Segment Information

6 Months Ended

Jun. 30, 2019

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 - 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.

Xcel Energy had equity investments in unconsolidated subsidiaries of $145 million and $141 million as of June 30, 2019 and Dec. 31, 2018, 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. As an integrated electric and natural gas utility, Xcel Energy operates significant assets that are not dedicated to a specific business segment. 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.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

Xcel Energy’s segment information for the three and six months ended June 30:



	Three Months Ended June 30
(Millions of Dollars)	2019			2018
Regulated Electric
Operating revenues from external customers	$	2,249		$	2,348
Intersegment revenue	1			—
Total revenues	$	2,250		$	2,348
Net income	249			264
Regulated Natural Gas
Operating revenues from external customers	$	308		$	292
Net income	23			27
All Other
Total operating revenue	$	20		$	18
Net loss	(34		)	(26		)

Consolidated Total
Total revenue	$	2,578		$	2,658
Reconciling eliminations	(1		)	—
Consolidated total revenue	$	2,577		$	2,658
Net income	238			265



	Six Months Ended June 30
(Millions of Dollars)	2019			2018
Regulated Electric
Operating revenues from external customers	$	4,574		$	4,617
Intersegment revenue	1			1
Total revenues	$	4,575		$	4,618
Net income	482			483
Regulated Natural Gas
Operating revenues from external customers	$	1,102		$	954
Intersegment revenue	1			1
Total revenues	$	1,103		$	955
Net income	128			121
All Other
Total operating revenue	$	42		$	38
Net loss	(57		)	(48		)

Consolidated Total
Total revenue	$	5,720		$	5,611
Reconciling eliminations	(2		)	(2		)
Consolidated total revenue	$	5,718		$	5,609
Net income	553			556