Xcel Energy 2015 Annual Report Download - page 91
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Financing plans are subject to change, depending on capital expenditures, internal cash generation, market conditions and other
factors.
Long-Term Borrowings and Other Financing Instruments — See the consolidated statements of capitalization and a discussion of
the long-term borrowings in Note 4 to the consolidated financial statements.
During 2015, Xcel Energy Inc. and its utility subsidiaries completed the following bond issuances:
• PSCo issued $250 million of 2.9 percent first mortgage bonds due May 15, 2025;
• Xcel Energy Inc. issued $250 million of 1.2 percent senior notes due June 1, 2017 and $250 million of 3.3 percent senior
notes due June 1, 2025;
• NSP-Wisconsin issued $100 million of 3.3 percent first mortgage bonds due June 15, 2024;
• NSP-Minnesota issued $300 million of 2.2 percent first mortgage bonds due Aug. 15, 2020 and $300 million of 4.0 percent
first mortgage bonds due Aug. 15, 2045; and
• SPS issued $200 million of 3.3 percent first mortgage bonds due June 15, 2024.
Xcel Energy Inc. issued approximately 5.7 million shares of common stock through an ATM program for approximately $175 million
during the first six months of 2014. Xcel Energy completed its ATM program as of June 30, 2014. Xcel Energy does not anticipate
issuing any additional equity over the next five years based on its current capital expenditure plan.
Income Tax — In December 2015, the Consolidated Appropriations Act, 2016 (Act) was signed into law. The Act provides varying
extensions of bonus depreciation, PTCs, ITCs, and the R&E credit. The impact of these items will vary based on the amount and
timing of investment, level of production, and the amount of qualifying expenditures. See Note 6 to the consolidated financial
statements for further discussion.
Off-Balance-Sheet Arrangements
Xcel Energy does not have any off-balance-sheet arrangements, other than those currently disclosed, that have or are reasonably likely
to have a current or future effect on financial condition, changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to investors.
Earnings Guidance
Xcel Energy’s 2016 ongoing earnings guidance is $2.12 to $2.27 per share. Key assumptions related to 2016 earnings are detailed
below:
• Constructive outcomes in all rate case and regulatory proceedings.
• Normal weather patterns are experienced for the year.
• Weather-normalized retail electric utility sales are projected to increase approximately 0.5 percent to 1.0 percent.
• Weather normalized retail firm natural gas sales are projected to be relatively flat.
• Capital rider revenue is projected to increase by $70 million to $80 million over 2015 levels.
• The change in O&M expenses is projected to be within a range of 0 percent to 2 percent from 2015 levels.
• Depreciation expense is projected to increase approximately $200 million over 2015 levels.
• Property taxes are projected to increase approximately $40 million to $50 million over 2015 levels.
• Interest expense (net of AFUDC — debt) is projected to increase $40 million to $50 million over 2015 levels.
• AFUDC — equity is projected to decline approximately $10 million to $15 million from 2015 levels.
• The ETR is projected to be approximately 34 percent to 36 percent.
• Average common stock and equivalents are projected to be approximately 509 million shares.