Segment Information

6 Months Ended

Jun. 30, 2021

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:

	Three Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues	$	827	$	715
Net income	107		89
Regulated Natural Gas
Total revenues	$	338	$	186
Net income	30		16
All Other
Total revenues (a)	$	9	$	10
Net (loss) income	(3)		3
Consolidated Total
Total revenues (a)	$	1,174	$	911
Net income	134		108

(a)    Total revenues include $1 million of other affiliate revenue for both the three months ended June 30, 2021 and 2020.

	Six Months Ended June 30
(Millions of Dollars)	2021		2020
Regulated Electric
Total revenues	$	1,560	$	1,427
Net income	188		163
Regulated Natural Gas
Total revenues	$	753	$	518
Net income	114		68
All Other
Total revenues (a)	$	22	$	23
Net (loss) income	(1)		6
Consolidated Total
Total revenues (a)	$	2,335	$	1,968
Net income	301		237

(a)    Total revenues include $2 million of other affiliate revenue for both the six months ended June 30, 2021 and 2020.