Xcel Energy 2009 Annual Report Download - page 18

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 20 percent of its total sales in 2009. 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 2009. Generally, PSCo’s
earnings range from approximately 45 percent to 55 percent of Xcel Energy’s consolidated net income.
PSCo owns the following direct subsidiaries: 1480 Welton, Inc. and United Water Company, both of which own
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 36 percent of its total sales in 2009. SPS provides electric
utility service to approximately 396,000 retail customers in Texas and New Mexico. Approximately 74 percent of SPS’
retail electric operating revenues were derived from operations in Texas during 2009. Generally, SPS’ earnings range
from approximately 5 percent to 10 percent of Xcel Energy’s consolidated net income.
In November 2009, SPS announced it had entered into an agreement to sell certain SPS electric distribution assets in
Lubbock, Texas to Lubbock Power and Light (LP&L) for a price of $87 million. SPS’ retail sales in Lubbock are
3 percent of SPS’ total energy sales. SPS anticipates it will sell the same amount of power to the city under existing
wholesale power arrangements with the West Texas Municipal Power Agency.
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 CIG to develop and lease natural gas pipeline, storage, and
compression facilities. Xcel Energy has a 50 percent ownership interest in WYCO. WYCO’s High Plains gas pipeline
began operations in 2008 and its Totem gas storage facilities began operations in 2009. The gas pipeline and storage
facilities are leased under a FERC-approved agreement to CIG.
Xcel Energy Services Inc. is the service company for the Xcel Energy holding company.
Xcel Energy’s nonregulated subsidiary in continuing operations is Eloigne, which invests in rental housing projects that
qualify for low-income housing tax credits.
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, 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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