Xcel Energy 2014 Annual Report Download - page 68

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Earnings Adjusted for Certain Items (Ongoing EPS)
2014 Comparison with 2013
Xcel Energy — Overall, ongoing earnings increased $0.08 per share for 2014. Ongoing earnings increased as a result of higher
electric and natural gas margins due to rate increases in various jurisdictions, weather-normalized sales growth and lower interest
charges. These positive factors were partially offset by the unfavorable impact of milder weather, as well as higher expected O&M
expenses, property taxes and depreciation. 2013 GAAP earnings include a $0.04 per share charge for a potential SPS customer refund
based on FERC orders issued in August 2013. This item was excluded from 2013 ongoing earnings.
PSCo — PSCo’s ongoing earnings decreased $0.01 per share for 2014. Higher natural gas and electric margins primarily due to rate
increases, higher AFUDC, lower O&M expenses and weather-normalized sales growth were offset by higher property taxes,
depreciation, accruals associated with the electric earnings test refund obligations and the unfavorable impact of weather.
NSP-Minnesota — NSP-Minnesota’s ongoing earnings increased $0.01 per share for 2014. Ongoing earnings were positively
impacted by electric rate increases in Minnesota (interim, subject to refund) and North Dakota and weather-normalized sales growth.
These items were partially offset by higher O&M expenses, the unfavorable impact of weather, lower AFUDC, increased property
taxes and interest charges.
SPS — SPS’ ongoing earnings increased $0.03 per share for 2014. Electric rate increases in Texas and New Mexico and weather-
normalized sales growth offset higher O&M and depreciation expenses.
NSP-Wisconsin — NSP-Wisconsin’s ongoing earnings increased $0.02 per share for 2014. An electric rate increase led to higher
electric margin, while weather-normalized sales growth positively impacted both electric and natural gas margins. These increases
were partially offset by additional O&M expenses.
Xcel Energy Inc. and other — Xcel Energy Inc. and other includes financing costs at the holding company and other items. Earnings
improved by $0.03 per share 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 increases in various states, the impact of favorable colder weather on the natural gas business and
reduced interest charges. These positive factors were partially offset by planned increases in O&M expenses and depreciation.
PSCo — PSCo’s ongoing earnings increased $0.01 per share for 2013. Ongoing earnings increased as a result of higher gas and
electric margins primarily due to rate increases, the impact of cooler weather on natural gas margins and lower interest charges,
partially offset by higher depreciation, O&M expenses and customer refunds related to the 2013 electric earnings test refund
obligation.
NSP-Minnesota — NSP-Minnesota’s ongoing earnings increased $0.09 per share for 2013. Ongoing earnings were positively
impacted by electric rate increases in Minnesota and South Dakota, interim rates subject to refund in North Dakota, the impact of
cooler winter weather and lower interest charges. These items were partially offset by higher O&M expenses.
SPS — SPS’ ongoing earnings increased $0.01 per share for 2013. Electric rate increases in Texas and the gain associated with the
sale of certain transmission assets to Sharyland were partially offset by higher depreciation.
NSP-Wisconsin — NSP-Wisconsin’s ongoing earnings increased $0.02 per share for 2013. Higher ongoing earnings from electric and
natural gas rates and cooler winter weather were partially offset by higher O&M expenses and depreciation.