Segment Information

3 Months Ended

Mar. 31, 2020

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 — 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; and


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

PSCo presents Other, which includes operating segments, with revenues below the necessary quantitative thresholds. Those operating segments 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 because as an integrated electric and natural gas utility, PSCo operates significant assets that are not dedicated to a specific business segment and 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.

To report income from operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment. However, some costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators. 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 months ended March 31:



(Millions of Dollars)	2020			2019
Regulated Electric
Operating revenues	$	711.8		$	741.5
Intersegment revenues	0.1			0.1
Total revenue	711.9			741.6
Net income	74.0			82.4
Regulated Natural Gas
Operating revenues	$	331.5		$	469.1
Intersegment revenues	(0.1		)	0.1
Total revenue	331.4			469.2
Net income	52.1			59.2
All Other
Operating revenues^(a)	$	13.4		$	12.4
Net income (loss)	2.6			(2.8		)
Consolidated Total
Operating revenues^(a)	$	1,056.7		$	1,223.2
Reconciling eliminations	—			(0.2		)
Total revenue	$	1,056.7		$	1,223.0
Net income	128.7			138.8

^(a)

Operating revenues include $1.1 million of other affiliate revenue for the three months ended March 31, 2020 and 2019.