Xcel Energy 2008 Annual Report Download - page 115

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Common Stock Dividends Per Share — Historically, Xcel Energy has paid quarterly dividends to its shareholders.
Dividends on common stock are paid as declared by the Board of Directors. Dividends declared per share for the
quarters of 2008, 2007 and 2006 are:
Dividends Per Share 2008 2007 2006
First quarter .................................... $0.2300 $0.2225 $0.2150
Second quarter .................................. 0.2375 0.2300 0.2225
Third quarter ................................... 0.2375 0.2300 0.2225
Fourth quarter ................................... 0.2375 0.2300 0.2225
$0.9425 $0.9125 $0.8825
Dividend and Other Capital-Related Restrictions — The Articles of Incorporation of Xcel Energy place restrictions on
the amount of common stock dividends it can pay when preferred stock is outstanding. Under the provisions, dividend
payments may be restricted if Xcel Energy’s capitalization ratio (on a holding company basis only and not on a
consolidated basis) is less than 25 percent. For these purposes, the capitalization ratio is equal to (i) common stock plus
surplus divided by (ii) the sum of common stock plus surplus plus long-term debt. Based on this definition, the
capitalization ratio at Dec. 31, 2008 and 2007, was 84 percent and 85 percent, respectively. Therefore, the restrictions
do not place any effective limit on Xcel Energy’s ability to pay dividends because the restrictions are only triggered
when the capitalization ratio is less than 25 percent or will be reduced to less than 25 percent through dividends (other
than dividends payable in common stock), distributions or acquisitions of Xcel Energy common stock.
In addition, NSP-Minnesota’s first mortgage indenture places certain restrictions on the amount of cash dividends it can
pay to Xcel Energy, the holder of its common stock. Even with these restrictions, NSP-Minnesota could have paid more
than $999 million and $946 million in additional cash dividends on common stock at Dec. 31, 2008 and 2007,
respectively.
The issuance of securities by Xcel Energy generally is not subject to regulatory approval. However, utility financings and
certain intra-system financings are subject to the jurisdiction of the applicable state regulatory commissions and/or the
FERC under the Federal Power Act.
• PSCo currently has authorization to issue up to $250 million of long-term debt and up to $800 million of
short-term debt at any one time outstanding. PSCo has filed an application with the CPUC to increase the
long-term debt authorization to $800 million.
• SPS currently has authorization to issue up to $400 million in short-term debt.
• NSP-Wisconsin currently has authorization to issue up to $250 million of long-term debt and $100 million of
short-term debt.
• NSP-Minnesota has authorization to issue long-term securities provided the equity ratio remain between
46.26 percent and 56.54 percent and to issue short-term debt provided it does not exceed 15 percent of total
capitalization. Total capitalization for NSP-Minnesota cannot exceed $7.5 billion.
Xcel Energy believes these authorizations are adequate and will seek additional authorization when necessary, however,
there can be no assurance that additional authorization will be granted on the timeframe or in the amounts requested.
The FERC has granted a blanket authorization for certain intra-system financings involving holding companies. The
utility subsidiaries participate in the money pool, in amounts ranging from $250 million for each of NSP-Minnesota
and PSCo, to $100 million for SPS and $100 million for NSP-Wisconsin to borrow only from NSP-Minnesota.
NSP-Wisconsin is not authorized and does not participate in the money pool.
Stockholder Protection Rights Agreement — In June 2001, Xcel Energy adopted a Stockholder Protection Rights
Agreement (Rights Agreement) pursuant to which each share of Xcel Energy’s common stock included one shareholder
protection right. On Dec. 11, 2008, Xcel Energy amended the Rights Agreement, changing the expiration date of the
agreement from June 28, 2011 to Dec. 11, 2008. Accordingly, the Rights Agreement expired on Dec. 11, 2008, and all
associated rights have expired.
10. Share-Based Compensation
Stock Options — Xcel Energy has incentive compensation plans under which stock options and other performance
incentives are awarded to key employees. In the past, Xcel Energy issued stock options, but has not granted stock
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