Xcel Energy 2004 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2004 Xcel Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

NOTES to CONSOLIDATED FINANCIAL STATEMENTS
Xcel Energy Annual Report 2004
72
15. FINANCIAL INSTRUMENTS
The estimated Dec. 31 fair values of Xcel Energy’s financial instruments, separately identifying amounts that are within continuing operations and within
discontinued operations, are as follows:
2004 2003
Carrying Carrying
(Thousands of dollars) Amount Fair Value Amount Fair Value
Continuing Operations
Long-term investments $ 961,583 $ 961,473 $ 828,802 $ 827,375
Long-term debt, including current portion $6,716,675 $7,391,616 $6,653,808 $7,337,597
Discontinued Operations
Long-term debt, including current portion $ 24,800 $ 26,333 $ 25,000 $ 25,860
The fair value of cash and cash equivalents, notes and accounts receivable and notes and accounts payable are not materially different from their carrying
amounts because of the short-term nature of these instruments or because the stated rates approximate market rates. The fair values of Xcel Energy’s
long-term investments, mainly debt securities in an external nuclear decommissioning fund, are estimated based on quoted market prices for those
or similar investments. The fair values of Xcel Energy’s long-term debt is estimated based on the quoted market prices for the same or similar issues,
or the current rates for debt of the same remaining maturities and credit quality.
The fair value estimates presented are based on information available to management as of Dec. 31, 2004 and 2003. These fair value estimates have
not been comprehensively revalued for purposes of these Consolidated Financial Statements since that date, and current estimates of fair values may
differ significantly.
Xcel Energy provides guarantees and bond indemnities supporting certain of its subsidiaries. The guarantees issued by Xcel Energy guarantee payment
or performance by its subsidiaries under specified agreements or transactions. As a result, Xcel Energy’s exposure under the guarantees is based upon
the net liability of the relevant subsidiary under the specified agreements or transactions. Most of the guarantees issued by Xcel Energy limit the exposure
of Xcel Energy to a maximum amount stated in the guarantee. Unless otherwise indicated below, the guarantees require no liability to be recorded,
contain no recourse provisions and require no collateral. On Dec. 31, 2004, Xcel Energy had the following amount of guarantees and exposure under
these guarantees, including those related to e prime Energy Marketing, Inc., e prime Florida, Inc., Cheyenne and Seren, which are components of
discontinued operations: