Xcel Energy 2012 Annual Report Download - page 104

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During 2012, Xcel Energy Inc. and its utility subsidiaries completed the following financings:
• In June 2012, SPS issued an additional $100 million of its 4.50 percent first mortgage bonds due Aug. 15, 2041.
Including the $200 million of this series previously issued in August 2011, total principal outstanding for this series is
$300 million.
• In August 2012, NSP-Minnesota issued $300 million of 2.15 percent first mortgage bonds due Aug. 15, 2022, and $500
million of 3.40 percent first mortgage bonds due Aug. 15, 2042.
• In September 2012, PSCo issued $300 million of 2.25 percent first mortgage bonds due Sept. 15, 2022, and $500 million
of 3.60 percent first mortgage bonds due Sept. 15, 2042.
• In October 2012, NSP-Wisconsin issued $100 million of 3.70 percent first mortgage bonds due Oct. 1, 2042.
During 2011, Xcel Energy Inc. and its utility subsidiaries completed the following financings:
• In September 2011, Xcel Energy Inc. issued $250 million of 4.80 percent senior unsecured notes due Sept. 15, 2041.
• In August 2011, PSCo issued $250 million of 4.75 percent first mortgage bonds due Aug. 15, 2041.
• In August 2011, SPS issued $200 million of 4.50 percent first mortgage bonds due Aug. 15, 2041.
Deferred Financing Costs — Other assets included deferred financing costs of approximately $85 million and $75 million, net of
amortization, at Dec. 31, 2012 and 2011, respectively. Xcel Energy is amortizing these financing costs over the remaining
maturity periods of the related debt.
Capital Stock — Xcel Energy Inc. has authorized 7,000,000 shares of preferred stock with a $100 par value. At Dec. 31, 2012
and 2011, there were no shares of preferred stock outstanding.
In 2011, Xcel Energy Inc. redeemed all series of its preferred stock at an aggregate purchase price of $108 million, plus accrued
dividends. The redemption premium of $3.3 million and accrued dividends are reflected as reductions of Xcel Energy’s earnings
available to common shareholders in the consolidated statement of income for 2011.
The charters of PSCo and SPS authorize each subsidiary to issue 10 million shares of preferred stock with par values of $0.01 and
$1.00 per share, respectively. However, at Dec. 31, 2012 and 2011, there were no preferred shares of subsidiaries outstanding.
Xcel Energy Inc. has authorized 1,000,000,000 shares of common stock with a $2.50 par value. Outstanding shares at Dec. 31,
2012 and 2011 were 487,959,516 and 486,493,933, respectively.
Dividend and Other Capital-Related Restrictions — Xcel Energy Inc.’s Articles of Incorporation place restrictions on the
amount of common stock dividends it can pay when preferred stock is outstanding. As there was no preferred stock outstanding at
Dec. 31, 2012, the restrictions did not place any effective limit on Xcel Energy Inc.’s ability to pay dividends.
Xcel Energy depends on its subsidiaries to pay dividends. All of Xcel Energy Inc.’s utility subsidiaries’ dividends are subject to
the FERC’s jurisdiction under the Federal Power Act, which prohibits the payment of dividends out of capital accounts; payment
of dividends is allowed out of retained earnings only. Due to certain restrictive covenants, Xcel Energy Inc. is required to be
current on particular interest payments before dividends can be paid.
As discussed below, the most restrictive dividend limitations for NSP-Minnesota, NSP-Wisconsin and SPS are imposed by their
respective state regulatory commission. PSCo’s most restrictive dividend limitation is imposed by its credit facility, which
requires that the debt-to-total capitalization ratio be less than or equal to 65 percent.
NSP-Minnesota’s first mortgage indenture places certain restrictions on the amount of cash dividends it can pay to Xcel Energy
Inc., the holder of its common stock. Even with these restrictions, NSP-Minnesota could have paid more than $1.3 billion and
$1.2 billion in additional cash dividends to Xcel Energy Inc. at Dec. 31, 2012 and 2011, respectively.
NSP-Minnesota’s state regulatory commissions indirectly limit the amount of dividends NSP-Minnesota can pay by requiring an
equity-to-total capitalization ratio between 47.07 percent and 57.53 percent. NSP-Minnesota’s equity-to-total capitalization ratio
was 52.1 percent at Dec. 31, 2012. Total capitalization for NSP-Minnesota was $7.75 billion at Dec. 31, 2012, which did not
exceed the limit of $8.25 billion.