Segments and Related Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

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.

•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 also presents All 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, investments in rental housing projects that qualify for low-income housing tax credits and the operations of MEC until July 2020.

Xcel Energy had equity method investments of $219 million and $208 million as of Dec. 31, 2022 and 2021, 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)	2022		2021		2020
Regulated Electric
Operating revenues — external	$	12,123	$	11,205	$	9,802
Intersegment revenue	2		2		2
Total revenues	$	12,125	$	11,207	$	9,804
Depreciation and amortization	2,122		1,855		1,673
Interest charges and financing costs	636		568		534
Income tax (benefit) expense	(162)		(96)		1
Net income	1,631		1,478		1,407
Regulated Natural Gas
Operating revenues — external	$	3,080	$	2,132	$	1,636
Intersegment revenue	2		2		1
Total revenues	$	3,082	$	2,134	$	1,637
Depreciation and amortization	276		254		252
Interest charges and financing costs	86		75		71
Income tax expense	68		54		17
Net income	264		231		190
All Other
Total revenues	$	107	$	94	$	88
Depreciation and amortization	15		12		23
Interest charges and financing costs	203		173		193
Income tax benefit	(41)		(28)		(24)
Net loss	(159)		(112)		(124)
Consolidated Total
Total revenues	$	15,314	$	13,435	$	11,529
Reconciling eliminations	(4)		(4)		(3)
Total operating revenues	$	15,310	$	13,431	$	11,526
Depreciation and amortization	2,413		2,121		1,948
Interest charges and financing costs	925		816		798
Income tax (benefit) expense	(135)		(70)		(6)
Net income	1,736		1,597		1,473