UNITED STATES SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the quarterly period ended June 30, 2002 | ||
| OR | ||
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the transition period from to | ||
| Exact name of registrant as specified in its charter, State or other | ||||||
| Commission | jurisdiction of incorporation or organization, Address of principal | IRS Employer | ||||
| File Number | executive offices and Registrant’s Telephone Number, including area code | Identification No. | ||||
| 000-31709 |
NORTHERN STATES POWER COMPANY (a Minnesota Corporation) 414 Nicollet Mall, Minneapolis, Minn. 55401 Telephone (612) 330-5500 |
41-1967505 | ||||
| 001-3140 |
NORTHERN STATES POWER COMPANY (a Wisconsin Corporation) 1414 W. Hamilton Ave., Eau Claire, Wis. 54701 Telephone (715) 839-2621 |
39-0508315 | ||||
| 001-3280 |
PUBLIC SERVICE COMPANY OF COLORADO (a Colorado Corporation) 1225 17th Street, Denver, Colo. 80202 Telephone (303) 571-7511 |
84-0296600 | ||||
| 001-3789 |
SOUTHWESTERN PUBLIC SERVICE COMPANY (a New Mexico Corporation) Tyler at Sixth, Amarillo, Texas 79101 Telephone (303) 571-7511 |
75-0575400 | ||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Northern States Power Co. (a Minnesota corporation), Northern States Power Co. (a Wisconsin corporation), Public Service Co. of Colorado and Southwestern Public Service Co. meet the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to such Form 10-Q.
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. All outstanding common stock is owned beneficially and of record by Xcel Energy Inc., a Minnesota corporation. Shares outstanding at July 31, 2002:
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Northern States Power Co. (a Minnesota
Corporation)
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Common Stock, $0.01 par value | 1,000,000 Shares | ||
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Northern States Power Co. (a Wisconsin
Corporation)
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Common Stock, $100 par value | 933,000 Shares | ||
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Public Service Co. of Colorado
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Common Stock, $0.01 par value | 100 Shares | ||
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Southwestern Public Service Co.
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Common Stock, $1 par value | 100 Shares |
Table of Contents
| PART I — FINANCIAL INFORMATION | ||||
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Item 1.
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Financial Statements
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2 | ||
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Item 2.
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
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29 | ||
| PART II — OTHER INFORMATION | ||||
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Item 1.
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Legal Proceedings
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41 | ||
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Item 6.
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Exhibits and Reports on Form 8-K
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42 | ||
This combined Form 10-Q is separately filed by Northern States Power Co., a Minnesota corporation (NSP-Minnesota), Northern States Power Co., a Wisconsin corporation (NSP-Wisconsin), Public Service Co. of Colorado (PSCo) and Southwestern Public Service Co. (SPS). NSP-Minnesota, NSP-Wisconsin, PSCo and SPS are all wholly owned subsidiaries of Xcel Energy Inc. Xcel Energy is a registered holding company under the Public Utility Holding Company Act (PUHCA). Additional information on Xcel Energy is available on various filings with the SEC.
Information contained in this report relating to any individual company is filed by such company on its own behalf. Each registrant makes representations only as to itself and makes no other representations whatsoever as to information relating to the other registrants.
This report should be read in its entirety. No one section of the report deals with all aspects of the subject matter.
1
Item 1. Financial Statements
NSP-MINNESOTA AND SUBSIDIARIES
| Three Months Ended | ||||||||||||||||||
| June 30 | Six Months Ended June 30 | |||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Thousands of Dollars) | ||||||||||||||||||
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Operating revenues:
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Electric utility
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$ | 563,918 | $ | 654,359 | $ | 1,101,800 | $ | 1,268,474 | ||||||||||
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Gas utility
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89,782 | 92,932 | 277,318 | 445,670 | ||||||||||||||
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Electric trading
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5,368 | — | 18,436 | — | ||||||||||||||
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Other
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5,231 | 11,924 | 11,964 | 27,144 | ||||||||||||||
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Total operating revenues
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664,299 | 759,215 | 1,409,518 | 1,741,288 | ||||||||||||||
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Operating expenses:
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Electric fuel and purchased power
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192,908 | 241,812 | 377,353 | 484,859 | ||||||||||||||
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Cost of gas sold and transported
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59,390 | 66,123 | 187,878 | 354,515 | ||||||||||||||
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Electric trading costs
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7,326 | — | 17,294 | — | ||||||||||||||
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Other operating and maintenance expenses
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188,228 | 206,259 | 410,102 | 422,036 | ||||||||||||||
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Depreciation and amortization
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87,556 | 83,415 | 172,989 | 166,594 | ||||||||||||||
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Taxes (other than income taxes)
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42,612 | 49,493 | 85,929 | 101,341 | ||||||||||||||
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Special charges (see Note 2)
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— | — | 4,324 | — | ||||||||||||||
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Total operating expenses
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578,020 | 647,102 | 1,255,869 | 1,529,345 | ||||||||||||||
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Operating income
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86,279 | 112,113 | 153,649 | 211,943 | ||||||||||||||
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Other income — net of other expenses
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5,896 | 4,037 | 14,560 | 3,808 | ||||||||||||||
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Interest charges and financing costs:
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Interest charges — net of amounts
capitalized
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17,041 | 19,224 | 34,617 | 44,338 | ||||||||||||||
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Distributions on redeemable preferred securities
of subsidiary trust
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3,938 | 3,937 | 7,875 | 7,875 | ||||||||||||||
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Total interest charges and financing costs
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20,979 | 23,161 | 42,492 | 52,213 | ||||||||||||||
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Income before income taxes
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71,196 | 92,989 | 125,717 | 163,538 | ||||||||||||||
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Income taxes
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28,772 | 36,588 | 50,260 | 64,965 | ||||||||||||||
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Net income
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$ | 42,424 | $ | 56,401 | $ | 75,457 | $ | 98,573 | ||||||||||
See Notes to Consolidated Financial Statements
2
NSP-MINNESOTA
| Six Months Ended June 30 | |||||||||||
| 2002 | 2001 | ||||||||||
| (Unaudited) | |||||||||||
| (Thousands of Dollars) | |||||||||||
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Operating activities:
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Net income
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$ | 75,457 | $ | 98,573 | |||||||
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Adjustments to reconcile net income to cash
provided by operating activities:
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Depreciation and amortization
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177,966 | 173,724 | |||||||||
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Nuclear fuel amortization
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24,586 | 21,059 | |||||||||
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Deferred income taxes
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(30,725 | ) | 10,392 | ||||||||
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Amortization of investment tax credits
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(4,211 | ) | (4,095 | ) | |||||||
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Allowance for equity funds used during
construction
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(3,423 | ) | (4,639 | ) | |||||||
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Conservation incentive accrual adjustments
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(4,714 | ) | (32,218 | ) | |||||||
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Gain on sale of property
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(6,785 | ) | — | ||||||||
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Change in accounts receivable
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40,284 | 52,785 | |||||||||
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Change in inventories
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3,311 | 8,122 | |||||||||
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Change in other current assets
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21,789 | 55,198 | |||||||||
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Change in accounts payable
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(33,825 | ) | (119,422 | ) | |||||||
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Change in other current liabilities
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(46,287 | ) | (74,406 | ) | |||||||
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Change in other assets and liabilities
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24,991 | 1,581 | |||||||||
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Net cash provided by operating activities
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238,414 | 186,654 | |||||||||
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Investing activities:
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Utility capital/ construction expenditures
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(201,216 | ) | (194,261 | ) | |||||||
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Proceeds from sale of property
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11,152 | — | |||||||||
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Allowance for equity funds used during
construction
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3,423 | 4,639 | |||||||||
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Investments in external decommissioning fund
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(29,383 | ) | (28,446 | ) | |||||||
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Other investments — net
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(1,619 | ) | (9,908 | ) | |||||||
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Net cash used in investing activities
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(217,643 | ) | (227,976 | ) | |||||||
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Financing activities:
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Short-term borrowings — net
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37,997 | (51,327 | ) | ||||||||
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Repayment of long-term debt, including
reacquisition premiums
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(778 | ) | (970 | ) | |||||||
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Capital contributions from parent
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42,431 | 175,000 | |||||||||
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Dividends paid to parent
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(92,679 | ) | (74,864 | ) | |||||||
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Net cash (used in) provided by financing
activities
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(13,029 | ) | 47,839 | ||||||||
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Net increase in cash and cash equivalents
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7,742 | 6,517 | |||||||||
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Cash and cash equivalents at beginning of year
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17,169 | 11,926 | |||||||||
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Cash and cash equivalents at end of year
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$ | 24,911 | $ | 18,443 | |||||||
See Notes to Consolidated Financial Statements
3
NSP-MINNESOTA AND SUBSIDIARIES
| June 30 | Dec. 31 | ||||||||||
| 2002 | 2001 | ||||||||||
| (Unaudited) | |||||||||||
| (Thousands of Dollars) | |||||||||||
| ASSETS | |||||||||||
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Current assets:
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Cash and cash equivalents
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$ | 24,911 | $ | 17,169 | |||||||
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Accounts receivable — net of allowance
for bad debts: $5,378 and $5,452, respectively
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209,223 | 227,007 | |||||||||
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Accounts receivable from affiliates
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8,911 | 31,528 | |||||||||
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Accrued unbilled revenues
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106,096 | 125,770 | |||||||||
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Materials and supplies inventories at average cost
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107,226 | 103,934 | |||||||||
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Fuel inventory at average cost
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34,789 | 31,945 | |||||||||
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Gas inventory at average cost
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15,675 | 25,122 | |||||||||
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Derivative instruments valuation
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925 | 204 | |||||||||
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Prepayments and other
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51,371 | 48,285 | |||||||||
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Total current assets
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559,127 | 610,964 | |||||||||
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Property, plant and equipment, at cost:
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Electric utility plant
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6,716,199 | 6,582,337 | |||||||||
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Gas utility plant
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696,112 | 695,338 | |||||||||
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Construction work in progress
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361,447 | 316,468 | |||||||||
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Other
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361,207 | 368,513 | |||||||||
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Total property, plant and equipment
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8,134,965 | 7,962,656 | |||||||||
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Less accumulated depreciation
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(4,460,447 | ) | (4,310,214 | ) | |||||||
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Nuclear fuel — net of accumulated
amortization: $1,034,441 and $1,009,855, respectively
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69,428 | 96,315 | |||||||||
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Net property, plant and equipment
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3,743,946 | 3,748,757 | |||||||||
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Other assets:
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Nuclear decommissioning fund investments
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595,051 | 596,113 | |||||||||
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Other investments
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23,882 | 22,542 | |||||||||
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Regulatory assets
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210,489 | 226,088 | |||||||||
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Prepaid pension asset
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226,817 | 188,287 | |||||||||
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Other
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67,218 | 64,278 | |||||||||
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Total other assets
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1,123,457 | 1,097,308 | |||||||||
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Total assets
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$ | 5,426,530 | $ | 5,457,029 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
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Current liabilities:
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Current portion of long-term debt
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$ | 152,428 | $ | 153,134 | |||||||
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Short-term debt
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419,180 | 381,184 | |||||||||
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Accounts payable
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188,040 | 235,930 | |||||||||
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Accounts payable to affiliates
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56,592 | 42,550 | |||||||||
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Taxes accrued
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127,663 | 168,491 | |||||||||
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Dividends payable to parent
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51,049 | 44,332 | |||||||||
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Derivative instruments valuation
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321 | — | |||||||||
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Prepayments and other
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63,039 | 76,004 | |||||||||
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Total current liabilities
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1,058,312 | 1,101,625 | |||||||||
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Deferred credits and other liabilities:
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Deferred income taxes
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679,326 | 697,605 | |||||||||
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Deferred investment tax credits
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78,175 | 82,598 | |||||||||
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Regulatory liabilities
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474,798 | 468,051 | |||||||||
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Benefit obligations and other
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147,471 | 133,771 | |||||||||
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Total deferred credits and other liabilities
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1,379,770 | 1,382,025 | |||||||||
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Long-term debt
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1,033,882 | 1,039,220 | |||||||||
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Mandatorily redeemable preferred securities of
subsidiary trust
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200,000 | 200,000 | |||||||||
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Common stock — authorized 5,000,000
shares of $0.01 par value, outstanding 1,000,000 shares
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10 | 10 | |||||||||
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Premium on common stock
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804,586 | 762,155 | |||||||||
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Retained earnings
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966,496 | 990,435 | |||||||||
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Leveraged ESOP
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(16,881 | ) | (18,564 | ) | |||||||
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Accumulated other comprehensive income
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355 | 123 | |||||||||
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Total common stockholder’s equity
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1,754,566 | 1,734,159 | |||||||||
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Commitments and contingencies (See Note 5)
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Total liabilities and equity
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$ | 5,426,530 | $ | 5,457,029 | |||||||
See Notes to Consolidated Financial Statements
4
NSP-WISCONSIN
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30 | June 30 | |||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Thousands of | ||||||||||||||||||