Xcel Energy 2007 Annual Report Download - page 17

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operating revenues were derived from operations in Wisconsin during 2007. Generally, NSP-Wisconsin’s earnings
comprise approximately 5 percent to 10 percent of Xcel Energy’s consolidated net income.
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 in Colorado. The wholesale customers served by
PSCo comprised approximately 24 percent of the total sales in 2007. PSCo also purchases, transports, distributes and
sells natural gas to retail customers and transports customer-owned natural gas. PSCo provides electric utility and
natural gas utility service to approximately 1.3 million customers. All of PSCo’s retail electric operating revenues were
derived from operations in Colorado during 2007. Generally, PSCo’s earnings comprise approximately 40 percent to
50 percent of Xcel Energy’s consolidated net income.
PSCo owns the following direct subsidiaries: 1480 Welton, Inc., which owns certain real estate interests for PSCo; and
Green and Clear Lakes Company, which owns water rights. PSCo also owned PSRI, which held certain former
employees’ life insurance policies. Following settlement with the IRS during 2007, such policies were terminated. 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 in portions of Texas and New Mexico. The
wholesale customers served by SPS comprised approximately 38 percent of the total sales in 2007. SPS provides electric
utility service to approximately 388,000 customers. Approximately 76 percent of SPS’ retail electric operating revenues
were derived from operations in Texas during 2007. Generally, SPS’ earnings comprise approximately 5 percent to
10 percent of Xcel Energy’s consolidated net income.
Other Subsidiaries
WGI was incorporated in 1990 under the laws of Colorado. WGI is a small interstate natural gas pipeline company
engaged in transporting natural gas from the PSCo system near Chalk Bluffs, Colo., to the Cheyenne system near
Cheyenne, Wyo.
In 1999, WYCO was jointly formed with a subsidiary of El Paso Corporation to develop and lease new natural gas
pipeline and compression facilities. Xcel Energy plans to invest approximately $151 million in WYCO between 2007
and 2010. The WYCO pipeline project is expected to begin operations in 2008 and the WYCO storage project is
expected to begin operations in 2009. The new pipeline and storage projects will be leased to Colorado Interstate Gas
Company, a subsidiary of El Paso Corporation. The terms of the lease agreement for the new pipeline and storage
projects will be based on FERC regulation and it is anticipated that they will be approved by the FERC as a
component of the certificate filing to be made by the Colorado Interstate Gas Company.
Xcel Energy Services Inc. is the service company for the Xcel Energy holding company system, where corporate
financing activity occurs. Generally, Xcel Energy Services, Inc.’s losses comprise approximately 5 percent to 10 percent
of Xcel Energy’s consolidated net income.
Xcel Energy’s nonregulated subsidiary in continuing operations is Eloigne, which invests in rental housing projects that
qualify for low-income housing tax credits.
See financial information regarding the segments of Xcel Energy’s business at Note 18 to the consolidated financial
statements.
In the past, Xcel Energy had several other subsidiaries that were sold or divested. For more information regarding Xcel
Energy’s discontinued operations, see Note 3 to the consolidated financial statements.
Xcel Energy conducts its utility business in the following reportable segments: regulated electric utility, regulated natural
gas utility and all other. Comparative segment revenues, income from continuing operations and related financial
information for fiscal years 2007, 2006 and 2005 are set forth in Note 18 to the accompanying consolidated financial
statements.
Xcel Energy focuses on growing through investments in electric and natural gas rate base to meet growing customer
demands, environmental and renewable energy initiatives and to maintain or increase reliability and quality of service to
customers. Xcel Energy files periodic rate cases with state and federal regulators to earn a return on its investments and
recover costs of operations. For more information regarding Xcel Energy’s capital expenditures, see Note 15 to the
consolidated financial statements.
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