Xcel Energy 2000 Annual Report Download - page 16

costs. SPS is the initial borrower under this credit agreement; however, at the time of separation of the generation assets, the obligations under this credit
agreement will be assumed by a newly formed generation company. See Note 12 to the Financial Statements for more information on restructuring.
In February 2001, SPS renewed a $300 million, 364-day revolving credit facility. This facility provides for direct borrowings, but its primary purpose is to
support the issuance of commercial paper.
In January 2001, NRG entered into a $600-million bridge credit facility to provide financing for its LS Power acquisition. It is expected to be repaid with the
proceeds of NRG’s planned common stock and equity unit offerings. The credit facility expires Dec. 31, 2001.
NRG has a $500-million revolving credit facility under a commitment fee arrangement that matures in March 2001. This facility provides short-term financing
in the form of bank loans. At Dec. 31, 2000, NRG had $8 million outstanding under this facility.
NRG has a $125-million syndicated letter of credit facility that matures in November 2003. At Dec. 31, 2000, NRG had $58 million outstanding under
this facility.
4. LONG-TERM DEBT
Except for SPS and other minor exclusions, all property of Xcel Energy’s utility subsidiaries is subject to the liens of its first mortgage indentures, which are
contracts between the companies and their bond holders. In addition, certain SPS payments under its pollution control obligations are pledged to secure
obligations of the Red River Authority of Texas.
The annual sinking-fund requirements of Xcel Energy’s utility subsidiaries’ first mortgage indentures are the amounts necessary to redeem 1 to 1.5 percent
of the highest principal amount of each series of first mortgage bonds at any time outstanding, excluding series issued for pollution control and resource
recovery financings and certain other series totaling $2 billion.
NSP-Minnesota, NSP-Wisconsin, PSCo and Cheyenne expect to satisfy substantially all of their sinking-fund obligations in accordance with the terms of
their respective indentures through the application of property additions. SPS has no significant sinking-fund requirements.
NSP-Minnesota’s 2011 and 2019 series first mortgage bonds have variable interest rates, which currently change at various periods up to 270 days,
based on prevailing rates for certain commercial paper securities or similar issues. The 2011 series bonds are redeemable upon seven-days notice at the
option of the bondholder. NSP-Minnesota also is potentially liable for repayment of the 2019 series when the bonds are tendered, which occurs each time
the variable interest rates change. The principal amount of all of these variable rate bonds outstanding represents potential short-term obligations and,
therefore, is reported under current liabilities on the balance sheets.
Maturities and sinking-fund requirements for Xcel Energy’s long-term debt are:
•2001 $605 million
•2002 $311 million
•2003 $663 million
•2004 $267 million
•2005 $286 million
5. PREFERRED STOCK
At Dec. 31, 2000, Xcel Energy had various preferred stock series, which were callable at prices per share ranging from $102 to $103.75, plus accrued dividends.
PSCo has 10 million shares of cumulative preferred stock, $0.01 par value, authorized. At Dec. 31, 2000 and 1999, PSCo had no shares of preferred
stock outstanding.
SPS has 10 million shares of cumulative preferred stock, $1 par value, authorized. At Dec. 31, 2000 and 1999, SPS had no shares of preferred stock outstanding.
6. MANDATORILY REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY TRUSTS
In 1996, SPS Capital I, a wholly owned, special-purpose subsidiary trust of SPS, issued $100 million of 7.85 percent trust preferred securities that mature in
2036. Distributions paid by the subsidiary trust on the preferred securities are financed through interest payments on debentures issued by SPS and held by
the subsidiary trust, which are eliminated in consolidation. The securities are redeemable at the option of SPS after October 2001, at 100 percent of the
principal amount plus accrued interest. Distributions and redemption payments are guaranteed by SPS.
In 1997, NSP Financing I, a wholly owned, special-purpose subsidiary trust of NSP-Minnesota, issued $200 million of 7.875 percent trust preferred securities
that mature in 2037. Distributions paid by the subsidiary trust on the preferred securities are financed through interest payments on debentures issued by
NSP-Minnesota and held by the subsidiary trust, which are eliminated in consolidation. The preferred securities are redeemable at $25 per share beginning
in 2002. Distributions and redemption payments are guaranteed by NSP-Minnesota.
XCEL ENERGY INC. AND SUBSIDIARIES
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS