Xcel Energy Announces First Quarter 2005 Earnings.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- Xcel Energy Inc. (NYSE NYSE See: New York Stock Exchange :XEL XEL New Carlisle, Quebec, Canada - New Carlisle / via Rail Service (Airport Code) ) announced income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $126 million, or 30 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. on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, for the first quarter of 2005 compared with $149 million, or 36 cents per share, in the first quarter of 2004. Total earnings for the quarter, which include the impact of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , were $121 million, or 29 cents per share, in 2005, compared with $150 million, or 36 cents per share, in 2004. Xcel Energy's total earnings for the first quarter of 2005 included the following: --Regulated utility earnings from continuing operations were $135 million, or 32 cents per share, compared with $158 million, or 37 cents per share, in 2004; --Nonregulated subsidiary and holding company losses from continuing operations were 2 cents per share, compared with a loss of 1 cent per share in 2004; and --Results from discontinued operations were losses of $4 million, or 1 cent per share, compared with income of $0.8 million, or 0 cents per share, in 2004. Earnings for the first quarter of 2005 declined largely due to lower short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. wholesale margins, higher depreciation expense and higher utility operating and maintenance expenses. In addition, retail electric sales were lower than anticipated. "The decline in earnings from 2004 was anticipated, with the exception of the impact of weather and lower-than-projected sales," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a C. Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "In last year's first quarter, we benefited from a $17 million power sale to another utility and an extra day in the quarter for leap year leap year: see calendar. . This year we had a scheduled refueling outage out·age n. 1. A quantity or portion of something lacking after delivery or storage. 2. A temporary suspension of operation, especially of electric power. and 10-year inspection at our Monticello Monticello (mŏn'tĭsĕl`ō, –chĕl`ō) [Ital.,=little mountain], estate, 640 acres (259 hectares), central Va., near Charlottesville; home of Thomas Jefferson for 56 years. nuclear unit, resulting in additional costs and less availability of low-cost energy to sell into the market during the quarter. We are maintaining our 2005 earnings guidance of $1.18 to $1.28 per share from continuing operations." At 9 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT today, Xcel Energy will host a conference call to review first quarter financial results. To participate in the conference call, please dial in five to 10 minutes prior to the scheduled start and follow the operator's instructions. US Dial-In: (800) 374-0832 International Dial-In: (706) 634-5081 The conference call also will be simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics broadcast and archived on Xcel Energy's Web site at www.xcelenergy.com. To access the presentation, click on Investor Information. If you are unable to participate in the live event, the call will be available for replay from 12 p.m. CDT on April 27 through 11:59 p.m. CDT on April 30. Replay Numbers US Dial-In: (800) 642-1687 International Dial-In: (706) 645-9291 Access Code: 5050529 Except for the historical statements contained in this report, the matters discussed in the following discussion and analysis are 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," "believe," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should" 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 the availability of credit and its impact on capital expenditures and the ability of Xcel Energy and its subsidiaries to obtain financing on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms; business conditions in the energy industry; actions of credit rating agencies Credit Rating Agencies Firms that compile information on and issue public credit ratings for a large number of companies. ; competitive factors, including the extent and timing of the entry of additional competition in the markets served by Xcel Energy and its subsidiaries; unusual weather; effects of geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. events, including war and acts of terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. ; state, federal and foreign legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership; structures that affect the speed and degree to which competition enters the electric and natural gas markets; the higher risk associated with Xcel Energy's nonregulated businesses compared with its regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. businesses; effects of legal and administrative proceedings An administrative proceeding is a non-judicial determination of fault or guilt and may include in some cases penalties of various forms. A "Captain's Mast", held by a commanding officer of a warship is one such proceeding. , settlements, investigations and claims; actions of accounting regulatory bodies; risks associated with the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). power market; 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 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2004. This information is not given in connection with any sale, offer for sale or offer to buy any security.
XCEL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Thousands of Dollars, Except Per Share Data)
Three Months Ended
March 31,
-------------------------
2005 2004
------------ ------------
Operating revenues:
Electric utility........................... $1,539,165 $1,473,600
Natural gas utility........................ 836,969 762,808
Nonregulated and other..................... 23,555 25,240
------------ ------------
Total operating revenues.................. 2,399,689 2,261,648
Operating expenses:
Electric fuel and purchased power - utility 761,408 678,693
Cost of natural gas sold and transported -
utility................................... 668,786 594,252
Cost of sales - nonregulated and other..... 10,685 12,033
Other operating and maintenance expenses -
utility................................... 402,470 393,645
Other operating and maintenance expenses -
nonregulated.............................. 8,089 7,422
Depreciation and amortization.............. 191,789 169,567
Taxes (other than income taxes)............ 81,938 84,798
------------ ------------
Total operating expenses.................. 2,125,165 1,940,410
------------ ------------
Operating income............................ 274,524 321,238
Interest and other income, net of
nonoperating expenses...................... 492 (421)
Allowance for funds used during construction
- equity................................... 5,183 8,456
Interest charges and financing costs:
Interest charges - (includes other
financing costs of $6,479 and $7,426,
respectively) 113,641 113,831
Allowance for funds used during
construction - debt....................... (4,833) (6,103)
------------ ------------
Total interest charges and financing costs 108,808 107,728
Income from continuing operations before
income taxes............................... 171,391 221,545
Income taxes................................ 45,509 72,413
------------ ------------
Income from continuing operations........... 125,882 149,132
Income (loss) from discontinued operations -
net of tax (see Note 3).................... (4,404) 779
------------ ------------
Net income.................................. 121,478 149,911
Dividend requirements on preferred stock.... 1,060 1,060
------------ ------------
Earnings available to common shareholders... $120,418 $148,851
============ ============
Weighted average common shares outstanding
(thousands):
Basic...................................... 401,116 398,583
Diluted.................................... 424,449 421,921
Earnings per share - basic:
Income from continuing operations.......... $0.31 $0.37
Discontinued operations.................... (0.01) 0.00
------------ ------------
Earnings per share - basic................ $0.30 $0.37
============ ============
Earnings per share - diluted:
Income from continuing operations.......... $0.30 $0.36
Discontinued operations.................... (0.01) 0.00
------------ ------------
Earnings per share - diluted.............. $0.29 $0.36
============ ============
XCEL ENERGY INC. AND SUBSIDIARIES
Notes to Investor Relations Release (Unaudited)
----------------------------------------------------------------------
Due to the seasonality of Xcel Energy's operating results,
quarterly financial results are not an appropriate base from which to
project annual results.
Note 1. Earnings per Share Summary
----------------------------------
The following table summarizes the earnings-per-share
contributions of Xcel Energy's businesses.
3 months ended
March 31,
-------------------------
2005 2004
-------------------------
Earnings (Loss) Per Share
Regulated utility segments - continuing
operations - Note 2........................ $0.32 $0.37
Financing costs and preferred dividends -
holding company............................ (0.02) (0.02)
Nonregulated and holding company segment.... - 0.01
-------------------------
Earnings per share - continuing operations 0.30 0.36
-------------------------
Income (loss) from discontinued operations -
Note 3..................................... (0.01) -
-------------------------
Total earnings per share - diluted........ $0.29 $0.36
=========================
The following table summarizes significant components contributing
to the changes in the first quarter of 2005 earnings per share
compared with the same period in 2004, which are discussed in more
detail later in the release.
March 31,
2005 vs. 2004
-------------
2004 Earnings per share - diluted....................... $0.36
Components of change - 2005 vs. 2004
Lower short-term wholesale and commodity trading
margins.............................................. (0.04)
Higher depreciation and amortization expense.......... (0.03)
Higher base electric utility margins.................. 0.01
Higher operating and maintenance expense.............. (0.01)
Effective tax rate changes and other.................. 0.01
-------------
Net change in earnings per share - continuing
operations........................................ (0.06)
Changes in Earnings Per Share - Discontinued
Operations........................................... (0.01)
-------------
2005 Earnings per share - diluted....................... $0.29
=============
Note 2. Regulated Utility Segment Results - Continuing Operations
-----------------------------------------------------------------
Estimated Impact of Temperature Changes on Regulated Earnings -The
following summarizes the estimated impact of temperature variations on
utility results included in continuing operations, compared with sales
under normal weather conditions.
Earnings per Share Increase (Decrease)
-----------------------------------------------
2005 vs. Normal 2004 vs. Normal 2005 vs. 2004
--------------- --------------- ---------------
3 months ended March
31................... $(0.01) $(0.01) $-
Sales Growth - The following table summarizes Xcel Energy's
regulated utility growth from continuing operations for actual and
weather-normalized energy sales for the three-month period ended March
31, 2005, compared with the same period in 2004.
3 months ended March 31,
Actual Normalized
-------------------------
Electric residential........................ (0.2)% 0.2%
Electric commercial and industrial.......... 0.4% 0.6%
Total retail electric sales............... 0.2% 0.5%
Firm natural gas sales...................... (0.3)% 0.0%
Total natural gas sales..................... 2.9% 3.0%
The weather-adjusted retail electric sales growth of 0.5 percent
reflects the impact of a leap year in 2004, which provided an extra
day of sales in the first quarter of 2004. Weather-adjusted growth
would have been approximately 1.5 percent after adjusting for the
impact of leap year by removing the extra day of sales in the first
quarter of 2004.
Base Electric Utility, Short-term Wholesale and Commodity Trading
Margins - The following table details the changes in revenues, costs
and margins (including the trading activity that is reported net on
the income statement) from Xcel Energy's electric utility, short-term
wholesale and commodity trading operations that are included in
continuing operations:
Base
(Millions of Electric Short-term Commodity Consolidated
Dollars) Utility Wholesale Trading Total
------------------ ------------ ------------ ------------ ------------
3 months ended
03/31/2005
Electric utility
revenue
(excluding
commodity
trading)......... $1,507 $33 $-- $1,540
Electric fuel and
purchased power
utility.......... (744) (17) -- (761)
Commodity trading
revenue.......... -- -- 116 116
Commodity trading
costs............ -- -- (117) (117)
---------------------------------------------------
Gross margin
before operating
expenses......... $763 $16 $(1) $778
===================================================
Margin as a
percentage of
revenue.......... 50.6% 48.5% (0.9)% 47.0%
---------------------------------------------------
3 months ended
03/31/2004
Electric utility
revenue
(excluding
commodity
trading)......... $1,411 $58 $-- $1,469
Electric fuel and
purchased power-
utility.......... (658) (21) -- (679)
Commodity trading
revenue.......... -- -- 86 86
Commodity trading
costs............ -- -- (82) (82)
---------------------------------------------------
Gross margin
before operating
expenses......... $753 $37 $4 $794
===================================================
Margin as a
percentage of
revenue.......... 53.4% 63.8% 4.7% 51.1%
---------------------------------------------------
Note - The short-term wholesale and commodity trading results in the
above table reflect the estimated impacts of the regulatory sharing of
certain margins.
Base electric utility margins, which are primarily derived from
retail customer sales, increased approximately $10 million for the
first quarter of 2005, compared with the first quarter of 2004. The
increased base electric margin reflects weather-normalized sales
growth, lower costs that are not recovered through regulatory
mechanisms and higher capacity margins at Public Service Company of
Colorado (PSCo), partially offset by increased purchased capacity
costs mainly at PSCo. For more information see the following table:
Base Electric Utility Margin
(Millions of dollars) 2005 vs. 2004
-------------------------------------------------------- -------------
Sales growth (excluding weather impact)................. $3
Estimated impact of weather............................. (3)
Purchased capacity costs................................ (7)
Capacity sales.......................................... 4
Regulatory adjustments.................................. 4
Lower unrecovered costs (including certain hedging costs
at PSCo)............................................... 6
Other 3
-------------
Total base electric utility margin increase.......... $10
=============
Short-term wholesale margins consist of energy-related purchase and sales activity and the use of certain financial instruments associated with the fuel required for and energy produced from Xcel Energy's generation assets and energy and capacity purchased to serve native load. Commodity trading margins are not associated with Xcel Energy's generation assets or the capacity and energy purchased to serve native load. Short-term wholesale and commodity trading margins decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $26 million during the first quarter of 2005. First quarter 2004 short-term wholesale results reflect the impact of higher trading volumes Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. and a preexisting pre·ex·ist or pre-ex·ist v. pre·ex·ist·ed, pre·ex·ist·ing, pre·ex·ists v.tr. To exist before (something); precede: Dinosaurs preexisted humans. v.intr. contract, which contributed $17 million in the first quarter of 2004 and expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. at that time. Other Operating and Maintenance Expenses - Utility - Other operating and maintenance expenses for the first quarter of 2005 increased by approximately $9 million, or 2.2 percent, compared with the same period in 2004. The increase is primarily due to a nuclear plant refueling and 10-year inspection outage in 2005, with no comparable outage in 2004, which increased costs by approximately $20 million. In addition, pension and medical costs were approximately $7 million higher in 2005 than 2004. The increases were partially offset by lower maintenance costs at the fossil-fuel plants of approximately $8 million and lower incentive compensation and 401(k) costs of approximately $11 million. Depreciation and Amortization - Depreciation and amortization expense increased by approximately $22 million, or 13.1 percent, for the first quarter of 2005, when compared with the first quarter of 2004. This change was primarily due to the installation of new steam generators A steam generator is a device used to boil water to create steam. It may refer to:
Income taxes - Income taxes for continuing operations decreased by $27 million for the first quarter of 2005 compared with the same period in 2004. The effective tax rate for continuing operations was 26.6 percent for the first quarter of 2005, compared with 32.7 percent for the same period in 2004. The decreases were due to a decrease in pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. and plant-related permanent taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. adjustments and an increase in research and development tax credits.
Note 3. Discontinued Operations
-------------------------------
Results from discontinued operations were a loss of 1 cent per
share for the first quarter of 2005. In March 2005, Xcel Energy agreed
to sell its non-regulated subsidiary, Utility Engineering Corp. (UE)
to Zachry Group, Inc. In April 2005, Zachry acquired all of the
outstanding shares of UE. Quixx Corp., a subsidiary of UE that
partners in cogeneration projects, was not included in the
transaction. Xcel Energy recorded an immaterial loss in the first
quarter of 2005 on the transaction.
Note 4. Xcel Energy Capital Structure
-------------------------------------
Following is the preliminary capital structure of Xcel Energy at
March 31, 2005:
Percentage of
Balance at Total
March 31, 2005 Capitalization
-------------- --------------
(Billions of Dollars)
Current portion of long-term debt....... $0.2 2%
Short-term debt......................... 0.2 2%
Long-term debt.......................... 6.5 52%
-------------- --------------
Total debt.......................... 6.9 56%
Preferred equity........................ 0.1 1%
Common equity........................... 5.3 43%
-------------- --------------
Total equity........................ 5.4 44%
-------------- --------------
Total capitalization................ $12.3 100%
-------------- --------------
Xcel Energy has renewed the credit facilities of its operating
utility companies. Northern States Power Company, a Minnesota
corporation, (NSP-Minnesota), PSCo and Southwestern Public Service
(SPS) each have individual 5-year, unsecured, credit facilities. The
combined size of the facilities is $1.125 billion, with NSP-Minnesota
comprising $375 million, PSCo comprising $500 million and SPS
comprising $250 million. Each credit facility has one financial
covenant requiring that the debt to total capitalization ratio of each
entity be less than or equal to 65 percent. The facilities closed on
April 21, 2005.
Note 6. Rates and Regulation
----------------------------
NSP-Minnesota Natural Gas Rate Case - On Sept. 17, 2004,
NSP-Minnesota filed with the Minnesota Public Utilities Commission
(MPUC) for a $9.9 million annual increase in natural gas distribution
rates, an overall increase of 1.7 percent. The return on equity
requested was 11.5 percent. Interim rates, subject to refund, of $6.4
million were placed in effect on Dec. 1, 2004.
On April 19, 2005, NSP-Minnesota and the Department of Commerce
filed with an administrative law judge and the MPUC an offer of
settlement related to the natural gas rate case. The settlement
agreement includes an annual rate increase of $5.8 million, based on a
return on equity of 10.4 percent. The settlement also reflects an
increase in the residential customer charge from $6.50 to $8.00 per
month. Other parties to the proceeding may file surrebuttal testimony
by April 29, 2005, and hearings are expected to be held in early May.
The settlement agreement is subject to the approval of the MPUC, which
is expected to act in this proceeding in August 2005.
Texas Retail Fuel Cost (SPS) -- Fuel and purchased energy costs
are recovered in Texas through a fixed fuel and purchased energy
recovery factor. In May 2004, SPS filed with the Public Utility
Commission of Texas (PUCT) its periodic request for fuel and purchased
power cost recovery for electric generation and fuel management
activities for the period from January 2002 through December 2003. SPS
requested approval of approximately $580 million of
Texas-jurisdictional fuel and purchased power costs for the two-year
period. Intervenor and PUCT staff testimony was filed in October 2004
and hearings were held in December 2004. Intervenor testimony
contained objections to SPS' methodology for assigning average fuel
costs to wholesale sales, among other things. Recovery of $49 million
to $86 million of the requested amount was contested by multiple
intervenors.
In January 2005, SPS filed its post-hearing briefs disputing the
intervenor objections. The administrative law judge issued his
recommended proposal for the decision (PFD) on April 15, 2005, which
was generally favorable to SPS. Prior to issuance of the PFD, SPS had
entered into a non-unanimous stipulation with the PUCT staff and
several of the intervenors. The stipulation would provide reasonable
regulatory certainty for SPS on all key issues raised in this
proceeding. Certain intervenors, although not presently signatories to
the non-unanimous stipulation, are expected to file agreement with the
majority of the stipulation principles, while opposing certain other
provisions. If the PUCT does not approve the filed stipulation without
modification, SPS, as well as the other signatories have the option of
withdrawing from the stipulation. If one or more signatories withdraw
from the stipulation, the PUCT could revert to the consideration of
the PFD or continue consideration of the non-unanimous stipulation
with the remaining signatories. It is uncertain as to whether the PUCT
will approve the stipulation or will adopt any or all of the
administrative law judge's recommendations contained in the PFD. The
settlement reflects a potential liability of approximately $25
million, which is consistent with the reserve that SPS accrued during
the fourth quarter of 2004 related to this proceeding. SPS believes
this estimate is appropriate and sufficient, if either the stipulation
is accepted or if a litigated outcome develops. A PUCT decision is
expected in late May 2005.
Note 7. Capital Expenditure Forecast Update
-------------------------------------------
The following is the consolidated Xcel Energy capital expenditure
forecast:
Project Description 2005 2006 2007 2008 2009
------------------------- -------- -------- -------- -------- --------
MERP(a) $191 $404 $197 $125 $56
Comanche 3 59 179 287 298 125
Capital expenditures -
base 991 917 1,021 929 1,085
-------- -------- -------- -------- --------
Total $1,241 $1,500 $1,505 $1,352 $1,266
(a) Minnesota emissions reduction project
The following is an update of the capital expenditure forecast for
each of the utility subsidiaries of Xcel Energy:
Utility Subsidiary 2005 2006 2007 2008 2009
------------------------- -------- -------- -------- -------- --------
NSP-Minnesota $645 $832 $713 $571 $605
NSP-Wisconsin 60 79 75 74 68
PSCo 425 499 593 591 488
SPS 111 90 124 116 105
-------- -------- -------- -------- --------
Total $1,241 $1,500 $1,505 $1,352 $1,266
Note: The capital forecast does not reflect any potential
expenditures for the recently issued regulations referred to as the
clear air interstate and mercury rules.
Note 8. Xcel Energy Earnings Guidance
-------------------------------------
2005 Earnings Guidance - Xcel Energy's 2005 earnings per share
from continuing operations guidance and key assumptions are detailed
in the following table.
2005 Diluted
EPS Range
--------------
Utility operations..................................... $1.27 - $1.37
Holding company financing costs........................ ($0.11)
Other nonregulated subsidiaries........................ $0.02
--------------
Xcel Energy Continuing Operations - EPS................ $1.18 - $1.28
Key Assumptions for 2005: --Seren is held for sale and accounted for as discontinued operations; --Normal weather patterns are experienced; --Weather-adjusted retail electric utility sales growth of approximately 1.6 percent to 2.0 percent; --Weather-adjusted retail natural gas utility sales growth of approximately 1.0 percent to 1.3 percent; --The NSP-Minnesota gas rate case settlement is approved; --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. rate case is successfully completed; --Capacity costs increase of $15 million, net of capacity cost recovery; --No additional margin impact results from the fuel allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as issue at 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. ; --Short-term wholesale and commodity trading margins decline by approximately $30 million to $55 million from 2004; --Other utility operating and maintenance expense increases between 2 percent and 3 percent from 2004; --Depreciation expense increases approximately 7 percent to 8 percent from 2004; --Interest expense increases approximately $10 million to $15 million from 2004; --Allowance for funds used during construction-is relatively flat; --Xcel Energy continues to recognize corporate-owned life insurance Corporate-owned life insurance (COLI) is life insurance on employees' lives that is owned by the employer corporation. COLI was originally purchased on the lives of key employees and executives by a company to hedge against the financial cost of losing key employees to tax benefits of 9 cents per share; --The effective tax rate for continuing operations is approximately 27 percent to 30 percent; and --Average common stock and equivalents total approximately 426 million shares, based on the "If Converted" method for convertible notes.
XCEL ENERGY INC. AND SUBSIDIARIES
UNAUDITED EARNINGS RELEASE SUMMARY
All dollars in thousands, except earnings per share
3 months ended March 31, 2005 2004
----------------------------------------------------------------------
Operating revenue:
Electric and natural gas utility revenue,
and trading margins..................... $2,376,134 $2,236,408
Nonregulated and other revenue........... 23,555 25,240
------------ ------------
Total revenue............................... $2,399,689 $2,261,648
Income from continuing operations........... $125,882 $149,132
Income from discontinued operations......... (4,404) 779
------------ ------------
Net income.................................. $121,478 $149,911
Earnings available for common shareholders.. $120,418 $148,851
Average shares - common and potentially
dilutive (1000's).......................... 424,449 421,921
Segments and Components of Earnings per
share - diluted
--------------------------------------------
Utility earnings - continuing operations.... $0.32 $0.37
Losses from nonregulated subsidiaries and
holding company............................ (0.02) (0.01)
------------ ------------
Earnings per share - continuing
operations.............................. 0.30 0.36
Discontinued operations..................... (0.01) --
------------ ------------
Total earnings per share - GAAP........... $0.29 $0.36
============ ============
Book value per share........................ $13.11 $13.13
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