Xcel Energy 2007 Annual Report Download - page 14

ECA Retail electric commodity adjustment. The ECA, effective Jan. 1, 2007, is an incentive adjustment
mechanism that compares actual fuel and purchased energy expense in a calendar year to a
benchmark formula. It encourages cost reductions through purchases of economical short-term
energy. The ECA also provides for an $11.25 million cap on any cost sharing over or under an
allowed ECA formula rate. The ECA mechanism will be revised quarterly and interest will accrue
monthly on the average deferred balance. The ECA will expire at the earlier of rates taking effect
after Comanche 3 is placed in service or Dec. 31, 2010.
FCA Fuel clause adjustment. A clause included in electric rate schedules that provides for monthly rate
adjustments to reflect the actual cost of electric fuel and purchased energy compared to a prior
forecast. The difference between the electric costs collected through the FCA rates and the actual
costs incurred in a month are collected or refunded in a subsequent period.
GCA Gas cost adjustment. Allows PSCo to recover its actual costs of purchased natural gas and natural
gas transportation. The GCA is revised monthly to coincide with changes in purchased gas costs.
PCCA Purchased capacity cost adjustment. Allows PSCo to recover from customers purchased capacity
payments to power suppliers under specifically identified power purchase agreements not included
in the determination of PSCo’s base electric rates or other recovery mechanisms. This clause
expired in 2006. A new PCCA clause became effective Jan. 1, 2007, which permits recovery from
retail customers for all purchased capacity payments to power suppliers. Capacity charges are not
included in PSCo’s base electric rates or other recovery mechanisms.
PGA Purchased gas adjustment. A clause included in NSP-Minnesota’s and NSP-Wisconsin’s retail
natural gas rate schedules that provides for prospective monthly rate adjustments to reflect the
forecasted cost of purchased natural gas and natural gas transportation. The annual difference
between the natural gas costs collected through PGA rates and the actual natural gas costs is
collected or refunded over the subsequent period.
QSP Quality of service plan. Provides for bill credits to retail customers if the utility does not achieve
certain operational performance targets and/or specific capital investments for reliability. The
current QSP for PSCo and SPS electric utility expired in 2006. A new QSP for the PSCo electric
utility provides for bill credit to customers based upon operational performance standards through
Dec. 31, 2010. The QSP for the PSCo natural gas utility expires December 2007.
SCA Steam cost adjustment. Allows PSCo to recover the difference between its actual cost of fuel and
the amount of these costs recovered under its base steam service rates. The SCA is revised
annually to coincide with changes in fuel costs.
TCR Transmission cost recovery adjustment. Allows NSP-Minnesota to recover the cost of transmission
facilities not included in the determination of NSP-Minnesota’s base electric rates in retail electric
rates in Minnesota. The TCR was approved by the MPUC in 2006 to be effective in 2007, and
will be revised annually as new transmission investments and costs are incurred.
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
CO2Carbon dioxide
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.
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
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