Xcel Energy 2006 Annual Report Download - page 102

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92
Hedging Contracts — The fair value of qualifying cash flow hedges at Dec. 31, 2006 and 2005 was $17.6 million and $4.1 million,
respectively.
Financial Instruments — Xcel Energy and its subsidiaries had interest rate swaps outstanding with a fair value that was a liability of
approximately $20.9 million at Dec. 31, 2006. On Dec. 31, 2005, subsidiaries of Xcel Energy had interest rate swaps outstanding with
a fair value that was a liability of approximately $44.7 million.
12. Financial Instruments
The estimated Dec. 31 fair values of Xcel Energy’s financial instruments are as follows:
2006 2005
Carrying
Amount Fair Value
Carrying
Amount Fair Value
(Thousands of Dollars)
Nuclear decommissioning fund............................. $1,200,688 $1,200,688 $1,047,592 $1,047,592
Other investments........................................ $ 29,209 $ 28,962 $ 24,286 $ 24,050
Long-term debt, including current portion.................... $6,786,049 $7,324,218 $6,733,284 $7,245,346
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. The fair values of Xcel Energy’s debt securities in an external nuclear decommissioning fund and other
investments 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, 2006 and 2005. 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.
The following tables provide the external decommissioning fund’s approximate gains, losses and proceeds from the sale of securities
for the years ended Dec. 31:
2006 2005 2004
(Thousands of Dollars)
Realized gains............................... $310,066 $ 8,967 $ 16,578
Realized losses .............................. $ 32,412 $ 8,990 $ 20,180
Proceeds from sale of securities................. $958,294 $489,697 $223,135
2006 2005
(Thousands of Dollars)
Unrealized gains........................................... $41,355 $253,991
Unrealized losses........................................... $
—
$ 10,558
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.