Xcel Energy 2002 Annual Report Download - page 81

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At Dec. 31, 2002, NSP-Minnesota had recorded and recovered in rates cumulative decommissioning accruals of $662 million. The
following table summarizes the funded status of NSP-Minnesota’s decommissioning obligation at Dec. 31, 2002:
(Thousands of dollars) 2002
Estimated decommissioning cost obligation from most recently approved study (1999 dollars) $ 958,266
Effect of escalating costs to 2002 dollars (at 4.35 percent per year) 130,573
Estimated decommissioning cost obligation in current dollars 1,088,839
Effect of escalating costs to payment date (at 4.35 percent per year) 805,435
Estimated future decommissioning costs (undiscounted) 1,894,274
Effect of discounting obligation (using risk-free interest rate) (828,087)
Discounted decommissioning cost obligation 1,066,187
Assets held in external decommissioning trust 617,048
Discounted decommissioning obligation in excess of assets currently held in external trust $ 449,139
Decommissioning expenses recognized include the following components:
(Thousands of dollars) 2002 2001 2000
Annual decommissioning cost accrual reported as depreciation expense:
Externally funded $51,433 $51,433 $51,433
Internally funded (including interest costs) (18,797) (17,396) (16,111)
Interest cost on externally funded decommissioning obligation (32) 4,535 5,151
Earnings from external trust funds 32 (4,535) (5,151)
Net decommissioning accruals recorded $32,636 $34,037 $35,322
Decommissioning and interest accruals are included with Accumulated Depreciation on the Consolidated Balance Sheet. Interest costs and
trust earnings associated with externally funded obligations are reported in Other Nonoperating Income on the statement of operations.
Negative accruals for internally funded portions in 2000, 2001 and 2002 reflect the impacts of the 1999 decommissioning study, which
has approved an assumption of 100-percent external funding of future costs. Previous studies assumed a portion was funded internally;
beginning in 2000, accruals are reversing the previously accrued internal portion and increasing the external portion prospectively.
notes to consolidated financial statements
xcel energy inc. and subsidiaries page 95