Xcel Energy 2012 Annual Report Download - page 141

Download and view the complete annual report

Please find page 141 of the 2012 Xcel Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

131
Equity financing for these entities has been provided by Eloigne and NSP-Wisconsin and the general partner of each limited
partnership, and Xcel Energy’s risk of loss is limited to its capital contributions, adjusted for any distributions and its share of
undistributed profits and losses; no significant additional financial support has been, or is in the future, required to be provided to
the limited partnerships by Eloigne or NSP-Wisconsin. Mortgage-backed debt typically comprises the majority of the financing at
inception of each limited partnership and is paid over the life of the limited partnership arrangement. Obligations of the limited
partnerships are generally secured by the housing properties of each limited partnership, and the creditors of each limited
partnership have no significant recourse to Xcel Energy Inc. or its subsidiaries. Likewise, the assets of the limited partnerships
may only be used to settle obligations of the limited partnerships, and not those of Xcel Energy Inc. or its subsidiaries.
Amounts reflected in Xcel Energy’s consolidated balance sheets for the Eloigne and NSP-Wisconsin low-income housing limited
partnerships include the following:
(Thousands of Dollars)
Dec. 31, 2012
Dec. 31, 2011
Current assets ................................
.......................
$
3,380
$
4,034
Property, plant and equipment, net ................................
....
72,489
90,914
Other noncurrent assets ................................
..............
6,044
8,053
Total assets ................................
.........................
$
81,913
$
103,001
Current liabilities ................................
....................
$
8,458
$
12,297
Mortgages and other long-term debt payable
...........................
37,720
48,863
Other noncurrent liabilities ................................
...........
7,678
8,278
Total liabilities ................................
......................
$
53,856
$
69,438
Technology Agreements — Xcel Energy has an amended contract that extends through June 30, 2019 with International Business
Machines Corp. (IBM) for information technology services. The contract is cancelable at Xcel Energy’s option, although Xcel
Energy would be obligated to pay 50 percent of the contract value for early termination. Xcel Energy capitalized or expensed
$86.5 million, $93.6 million and $95.6 million associated with the IBM contract in 2012, 2011, and 2010, respectively.
Xcel Energy’s contract with Accenture for information technology services extends through Jan. 31, 2017. The contract is
cancelable at Xcel Energy’s option, although there are financial penalties for early termination. Xcel Energy capitalized or
expensed $18.3 million, $15.2 million and $22.7 million associated with the Accenture contract in 2012, 2011 and 2010,
respectively.
Committed minimum payments under these obligations are as follows:
IBM
Accenture
(Millions of Dollars)
Agreement
Agreement
2013................................
................................
$
36.0
$
9.0
2014................................
................................
34.6
8.8
2015................................
................................
31.5
8.7
2016................................
................................
30.7
8.7
2017................................
................................
30.9
-
Thereafter................................
...........................
45.4
-
Guarantees and Indemnifications
Xcel Energy Inc. and its subsidiaries provide guarantees and bond indemnities under specified agreements or transactions. The
guarantees and bond indemnities issued by Xcel Energy Inc. guarantee payment or performance by its subsidiaries. As a result,
Xcel Energy Inc.’s exposure under the guarantees and bond indemnities is based upon the net liability of the relevant subsidiary
under the specified agreements or transactions. Most of the guarantees and bond indemnities issued by Xcel Energy Inc. and its
subsidiaries limit the exposure to a maximum amount stated in the guarantees and bond indemnities. As of Dec. 31, 2012 and
2011, Xcel Energy Inc. and its subsidiaries had no assets held as collateral related to their guarantees, bond indemnities and
indemnification agreements.