NORTHERN STATES POWER CO - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
x		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the quarterly period ended March 31, 2003

		OR

o		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 jurisdiction of incorporation or organization, Address of
Commission	principal executive offices and Registrant's Telephone Number,	IRS Employer
File Number	including area code	Identification No.

001-31387	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) 839-2625	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 x No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

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.


Northern States Power Co. (a Minnesota Corporation)	Common Stock, $0.01 par value	1,000,000 Shares
Northern States Power Co. (a Wisconsin Corporation)	Common Stock, $100 par value	933,000 Shares
Public Service Co. of Colorado	Common Stock, $0.01 par value	100 Shares
Southwestern Public Service Co.	Common Stock, $1 par value	100 Shares

TABLE OF CONTENTS


PART 1. FINANCIAL INFORMATION
	Item 1. Consolidated Financial Statements
	Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
	Item 4. CONTROLS AND PROCEDURES
Part II. OTHER INFORMATION
	Item 1. Legal Proceedings
	Item 6. Exhibits and Reports on Form 8-K
EX-4.01 Supplemental Indenture
EX-4.02 Supplemental Indenture
EX-99.01 Statement Pursuant to Private Securities
EX-99.02 Certification Pursuant to 18 USC Sec.1350
EX-99.03 Certification Pursuant to 18 USC Sec.1350
EX-99.04 Certification Pursuant to 18 USC Sec.1350
EX-99.05 Certification Pursuant to 18 USC Sec.1350

Table of Contents


	PART I — FINANCIAL INFORMATION
Item l.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 6.	Exhibits and Reports on Form 8-K	30

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). 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.

PART 1. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)


				Three Months Ended March 31

				2003			2002

Operating revenues:
	Electric utility			$	586,911		$	537,882
	Electric trading margin				1,400			3,100
	Natural gas utility				333,250			187,536
	Other				6,194			6,733

			Total operating revenues		927,755			735,251
Operating expenses:
	Electric fuel and purchased power				208,990			184,445
	Cost of natural gas sold and transported				268,692			128,488
	Other operating and maintenance expenses				211,610			221,874
	Depreciation and amortization				91,202			85,432
	Taxes (other than income taxes)				44,346			43,318
	Special charges (see Note 2)				—			4,324

			Total operating expenses		824,840			667,881

Operating income					102,915			67,370
Other income (expense):
	Interest income				1,900			1,469
	Other nonoperating income				2,600			8,287
	Nonoperating expense				(1,480	)		(1,092	)

		Total other income (expense)			3,020			8,664
Interest charges and financing costs:
	Interest charges — net of amounts capitalized, includes other financing costs of $1,734 and $1,159, respectively				31,974			17,575
	Distributions on redeemable preferred securities of subsidiary trust				3,938			3,938

			Total interest charges and financing costs		35,912			21,513

Income before income taxes					70,023			54,521
Income taxes					25,572			21,488

Net income				$	44,451		$	33,033

See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements

NSP-MINNESOTA
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)


				Three Months Ended March 31

				2003			2002

Operating activities:
	Net income			$	44,451		$	33,033
	Adjustments to reconcile net income to cash provided by operating activities:
		Depreciation and amortization			93,533			87,361
		Nuclear fuel amortization			11,791			12,037
		Deferred income taxes			(10,395	)		(20,277	)
		Amortization of investment tax credits			(1,841	)		(2,212	)
		Allowance for equity funds used during construction			(2,009	)		(1,488	)
		Gain on sale of property			—			(6,785	)
		Change in accounts receivable			(54,250	)		(18,015	)
		Change in inventories			25,375			10,500
		Change in other current assets			(14,683	)		15,946
		Change in accounts payable			7,997			(14,261	)
		Change in other current liabilities			3,775			56,573
		Change in other noncurrent assets			1,261			(14,688	)
		Change in other noncurrent liabilities			14,217			24,854

			Net cash provided by operating activities		119,222			162,578
Investing activities:
	Capital/construction expenditures				(90,564	)		(88,010	)
	Proceeds from sale of property				—			11,152
	Allowance for equity funds used during construction				2,009			1,488
	Investments in external decommissioning fund				(8,406	)		(14,259	)
	Other investments — net				(1,638	)		(963	)

		Net cash used in investing activities			(98,599	)		(90,592	)
Financing activities:
	Short-term borrowings — net				(2	)		(5,142	)
	Repayment of long-term debt, including reacquisition premiums				(107,790	)		(278	)
	Dividends paid to parent				(52,280	)		(44,332	)

		Net cash used in financing activities			(160,072	)		(49,752	)
Net (decrease) increase in cash and cash equivalents					(139,449	)		22,234
Cash and cash equivalents at beginning of year					310,338			17,169

Cash and cash equivalents at end of year				$	170,889		$	39,403

See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements

NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of Dollars)


			March 31			Dec. 31
			2003			2002

ASSETS
Current assets:
	Cash and cash equivalents		$	170,889		$	310,338
	Restricted cash			23,000			23,000
	Accounts receivable — net of allowance for bad debts: $5,777 and $5,812, respectively			294,087			231,996
	Accounts receivable from affiliates			16,932			24,773
	Accrued unbilled revenues			131,166			109,435
	Materials and supplies inventories — at average cost			105,972			106,037
	Fuel inventory — at average cost			29,589			34,875
	Natural gas inventory — at average cost			4,361			24,385
	Derivative instrument valuation — at market			5,482			3,831
	Prepayments and other			22,300			34,234

		Total current assets		803,778			902,904

Property, plant and equipment, at cost:
	Electric utility plant			7,012,661			6,855,807
	Natural gas utility plant			720,989			716,844
	Construction work in progress			354,736			313,931
	Other			385,322			384,214

		Total property, plant and equipment		8,473,708			8,270,796
	Less accumulated depreciation			(4,167,217	)		(4,624,988	)
	Nuclear fuel — net of accumulated amortization: $1,070,322 and $1,058,531, respectively			85,567			74,139

		Net property, plant and equipment		4,392,058			3,719,947

Other assets:
	Nuclear decommissioning fund investments			617,650			617,048
	Other investments			23,896			22,730
	Regulatory assets			396,700			212,539
	Prepaid pension asset			276,383			263,713
	Other			64,500			72,144

		Total other assets		1,379,129			1,188,174

		Total assets	$	6,574,965		$	5,811,025

LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt		$	118,715		$	226,462
	Short-term debt			67			69
	Accounts payable			230,079			198,889
	Accounts payable to affiliates			43,673			66,866
	Taxes accrued			214,000			210,041
	Accrued interest			27,271			44,167
	Dividends payable to parent			53,569			52,280
	Derivative instrument valuation — at market			4,791			3,958
	Other			57,526			39,297

		Total current liabilities		749,691			842,029

Deferred credits and other liabilities:
	Deferred income taxes			684,304			700,966
	Deferred investment tax credits			72,603			74,577
	Regulatory liabilities			490,337			486,035
	Asset retirement obligations (see Note 1)			875,937			—
	Benefit obligations and other			140,075			136,452

		Total deferred credits and other liabilities		2,263,256			1,398,030

Long-term debt				1,570,112			1,569,938
Mandatorily redeemable preferred securities of subsidiary trust				200,000			200,000
Common stock — authorized 5,000,000 shares of $0.01 par value, outstanding 1,000,000 shares				10			10
Premium on common stock				813,869			813,869
Retained earnings				978,041			987,158
Accumulated other comprehensive (loss) income				(14	)		(9	)

	Total common stockholder’s equity			1,791,906			1,801,028
Commitments and contingencies (see Note 4)

Total liabilities and equity			$	6,574,965		$	5,811,025

See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements

NSP-WISCONSIN
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)


			Three Months Ended March 31

			2003			2002

Operating revenues:
	Electric utility		$	120,526		$	116,922
	Natural gas utility			64,433			40,394
	Other			87			86

		Total operating revenues		185,046			157,402
Operating expenses:
	Electric fuel and purchased power			55,463			54,531
	Cost of natural gas sold and transported			50,656			29,234
	Other operating and maintenance expenses			24,438			23,588
	Depreciation and amortization			11,334			10,755
	Taxes (other than income taxes)			4,227			4,100
	Special charges (see Note 2)			—			512

		Total operating expenses		146,118			122,720
Operating income				38,928			34,682
Other income (expense):
	Interest income			161			697
	Other nonoperating income			262			181
	Nonoperating expense			(102	)		(56	)

		Total other income (expense)		321			822
Interest charges — net of amounts capitalized; includes other financing costs of $224 and $224, respectively				5,731			5,833

Income before income taxes				33,518			29,671
Income taxes				13,664			11,720

Net income			$	19,854		$	17,951

See disclosures regarding NSP-Wisconsin in the Notes to Consolidated Financial Statements

NSP-WISCONSIN
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)


			Three Months Ended March 31

			2003		2002

Operating activities:
	Net income		$	19,854	$	17,951
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization		11,591