Xcel Energy 2006 Annual Report Download - page 17

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COMPANY OVERVIEW
Xcel Energy is a holding company, with subsidiaries engaged primarily in the utility business. In 2006, Xcel Energy’s continuing
operations included the activity of four wholly-owned utility subsidiaries that serve electric and natural gas customers in 8 states.
These utility subsidiaries are NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. These utilities serve customers in portions of
Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Along with WGI, an interstate
natural gas pipeline company, these companies comprise the continuing regulated utility operations.
Xcel Energy was incorporated under the laws of Minnesota in 1909. Xcel Energy’s executive offices are located at 414 Nicollet Mall,
Minneapolis, Minn. 55401. Its Web site address is www.xcelenergy.com. Xcel Energy makes available, free of charge through its
Web site, its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K as soon as reasonably
practicable after such material is electronically filed with or furnished to the SEC. In addition, the Xcel Energy Guidelines on
Corporate Governance and Code of Conduct also are available on its Web site.
NSP-Minnesota
NSP-Minnesota was incorporated in 2000 under the laws of Minnesota. NSP-Minnesota is an operating utility engaged in the
generation, purchase, transmission, distribution and sale of electricity in Minnesota, North Dakota and South Dakota. The wholesale
customers served by NSP-Minnesota comprised approximately 13 percent of the total sales in 2006. NSP-Minnesota also purchases,
transports, distributes and sells natural gas to retail customers and transports customer-owned natural gas in Minnesota and North
Dakota. NSP-Minnesota provides electric utility service to approximately 1.4 million customers and natural gas utility service to
approximately 0.5 million customers. Approximately 90 percent of NSP-Minnesota’s retail electric operating revenues was derived
from operations in Minnesota during 2006.
The electric production and transmission system of NSP-Minnesota is managed as an integrated system with that of NSP-Wisconsin,
jointly referred to as the NSP System. The electric production and transmission costs of the entire NSP System are shared by NSP-
Minnesota and NSP-Wisconsin. A FERC-approved agreement between the two companies, called the Interchange Agreement,
provides for the sharing of all costs of generation and transmission facilities of the NSP System, including capital costs.
NSP-Minnesota owns the following direct subsidiaries: United Power and Land Co., which holds real estate; and NSP Nuclear Corp.,
which holds NSP-Minnesota’s interest in the NMC.
NSP-Wisconsin
NSP-Wisconsin was incorporated in 1901 under the laws of Wisconsin. NSP-Wisconsin is an operating utility engaged in the
generation, transmission and distribution of electricity to approximately 245,000 customers in portions of northwestern Wisconsin and
in the western portion of the Upper Peninsula of Michigan. The wholesale customers served by NSP-Wisconsin comprised
approximately 8 percent of NSP-Wisconsin’s total sales in 2006. NSP-Wisconsin also purchases, transports, distributes and sells
natural gas to retail customers and transports customer-owned natural gas in the same service territory to approximately 100,000
customers. See the discussion of the integrated management of the electric production and transmission system of NSP-Wisconsin
under NSP-Minnesota, discussed previously. Approximately 97 percent of NSP-Wisconsin’s retail electric operating revenues was
derived from operations in Wisconsin during 2006.
NSP-Wisconsin owns the following direct subsidiaries: Chippewa and Flambeau Improvement Co., which operates hydro reservoirs;
Clearwater Investments Inc., which owns interests in affordable housing; and NSP Lands, Inc., which holds real estate.
PSCo
PSCo was incorporated in 1924 under the laws of Colorado. PSCo is an operating utility engaged primarily in the generation,
purchase, transmission, distribution and sale of electricity. PSCo also purchases, transports, distributes and sells natural gas to retail
customers and transports customer-owned natural gas. PSCo serves approximately 1.3 million electric customers and approximately
1.3 million natural gas customers in Colorado. The wholesale customers served by PSCo comprised approximately 22 percent of
PSCo’s total Kwh sales in 2006. All of PSCo’s retail electric operating revenues were derived from operations in Colorado during
2006.
PSCo owns the following direct subsidiaries: 1480 Welton, Inc., which owns certain real estate interests for PSCo; PSRI, which owns
and manages permanent life insurance policies on certain current and former employees; and Green and Clear Lakes Company, which
owns water rights. PSCo also holds a controlling interest in several other relatively small ditch and water companies.
SPS
SPS was incorporated in 1921 under the laws of New Mexico. SPS is an operating utility engaged primarily in the generation,
purchase, transmission, distribution and sale of electricity. SPS serves approximately 386,000 electric customers in portions of Texas