[0] Xcel Energy Quarterly Earnings Exceed Expectations.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Oct. 24, 2001 Xcel Energy achieved ongoing earnings of 79 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the third quarter of 2001, compared with 72 cents per share in the third quarter of 2000, excluding special charges and extraordinary items. "Since the completion of our merger over one year ago, we have met or exceeded our earnings targets for every quarter," said Wayne Brunetti, chairman, president and chief executive officer. "Our utility operations and subsidiary NRG Energy NRG Energy, Inc. (NRG) is a wholesale power generation company founded in 1989, which has an ownership interest in 47 power generating facilities around the world. The diverse portfolio of facilities, are primarily in the Northeast, South Central and Western regions of the United continue to deliver excellent operational and financial results. "We expect to achieve ongoing earnings per share of $2.30 for 2001. Our management team has the financial and operational discipline to manage through both good times and difficult times. Despite a slowing economy and declining prices for electricity on the spot market, our guidance for 2002 remains $2.40 - $2.50 per share," Brunetti said. Xcel Energy's 74-percent stake in NRG Energy, a leading global energy company, contributed 31 cents per share in the third quarter of 2001, compared with 23 cents per share on an 82-percent ownership basis in the third quarter of 2000. For the 12 months ended Sept. 30, 2001, Xcel Energy had earnings per share (excluding special charges, regulatory adjustments and extraordinary items) of $2.34, compared with $2.13 per share for the comparable period in 2000. NRG Energy contributed 60 cents per share to Xcel Energy's earnings for the 12 months ended Sept. 30, 2001, compared with 44 cents per share for the comparable period in 2000. Xcel Energy will host an earnings conference call beginning at 1:30 p.m. Central Time on Oct. 24. The conference call will be broadcast on our Web site at the following location: http://www.xcelenergy.com, then click on: Investor Information. In addition, the call can be accessed live at 1-888-273-9887. The call will be available in a replay mode from 5:00 p.m. on October 24 through 11:59 p.m. on Oct. 26, Central Time. Replay numbers:
U.S. Dial-In: 800-475-6701
International Dial-In: 320-365-3844
Access Code: 606083
This release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "estimate," "expect," "projected," "objective," "outlook," "possible," "potential" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; changes in federal or state legislation; regulation; risks associated with the California power market; currency translation and transaction adjustments; the higher degree of risk associated with Xcel Energy's nonregulated businesses compared with Xcel Energy's regulated business; and the other risk factors listed from time to time by Xcel Energy in reports filed with the Securities and Exchange Commission (SEC), including Exhibit 99.01 to Xcel Energy's report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2001. This information is not given in connection with any sale or offer for sale or offer to buy any security.
XCEL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Thousands of Dollars, Except per Share Data)
Three months ended Twelve months ended
Sept. 30 Sept. 30
---------------------- ----------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Operating revenues:
Electric utility .....$1,818,812 $1,666,914 $6,521,756 $5,315,069
Gas utility........... 216,589 176,914 2,150,083 1,276,107
Electric and gas
trading.............. 688,076 567,911 3,422,863 1,572,189
Nonregulated and
other................ 928,976 585,333 3,079,350 1,716,033
Equity earnings from
investments in
affiliates........... 111,021 95,995 212,484 218,263
---------- ---------- ---------- ----------
Total operating
revenues............ 3,763,474 3,093,067 15,386,536 10,097,661
Operating expenses:
Electric fuel and
purchased power -
utility.............. 940,161 790,809 3,307,457 2,268,755
Cost of gas sold and
transported -
utility.............. 135,734 84,194 1,605,113 744,253
Electric and gas
trading costs........ 678,735 555,001 3,320,788 1,539,896
Cost of sales -
nonregulated and
other................ 450,204 270,257 1,630,898 791,615
Other operating and
maintenance expenses
- utility........... 366,344 327,359 1,464,790 1,351,833
Other operating and
maintenance expenses
- nonregulated...... 226,162 167,371 817,230 673,912
Depreciation and
amortization......... 250,578 201,073 893,788 655,300
Taxes (other than
income taxes ) ..... 53,894 90,062 315,816 351,766
Regulatory adjustment
- postemployment
benefits............. - - 23,018 -
Special charges ...... - 201,482 39,560 230,122
---------- ---------- ---------- ----------
Total operating
expenses............ 3,101,812 2,687,608 13,418,458 8,607,452
---------- ---------- ---------- ----------
Operating income....... 661,662 405,459 1,968,078 1,490,209
Other income (expense):
Minority interest..... (39,699) (19,025) (69,997) (29,809)
Other income and
(expense) - net ..... 22,577 (5,203) 61,662 13,833
---------- ----------- ---------- ----------
Total other income
(expense)........... (17,122) (24,228) (8,335) (15,976)
Interest charges and
financing costs:
Interest charges - net
of amounts
capitalized.......... 212,037 175,881 744,543 611,271
Distributions on
redeemable preferred
securities of
subsidiary trusts.... 9,700 9,700 38,800 38,800
---------- ---------- ---------- ----------
Total interest
charges and
financing costs..... 221,737 185,581 783,343 650,071
---------- ---------- ---------- ----------
Income before income
taxes and
extraordinary item.... 422,803 195,650 1,176,400 824,162
Income taxes........... 149,900 97,734 388,529 268,853
---------- ---------- ---------- ----------
Income before
extraordinary item... 272,903 97,916 787,871 555,309
Extraordinary item, net
of tax................ - (5,302) - (18,960)
---------- ---------- ---------- ----------
Net income............. 272,903 92,614 787,871 536,349
Dividend requirements
and redemption premiums
on preferred stock.... 1,060 1,060 4,240 4,242
---------- ---------- ---------- ----------
Earnings available for
common shareholders... $271,843 $91,554 $783,631 $532,107
========== ========== ========== ==========
Weighted average common
shares outstanding -
diluted (1000's)...... 344,385 338,876 342,427 336,508
Earnings per share -
diluted:
Earnings before
unusual items ....... $ 0.79 $ 0.72 $ 2.34 $ 2.13
Regulatory decisions.. - - 0.03 -
Special charges....... - (0.43) (0.09) (0.49)
Extraordinary item.... - (0.02) - (0.06)
---------- ---------- ---------- ----------
Total................ $ 0.79 $ 0.27 $ 2.28 $ 1.58
========== ========== ========== ==========
See Notes to Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge XCEL ENERGY INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . Notes to Financial Statements (Unaudited) Due to the seasonality of Xcel Energy's operating results, quarterly financial results are not necessarily an appropriate base from which to project annual results. Note 1. Merger to Form Xcel Energy On Aug. 18, 2000, New Century Energies, Inc. (NCE NCE Networks of Centres of Excellence NCE New Chemical Entity (pharmaceutical research) NCE Normal Curve Equivalent NCE New Civil Engineer (UK Journal) NCE Non-Commercial Educational NCE New Century Energies ) and Northern States Power Co. (NSP (1) (Network Service Provider) An organization that provides a high-speed Internet backbone to ISPs and other service providers. Sprint, MCI and UUNET are examples of NSPs. See Internet backbones. ) merged and formed Xcel Energy Inc. The merger was structured as a tax-free, stock-for-stock exchange for shareholders of both companies (except for fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. ), and accounted for as a pooling-of-interests. Amounts reported for periods prior to the merger have been restated for comparability with post-merger results. Xcel Energy directly owns six utility subsidiaries that serve electric and natural gas customers in 12 states. These six utility subsidiaries are Northern States Power Company Northern States Power Company (formerly NYSE: NSP) was a publicly-traded S&P 500 electric and natural gas utility holding company based in Minneapolis, Minnesota that is now a subsidiary of Xcel Energy (NYSE: XEL). , a Minnesota corporation (NSP-Minnesota), Northern States Power Company, a Wisconsin corporation (NSP-Wisconsin), Public Service Company of Colorado (PSCo), Southwestern Public Service Company (SPS (Standby Power System) A UPS system that switches to battery backup upon detection of power failure. See UPS. SPS - Symbolic Programming System. Assembly language for IBM 1620. ), Black Mountain Gas Company (BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health) BMG Be My Girl BMG Blue Man Group BMG Bertelsmann Music Group BMG Be My Guest BMG Browning Machine Gun BMG Bulk Metallic Glass ) and Cheyenne Light, Fuel and Power Company (Cheyenne). Xcel Energy's regulated businesses also include Viking Gas Transmission Viking Gas Transmission is a natural gas pipeline which takes gas from TransCanada pipeline in Minnesota and brings it to Wisconsin. It is owned by ONEOK Partners. Its FERC code is 82. Company and WestGas InterState in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. Inc. (WGI WGI World Games Inc WGI Winter Guard International WGI Within Grade Increase WGI Washington Group International, Inc. WGI Working Group on Informatics (United Nations) ), both interstate natural gas pipeline companies. Xcel Energy also owns or has an interest in a number of nonregulated businesses, the largest of which is NRG Energy, Inc., a publicly traded independent power producer. At Sept. 30, 2001, Xcel Energy owned approximately 74 percent of NRG NRG Energy NRG NRG Energy, Inc. NRG Natural Resources Group NRG New Radiancy Group NRG Network Referral Group NRG Network Resource Grapher NRG Numerics Rapporteur Group NRG Neuroprosthetics Research Group NRG notional requirements generator . Xcel Energy owned 100 percent of NRG until the second quarter of 2000, when NRG completed its initial public offering and 82 percent until a secondary offering was completed in March 2001. In addition to NRG, Xcel Energy's nonregulated subsidiaries include Utility Engineering (engineering, construction and design), Seren Innovations, Inc. (broadband telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. ), e prime inc. (natural gas marketing and trading), Planergy International, Inc. (energy management, consulting and demand-side management services), Eloigne Company (investments of rental housing projects that qualify for low-income housing tax credits The Low Income Housing Tax Credit (LIHTC; often pronounced "lye-tech") is a tax credit created under the Tax Reform Act of 1986 (TRA86) that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans. ) and Independent Power Corporation/Independent Power International (IPC/IPI) (an international independent power producer). Note 2. Significant Factors Affecting Operating Results The following table summarizes the earnings-per-share contributions of Xcel Energy's businesses.
3 Mos. Ended 12 Mos. Ended
---------------- ---------------
9/30/01 9/30/00 9/30/01 9/30/00
------- ------- ------- -------
Utility before unusual items $ 0.53 $ 0.55 $ 1.91 $ 1.63
Special charges - merger costs 0.00 (0.35) (0.09) (0.35)
Regulatory decisions 0.00 0.00 0.03 0.00
Extraordinary items 0.00 (0.02) 0.00 (0.06)
------ ------- ------ -------
Total Utility $ 0.53 $ 0.18 $ 1.85 $ 1.22
Nonregulated before special charges 0.26 0.17 0.43 0.50
Special charges 0.00 (0.08) 0.00 (0.14)
------ ------- ------ ------
Nonregulated subsidiaries 0.26 0.09 0.43 0.36
------ ------ ------ ------
Total EPS $ 0.79 $ 0.27 $ 2.28 $ 1.58
====== ====== ====== ======
EPS before unusual items $ 0.79 $ 0.72 $ 2.34 $ 2.13
====== ====== ====== ======
Special Charges Merger Impacts - During the third quarter and fourth quarter of 2000, Xcel Energy expensed pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern special charges of $241 million, or 52 cents per share, for costs related to the merger between NSP and NCE. Of these special charges, approximately 44 cents per share were associated with the costs of merging regulated operations and 8 cents per share were associated with merger impacts on nonregulated activities. Of these pretax special charges, $201 million, or 43 cents per share, was recorded during the third quarter of 2000, and $40 million, or 9 cents per share, was recorded during the fourth quarter of 2000. Xcel Energy's earnings for the 12 months ended Sept. 30, 2001, were reduced by 9 cents per share for special charges related to the merger to form Xcel Energy. Xcel Energy's earnings for the 12 months ended Sept. 30, 2000, were reduced by 43 cents per share for special charges related to the merger to form Xcel Energy. Nonregulated Write-offs - Xcel Energy's earnings for the 12 months ended Sept. 30, 2000, were reduced by special charges of 6 cents per share for the write-down of goodwill at Energy Masters International (EMI (ElectroMagnetic Interference) An electrical disturbance in a system due to natural phenomena, low-frequency waves from electromechanical devices or high-frequency waves (RFI) from chips and other electronic devices. Allowable limits are governed by the FCC. ) and a valuation write-down of Xcel Energy's investment in the publicly traded common stock of CellNet Data Systems, Inc., as discussed under Nonregulated Operations. Regulatory Decisions Conservation Incentive Recovery - Earnings for the 12 months ended Sept. 30, 2001, were increased by 7 cents per share due to the reversal of the Minnesota Public Utilities Commission The Minnesota Public Utilities Commission (PUC) is the consumer protection agency in the U.S. state of Minnesota charged with the regulation of public utilities such as electric and telephone service. Its commissioners are appointed by the governor. (MPUC MPUC Maine Public Utilities Commission MPUC Minnesota Public Utilities Commission MPUC Mission Planning Users Conference ) decision to deny NSP-Minnesota recovery of 1998 lost margins, load management discounts and incentives associated with state-mandated programs for electric energy conservation. In June 1999, the MPUC denied NSP-Minnesota recovery of 1998 lost margins, load management discounts and incentives associated with state-mandated programs for electric energy conservation. Xcel Energy recorded a $35 million charge in 1999, which reduced earnings by 7 cents per share, based on this action. NSP-Minnesota appealed the MPUC decision and in December 2000, the Minnesota Court of Appeals reversed the MPUC decision. In January 2001, the MPUC appealed the lower court decision to the Minnesota Supreme Court The Minnesota Supreme Court is the highest court in the U.S. state of Minnesota and consists of seven members. The court was first assembled as a three-judge panel in 1849 when Minnesota was still a territory. . On Feb. 23, 2001, the Minnesota Supreme Court declined to hear the MPUC's appeal. During the second quarter of 2001, NSP-Minnesota filed with the MPUC a plan that carried out, among other things, the court's decision. On June 28, 2001, the MPUC approved the plan and issued an order to that effect shortly thereafter. As a result, the previously recorded liabilities of approximately $41 million (including carrying charges Payments made to satisfy expenses incurred as a result of ownership of property, such as land taxes and mortgage payments. Disbursements paid to creditors, in addition to interest, for extending credit. Consumer Protection laws require full disclosure of all carrying charges. ) for potential refunds to customers are no longer required. This accounting adjustment increased revenue by approximately $35 million and increased allowance for funds used during construction (equity and debt) by approximately $6 million, increasing earnings by 7 cents per share for the second quarter of 2001. Postemployment Benefits - Earnings for the 12 months ended Sept. 30, 2001, were decreased by 4 cents per share due to a Colorado Supreme Court The Colorado Supreme Court is the highest court in the U.S. state of Colorado. It consists of a Chief Justice and six Associate Justices. Powers and duties Appellate jurisdiction decision that resulted in a pretax write-off of $23 million of regulatory assets related to deferred postemployment benefit costs at PSCo. PSCo adopted accrual accounting Accrual Accounting An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions happen. Notes: for postemployment benefits under Statement of Financial Accounting Standard (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 112 - "Employers Accounting for Postemployment Benefits" in 1994. The costs of these benefits were historically recorded on a pay-as-you- go basis and, accordingly, PSCo recorded regulatory assets in anticipation of obtaining future rate recovery of these costs. PSCo requested approval to recover its Colorado retail natural gas jurisdictional portion in a 1996 retail rate case and its retail electric jurisdictional portion in the electric earnings test filing for 1997. In the 1996 rate case, the Colorado Public Utility Commission (CPUC CPUC California Public Utilities Commission CPUC Current Procurement Unit Cost ) allowed recovery of postemployment benefit costs on an accrual basis A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it , but denied PSCo's request to amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. the regulatory asset. PSCo appealed this decision to the Denver District Court. In 1998, the CPUC deferred the final determination of the regulatory treatment of the electric jurisdictional costs pending the outcome of PSCo's appeals on the natural gas rate case. On Dec. 16, 1999, the Denver District Court affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the decision by the CPUC. On July 2, 2001, the Colorado Supreme Court affirmed the District Court decision. Accordingly, PSCo wrote off $23 million of regulatory assets related to deferred postemployment benefit costs during the second quarter of 2001. Extraordinary Items - Electric Utility Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). In the second quarter of 2000, SPS discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: regulatory accounting under SFAS 71 for the generation portion of its business, based on the issuance of a final written order in May 2000 by the Public Utilities Commission of Texas (PUCT PUCT Public Utility Commission of Texas ) addressing the implementation of electric utility restructuring. During the second quarter of 2000, SPS wrote off its generation-related regulatory assets and other deferred costs totaling approximately $19.3 million. This resulted in an after-tax extraordinary charge of approximately $13.7 million against the earnings of Xcel Energy and SPS. During the third quarter of 2000, SPS recorded a charge of $8.2 million before tax, or $5.3 million after tax, related to the defeasance defeasance n. an antiquated word for a document which terminates the effect of an existing writing such as a deed, bond, or contract if some event occurs. DEFEASANCE, contracts, conveyancing. of first mortgage bonds. These extraordinary charges reduced Xcel Energy's earnings by 4 cents per share for the second quarter of 2000 and 2 cents per share for the third quarter of 2000. During the second quarter of 2001, both Texas and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). delayed restructuring in SPS' service territory. As a result of these legislative developments, SPS reapplied the provisions of SFAS No. 71 - "Accounting for the Effects of Certain Types of Regulation" for its generation business during the second quarter of 2001. SPS has not restored regulatory assets or capitalized defeasance costs previously written off in 2000. Due to the regulatory uncertainty regarding the recovery of these costs in future rates, SPS has delayed the restoration of regulatory assets until it is determined that specific regulatory recovery is achieved. Consequently, SPS has not recognized any earnings impact for financial reporting purposes as a result of its reapplication Re`ap`pli`ca´tion n. 1. The act of reapplying, or the state of being reapplied. of SFAS 71 through Sept. 30, 2001. However, future regulatory developments may create earnings increases (should additional cost recovery be provided) or decreases (should deferred costs not be fully recovered). As of Sept. 30, 2001, SPS had incurred approximately $45 million of restructuring costs, including $8 million of debt defeasance costs allocated to the generation business that was expensed as an extraordinary item in the third quarter of 2000, and $37 million of restructuring costs which have been deferred based on anticipated future recovery in jurisdictional rates. SFAS 133 - "Accounting for Derivative Instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and Hedging Activities" During the first quarter of 2001, Xcel Energy adopted SFAS 133, which establishes accounting and reporting standards requiring that every derivative instrument Noun 1. derivative instrument - a financial instrument whose value is based on another security derivative legal document, legal instrument, official document, instrument - (law) a document that states some contractual relationship or grants some right (including certain derivative instruments embedded Inserted into. See embedded system. in other contracts) be recorded in the balance sheet as either an asset or liability and measured at its fair value. SFAS 133 requires that changes in the derivative instrument's fair value be recognized currently in earnings unless specific hedge accounting Why is hedge accounting necessary? Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). criteria are met or specific exclusions are applicable. Special accounting for qualifying hedges allows a derivative instrument's gains and losses to offset related results on the hedged item in the income statement, to the extent effective, and requires that a company must formally document, designate des·ig·nate tr.v. des·ig·nat·ed, des·ig·nat·ing, des·ig·nates 1. To indicate or specify; point out. 2. To give a name or title to; characterize. 3. and assess the effectiveness of transactions that receive hedge accounting. Xcel Energy's earnings for the third quarter of 2001 were decreased by approximately $11.5 million (net of minority interest and after tax), or 3 cents per share, primarily at NRG, due to the mark-to-market impacts of SFAS 133 on the valuation of derivative instruments. Xcel Energy's earnings for the 12 months ended Sept. 30, 2001, were decreased by approximately $13.9 million (net of minority interest and after tax), or 4 cents per share, primarily at NRG, due to the mark-to-market impacts of SFAS 133 on the valuation of derivative instruments. The earnings impact for the adoption of SFAS 133 as of Jan. 1, 2001, was less than $1 million and is not being reported separately as a cumulative effect of accounting change due to immateriality im·ma·te·ri·al·i·ty n. pl. im·ma·te·ri·al·i·ties 1. The state or quality of being immaterial. 2. Something immaterial. Noun 1. . Utility Operations Estimated Impact of Temperature Changes on Regulated Earnings - Xcel Energy analyzes the approximate effect of variations from historical average temperatures on actual sales levels. The following summarizes the estimated impact of temperature variations on actual utility operating results (in relation to sales under normal weather conditions).
Increase (Decrease)
-----------------------------------------
2001 2000 2001
Earnings per Share for the vs. vs. vs.
Period ended Sept. 30: Normal Normal 2000
---------------------- ------ ------ ----
Quarter Ended $0.04 $0.04 $0.00
12 Months Ended $0.11 ($0.08) $0.19
Sales Growth - The following table summarizes Xcel Energy's regulated growth for actual electric and gas sales for the three-month and 12-month periods ended Sept. 30, 2001, compared with the same periods in 2000.
Third Quarter 12 Months Ended
Actual Actual
Electric Residential 5.3% 6.3%
Electric Commercial & Industrial 0.8% 2.0%
Total Retail Electric Sales 2.1% 3.2%
Electric Sales for Resale (38.1)% (26.5)%
Total Firm Gas Sales (1.8)% 20.8%
Total Gas Sales 2.7% 8.2%
Trading and Electric Utility Margins - Electric and gas trading margins (representing revenues from proprietary trading Proprietary Trading When a firm trades for direct gain instead of commission dollars. Essentially, the firm has decided to profit from the market rather than commissions from processing trades. at PSCo and natural gas trading at e prime net of costs) decreased approximately $4 million for the third quarter of 2001 and increased approximately $70 million for the 12 months ended Sept. 30, 2001, compared with the same periods in 2000. The increase reflects an expansion of Xcel Energy's trading operation and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions, including strong prices in the western markets, particularly before the establishment of pricing caps. The decline in the third quarter of 2001 reflects lower prices for electricity. Electric utility margins (represents utility revenues net of fuel and purchased power costs) increased approximately $3 million for the third quarter of 2001 and approximately $168 million for the 12 months ended Sept. 30, 2001, compared with the same periods in 2000. Electric utility margin for the third quarter of 2001 reflects lower short-term wholesale margins due to lower prices for electricity. The increase for the 12 months ended Sept. 30, 2001, reflects more favorable temperatures, retail sales growth, an expansion of Xcel Energy's wholesale operations and favorable market conditions. Other Operating and Maintenance Expenses - Utility - Utility operating and maintenance expense for the third quarter of 2001 increased by approximately $39 million, or 11.9 percent, compared with the third quarter of 2000. The change is largely due to increased bad debt reserves reflecting higher energy prices, increased transmission costs from the Southwest Power Pool The Southwest Power Pool (SPP) is the oldest North American reliability organization still in operation, having originally formed in 1941 when eleven power companies cooperated to ensure that an aluminum factory would receive reliable power as it worked to assist the US war effort (which are offset in electric revenue), increased costs due to customer growth and increased nuclear cost to establish the Nuclear Management Co. and to maintain and improve operational excellence at the nuclear plants. Utility operating and maintenance expense for the 12 months ended Sept. 30, 2001, increased by approximately $113 million, or 8.4 percent, compared with the same period in 2000. The change is largely due to increased bad debt reserves reflecting higher energy prices, increased transmission costs from the Southwest Power Pool (which are offset in electric revenue), higher performance-based incentive costs, increased costs due to customer growth, timing of plant outages and increased nuclear cost to establish the Nuclear Management Co. and to maintain and improve operational excellence at the nuclear plants. Nonregulated Operations The following table summarizes the earnings-per-share contributions of Xcel Energy's nonregulated businesses.
3 Mos. Ended 12 Mos. Ended
--------------- ---------------
9/30/01 9/30/00 9/30/01 9/30/00
------- ------- ------- -------
NRG Energy Inc. $0.31 $0.23 $0.60 $0.44
Yorkshire Power 0.00 0.02 0.02 0.19
Seren Innovations Inc. (0.02) (0.02) (0.07) (0.06)
e prime 0.00 (0.02) 0.02 (0.03)
Planergy International 0.00 (0.05) (0.04) (0.10)
Financing Costs & Preferred Dividends (0.03) (0.02) (0.10) (0.07)
Other 0.00 (0.05) 0.00 (0.01)
----- ----- ----- -----
Total Nonregulated $0.26 $0.09 $0.43 $0.36
===== ===== ===== =====
NRG - NRG's earnings increased for the third quarter of 2001 and the 12 months ended Sept. 30, 2001, due to increased returns from a larger generation portfolio, contracted electricity sales, returns on power marketing activities and superior operating performance. The NRG earnings for the third quarter of 2001 and the 12 months ended Sept. 30, 2001 in this report exclude earnings of approximately 11 cents per share and 18 cents per share, respectively, related to minority shareholder interests. In comparison, NRG earnings for the third quarter of 2000 and the 12 months ended Sept. 30, 2000, in this report exclude earnings of approximately 5 cents per share and 6 cents per share, respectively, related to minority shareholder interests. Yorkshire Power - During February 2001, Xcel Energy reached an agreement to sell the majority of its investment in Yorkshire Power to Innogy Holdings plc. As a result of this sales agreement, Xcel Energy did not record any equity earnings from Yorkshire Power after January 2001. In April 2001, Xcel Energy closed the sale of Yorkshire Power. Xcel Energy retains an interest of approximately 5 percent in Yorkshire Power to comply with pooling-of-interests accounting requirements associated with the merger of NSP and NCE in 2000. Seren - As expected, Seren's construction of its broadband communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. in Minnesota and California resulted in higher losses for the 12 months ended Sept. 30, 2001. Seren is constructing a combination cable television, telephone and high-speed Internet See broadband. access system in two locations: St. Cloud, Minn., and Contra Costa Contra Costa can refer to:
e prime - e prime's results for the 12 months ended Sept. 30, 2001, reflect favorable market opportunities utilizing gas transmission and storage positions. These favorable market conditions may not continue to exist during the remainder of 2001 in the volatile natural gas markets. e prime's results for the third quarter of 2000 and the 12 months ended Sept. 30, 2000, were reduced by special charges of 2 cents per share for contractual obligations and other costs associated with post-merger changes. Planergy International - Planergy's results for the 12 months ended Sept. 30, 2001, reflect lower margins on performance contracts, higher project development expenses and final costs related to the consolidation of Planergy and EMI operations. Planergy's results for the 12 months ended Sept. 30, 2000, were reduced by special charges of 4 cents per share for the write-offs of goodwill and project development costs at Planergy. During the third quarter of 2000, the operations of Planergy and EMI, both wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Xcel Energy, were combined and now do business as Planergy International. As a result of this merger, Planergy International reassessed its business model and made a strategic realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. , which resulted in the write-off of $22 million (before tax) of goodwill and project development costs. In addition, Planergy's results for the 12 months ended Sept. 30, 2000, were reduced by a special charge of 4 cents per share to write off goodwill that was recorded for two acquisitions. EMI wrote off approximately $17 million of goodwill (before tax) during the fourth quarter of 1999. Financing Costs and Preferred Dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) - Nonregulated results include interest expense and preferred dividend costs, which are incurred at the Xcel Energy and intermediate holding company levels and are not directly assigned to individual subsidiaries. Other - The Other Nonregulated results for the third quarter 2000 include approximately 2 cents of losses associated with IPC/IPI. The Other Nonregulated results for the third quarter 2000 and the 12 months ended Sept. 30, 2000, were reduced by special charges of 2 cents per share. These special charges include $10 million (before tax) in asset write-downs and losses resulting from various other nonregulated business ventures that are not being pursued after the merger. In addition, Other Nonregulated results for the 12 months ended Sept. 30, 2000, were also reduced by a special charge of 2 cents per share for a valuation write-down of Xcel Energy's investment in the publicly traded common stock of CellNet Data Systems, Inc. during the fourth quarter of 1999. Note 3. NRG Acquisitions Completed Asset Acquisitions Audrain - In June 2001, NRG purchased an approximately 640-megawatt natural gas-fired power plant in Audrain County, Missouri Audrain County is a county located in the U.S. state of Missouri. As of 2000, the population was 25,853. Its county seat is Mexico6. The county was organized in 1836. Tradition says the county was named for settler Samuel Audrain. from Duke Energy North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Brazos Valley The Brazos Valley is a region in the U.S. state of Texas (Central Texas) consisting of Brazos County, Robertson County, Grimes County, Washington County, Burleson County, Madison County, and Leon County, with Brazos County and the cities of College Station and Bryan at its center. - In June 2001, NRG closed on the construction financing for a 633-megawatt gas-fired power plant in Texas that NRG will build, operate and manage. At the time of the closing, NRG also became the 100- percent owner of the project by purchasing STEAG Power LLC's 50-percent interest in the project. NRG estimates that its investment in the project will total approximately $170 million. NRG expects the project to begin commercial operation in February 2003. Conectiv - In June 2001, NRG purchased 1,081 megawatts of interests in power generation plants from a subsidiary of Conectiv for approximately $644 million. NRG acquired a 100 percent interest in the 784-megawatt coal-fired Indian River Indian River, lagoon, c.100 mi (160 km) long, E Fla., parallel to the east coast from N of Titusville to Stuart. Along the lagoon a variety of citrus and vegetable products are grown and transported by small boats to towns on its waterway and those further inland. Generating Station located in Delaware and in the 170-megawatt oil-fired Vienna Generating Station located in Maryland. In addition, NRG acquired 64 megawatts of the 1,711-megawatt coal-fired Conemaugh Generating Station Conemaugh Generating Station is a power plant at Seward, Pennsylvania. It has 2 305 metre tall chimneys. External links
• and 63 megawatts of the 1,711-megawatt coal-fired Keystone key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. Generating Station, both located near Pittsburgh, Penn. Vattenfall - In June 2001, NRG acquired Vattenfall's interests in three South American projects. Those projects consist of Compania Boliviana de Energia Electrica S.A. - Bolivian Power Company Ltd. (COBEE) and Compania Electrica Central Bulo Bulo S.A., both in Bolivia, and Itiquira Energetica S.A. in Brazil. In addition, NRG acquired the ownership interest of Inepar Energia S.A. (Inepar) in the Itiquira project. NRG now owns 98.9 percent of COBEE, 60 percent of Bulo Bulo and 99 percent of the common shares of Itiquira. COBEE, with 220 megawatts of predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. hydroelectric generation, is the second largest electric generator in Bolivia. Bulo Bulo is an 88-megawatt, natural gas-fired facility in Bolivia. Itiquira is a 156-megawatt hydroelectric project in the advanced stage of construction in Brazil. Full commercial operation of Itiquira is expected in March 2002. PowerGen - In June 2001, NRG purchased a 389-megawatt gas-fired power plant and a 116-megawatt thermal power plant, both of which are located in Hungary, from PowerGen. In April 2001, NRG also purchased PowerGen's interest in Saale Energie GmbH and MIBRAG BV. By acquiring PowerGen's interest in Saale Energie, NRG increased its ownership interest in the 960-megawatt coal-fired Schkopau power station The Schkopau Power Station is a German lignite-fired power station in the proximity of the local part Korbetha of the municipality Schkopau in the district Merseburg Querfurt (Saxonia-Anhalt). The E.ON AG belongs and has an electrical output distributed of 900 megawatts on two blocks. , located in Germany from 200 megawatts to 400 megawatts. By acquiring PowerGen's interest in MIBRAG, consisting primarily of two lignite lignite (lĭg`nīt) or brown coal, carbonaceous fuel intermediate between coal and peat, brown or yellowish in color and woody in texture. mines and three power stations in Germany, NRG increased its ownership of MIBRAG from 33.3 percent to 50 percent. NRG paid approximately $190 million to PowerGen for all of these interests. Hsin Yu The Hsin Yu was a Chinese Army transport ship that served during World War I. The 1,629 ton ship had been built in 1889. On April 22, 1916, the transport, with over a thousand enlisted men and officers on board, was in a thick fog while on its way to Foo Chow. - In July 2001, NRG acquired approximately 60 percent of Hsin Yu Energy Development Co. Ltd, a Taiwan company that owns and develops power generation facilities. Hsin Yu currently owns a 170-megawatt cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. facility, Hsinchu Phase I. Hsin Yu is developing a 245-megawatt expansion of the Hsinchu facility and a new 490-megawatt greenfield project For other uses, see Greenfield (disambiguation). In software engineering jargon, a greenfield is a project which lacks any constraints imposed by prior work. The image is that of construction on greenfield land, where there is no need to remodel or demolish an existing . Indeck - In August 2001, NRG acquired an approximately 2,255-megawatt portfolio of operating projects and projects in advanced development that are located in Illinois and upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. from Indeck Energy Services, Inc. Approximately 402 megawatts are currently in operation and NRG expects that an additional $1.3 billion will be required to complete construction of the projects. McClain - In May 2001, NRG acquired Duke Energy's 77-percent interest in the 500-megawatt, natural gas-fired McClain Energy Generating Facility located in Oklahoma for approximately $283 million. The Oklahoma Municipal Power Authority owns the remaining 23-percent interest. Pending NRG Asset Acquisitions Conectiv - In June 2001, NRG extended purchase agreements that it had entered into with a subsidiary of Conectiv to acquire 794 megawatts of coal and oil-fired electric generating capacity and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. in New Jersey and Pennsylvania, including an additional 66 megawatts of the Conemaugh Generating Station and an additional 42 megawatts of the Keystone Generating Station. NRG will pay approximately $180 million for these assets. NRG expects the acquisition to close in the fourth quarter of 2001 following approval of the New Jersey Board of Public Utilities The New Jersey Board of Public Utilities (NJBPU) is a regulatory authority in New Jersey charged with the responsibility of seeing that "safe, adequate, and proper utility services are provided at reasonable rates for customers in New Jersey. . Narva Power - In August 2000, NRG signed an agreement with Eesti Energia Eesti Energia AS is an Estonian state-owned energy company engaged in the production, transmission, distribution and sale of electric and thermal power, oil-shale mining, and construction and maintenance of energy systems. , the Estonian state-owned electric utility, to purchase for approximately $72 million a 49 percent stake in Narva Power, the owner and operator of the oil shale-fired Eesti and Balti balti Noun a spicy Indian dish served in a metal dish [probably from the Baltistan region of Pakistan] power plants, located near Narva, Estonia. The plants have a combined capacity of approximately 2,500 megawatts. NRG is working to close the acquisition in the fourth quarter of 2001. Meriden - In December 2000, NRG signed a purchase agreement to acquire a 540-megawatt natural gas-fired generation facility being developed in Connecticut, for a purchase price of approximately $25 million. NRG expects to close the acquisition in the fourth quarter of 2001. NRG estimates it will cost approximately $384 million to complete construction of the plant, which has a planned commercial operation date of June 2003. Note 4. Commitments and Contingencies California Power Market - NRG's California generation assets consist primarily of its interests in the Crockett and Mt. Poso facilities and a 50-percent interest in West Coast Power LLC, formed in 1999 with Dynegy Inc. The West Coast Power facilities sold power through the California Power Exchange (PX) and the California Independent System Operator (ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. ) to Pacific Gas and Electric Company
The Pacific Gas and Electric Company (PG&E) , (NYSE: PCG), is the utility that provides natural gas and electricity to most of Northern California. (PG&E), Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. Company (SCE SCE (in Scotland) Scottish Certificate of Education SCE n abbr (= Scottish Certificate of Education) → Schulabschlusszeugnis in Schottland ) and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. Gas and Electric Company (SDG&E). Currently, the West Coast Power facilities sell power through the California ISO to the California Department of Water Resources History 1850-1875 California recognizes many types of water rights. These rights have developed with the State over time. Prior to the Treaty of Guadalupe Hidalgo, signed in 1848, California was part of Mexico. (CDWR CDWR California Department of Water Resources ). Crockett, Mt. Poso and certain other NRG California facilities also sell directly to PG&E, SCE and SDG&E. The combination of rising wholesale electric prices, increases in the cost of natural gas, the scarcity Scarcity The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently. of hydroelectric power hydroelectric power: see power, electric; water power. hydroelectric power Electricity produced from generators driven by water turbines that convert the energy in falling or fast-flowing water to mechanical energy. and regulatory limitations on the rates that PG&E and SCE may charge their retail customers caused both PG&E and SCE to default in their payments to the California PX, the California ISO and other suppliers, including NRG. In March 2001, the California PX filed for Chapter 11 bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most and in April 2001, PG&E filed for Chapter 11 bankruptcy. NRG's share of the net amounts owed to its California affiliates by the California PX, the California ISO and the three major California utilities totaled approximately $230 million as of Sept. 30, 2001. This amount reflects NRG's share of (a) total amounts owed to our California affiliates of $371 million, less (b) amounts that are currently treated as disputed revenues and are not recorded as accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying in the financial statements of NRG's California affiliates, and reserves taken against accounts receivable that have been recorded in the financial statements, which together totaled $141 million. NRG believes that it will ultimately collect in full the net amount of $230 million owed to its California affiliates; however, if some form of financial relief or support is not provided to PG&E and SCE, the collectibility of this amount may become questionable in terms of both timing and amount. Disputed revenues related to billing that arise in the ordinary course of business must include justification for pricing higher than the California ISO and the FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability imposed revenue caps on the wholesale price of electricity. None of these disputed revenues will be recorded until issues are resolved. Since the date of the PG&E bankruptcy filing, PG&E has been paying NRG's Crockett and Mt. Poso affiliates on a current basis. The delayed collection of receivables owed to West Coast Power resulted in a covenant default under its credit agreement. West Coast Power has entered into a forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. agreement with its lenders in connection with the covenant default. In addition, NRG's Crockett affiliate was notified by its lenders that it has incurred a covenant default under its loan agreement. As a result, NRG has reclassified the long-term portion of the Crockett debt to current. Defaults under the Crockett and West Coast Power credit agreements do not trigger defaults under any of NRG's corporate-level financing debt securities or borrowing arrangements. FERC has jurisdiction over sales for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of electricity in the California wholesale power markets. In March 2001, FERC issued orders that presumptively pre·sump·tive adj. 1. Providing a reasonable basis for belief or acceptance. 2. Founded on probability or presumption. pre·sump approved prices up to $273 per megawatt-hour during January 2001 and $430 per megawatt-hour during February 2001. The orders direct electricity suppliers either to refund a portion of their January and February sales or justify prices charged above these approved prices. The orders, if finalized See finalization. , could require West Coast Power to refund approximately $45 million in revenues from January and February, of which NRG's share would be approximately $22.5 million. While Dynegy Power Marketing, Inc., as the power marketer for West Coast Power, has submitted information to justify each component of the prices it charged that were in excess of the presumptively approved prices, FERC has rejected all of the generators' submissions for excess prices for April 2001 through June 2001 (currently under appeal). Note 5. Independent Transmission Company On Sept. 28, 2001, Xcel Energy and five other electric utility companies applied to the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC) to let them integrate operations of their electric transmission systems into a single system through the formation of TRANSLink Transmission Co. LLC (TRANSLink), a for-profit, transmission-only company. The utilities will participate in TRANSLink through a combination of divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). , leases and operating agreements An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. . The applicants are: IES Utilities Inc. (IES), Interstate Power Company (IPC (1) (InterProcess Communication) The exchange of data between one program and another either within the same computer or over a network. It implies a protocol that guarantees a response to a request. ), Corn Belt Corn Belt, major agricultural region of the U.S. Midwest where corn acreage once exceeded that of any other crop. It is now commonly called the Feed Grains and Livestock Belt. Power Cooperative, MidAmerican Energy Company MidAmerican Energy Company is an energy company in the U.S. state of Iowa. MidAmerican Energy Company is a subsidiary of MidAmerican Energy Holdings Company. See also
Nebraska Public Power District (NPPD) is the largest electric utility in the state of Nebraska, serving all or parts of 91 (of 93) counties. , Omaha Public Power District Omaha Public Power District, or OPPD, is a public electric utility in the State of Nebraska. It is one of the largest publicly owned electric utilities in the United States, serving more than 310,000 customers in 13 southeast Nebraska counties. and Xcel Energy. The participants asked FERC to expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. consideration of their application and hope action will occur by early 2002. The TRANSLink proposal is subject to receipt of all required federal and state regulatory approvals. TRANSLink's business will be the development, maintenance and operation of a robust transmission system capable of meeting the increasing energy demands both locally and throughout the region. TRANSLink will oversee 26,000 miles of transmission lines, linking generators producing 35,000 megawatts of electric power to approximately 6.9 million customers in 14 states, making it one of the largest transmission companies in the nation. The six participants believe TRANSLink is the most cost-efficient option available to manage transmission and to comply with regulations issued by FERC in 1999 (known as Order No. 2000) that require investor-owned electric utilities to transfer operational control of their transmission system to an independent regional transmission organization  This August 2006 is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. (RTO (Recovery Time Objective) The amount of time a computer system or application can stop functioning before it is considered intolerable to the enterprise. It can be computed to be from seconds to days, depending on how critical the application is to the organization. ). TRANSLink will comply with these regulations by operating independently of both buyers and sellers in the electricity market, including the applicant utilities. However, its board of directors will also be responsible for maximizing the value of the transmission system and increasing the efficiency of its operations. Other options for complying with the FERC regulations leave ownership with the utilities, but do not allow the owners any operational control. Under the proposal, TRANSLink will be responsible for planning, managing and operating both local and regional transmission. Transmission service pricing will continue to be regulated by FERC, but construction and permitting approvals will continue to rest with regulators in the states served by TRANSLink. The participants have also entered into a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with the Midwest Independent Transmission Operator, Inc. (MISO) in which they agree that TRANSLink will contract with MISO for certain other required RTO functions and services. Note 6. Credit Ratings In October 2001, Moody's downgraded Xcel Energy's commercial paper rating to Prime-2 from Prime-1 and affirmed Xcel Energy's A3 long term rating. In addition, Moody's downgraded its long- and short-term ratings for SPS to A3 (senior unsecured)/Prime-2 and affirmed its long and short term ratings for NSP-Minnesota Aa3 (senior secured)/Prime-1. These actions conclude Moody's previously announced reviews of Xcel Energy, SPS and NSP-Minnesota ratings. Moody's outlooks on all of the ratings are stable. Moody's SPS ratings had anticipated SPS selling much of its generating assets and possibly applying some proceeds to reduce debt, thereby improving cash coverage of debt service. With the delay of restructuring in SPS' service territory exempting SPS from the sale of its generation, however, SPS' credit statistics are not projected to show significant improvement in the near term. Moody's NSP-Minnesota ratings continue to reflect the company's healthy service area economy, competitive power costs and rates and supportive regulatory environment.
XCEL ENERGY INC.
Unaudited Earnings Release Summary
All dollars in thousands, except earnings per share
3 months ended Sept. 30 2001 2000
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Operating revenue $ 3,763,000 $ 3,093,000
Net income $ 273,000 $ 93,000
Earnings available for common shareholders $ 272,000 $ 92,000
Average shares - common and potentially
dilutive (1000's) 344,000 339,000
Earnings per share - diluted
Earnings before unusual items $0.79 $0.72
Special charges $0.00 ($0.43)
Regulatory decisions $0.00 $0.00
Extraordinary item $0.00 ($0.02)
----- ------
Total earnings per share $0.79 $0.27
===== =====
9 months ended Sept. 30 2001 2000
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Operating revenue $11,693,000 $ 7,898,000
Net income $ 650,000 $ 389,000
Earnings available for common shareholders $ 647,000 $ 386,000
Average shares - common and potentially
dilutive (1000's) 343,000 337,000
Earnings per share - diluted
Earnings before unusual items $1.85 $1.57
Special charges $0.00 ($0.43)
Regulatory decisions $0.03 $0.00
Extraordinary item $0.00 ($0.06)
----- ------
Total earnings per share $1.88 $1.14
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12 months ended Sept. 30 2001 2000
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Operating revenue $15,387,000 $10,098,000
Net income $ 788,000 $ 536,000
Earnings available for common shareholders $ 784,000 $ 532,000
Average shares - common and potentially
dilutive (1000's) 342,000 337,000
Earnings per share - diluted:
Earnings before unusual items $2.34 $2.13
Special charges ($0.09) ($0.49)
Regulatory decisions $0.03 $0.00
Extraordinary item $0.00 ($0.06)
----- ------
Total earnings per share $2.28 $1.58
===== =====
Return on Equity, before unusual items 13.8% 12.6%
Return on Equity - total 13.4% 9.9%
Book value $17.99 $16.17
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