Xcel Energy 2010 Annual Report Download - page 19

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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 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 2010. 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 2010. Generally,
PSCo’s earnings contribute 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; and Green and Clear Lakes Company, which owns water rights and certain real estate interests. 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 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 2010. SPS provides electric utility service to approximately 375,000 retail customers in Texas and New Mexico.
Approximately 74 percent of SPS’ retail electric operating revenues were derived from operations in Texas during 2010.
Generally, SPS’ earnings contribute approximately 5 percent to 10 percent of Xcel Energy’s consolidated net income.
In October 2010, SPS sold certain electric distribution assets in Lubbock, Texas to Lubbock Power and Light (LP&L) for $87
million. This sale resulted in a pre-tax gain of approximately $20 million which will be shared with retail customers in Texas, and
has been deferred as a regulatory liability pending the determination of the sharing by the PUCT. SPS’ retail sales in Lubbock
were approximately 3 percent of SPS’ total energy sales in both 2010 and 2009. SPS anticipates it will sell the same amount of
power to the city under existing wholesale power arrangements with WTMPA.
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.
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 conducts its utility business in the following reportable segments: regulated electric utility, regulated natural gas
utility and all other. See Note 17 to the consolidated financial statements for further discussion relating to comparative segment
revenues, income from continuing operations and related financial information.