Xcel Energy 2005 Annual Report Download - page 39

Act, it may be necessary for Xcel Energy and the utility subsidiaries to submit its existing money pool arrangement to the FERC for its
approval. Xcel Energy and the utility subsidiaries are presently evaluating the situation.
Registration Statements Xcel Energy’s Articles of Incorporation authorize the issuance of 1 billion shares of common stock. As of Dec. 31, 2005,
Xcel Energy had approximately 403 million shares of common stock outstanding. In addition, Xcel Energy’s Articles of Incorporation authorize
the issuance of 7 million shares of $100 par value preferred stock. On Dec. 31, 2005, Xcel Energy had approximately 1 million shares of
preferred stock outstanding. Xcel Energy and its subsidiaries have the following registration statements on file with the SEC, pursuant to
which they may sell, from time to time, securities:
– In February 2002, Xcel Energy filed a $1 billion shelf registration with the SEC. Xcel Energy may issue debt securities, common stock and rights
to purchase common stock under this shelf registration. Xcel Energy has approximately $482.5 million remaining under this registration. Xcel
Energy has approximately $400 million remaining under the $1 billion unsecured debt shelf registration filed with the SEC in 2000.
– On March 22, 2005, NSP-Minnesota filed a shelf registration statement with the SEC to register an additional $1 billion of secured or unsecured
debt securities, which may be issued from time to time in the future. This registration became effective on April 7, 2005, and supplements
the $40 million of debt securities previously registered with the SEC. After issuance of $250 million of first mortgage bonds in July 2005,
as discussed later, $790 million remains available under the currently effective registration statement.
– PSCo has an effective shelf registration statement with the SEC under which $800 million of secured first collateral trust bonds or unsecured
senior debt securities were registered. PSCo has approximately $225 million remaining under this registration.
FUTURE FINANCING PLANS
Xcel Energy generally expects to fund its operations and capital investments primarily through internally generated funds. Xcel Energy
plans to refinance existing long-term debt or scheduled long-term debt maturities at each of the regulated operating utilities based on
prevailing market conditions. To facilitate potential long-term debt issuances at the utility subsidiaries, SPS intends to file a long-term
debt shelf registration statement with the SEC for up to $500 million in 2006, and NSP-Wisconsin may file a long-term debt shelf registration
for up to $100 million.
OFF-BALANCE-SHEET ARRANGEMENTS
Xcel Energy does not have any off-balance-sheet arrangements that have or are reasonably likely to have a current or future effect on financial
condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that
is material to investors.
EARNINGS GUIDANCE
Xcel Energy’s 2006 earnings per share from continuing operations guidance and key assumptions are detailed in the following table.
2006 Diluted Earnings Per Share Range
Utility operations $1.25 – $1.35
COLI tax benefit 0.10
Other nonregulated subsidiaries (0.10)
Xcel Energy Continuing Operations $1.25 – $1.35
Key Assumptions for 2006:
– Normal weather patterns are experienced;
– Reasonable rate recovery is approved in the Minnesota electric rate case;
– Weather-adjusted retail electric utility sales grow by approximately 1.3 percent to 1.7 percent;
– Weather-adjusted retail natural gas utility sales grow by approximately 0.0 percent to 1.0 percent;
– Short-term wholesale and commodity trading margins are projected to be within a range of approximately $30 million to $50 million;
– Other utility operating and maintenance expenses increase between 3 percent and 4 percent from 2005 levels;
– Depreciation expense increases approximately $100 million to $110 million, which includes increases in decommissioning accruals that are
expected to be recovered through rates approved in the Minnesota electric rate case;
– Interest expense increases approximately $10 million to $15 million from 2005 levels;
– Allowance for funds used during construction recorded for equity financing is expected to increase approximately $10 million to $15 million
from 2005 levels;
– Xcel Energy continues to recognize COLI tax benefits;
– The effective tax rate for continuing operations is approximately 27 percent to 29 percent; and
– Average common stock and equivalents total approximately 428 million shares, based on the “ If Converted” method for convertible notes.
XCEL ENERGY 2005 ANNUAL REPORT 37
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS