Xcel Energy 2007 Annual Report Download - page 57

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or $1.30 per share. The following table provides a reconciliation of GAAP earnings and earnings per share to ongoing
earnings and earnings per share for 2007, 2006 and 2005.
2007 2006 2005
(Millions of Dollars)
Ongoing earnings ............................. $612.0 $548.2 $480.4
PSRI earnings ............................... 23.4 20.5 18.7
Interest, penalties and tax related to IRS COLI settlement .... (59.5) — —
Total continuing operations ..................... 575.9 568.7 499.1
Discontinued operations ......................... 1.4 3.1 13.9
Total GAAP earnings ........................ $577.3 $571.8 $513.0
2007 2006 2005
Ongoing earnings per share ....................... $1.43 $1.30 $1.15
PSRI earnings ............................... 0.05 0.05 0.05
Interest, penalties and tax related to IRS COLI settlement .... (0.13) — —
Earnings per share — continuing operations ........... 1.35 1.35 1.20
Discontinued operations ......................... — 0.01 0.03
Total GAAP earnings per share .................. $1.35 $1.36 $1.23
As a result of the termination of the COLI program, Xcel Energy’s management believes that ongoing earnings provide
a more meaningful comparison of earnings results between different periods in which the COLI program was in place
and is more representative of Xcel Energy’s fundamental core earnings power. Xcel Energy’s management uses ongoing
earnings internally for financial planning and analysis, for reporting of results to the Board of Directors, in determining
whether performance targets are met for performance-based compensation and when communicating its earnings
outlook to analysts and investors.
Income from discontinued operations in 2005 includes the positive impact of a $17 million tax benefit recorded to
reflect the final resolution of Xcel Energy’s divested interest in NRG. This was partially offset by Seren’s operating losses
during 2005.
Contribution to earnings
2007 2006 2005
Earnings Contribution by Company
NSP-Minnesota .............................. 45.9% 47.4% 46.6%
PSCo ..................................... 51.0 41.5 41.7
SPS...................................... 5.7 8.1 12.5
NSP-Wisconsin .............................. 6.5 7.4 5.0
Total regulated utility contribution ................. 109.1 104.4 105.8
Holding company and other subsidiaries ............... (9.1) (4.4) (5.8)
Total earnings contributions ..................... 100.0% 100.0% 100.0%
Weather — Xcel Energy’s earnings can be significantly affected by weather. Unseasonably hot summers or cold winters
increase electric and natural gas sales, but also can increase expenses. Unseasonably mild weather reduces electric and
natural gas sales, but may not reduce expenses. The impact of weather on earnings is based on the number of
customers, temperature variances and the amount of natural gas or electricity the average customer historically uses per
degree of temperature.
The following summarizes the estimated impact on the earnings of the utility subsidiaries of Xcel Energy due to
temperature variations from historical averages:
• Weather in 2007 increased earnings by an estimated 6 cents per share;
• Weather in 2006 increased earnings by an estimated 2 cents per share; and
• Weather in 2005 decreased earnings by an estimated 3 cents per share.
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