Xcel Energy 2006 Annual Report Download - page 45

35
Electric utility overhead and underground transmission and distribution lines (measured in conductor miles) at Dec. 31, 2006:
Conductor Miles NSP-Minnesota NSP-Wisconsin PSCo SPS
500 KV ................................................... 2,917 — — —
345 KV ................................................... 5,648 1,312 957 5,139
230 KV ................................................... 1,827 — 10,787 9,420
161 KV ................................................... 295 1,494 — —
138 KV ................................................... — — 92 —
115 KV ................................................... 6,484 1,529 4,851 10,835
Less than 115 KV ........................................... 81,274 31,698 71,174 22,429
Electric utility transmission and distribution substations at Dec. 31, 2006:
NSP-Minnesota NSP-Wisconsin PSCo SPS
Quantity.................................... 364 203 209 441
Gas utility mains at Dec. 31, 2006:
Miles NSP-Minnesota NSP-Wisconsin PSCo WGI
Transmission.............................. 120
—
2,303 12
Distribution............................... 9,321 2,147 20,599
—
Item 3 — Legal Proceedings
In the normal course of business, various lawsuits and claims have arisen against Xcel Energy. Management, after consultation with
legal counsel, has recorded an estimate of the probable cost of settlement or other disposition for such matters.
Nuclear Waste Disposal Litigation — The federal government has the responsibility to dispose of domestic spent nuclear fuel and
other high-level radioactive substances. The Nuclear Waste Policy Act (the Act) requires the DOE to implement this disposal
program. This includes the siting, licensing, construction and operation of a permanent repository for domestically produced spent
nuclear fuel from civilian nuclear power reactors and other high-level radioactive substances. The Act and contracts between the DOE
and domestic utilities obligated the DOE to begin to dispose of these materials by Jan. 31, 1998. The federal government has
designated the site as Yucca Mountain in Nevada. The nuclear waste disposal program has resulted in extensive litigation.
On June 8, 1998, NSP-Minnesota filed a complaint in the U.S. Court of Federal Claims against the United States requesting breach of
contract damages, past and as projected into the future, in excess of $1 billion for the DOE’s failure to meet the 1998 deadline. NSP-
Minnesota has demanded damages consisting of the added costs of storage of spent nuclear fuel at the Prairie Island and Monticello
nuclear generating plants, costs related to the Private Fuel Storage, LLC and certain costs relating to the 1994 and 2003 state
legislation relating to the storage of spent nuclear fuel at Prairie Island. On July 31, 2001, the Court granted NSP-Minnesota’s motion
for partial summary judgment on liability. A subsequent court decision determined that the utilities were precluded from making a
claim for future damages, a utility could claim damages up to some point prior to the trial, and separate claims would have to be made
in the future as damages accumulated. In response to this decision, NSP-Minnesota filed an amended complaint seeking damages
through Dec. 31, 2004.
NSP-Minnesota currently claims total damages in excess of $100 million through Dec. 31, 2004 (damages after 2004 will be claimed
in subsequent proceedings). A trial on the damages issue commenced on Oct. 24, 2006, and concluded on Dec. 11, 2006. NSP-
Minnesota’s initial post-trial brief was filed pursuant to the court’s scheduling order on Feb. 9, 2007 and additional briefs and reply
briefs are expected to be filed by April 30, 2007. Closing arguments are set for May 31, 2007.
On July 9, 2004, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision in consolidated cases challenging
regulations and decisions on the federal nuclear waste program. The Court of Appeals rejected challenges by the state of Nevada and
other intervenors with respect to most of the NRC’s challenged repository licensing regulations, the congressional resolution
approving Yucca Mountain as the site of the permanent repository, and the DOE and presidential actions leading to the approval of the
Yucca Mountain site. The Court of Appeals vacated the 10,000 year compliance period adopted by EPA regulations governing spent
nuclear fuel disposal at Yucca Mountain and incorporated in the NRC regulations. Xcel Energy has not ascertained the impact of the
decision on its nuclear operations and storage of spent nuclear fuel; however, the decision may result in additional delay and
uncertainty around disposal of spent nuclear fuel. In July 2006 the Office of Civilian Radioactive Waste Management indicated that
under the “best achievable repository construction schedule”, Yucca Mountain would be able to begin accepting spent nuclear fuel in
March 2017.
Lamb County Electric Cooperative — On July 24, 1995, LCEC petitioned the PUCT for a cease and desist order against SPS alleging
that SPS was unlawfully providing service to oil field customers in LCEC’s certificated area. On May 23, 2003, the PUCT issued an
order denying LCEC’s petition based on its determination that SPS was granted a certificate in 1976 to serve the disputed customers.