Xcel Energy 2007 Annual Report Download - page 139

and liabilities in its consolidated statement of income. The components of unamortized regulatory assets and liabilities
of continuing operations shown on the consolidated balance sheets at Dec. 31 are:
See Note(s) Remaining Amortization Period 2007 2006
(Thousands of Dollars)
Regulatory Assets
Current regulatory asset — Unrecovered fuel costs . 1 Less than one year $ 73,415 $ 258,600
Pension and employee benefit obligations ...... 10 Various $ 387,127 $ 475,815
AFDC recorded in plant(a) ............... Plant lives 189,698 179,023
Conservation programs(a) ................ Various 119,839 124,123
Contract valuation adjustments(b) ........... 12 Term of relatedcontract 106,649 109,221
Losses on reacquired debt ............... 1 Term of related debt 73,002 74,420
Environmental costs ................... 15,16 Generally four to six years once actual expenditures 55,038 35,715
are incurred
Renewable resource costs ................ One to two years 51,785 49,902
Net asset retirement obligations(c) ........... 1,15 Plant lives 39,891 54,550
Unrecovered natural gas costs ............. 1 One to two years 22,505 17,943
State commission accounting adjustments(a) ..... Various 13,828 13,950
MISO Day 2 costs ................... 1 To be determined in future rate proceedings 12,035 11,014
Nuclear fuel storage ................... Four years 11,578 14,473
Nuclear decommissioning costs ............ To be determined in future rate proceedings 11,149 9,325
Rate case costs ...................... 1 Various 9,630 8,689
Other ........................... Various 11,689 10,982
Total noncurrent regulatory assets ............ $1,115,443 $1,189,145
Regulatory Liabilities
Current regulatory liability — Overrecovered fuel
costs(d) ......................... $ 34,451 $ 4,279
Plant removal costs ................... 1,15 $ 906,996 $ 920,583
Pension and employee benefit obligations ...... 10 205,133 196,803
Contract valuation adjustments(b) ........... 12 108,533 56,745
Investment tax credit deferrals ............. 72,686 78,205
Deferred income tax adjustments ........... 1 59,282 67,002
Gain on sale of emission allowances ......... 1 21,334 7,417
Interest on income tax refunds ............ 3,472 5,233
Over recovered fuel costs ................ 149 10,054
Other ........................... 12,402 22,615
Total noncurrent regulatory liabilities .......... $1,389,987 $1,364,657
(a) Earns a return on investment in the ratemaking process. These amounts are amortized consistent with recovery in rates.
(b) Includes the fair value of certain long-term purchased power agreements used to meet energy capacity requirements.
(c) Includes amounts recorded for future recovery of AROs, less amounts recovered through nuclear decommissioning accruals and gains from decommissioning investments.
(d) Included in other current liabilities of $419,209 and $347,809 at Dec. 31, 2007 and 2006, respectively, in the consolidated balance sheets.
18. Segments and Related Information
The regulated electric utility operating results of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS, as well as the
regulated natural gas utility operating results of NSP-Minnesota, NSP-Wisconsin, and PSCo are each separately and
regularly reviewed by Xcel Energy’s chief operating decision maker. Xcel Energy evaluates performance by each utility
subsidiary based on profit or loss generated from the product or service provided. These segments are managed
separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for
each segment.
Given the similarity of the regulated electric utility operations of its utility subsidiaries, and the similarity of the
regulated natural gas utility operations its utility subsidiaries, Xcel Energy has the following reportable segments:
regulated electric utility, regulated natural gas utility and all other.
• Xcel Energy’s regulated electric utility segment generates, transmits and distributes electricity in Minnesota,
Wisconsin, Michigan, North Dakota, South Dakota, Colorado, Texas and New Mexico. In addition, this
segment includes sales for resale and provides wholesale transmission service to various entities in the United
States. Regulated electric utility also includes commodity trading operations.
In October 2005, SPS reached a definitive agreement to sell its delivery system operations in Oklahoma, Kansas
and a small portion of Texas to Tri-County Electric Cooperative. Effective July 31, 2006, SPS completed the
sale to Tri-County Electric Cooperative for $24.5 million and a gain of $6.1 million was recognized. SPS now
provides wholesale service to Tri-County Electric Cooperative.
• Xcel Energy’s regulated natural gas utility segment transports, stores and distributes natural gas primarily in
portions of Minnesota, Wisconsin, North Dakota, Michigan and Colorado.
Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore
included in the all other category. Those primarily include steam revenue, appliance repair services, nonutility real estate
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