Xcel Energy 2014 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2014 Xcel Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 184

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184

42
Rising energy prices could negatively impact our business.
While we have fuel clause recovery mechanisms in most of our states, higher fuel costs could significantly impact our results of
operations if costs are not recovered. In addition, higher fuel costs could reduce customer demand and/or increase bad debt expense,
which could also have a material impact on our results of operations. Delays in the timing of the collection of fuel cost recoveries as
compared with expenditures for fuel purchases could have an impact on our cash flows. Low fuel costs could have a positive impact
on sales although, particularly on the southern part of our service territory, low oil prices could negatively impact oil and gas
production activities. We are unable to predict future prices or the ultimate impact of such prices on our results of operations or cash
flows.
Our operating results may fluctuate on a seasonal and quarterly basis and can be adversely affected by milder weather.
Our electric and natural gas utility businesses are seasonal, and weather patterns can have a material impact on our operating
performance. Demand for electricity is often greater in the summer and winter months associated with cooling and heating. Because
natural gas is heavily used for residential and commercial heating, the demand for this product depends heavily upon weather patterns
throughout our service territory, and a significant amount of natural gas revenues are recognized in the first and fourth quarters related
to the heating season. Accordingly, our operations have historically generated less revenues and income when weather conditions are
milder in the winter and cooler in the summer. Unusually mild winters and summers could have an adverse effect on our financial
condition, results of operations, or cash flows.
Item 1B — Unresolved Staff Comments
None.
Item 2 — Properties
Virtually all of the utility plant property of NSP-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 . . . . . . . . . . . . . . . . . . . . . . . . Coal 1968 511
Sherco-Becker, Minn.
Unit 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coal 1976 680
Unit 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coal 1977 682
Unit 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coal 1987 507 (a)
Monticello-Monticello, Minn., 1 Unit . . . . . . . . . . . . . . . . . . . . . Nuclear 1971 554
PI-Welch, Minn.
Unit 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nuclear 1973 521
Unit 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nuclear 1974 519
Black Dog-Burnsville, Minn., 2 Units. . . . . . . . . . . . . . . . . . . . . Coal/Natural Gas 1955-1960 215
Various locations, 4 Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wood/Refuse-derived fuel Various 36 (b)
Combustion Turbine:
Angus Anson-Sioux Falls, S.D., 3 Units . . . . . . . . . . . . . . . . . . . Natural Gas 1994-2005 327
Black Dog-Burnsville, Minn., 2 Units. . . . . . . . . . . . . . . . . . . . . Natural Gas 1987-2002 271
Blue Lake-Shakopee, Minn., 6 Units. . . . . . . . . . . . . . . . . . . . . . Natural Gas 1974-2005 453
High Bridge-St. Paul, Minn., 3 Units . . . . . . . . . . . . . . . . . . . . . Natural Gas 2008 534
Inver Hills-Inver Grove Heights, Minn., 6 Units. . . . . . . . . . . . . Natural Gas 1972 282
Riverside-Minneapolis, Minn., 3 Units . . . . . . . . . . . . . . . . . . . . Natural Gas 2009 470
Various locations, 17 Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Natural Gas Various 101
Wind:
Grand Meadow-Mower County, Minn., 67 Units . . . . . . . . . . . . Wind 2008 101 (c)
Nobles-Nobles County, Minn., 134 Units . . . . . . . . . . . . . . . . . . Wind 2010 201 (c)
Total 6,965
(a) Based on NSP-Minnesota’s ownership of 59 percent.
(b) Refuse-derived fuel is made from municipal solid waste.
(c) This capacity is only available when wind conditions are sufficiently high enough to support the noted generation values above. Therefore, the on-demand net
dependable capacity is zero.