Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

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.

•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 non-utility 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 and nine months ended Sept. 30:

	Three Months Ended Sept. 30
(Millions of Dollars)	2020		2019
Regulated Electric
Operating revenues	$	915.9	$	880.7
Intersegment revenue	0.1		0.1
Total revenues	$	916.0	$	880.8
Net income	214.5		204.7
Regulated Natural Gas
Operating revenues	$	156.4	$	153.9
Intersegment revenue	0.1		0.1
Total revenues	$	156.5	$	154.0
Net income	4.4		0.7
All Other
Operating revenues (a)	$	8.8	$	9.7
Net loss	(0.5)		(0.9)
Consolidated Total
Operating revenues (a)	$	1,081.3	$	1,044.5
Reconciling eliminations	(0.2)		(0.2)
Total operating revenues	$	1,081.1	$	1,044.3
Net income	218.4		204.5

(a)    Operating revenues include $1.1 million of other affiliate revenue for the three months ended Sept. 30, 2020 and 2019.

	Nine Months Ended Sept. 30
(Millions of Dollars)	2020		2019
Regulated Electric
Operating revenues	$	2,343.1	$	2,314.8
Intersegment revenue	0.3		0.3
Total revenues	$	2,343.4	$	2,315.1
Net income	377.5		371.9
Regulated Natural Gas
Operating revenues	$	674.1	$	830.7
Intersegment revenues	—		0.2
Total revenues	$	674.1	$	830.9
Net income	72.5		77.5
All Other
Operating revenues (a)	$	31.7	$	31.8
Net income (loss)	5.2		(4.6)
Consolidated Total
Operating revenues (a)	$	3,049.2	$	3,177.8
Reconciling eliminations	(0.3)		(0.5)
Total operating revenues	$	3,048.9	$	3,177.3
Net income	455.2		444.8

(a)    Operating revenues include $3.3 million of other affiliate revenue for the nine months ended Sept. 30, 2020 and 2019.