Xcel Energy 2011 Annual Report Download - page 136

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126
Committed minimum payments under these obligations are as follows:
(Millions of Dollars)
IBM
Agreement
Accenture
Agreement
2012................................................................
....................
$
19.2
$
8.7
2013................................................................
....................
17.6
8.4
2014................................................................
....................
17.
2
8.2
2015................................................................
....................
11.9
8.2
2016 and thereafter ................................................................
......
-
8.1
Guarantees and Indemnifications
Xcel Energy Inc. and its subsidiaries provide guarantees and bond indemnities under specified agreements or transactions. The
guarantees and bond indemnities issued by Xcel Energy Inc. guarantee payment or performance by its subsidiaries. As a result, Xcel
Energy Inc.’s exposure under the guarantees and bond indemnities is based upon the net liability of the relevant subsidiary under the
specified agreements or transactions. Most of the guarantees and bond indemnities issued by Xcel Energy Inc. and its subsidiaries
limit the exposure to a maximum amount stated in the guarantees and bond indemnities. As of Dec. 31, 2011, Xcel Energy Inc. and
its subsidiaries have no assets held as collateral related to their guarantees, bond indemnities and indemnification agreements.
Guarantees and Surety Bonds
The following table presents guarantees and bond indemnities issued and outstanding, including those guarantees related to Xcel
Energy Wholesales Group Inc., Seren, UE, Viking, and Xcel Energy Argentina Inc., which are components of discontinued
operations, as of Dec. 31, 2011:
(Millions of Dollars) Guarantor Guarantee
Amount
Current
Exposure
Triggering
Event
Guarantee of the indemnification obligations of Xcel Energy
Wholesale Group Inc. under a stock purchase agreement (e)
......
Xcel Energy Inc.
$ 17.5 $ 17.5 (b)
Guarantee of the indemnification obligations of Xcel Energy
Argentina Inc. under a stock purchase agreement (d)
.............
Xcel Energy Inc.
14.7 - (b)
Guarantee of the indemnification obligations of various Xcel
Energy Inc. subsidiaries under different asset purchase
agreements (d) ................................
...............
Xcel Energy Inc.
25.5 - (b)
Guarantee of customer loans for the Farm Rewiring Program (f)
....
NSP-Wisconsin 1.0 0.5 (c)
Guarantee of the indemnification obligations of Xcel Energy
Services Inc. under the aircraft leases (g)
.......................
Xcel Energy Inc.
8.3 - (a)
Guarantee benefiting Young Gas Storage Company Ltd. (f)
........
Xcel Energy Inc.
0.5 - (a)
Total guarantees issued ................................
....
$ 67.5 $ 18.0
Guarantee performance and payment of surety bonds for Xcel
Energy Inc. and its subsidiaries (j) (k)
...........................
Xcel Energy Inc.
$ 31.2 (h) (i)
(a) Nonperformance and/or nonpayment.
(b) Losses caused by default in performance of covenants or breach of any warranty or representation in the purchase agreement.
(c) The debtor becomes the subject of bankruptcy or other insolvency proceedings.
(d) The term of this guarantee is continuing. Certain representations and warranties relating to due organization, transaction authorization and tax matters
survive indefinitely. As of Dec. 31, 2011, no claims have been made.
(e) The indemnification provisions of the guarantee expired in 2010. As of Dec. 31, 2011, there is a pending indemnification claim causing the guarantee
liability to remain outstanding until the final resolution.
(f) The term of this guarantee is continuing.
(g) The term of this guarantee expires in 2012 when the associated leases expire. At the time of renewal of the aircraft leases, the related guarantees will also be
renewed.
(h) Due to the magnitude of projects associated with the surety bonds, the total current exposure of this indemnification cannot be determined. Xcel Energy Inc.
believes the exposure to be significantly less than the total amount of the outstanding bonds.
(i) Failure of Xcel Energy Inc. or one of its subsidiaries to perform under the agreement that is the subject of the relevant bond. In addition, per the indemnity
agreement between Xcel Energy Inc. and the various surety companies, the surety companies have the discretion to demand that collateral be posted.
(j) Xcel Energy Inc. has on ongoing agreement to indemnify an insurance company in connection with surety bonds they may issue or have issued for UE up to
$80 million. Xcel Energy Inc.’s indemnification will be triggered only in the event that UE has failed to meet its obligations to the surety company.
(k) The expiration date of the surety bonds is project based. Accordingly, the surety bonds expire in conjunction with the completion of the related projects.