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 Sept. 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 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 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
EXHIBIT INDEX
EX-31.01 Certification-Section 302-NSP-Minnesota
EX-31.02 Certification-Section 302-NSP-Wisconsin
EX-31.03 Certification-Section 302-PSCo.
EX-31.04 Certification-Section 302-SPS
EX-32.01 Certification-Section 906-NSP-Minnesota
EX-32.02 Certification-Section 906-NSP-Wisconsin
EX-32.03 Certification-Section 906-PSCo.
EX-32.04 Certification-Section 906-SPS
EX-99.01 Statement-Securities Litigation Reform

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

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 Sept. 30,						Nine Months Ended Sept. 30,

			2003			2002			2003			2002

Operating revenues:
	Electric utility		$	750,318		$	717,173		$	1,908,867		$	1,818,973
	Natural gas utility			58,366			31,186			480,494			308,504
	Electric trading margin			6,492			(3,059	)		9,893			(1,917	)
	Other			(789	)		6,836			10,149			18,800

		Total operating revenues		814,387			752,136			2,409,403			2,144,360
Operating expenses:
	Electric fuel and purchased power			268,420			236,033			682,154			613,386
	Cost of natural gas sold and transported			36,238			21,848			367,700			209,726
	Other operating and maintenance expenses			213,433			190,189			637,022			600,291
	Depreciation and amortization			94,174			89,285			284,845			262,274
	Taxes (other than income taxes)			46,897			45,363			134,073			131,291
	Special charges (see Note 2)			—			—			—			4,324

		Total operating expenses		659,162			582,718			2,105,794			1,821,292

Operating income				155,225			169,418			303,609			323,068
Other income (expense):
	Interest income			1,428			5,315			4,821			12,235
	Other nonoperating income			4,025			63			12,179			10,521
	Nonoperating expense			(1,898	)		(1,669	)		(5,067	)		(4,487	)

		Total other income (expense)		3,555			3,709			11,933			18,269
Interest charges and financing costs:
	Interest charges - net of amounts capitalized (including financing costs of $2,440, $1,104, $6,420 and $3,293, respectively)			31,028			30,805			92,923			65,423
	Distributions on redeemable preferred securities of subsidiary trusts			1,313			3,938			9,188			11,813

		Total interest charges and financing costs		32,341			34,743			102,111			77,236
Income before income taxes				126,439			138,384			213,431			264,101
Income taxes				46,029			55,392			68,929			105,652

Net income			$	80,410		$	82,992		$	144,502		$	158,449

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)


				Nine Months Ended Sept. 30,

				2003			2002

Operating activities:
	Net income			$	144,502		$	158,449
	Adjustments to reconcile net income to cash provided by operating activities:
		Depreciation and amortization			293,633			270,556
		Nuclear fuel amortization			32,982			37,208
		Deferred income taxes			(4,615	)		(37,217	)
		Amortization of investment tax credits			(5,942	)		(6,236	)
		Allowance for equity funds used during construction			(9,464	)		(3,843	)
		Gain on sale of property			—			(6,785	)
		Change in accounts receivable			(16,817	)		35,017
		Change in inventories			(14,454	)		(6,345	)
		Change in other current assets			(18,981	)		50,586
		Change in accounts payable			(61,354	)		(54,831	)
		Change in other current liabilities			(89,715	)		34,986
		Change in other noncurrent assets			(50,569	)		(65,607	)
		Change in other noncurrent liabilities			46,152			57,439

			Net cash provided by operating activities		245,358			463,377
Investing activities:
	Capital/construction expenditures				(218,068	)		(280,584	)
	Allowance for equity funds used during construction				9,464			3,843
	Investments in external decommissioning fund				(42,669	)		(47,141	)
	Proceeds from sale of nonregulated property				—			11,152
	Decrease in restricted cash				23,000			—
	Other investments – net				(1,509	)		(1,599	)

			Net cash used in investing activities		(229,782	)		(314,329	)
Financing activities:
	Short-term borrowings - net				(69	)		(281,008	)
	Proceeds from issuance of long-term debt				372,459			624,690
	Repayment of long-term debt and preferred securities, including reacquisition premiums				(408,484	)		(778	)
	Capital contributions from parent				4,114			42,431
	Dividends paid to parent				(159,181	)		(143,728	)

			Net cash (used in) provided by financing activities		(191,161	)		241,607

Net (decrease) increase in cash and cash equivalents					(175,585	)		390,655
Cash and cash equivalents at beginning of period					310,338			17,169

Cash and cash equivalents at end of period				$	134,753		$	407,824

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

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


			Sept. 30, 2003			Dec. 31, 2002

ASSETS
Current assets:
	Cash and cash equivalents		$	134,753		$	310,338
	Restricted cash			—			23,000
	Accounts receivable - net of allowance for bad debts of $8,185 and $5,812, respectively			249,527			231,996
	Accounts receivable from affiliates			24,059			24,773
	Accrued unbilled revenues			101,825			109,435
	Materials and supplies inventories - at average cost			104,692			106,037
	Fuel inventory - at average cost			25,165			34,875
	Natural gas inventory - at average cost			49,894			24,385
	Prepayments and other			59,761			38,065

		Total current assets		749,676			902,904

Property, plant and equipment, at cost:
	Electric utility plant			7,202,471			6,855,807
	Natural gas utility plant			732,222			716,844
	Common and other plant			416,718			384,214
	Construction work in progress			329,876			313,931

		Total property, plant and equipment		8,681,287			8,270,796
	Less accumulated depreciation			(4,330,201	)		(4,624,988	)
	Nuclear fuel - net of accumulated amortization: $1,091,513 and $1,058,531, respectively			90,199			74,139

		Net property, plant and equipment		4,441,285			3,719,947

Other assets:
	Nuclear decommissioning fund			702,257			617,048
	Other investments			22,871			22,730
	Regulatory assets			417,139			212,539
	Prepaid pension asset			304,395			263,713
	Other			57,769			72,144

		Total other assets		1,504,431			1,188,174

		Total assets	$	6,695,392		$	5,811,025

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

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


			Sept. 30, 2003			Dec. 31, 2002

LIABILITIES AND EQUITY
Current liabilities:
	Current portion of long-term debt		$	18,019		$	226,462
	Short-term debt			—			69
	Accounts payable			178,213			198,889
	Accounts payable to affiliates			26,188			66,866
	Taxes accrued			117,899			210,041
	Accrued interest			24,202			44,167
	Dividends payable to parent			53,468			52,280
	Other			74,132			43,255

		Total current liabilities		492,121			842,029

Deferred credits and other liabilities:
	Deferred income taxes			682,695			700,966
	Deferred investment tax credits			68,655			74,577
	Regulatory liabilities			567,454			486,035
	Benefit obligations and other			143,579			136,452
	Asset retirement obligations (see Note 1)			1,008,534			—

		Total deferred credits and other liabilities		2,470,917			1,398,030
Long-term debt				1,943,073			1,569,938
Mandatorily redeemable preferred securities of subsidiary trust				—			200,000
Common stockholder’s equity:
	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			971,292			987,158
	Accumulated other comprehensive income (loss)			(4	)		(9	)

		Total common stockholder’s equity		1,789,281			1,801,028

Commitments and contingencies (see Note 4)
		Total liabilities and equity	$	6,695,392		$	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 Sept. 30,					Nine Months Ended Sept. 30,

			2003			2002		2003		2002

Operating revenues:
	Electric utility		$	129,207		$	121,578	$	357,781	$	348,689
	Natural gas utility			9,305			8,113		90,025		67,352
	Other			(34	)		541		103		652

		Total operating revenues		138,478			130,232		447,909		416,693
Operating expenses:
	Electric fuel and purchased power			62,945			54,971		175,127		159,617