Segments and Related Information

12 Months Ended

Dec. 31, 2019

Xcel Energy evaluates performance by each utility subsidiary based on profit or loss generated from the product or service provided, including 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. 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; and


•	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.

Xcel Energy presents Other, which includes operating segments, with revenues below the necessary quantitative thresholds. Those operating 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 $155 million and $141 million as of Dec. 31, 2019 and 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:



(Millions of Dollars)	2019			2018			2017
Regulated Electric
Operating revenues from external customers	$	9,575		$	9,719		$	9,676
Intersegment revenue	1			1			2
Total revenues	$	9,576		$	9,720		$	9,678
Depreciation and amortization	1,535			1,421			1,298
Interest charges and financing costs	500			449			449
Income tax expense	125			187			528
Net income	1,288			1,177			1,066
Regulated Natural Gas
Operating revenues from external customers	$	1,868		$	1,739		$	1,650
Intersegment revenue	2			2			1
Total revenues	$	1,870		$	1,741		$	1,651
Depreciation and amortization	219			212			174
Interest charges and financing costs	69			61			57
Income tax expense	48			28			23
Net income	195			187			182
Other
Total operating revenue	$	86		$	79		$	78
Depreciation and amortization	11			9			7
Interest charges and financing costs	167			142			122
Income tax (benefit)	(45		)	(34		)	(9		)
Net (loss)	(111		)	(103		)	(100		)

Consolidated Total
Total revenue	$	11,532		$	11,540		$	11,407
Reconciling eliminations	(3		)	(3		)	(3		)
Consolidated total revenue	$	11,529		$	11,537		$	11,404
Depreciation and amortization	1,765			1,642			1,479
Interest charges and financing costs	736			652			628
Income tax expense	128			181			542
Net income	1,372			1,261			1,148