Segments and Related Information

12 Months Ended

Dec. 31, 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, transmits and distributes electricity 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. 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:

(Millions of Dollars)	2022		2021		2020
Regulated Electric
Operating revenues — external	$	3,795	$	3,413	$	3,116
Intersegment revenue	1		1		1
Total revenues	$	3,796	$	3,414	$	3,117
Depreciation and amortization	650		566		497
Interest charges and financing costs	200		179		173
Income tax (benefit) expense	(11)		(16)		13
Net income	550		495		460
Regulated Natural Gas
Total revenues	$	1,860	$	1,355	$	1,024
Depreciation and amortization	190		171		152
Interest charges and financing costs	59		53		50
Income tax expense	49		45		29
Net income	180		168		126
All Other
Total revenues (a)	$	53	$	47	$	43
Depreciation and amortization	8		7		6
Interest charges and financing costs	1		2		1
Income tax (benefit) expense	(1)		4		3
Net (loss) income	(3)		(3)		2
Consolidated Total
Total revenues (a)	$	5,709	$	4,816	$	4,184
Reconciling eliminations	(1)		(1)		(1)
Total operating revenues	$	5,708	$	4,815	$	4,183
Depreciation and amortization	848		744		655
Interest charges and financing costs	260		234		224
Income tax expense	37		33		45
Net income	727		660		588

(a)    Operating revenues include $5 million of other affiliate revenue for the years ended Dec. 31, 2022, 2021 and 2020, respectively. See Note 13 for further information.