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Forging
Our Path
Annual Report 2014

Table of contents

  • Page 1
    Forging Our Path Annual Report 2014

  • Page 2
    ... on the job at Xcel Energy's Cherokee Generating Station, where the company is making changes to deliver cleaner, more reliable energy for customers. Company Description Xcel Energy is a major U.S. electric and natural gas company, with annual revenues of $11.7 billion. Based in Minneapolis, Minn...

  • Page 3
    .... We reported ongoing earnings of $2.03 per share, compared with $1.95 per share in 2013, an increase of 4 percent. Meeting your expectations is important to us, and I'm proud to say this was the 10th consecutive year we've met or exceeded our earnings guidance and Xcel Energy Annual Report 2014 1

  • Page 4
    ...With the skyline of Denver in the background, construction crews work at Xcel Energy's Cherokee Generating Station, where the company is replacing three retired coal-fired units with a new natural gas plant as part of Colorado's Clean Air-Clean Jobs effort. In total, Xcel Energy is retiring six coal...

  • Page 5
    ... of renewable resources, reliable service, reasonable rates and corporate citizenship. We also demonstrated strong reliability performance. Among large electric utilities in the Midwest, Xcel Energy ranked second in J.D. Power's 2015 Electric Utility Business Customer Satisfaction Study, which also...

  • Page 6
    ... than 760 miles of new transmission lines into service across our operating companies. We rebuilt and upgraded 190 miles of existing transmission lines, totaling about $1 billion in capital projects. Xcel Energy, in fact, is one of the largest builders of 345-kilovolt Xcel Energy Annual Report 2014...

  • Page 7
    ...to double our renewable resources and reduce carbon emissions 40 percent from 2005 levels by 2030. That will result in a balanced energy mix that is 63 percent carbon free. 29% Coal Upper Midwest Resource Plan 8% Natural Gas 28% Nuclear 35% Renewables Xcel Energy Annual Report 2014 63% Carbon Free...

  • Page 8
    Agassiz Valley Grain is a new Xcel Energy natural gas customer in Barnesville, Minn. 6 Xcel Energy Annual Report 2014

  • Page 9
    ... customers As part of its strategic plan for the future, Xcel Energy is exploring growth opportunities in the natural gas business. In 2014, the company expanded natural gas service to three Minnesota communities, including Barnesville, Minn. At Agassiz Valley Grain in Barnesville, General Manager...

  • Page 10
    ... cost per mile for new transmission below the national average. To compete in a competitive transmission market, Xcel Energy formed three independent transmission companies that will pursue projects that make sense for customers and build value for shareholders. 8 Xcel Energy Annual Report 2014

  • Page 11
    ... of our plan, is an increasingly challenging goal that we recognize requires new tools and approaches in a competitive environment. As a result, we've launched a major effort focused on leveraging technology to improve our processes and change the way we work. Xcel Energy Annual Report 2014 9

  • Page 12
    ...the potential of investing in a natural gas transmission pipeline or perhaps natural gas reserves. Right now, we are expanding natural gas to communities previously served only by propane. In 2014, we added three Minnesota communities with more than 1,100 new customers and expected annual revenue of...

  • Page 13
    ...bring outstanding technical and leadership skills to the workplace. Xcel Energy's goal is to ensure 10 percent of newly hired employees are veterans. To achieve it, the company actively participates in job fairs and other outreach in the veteran community. Once veterans are on the job, we make every...

  • Page 14
    ...and affordable service. It represents the largest development of new transmission in the Upper Midwest in almost 40 years. The projects provide needed transmission capacity to support new generation options, including renewable energy. Ben Fowke Chairman, President and CEO Xcel Energy Annual Report...

  • Page 15
    ... charter) Minnesota (State or other jurisdiction of incorporation or organization) 41-0448030 (I.R.S. Employer Identification No.) 414 Nicollet Mall Minneapolis, MN 55401 (Address of principal executive offices) Registrant's telephone number, including area code: 612-330-5500 Securities registered...

  • Page 16

  • Page 17
    ... Federal Regulatory Developments ...Electric Operating Statistics ...NATURAL GAS UTILITY OPERATIONS ...NSP-Minnesota...NSP-Wisconsin ...PSCo ...SPS ...Natural Gas Operating Statistics...GENERAL...ENVIRONMENTAL MATTERS ...CAPITAL SPENDING AND FINANCING ...EMPLOYEES ...EXECUTIVE OFFICERS ...Item 1A...

  • Page 18

  • Page 19
    ... System ...The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota NSP-Wisconsin...Northern States Power Company, a Wisconsin corporation PSCo...Public Service Company of Colorado PSRI ...P.S.R. Investments, Inc...

  • Page 20
    ... fuel generation plants) EPU ...Extended power uprate ERP...Electric resource plan FCA ...Fuel clause adjustment FPPCAC ...Fuel and purchased power cost adjustment clause GAP ...Gas affordability program GCA ...Gas cost adjustment OATT ...Open access transmission tariff PCCA ...Purchased capacity...

  • Page 21
    ... Operating and maintenance Office of Consumer Counsel Other comprehensive income Polychlorinated biphenyl Private Fuel Storage, LLC Prairie Island nuclear generating plant PJM Interconnection, LLC Particulate matter Purchased power agreement Potentially responsible party Production tax credit...

  • Page 22
    ... Minnesota in 1909. Xcel Energy's executive offices are located at 414 Nicollet Mall, Minneapolis, Minn. 55401. Its website address is www.xcelenergy.com. Xcel Energy makes available, free of charge through its website, its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports...

  • Page 23
    ... water companies. SPS SPS is a 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 31 percent of its total KWh sold in 2014. SPS provides electric...

  • Page 24
    ... MISO are generally recovered through either the FCA or base rates. Minnesota state law requires NSP-Minnesota to invest two percent of its state electric revenues in CIP. NSP-Minnesota was in compliance with this standard in 2014 and expects to be in compliance in 2015. These costs are recovered...

  • Page 25
    ...its Community Solar Gardens program. CapX2020 - The estimated cost of the five major CapX2020 transmission projects listed below is $2.0 billion. NSP-Minnesota and NSP-Wisconsin are responsible for approximately $1.1 billion of the total investment. As of Dec. 31, 2014, Xcel Energy has invested $882...

  • Page 26
    ...in late 2015, with completion in 2017. Minnesota Solar - Minnesota legislation requires 1.5 percent of a public utility's total electric retail sales to retail customers be generated using solar energy by 2020. Of the 1.5 percent, 10 percent must come from systems sized less than 20 kilowatts. There...

  • Page 27
    ...of 2015. Until the NRC makes its determination, we are unable to estimate the cost or impact of any responsive actions required. LLW Disposal - LLW from NSP-Minnesota's Monticello and PI nuclear plants is currently disposed at the Clive facility located in Utah and Waste Control Specialists facility...

  • Page 28
    ... ascension testing required by the NRC. Operation at the full increased power level is expected in the first half of 2015. As of Dec. 31, 2014, Monticello was operating at 656 MW, which includes approximately 56 MW of the extended uprate capacity. See Note 12 to the consolidated financial statements...

  • Page 29
    ... resource requirements and may sell surplus RECs. Includes energy from other sources, including solar, biomass, oil and refuse. Distributed generation from the Solar*Rewards program is not included, and was approximately seven, eight, and six net million KWh for 2014, 2013, and 2012, respectively...

  • Page 30
    ... energy initiatives. Windsource® allows customers in Minnesota, Wisconsin, and Michigan to purchase a portion or all of their electricity from renewable sources. In 2014, the number of customers utilizing Windsource increased to approximately 43,000 from 37,000 in 2013. Windsource MWh sales...

  • Page 31
    ... for new generating plants and electric transmission lines before the facilities may be sited and built. NSP-Wisconsin is subject to the jurisdiction of the FERC with respect to its wholesale electric operations, hydroelectric generation licensing, accounting practices, wholesale sales for resale...

  • Page 32
    ...Wind Energy Service - Wind Energy Service is a premium service for customers who voluntarily choose to pay an additional charge for renewable resources. TCA - The TCA recovers costs associated with transmission investment outside of rate cases. CACJA - As part of its pending electric rate case, PSCo...

  • Page 33
    ... Energy Sources and Related Transmission Initiatives PSCo expects to meet its system capacity requirements through existing electric generating stations, power purchases, new generation facilities, DSM options and phased expansion of existing generation at select power plants. Purchased Power - PSCo...

  • Page 34
    ... for stranded costs with the FERC. RES Compliance Plan - Colorado law mandates that at least 30 percent of PSCo's energy sales are supplied by renewable energy by 2020 and includes a distributed generation standard. In July 2013, PSCo filed its 2014 RES compliance plan. In July 2014, the ALJ...

  • Page 35
    Energy Source Statistics Year Ended Dec. 31 2014 PSCo Millions of KWh Percent of Generation Millions of KWh 2013 Percent of Generation Millions of KWh 2012 Percent of Generation Coal ...Natural Gas ...Wind (a) ...Hydroelectric...Other (b) ...Total ...Owned generation ...Purchased generation ......

  • Page 36
    ... Renewable Energy Sources PSCo's renewable energy portfolio includes wind, hydroelectric, biomass and solar power from both owned generating facilities and PPAs. As of Dec. 31, 2014, PSCo was in compliance with mandated RPS, which require generation from renewable resources of 12 percent of electric...

  • Page 37
    ... purchased power costs in Texas. RPS - The RPS rider recovers deferred costs associated with renewable energy programs in New Mexico. TCRF - The TCRF rider recovers transmission infrastructure improvement costs and changes in wholesale transmission charges in Texas. Fuel and purchased energy costs...

  • Page 38
    ...7, 2014. The 2014 peak demand decreased due to cooler summer weather. Energy Sources and Related Transmission Initiatives SPS expects to use existing electric generating stations, power purchases, DSM and new generation options to meet its net dependable system capacity requirements. Purchased Power...

  • Page 39
    ... ...2012 ... $ 2.07 2.14 1.87 71% $ 71 67 4.76 3.97 2.99 29% $ 29 33 2.85 2.68 2.24 See Items 1A and 7 for further discussion of fuel supply and costs. Fuel Sources Coal - SPS purchases all of the coal requirements for its two coal facilities, Harrington and Tolk electric generating stations...

  • Page 40
    ... and solar power from both owned generating facilities and PPAs. As of Dec. 31, 2014, SPS is in compliance with mandated RPS, which require generation from renewable resources of approximately four percent and 10 percent of Texas and New Mexico electric retail sales, respectively Renewable energy...

  • Page 41
    ... MISO and SPP transmission owners, potentially reducing NSP-Minnesota's, NSP-Wisconsin's and SPS's financial return on new investments in electric transmission facilities. Xcel Energy formed its TransCo entities to pursue opportunities for new investments in electric transmission facilities that may...

  • Page 42
    .... Xcel Energy Services Inc. and NSP-Wisconsin vs. ATC (La Crosse, Wis. to Madison, Wis. Transmission Line) - In February 2012, Xcel Energy Services Inc. and NSP-Wisconsin filed a complaint with the FERC concerning ownership of the proposed La Crosse, Wis. to Madison, Wis. 345 KV transmission line...

  • Page 43
    Electric Operating Statistics Electric Sales Statistics Year Ended Dec. 31 2014 2013 2012 Electric sales (Millions of KWh) Residential...Large C&I ...Small C&I ...Public authorities and other...Total retail ...Sales for resale ...Total energy sold ...Number of customers at end of period Residential...

  • Page 44
    ... state resource requirements and may sell surplus RECs. Includes energy from other sources, including solar, biomass, oil and refuse. Distributed generation from the Solar*Rewards program is not included, and was approximately 222, 198, and 152 net million KWh for 2014, 2013 and 2012, respectively...

  • Page 45
    ...and propaneair plants provide a cost-effective alternative to annual fixed pipeline transportation charges to meet the peaks caused by firm space heating demand on extremely cold winter days. NSP-Minnesota is required to file for a change in natural gas supply contract levels to meet peak demand, to...

  • Page 46
    ...propane-air plants provide a cost-effective alternative to annual fixed pipeline transportation charges to meet the peaks caused by firm space heating demand on extremely cold winter days. NSP-Wisconsin is required to file a natural gas supply plan with the PSCW annually to change natural gas supply...

  • Page 47
    ... costs associated with transmission and distribution pipeline integrity management programs and two projects to replace large transmission pipelines. The rider was extended through 2015. QSP Requirements - The CPUC established a natural gas QSP that provides for bill credits to customers if PSCo...

  • Page 48
    ... to meet firm peak day sales obligations are primarily purchased at PSCo's city gate meter stations. PSCo is required by CPUC regulations to file a natural gas purchase plan each year projecting and describing the quantities of natural gas supplies, upstream services and the costs of those supplies...

  • Page 49
    ... can currently avoid paying for most of the fixed production, transmission and distribution costs incurred to serve them. Finally, in some of our states, customers can elect to subscribe to a community solar garden at pricing that affords them the same opportunity to avoid fixed charges as if...

  • Page 50
    ... planning programs that promote competition in the acquisition of electricity generation resources used to provide service to retail customers. In addition, FERC Order 1000 seeks to establish competition for construction and operation of certain new electric transmission facilities. Xcel Energy...

  • Page 51
    ... Site Vice President in May 2007 to July 2012. Judy M. Poferl, 55, Senior Vice President, Corporate Secretary and Executive Services, Xcel Energy Inc., January 2015 to present. Previously, Vice President, Corporate Secretary, Xcel Energy Inc., May 2013 to December 2014; President, Director and Chief...

  • Page 52
    ..., Xcel Energy has developed a robust compliance program and promotes a culture of compliance, including tone at the top, which mitigates risk. The process for risk mitigation includes adherence to our code of conduct and other compliance policies, operation of formal risk management structures and...

  • Page 53
    ... high energy demand may raise electricity prices, which would increase the cost of energy we provide to our customers. Severe weather impacts our service territories, primarily when thunderstorms, tornadoes and snow or ice storms occur. To the extent the frequency of extreme weather events increases...

  • Page 54
    ... the fair value of the debt securities in the nuclear decommissioning fund and master pension trust, as well as our ability to earn a return on short-term investments of excess cash. We are subject to credit risks. Credit risk includes the risk that our retail customers will not pay their bills...

  • Page 55
    ... the credit ratings of the letter of credit issuers were to drop below the designated investment grade rating stipulated in the underlying long-term purchased power contracts, the supplier would need to replace that security with an acceptable substitute. If the security were not replaced, the party...

  • Page 56
    ... of water for cooling, availability of fuel transportation including rail shipments of coal, electric generation capacity, transmission, natural gas pipeline capacity, etc. Our subsidiary, NSP-Minnesota, is subject to the risks of nuclear generation. NSP-Minnesota's two nuclear stations, PI...

  • Page 57
    ... coincide. This is particularly true in PSCo where the addition of customer-site solar installations introduces additional downward pressure on load growth. This could lead to under recovery of costs and excess resources to meet customer demand. Xcel Energy's aging infrastructure may pose a risk to...

  • Page 58
    ... the number of customers is growing, sales growth is relatively modest due to an increased focus on energy efficiency including federal standards for appliance and lighting efficiency and distributed generation, primarily solar PV. Instability in the financial markets also may affect the cost of...

  • Page 59
    ... decrease in revenues and may cause significant additional costs (e.g., penalties, third party claims, repairs, insurance or compliance) and potentially disrupt our supply and markets for natural gas, oil and other fuels. We maintain security measures designed to protect our information technology...

  • Page 60
    ...-Minnesota, NSP-Wisconsin, PSCo and SPS is subject to the lien of their first mortgage bond indentures. Electric Utility Generating Stations: NSP-Minnesota Station, Location and Unit Fuel Installed Summer 2014 Net Dependable Capability (MW) Steam: A.S. King-Bayport, Minn., 1 Unit ...Sherco-Becker...

  • Page 61
    NSP-Wisconsin Station, Location and Unit Fuel Installed Summer 2014 Net Dependable Capability (MW) Steam: Bay Front-Ashland, Wis., 3 Units ...French Island-La Crosse, Wis., 2 Units ...Combustion Turbine: Flambeau Station-Park Falls, Wis., 1 Unit...French Island-La Crosse, Wis., 2 Units ...Wheaton-...

  • Page 62
    ... 1952-1964 1968 1998 2011-2013 1963-1976 Total 1,018 1,067 254 486 112 457 411 10 212 338 61 4,426 Electric utility overhead and underground transmission and distribution lines (measured in conductor miles) at Dec. 31, 2014: Conductor Miles NSP-Minnesota NSP-Wisconsin PSCo SPS 500 KV ...345 KV...

  • Page 63
    ... Purchases of Equity Securities Quarterly Stock Data Xcel Energy Inc.'s common stock is listed on the New York Stock Exchange (NYSE). The trading symbol is XEL. The number of common shareholders of record as of Dec. 31, 2014 was approximately 67,716. The following are the high and low stock prices...

  • Page 64
    ... company. Xcel Energy's operations included the activity of four utility subsidiaries that serve electric and natural gas customers in eight states. These utility subsidiaries are NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. These utilities serve customers in portions of Colorado, Michigan, Minnesota...

  • Page 65
    ... of this Annual Report on Form 10-K and Exhibit 99.01 hereto. Management's Strategic Plans Xcel Energy's corporate strategy focuses on the following primary objectives Improving utility performance; Driving operational excellence; Providing options and solutions to customers; and Investing for the...

  • Page 66
    ... 4.7 percent. Our capital investment plan includes needed investments in transmission, adding new generation, reducing emissions in our power plants, refreshing our infrastructure, improving reliability, replacing natural gas pipelines and increasing the levels of renewable energy on our system. In...

  • Page 67
    ...for Xcel Energy: Diluted Earnings (Loss) Per Share 2014 2013 2012 PSCo...NSP-Minnesota ...SPS ...NSP-Wisconsin...Equity earnings of unconsolidated subsidiaries ...Regulated utility ...Xcel Energy Inc. and other...Ongoing diluted EPS ...SPS FERC complaint case orders ...Prescription drug tax benefit...

  • Page 68
    ... for 2014, largely due to lower financing costs as a result of the refinancing of junior subordinated notes. 2013 Comparison with 2012 Xcel Energy - Overall, ongoing earnings increased $0.13 per share for 2013. Ongoing earnings increased as a result of higher electric and gas margins due to rate...

  • Page 69
    ...program, direct stock purchase plan and benefit plans...Higher taxes (other than income taxes) ...2013 ongoing diluted EPS ...SPS FERC complaint case orders...2013 GAAP diluted EPS ...$ The following table summarizes the ROE for Xcel Energy and its utility subsidiaries: ROE - 2014 PSCo NSP-Minnesota...

  • Page 70
    ... the individual revenue and expense items reported in the consolidated statements of income. Estimated Impact of Temperature Changes on Regulated Earnings - Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The...

  • Page 71
    ... expansion from oil and gas exploration and production in the Southeastern New Mexico, Permian Basin area. PSCo's electric sales growth was primarily due to customers in the food manufacturing, fracking and mining industries. NSP-Minnesota's electric sales growth was led by an increased number...

  • Page 72
    ... ended Dec. 31: Electric Revenues (Millions of Dollars) 2014 vs. 2013 (a) Retail rate increases ...$ Trading...Fuel and purchased power cost recovery ...Non-fuel riders ...Transmission revenue ...Conservation and DSM program revenues (offset by expenses)...Retail sales growth, excluding weather...

  • Page 73
    ...) 2013 vs. 2012 Fuel and purchased power cost recovery ...$ Retail rate increases (a) ...Transmission revenue ...Non-fuel riders ...Estimated impact of weather ...PSCo earnings test refund obligation...Firm wholesale...Conservation and DSM program incentives ...Trading...SPS FERC complaint case...

  • Page 74
    ... of Dollars) 2013 vs. 2012 Retail rate increases (a) ...$ Transmission revenue, net of costs ...Non-fuel riders ...Estimated impact of weather ...PSCo earnings test refund obligation...Conservation and DSM program incentives ...Firm wholesale...Trading margin...SPS FERC complaint case orders...

  • Page 75
    ... (Millions of Dollars) 2014 vs. 2013 Nuclear plant operations and amortization ...$ 2013 gain on sale of transmission assets ...Transmission costs ...Electric and natural gas distribution expenses ...Employee benefits ...Plant generation costs ...Other, net ...Total increase in O&M expenses...$ 36...

  • Page 76
    .... 2013 vs. 2012 (Millions of Dollars) Electric and gas distribution expenses ...$ Nuclear plant operations and amortization ...Transmission costs ...Employee benefits ...Gain on sale of transmission assets ...Other, net ...Total increase in O&M expenses...$ 2013 Comparison to 2012 - The increase...

  • Page 77
    ... with customer refunds in Minnesota for the 2013 electric rate case and the write off of $6.3 million of unamortized debt expense related to the junior subordinated notes called in May 2013. Income Taxes - Income tax expense increased $39.8 million for 2014 compared with 2013. The increase was...

  • Page 78
    ... and general economic conditions. The electric and natural gas rates charged to customers of Xcel Energy Inc.'s utility subsidiaries are approved by the FERC or the regulatory commissions in the states in which they operate. The rates are designed to recover plant investment, operating costs and...

  • Page 79
    ...charged to operating expenses for nuclear decommissioning and spent nuclear fuel disposal expenses, environmental monitoring and disposal of hazardous materials and waste were approximately 292 million in 2014; $275 million in 2013; and $263 million in 2012. Xcel Energy estimates an average annual...

  • Page 80
    ... Employee Benefits Xcel Energy's pension costs are based on an actuarial calculation that includes a number of key assumptions, most notably the annual return level that pension and postretirement health care investment assets are expected to earn in the future and the interest rate used to discount...

  • Page 81
    ... years of service for active employees which was approximately 11 years in 2014. Based on current assumptions and the recognition of past investment gains and losses, Xcel Energy currently projects the pension costs recognized for financial reporting purposes will be $140.4 million in 2015 and $129...

  • Page 82
    ... health care plans. Xcel Energy expects to contribute approximately $12.8 million during 2015. Xcel Energy recovers employee benefits costs in its regulated utility operations consistent with accounting guidance with the exception of the areas noted below. • NSP-Minnesota recognizes pension...

  • Page 83
    ... decommissioning activities. These independent cost studies are based on relevant information available at the time performed. Estimates of future cash flows for extended periods of time are by nature highly uncertain and may vary significantly from actual results. NSP-Minnesota is required to...

  • Page 84
    ...manage commodity price risk within each rate-regulated operation to the extent such exposure exists. Wholesale and Commodity Trading Risk - Xcel Energy Inc.'s utility subsidiaries conduct various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy...

  • Page 85
    ... a discussion of Xcel Energy Inc. and its subsidiaries' interest rate derivatives. NSP-Minnesota also maintains a nuclear decommissioning fund, as required by the NRC. The nuclear decommissioning fund is subject to interest rate risk and equity price risk. At Dec. 31, 2014, the fund was invested in...

  • Page 86
    ... EPU project as well as the PI steam generator replacement and certain other transmission line projects. Other differences mainly related to changes in restricted cash. (Millions of Dollars) 2014 2013 2012 Net cash provided by financing activities ... $ 442 $ 654 $ 350 Net cash provided by...

  • Page 87
    ...plans to fund capital expenditures of Xcel Energy Inc. and its subsidiaries for the years 2015 through 2019 are shown in the table below. (Millions of Dollars) Funding Capital Expenditures Cash from Operations* ...$ New Debt** ...Equity from Dividend Reinvestment Program (DRIP) and Benefit Programs...

  • Page 88
    ... coal, nuclear fuel and natural gas requirements. Additionally, the utility subsidiaries of Xcel Energy Inc. have entered into agreements with utilities and other energy suppliers for purchased power to meet system load and energy requirements, replace generation from company-owned units under...

  • Page 89
    ... needs for construction expenditures, working capital and dividend payments. Short-Term Investments - Xcel Energy Inc., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS maintain cash operating and shortterm investment accounts. At Dec. 31, 2014 and 2013, there was $3.3 million and $21.7 million of...

  • Page 90
    ...481 1,160 0.31% 0.25 2,450 602 403 634 0.35% 0.36 Credit Facilities - In October 2014, Xcel Energy Inc., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS entered into amended fiveyear credit agreements with a syndicate of banks, replacing their previous five-year credit agreements. The total size of the...

  • Page 91
    ... general corporate purposes. During 2015, Xcel Energy Inc. and its utility subsidiaries anticipate issuing the following Xcel Energy Inc. plans to issue approximately $500 million of senior unsecured bonds; PSCo plans to issue approximately $250 million of first mortgage bonds; NSP-Minnesota plans...

  • Page 92
    ... review, Xcel Energy would exclude the associated charge from ongoing earnings. Normal weather patterns are experienced for the year. Weather-normalized retail electric utility sales are projected to increase approximately 1.0 percent. Weather-normalized retail firm natural gas sales are projected...

  • Page 93
    ...audit report on the Xcel Energy Inc.'s internal control over financial reporting. Its report appears herein. /s/ BEN FOWKE Ben Fowke Chairman, President and Chief Executive Officer Feb. 20, 2015 /s/ TERESA S. MADDEN Teresa S. Madden Executive Vice President, Chief Financial Officer Feb. 20, 2015 75

  • Page 94
    ...Directors and Stockholders of Xcel Energy Inc. Minneapolis, Minnesota We have audited the accompanying consolidated balance sheets and statements of capitalization of Xcel Energy Inc. and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related consolidated statements of income...

  • Page 95
    .... Minneapolis, Minnesota We have audited the internal control over financial reporting of Xcel Energy Inc. and subsidiaries (the "Company") as of December 31, 2014, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of...

  • Page 96
    ... STATEMENTS OF INCOME (amounts in thousands, except per share data) Year Ended Dec. 31 2014 2013 2012 Operating revenues Electric ...Natural gas ...Other...Total operating revenues ...Operating expenses Electric fuel and purchased power ...Cost of natural gas sold and transported ...Cost of sales...

  • Page 97
    XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (amounts in thousands) Year Ended Dec. 31 2014 2013 2012 Net income ...Other comprehensive (loss) income Pension and retiree medical benefits: Net pension and retiree medical benefit (losses) gains arising during the ...

  • Page 98
    ... CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) 2014 Operating activities Net income ...$ Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization...Conservation and demand side management program amortization ...Nuclear fuel...

  • Page 99
    ... retirement obligations ...Derivative instruments ...Customer advances ...Pension and employee benefit obligations ...Other ...Total deferred credits and other liabilities ...Commitments and contingencies Capitalization Long-term debt ...Common stock - 1,000,000,000 shares authorized of $2.50 par...

  • Page 100
    ... loss...(523,969) Dividends declared on common stock ...Issuances of common stock ...2,166 5,415 28,219 (1,750) (16,779) Repurchase of common stock...(700) Purchase of common stock for settlement of (23,307) equity rewards ...Share-based compensation ...37,439 Balance at Dec. 31, 2012 ...487,960...

  • Page 101
    XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CAPITALIZATION (amounts in thousands, except share and per share data) Dec. 31 2014 2013 Long-Term Debt NSP-Minnesota First Mortgage Bonds, Series due: Aug. 15, 2015, 1.95% ...March 1, 2018, 5.25% ...Aug. 15, 2022, 2.15% ...May 15, 2023, ...

  • Page 102
    ...discount ...Total...Less current maturities ...Total NSP-Wisconsin long-term debt...Other Subsidiaries Various Eloigne Co. Affordable Housing Project Notes, due 2015-2052, 0% - 8% ...Total...Less current maturities ...Total other subsidiaries long-term debt ...Xcel Energy Inc. Unsecured Senior Notes...

  • Page 103
    ...electric and natural gas customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Also included in Xcel Energy's operations are WGI, an interstate natural gas pipeline company, and WYCO, a joint venture with CIG to develop and lease natural...

  • Page 104
    ...to assist customers in conserving energy and reducing peak demand on the electric and natural gas systems. These programs include efficiency and redesign programs, as well as rebates for the purchase of items such as high efficiency lighting, air conditioner controls and energy-efficient heating and...

  • Page 105
    ... are included in Xcel Energy's rate base for establishing utility service rates. In addition to construction-related amounts, cost of capital also is recorded to reflect returns on capital used to finance conservation programs in Minnesota. Generally, AFUDC costs are recovered from customers as the...

  • Page 106
    ... financial instruments purchased to reduce commodity cost volatility. For further information on derivatives entered to mitigate commodity price risk on behalf of electric and natural gas customers, see Note 11. Cash Flow Hedges - Certain qualifying hedging relationships are designated as a hedge...

  • Page 107
    ... of generation are recorded in electric utility operating revenues on a gross basis. The cost of these RECs, related transaction costs, and amounts credited to customers under margin-sharing mechanisms are recorded in electric fuel and purchased power expense. The sales of RECs for trading purposes...

  • Page 108
    .... Benefit Plans and Other Postretirement Benefits - Xcel Energy maintains pension and postretirement benefit plans for eligible employees. Recognizing the cost of providing benefits and measuring the projected benefit obligation of these plans under applicable accounting guidance requires management...

  • Page 109
    ...a result of the CPUC's 2010 approval of PSCo's CACJA compliance plan and the December 2013 approval of PSCo's preferred plans for applicable generating resources, PSCo has received approval for early retirement of Cherokee Unit 3 and Valmont Unit 5 between 2015 and 2017. Amounts are presented net of...

  • Page 110
    ... capacity under these credit facilities. The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. Amended Credit Agreements - In October 2014, Xcel Energy Inc., NSP-Minnesota, NSP-Wisconsin, PSCo...

  • Page 111
    ... the respective credit facilities. Xcel Energy Inc. and its subsidiaries had no direct advances on the credit facilities outstanding at Dec. 31, 2014 and 2013. Long-Term Borrowings and Other Financing Instruments Generally, all real and personal property of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS...

  • Page 112
    ... than $1.6 billion and $1.4 billion in additional cash dividends to Xcel Energy Inc. at Dec. 31, 2014 and 2013, 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...

  • Page 113
    ... investments by Xcel Energy Inc.'s utility subsidiaries in jointly owned generation, transmission and gas facilities and the related ownership percentages as of Dec. 31, 2014: (Thousands of Dollars) Plant in Service Accumulated Depreciation CWIP Ownership % NSP-Minnesota Electric Generation: Sherco...

  • Page 114
    ... consolidated state tax returns based on income in its major operating jurisdictions of Colorado, Minnesota, Texas, and Wisconsin, and various other state income-based tax returns. As of Dec. 31, 2014, Xcel Energy's earliest open tax years that are subject to examination by state taxing authorities...

  • Page 115
    ...annual ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly... 2014 Dec. 31, 2013 NOL and tax credit carryforwards... $ (28.5) $ (27.1) It is reasonably possible that Xcel Energy's amount of unrecognized tax benefits ...

  • Page 116
    ... reconciles such differences for the years ending Dec. 31: 2014 2013 2012 Federal statutory rate...Increases (decreases) in tax from: Tax credits recognized, net of federal income tax expense ...Regulatory differences - utility plant items ...NOL carryback ...State income taxes, net of federal...

  • Page 117
    ... is no further service, performance or market condition associated with these awards. Restricted stock, granted to settle amounts due to certain employees under the Xcel Energy Inc. Executive Annual Incentive Award Plan, is included in common shares outstanding when granted. Share-based compensation...

  • Page 118
    ... the dividends on those shares. Restricted stock has a fair value equal to the market trading price of Xcel Energy Inc.'s stock at the grant date. Xcel Energy Inc. granted shares of restricted stock for the years ended Dec. 31 as follows: (Shares in Thousands) 2014 2013 2012 Granted shares ...Grant...

  • Page 119
    ... in shares in February 2015. Equity award units granted to employees, excluding restricted stock and applicable 401(k) employer match settlements, for the years ended Dec. 31 were as follows: (Units in Thousands) 2014 2013 2012 Granted units ...Weighted average grant date fair value ...$ 588...

  • Page 120
    ....2 million for the years ended 2014, 2013 and 2012, respectively. In October 2013, Xcel Energy determined that it would settle the 401(k) employer match in cash instead of common stock going forward for all employee groups except PSCo bargaining employees. Share-based compensation accounting for the...

  • Page 121
    ... Benefits Xcel Energy offers various benefit plans to its employees. Approximately 48 percent of employees that receive benefits are represented by several local labor unions under several collective-bargaining agreements. At Dec. 31, 2014: • NSP-Minnesota had 2,011 and NSP-Wisconsin...

  • Page 122
    ... benefit pension plans that cover almost all employees. Generally, benefits are based on a combination of years of service, the employee's average pay and, in some cases, social security benefits. Xcel Energy's policy is to fully fund into an external trust the actuarially determined pension costs...

  • Page 123
    ...in Xcel Energy's Level 3 pension plan assets for the years ended Dec. 31, 2014, 2013 and 2012: Net Realized Gains (Losses) Net Unrealized Gains (Losses) Purchases, Issuances and Settlements, Net Transfers Out of Level 3 (Thousands of Dollars) Jan. 1, 2014 Dec. 31, 2014 Private equity investments...

  • Page 124
    ... pension benefit obligation and plan assets for Xcel Energy is presented in the following table: (Thousands of Dollars) 2014 2013 Accumulated Benefit Obligation at Dec. 31 ... $ 3,545,928 $ 3,282,651 Change in Projected Benefit Obligation: Obligation at Jan. 1...$ Service cost ...Interest cost...

  • Page 125
    ... participants in the Xcel Energy Pension Plan. Benefit Costs - The components of Xcel Energy's net periodic pension cost were: (Thousands of Dollars) 2014 2013 2012 Service cost ...Interest cost ...Expected return on plan assets ...Amortization of prior service (credit) cost ...Amortization of net...

  • Page 126
    ...Care Benefits Xcel Energy has a contributory health and welfare benefit plan that provides health care and death benefits to certain Xcel Energy retirees The former NSP, which includes NSP-Minnesota and NSP-Wisconsin, discontinued contributing toward health care benefits for nonbargaining employees...

  • Page 127
    ... Dec. 31, 2014 there were no assets transferred in or out of Level 3. The following tables present the changes in Xcel Energy's Level 3 postretirement benefit plan assets for the years ended Dec. 31, 2013 and 2012: Net Realized Gains (Losses) Net Unrealized Gains (Losses) Purchases, Issuances and...

  • Page 128
    ...during 2015. Plan Amendments - In 2014, there were no plan amendments made which affected the benefit obligation. The 2013 decrease of the projected Xcel Energy and PSCo postretirement health and welfare benefit obligation for plan amendments is due to changes in the participant co-pay structure for...

  • Page 129
    Benefit Costs - The components of Xcel Energy's net periodic postretirement benefit costs were: (Thousands of Dollars) 2014 2013 2012 Service cost ...Interest cost ...Expected return on plan assets ...Amortization of transition obligation ...Amortization of prior service credit ...Amortization of ...

  • Page 130
    ... a Level 3. Investments in debt securities - Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. Interest rate derivatives - The fair values of interest rate derivatives are...

  • Page 131
    ... to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value...

  • Page 132
    The following tables present the cost and fair value of Xcel Energy's non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund at Dec. 31, 2014 and 2013: Dec. 31, 2014 Fair Value (Thousands of Dollars) Cost Level 1 Level 2 Level 3 Total Nuclear ...

  • Page 133
    ..., including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates, utility commodity prices and vehicle fuel prices. Interest Rate Derivatives - Xcel Energy enters into various instruments that effectively fix the interest...

  • Page 134
    ...well as for trading purposes. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale, FTRs, vehicle fuel and weather derivatives. At Dec. 31, 2014, Xcel Energy had various vehicle fuel contracts designated as cash...

  • Page 135
    ...Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate ...$ Vehicle fuel and other commodity...Total ...$ Other derivative instruments Commodity trading ...$ Electric commodity ...Natural gas commodity ...Total ...$ - 29 29 - - - - $ - - - - 75,817 (3,088...

  • Page 136
    ... to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue, as appropriate. Amounts are recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost...

  • Page 137
    ..., as a result of implementing new guidance on the normal purchase exception for derivative accounting, Xcel Energy began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory...

  • Page 138
    ...2013 (Thousands of Dollars) Level 1 Fair Value Level 2 Level 3 Fair Value Total Counterparty Netting (b) Total Current derivative assets Derivatives designated as cash flow hedges: Vehicle fuel and other commodity ...Other derivative instruments: Commodity trading...Electric commodity...Natural gas...

  • Page 139
    ...878,643 The fair value of Xcel Energy's long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of Dec. 31, 2014 and 2013, and given the observability...

  • Page 140
    ... in the NSP-Minnesota electric rate case. While the report did not quantify the overall rate increases, NSP-Minnesota estimates that her recommendations would result in a rate increase of $69.1 million in 2014 and an incremental rate increase of $122.4 million in 2015. In addition, she...

  • Page 141
    ...should be treated as a 2015 step project. NSP-Minnesota fully met the NRC's requirements for the EPU as of Dec. 31, 2014. NSP-Minnesota is currently executing the power ascension plan consistent with the NRC license amendment approval and as of Dec. 31, 2014 had operated the plant using 56 MW of the...

  • Page 142
    ... first quarter of 2015. Final rates are anticipated to be effective mid-2015. Electric, Purchased Gas and Resource Adjustment Clauses CIP and CIP Rider - In December 2012, the MPUC approved reductions to the CIP financial incentive mechanisms effective for the 2013 through 2015 program years. Based...

  • Page 143
    ... the limited purpose of updating 2015 electric rates to reflect anticipated increases in the production and transmission fixed charges and the fuel and purchased power components of the interchange agreement with NSP-Minnesota. No changes were requested to the capital structure or the 10.2 percent...

  • Page 144
    ... transmission revenue, net of expense, between $5 million and $7 million annually for the NSP System. PSCo Pending and Recently Concluded Regulatory Proceedings - CPUC PSCo - Colorado 2014 Electric Rate Case - In 2014, PSCo filed an electric rate case with the CPUC requesting an increase in annual...

  • Page 145
    ... recovered in electric rates. PSCo - Annual Electric Earnings Test - As part of an annual earnings test, PSCo must share with customers a portion of any annual earnings that exceed PSCo's authorized ROE threshold of 10 percent for 2012-2014. In April 2014, PSCo filed its 2013 earnings test with the...

  • Page 146
    ... in O&M expense. Electric, Purchased Gas and Resource Adjustment Clauses DSM and the DSMCA - The CPUC approved higher savings goals and a lower financial incentive mechanism for PSCo's electric DSM energy efficiency programs starting in 2015. Energy efficiency and DSM costs are recovered through...

  • Page 147
    ... 2014 Electric Rate Case - In January 2014, SPS filed a retail electric rate case in Texas seeking a net increase in annual revenue of approximately $52.7 million, or 5.8 percent. The net increase reflected a base rate increase, revenue credits transferred from base rates to rate riders or the fuel...

  • Page 148
    ... a decision is expected in the first quarter of 2015. Electric, Purchased Gas and Resource Adjustment Clauses TCRF Rider - In November 2013, SPS filed with the PUCT to implement the TCRF for Texas retail customers. The requested increase in revenues was $13 million. The PUCT issued an order allowing...

  • Page 149
    ... this line in Texas and in New Mexico in mid-2015. The line is scheduled to be in service in 2020. Fuel Contracts - Xcel Energy has entered into various long-term commitments for the purchase and delivery of a significant portion of its current coal, nuclear fuel and natural gas requirements. These...

  • Page 150
    ... for fuel and natural gas storage and transportation will be required to meet expected future electric generation and natural gas needs. Xcel Energy's risk of loss, in the form of increased costs from market price changes in fuel, is mitigated through the use of natural gas and energy cost-rate...

  • Page 151
    ... in 2014, 2013 and 2012, respectively, recorded to electric fuel and purchased power expenses. Included in the future commitments under operating leases are estimated future capacity payments under PPAs that have been accounted for as operating leases in accordance with the applicable accounting...

  • Page 152
    ... are designed to qualify for low-income housing tax credits, and Eloigne and NSP-Wisconsin generally receive a larger allocation of the tax credits than the general partners at inception of the arrangements. Xcel Energy Inc. has determined that Eloigne and NSP-Wisconsin have the power to direct the...

  • Page 153
    ... outstanding as of Dec. 31, 2014: (Millions of Dollars) Guarantor Guarantee Amount Current Exposure Triggering Event Guarantee of customer loans for the Farm Rewiring Program (a) . Guarantee of the indemnification obligations of Xcel Energy Services Inc. under the aircraft leases (b) ...Guarantee...

  • Page 154
    ... Wis. The Ashland/Northern States Power Lakefront Superfund Site (the Ashland site) includes property owned by NSP-Wisconsin, which was a site previously operated by a predecessor company as a MGP facility (the Upper Bluff), and two other properties: an adjacent city lakeshore park area (Kreher Park...

  • Page 155
    ...Wisconsin to increase its 2014 amortization expense related to the cleanup by an additional $1.1 million to offset the need for a rate decrease for the natural gas utility. Other MGP Sites - Xcel Energy is currently involved in investigating and/or remediating several other MGP sites where hazardous...

  • Page 156
    ... solid waste. Xcel Energy's costs for the management and disposal of coal ash will not significantly increase under the new rule. Air GHG Emission Standard for Existing Sources - In June 2014, the EPA published its proposed rule on GHG emission standards for existing power plants. Comments...

  • Page 157
    ...rules, which require the installation and operation of emission controls for industrial facilities emitting air pollutants that reduce visibility in certain national parks and wilderness areas. In their first regional haze SIP, Colorado, Minnesota and Texas identified the Xcel Energy facilities that...

  • Page 158
    ... required status reports. In 2010, two environmental groups petitioned the DOI to certify that 12 coal-fired boilers and one coal-fired cement kiln in Colorado are contributing to visibility problems in Rocky Mountain National Park. The following PSCo plants are named in the petition: Cherokee...

  • Page 159
    ... areas is made in late 2017 based on air quality data years 2014-2016, and any required state plans are developed. PSCo NOV - In 2002, PSCo received an NOV from the EPA alleging violations of the New Source Review (NSR) requirements of the CAA at the Comanche Station and Pawnee Generating Station...

  • Page 160
    ... using an average service life. In December 2014, the EPA issued a pre-publication version of a final rule imposing requirements for activities involving coal ash waste. The ruling, once effective, will not result in the creation of a new legal obligation and Xcel Energy's estimated cash flows...

  • Page 161
    ... underground natural gas storage facilities that have special closure requirements for which the final removal date cannot be determined; therefore, an ARO has not been recorded for these facilities. Removal Costs - Xcel Energy records a regulatory liability for the plant removal costs of generation...

  • Page 162
    ... damage and site decontamination cleanup costs from Nuclear Electric Insurance Ltd. (NEIL). The coverage limits are $2.3 billion for each of NSP-Minnesota's two nuclear plant sites. NEIL also provides business interruption insurance coverage, including the cost of replacement power obtained during...

  • Page 163
    .... If a loss were sustained, NSP-Minnesota would attempt to recover these fuel-related costs in rates. No accrual has been recorded for this matter. Nuclear Power Operations and Waste Disposal Nuclear Waste Disposal Litigation - In 1998, NSP-Minnesota filed a complaint in the U.S. Court of Federal...

  • Page 164
    ...in November 2012. This cost study quantified decommissioning costs in 2011 dollars and utilized escalation rates of 3.63 percent per year for plant removal activities, and 2.63 percent for spent fuel management and site restoration activities over a 60-year decommissioning scenario. In December 2014...

  • Page 165
    ... with the applicable accounting guidance, as discussed in Note 1. Under this guidance, regulatory assets and liabilities are created for amounts that regulators may allow to be collected, or may require to be paid back to customers in future electric and natural gas rates. Any portion of Xcel Energy...

  • Page 166
    ... discount program ...PSCo earnings test ...Pipeline inspection ...Excess depreciation reserve ...Other ...Total regulatory liabilities ...(a) (b) Includes the fair value of certain long-term PPAs used to meet energy capacity requirements and valuation adjustments on natural gas commodity purchases...

  • Page 167
    ... 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...

  • Page 168
    ...) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total 2014 Operating revenues from external customers ...$ 9,465,890 Intersegment revenues ...1,774 Total revenues ...$ 9,467,664 Depreciation and amortization ...$ Interest charges and financing costs...

  • Page 169
    ...in Management Report on Internal Controls herein. Item 9B - Other Information None. PART III Item 10 - Directors, Executive Officers and Corporate Governance Information required under this Item with respect to Directors and Corporate Governance is set forth in Xcel Energy Inc.'s Proxy Statement for...

  • Page 170
    ... (Exhibit 1.3 to Form 8-K dated March 5, 2013 (file no. 001-03034)). PSCo 2.01* t Purchase and Sale Agreement by and between Riverside Energy Center, LLC and Calpine Development Holdings, Inc., as Sellers, and PSCo, as Purchaser, dated as of April 2, 2010 (excluding certain schedules and exhibits...

  • Page 171
    ... No. 7 dated as of May 1, 2013 between Xcel Energy and Wells Fargo Bank, NA, as Trustee, creating $450 million principal amount of 0.75 percent Senior Notes, Series due May 9, 2016 (Exhibit 4.01 to Form 8-K dated May 9, 2013 (file no. 001-03034)). NSP-Minnesota 4.10* Supplemental and Restated...

  • Page 172
    ... Bonds, Series due June 15, 2024. (Exhibit 4.01 of Form 8-K of NSP-Wisconsin dated June 23, 2014 (file no. 001-03140)). PSCo 4.32* 4.33* Indenture, dated as of Oct. 1, 1993, between PSCo and Morgan Guaranty Trust Company of New York, as trustee, providing for the issuance of First Collateral...

  • Page 173
    ... 26, 2009 to the Xcel Energy Senior Executive Severance and Change-in-Control Policy (Exhibit 10.06 to Form 10-Q of Xcel Energy (file no. 001-03034) for the quarter ended Sept. 30, 2009). 10.07*+ Xcel Energy Inc. Executive Annual Incentive Award Plan Form of Restricted Stock Agreement (Exhibit 10.08...

  • Page 174
    ... and Wells Fargo Bank, National Association, as Documentation Agent (Exhibit 99.01 to Form 8-K of Xcel Energy, dated Oct. 14, 2014 (file no. 001-03034)). NSP-Minnesota 10.25* Ownership and Operating Agreement, dated March 11, 1982, between NSP-Minnesota, Southern Minnesota Municipal Power Agency and...

  • Page 175
    .... 3, 2004). Settlement Agreement among PSCo and Concerned Environmental and Community Parties, dated Dec. 3, 2004 (Exhibit 99.03 to Form 8-K of Xcel Energy (file no. 001-03034) dated Dec. 3, 2004). Amended and Restated Credit Agreement, dated as of Oct. 14, 2014 among PSCo, as Borrower, the several...

  • Page 176
    ... I XCEL ENERGY INC. CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (amounts in thousands, except per share data) Year Ended Dec. 31 2014 2013 2012 Income Equity earnings of subsidiaries...$ 1,077,714 $ 1,018,783 $ Total income...1,077,714 1,018,783 Expenses and other deductions Operating...

  • Page 177
    XCEL ENERGY INC. CONDENSED STATEMENTS OF CASH FLOWS (amounts in thousands) Year Ended Dec. 31 2014 2013 2012 Operating activities Net cash provided by operating activities ...$ 842,832 $ 545,177 $ 815,209 Investing activities (422,459) (535,653) Capital contributions to subsidiaries...(366,783) ...

  • Page 178
    XCEL ENERGY INC. CONDENSED BALANCE SHEETS (amounts in thousands) Dec. 31 2014 2013 Assets Cash and cash equivalents ...Accounts receivable from subsidiaries ...Other current assets ...Total current assets ...Investment... and equity ...See Notes to Condensed Financial Statements $ $ $ 706...

  • Page 179
    ... party receivables net of payables. Accounts receivable and payable with affiliates at Dec. 31 were: 2014 (Thousands of Dollars) Accounts Receivable Accounts Payable Accounts Receivable 2013 Accounts Payable NSP-Minnesota ...NSP-Wisconsin ...PSCo ...SPS ...Xcel Energy Services Inc...Xcel Energy...

  • Page 180
    ...Amounts in Millions, Except Interest Rates) Year Ended Dec. 31, 2014 Year Ended Dec. 31, 2013 Year Ended Dec. 31, 2012 Lending limit ...$ Loan outstanding at period end...Average loan outstanding ...Maximum loan outstanding ...Weighted average interest rate, computed on a daily basis ...Weighted...

  • Page 181
    SCHEDULE II XCEL ENERGY INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DEC. 31, 2014, 2013 AND 2012 (amounts in thousands) Additions Balance at Jan. 1 Charged to Costs and Expenses Charged to Other (a) Accounts Deductions from(b)(c) Reserves Balance at Dec. 31 Allowance for bad...

  • Page 182
    ... undersigned thereunto duly authorized. XCEL ENERGY INC. Feb. 20, 2015 By: /s/ TERESA S. MADDEN Teresa S. Madden Executive Vice President, Chief Financial Officer (Principal Financial Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by...

  • Page 183
    ... Annual Report on Form 10-K for 2014. It has also filed with the New York Stock Exchange the CEO certification for 2014 required by section 303A.12(a) of the New York Stock Exchange's rules relating to compliance with the New York Stock Exchange's corporate governance listing standards. To contact...

  • Page 184
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