Xcel Energy 2006 Annual Report Download - page 15

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Other Terms and Abbreviations
AFDC Allowance for funds used during construction. Defined in regulatory accounts as a non-cash accounting
convention that represents the estimated composite interest costs of debt and a return on equity funds used to
finance construction. The allowance is capitalized in property accounts and included in income.
ALJ Administrative law judge. A judge presiding over regulatory proceedings.
ARO Asset Retirement Obligation
BART Best Available Retrofit Technology
C20 Derivatives Implementation Group of FASB Implementation Issue No. C20. Clarified the terms clearly and
closely related to normal purchases and sales contracts, as included in SFAS No. 133.
CAIR Clean Air Interstate Rule
CAMR Clean Air Mercury Rule
CAPCD Colorado Air Pollution Control Division
COLI Corporate-owned life insurance
decommissioning The process of closing down a nuclear facility and reducing the residual radioactivity to a level that permits the
release of the property and termination of license. Nuclear power plants are required by the NRC to set aside funds
for their decommissioning costs during operation.
deferred energy costs The amount of fuel costs applicable to service rendered in one accounting period that will not be reflected in
billings to customers until a subsequent accounting period.
derivative instrument A financial instrument or other contract with all three of the following characteristics:
• An underlying and a notional amount or payment provision or both,
• Requires no initial investment or an initial net investment that is smaller than would be required for other
types of contracts that would be expected to have a similar response to changes in market factors, and
• Terms require or permit a net settlement, can be readily settled net by means outside the contract or
provides for delivery of an asset that puts the recipient in a position not substantially different from net
settlement
distribution The system of lines, transformers, switches and mains that connect electric and natural gas transmission systems to
customers.
EPS Earnings per share of common stock outstanding
ERISA Employee Retirement Income Security Act
FASB Financial Accounting Standards Board
FTRs Financial Transmission Rights
GAAP Generally accepted accounting principles
generation The process of transforming other forms of energy, such as nuclear or fossil fuels, into electricity. Also, the
amount of electric energy produced, expressed in megawatts (capacity) or megawatt hours (energy).
JOA Joint operating agreement among the utility subsidiaries
LIBOR London Interbank Offered Rate
LNG Liquefied natural gas. Natural gas that has been converted to a liquid.
mark-to-market The process whereby an asset or liability is recognized at fair value.
MERP Metropolitan Emissions Reduction Project
MGP Manufactured gas plant
MISO Midwest Independent Transmission System Operator, Inc.
Moody’s Moody’s Investor Services Inc.
MPCA Minnesota Pollution Control Agency
native load The customer demand of retail and wholesale customers whereby a utility has an obligation to serve: e.g., an
obligation to provide electric or natural gas service created by statute or long-term contract.
natural gas A naturally occurring mixture of gases found in porous geological formations beneath the earth’s surface, often in
association with petroleum. The principal constituent is methane.
nonutility All items of revenue, expense and investment not associated, either by direct assignment or by allocation, with
providing service to the utility customer.
PBRP Performance-based regulatory plan. An annual electric earnings test, an electric quality of service plan and a
natural gas quality of service plan established by the CPUC.
PFS Private Fuel Storage, LLC. A consortium of private parties (including NSP-Minnesota) working to establish a
private facility for interim storage of spent nuclear fuel.
PJM PJM Interconnection, LLC
PUHCA Public Utility Holding Company Act of 1935. Enacted to regulate the corporate structure and financial operations
of utility holding companies.
PUHCA 2005 Public Utility Holding Company Act of 2005. Successor to the Public Utility Holding Company Act of 1935.
Eliminates most federal regulation of utility holding companies. Transfers other regulatory authority from the SEC
to the FERC.
QF Qualifying facility. As defined under the Public Utility Regulatory Policies Act of 1978, a QF sells power to a
regulated utility at a price equal to that which it would otherwise pay if it were to build its own power plant or buy
power from another source.
rate base The investor-owned plant facilities for generation, transmission and distribution and other assets used in supplying
utility service to the consumer.