Xcel Energy 2005 Annual Report Download - page 56

5. PREFERRED STOCK
Xcel Energy has authorized 7,000,000 shares of preferred stock with a $100 par value. At Dec. 31, 2005, Xcel Energy had six series of preferred
stock outstanding, redeemable at its option at prices ranging from $102.00 to $103.75 per share plus accrued dividends. Under the PUHCA,
unless there was an order from the SEC, a holding company or any subsidiary could declare and pay dividends only out of retained earnings.
With the repeal of the PUHCA, restrictions on the ability of holding companies or utility subsidiaries to declare dividends set out in that
statute no longer apply.
The holders of the $3.60 series preferred stock are entitled to three votes per each share held. The holders of the other series of preferred
stock are entitled to one vote per share. In the event dividends payable on the preferred stock of any series outstanding is in arrears in an
amount equal to four quarterly dividends, the holders of preferred stocks, voting as a class, are entitled to elect the smallest number of
directors necessary to constitute a majority of the board of directors. The holders of common stock, voting as a class, are entitled to elect the
remaining directors.
The charters of some of Xcel Energy’s subsidiaries also authorize the issuance of preferred stock. However, at Dec. 31, 2005, there are no
preferred shares outstanding.
Preferred Shares Preferred Shares
Authorized Par Value Outstanding
SPS 10,000,000 $1.00 None
PSCo 10,000,000 $0.01 None
6. MANDATORILY REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY TRUSTS
NSP Financing I, a wholly owned, special-purpose subsidiary trust of NSP-Minnesota, had $200 million of 7.875-percent trust preferred securities
issued and outstanding that were originally scheduled to mature in 2037. The preferred securities were redeemable at NSP Financing I’s
option at $25 per share, beginning in 2002. On July 31, 2003, NSP-Minnesota redeemed the $200 million of trust preferred securities. A certificate
of cancellation was filed to dissolve NSP Financing I on Sept. 15, 2003.
PSCo Capital Trust I, a wholly owned, special-purpose subsidiary trust of PSCo, had $194 million of 7.60-percent trust preferred securities issued
and outstanding that were originally scheduled to mature in 2038. The securities were redeemable at the option of PSCo after May 2003, at
100 percent of the principal amount outstanding plus accrued interest. On June 30, 2003, PSCo redeemed the $194 million of trust preferred
securities. A certificate of cancellation was filed to dissolve PSCo Capital Trust I on Dec. 29, 2003.
Southwestern Public Service Capital I, a wholly owned, special-purpose subsidiary trust of SPS, had $100 million of 7.85-percent trust preferred
securities issued and outstanding that were originally scheduled to mature in 2036. The securities were redeemable at the option of SPS after
October 2001, at 100 percent of the principal amount plus accrued interest. On Oct. 15, 2003, SPS redeemed the $100 million of trust preferred
securities. A certificate of cancellation was filed to dissolve SPS Capital I on Jan. 5, 2004.
Distributions paid to preferred security holders were reflected as a financing cost in the Consolidated Statements of Operations, along with
interest charges.
54 XCEL ENERGY 2005 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS