Segment Information

9 Months Ended

Sep. 30, 2022

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. The regulated electric utility segment 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.

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:

	Three Months Ended Sept. 30
(Millions of Dollars)	2022		2021
Regulated Electric
Total revenues	$	1,137	$	1,048
Net income	243		212
Regulated Natural Gas
Total revenues	$	235	$	177
Net income	4		8
All Other
Total revenues (a)	$	11	$	12
Net loss	—		(5)
Consolidated Total
Total revenues (a)	$	1,383	$	1,237
Net income	247		215

(a)    Total revenues include $2 million and $1 million of other affiliate revenue for the three months ended Sept. 30, 2022 and 2021.

	Nine Months Ended Sept. 30
(Millions of Dollars)	2022		2021
Regulated Electric
Operating revenues — external	$	2,849	$	2,608
Intersegment revenue	—		1
Total revenues	2,849		2,609
Net income	455		400
Regulated Natural Gas
Total revenues	$	1,087	$	930
Net income	99		121
All Other
Total revenues (a)	$	39	$	34
Net income (loss)	1		(5)
Consolidated Total
Total revenues (a)	$	3,975	$	3,573
Reconciling eliminations	—		(1)
Total operating revenues	$	3,975	$	3,572
Net income	555		516

(a)    Total revenues include $4 million and $3 million of other affiliate revenue for the nine months ended Sept. 30, 2022 and 2021.