Xcel Energy 2002 Annual Report Download - page 66

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Triggering
Term or Event Assets
(Millions of dollars) Guarantee Current Expiration Requiring Held as
Nature of Guarantee Guarantor Amount Exposure Date Performance Collateral
Guarantee performance
and payment of surety 2003, 2004
bonds for itself and 2005, 2007
its subsidiaries Xcel Energy (d) $342.7 $5.6 and 2012 (b) $10.0
Guarantee performance
and payment of surety 2003, 2004
bonds for those subsidiaries Various subsidiaries (e) $493.8 $116.0 and 2005 (b) N/A
Guarantees made to facilitate
e prime’s natural gas acquisition,
marketing and trading operations Xcel Energy $264.0 $88.0 Continuous (a) N/A
Guarantees for NRG liabilities
associated with power marketing Latest
obligations, fuel purchasing expiration is
transactions and hedging activities Xcel Energy $219.5 $96.3 Dec. 31, 2003 (a) N/A
Guarantee of payment of notes issued
by Guardian Pipeline, LLC, of which Terminated
Viking is one of three partners Xcel Energy $60.0 $60.0 Jan. 17, 2003 (a) N/A
Two guarantees benefiting Cheyenne
to guarantee the payment obligations
under gas and power purchase agreements Xcel Energy $26.5 $1.7 2011 and 2013 (a) N/A
Construction contract performance
guarantee of Utility Engineering
subsidiaries Xcel Energy $25.0 $25.0 July 1, 2003 (c) N/A
Guarantee for obligations of a Electric
customer in connection with September transmission
an electric sale agreement SPS (f ) $17.7 $11.0 2003 (a) system
Guarantees related to energy
conservation projects in which
Planergy has guaranteed certain Expired
energy savings to the customer Xcel Energy $26.7 $26.7 Jan. 1, 2003 N/A N/A
Guarantee for payments related to
energy or financial transactions
for XERS Inc., a nonregulated
subsidiary of Xcel Energy Xcel Energy $11.1 $4.1 Continuous (a) N/A
Guarantee of Security interest
collection of Latest in underlying
receivables sold expiration receivable
to a third party NSP-Minnesota $6.2 $6.2 in 2007 (a) agreements
Combination of guarantees
benefiting various Xcel Energy
subsidiaries Xcel Energy $16.4 $5.4 Continuous (a) N/A
(a) Nonperformance and/or nonpayment
(b) Failure of Xcel Energy or one of its subsidiaries to perform under the agreement that is the subject of the relevant bond. In addition, per the indemnity agreement
between Xcel Energy and the various surety companies, the surety companies have the discretion to demand that collateral be posted.
(c) Failure to meet emission compliance at relevant facility
(d) $5.6-million exposure is related to $265 million of performance bonds associated with a single construction project in which Utility Engineering is participating.
On Dec. 31, 2002, this project was 93-percent complete, and is expected to be fully complete in April 2003. An estimate of exposure for the remaining bonds
cannot be determined as these are largely bonds posted for the benefit of various municipalities relating to the normal course ofbusiness activities.
(e) $116-million exposure is related to $491 million of performance bonds associated with three construction projects in which Utility Engineering is participating.
An estimate of exposure for the remaining bonds cannot be determined as these are largely bonds posted for the benefit of various municipalities relating to the
normal course of business activities. Xcel Energy is not obligated under these agreements.
(f ) SPS would hold title to the collateral and would not be required to transfer the ownership of the additional transmission related facilities to the customer. SPS
would also have access to the customer sinking fund account, which is approximately $6.7 million.
page 80 xcel energy inc. and subsidiaries
notes to consolidated financial statements