Segment Information

9 Months Ended

Sep. 30, 2023

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)	2023		2022
Regulated Electric
Total revenues	$	1,113	$	1,137
Net income	247		243
Regulated Natural Gas
Total revenues	$	165	$	235
Net (loss) income	(16)		4
All Other
Total revenues (a)	$	12	$	11
Net loss	(2)		—
Consolidated Total
Total operating revenues (a)	$	1,290	$	1,383
Net income	229		247

(a)    Total revenues include $1 million and $2 million of other affiliate revenue for the three months ended Sept. 30, 2023 and 2022.

	Nine Months Ended Sept. 30
(Millions of Dollars)	2023		2022
Regulated Electric
Total revenues	$	2,877	$	2,849
Net income	449		455
Regulated Natural Gas
Total revenues	$	1,247	$	1,087
Net income	81		99
All Other
Total revenues (a)	$	41	$	39
Net income	6		1
Consolidated Total
Total operating revenues (a)	$	4,165	$	3,975
Net income	536		555