Xcel Energy 2003 Annual Report Download - page 44

60 XCEL ENERGY 2003 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. MANDATORILY REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY TRUSTS
Southwestern Public Service Capital I, a wholly owned, special-purpose subsidiary trust of SPS, had $100 million of 7.85-percent trust preferred
securities issued and outstanding that were originally scheduled to mature in 2036. Distributions paid by the subsidiary trust on the preferred securities
were financed through interest payments on debentures issued by SPS and held by the subsidiary trust, which were eliminated in consolidation.
Distributions and redemption payments were guaranteed by SPS. The securities were redeemable at the option of SPS after October 2001, at 100 percent
of the principal amount plus accrued interest. On Oct. 15, 2003, SPS redeemed the $100 million of trust preferred securities. A certificate of cancellation
was filed to dissolve SPS Capital I on Jan. 5, 2004.
NSP Financing I, a wholly owned, special-purpose subsidiary trust of NSP-Minnesota, had $200 million of 7.875-percent trust preferred securities
issued and outstanding that were originally scheduled to mature in 2037. Distributions paid by the subsidiary trust on the preferred securities were
financed through interest payments on debentures issued by NSP-Minnesota and held by the subsidiary trust, which were eliminated in consolidation.
Distributions and redemption payments were guaranteed by NSP-Minnesota. The preferred securities were redeemable at NSP Financing I’s option
at $25 per share, beginning in 2002. On July 31, 2003, NSP-Minnesota redeemed the $200 million of trust preferred securities. A certificate of cancellation
was filed to dissolve NSP Financing I on Sept. 15, 2003.
PSCo Capital Trust I, a wholly owned, special-purpose subsidiary trust of PSCo, had $194 million of 7.60-percent trust preferred securities issued and
outstanding that were originally scheduled to mature in 2038. Distributions paid by the subsidiary trust on the preferred securities were financed through
interest payments on debentures issued by PSCo and held by the subsidiary trust, which were eliminated in consolidation. Distributions and redemption
payments were guaranteed by PSCo. The securities were redeemable at the option of PSCo after May 2003, at 100 percent of the principal amount
outstanding plus accrued interest. On June 30, 2003, PSCo redeemed the $194 million of trust preferred securities. A certificate of cancellation was
filed to dissolve PSCo Capital Trust I on Dec. 29, 2003.
The mandatorily redeemable preferred securities of subsidiary trusts were consolidated in Xcel Energy’s Consolidated Balance Sheets. Distributions paid
to preferred security holders were reflected as a financing cost in the Consolidated Statements of Operations, along with interest charges.
9. JOINT PLANT OWNERSHIP
Following are the investments by Xcel Energy’s subsidiaries in jointly owned plants and the related ownership percentages as of Dec. 31, 2003:
Plant in Accumulated Construction
(Thousands of dollars) Service Depreciation Work in Progress Ownership %
NSP-Minnesota
Sherco Unit 3 $617,343 $311,252 $500 59.0
Transmission facilities, including substations 2,761 843 – 59.0
Total NSP-Minnesota $620,104 $312,095 $ 500
PSCo
Hayden Unit 1 $ 85,828 $ 40,764 $ – 75.5
Hayden Unit 2 79,818 43,834 76 37.4
Hayden Common Facilities 27,614 4,010 1,017 53.1
Craig Units 1 & 2 58,224 30,876 80 9.7
Craig Common Facilities Units 1, 2 & 3 19,109 9,246 9,935 6.5–9.7
Transmission Facilities, including substations 112,594 40,779 18,380 42.0–73.0
Total PSCo $383,187 $169,509 $29,488
NSP-Minnesota is part owner of Sherco 3, an 860-megawatt coal-fueled electric generating unit. NSP-Minnesota is the operating agent under the joint
ownership agreement. NSP-Minnesota’s share of operating expenses and construction expenditures are included in the applicable utility components of
operating expenses. PSCo’s assets include approximately 320 megawatts of jointly owned generating capacity. PSCo’s share of operating expenses and
construction expenditures are included in the applicable utility components of operating expenses. Each of the respective owners is responsible for
the issuance of its own securities to finance its portion of the construction costs.
10. INCOME TAXES
Xcel Energy’s share of NRG results for current and prior periods is now shown as a component of discontinued operations, due to NRG’s emergence
from bankruptcy in December 2003 and Xcel Energy’s corresponding divestiture of its ownership interest in NRG. Accordingly, Xcel Energy’s tax
benefits related to its investment in NRG are reported in discontinued operations.
Xcel Energy’s federal net operating loss and tax credit carry forwards are estimated to be $742 million and $70 million, respectively, after considering a
two-year carry back of the loss. The carry forward periods expire in 2023. Xcel Energy also has a net operating loss carry forward in some states. The
state carry forward periods expire between 2018 and 2023.