Segments and Related Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segments and Related Information

The regulated electric utility operating results of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS, as well as the regulated natural gas utility operating results of NSP-Minnesota, NSP-Wisconsin and PSCo are each separately and regularly reviewed by Xcel Energy’s chief operating decision maker. Xcel Energy evaluates performance by each utility subsidiary based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.

Xcel Energy has the following reportable segments: regulated electric utility, regulated natural gas utility and all other.

• Xcel Energy’s 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. Regulated electric utility also includes wholesale commodity and trading operations.

• Xcel Energy’s regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of Minnesota, Wisconsin, North Dakota, Michigan and Colorado.

• Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category. Those primarily include steam revenue, appliance repair services, nonutility 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.

Xcel Energy had equity investments in unconsolidated subsidiaries of $132.8 million and $130.0 million as of Dec. 31, 2016 and 2015, respectively, included in the natural gas utility and all other segments.

Asset and capital expenditure information is not provided for Xcel Energy’s reportable segments because as an integrated electric and natural gas utility, Xcel Energy operates significant assets that are not dedicated to a specific business segment, and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

To report income from operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment. However, some costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators. A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

The accounting policies of the segments are the same as those described in Note 1.

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
2016
Operating revenues from external customers	$	9,499,781	$	1,531,412	$	75,727		$	—		$	11,106,920
Intersegment revenues	1,327		1,110		—			(2,437		)	—
Total revenues	$	9,501,108	$	1,532,522	$	75,727		$	(2,437	)	$	11,106,920
Depreciation and amortization	$	1,135,584	$	160,293	$	7,326		$	—		$	1,303,203
Interest charges and financing costs	449,916		53,913		116,050			—			619,879
Income tax expense (benefit)	566,957		76,378		(62,118		)	—			581,217
Net income (loss)	1,066,758		124,250		(67,629		)	—			1,123,379

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
2015
Operating revenues from external customers	$	9,275,986	$	1,672,081	$	76,419		$	—		$	11,024,486
Intersegment revenues	1,511		1,251		—			(2,762		)	—
Total revenues	$	9,277,497	$	1,673,332	$	76,419		$	(2,762	)	$	11,024,486
Depreciation and amortization	$	962,565	$	154,892	$	7,067		$	—		$	1,124,524
Interest charges and financing costs	425,999		49,763		93,272			—			569,034
Income tax expense (benefit)	508,568		60,545		(26,394		)	—			542,719
Net income (loss)	921,403		106,023		(42,941		)	—			984,485

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
2014
Operating revenues from external customers	$	9,465,890	$	2,142,738	$	77,507		$	—		$	11,686,135
Intersegment revenues	1,774		5,893		—			(7,667		)	—
Total revenues	$	9,467,664	$	2,148,631	$	77,507		$	(7,667	)	$	11,686,135
Depreciation and amortization	$	866,746	$	144,661	$	7,638		$	—		$	1,019,045
Interest charges and financing costs	397,824		43,940		86,442			—			528,206
Income tax expense (benefit)	512,551		76,418		(65,154		)	—			523,815
Net income	890,535		128,559		2,212			—			1,021,306