Revenues

Xcel Energy principally generates revenue from the transmission, distribution and sale of electricity and the transportation, distribution and sale of natural gas to wholesale and retail customers. Performance obligations related to the sale of energy are satisfied as energy is delivered to customers. Xcel Energy recognizes revenue in an amount that corresponds directly to the price of the energy delivered to the customer. The measurement of energy sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated, and the corresponding unbilled revenue is recognized. Contract terms are generally short-term in nature, and as such Xcel Energy does not recognize a separate financing component of its collections from customers. Xcel Energy presents its revenues net of any excise or other fiduciary-type taxes or fees.

NSP-Minnesota participates in MISO, and SPS participates in SPP. Xcel Energy’s utility subsidiaries recognize sales to both native load and other end use customers on a gross basis in electric revenue and cost of sales. Revenues and charges for short term wholesale sales of excess energy transacted through RTOs are also recorded on a gross basis. Other revenues and charges related to participating and transacting in RTOs are recorded on a net basis in cost of sales.

Xcel Energy Inc.’s utility subsidiaries have various rate-adjustment mechanisms in place that provide for the recovery of natural gas, electric fuel and purchased energy costs. These cost-adjustment tariffs may increase or decrease the level of revenue collected from customers and are revised periodically for differences between the total amount collected under the clauses and the costs incurred. When applicable, under governing regulatory commission rate orders, fuel cost over-recoveries (the excess of fuel revenue billed to customers over fuel costs incurred) are deferred as regulatory liabilities and under-recoveries (the excess of fuel costs incurred over fuel revenues billed to customers) are deferred as regulatory assets.

Certain rate rider mechanisms qualify as alternative revenue programs under GAAP. These mechanisms arise from costs imposed upon the utility by action of a regulator or legislative body related to an environmental, public safety or other mandate. When certain criteria are met (including collection within 24 months), revenue is recognized equal to the revenue requirement, which may include return on rate base items and incentives. The mechanisms are revised periodically for differences between the total amount collected and the revenue recognized, which may increase or decrease the level of revenue collected from customers. Alternative revenue is recorded on a gross basis and is disclosed separate from revenue from contracts with customers in the period earned.

In the following tables, revenue is classified by the type of goods/services rendered and market/customer type. The tables also reconcile revenue to the reportable segments.



	Three Months Ended March 31, 2018
(Millions of Dollars)	Regulated Electric		Regulated Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	687	$	390	$	9	$	1,086
Commercial and industrial (C&I)	1,112		207		7		1,326
Other	33		—		1		34
Total retail	1,832		597		17		2,446
Wholesale	188		—		—		188
Transmission	123		—		—		123
Other	39		28		—		67
Total revenue from contracts with customers	2,182		625		17		2,824
Alternative revenue and other	88		37		2		127
Total revenues	$	2,270	$	662	$	19	$	2,951



	Three Months Ended March 31, 2017
(Millions of Dollars)	Regulated Electric		Regulated Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	685	$	374	$	8	$	1,067
C&I	1,148		195		9		1,352
Other	32		—		1		33
Total retail	1,865		569		18		2,452
Wholesale	181		—		—		181
Transmission	121		—		—		121
Other	25		25		—		50
Total revenue from contracts with customers	2,192		594		18		2,804
Alternative revenue and other	107		32		3		142
Total revenues	$	2,299	$	626	$	21	$	2,946