Xcel Energy 2014 Annual Report Download - page 70

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The following tables provide reconciliations of ongoing to GAAP earnings (net income) and ongoing to GAAP diluted EPS for the
years ended Dec. 31:
(Millions of Dollars) 2014 2013 2012
Ongoing earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,021.3 $ 968.4 $ 888.3
SPS FERC complaint case orders (2013) and prescription drug tax benefit (2012) . . . . . . — (20.2) 16.9
GAAP earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,021.3 $ 948.2 $ 905.2
Diluted Earnings (Loss) Per Share 2014 2013 2012
Ongoing diluted EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.03 $ 1.95 $ 1.82
SPS FERC complaint case orders (2013) and prescription drug tax benefit (2012) . . . . . . — (0.04) 0.03
GAAP diluted EPS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.03 $ 1.91 $ 1.85
The following tables summarize the earnings contributions of Xcel Energy’s business segments:
(Millions of Dollars) 2014 2013 2012
GAAP income (loss) by segment
Regulated electric income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 890.5 $ 850.7 $ 851.9
Regulated natural gas income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128.6 123.7 98.1
Other income (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59.5 44.6 22.1
Xcel Energy Inc. and other costs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (57.3)(70.8) (66.9)
Total net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,021.3 $ 948.2 $ 905.2
Contributions to Diluted Earnings (Loss) Per Share 2014 2013 2012
GAAP earnings (loss) by segment
Regulated electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.77 $ 1.71 $ 1.74
Regulated natural gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25 0.25 0.20
Other (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.12 0.09 0.05
Xcel Energy Inc. and other costs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.11)(0.14) (0.14)
Total diluted EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.03 $ 1.91 $ 1.85
(a) Not a reportable segment. Included in all other segment results in Note 17 to the consolidated financial statements.
Statement of Income Analysis
The following discussion summarizes the items that affected 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 estimated impact of weather on earnings is based on
the number of customers, temperature variances and the amount of natural gas or electricity the average customer historically uses per
degree of temperature. Accordingly, deviations in weather from normal levels can affect Xcel Energy’s financial performance.
Degree-day or Temperature-Humidity Index (THI) data is used to estimate amounts of energy required to maintain comfortable indoor
temperature levels based on each day’s average temperature and humidity. Heating degree-days (HDD) is the measure of the variation
in the weather based on the extent to which the average daily temperature falls below 65° Fahrenheit. Cooling degree-days (CDD) is
the measure of the variation in the weather based on the extent to which the average daily temperature rises above 65° Fahrenheit.
Each degree of temperature above 65° Fahrenheit is counted as one cooling degree-day, and each degree of temperature below 65°
Fahrenheit is counted as one heating degree-day. In Xcel Energy’s more humid service territories, a THI is used in place of CDD,
which adds a humidity factor to CDD. HDD, CDD and THI are most likely to impact the usage of Xcel Energy’s residential and
commercial customers. Industrial customers are less sensitive to weather.
Normal weather conditions are defined as either the 20-year or 30-year average of actual historical weather conditions. The historical
period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact
of weather on demand, a demand factor is applied to the weather impact on sales as defined above to derive the amount of demand
associated with the weather impact.