NORTHERN STATES POWER CO - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


[X]		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2003


[ ]		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. [X] Yes [ ] No

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

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.


Northern States Power Co. (a Minnesota Corporation)		Common Stock, $0.01 par value1,000,000 Shares

Northern States Power Co. (a Wisconsin Corporation)		Common Stock, $100 par value933,000 Shares

Public Service Co. of Colorado		Common Stock, $0.01 par value100 Shares

Southwestern Public Service Co.		Common Stock, $1 par value100 Shares

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION
	Item 1. 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 Credit Agreement
EX-4.02 Credit Agreement
EX-4.03 Credit Agreement
EX-4.04 Credit Agreement
EX-31.01 Certification to Sec. 302 - NSP-Minnesota
EX-31.02 Certification to Sec. 302 - NSP-Wisconsin
EX-31.03 Certification to Sec. 302 - PSCo
EX-31.04 Certification to Sec. 302 - SPS
EX-32.01 Certification to Sec. 906 - NSP-Minnesota
EX-32.02 Certification to Sec. 906 - NSP-Wisconsin
EX-32.03 Certification to Sec. 906 - PSCo
EX-32.04 Certification to Sec. 906 - SPS
EX-99.01 Statement-Securities Litigation Reform

Table of Contents


PART I — FINANCIAL INFORMATION

Item 1. Item 2. Item 4.		Financial Statements Management’s Discussion and Analysis Controls and Procedures

PART II — OTHER INFORMATION

Item 1. Item 6.		Legal Proceedings Exhibits and Reports on Form 8-K

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 of 1935 (PUHCA). Additional information on Xcel Energy is available in 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 I — FINANCIAL INFORMATION

Item 1. Financial Statements

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


			Three Months Ended June 30,						Six Months Ended June 30,

			2003			2002			2003			2002

Operating revenues:
	Electric utility		$	571,638		$	563,918		$	1,158,549		$	1,101,800
	Natural gas utility			88,878			89,782			422,128			277,318
	Electric trading margin			2,001			(1,958	)		3,401			1,142
	Other			4,744			5,231			10,938			11,964

		Total operating revenues		667,261			656,973			1,595,016			1,392,224
Operating expenses:
	Electric fuel and purchased power			204,744			192,908			413,734			377,353
	Cost of natural gas sold and transported			62,770			59,390			331,462			187,878
	Other operating and maintenance expenses			211,979			188,228			423,589			410,102
	Depreciation and amortization			99,469			87,556			190,671			172,989
	Taxes (other than income taxes)			42,830			42,612			87,176			85,929
	Special charges (see Note 2)			—			—			—			4,324

		Total operating expenses		621,792			570,694			1,446,632			1,238,575

Operating income				45,469			86,279			148,384			153,649
Other income (expense):
	Interest income			1,493			5,451			3,393			6,920
	Other nonoperating income			5,554			2,170			8,154			10,457
	Nonoperating expense			(1,689	)		(1,725	)		(3,169	)		(2,817	)

		Total other income (expense)		5,358			5,896			8,378			14,560
Interest charges and financing costs:
	Interest charges — net of amounts capitalized (including financing costs of $2,246, $1,030, $3,980 and $2,189, respectively)			29,921			17,041			61,895			34,617
	Distributions on redeemable preferred securities of subsidiary trusts			3,937			3,938			7,875			7,875

		Total interest charges and financing costs		33,858			20,979			69,770			42,492
Income before income taxes				16,969			71,196			86,992			125,717
Income taxes (benefit)				(2,672	)		28,772			22,900			50,260

Net income			$	19,641		$	42,424		$	64,092		$	75,457

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

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


				Six Months Ended June 30,

				2003			2002

Operating activities:
	Net income			$	64,092		$	75,457
	Adjustments to reconcile net income to cash provided by operating activities:
		Depreciation and amortization			174,207			177,966
		Nuclear fuel amortization			21,870			24,586
		Deferred income taxes			(20,192	)		(30,725	)
		Amortization of investment tax credits			(3,683	)		(4,211	)
		Allowance for equity funds used during construction			(6,466	)		(3,423	)
		Gain on sale of property			—			(6,785	)
		Change in accounts receivable			(91	)		40,284
		Change in inventories			5,882			3,311
		Change in other current assets			20,274			21,789
		Change in accounts payable			(78,880	)		(33,825	)
		Change in other current liabilities			(94,746	)		(46,287	)
		Change in other noncurrent assets			2,160			(30,602	)
		Change in other noncurrent liabilities			29,842			50,879

			Net cash provided by operating activities		114,269			238,414
Investing activities:
	Capital/construction expenditures				(181,007	)		(201,216	)
	Allowance for equity funds used during construction				6,466			3,423
	Investments in external decommissioning fund				(25,769	)		(29,383	)
	Proceeds from sale of property				—			11,152
	Restricted cash				15,500			—
	Other investments — net				(2,536	)		(1,619	)

			Net cash used in investing activities		(187,346	)		(217,643	)
Financing activities:
	Short-term borrowings — net				115,000			37,997
	Repayment of long-term debt, including reacquisition premiums				(208,551	)		(778	)
	Capital contributions from parent				4,114			42,431
	Dividends paid to parent				(105,849	)		(92,679	)

			Net cash used in financing activities		(195,286	)		(13,029	)
Net (decrease) increase in cash and cash equivalents					(268,363	)		7,742
Cash and cash equivalents at beginning of period					310,338			17,169

Cash and cash equivalents at end of period				$	41,975		$	24,911

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

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


			June 30, 2003			December 31,
			(Unaudited)			2002

ASSETS
Current assets:
	Cash and cash equivalents		$	41,975		$	310,338
	Restricted cash			7,500			23,000
	Accounts receivable — net of allowance for bad debts of $7,261 and $5,812, respectively			231,603			231,996
	Accounts receivable from affiliates			25,257			24,773
	Accrued unbilled revenues			89,832			109,435
	Materials and supplies inventories — at average cost			106,503			106,037
	Fuel inventory — at average cost			36,689			34,875
	Natural gas inventory — at average cost			16,223			24,385
	Prepayments and other			36,892			38,065

		Total current assets		592,474			902,904

Property, plant and equipment, at cost:
	Electric utility plant			7,054,806			6,855,807
	Natural gas utility plant			725,441			716,844
	Construction work in progress			357,889			313,931
	Other			399,048			384,214

		Total property, plant and equipment		8,537,184			8,270,796
Less accumulated depreciation				(4,241,098	)		(4,624,988	)
Nuclear fuel — net of accumulated amortization: $1,080,401 and $1,058,531, respectively				97,298			74,139

		Net property, plant and equipment		4,393,384			3,719,947

Other assets:
	Nuclear decommissioning fund			688,522			617,048
	Other investments			24,339			22,730
	Regulatory assets			393,986			212,539
	Prepaid pension asset			290,714			263,713
	Other			63,837			72,144

		Total other assets		1,461,398			1,188,174

		Total assets	$	6,447,256		$	5,811,025

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

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


			June 30, 2003			December 31,
			(Unaudited)			2002

LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt		$	17,954		$	226,462
	Short-term debt			115,069			69
	Accounts payable			152,518			198,889
	Accounts payable to affiliates			34,357			66,866
	Taxes accrued			108,736			210,041
	Accrued interest			43,902			44,167
	Dividends payable to parent			53,332			52,280
	Other			50,074			43,255

		Total current liabilities		575,942			842,029

Deferred credits and other liabilities:
	Deferred income taxes			680,413			700,966
	Deferred investment tax credits			70,629			74,577
	Regulatory liabilities			558,154			486,035
	Benefit obligations and other			139,743			136,452
	Asset retirement obligations (see Note 1)			889,720			—

		Total deferred credits and other liabilities		2,338,659			1,398,030

Long-term debt				1,570,317			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				817,983			813,869
Retained earnings				944,350			987,158
Accumulated other comprehensive income (loss)				(5	)		(9	)

		Total common stockholder’s equity		1,762,338			1,801,028

Commitments and contingencies (see Note 4)
		Total liabilities and equity	$	6,447,256		$	5,811,025

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

NSP-WISCONSIN AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Thousands of Dollars)


			Three Months Ended June 30,				Six Months Ended June 30,

			2003		2002		2003		2002

Operating revenues:
	Electric utility		$	108,048	$	110,189	$	228,574	$	227,111
	Natural gas utility			16,287		18,845		80,720		59,239
	Other			51		25		138		111

		Total operating revenues		124,386		129,059		309,432		286,461
Operating expenses: