Xcel Energy 2012 Annual Report Download - page 17

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7
The management of the electric production and transmission system of NSP-Wisconsin is integrated with NSP-Minnesota.
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 13 percent of its total KWh sold in 2012. 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 2012. Although
PSCo’s large commercial and industrial electric retail customers are comprised of many diversified industries, a significant
portion of PSCo’s large commercial and industrial electric sales include customers in the following industries: fabricated metal
products, as well as oil and gas extraction. For small commercial and industrial customers, significant electric retail sales include
customers in the following industries: real estate and dining establishments. 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. 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 33 percent of its total
KWh sold in 2012. SPS provides electric utility service to approximately 381,000 retail customers in Texas and New Mexico.
Approximately 74 percent of SPS’ retail electric operating revenues were derived from operations in Texas during 2012.
Although SPS’ large commercial and industrial electric retail customers are comprised of many diversified industries, a
significant portion of SPS’ large commercial and industrial electric sales include customers in the following industries: oil and gas
extraction, as well as petroleum and coal products. For small commercial and industrial customers, significant electric retail sales
include customers in the following industries: oil and gas extraction and crop related agricultural industries. Generally, SPS’
earnings contribute approximately 5 percent to 15 percent of Xcel Energy’s consolidated net income.
Other Subsidiaries
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. The gas pipeline and storage facilities are leased under a FERC-
approved agreement to CIG.
Xcel Energy Services Inc. is the service company for Xcel Energy Inc.
Xcel Energy Inc.’s nonregulated subsidiary 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 16 to the consolidated financial statements for further discussion relating to comparative segment
revenues, income from continuing operations and related financial information.