Commission File Number | Exact Name of Registrant as Specified in its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone Number | IRS Employer Identification Number | |||||
XCEL ENERGY INC. | |||||||
(a Minnesota corporation) | |||||||
NORTHERN STATES POWER COMPANY | |||||||
(a Minnesota corporation) | |||||||
NORTHERN STATES POWER COMPANY | |||||||
(a Wisconsin corporation) | |||||||
PUBLIC SERVICE COMPANY OF COLORADO | |||||||
(a Colorado corporation) | |||||||
SOUTHWESTERN PUBLIC SERVICE COMPANY | |||||||
(a New Mexico corporation) | |||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Exhibit No. | Description | |
. |
Oct. 24, 2019 | Xcel Energy Inc. (a Minnesota corporation) |
Northern States Power Company (a Minnesota corporation) | |
Northern States Power Company (a Wisconsin corporation) | |
Public Service Company of Colorado (a Colorado corporation) | |
Southwestern Public Service Company (a New Mexico corporation) | |
/s/ ROBERT C. FRENZEL | |
Robert C. Frenzel | |
Executive Vice President, Chief Financial Officer |
414 Nicollet Mall | |
Oct. 24, 2019 | Minneapolis, MN 55401 |
• | GAAP 2019 third quarter diluted earnings per share were $1.01 compared with $0.96 per share in 2018. |
• | Xcel Energy narrows its 2019 EPS guidance range to $2.60 to $2.65 from $2.55 to $2.65. |
• | Xcel Energy initiates 2020 EPS guidance of $2.73 to $2.83. |
US Dial-In: | (720) 543-0214 |
International Dial-In: | (400) 120-8590 |
Conference ID: | 8800386 |
Replay Numbers | |
US Dial-In: | (719) 457-0820 |
International Dial-In: | (888) 203-1112 |
Access Code: | 8121013 |
Paul Johnson, Vice President, Investor Relations | (612) 215-4535 |
For news media inquiries only, please call Xcel Energy Media Relations | (612) 215-5300 |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating revenues | ||||||||||||||||
Electric | $ | 2,771 | $ | 2,802 | $ | 7,345 | $ | 7,419 | ||||||||
Natural gas | 222 | 227 | 1,324 | 1,181 | ||||||||||||
Other | 20 | 19 | 62 | 57 | ||||||||||||
Total operating revenues | 3,013 | 3,048 | 8,731 | 8,657 | ||||||||||||
Operating expenses | ||||||||||||||||
Electric fuel and purchased power | 952 | 1,040 | 2,679 | 2,907 | ||||||||||||
Cost of natural gas sold and transported | 55 | 58 | 646 | 537 | ||||||||||||
Cost of sales — other | 9 | 9 | 28 | 26 | ||||||||||||
Operating and maintenance expenses | 580 | 593 | 1,764 | 1,729 | ||||||||||||
Conservation and demand side management expenses | 75 | 77 | 212 | 216 | ||||||||||||
Depreciation and amortization | 447 | 440 | 1,319 | 1,199 | ||||||||||||
Taxes (other than income taxes) | 137 | 135 | 429 | 417 | ||||||||||||
Total operating expenses | 2,255 | 2,352 | 7,077 | 7,031 | ||||||||||||
Operating income | 758 | 696 | 1,654 | 1,626 | ||||||||||||
Other income (expense) | 8 | (7 | ) | 14 | (8 | ) | ||||||||||
Equity earnings of unconsolidated subsidiaries | 10 | 9 | 29 | 25 | ||||||||||||
Allowance for funds used during construction — equity | 15 | 30 | 55 | 79 | ||||||||||||
Interest charges and financing costs | ||||||||||||||||
Interest charges — includes other financing costs of $6, $6, $19 and $18, respectively | 199 | 177 | 578 | 523 | ||||||||||||
Allowance for funds used during construction — debt | (7 | ) | (13 | ) | (27 | ) | (35 | ) | ||||||||
Total interest charges and financing costs | 192 | 164 | 551 | 488 | ||||||||||||
Income before income taxes | 599 | 564 | 1,201 | 1,234 | ||||||||||||
Income taxes | 72 | 73 | 121 | 187 | ||||||||||||
Net income | $ | 527 | $ | 491 | $ | 1,080 | $ | 1,047 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 519 | 510 | 517 | 510 | ||||||||||||
Diluted | 521 | 511 | 518 | 510 | ||||||||||||
Earnings per average common share: | ||||||||||||||||
Basic | $ | 1.02 | $ | 0.96 | $ | 2.09 | $ | 2.05 | ||||||||
Diluted | 1.01 | 0.96 | 2.08 | 2.05 |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
Diluted Earnings (Loss) Per Share | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Public Service Company of Colorado (PSCo) | $ | 0.39 | $ | 0.41 | $ | 0.86 | $ | 0.91 | ||||||||
NSP-Minnesota | 0.40 | 0.39 | 0.81 | 0.79 | ||||||||||||
Southwestern Public Service Company (SPS) | 0.20 | 0.16 | 0.42 | 0.34 | ||||||||||||
NSP-Wisconsin | 0.06 | 0.06 | 0.12 | 0.15 | ||||||||||||
Equity earnings of unconsolidated subsidiaries | 0.01 | 0.01 | 0.04 | 0.03 | ||||||||||||
Regulated utility (a) | 1.06 | 1.03 | 2.24 | 2.22 | ||||||||||||
Xcel Energy Inc. and Other | (0.05 | ) | (0.07 | ) | (0.16 | ) | (0.17 | ) | ||||||||
Total (a) | $ | 1.01 | $ | 0.96 | $ | 2.08 | $ | 2.05 |
Diluted Earnings (Loss) Per Share | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||
GAAP and ongoing diluted EPS — 2018 | $ | 0.96 | $ | 2.05 | ||||
Components of change — 2019 vs. 2018: | ||||||||
Higher electric margins | 0.08 | 0.22 | ||||||
Lower ETR (a) | 0.03 | 0.12 | ||||||
Higher natural gas margins | — | 0.05 | ||||||
Higher depreciation and amortization | (0.01 | ) | (0.17 | ) | ||||
Higher interest charges | (0.03 | ) | (0.08 | ) | ||||
Lower AFUDC | (0.04 | ) | (0.06 | ) | ||||
Changes in O&M | 0.02 | (0.05 | ) | |||||
GAAP and ongoing diluted EPS — 2019 | $ | 1.01 | $ | 2.08 |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||||
2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | 2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | ||||||||||||
HDD | (64.0 | )% | (18.2 | )% | (57.0 | )% | 10.7 | % | (0.3 | )% | 9.4 | % | |||||
CDD | 27.4 | 14.8 | 20.9 | 6.4 | 27.1 | (14.9 | ) | ||||||||||
THI | (2.6 | ) | 18.2 | (17.0 | ) | (8.2 | ) | 38.4 | (33.2 | ) |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||||||||||
2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | 2019 vs. Normal | 2018 vs. Normal | 2019 vs. 2018 | ||||||||||||||||||
Retail electric | $ | 0.040 | $ | 0.043 | $ | (0.003 | ) | $ | 0.035 | $ | 0.110 | $ | (0.075 | ) | |||||||||
Firm natural gas | (0.001 | ) | — | (0.001 | ) | 0.021 | 0.003 | 0.018 | |||||||||||||||
Total (excluding decoupling) | $ | 0.039 | $ | 0.043 | $ | (0.004 | ) | $ | 0.056 | $ | 0.113 | $ | (0.057 | ) | |||||||||
Decoupling – Minnesota | — | (0.018 | ) | 0.018 | 0.001 | (0.050 | ) | 0.051 | |||||||||||||||
Total (adjusted for decoupling) | $ | 0.039 | $ | 0.025 | $ | 0.014 | $ | 0.057 | $ | 0.063 | $ | (0.006 | ) |
Three Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Actual | |||||||||||||||
Electric residential | 1.7 | % | (6.2 | )% | 5.9 | % | (1.8 | )% | (1.2 | )% | |||||
Electric commercial and industrial | (1.6 | ) | (6.1 | ) | 4.6 | (3.6 | ) | (1.9 | ) | ||||||
Total retail electric sales | (0.5 | ) | (6.1 | ) | 4.7 | (3.1 | ) | (1.7 | ) | ||||||
Firm natural gas sales | 4.2 | 1.7 | N/A | (10.6 | ) | 2.5 |
Three Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Weather-normalized | |||||||||||||||
Electric residential | (1.1 | )% | (1.0 | )% | (1.4 | )% | 1.5 | % | (0.9 | )% | |||||
Electric commercial and industrial | (2.8 | ) | (4.4 | ) | 3.6 | (2.8 | ) | (1.8 | ) | ||||||
Total retail electric sales | (2.2 | ) | (3.4 | ) | 2.4 | (1.7 | ) | (1.6 | ) | ||||||
Firm natural gas sales | 6.8 | 4.0 | N/A | (7.9 | ) | 5.1 |
Nine Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Actual | |||||||||||||||
Electric residential | (0.4 | )% | (4.8 | )% | (0.4 | )% | (2.4 | )% | (2.4 | )% | |||||
Electric commercial and industrial | (0.9 | ) | (4.6 | ) | 3.9 | (2.8 | ) | (1.2 | ) | ||||||
Total retail electric sales | (0.7 | ) | (4.6 | ) | 2.9 | (2.7 | ) | (1.6 | ) | ||||||
Firm natural gas sales | 15.6 | 5.3 | N/A | (1.7 | ) | 10.9 |
Nine Months Ended Sept. 30 | |||||||||||||||
PSCo | NSP-Minnesota | SPS | NSP-Wisconsin | Xcel Energy | |||||||||||
Weather-normalized | |||||||||||||||
Electric residential | (0.2 | )% | — | % | 1.2 | % | 1.1 | % | 0.2 | % | |||||
Electric commercial and industrial | (0.8 | ) | (3.2 | ) | 4.2 | (2.0 | ) | (0.5 | ) | ||||||
Total retail electric sales | (0.5 | ) | (2.3 | ) | 3.5 | (1.2 | ) | (0.3 | ) | ||||||
Firm natural gas sales | 4.9 | 1.3 | N/A | (4.1 | ) | 3.2 |
• | PSCo — Residential sales were lower due to a decrease in customer usage, partially offset by customer additions. Commercial and industrial (C&I) decline was due to lower usage in food and service industries, partially offset by growth in metal fabrication and mining industries. |
• | NSP-Minnesota — Decline in C&I sales was due to expected discrete energy manufacturing customer declines due to newly installed co-generation, which was partially offset by an increase in customers. |
• | SPS — Residential sales growth was due to customer additions, partially offset by lower use per customer. Higher C&I sales was primarily driven by increase in the oil and natural gas industry in the Permian Basin. |
• | NSP-Wisconsin — Residential sales growth was attributable to customer additions and increased usage. Decline in C&I sales was due to lower use per customer and decreased sales to the mining, manufacturing and food industries. |
• | Natural gas sales reflect an increase in the number of customers combined with higher customer use. |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Electric revenues | $ | 2,771 | $ | 2,802 | $ | 7,345 | $ | 7,419 | ||||||||
Electric fuel and purchased power | (952 | ) | (1,040 | ) | (2,679 | ) | (2,907 | ) | ||||||||
Electric margin | $ | 1,819 | $ | 1,762 | $ | 4,666 | $ | 4,512 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 vs. 2018 | Nine Months Ended Sept. 30, 2019 vs. 2018 | ||||||
Non-fuel riders (a) | $ | 25 | $ | 81 | ||||
Regulatory rate outcomes (Minnesota, New Mexico, North and South Dakota) | 32 | 79 | ||||||
Wholesale transmission revenue (net) | 11 | 22 | ||||||
Purchased capacity costs | 6 | 21 | ||||||
Implementation of lease accounting standard (offset in interest expense and amortization) | 5 | 16 | ||||||
Demand revenue | (1 | ) | 12 | |||||
Estimated impact of weather (net of Minnesota decoupling) | 6 | (26 | ) | |||||
Timing of tax reform regulatory decisions (offset in income tax and amortization) | (3 | ) | (22 | ) | ||||
Sales declines (excluding weather impact and net of sales true-up) | (16 | ) | (17 | ) | ||||
Firm wholesale generation | (9 | ) | (14 | ) | ||||
Other (net) | 1 | 2 | ||||||
Total increase in electric margin | $ | 57 | $ | 154 |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Millions of Dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Natural gas revenues | $ | 222 | $ | 227 | $ | 1,324 | $ | 1,181 | ||||||||
Cost of natural gas sold and transported | (55 | ) | (58 | ) | (646 | ) | (537 | ) | ||||||||
Natural gas margin | $ | 167 | $ | 169 | $ | 678 | $ | 644 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 vs. 2018 | Nine Months Ended Sept. 30, 2019 vs. 2018 | ||||||
Estimated impact of weather | $ | — | $ | 12 | ||||
Infrastructure and integrity riders | 4 | 11 | ||||||
Retail sales growth | 1 | 5 | ||||||
Retail rate increase (Colorado, partially offset in amortization) | (8 | ) | 4 | |||||
Transport sales | 1 | 4 | ||||||
Conservation revenue (offset in expenses) | — | (3 | ) | |||||
Other (net) | — | 1 | ||||||
Total (decrease) increase in natural gas margin | $ | (2 | ) | $ | 34 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 vs. 2018 | Nine Months Ended Sept. 30, 2019 vs. 2018 | ||||||
Distribution | $ | — | $ | 23 | ||||
Business systems | (6 | ) | 5 | |||||
Plant generation | — | 3 | ||||||
Natural gas operations | (3 | ) | 1 | |||||
Nuclear plant operations and amortization | (4 | ) | (4 | ) | ||||
Other (net) | — | 7 | ||||||
Total (decrease) increase in O&M expenses | $ | (13 | ) | $ | 35 |
• | Distribution expenses for the nine month comparison were higher due to storms and labor charges incurred during the first half of the year; |
• | Business Systems costs were higher for the nine month comparison, primarily due to increased customer experience transformation program expenses; |
• | Natural gas operation expenses for the nine month comparison increased due to pipeline maintenance; and |
• | Nuclear plant operations and amortization are lower largely reflecting savings initiatives and reduced refueling outage costs. |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||
2019 | 2018 | 2019 vs 2018 | 2019 | 2018 | 2019 vs 2018 | |||||||||||||
Federal statutory rate | 21.0 | % | 21.0 | % | — | % | 21.0 | % | 21.0 | % | — | % | ||||||
State tax (net of federal tax effect) | 5.0 | 5.0 | — | 5.0 | 5.0 | — | ||||||||||||
(Decreases) increases: | ||||||||||||||||||
Wind PTCs | (6.1 | ) | (2.6 | ) | (3.5 | ) | (8.1 | ) | (4.3 | ) | (3.8 | ) | ||||||
Plant regulatory differences (a) | (5.6 | ) | (9.4 | ) | 3.8 | (5.5 | ) | (5.2 | ) | (0.3 | ) | |||||||
Other tax credits and allowances (net) | (1.7 | ) | (1.9 | ) | 0.2 | (1.8 | ) | (1.5 | ) | (0.3 | ) | |||||||
Other (net) | (0.6 | ) | 0.8 | (1.4 | ) | (0.5 | ) | 0.2 | (0.7 | ) | ||||||||
Effective income tax rate | 12.0 | % | 12.9 | % | (0.9 | )% | 10.1 | % | 15.2 | % | (5.1 | )% |
(Millions of Dollars) | Sept. 30, 2019 | Percentage of Total Capitalization | Dec. 31, 2018 | Percentage of Total Capitalization | ||||||||||
Current portion of long-term debt | $ | 853 | 3 | % | $ | 406 | 1 | % | ||||||
Short-term debt | 933 | 3 | 1,038 | 4 | ||||||||||
Long-term debt | 16,819 | 53 | 15,803 | 54 | ||||||||||
Total debt | 18,605 | 59 | 17,247 | 59 | ||||||||||
Common equity | 13,141 | 41 | 12,222 | 41 | ||||||||||
Total capitalization | $ | 31,746 | 100 | % | $ | 29,469 | 100 | % |
(Millions of Dollars) | Credit Facility (a) | Drawn (b) | Available | Cash | Liquidity | |||||||||||||||
Xcel Energy Inc. | $ | 1,250 | $ | 379 | $ | 871 | $ | 1 | $ | 872 | ||||||||||
PSCo | 700 | 9 | 691 | 256 | 947 | |||||||||||||||
NSP-Minnesota | 500 | 19 | 481 | 110 | 591 | |||||||||||||||
SPS | 500 | 2 | 498 | 181 | 679 | |||||||||||||||
NSP-Wisconsin | 150 | 66 | 84 | 1 | 85 | |||||||||||||||
Total | $ | 3,100 | $ | 475 | $ | 2,625 | $ | 549 | $ | 3,174 |
(a) | Credit facilities expire in June 2024. |
(b) | Includes outstanding commercial paper and letters of credit. |
(Millions of Dollars) | Limit | Amount Used | Available | |||||||||
Xcel Energy Inc. | $ | 500 | $ | 500 | $ | — |
(Millions of Dollars) | Limit | Amount Outstanding | Available | |||||||||
NSP-Minnesota | $ | 75 | $ | 20 | $ | 55 |
Credit Type | Company | Moody’s | S&P Global Ratings | Fitch | ||||
Senior Unsecured Debt | Xcel Energy Inc. | Baa1 | BBB+ | BBB+ | ||||
Senior Secured Debt | NSP-Minnesota | Aa3 | A | A+ | ||||
NSP-Wisconsin | Aa3 | A | A+ | |||||
PSCo | A1 | A | A+ | |||||
SPS | A3 | A | A- | |||||
Commercial Paper | Xcel Energy Inc. | P-2 | A-2 | F2 | ||||
NSP-Minnesota | P-1 | A-2 | F2 | |||||
NSP-Wisconsin | P-1 | A-2 | F2 | |||||
PSCo | P-2 | A-2 | F2 | |||||
SPS | P-2 | A-2 | F2 |
Base Capital Forecast | ||||||||||||||||||||||||
By Subsidiary (Millions of Dollars) | 2020 | 2021 | 2022 | 2023 | 2024 | 2020 - 2024 Total | ||||||||||||||||||
NSP-Minnesota | $ | 2,025 | $ | 1,580 | $ | 1,670 | $ | 1,800 | $ | 1,845 | $ | 8,920 | ||||||||||||
PSCo | 1,415 | 1,445 | 1,720 | 1,565 | 1,530 | 7,675 | ||||||||||||||||||
SPS | 1,025 | 530 | 700 | 750 | 800 | 3,805 | ||||||||||||||||||
NSP-Wisconsin | 250 | 320 | 345 | 350 | 425 | 1,690 | ||||||||||||||||||
Other (a) | (85 | ) | (65 | ) | 10 | 10 | 10 | (120 | ) | |||||||||||||||
Total capital expenditures | $ | 4,630 | $ | 3,810 | $ | 4,445 | $ | 4,475 | $ | 4,610 | $ | 21,970 |
Base Capital Forecast | ||||||||||||||||||||||||
By Function (Millions of Dollars) | 2020 | 2021 | 2022 | 2023 | 2024 | 2020 - 2024 Total | ||||||||||||||||||
Electric distribution | $ | 885 | $ | 1,140 | $ | 1,415 | $ | 1,470 | $ | 1,350 | $ | 6,260 | ||||||||||||
Electric transmission | 625 | 835 | 1,295 | 1,270 | 1,260 | 5,285 | ||||||||||||||||||
Electric generation | 480 | 595 | 580 | 780 | 1,000 | 3,435 | ||||||||||||||||||
Natural gas | 520 | 450 | 600 | 560 | 640 | 2,770 | ||||||||||||||||||
Other | 360 | 475 | 555 | 395 | 360 | 2,145 | ||||||||||||||||||
Renewables | 1,760 | 315 | — | — | — | 2,075 | ||||||||||||||||||
Total capital expenditures | $ | 4,630 | $ | 3,810 | $ | 4,445 | $ | 4,475 | $ | 4,610 | $ | 21,970 |
(Millions of Dollars) | ||||
Funding Capital Expenditures | ||||
Cash from Operations(a) | $ | 13,905 | ||
New Debt(b) | 6,665 | |||
Equity through the Dividend Reinvestment Program (DRIP) and Benefit Program | 400 | |||
Other equity | 1,000 | |||
Base Capital Expenditures 2020-2024 | $ | 21,970 | ||
Maturing Debt | $ | 3,245 |
(b) | Reflects a combination of short and long-term debt; net of refinancing. |
Issuer | Security | Amount (in millions) | Status | Tenor | Coupon | ||||||||
PSCo | First Mortgage Bonds | $ | 400 | Completed | 30 Year | 4.05 | % | ||||||
Xcel Energy Inc. | Senior Unsecured Bonds | 130 | Completed | 9 Year | 4.00 | ||||||||
SPS | First Mortgage Green Bonds | 300 | Completed | 30 Year | 3.75 | ||||||||
PSCo | First Mortgage Green Bonds | 550 | Completed | 30 Year | 3.20 | ||||||||
NSP-Minnesota | First Mortgage Green Bonds | 600 | Completed | 30 Year | 2.90 | ||||||||
Xcel Energy Inc. | Senior Unsecured Bonds | 1,000 | Pending | TBD | TBD |
• | Xcel Energy Inc. - approximately $700 million of senior unsecured bonds; |
• | NSP-Minnesota - approximately $550 million of first mortgage bonds; |
• | NSP-Wisconsin - approximately $100 million of first mortgage bonds; |
• | PSCo - approximately $750 million of first mortgage bonds; and |
• | SPS - approximately $300 million of first mortgage bonds. |
• | Settlement deadline — Oct. 30, 2019 |
• | Evidentiary hearing — Nov. 4-13, 2019 |
• | A CPUC decision is anticipated in December 2019 with implementation of final rates on Jan. 1, 2020. |
(Millions of Dollars) | Filed base revenue request | Less: Previously authorized costs (existing riders) (b) | Filed net change to revenue (c) | |||||||||
PSCo | $ | 408 | $ | 249 | $ | 158 | ||||||
CPUC Staff (a) | 235 | 227 | 8 | |||||||||
FEA | 246 | 239 | 7 | |||||||||
OCC (a) | 207 | 216 | (9 | ) | ||||||||
CEC (a) | 187 | 213 | (26 | ) |
(a) | Staff, OCC and CEC have incorporated corrections to the filed case of ($4) million identified by PSCo. |
(b) | Amounts derived from intervenors’ positions attributable to previously authorized costs (existing riders), impacted by proposed differences in weighted average cost of capital. |
(c) | Amounts may not add due to rounding. |
Recommended Position | Staff | FEA | OCC | CEC | |||||||||
ROE | 9.00 | % | 9.20 | % | 8.80 | % | 8.90 | % | |||||
Equity | 55.57 | % | 56.11 | % | 54.60 | % | 54.27 | % | |||||
Test Year | 2019 Current | (a) | 2018 Historic | (b) | 2018 Historic | (c) | 2018 Historic | (d) |
(a) | Incorporated 13-month average of proposed forecasted plant additions and rejected adjustments for wildfire mitigation improvements. |
(b) | Incorporated year-end rate base and rejected proposed forecasted plant additions. Except for the transmission portion, the FEA supported portions of wildfire mitigation improvements and included 2019 distribution capital and O&M in its cost of service amount. |
(c) | Incorporated proposed 13-month average rate base while rejecting the proposed forecasted plant additions including amounts requested for AGIS and wildfire mitigation improvements. |
(d) | Rejected proposed forecasted plant additions and the majority of the adjustment for wildfire mitigation improvements. |
Revenue Request (Millions of Dollars) | ||||
Hale Wind Farm | $ | 62 | ||
Capital investments | 47 | |||
Depreciation rate change (including Tolk) | 34 | |||
Cost of capital | 10 | |||
Expiring purchased power contracts | (28 | ) | ||
Other, net | 11 | |||
New revenue request | $ | 136 |
• | Intervenor testimony — Feb. 10, 2020 |
• | Staff testimony — Feb. 18, 2020 |
• | Rebuttal testimony — March 11, 2020 |
• | Public hearing begins — March 30, 2020 |
• | Final order deadline — Sept. 7, 2020 |
Revenue Request (Millions of Dollars) | ||||
Hale Wind Farm | $ | 28 | ||
Other plant investment | 22 | |||
Wholesale sales reduction | 17 | |||
Allocator changes due to load growth | 15 | |||
Depreciation rate change (including Tolk) | 15 | |||
Base rate sales growth | (41 | ) | ||
Other, net | (5 | ) | ||
New revenue request | $ | 51 |
• | Filing of stipulation, if any — Nov. 15, 2019 |
• | Staff and intervenor testimony or testimony in support of a stipulation — Nov. 22, 2019 |
• | Testimony in opposition to a stipulation, if any — Dec. 6, 2019 |
• | Rebuttal testimony — Dec. 20, 2019 |
• | Public hearing begins — Jan. 7, 2020 |
• | End of 9-month suspension — April 30, 2020 |
• | Constructive outcomes in all rate case and regulatory proceedings. |
• | Normal weather patterns for the remainder of the year. |
• | Weather-normalized retail electric sales are projected to be relatively consistent. |
• | Weather-normalized retail firm natural gas sales are projected to be within a range of 2.0% to 3.0%. |
• | Capital rider revenue is projected to increase $115 million to $125 million (net of PTCs). PTCs are credited to customers, through capital riders and reductions to electric margin. |
• | Purchase capacity costs are expected to decline $25 million to $30 million. |
• | O&M expenses are projected to decrease approximately 1.0% to 2.0%. |
• | Depreciation expense is projected to increase approximately $135 million to $145 million. Depreciation expense includes $34 million for the amortization of a prepaid pension asset at PSCo, which is tax reform related and will not impact earnings. |
• | Property taxes are projected to increase approximately $10 million to $20 million. |
• | Interest expense (net of AFUDC - debt) is projected to increase $80 million to $90 million. |
• | AFUDC - equity is projected to decrease approximately $20 million to $30 million. |
• | The ETR is projected to be approximately 8% to 10%. The ETR reflects benefits of PTCs which are credited to customers through electric margin and will not impact net income. |
• | Constructive outcomes in all rate case and regulatory proceedings. |
• | Normal weather patterns. |
• | Weather-normalized retail electric sales are projected to increase ~1%, including impact of leap year. |
• | Weather-normalized retail firm natural gas sales are projected to increase ~1%, including impact of leap year. |
• | Capital rider revenue is projected to increase $45 million to $55 million (net of PTCs). PTCs are credited to customers, through capital riders and reductions to electric margin. |
• | O&M expenses are projected to increase approximately 2%. |
• | Depreciation expense is projected to increase approximately $180 million to $190 million, which includes $30 million of nuclear decommission which is expected to be recovered from customers in rate filings. |
• | Property taxes are projected to increase approximately $25 million to $35 million. |
• | Interest expense (net of AFUDC - debt) is projected to increase $50 million to $60 million. |
• | AFUDC - equity is projected to increase approximately $20 million to $30 million. |
• | The ETR is projected to be approximately 0%. The ETR reflects benefits of PTCs which are credited to customers through electric margin and will not impact net income. |
(a) | Ongoing earnings is calculated using net income and adjusting for certain nonrecurring or infrequent items that are, in management’s view, not reflective of ongoing operations. Ongoing earnings could differ from those prepared in accordance with GAAP for unplanned and/or unknown adjustments. Xcel Energy is unable to forecast if any of these items will occur or provide a quantitative reconciliation of the guidance for ongoing EPS to corresponding GAAP EPS. |
• | Deliver long-term annual EPS growth of 5% to 7% off of a 2019 base of $2.60 per share, which represents the mid-point of the original 2019 guidance range of $2.55 to $2.65 per share; |
• | Deliver annual dividend increases of 5% to 7%; |
• | Target a dividend payout ratio of 60% to 70%; and |
• | Maintain senior secured debt credit ratings in the A range. |
Three Months Ended Sept. 30 | ||||||||
2019 | 2018 | |||||||
Operating revenues: | ||||||||
Electric and natural gas | $ | 2,993 | $ | 3,029 | ||||
Other | 20 | 19 | ||||||
Total operating revenues | 3,013 | 3,048 | ||||||
Net income | $ | 527 | $ | 491 | ||||
Weighted average diluted common shares outstanding | 521 | 511 | ||||||
Components of EPS — Diluted | ||||||||
Regulated utility | $ | 1.06 | $ | 1.03 | ||||
Xcel Energy Inc. and other costs | (0.05 | ) | (0.07 | ) | ||||
GAAP and ongoing diluted EPS | $ | 1.01 | $ | 0.96 | ||||
Cash dividends declared per common share | $ | 0.41 | $ | 0.38 |
Nine Months Ended Sept. 30 | ||||||||
2019 | 2018 | |||||||
Operating revenues: | ||||||||
Electric and natural gas | $ | 8,669 | $ | 8,600 | ||||
Other | 62 | 57 | ||||||
Total operating revenues | 8,731 | 8,657 | ||||||
Net income | $ | 1,080 | $ | 1,047 | ||||
Weighted average diluted common shares outstanding | 518 | 510 | ||||||
Components of EPS — Diluted | ||||||||
Regulated utility | $ | 2.24 | $ | 2.22 | ||||
Xcel Energy Inc. and other costs | (0.16 | ) | (0.17 | ) | ||||
GAAP and ongoing diluted EPS | $ | 2.08 | $ | 2.05 | ||||
Book value per share | $ | 25.35 | $ | 23.85 | ||||
Cash dividends declared per common share | 1.22 | 1.14 |
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