Xcel Energy 2012 Annual Report Download - page 155

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(e) For the cancelled Prairie Island EPU project, NSP-Minnesota plans to address recovery of incurred costs to date in the next rate case for each of the NSP-
Minnesota jurisdictions and to file a request with the FERC for approval to recover a portion of the costs from NSP-Wisconsin through the Interchange
Agreement. NSP-Wisconsin plans to seek cost recovery in a future rate case. In December 2012, EPU costs incurred to date were compared to the
discounted value of the estimated future rate recovery based on past jurisdictional precedent, and as a result, NSP-Minnesota recognized a $10.1 million
pretax charge.
The components of regulatory liabilities shown on the consolidated balance sheets at Dec. 31, 2012 and 2011 are:
(Thousands of Dollars)
See Note(s)
Remaining
Amortization Period
Dec. 31, 2012 Dec. 31, 2011
Regulatory Liabilities
Current Noncurrent Current Noncurrent
Plant removal costs ............ 1, 13 Plant lives $ - $
922,963
$ - $ 945,377
Deferred electric, gas and steam
production costs .............
1
Less than one
year
90,454
-
108,057 -
DOE settlement ............... 13 One to two years 22,700
1,131
94,734 -
Investment tax credit deferrals . . 1, 6 Various -
59,052
- 61,710
Deferred income tax adjustment 1, 6 Various -
44,667
- 46,835
Conservation programs (b) ...... 1, 12
Less than one
year
6,292
-
15,898 -
Contract valuation adjustments (a) 1, 11
Term of related
contract
29,431
11,159
25,268 15,450
Gain from asset sales .......... 18 One to three years 7,318
10,311
5,780 18,696
Renewable resources and
environmental initiatives .....
12, 13 Various 256
1,412
4,358 8,525
Low income discount program..
Less than one
year
6,164
-
8,696 347
Other ......................... Various 6,243
9,244
12,304 4,594
Total regulatory liabilities .... $ 168,858 $
1,059,939
$ 275,095 $ 1,101,534
(a) Includes the fair value of certain long-term PPAs used to meet energy capacity requirements and valuation adjustments on natural gas commodity purchases.
(b) Includes costs for conservation programs, as well as incentives allowed in certain jurisdictions.
At Dec. 31, 2012, approximately $275 million of Xcel Energy's regulatory assets represented past expenditures not currently
earning a return. This amount primarily includes Prairie Island EPU costs, recoverable purchased natural gas and electric energy
costs and certain expenditures associated with renewable resources and environmental initiatives.
16. Segments and Related Information
The regulated electric utility operating results of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS, as well as the regulated natural
gas utility operating results of NSP-Minnesota, NSP-Wisconsin and PSCo are each separately and regularly reviewed by Xcel
Energy’s chief operating decision maker. Xcel Energy evaluates performance by each utility subsidiary based on profit or loss
generated from the product or service provided. These segments are managed separately because the revenue streams are
dependent upon regulated rate recovery, which is separately determined for each segment.
Xcel Energy has the following reportable segments: regulated electric utility, regulated natural gas utility and all other.
• Xcel Energy’s regulated electric utility segment generates, transmits, and distributes electricity in Minnesota, Wisconsin,
Michigan, North Dakota, South Dakota, Colorado, Texas and New Mexico. In addition, this segment includes sales for
resale and provides wholesale transmission service to various entities in the United States. Regulated electric utility also
includes commodity trading operations.
• Xcel Energy’s regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of
Minnesota, Wisconsin, North Dakota, Michigan and Colorado.
• Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore
included in the all other category. Those primarily include steam revenue, appliance repair services, nonutility real estate
activities, revenues associated with processing solid waste into refuse-derived fuel and investments in rental housing
projects that qualify for low-income housing tax credits.
Xcel Energy had equity investments in unconsolidated subsidiaries of $91.2 million and $92.7 million as of Dec. 31, 2012 and
2011, respectively, included in the regulated natural gas utility segment.