Segments and Related Information

12 Months Ended

Dec. 31, 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 also presents All 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:

(Millions of Dollars)	2020		2019		2018
Regulated Electric
Operating revenues - external	$	3,116	$	3,033	$	3,031
Intersegment revenue	1		1		—
Total revenues	$	3,117	$	3,034	$	3,031
Depreciation and amortization	497		455		416
Interest charges and financing costs	173		173		142
Income tax expense	13		45		103
Net income	460		465		429
Regulated Natural Gas
Operating revenues - external	$	1,024	$	1,161	$	1,015
Intersegment revenue	—		—		1
Total revenues	$	1,024	$	1,161	$	1,016
Depreciation and amortization	152		141		140
Interest charges and financing costs	50		50		43
Income tax expense	29		33		13
Net income	126		119		121
All Other
Total revenues (a)	$	43	$	43	$	40
Depreciation and amortization	6		6		5
Interest charges and financing costs	1		1		1
Income tax expense (benefit)	3		2		(3)
Net income (loss)	2		(6)		2
Consolidated Total
Total revenues (a)	$	4,184	$	4,238	$	4,087
Reconciling eliminations	(1)		(1)		(1)
Total operating revenues	$	4,183	$	4,237	$	4,086
Depreciation and amortization	655		602		561
Interest charges and financing costs	224		224		186
Income tax expense	45		80		113
Net income	588		578		552

(a)    Operating revenues include $5 million, $5 million and $4 million of intercompany revenue for the years ended Dec. 31, 2020, 2019 and 2018, respectively. See Note 13 for further information.