Segment Information

9 Months Ended

Sep. 30, 2019

Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by PSCo’s chief operating decision maker. PSCo evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.

PSCo has the following reportable segments: regulated electric utility, regulated natural gas utility and all other.


•	Regulated Electric - The regulated electric utility segment generates electricity which is transmitted and distributed in Colorado. This segment includes sales for resale and provides wholesale transmission service to various entities in the United States. Regulated electric utility also includes PSCo’s wholesale commodity and trading operations.


•	Regulated Natural Gas - The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Colorado.


•	All Other - Revenues from operating segments not included above are below the necessary quantitative thresholds are included in the all other category. Those primarily include steam revenue, appliance repair services and nonutility real estate activities.

Asset and capital expenditure information is not provided for PSCo’s reportable segments. As an integrated electric and natural gas utility, PSCo operates significant assets that are not dedicated to a specific business segment. Reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

PSCo’s segment information for the three and nine months ended Sept. 30:



	Three Months Ended Sept. 30
(Millions of Dollars)	2019			2018
Regulated Electric
Operating revenues	$	880.7		$	894.8
Intersegment revenues	0.1			—
Total revenue	880.8			894.8
Net income	204.7			191.7
Regulated Natural Gas
Operating revenues	$	153.9		$	157.2
Intersegment revenues	0.1			0.3
Total revenue	154.0			157.5
Net income	0.7			15.1
All Other
Operating revenues^(a)	$	9.7		$	8.7
Net (loss) income	(0.9		)	0.3
Consolidated Total
Operating revenues^(a)	$	1,044.5		$	1,061.0
Reconciling eliminations	(0.2		)	(0.3		)
Total revenue	$	1,044.3		$	1,060.7
Net income	204.5			207.1


^(a)	Operating revenues include $1.1 million of other affiliate revenue for the three months ended Sept. 30, 2019 and 2018.



	Nine Months Ended Sept. 30
(Millions of Dollars)	2019			2018
Regulated Electric
Operating revenues	$	2,314.8		$	2,309.3
Intersegment revenues	0.3			0.2
Total revenue	2,315.1			2,309.5
Net income	371.9			373.3
Regulated Natural Gas
Operating revenues	$	830.7		$	707.8
Intersegment revenues	0.2			0.4
Total revenue	830.9			708.2
Net income	77.5			89.7
All Other
Operating revenues^(a)	$	31.8		$	28.7
Net (loss) income	(4.6		)	0.1
Consolidated Total
Operating revenues^(a)	$	3,177.8		$	3,046.4
Reconciling eliminations	(0.5		)	(0.6		)
Total revenue	$	3,177.3		$	3,045.8
Net income	444.8			463.1

^(a)

Operating revenues include $3.3 million of other affiliate revenue for the nine months ended Sept. 30, 2019 and 2018.