MEC | Mankato Energy Center |
MGP | Manufactured gas plant |
MISO | Midcontinent Independent System Operator, Inc. |
NAV | Net asset value |
NOI | Notice of inquiry |
NOL | Net operating loss |
O&M | Operating and maintenance |
OATT | Open Access Transmission Tariff |
PPA | Power purchase agreement |
PTC | Production tax credit |
ROE | Return on equity |
ROFR | Right-of-first refusal |
ROU | Right-of-use |
RTO | Regional Transmission Organization |
SMMPA | Southern Minnesota Municipal Power Agency |
SPP | Southwest Power Pool, Inc. |
TCJA | 2017 federal tax reform enacted as Public Law No: 115-97, commonly referred to as the Tax Cuts and Jobs Act |
TOs | Transmission owners |
Measurements | |
KV | Kilovolts |
MMBtu | Million British thermal Units |
MW | Megawatts |
MWh | Megawatt hours |
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions, except per share data) | |||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues | |||||||||||||||
Electric | $ | $ | $ | $ | |||||||||||
Natural gas | |||||||||||||||
Other | |||||||||||||||
Total operating revenues | |||||||||||||||
Operating expenses | |||||||||||||||
Electric fuel and purchased power | |||||||||||||||
Cost of natural gas sold and transported | |||||||||||||||
Cost of sales — other | |||||||||||||||
Operating and maintenance expenses | |||||||||||||||
Conservation and demand side management expenses | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Taxes (other than income taxes) | |||||||||||||||
Total operating expenses | |||||||||||||||
Operating income | |||||||||||||||
Other income (expense) | ( | ) | ( | ) | |||||||||||
Equity earnings of unconsolidated subsidiaries | |||||||||||||||
Allowance for funds used during construction — equity | |||||||||||||||
Interest charges and financing costs | |||||||||||||||
Interest charges — includes other financing costs of $6, $6, $19 and $18, respectively | |||||||||||||||
Allowance for funds used during construction — debt | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total interest charges and financing costs | |||||||||||||||
Income before income taxes | |||||||||||||||
Income taxes | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | |||||||||||||||
Earnings per average common share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | |||||||||||||||
See Notes to Consolidated Financial Statements |
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (amounts in millions) | |||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income | |||||||||||||||
Pension and retiree medical benefits: | |||||||||||||||
Net pension and retiree medical gains arising during the period, net of tax of $0, $(1), $1 and $(1), respectively | ( | ) | ( | ) | |||||||||||
Amortization of losses included in net periodic benefit cost, net of tax of $0, $1, $1 and $2, respectively | |||||||||||||||
Derivative instruments: | |||||||||||||||
Net fair value decrease, net of tax of $(3), $0, $(8) and $0, respectively | ( | ) | ( | ) | |||||||||||
Reclassification of losses to net income, net of tax of $0, $0, $1 and $1, respectively | |||||||||||||||
( | ) | ( | ) | ||||||||||||
Other comprehensive (loss) income | ( | ) | ( | ) | |||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||
See Notes to Consolidated Financial Statements |
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (amounts in millions) | |||||||
Nine Months Ended Sept. 30 | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Nuclear fuel amortization | |||||||
Deferred income taxes | |||||||
Allowance for equity funds used during construction | ( | ) | ( | ) | |||
Equity earnings of unconsolidated subsidiaries | ( | ) | ( | ) | |||
Dividends from unconsolidated subsidiaries | |||||||
Share-based compensation expense | |||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | ( | ) | |||||
Accrued unbilled revenues | |||||||
Inventories | ( | ) | |||||
Other current assets | |||||||
Accounts payable | ( | ) | |||||
Net regulatory assets and liabilities | ( | ) | |||||
Other current liabilities | ( | ) | ( | ) | |||
Pension and other employee benefit obligations | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Net cash provided by operating activities | |||||||
Investing activities | |||||||
Utility capital/construction expenditures | ( | ) | ( | ) | |||
Purchases of investment securities | ( | ) | ( | ) | |||
Proceeds from the sale of investment securities | |||||||
Other, net | ( | ) | ( | ) | |||
Net cash used in investing activities | ( | ) | ( | ) | |||
Financing activities | |||||||
Repayments from short-term borrowings, net | ( | ) | ( | ) | |||
Proceeds from issuances of long-term debt | |||||||
Repayments of long-term debt, including reacquisition premiums | ( | ) | ( | ) | |||
Proceeds from issuance of common stock | |||||||
Dividends paid | ( | ) | ( | ) | |||
Other, net | ( | ) | ( | ) | |||
Net cash provided by financing activities | |||||||
Net change in cash and cash equivalents | |||||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest (net of amounts capitalized) | $ | ( | ) | $ | ( | ) | |
Cash received (paid) for income taxes, net | ( | ) | |||||
Supplemental disclosure of non-cash investing and financing transactions: | |||||||
Accrued property, plant and equipment additions | $ | $ | |||||
Inventory transfers to property, plant and equipment | |||||||
Operating lease right-of-use assets | |||||||
Allowance for equity funds used during construction | |||||||
Issuance of common stock for equity awards | |||||||
See Notes to Consolidated Financial Statements |
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (amounts in millions, except share and per share data) | |||||||
Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, net | |||||||
Accrued unbilled revenues | |||||||
Inventories | |||||||
Regulatory assets | |||||||
Derivative instruments | |||||||
Prepaid taxes | |||||||
Prepayments and other | |||||||
Total current assets | |||||||
Property, plant and equipment, net | |||||||
Other assets | |||||||
Nuclear decommissioning fund and other investments | |||||||
Regulatory assets | |||||||
Derivative instruments | |||||||
Operating lease right-of-use assets | |||||||
Other | |||||||
Total other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | $ | |||||
Short-term debt | |||||||
Accounts payable | |||||||
Regulatory liabilities | |||||||
Taxes accrued | |||||||
Accrued interest | |||||||
Dividends payable | |||||||
Derivative instruments | |||||||
Other | |||||||
Total current liabilities | |||||||
Deferred credits and other liabilities | |||||||
Deferred income taxes | |||||||
Deferred investment tax credits | |||||||
Regulatory liabilities | |||||||
Asset retirement obligations | |||||||
Derivative instruments | |||||||
Customer advances | |||||||
Pension and employee benefit obligations | |||||||
Operating lease liabilities | |||||||
Other | |||||||
Total deferred credits and other liabilities | |||||||
Commitments and contingencies | |||||||
Capitalization | |||||||
Long-term debt | |||||||
Common stock — 1,000,000,000 shares authorized of $2.50 par value; 524,384,030 and 514,036,787 shares outstanding at Sept. 30, 2019 and Dec. 31, 2018, respectively | |||||||
Additional paid in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total common stockholders’ equity | |||||||
Total liabilities and equity | $ | $ | |||||
See Notes to Consolidated Financial Statements |
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS’ EQUITY (UNAUDITED) (amounts in millions, shares in thousands) | ||||||||||||||||||||||
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholders’ Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Three Months Ended Sept. 30, 2019 and 2018 | ||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||
Dividends declared on common stock ($0.38 per share) | ( | ) | ( | ) | ||||||||||||||||||
Issuances of common stock | ||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||
Balance at Sept. 30, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ||||||||||||||||||
Dividends declared on common stock ($0.405 per share) | ( | ) | ( | ) | ||||||||||||||||||
Issuances of common stock | ||||||||||||||||||||||
Share-based compensation | ( | ) | ||||||||||||||||||||
Balance at Sept. 30, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
See Notes to Consolidated Financial Statements |
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS’ EQUITY (UNAUDITED) (amounts in millions, shares in thousands) | ||||||||||||||||||||||
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholders’ Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Nine Months Ended Sept. 30, 2019 and 2018 | ||||||||||||||||||||||
Balance at Dec. 31, 2017 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||
Dividends declared on common stock ($1.14 per share) | ( | ) | ( | ) | ||||||||||||||||||
Issuances of common stock | ||||||||||||||||||||||
Repurchases of common stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Share-based compensation | ||||||||||||||||||||||
Balance at Sept. 30, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Balance at Dec. 31, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Other comprehensive income | ( | ) | ( | ) | ||||||||||||||||||
Dividends declared on common stock ($1.215 per share) | ( | ) | ( | ) | ||||||||||||||||||
Issuances of common stock | ||||||||||||||||||||||
Repurchases of common stock | ( | ) | ||||||||||||||||||||
Share-based compensation | ( | ) | ||||||||||||||||||||
Balance at Sept. 30, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
See Notes to Consolidated Financial Statements |
1. | Summary of Significant Accounting Policies |
2. |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | $ | ||||||
Less allowance for bad debts | ( | ) | ( | ) | ||||
Accounts receivable, net | $ | $ |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Inventories | ||||||||
Materials and supplies | $ | $ | ||||||
Fuel | ||||||||
Natural gas | ||||||||
Total inventories | $ | $ |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Property, plant and equipment, net | ||||||||
Electric plant | $ | $ | ||||||
Natural gas plant | ||||||||
Common and other property | ||||||||
Plant to be retired (a) | ||||||||
CWIP | ||||||||
Total property, plant and equipment | ||||||||
Less accumulated depreciation | ( | ) | ( | ) | ||||
Nuclear fuel | ||||||||
Less accumulated amortization | ( | ) | ( | ) | ||||
Property, plant and equipment, net | $ | $ |
(a) | In 2018, the CPUC approved early retirement of PSCo’s Comanche Units 1 and 2 in approximately 2022 and 2025, respectively. PSCo also expects Craig Unit 1 to be retired early in 2025. Amounts are presented net of accumulated depreciation. |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2019 | Year Ended Dec. 31, 2018 | ||||||
Borrowing limit | $ | $ | ||||||
Amount outstanding at period end | ||||||||
Average amount outstanding | ||||||||
Maximum amount outstanding | ||||||||
Weighted average interest rate, computed on a daily basis | % | % | ||||||
Weighted average interest rate at period end |
• | Maturity extended from June 2021 to June 2024. |
• | Borrowing limit for Xcel Energy was increased from $ |
• | Borrowing limit for SPS was increased from $ |
• | Added swingline subfacility for Xcel Energy up to $ |
(Millions of Dollars) | Credit Facility (a) | Outstanding (b) | Available | |||||||||
Xcel Energy Inc. | $ | $ | $ | |||||||||
PSCo | ||||||||||||
NSP-Minnesota | ||||||||||||
SPS | ||||||||||||
NSP-Wisconsin | ||||||||||||
Total | $ | $ | $ |
(a) | Expires in June 2024. |
(b) | Includes outstanding commercial paper and letters of credit. |
(Millions of Dollars) | Limit | Amount Used | Available | |||||||||
Xcel Energy Inc. | $ | $ | $ |
(Millions of Dollars) | Limit | Amount Outstanding | Available | |||||||||
NSP-Minnesota | $ | $ | $ |
• | PSCo issued $ |
• | Xcel Energy Inc. issued $ |
• | SPS issued $ |
• | PSCo issued $ |
• | NSP-Minnesota issued $ |
5. | Revenues |
Three Months Ended Sept. 30, 2019 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Wholesale | ||||||||||||||||
Transmission | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended Sept. 30, 2018 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Wholesale | ||||||||||||||||
Transmission | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Nine Months Ended Sept. 30, 2019 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Wholesale | ||||||||||||||||
Transmission | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Nine Months Ended Sept. 30, 2018 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Wholesale | ||||||||||||||||
Transmission | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Federal statutory rate | % | % | % | % | ||||||||
State tax (net of federal tax effect) | ||||||||||||
(Decreases) increases: | ||||||||||||
Wind PTCs | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Plant regulatory differences (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Other tax credits and tax credit and NOL allowances (net) | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Other (net) | ( | ) | ( | ) | ||||||||
Effective income tax rate | % | % | % | % |
(a) |
Tax Year(s) | Expiration | |
2009 - 2013 | June 2020 | |
2014 - 2016 | September 2020 |
State | Year | |
Colorado | 2009 | |
Minnesota | 2009 | |
Texas | 2009 | |
Wisconsin | 2014 |
• | In 2018, Wisconsin began an audit of tax years 2014 - 2016. As of Sept. 30, 2019, |
• | No other state income tax audits were in progress as of Sept. 30, 2019. |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Unrecognized tax benefit — Permanent tax positions | $ | $ | ||||||
Unrecognized tax benefit — Temporary tax positions | ||||||||
Total unrecognized tax benefit | $ | $ |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
NOL and tax credit carryforwards | $ | ( | ) | $ | ( | ) |
• | 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; and, |
• | Liability awards subject to a performance condition; any portions settled in shares are included in common shares outstanding upon settlement. |
8. | Fair Value of Financial Assets and Liabilities |
Sept. 30, 2019 | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
(Millions of Dollars) | Cost | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||||||||
Nuclear decommissioning fund (a) | ||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commingled funds | ||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(a) | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $ |
Dec. 31, 2018 | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
(Millions of Dollars) | Cost | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||||||||
Nuclear decommissioning fund (a) | ||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commingled funds | ||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(a) | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $ |
Final Contractual Maturity | ||||||||||||||||||||
(Millions of Dollars) | Due in 1 Year or Less | Due in 1 to 5 Years | Due in 5 to 10 Years | Due after 10 Years | Total | |||||||||||||||
Debt securities | $ | $ | $ | $ | $ |
Sept. 30, 2019 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
(Millions of Dollars) | Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Rabbi Trusts (a) | ||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||
Mutual funds | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Dec. 31, 2018 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
(Millions of Dollars) | Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Rabbi Trusts (a) | ||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||
Mutual funds | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(Amounts in Millions) (a)(b) | Sept. 30, 2019 | Dec. 31, 2018 | ||||
MWh of electricity | ||||||
MMBtu of natural gas |
(a) | Not reflective of net positions in the underlying commodities. |
(b) | Notional amounts for options included on a gross basis, but are weighted for the probability of exercise. |
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: | ||||||||
(Millions of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | ||||||
Three Months Ended Sept. 30, 2019 | ||||||||
Derivatives designated as cash flow hedges | ||||||||
Interest rate | $ | ( | ) | $ | ||||
Total | $ | ( | ) | $ | ||||
Other derivative instruments | ||||||||
Natural gas commodity | $ | $ | ( | ) | ||||
Total | $ | $ | ( | ) | ||||
Nine Months Ended Sept. 30, 2019 | ||||||||
Derivatives designated as cash flow hedges | ||||||||
Interest rate | $ | ( | ) | $ | ||||
Total | $ | ( | ) | $ | ||||
Other derivative instruments | ||||||||
Electric commodity | $ | $ | ||||||
Natural gas commodity | ( | ) | ||||||
Total | $ | $ | ( | ) | ||||
Three Months Ended Sept. 30, 2018 | ||||||||
Other derivative instruments | ||||||||
Electric commodity | $ | $ | ( | ) | ||||
Natural gas commodity | ( | ) | ||||||
Total | $ | $ | ( | ) | ||||
Nine Months Ended Sept. 30, 2018 | ||||||||
Other derivative instruments | ||||||||
Electric commodity | $ | $ | ||||||
Natural gas commodity | ( | ) | ||||||
Total | $ | $ |
Pre-Tax (Gains) Losses Reclassified into Income During the Period from: | Pre-Tax Gains (Losses) Recognized During the Period in Income | |||||||||||
(Millions of Dollars) | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | ||||||||||
Three Months Ended Sept. 30, 2019 | ||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||
Interest rate | $ | (a) | $ | $ | ||||||||
Total | $ | $ | $ | |||||||||
Other derivative instruments | ||||||||||||
Commodity trading | $ | $ | $ | (b) | ||||||||
Electric commodity | ( | ) | (c) | |||||||||
Total | $ | $ | ( | ) | $ | |||||||
Nine Months Ended Sept. 30, 2019 | ||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||
Interest rate | $ | (a) | $ | $ | ||||||||
Total | $ | $ | $ | |||||||||
Other derivative instruments | ||||||||||||
Commodity trading | $ | $ | $ | (b) | ||||||||
Natural gas commodity | ( | ) | (d) | ( | ) | (d) | ||||||
Total | $ | $ | ( | ) | $ | |||||||
Three Months Ended Sept. 30, 2018 | ||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||
Interest rate | $ | (a) | $ | $ | ||||||||
Total | $ | $ | $ | |||||||||
Other derivative instruments | ||||||||||||
Commodity trading | $ | $ | $ | (b) | ||||||||
Total | $ | $ | $ | |||||||||
Nine Months Ended Sept. 30, 2018 | ||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||
Interest rate | $ | (a) | $ | $ | ||||||||
Total | $ | $ | $ | |||||||||
Other derivative instruments | ||||||||||||
Commodity trading | $ | $ | $ | (b) | ||||||||
Natural gas commodity | (d) | ( | ) | (d) | ||||||||
Total | $ | $ | $ |
(a) | Recorded to interest charges. |
(b) | Recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue, as appropriate. |
(c) | Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. |
(d) | Amounts for both the three and nine months ended Sept. 30, 2019 included |
Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Total | Netting (a) | Total | Fair Value | Fair Value Total | Netting (a) | Total | |||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||
Electric commodity | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Natural gas commodity | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current derivative assets | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ( | ) | ||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||
Total noncurrent derivative assets | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ( | ) | ||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | $ |
Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Total | Netting (a) | Total | Fair Value | Fair Value Total | Netting (a) | Total | |||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||
Electric commodity | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Natural gas commodity | ||||||||||||||||||||||||||||||||||||||||||||||||
Total current derivative liabilities | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ( | ) | ||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Total noncurrent derivative liabilities | $ | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | $ |
(a) | Xcel Energy nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2019 and Dec. 31, 2018. At both Sept. 30, 2019 and Dec. 31, 2018, derivative assets and liabilities include $ |
(b) | During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, contracts are no longer adjusted to fair value and the previous carrying value of these contracts is being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Three Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Balance at July 1 | $ | $ | ||||||
Purchases | ||||||||
Settlements | ( | ) | ( | ) | ||||
Net transactions recorded during the period: | ||||||||
Gains recognized in earnings (a) | ||||||||
Net gains recognized as regulatory assets and liabilities | ||||||||
Balance at Sept. 30 | $ | $ | ||||||
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Balance at Jan. 1 | $ | $ | ||||||
Purchases | ||||||||
Settlements | ( | ) | ( | ) | ||||
Net transactions recorded during the period: | ||||||||
Losses recognized in earnings (a) | ( | ) | ||||||
Net gains recognized as regulatory assets and liabilities | ||||||||
Balance at Sept. 30 | $ | $ |
(a) | These amounts relate to commodity derivatives held at the end of the period. |
Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||||||
(Millions of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt, including current portion | $ | $ | $ | $ |
Three Months Ended Sept. 30 | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost (a) | ||||||||||||||||
Expected return on plan assets (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service credit (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of net loss (a) | ||||||||||||||||
Settlement charge (b) | ||||||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | ||||||||||||
Credits (costs) not recognized due to the effects of regulation | ( | ) | ||||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | $ | $ | ( | ) | $ |
Nine Months Ended Sept. 30 | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost (a) | ||||||||||||||||
Expected return on plan assets (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service credit (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of net loss (a) | ||||||||||||||||
Settlement charge (b) | ||||||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | ||||||||||||
Credits (costs) not recognized due to the effects of regulation | ( | ) | ||||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | $ | $ | ( | ) | $ | ( | ) |
(a) | Components of net periodic cost other than the service cost component are included in the line item “other expense, net” in the consolidated statement of income or capitalized on the consolidated balance sheet as a regulatory asset. |
(Millions of Dollars) | Sept. 30, 2019 | |||
PPAs | $ | |||
Other | ||||
Gross operating lease ROU assets | ||||
Accumulated amortization | ( | ) | ||
Net operating lease ROU assets | $ |
(Millions of Dollars) | Sept. 30, 2019 | |||
Gas storage facilities | $ | |||
Gas pipeline | ||||
Gross finance lease ROU assets | ||||
Accumulated amortization | ( | ) | ||
Net finance lease ROU assets | $ |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 | Nine Months Ended Sept. 30, 2019 | ||||||
Operating leases | ||||||||
PPA capacity payments | $ | $ | ||||||
Other operating leases (a) | ||||||||
Total operating lease expense (b) | $ | $ | ||||||
Finance leases | ||||||||
Amortization of ROU assets | $ | $ | ||||||
Interest expense on lease liability | ||||||||
Total finance lease expense | $ | $ |
(a) | Includes short-term lease expense of $ |
(b) | PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. |
(Millions of Dollars) | PPA (a) (b) Operating Leases | Other Operating Leases | Total Operating Leases | Finance Leases (c) | ||||||||||||
2019 | $ | $ | $ | $ | ||||||||||||
2020 | ||||||||||||||||
2021 | ||||||||||||||||
2022 | ||||||||||||||||
2023 | ||||||||||||||||
Thereafter | ||||||||||||||||
Total minimum obligation | ||||||||||||||||
Interest component of obligation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Present value of minimum obligation | $ | $ | ||||||||||||||
Less current portion | ( | ) | ( | ) | ||||||||||||
Noncurrent operating and finance lease liabilities | $ | $ | ||||||||||||||
Weighted-average remaining lease term in years | 9.5 | 37.2 |
(a) | Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. |
(b) | PPA operating leases contractually expire at various dates through 2033. |
(c) | Excludes certain amounts related to Xcel Energy’s |
(Millions of Dollars) | PPA (a) (b) Operating Leases | Other Operating Leases | Total Operating Leases | Finance Leases (c) | ||||||||||||
2019 | $ | $ | $ | $ | ||||||||||||
2020 | ||||||||||||||||
2021 | ||||||||||||||||
2022 | ||||||||||||||||
2023 | ||||||||||||||||
Thereafter | ||||||||||||||||
Total minimum obligation | ||||||||||||||||
Interest component of obligation | ( | ) | ||||||||||||||
Present value of minimum obligation | $ |
(a) | Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. |
(b) | PPA operating leases contractually expire at various dates through 2033. |
(c) | Excludes certain amounts related to Xcel Energy’s |
Three Months Ended Sept. 30, 2019 | Three Months Ended Sept. 30, 2018 | |||||||||||||||||||||||
(Millions of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | ||||||||||||||||||
Accumulated other comprehensive loss at July 1 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive (loss) before reclassifications (net of taxes of $(3), $0, $0 and $(1), respectively) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Losses reclassified from net accumulated other comprehensive loss: | ||||||||||||||||||||||||
Interest rate derivatives (net of taxes of $0) (a) | ||||||||||||||||||||||||
Amortization of net actuarial loss (net of taxes of $0, $0, $0 and $1, respectively) (b) | ||||||||||||||||||||||||
Net current period other comprehensive income | ( | ) | ( | ) | ||||||||||||||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Nine Months Ended Sept. 30, 2019 | Nine Months Ended Sept. 30, 2018 | |||||||||||||||||||||||
(Millions of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | ||||||||||||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive (loss) gain before reclassifications (net of taxes of $(9), $1, $0 and $(1), respectively) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Losses reclassified from net accumulated other comprehensive loss: | ||||||||||||||||||||||||
Interest rate derivatives (net of taxes of $1, $0, $1 and $0, respectively) (a) | ||||||||||||||||||||||||
Amortization of net actuarial loss (net of taxes of $0, $1, $0 and $2, respectively) (b) | ||||||||||||||||||||||||
Net current period other comprehensive income | ( | ) | ( | ) | ||||||||||||||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(a) | Included in interest charges. |
(b) | Included in the computation of net periodic pension and postretirement benefit costs. |
• | Regulated Electric - The regulated electric utility segment generates, transmits and distributes electricity in Minnesota, Wisconsin, Michigan, North Dakota, South Dakota, Colorado, Texas and New Mexico. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes wholesale commodity and trading operations. |
• | Regulated Natural Gas - The regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of Minnesota, Wisconsin, North Dakota, Michigan and Colorado. |
• | All Other - Operating segments with revenues below the necessary quantitative thresholds are included in this category. Those segments primarily include steam revenue, appliance repair services, non-utility real estate activities, revenues associated with processing solid waste into refuse-derived fuel and investments in rental housing projects that qualify for low-income housing tax credits. |
Three Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Regulated Electric | ||||||||
Operating revenues from external customers | $ | $ | ||||||
Net income | ||||||||
Regulated Natural Gas | ||||||||
Operating revenues from external customers | $ | $ | ||||||
Net (loss) income | ( | ) | ||||||
All Other | ||||||||
Total operating revenue | $ | $ | ||||||
Net loss | ( | ) | ( | ) | ||||
Consolidated Total | ||||||||
Total revenue | $ | $ | ||||||
Net income |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Regulated Electric | ||||||||
Operating revenues from external customers | $ | $ | ||||||
Intersegment revenue | ||||||||
Total revenues | $ | $ | ||||||
Net income | ||||||||
Regulated Natural Gas | ||||||||
Operating revenues from external customers | $ | $ | ||||||
Intersegment revenue | ||||||||
Total revenues | $ | $ | ||||||
Net income | ||||||||
All Other | ||||||||
Total operating revenue | $ | $ | ||||||
Net loss | ( | ) | ( | ) | ||||
Consolidated Total | ||||||||
Total revenue | $ | $ | ||||||
Reconciling eliminations | ( | ) | ( | ) | ||||
Consolidated total revenue | $ | $ | ||||||
Net income |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
Diluted Earnings (Loss) Per Share | 2019 | 2018 | 2019 | 2018 | ||||||||||||
PSCo | $ | 0.39 | $ | 0.41 | $ | 0.86 | $ | 0.91 | ||||||||
NSP-Minnesota | 0.40 | 0.39 | 0.81 | 0.79 | ||||||||||||
SPS | 0.20 | 0.16 | 0.42 | 0.34 | ||||||||||||
NSP-Wisconsin | 0.06 | 0.06 | 0.12 | 0.15 | ||||||||||||
Equity earnings of unconsolidated subsidiaries | 0.01 | 0.01 | 0.04 | 0.03 | ||||||||||||
Regulated utility (a) | 1.06 | 1.03 | 2.24 | 2.22 | ||||||||||||
Xcel Energy Inc. and Other | (0.05 | ) | (0.07 | ) | (0.16 | ) | (0.17 | ) | ||||||||
Total (a) | $ | 1.01 | $ | 0.96 | $ | 2.08 | $ | 2.05 |
(a) | Amounts may not add due to rounding. |
Diluted Earnings (Loss) Per Share | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||
GAAP and ongoing diluted EPS — 2018 | $ | 0.96 | $ | 2.05 | ||||
Components of change — 2019 vs. 2018 | ||||||||
Higher electric margins | 0.08 | 0.22 | ||||||
Lower ETR (a) | 0.03 | 0.12 | ||||||
Higher natural gas margin | — | 0.05 | ||||||
Higher depreciation and amortization | (0.01 | ) | (0.17 | ) | ||||
Higher interest charges | (0.03 | ) | (0.08 | ) | ||||
Lower AFUDC | (0.04 | ) | (0.06 | ) | ||||
Changes in O&M | 0.02 | (0.05 | ) | |||||
GAAP and ongoing diluted EPS — 2019 | $ | 1.01 | $ | 2.08 |
(a) | Includes PTCs and timing of tax reform regulatory decisions, which are primarily offset in electric margin. |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||||
2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | 2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | ||||||||||||
HDD | (64.0 | )% | (18.2 | )% | (57.0 | )% | 10.7 | % | (0.3 | )% | 9.4 | % | |||||
CDD | 27.4 | 14.8 | 20.9 | 6.4 | 27.1 | (14.9 | ) | ||||||||||
THI | (2.6 | ) | 18.2 | (17.0 | ) | (8.2 | ) | 38.4 | (33.2 | ) |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||||||||||
2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | 2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | ||||||||||||||||||
Retail electric | $ | 0.040 | $ | 0.043 | $ | (0.003 | ) | $ | 0.035 | $ | 0.110 | $ | (0.075 | ) | |||||||||
Firm natural gas | (0.001 | ) | — | (0.001 | ) | 0.021 | 0.003 | 0.018 | |||||||||||||||
Total (excluding decoupling) | $ | 0.039 | $ | 0.043 | $ | (0.004 | ) | $ | 0.056 | $ | 0.113 | $ | (0.057 | ) | |||||||||
Decoupling — Minnesota | — | (0.018 | ) | 0.018 | 0.001 | (0.050 | ) | 0.051 | |||||||||||||||
Total (adjusted for decoupling) | $ | 0.039 | $ | 0.025 | $ | 0.014 | $ | 0.057 | $ | 0.063 | $ | (0.006 | ) |
Three Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Actual | |||||||||||||||
Electric residential | 1.7 | % | (6.2 | )% | 5.9 | % | (1.8 | )% | (1.2 | )% | |||||
Electric C&I | (1.6 | ) | (6.1 | ) | 4.6 | (3.6 | ) | (1.9 | ) | ||||||
Total retail electric sales | (0.5 | ) | (6.1 | ) | 4.7 | (3.1 | ) | (1.7 | ) | ||||||
Firm natural gas sales | 4.2 | 1.7 | N/A | (10.6 | ) | 2.5 |
Three Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Weather-normalized | |||||||||||||||
Electric residential | (1.1 | )% | (1.0 | )% | (1.4 | )% | 1.5 | % | (0.9 | )% | |||||
Electric C&I | (2.8 | ) | (4.4 | ) | 3.6 | (2.8 | ) | (1.8 | ) | ||||||
Total retail electric sales | (2.2 | ) | (3.4 | ) | 2.4 | (1.7 | ) | (1.6 | ) | ||||||
Firm natural gas sales | 6.8 | 4.0 | N/A | (7.9 | ) | 5.1 |
Nine Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Actual | |||||||||||||||
Electric residential | (0.4 | )% | (4.8 | )% | (0.4 | )% | (2.4 | )% | (2.4 | )% | |||||
Electric C&I | (0.9 | ) | (4.6 | ) | 3.9 | (2.8 | ) | (1.2 | ) | ||||||
Total retail electric sales | (0.7 | ) | (4.6 | ) | 2.9 | (2.7 | ) | (1.6 | ) | ||||||
Firm natural gas sales | 15.6 | 5.3 | N/A | (1.7 | ) | 10.9 |
Nine Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Weather-normalized | |||||||||||||||
Electric residential | (0.2 | )% | — | % | 1.2 | % | 1.1 | % | 0.2 | % | |||||
Electric C&I | (0.8 | ) | (3.2 | ) | 4.2 | (2.0 | ) | (0.5 | ) | ||||||
Total retail electric sales | (0.5 | ) | (2.3 | ) | 3.5 | (1.2 | ) | (0.3 | ) | ||||||
Firm natural gas sales | 4.9 | 1.3 | N/A | (4.1 | ) | 3.2 |
• | PSCo — Residential sales were lower due to a decrease in customer usage, partially offset by customer additions. Commercial and industrial (C&I) decline was due to lower usage in food and service industries, partially offset by growth in metal fabrication and mining industries. |
• | NSP-Minnesota — Decline in C&I sales was due to expected discrete energy manufacturing customer declines due to newly installed co-generation, which was partially offset by an increase in customers. |
• | SPS — Residential sales growth was due to customer additions, partially offset by lower use per customer. Higher C&I sales was primarily driven by increase in the oil and natural gas industry in the Permian Basin. |
• | NSP-Wisconsin — Residential sales growth was attributable to customer additions and increased usage. Decline in C&I sales was due to lower use per customer and decreased sales to the mining, manufacturing and food industries. |
• | Natural gas sales reflect an increase in the number of customers combined with higher customer use. |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Electric revenues | $ | 2,771 | $ | 2,802 | $ | 7,345 | $ | 7,419 | ||||||||
Electric fuel and purchased power | (952 | ) | (1,040 | ) | (2,679 | ) | (2,907 | ) | ||||||||
Electric margin | $ | 1,819 | $ | 1,762 | $ | 4,666 | $ | 4,512 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 vs. 2018 | Nine Months Ended Sept. 30, 2019 vs. 2018 | ||||||
Non-fuel riders (a) | $ | 25 | $ | 81 | ||||
Regulatory rate outcomes (Minnesota, New Mexico, North and South Dakota) | 32 | 79 | ||||||
Wholesale transmission revenue (net) | 11 | 22 | ||||||
Purchased capacity costs | 6 | 21 | ||||||
Implementation of lease accounting standard (offset in interest expense and amortization) | 5 | 16 | ||||||
Demand revenue | (1 | ) | 12 | |||||
Estimated impact of weather (net of Minnesota decoupling) | 6 | (26 | ) | |||||
Timing of tax reform regulatory decisions (offset in income tax and amortization) | (3 | ) | (22 | ) | ||||
Sales declines (excluding weather impact and net of sales true-up) | (16 | ) | (17 | ) | ||||
Firm wholesale generation | (9 | ) | (14 | ) | ||||
Other (net) | 1 | 2 | ||||||
Total increase in electric margin | $ | 57 | $ | 154 |
(a) | Includes approximately $17 million and $50 million, respectively, of additional PTC benefit (grossed-up for tax) as compared to the same periods in 2018, which are credited to customers through various regulatory mechanisms. |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Natural gas revenues | $ | 222 | $ | 227 | $ | 1,324 | $ | 1,181 | ||||||||
Cost of natural gas sold and transported | (55 | ) | (58 | ) | (646 | ) | (537 | ) | ||||||||
Natural gas margin | $ | 167 | $ | 169 | $ | 678 | $ | 644 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 vs. 2018 | Nine Months Ended Sept. 30, 2019 vs. 2018 | ||||||
Estimated impact of weather | $ | — | $ | 12 | ||||
Infrastructure and integrity riders | 4 | 11 | ||||||
Retail sales growth | 1 | 5 | ||||||
Retail rate increase (Colorado, partially offset in amortization) | (8 | ) | 4 | |||||
Transport sales | 1 | 4 | ||||||
Conservation revenue (offset in expenses) | — | (3 | ) | |||||
Other (net) | — | 1 | ||||||
Total (decrease) increase in natural gas margin | $ | (2 | ) | $ | 34 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 vs. 2018 | Nine Months Ended Sept. 30, 2019 vs. 2018 | ||||||
Distribution | $ | — | $ | 23 | ||||
Business systems | (6 | ) | 5 | |||||
Plant generation | — | 3 | ||||||
Natural gas operations | (3 | ) | 1 | |||||
Nuclear plant operations and amortization | (4 | ) | (4 | ) | ||||
Other (net) | — | 7 | ||||||
Total (decrease) increase in O&M expenses | $ | (13 | ) | $ | 35 |
• | Distribution expenses for the nine month comparison were higher due to storms and labor charges incurred during the first half of the year; |
• | Business Systems costs were higher for the nine month comparison, primarily due to increased customer experience transformation program expenses; |
• | Natural gas operation expenses for the nine month comparison increased due to pipeline maintenance; and |
• | Nuclear plant operations and amortization are lower largely reflecting savings initiatives and reduced refueling outage costs. |
• | Allowed ROE of 10.0%; |
• | Allowed equity ratio of 52.5%; |
• | Retain expected fuel cost savings from new wind farms for the NSP System; |
• | Allow deferral of pension settlement costs, if any, for 2019-2021; |
• | Utilize a portion of tax reform benefits to offset revenue deficiency; |
• | Allow deferral of certain large customer non-fuel cost of service impacts and bad debt expense in 2019-2021; and |
• | Apply an earnings sharing mechanism for 2020 and 2021. The mechanism would return to customers 50% of earnings between 10.25% and 10.75% ROE and 100% of earnings equal to or in excess of 10.75% ROE. |
• | Utilize tax reform benefits of $22 million to offset a portion of the regulatory asset for remediation of the MGP site in Ashland, WI. |
• | Settlement deadline — Oct. 30, 2019 |
• | Evidentiary hearing — Nov. 4-13, 2019 |
• | A CPUC decision is anticipated in December 2019 with implementation of final rates on Jan. 1, 2020. |
(Millions of Dollars) | Filed base revenue request | Less: Previously authorized costs (existing riders) (b) | Filed net change to revenue (c) | |||||||||
PSCo | $ | 408 | $ | 249 | $ | 158 | ||||||
CPUC Staff (a) | 235 | 227 | 8 | |||||||||
FEA | 246 | 239 | 7 | |||||||||
OCC (a) | 207 | 216 | (9 | ) | ||||||||
CEC (a) | 187 | 213 | (26 | ) |
(a) | Staff, OCC and CEC have incorporated corrections to the filed case of ($4) million identified by PSCo. |
(b) | Amounts derived from intervenors’ positions attributable to previously authorized costs (existing riders), impacted by proposed differences in weighted average cost of capital. |
(c) | Amounts may not add due to rounding. |
Position | Staff | FEA | OCC | CEC | |||||||||
ROE | 9.00 | % | 9.20 | % | 8.80 | % | 8.90 | % | |||||
Equity | 55.57 | % | 56.11 | % | 54.60 | % | 54.27 | % | |||||
Test Year | 2019 Current | (a) | 2018 Historic | (b) | 2018 Historic | (c) | 2018 Historic | (d) |
(a) | Incorporated 13-month average of proposed forecasted plant additions and rejected adjustments for wildfire mitigation improvements. |
(b) | Incorporated year-end rate base and rejected proposed forecasted plant additions. Except for the transmission portion, the FEA supported portions of wildfire mitigation improvements and included 2019 distribution capital and O&M in its cost of service amount. |
(c) | Incorporated proposed 13-month average rate base while rejecting the proposed forecasted plant additions including amounts requested for AGIS and wildfire mitigation improvements. |
(d) | Rejected proposed forecasted plant additions and the majority of the adjustment for wildfire mitigation improvements. |
Revenue Request (Millions of Dollars) | ||||
Hale Wind Farm | $ | 62 | ||
Capital investments | 47 | |||
Depreciation rate change (including Tolk) | 34 | |||
Cost of capital | 10 | |||
Expiring purchased power contracts | (28 | ) | ||
Other, net | 11 | |||
New revenue request | $ | 136 |
• | Intervenor testimony — Feb. 10, 2020 |
• | Staff testimony — Feb. 18, 2020 |
• | Rebuttal testimony — March 11, 2020 |
• | Public hearing begins — March 30, 2020 |
• | Final order deadline — Sept. 7, 2020 |
Revenue Request (Millions of Dollars) | ||||
Hale Wind Farm | $ | 28 | ||
Other plant investment | 22 | |||
Wholesale sales reduction | 17 | |||
Allocator changes due to load growth | 15 | |||
Depreciation rate change (including Tolk) | 15 | |||
Base rate sales growth | (41 | ) | ||
Other, net | (5 | ) | ||
New revenue request | $ | 51 |
• | Filing of stipulation, if any — Nov. 15, 2019 |
• | Staff and intervenor testimony or testimony in support of a stipulation — Nov. 22, 2019 |
• | Testimony in opposition to a stipulation, if any — Dec. 6, 2019 |
• | Rebuttal testimony — Dec. 20, 2019 |
• | Public hearing begins — Jan. 7, 2020 |
• | End of 9-month suspension — April 30, 2020 |
Mechanism | Utility Service | Amount Requested (in millions) | Filing Date | Approval | Additional Information | |||||
NSP-Minnesota (MPUC) | ||||||||||
TCR | Electric | $98 | November 2017 | Pending | In May 2019, the MPUC issued a verbal order setting an ROE of 9.06% and recovery of 2017-2018 expenses related to advanced grid investments. A final order is expected in the fourth quarter of 2019. | |||||
2018 GUIC | Natural Gas | $23 | November 2017 | Received | In May 2019, the MPUC issued a verbal order setting an ROE of 9.04%. A final order was received in August 2019. | |||||
2019 GUIC | Natural Gas | $29 | November 2018 | Pending | Proposed ROE of 10.25%. Timing of the MPUC decision is uncertain. | |||||
RES | Electric | $23 | November 2017 | Pending | In May 2019, the MPUC issued a verbal order setting an ROE of 9.06%. A final order is expected in the fourth quarter of 2019. | |||||
PSCo (CPUC) | ||||||||||
Rate Case | Steam | $7 | May 2019 | Received | In May 2019, PSCo filed an unopposed Settlement Agreement with CPUC Staff and the City of Denver. The settlement reflects a ROE of 9.67% for AFUDC purposes, an equity ratio of 56.04% and utilization of tax reform benefits. The CPUC approved the Settlement Agreement without modification on Sept. 5, 2019. The first stepped increase went into effect Oct. 1, 2019, with full rates effective Oct. 1, 2020. | |||||
Rate Case Appeal | Natural Gas | N/A | April 2019 | Pending | In April 2019, PSCo filed an appeal seeking judicial review of the CPUC’s prior ruling regarding PSCo’s last natural gas rate case (approved in December 2018). Appeal requests review of the following: denial of a return on the prepaid pension and retiree medical assets; the use of a capital structure that is not based on the actual historical test year level; and the use of an average rate base methodology rather than a year-end rate base methodology. The District Court of Denver County has adopted a briefing schedule that will conclude in October 2019. Timeline on a final ruling is unknown. |
• | Extends the life of the Monticello nuclear plant from 2030 to 2040; |
• | Continues to run the Prairie Island nuclear plant through current end of life (2033 and 2034); |
• | Includes the MEC acquisition and construction of the Sherco CC natural gas plant; |
• | Includes the early retirement of the King coal plant (511 MW) in 2028 and the Sherco 3 coal plant (517 MW) in 2030; |
• | Adds approximately 1,700 MW of firm peaking (CT, pumped hydro, battery storage, DR, etc.); |
• | Adds approximately 1,200 MW of wind replacement; and |
• | Adds approximately 4,000 MW of solar. |
Futures / Forwards | |||||||||||||||||||||||
(Millions of Dollars) | Source of Fair Value | Maturity Less Than 1 Year | Maturity 1 to 3 Years | Maturity 4 to 5 Years | Maturity Greater Than 5 Years | Total Futures/ Forwards Fair Value | |||||||||||||||||
NSP-Minnesota | 1 | $ | (1 | ) | $ | 1 | $ | 1 | $ | 1 | $ | 2 | |||||||||||
NSP-Minnesota | 2 | 5 | (4 | ) | 1 | (7 | ) | (5 | ) | ||||||||||||||
PSCo | 2 | (5 | ) | (21 | ) | (29 | ) | (4 | ) | (59 | ) | ||||||||||||
$ | (1 | ) | $ | (24 | ) | $ | (27 | ) | $ | (10 | ) | $ | (62 | ) |
Options | |||||||||||||||||||||||
(Millions of Dollars) | Source of Fair Value | Maturity Less Than 1 Year | Maturity 1 to 3 Years | Maturity 4 to 5 Years | Maturity Greater Than 5 Years | Total Futures/ Forwards Fair Value | |||||||||||||||||
NSP-Minnesota | 2 | $ | 3 | $ | 2 | $ | — | $ | — | $ | 5 | ||||||||||||
$ | 3 | $ | 2 | $ | — | $ | — | $ | 5 |
(Millions of Dollars) | 2019 | 2018 | ||||||
Fair value of commodity trading net contract assets outstanding at Jan. 1 | $ | 17 | $ | 16 | ||||
Contracts realized or settled during the period | (13 | ) | (8 | ) | ||||
Commodity trading contract additions and changes during the period | (61 | ) | 10 | |||||
Fair value of commodity trading net contract assets outstanding at Sept. 30 | $ | (57 | ) | $ | 18 |
(Millions of Dollars) | Three Months Ended Sept. 30 | VaR Limit | Average | High | Low | |||||||||||||||
2019 | $ | 0.52 | $ | 3.00 | $ | 0.97 | $ | 1.30 | $ | 0.52 | ||||||||||
2018 | 0.19 | 3.00 | 0.20 | 0.50 | 0.08 |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Cash provided by operating activities | $ | 2,557 | $ | 2,493 |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Cash used in investing activities | $ | (3,129 | ) | $ | (2,706 | ) |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Cash provided by financing activities | $ | 1,289 | $ | 343 |
• | In July 2019, Xcel Energy made a $4 million contribution to the Xcel Energy Inc. Non-Bargaining Pension Plan (South). |
• | In January 2019, contributions of $150 million were made across four of Xcel Energy’s pension plans. |
• | In 2018, contributions of $150 million were made across four of Xcel Energy’s pension plans. |
• | For future years, contributions will be made as deemed appropriate based on evaluation of various factors including the funded status of the plans, minimum funding requirements, interest rates and expected investment returns. |
(Millions of Dollars) | Credit Facility (a) | Drawn (b) | Available | Cash | Liquidity | |||||||||||||||
Xcel Energy Inc. | $ | 1,250 | $ | 379 | $ | 871 | $ | 1 | $ | 872 | ||||||||||
PSCo | 700 | 9 | 691 | 256 | 947 | |||||||||||||||
NSP-Minnesota | 500 | 19 | 481 | 181 | 662 | |||||||||||||||
SPS | 500 | 2 | 498 | 110 | 608 | |||||||||||||||
NSP-Wisconsin | 150 | 66 | 84 | 1 | 85 | |||||||||||||||
Total | $ | 3,100 | $ | 475 | $ | 2,625 | $ | 549 | $ | 3,174 |
(a) | Credit facilities expire in June 2024. |
(b) | Includes outstanding commercial paper and letters of credit. |
(Millions of Dollars) | Limit | Amount Used | Available | |||||||||
Xcel Energy Inc. | $ | 500 | $ | 500 | $ | — |
(Millions of Dollars) | Limit | Amount Outstanding | Available | |||||||||
NSP-Minnesota | $ | 75 | $ | 20 | $ | 55 |
• | $1.25 billion for Xcel Energy Inc.; |
• | $700 million for PSCo; |
• | $500 million for NSP-Minnesota; |
• | $500 million for SPS; and |
• | $150 million for NSP-Wisconsin. |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2019 | Year Ended Dec. 31, 2018 | ||||||
Borrowing limit | $ | 3,600 | $ | 3,250 | ||||
Amount outstanding at period end | 933 | 1,038 | ||||||
Average amount outstanding | 1,303 | 788 | ||||||
Maximum amount outstanding | 1,780 | 1,349 | ||||||
Weighted average interest rate, computed on a daily basis | 2.62 | % | 2.34 | % | ||||
Weighted average interest rate at period end | 2.54 | 2.97 |
Base Capital Forecast | ||||||||||||||||||||||||
By Subsidiary (Millions of Dollars) | 2020 | 2021 | 2022 | 2023 | 2024 | 2020 - 2024 Total | ||||||||||||||||||
NSP-Minnesota | $ | 2,025 | $ | 1,580 | $ | 1,670 | $ | 1,800 | $ | 1,845 | $ | 8,920 | ||||||||||||
PSCo | 1,415 | 1,445 | 1,720 | 1,565 | 1,530 | 7,675 | ||||||||||||||||||
SPS | 1,025 | 530 | 700 | 750 | 800 | 3,805 | ||||||||||||||||||
NSP-Wisconsin | 250 | 320 | 345 | 350 | 425 | 1,690 | ||||||||||||||||||
Other (a) | (85 | ) | (65 | ) | 10 | 10 | 10 | (120 | ) | |||||||||||||||
Total capital expenditures | $ | 4,630 | $ | 3,810 | $ | 4,445 | $ | 4,475 | $ | 4,610 | $ | 21,970 |
Base Capital Forecast | ||||||||||||||||||||||||
By Function (Millions of Dollars) | 2020 | 2021 | 2022 | 2023 | 2024 | 2020 - 2024 Total | ||||||||||||||||||
Electric distribution | $ | 885 | $ | 1,140 | $ | 1,415 | $ | 1,470 | $ | 1,350 | $ | 6,260 | ||||||||||||
Electric transmission | 625 | 835 | 1,295 | 1,270 | 1,260 | 5,285 | ||||||||||||||||||
Electric generation | 480 | 595 | 580 | 780 | 1,000 | 3,435 | ||||||||||||||||||
Natural gas | 520 | 450 | 600 | 560 | 640 | 2,770 | ||||||||||||||||||
Other | 360 | 475 | 555 | 395 | 360 | 2,145 | ||||||||||||||||||
Renewables | 1,760 | 315 | — | — | — | 2,075 | ||||||||||||||||||
Total capital expenditures | $ | 4,630 | $ | 3,810 | $ | 4,445 | $ | 4,475 | $ | 4,610 | $ | 21,970 |
(Millions of Dollars) | ||||
Funding Capital Expenditures | ||||
Cash from Operations(a) | $ | 13,905 | ||
New Debt(b) | 6,665 | |||
Equity through the Dividend Reinvestment Program (DRIP) and Benefit Program | 400 | |||
Other equity | 1,000 | |||
Base Capital Expenditures 2020-2024 | $ | 21,970 | ||
Maturing Debt | $ | 3,245 |
Issuer | Security | Amount | Status | Tenor | Coupon | ||||||||
PSCo | First Mortgage Bonds | $ | 400 | million | Completed | 30 Year | 4.05 | % | |||||
Xcel Energy Inc. | Senior Unsecured Bonds | 130 | million | Completed | 9 Year | 4.00 | |||||||
SPS | First Mortgage Green Bonds | 300 | million | Completed | 30 Year | 3.75 | |||||||
PSCo | First Mortgage Green Bonds | 550 | million | Completed | 30 Year | 3.20 | |||||||
NSP-Minnesota | First Mortgage Green Bonds | 600 | million | Completed | 30 Year | 2.90 | |||||||
Xcel Energy Inc. | Senior Unsecured Bonds | 1 | billion | Pending | TBD | TBD |
• | Xcel Energy Inc. - approximately $700 million of senior unsecured bonds; |
• | NSP-Minnesota - approximately $550 million of first mortgage bonds; |
• | NSP-Wisconsin - approximately $100 million of first mortgage bonds; |
• | PSCo - approximately $750 million of first mortgage bonds; and |
• | SPS - approximately $300 million of first mortgage bonds. |
• | Constructive outcomes in all rate case and regulatory proceedings. |
• | Normal weather patterns for the remainder of the year. |
• | Weather-normalized retail electric sales are projected to be relatively consistent. |
• | Weather-normalized retail firm natural gas sales are projected to be within a range of 2.0% to 3.0%. |
• | Capital rider revenue is projected to increase $115 million to $125 million (net of PTCs). PTCs are credited to customers, through capital riders and reductions to electric margin. |
• | Purchase capacity costs are expected to decline $25 million to $30 million. |
• | O&M expenses are projected to decrease approximately 1.0% to 2.0%. |
• | Depreciation expense is projected to increase approximately $135 million to $145 million. Depreciation expense includes $34 million for the amortization of a prepaid pension asset at PSCo, which is tax reform related and will not impact earnings. |
• | Property taxes are projected to increase approximately $10 million to $20 million. |
• | Interest expense (net of AFUDC - debt) is projected to increase $80 million to $90 million. |
• | AFUDC - equity is projected to decrease approximately $20 million to $30 million. |
• | The ETR is projected to be approximately 8% to 10%. The ETR reflects benefits of PTCs which are credited to customers through electric margin and will not impact net income. |
• | Constructive outcomes in all rate case and regulatory proceedings. |
• | Normal weather patterns. |
• | Weather-normalized retail electric sales are projected to increase ~1%, including impact of leap year. |
• | Weather-normalized retail firm natural gas sales are projected to increase ~1%, including impact of leap year. |
• | Capital rider revenue is projected to increase $45 million to $55 million (net of PTCs). PTCs are credited to customers, through capital riders and reductions to electric margin. |
• | O&M expenses are projected to increase approximately 2%. |
• | Depreciation expense is projected to increase approximately $180 million to $190 million, which includes $30 million of nuclear decommission which is expected to be recovered from customers in rate filings. |
• | Property taxes are projected to increase approximately $25 million to $35 million. |
• | Interest expense (net of AFUDC - debt) is projected to increase $50 million to $60 million. |
• | AFUDC - equity is projected to increase approximately $20 million to $30 million. |
• | The ETR is projected to be approximately 0%. The ETR reflects benefits of PTCs which are credited to customers through electric margin and will not impact net income. |
(a) | Ongoing earnings is calculated using net income and adjusting for certain nonrecurring or infrequent items that are, in management’s view, not reflective of ongoing operations. Ongoing earnings could differ from those prepared in accordance with GAAP for unplanned and/or unknown adjustments. Xcel Energy is unable to forecast if any of these items will occur or provide a quantitative reconciliation of the guidance for ongoing EPS to corresponding GAAP EPS. |
• | Deliver long-term annual EPS growth of 5% to 7% off of a 2019 base of $2.60 per share, which represents the mid-point of the original 2019 guidance range of $2.55 to $2.65 per share; |
• | Deliver annual dividend increases of 5% to 7%; |
• | Target a dividend payout ratio of 60% to 70%; and |
• | Maintain senior secured debt credit ratings in the A range. |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference |
3.01* | Xcel Energy Inc. Form 8-K dated May 16, 2012 | 001-03034 | 3.01 | |
3.02* | Xcel Energy Inc. Form 8-K dated Feb. 17, 2016 | 001-03034 | 3.01 | |
NSP-Minnesota Form 8-K dated Sept. 10, 2019 | 001-31387 | 4.01 | ||
PSCo Form 8-K dated August 13, 2019 | 001-3280 | 4.01 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH | XBRL Schema | |||
101.CAL | XBRL Calculation | |||
101.DEF | XBRL Definition | |||
101.LAB | XBRL Label | |||
101.PRE | XBRL Presentation | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
XCEL ENERGY INC. | ||
Oct. 25, 2019 | By: | /s/ JEFFREY S. SAVAGE |
Jeffrey S. Savage | ||
Senior Vice President, Controller | ||
(Principal Accounting Officer) | ||
/s/ ROBERT C. FRENZEL | ||
Robert C. Frenzel | ||
Executive Vice President, Chief Financial Officer | ||
(Principal Financial Officer) |