Xcel Energy 2008 Annual Report Download - page 17

derived from operations in Wisconsin during 2008. Generally, NSP-Wisconsin’s earnings range from 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 22 percent of its total sales in 2008. PSCo also purchases, transports, distributes and
sells natural gas to retail customers and transports customer-owned natural gas. PSCo provides electric utility service to
approximately 1.4 million customers 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 2008. Generally, PSCo’s
earnings range from approximately 40 percent to 55 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 owns 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 39 percent of its total sales in 2008. SPS provides electric
utility service to approximately 393,000 customers. Approximately 77 percent of SPS’ retail electric operating revenues
were derived from operations in Texas during 2008. Generally, SPS’ earnings range from 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 formed as a joint venture with a subsidiary of El Paso Corporation to develop and lease natural
gas pipeline, storage, and compression facilities. Xcel Energy has a 50 percent ownership interest in WYCO. Xcel
Energy has invested approximately $128 million as of Dec. 31, 2008, for construction of WYCO’s High Plains gas
pipeline and the related Totem gas storage facilities. Xcel Energy plans to invest an additional $46 million in these
projects in 2009 and 2010. The High Plains gas pipeline began operations in late 2008 and the Totem gas storage
facilities are expected to begin operations in 2009. The gas pipeline and storage facilities will be leased under a
FERC-approved agreement to Colorado Interstate Gas Company, a subsidiary of El Paso Corporation.
Xcel Energy Services Inc. is the service company for the Xcel Energy holding company system.
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 in Note 20 to the consolidated financial
statements.
Xcel Energy had several other subsidiaries that were sold or divested. For more information regarding Xcel Energy’s
discontinued operations, see Note 4 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 are set forth in Note 20 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 or establishes formula rate or automatic rate adjustment mechanisms
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 17 to the consolidated financial statements.
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