Xcel Energy 2013 Annual Report Download - page 113

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(Thousands of Dollars) Plant in Service Accumulated Depreciation CWIP Ownership %
NSP-Wisconsin
Electric Transmission:
CapX2020 Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,337 $ 4,659 $ 30,199 77.9%
La Crosse, Wis. to Madison, Wis. . . . . . . . . . . . . . . . . . . . . . . . . . — — 5,431 50.0
Total NSP-Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,337 $ 4,659 $ 35,630
(Thousands of Dollars) Plant in Service Accumulated Depreciation CWIP Ownership %
PSCo
Electric Generation:
Hayden Unit 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 97,879 $ 63,474 $ 53 75.5%
Hayden Unit 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,972 57,875 5,563 37.4
Hayden Common Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,916 16,055 2 53.1
Craig Units 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,089 34,754 537 9.7
Craig Common Facilities 1, 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . 37,177 17,247 — 6.5
Comanche Unit 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877,489 63,963 581 66.7
Comanche Common Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,812 711 2,255 82.0
Electric Transmission:
Transmission and other facilities, including substations . . . . . . . . 150,502 59,118 827 Various
Gas Transportation:
Rifle, Colo. to Avon, Colo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,278 6,044 — 60.0
Total PSCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,416,114 $ 319,241 $ 9,818
NSP-Minnesota and PSCo have approximately 500 MW and 820 MW of jointly owned generating capacity, respectively. Each
Company's share of operating expenses and construction expenditures are included in the applicable utility accounts. Each of the
respective owners is responsible for providing its own financing.
6. Income Taxes
American Taxpayer Relief Act of 2012 — In January 2013, the American Taxpayer Relief Act of 2012 (the “Act”) was signed into
law. The Act provides for the following:
• The top tax rate for dividends increased from 15 percent to 20 percent. The 20 percent dividend rate is now consistent with
the tax rates for capital gains;
• The research and experimentation (R&E) credit was extended for 2012 and 2013;
• PTCs were extended for projects that begin construction before the end of 2013; and
• 50 percent bonus depreciation was extended one year through 2013. Additionally, some longer production period property
placed in service in 2014 is also eligible for 50 percent bonus depreciation.
Because a change in tax law is accounted for in the period of enactment, the accounting related to the Act, including the provisions
related to 2012, were recorded beginning in the first quarter of 2013. Accordingly, in 2013, Xcel Energy recorded an R&E benefit of
$5 million related to 2012 and an estimated $6 million related to 2013.
Prescription drug tax benefit — In the third quarter of 2012, Xcel Energy implemented a tax strategy related to the allocation of
funding of Xcel Energy’s retiree prescription drug plan. This strategy restored a portion of the tax benefit associated with federal
subsidies for prescription drug plans that had been accrued since 2004 and was expensed in 2010. As a result, Xcel Energy recognized
approximately $17 million of income tax benefit.
Medicare Part D — In March 2010, the Patient Protection and Affordable Care Act was signed into law. The law includes provisions
to generate tax revenue to help offset the cost of the new legislation. One of these provisions reduces the deductibility of retiree health
care costs to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to
Medicare Part D coverage, beginning in 2013. Xcel Energy expensed approximately $17 million of previously recognized tax benefits
relating to the federal subsidies during the first quarter of 2010.
Federal Tax Loss Carryback Claims — In 2012 and 2013, Xcel Energy identified certain expenses related to 2009, 2010, 2011 and
2013 that qualify for an extended carryback beyond the typical two-year carryback period. As a result of a higher tax rate in prior
years, Xcel Energy recognized a tax benefit of approximately $15 million in 2012 and $12 million in 2013.