Xcel Energy 2009 Annual Report Download - page 72

Holding Company and Other Results
The following tables summarize the net income and earnings per share contributions of the continuing operations of
Xcel Energy’s nonregulated businesses and Holding Company results:
Contribution to Xcel Energy’s Earnings
2009 2008 2007
(Millions of Dollars)
Financing costs and preferred dividends — Holding Company ..... $(65.6) $(69.7) $(71.9)
Eloigne ....................................... (4.7) 1.5 2.6
Holding Company, taxes and other results ................. 7.8 5.3 9.2
Total Holding Company and other loss — continuing operations . $(62.5) $(62.9) $(60.1)
Contribution to Xcel Energy’s Earnings Per Share
2009 2008 2007
(Dollars per Share)
Financing costs and preferred dividends — Holding Company ..... $(0.14) $(0.15) $(0.15)
Eloigne ....................................... (0.01) — —
Holding Company, taxes and other results ................. 0.01 0.01 0.03
Total Holding Company and other loss per share — continuing
operations .................................. $(0.14) $(0.14) $(0.12)
Financing Costs and Preferred Dividends — Holding Company and other results include interest expense and the
earnings per share impact of preferred dividends, which are incurred at the Xcel Energy and intermediate holding
company levels, and are not directly assigned to individual subsidiaries.
Eloigne — Eloigne contributed a loss of approximately $4.7 million which was primarily attributed to the sale of
property in 2009.
Factors Affecting Results of Continuing Operations
Xcel Energy’s utility revenues depend on customer usage, which varies with weather conditions, general business
conditions and the cost of energy services. Various regulatory agencies approve the prices for electric and natural gas
service within their respective jurisdictions and affect Xcel Energy’s ability to recover its costs from customers. The
historical and future trends of Xcel Energy’s operating results have been, and are expected to be, affected by a number
of factors, including those listed below.
General Economic Conditions
Economic conditions may have a material impact on Xcel Energy’s operating results. Management cannot predict the
impact of a prolonged economic recession, fluctuating energy prices, terrorist activity, war or the threat of war.
However, Xcel Energy could experience a material adverse impact to its results of operations, future growth or ability to
raise capital resulting from a sustained general slowdown in future economic growth or a significant increase in interest
rates.
Fuel Supply and Costs
Xcel Energy’s operating utilities have varying dependence on coal, natural gas and uranium. Changes in commodity
prices are generally recovered through fuel recovery mechanisms and have very little impact on earnings. However,
availability of supply, the potential implementation of a carbon tax and unanticipated changes in regulatory recovery
mechanisms could impact our operations. See additional discussion of fuel supply and costs under Item 1 — Electric
Utility Operations.
Pension Plan Costs and Assumptions
Xcel Energy has significant net pension and postretirement benefit costs that are measured using actuarial valuations.
Inherent in these valuations are key assumptions including discount rates and expected return on plan assets. Xcel
Energy evaluates these key assumptions at least annually by analyzing current market conditions, which include changes
in interest rates and market returns. Changes in the related net pension and postretirement benefits costs and funding
requirements may occur in the future due to changes in assumptions. For further discussion and a sensitivity analysis on
these assumptions, see ‘‘Employee Benefits’’ under Critical Accounting Policies and Estimates.
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