Xcel Energy 2011 Annual Report Download - page 125

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115
Dec. 31, 2010
Fair Value
Changes Recognized
During the Period in:
Pre-Tax Amounts
Reclassified into Income
During the Period from:
(Thousands of Dollars)
Accumulated
Other
Comprehensive
Loss
Regulatory
(Assets) and
Liabilities
Accumulated
Other
Comprehensive
Loss
Regulatory
Assets and
(Liabilities)
Pre-Tax Gains
Recognized
During the Period
in Income
Derivatives designated as cash
flow hedges
Interest rate
....................
$
(7,210
) $
- $
1,107 (a) $
- $
-
Vehicle fuel and other
commodity
...................
(238
) - 3,474 (e) - -
Total
..........................
$
(7,448
) $
- $
4,581 $
- $
-
Other derivative instruments
Trading commodity
.............
$
-
$
- $
- $
- $
11,004 (b)
Electric commodity
.............
-
3,969 - (21,840) (c)
-
Natural gas commodity
.........
-
(105,396) - 51,034 (d) -
Other
..........................
-
- - - 135 (b)
Total
..........................
$
-
$
(101,427) $
- $
29,194 $
11,139
(a) Recorded to interest charges.
(b) Recorded to electric operating revenues. Portions of these total gains and losses are subject to sharing with electric customers through margin-sharing
mechanisms and deducted from gross revenue, as appropriate.
(c) Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased
energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.
(d) Recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased
natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.
(e) Recorded to O&M expenses.
Credit Related Contingent Features — Contract provisions of the derivative instruments that the utility subsidiaries enter into
may require the posting of collateral or settlement of the contracts for various reasons, including if the applicable utility
subsidiary is unable to maintain its credit ratings. If the credit ratings of Xcel Energy Inc.’s subsidiaries were downgraded below
investment grade, contracts underlying $8.3 million and $5.6 million of derivative instruments in a gross liability position at Dec.
31, 2011 and Dec. 31, 2010, respectively, would have required Xcel Energy Inc.’s subsidiaries to post collateral or settle
applicable contracts, which would have resulted in payments to counterparties of $9.3 million and $9.8 million, respectively. At
Dec. 31, 2011 and Dec. 31, 2010, there was no collateral posted on these specific contracts.
Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions
allow counterparties to seek performance assurance, including cash collateral, in the event that a given utility subsidiary’s ability
to fulfill its contractual obligations is reasonably expected to be impaired. Xcel Energy had no collateral posted related to
adequate assurance clauses in derivative contracts as of Dec. 31, 2011 and Dec. 31, 2010.