Xcel Energy 2007 Annual Report Download - page 77

In the event of a downgrade of its credit ratings to below investment grade, Xcel Energy may be required to provide
credit enhancements in the form of cash collateral, letters of credit or other security to satisfy all or a part of its
exposures under guarantees outstanding. See a list of guarantees at Note 13 to the consolidated financial statements.
Xcel Energy has no explicit credit rating requirements in its debt agreements.
Money Pool — Xcel Energy received FERC approval to establish a utility money pool arrangement with the utility
subsidiaries, subject to receipt of required state regulatory approvals. The utility money pool allows for short-term loans
between the utility subsidiaries and from the holding company to the utility subsidiaries at market-based interest rates.
The utility money pool arrangement does not allow loans from the utility subsidiaries to the holding company.
NSP-Minnesota, PSCo and SPS participate in the money pool pursuant to approval from their respective state
regulatory commissions.
The borrowings or loans outstanding at Dec. 31, 2007, and the SEC approved short-term borrowing limits from the
money pool are as follows (millions):
Total
Borrowings Borrowing
(Loans) Limits
NSP-Minnesota ........................................ $(95.1) $250
PSCo .............................................. 100.6 250
SPS................................................ (5.5) 100
Registration Statements — Xcel Energy’s articles of incorporation authorize the issuance of 1 billion shares of common
stock. As of Dec. 31, 2007, Xcel Energy had approximately 429 million shares of common stock outstanding. In
addition, Xcel Energy’s articles of incorporation authorize the issuance of 7 million shares of $100 par value preferred
stock. On Dec. 31, 2007, Xcel Energy had approximately 1 million shares of preferred stock outstanding. Xcel Energy
and its subsidiaries have the following registration statements on file with the SEC, pursuant to which they may sell,
from time to time, securities:
• Xcel Energy has an effective automatic shelf registration statement that does not contain a limit on issuance capacity;
however, Xcel Energy’s ability to issue securities is limited by authority granted by the Board of Directors, which
authority currently authorizes the issuance of up to an additional $1.1 billion of debt securities.
• NSP-Minnesota has $1.5 billion of debt securities available under its current effective registration statement.
• PSCo has approximately $850 million of debt securities available under its currently effective registration statement.
Future Financing Plans
Xcel Energy generally expects to fund its operations and capital investments primarily through internally generated
funds. Xcel Energy expects to convert the $57.5 million principal balance of its Senior Convertible Notes due Nov. 21,
2008, to common equity by the maturity date of the notes. Xcel Energy plans to issue commercial paper to meet
short-term working capital requirements.
During 2008, Xcel Energy plans to issue debt securities at several of its operating companies. These financing plans are
subject to change, depending on capital expenditures, internal cash generation, market conditions and other factors.
Current debt financing plans include the following:
• NSP-Minnesota plans to issue between $400-$500 million of long-term senior debt securities to refinance
outstanding commercial paper, to fund utility capital expenditures and to provide funds for general corporate
purposes. NSP-Minnesota plans to issue commercial paper to meet short-term working capital requirements,
including funding for inter-company loans to NSP-Wisconsin.
• PSCo plans to issue between $500-$600 million of long-term senior debt securities to refinance a $300 million
long-term debt maturity, to refinance outstanding commercial paper, to fund utility capital expenditures and to
provide funds for general corporate purposes. PSCo plans to issue commercial paper to meet short-term working
capital requirements.
• NSP-Wisconsin plans to issue up to $250 million of long-term senior debt securities to refinance an $80 million
long-term debt maturity, to repay outstanding short-term debt, to fund utility capital expenditures and to provide
funds for general corporate purposes. NSP-Wisconsin plans to issue inter-company notes to NSP-Minnesota to meet
short-term working capital requirements.
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