Xcel Energy 2011 Annual Report Download - page 84

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74
Earnings Guidance
Xcel Energy expects its 2012 ongoing earnings will be in the lower half of the guidance range of $1.75 to $1.85 per share. Key
assumptions related to ongoing earnings are detailed below:
• Constructive outcomes in all rate case and regulatory proceedings.
• Normal weather patterns are experienced for the year.
• Weather-adjusted retail electric utility sales are projected to grow 0.5 to 1.0 percent.
• Weather-adjusted retail firm natural gas sales are projected to be relatively flat.
• Rider revenue recovery is projected to increase approximately $50 million to $60 million over 2011 levels.
• O&M expenses are projected to increase approximately 1.0 to 3.0 percent over 2011 levels.
• Depreciation expense is projected to increase $60 million to $70 million over 2011 levels. This assumes depreciation
expense in both 2011 and 2012 is reduced by $30 million, consistent with the settlement agreement in the Minnesota
electric rate case, which is pending a MPUC decision.
• Property taxes are projected to increase by $20 million to $25 million over 2011 levels, net of NSP-Minnesota’s request
for deferred accounting for 2012 property tax increases, which is pending a MPUC decision.
• Interest expense (net of AFUDC — debt) is projected to be relatively flat.
• AFUDC — equity is projected to increase approximately $25 million to $30 million over 2011 levels.
• The effective tax rate is projected to be approximately 34 percent to 36 percent.
• Average common stock and equivalents are projected to be approximately 488 million shares.
Item 7A — Quantitative and Qualitative Disclosures About Market Risk
See Item 7, incorporated by reference.
Item 8 — Financial Statements and Supplementary Data
See Item 15-1 for an index of financial statements included herein.
See Note 17 to the consolidated financial statements for summarized quarterly financial data.