Segments and Related Information

12 Months Ended

Dec. 31, 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, purchases, transmits, distributes and sells 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 purchases, transports, stores, distributes and sells 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)	2023		2022		2021
Regulated Electric
Operating revenues — external	$	3,731	$	3,795	$	3,413
Intersegment revenue	1		1		1
Total revenues	$	3,732	$	3,796	$	3,414
Depreciation and amortization	692		650		566
Interest charges and financing costs	224		200		179
Income tax benefit	(2)		(11)		(16)
Net income	529		550		495
Regulated Natural Gas
Total revenues	$	1,734	$	1,860	$	1,355
Depreciation and amortization	224		190		171
Interest charges and financing costs	67		59		53
Income tax expense	37		49		45
Net income	149		180		168
All Other
Total revenues (a)	$	54	$	53	$	47
Depreciation and amortization	8		8		7
Interest charges and financing costs	1		1		2
Income tax (benefit) expense	(6)		(1)		4
Net (loss) income	17		(3)		(3)
Consolidated Total
Total revenues (a)	$	5,520	$	5,709	$	4,816
Reconciling eliminations	(1)		(1)		(1)
Total operating revenues	$	5,519	$	5,708	$	4,815
Depreciation and amortization	924		848		744
Interest charges and financing costs	292		260		234
Income tax expense	29		37		33
Net income	695		727		660

(a)Operating revenues include $5 million of other affiliate revenue for the years ended Dec. 31, 2023, 2022 and 2021, respectively. See Note 13 for further information.