Xcel Energy 2008 Annual Report Download - page 67

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2007 vs. 2006
(Millions of Dollars)
PSCo electric retail rate increase .......................................... $112
Retail sales growth (excluding weather impact) ................................. 49
MERP rider ...................................................... 29
Miscellaneous revenues (partially offset in operating & maintenance expense) .............. 18
Estimated impact of weather ............................................ 16
Transmission revenues, net of expense ...................................... 15
Conservation and non-fuel riders (partially offset in operating & maintenance expense) ........ 13
Firm wholesale ..................................................... 11
SPS regulatory settlements, including fuel cost recovery ............................ 1
Purchased capacity costs ............................................... (27)
NSP-Wisconsin fuel cost recovery ......................................... (14)
Trading ......................................................... (13)
Other, including sales mix and other fuel recovery ............................... (4)
Total increase in electric margin ......................................... $206
2007 Comparison to 2006 — The increase in electric margin for the year was due to PSCo electric rate increase, the
impact of favorable temperatures and weather-normalized retail sales growth. These items were partially offset by
purchased power costs, NSP-Wisconsin fuel cost recovery and other items.
Natural Gas Revenues and Margins
The following table details the changes in natural gas revenues and margin. The cost of natural gas tends to vary with
changing sales requirements and the unit cost of wholesale natural gas purchases. However, due to purchased natural gas
cost-recovery mechanisms for sales to retail customers, fluctuations in the wholesale cost of natural gas have little effect
on natural gas margin.
2008 2007 2006
(Millions of Dollars)
Natural gas revenues ............................... $ 2,443 $ 2,112 $ 2,156
Cost of natural gas sold and transported ................... (1,833) (1,548) (1,645)
Natural gas margin .............................. $ 610 $ 564 $ 511
The following summarizes the components of the changes in natural gas revenues and margin for the years ended
Dec. 31:
Natural Gas Revenues
2008 vs. 2007 2007 vs. 2006
(Millions of Dollars)
Purchased natural gas cost recovery ................................ $282 $ (128)
Base rate changes ........................................... 24 21
Estimated impact of weather .................................... 10 46
Sales growth (excluding weather impact) ............................. 5 2
Conservation revenues ........................................ 3 2
Revenue due to leap year (weather normalized) ......................... 1 —
Transportation ............................................. 1 6
Other, including late payment fees ................................. 5 7
Total increase (decrease) in natural gas revenues ....................... $331 $ (44)
2008 Comparison to 2007 — Natural gas revenues increased primarily due to higher natural gas costs in 2008, which
are recovered from customers. Final gas rates were effective for Wisconsin in January 2008 and Minnesota in February
2008. Phase I rates were effective in Colorado since July 2007.
2007 Comparison to 2006 — Natural gas revenues decreased primarily due to lower natural gas costs in 2007, which
are recovered from customers. Interim rate increases were effective for Minnesota in January 2007 and base rates
increased for Colorado and North Dakota customers in July 2007.
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