UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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 June 30, 2004 |
| 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 | ||||
| principal executive offices and | ||||
| Commission | Registrant’s Telephone Number, | IRS Employer | ||
| File Number |
including area code |
Identification No. |
||
001-31387
|
NORTHERN STATES POWER COMPANY | 41-1967505 | ||
| (a Minnesota Corporation) | ||||
| 414 Nicollet Mall, Minneapolis, Minn. 55401 | ||||
| Telephone (612) 330-5500 | ||||
001-3140
|
NORTHERN STATES POWER COMPANY | 39-0508315 | ||
| (a Wisconsin Corporation) | ||||
| 1414 W. Hamilton Ave., Eau Claire, Wis. 54701 | ||||
| Telephone (715) 839-2625 | ||||
001-03280
|
PUBLIC SERVICE COMPANY OF COLORADO | 84-0296600 | ||
| (a Colorado Corporation) | ||||
| 1225 17th Street, Denver, Colo. 80202 | ||||
| Telephone (303) 571-7511 | ||||
001-03789
|
SOUTHWESTERN PUBLIC SERVICE COMPANY | 75-0575400 | ||
| (a New Mexico Corporation) | ||||
| Tyler at Sixth, Amarillo, Texas 79101 | ||||
| Telephone (303) 571-7511 |
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
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 on various filings with the Securities and Exchange Commission (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.
2
PART 1. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
NSP-MINNESOTA
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
Operating revenues: |
||||||||||||||||
Electric utility |
$ | 596,383 | $ | 571,638 | $ | 1,204,699 | $ | 1,158,549 | ||||||||
Electric trading margin |
(465 | ) | 2,001 | 886 | 3,401 | |||||||||||
Natural gas utility |
94,154 | 88,878 | 406,286 | 422,128 | ||||||||||||
Other |
6,869 | 4,744 | 14,732 | 10,938 | ||||||||||||
Total operating revenues |
696,941 | 667,261 | 1,626,603 | 1,595,016 | ||||||||||||
Operating expenses: |
||||||||||||||||
Electric fuel and purchased power |
212,476 | 204,744 | 428,756 | 413,734 | ||||||||||||
Cost of natural gas sold and transported |
70,309 | 62,770 | 317,154 | 331,462 | ||||||||||||
Other operating and maintenance expenses |
209,314 | 211,979 | 416,809 | 423,589 | ||||||||||||
Depreciation and amortization |
82,333 | 99,469 | 164,499 | 190,671 | ||||||||||||
Taxes (other than income taxes) |
44,806 | 42,830 | 89,049 | 87,176 | ||||||||||||
Total operating expenses |
619,238 | 621,792 | 1,416,267 | 1,446,632 | ||||||||||||
Operating income |
77,703 | 45,469 | 210,336 | 148,384 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
1,609 | 1,493 | 3,239 | 3,393 | ||||||||||||
Other nonoperating income |
4,891 | 5,554 | 8,178 | 8,154 | ||||||||||||
Nonoperating expense |
(1,564 | ) | (1,689 | ) | (2,899 | ) | (3,169 | ) | ||||||||
Total other income |
4,936 | 5,358 | 8,518 | 8,378 | ||||||||||||
Interest charges and financing costs: |
||||||||||||||||
Interest charges — net of amounts capitalized,
includes other financing costs of $2,192,
$2,246, $4,497 and $3,980, respectively |
32,481 | 29,921 | 65,343 | 61,895 | ||||||||||||
Distributions on redeemable preferred
securities of subsidiary trust |
— | 3,937 | — | 7,875 | ||||||||||||
Total interest charges and financing costs |
32,481 | 33,858 | 65,343 | 69,770 | ||||||||||||
Income before income taxes |
50,158 | 16,969 | 153,511 | 86,992 | ||||||||||||
Income taxes (benefit) |
15,895 | (2,672 | ) | 50,891 | 22,900 | |||||||||||
Net income |
$ | 34,263 | $ | 19,641 | $ | 102,620 | $ | 64,092 | ||||||||
See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements
3
NSP-MINNESOTA
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)
| Six Months Ended June 30, |
||||||||
| 2004 |
2003 |
|||||||
Operating activities: |
||||||||
Net income |
$ | 102,620 | $ | 64,092 | ||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||
Depreciation and amortization |
170,840 | 174,207 | ||||||
Nuclear fuel amortization |
22,948 | 21,870 | ||||||
Deferred income taxes |
7,564 | (20,192 | ) | |||||
Amortization of investment tax credits |
(3,575 | ) | (3,683 | ) | ||||
Allowance for equity funds used during construction |
(8,454 | ) | (6,466 | ) | ||||
Change in accounts receivable |
27,654 | 393 | ||||||
Change in accounts receivable from affiliates |
26,256 | (484 | ) | |||||
Change in inventories |
7,452 | 5,882 | ||||||
Change in other current assets |
40,609 | 20,274 | ||||||
Change in accounts payable |
(53,559 | ) | (78,880 | ) | ||||
Change in other current liabilities |
3,665 | (94,746 | ) | |||||
Change in other noncurrent assets |
12,173 | 2,160 | ||||||
Change in other noncurrent liabilities |
18,802 | 29,842 | ||||||
Net cash provided by operating activities |
374,995 | 114,269 | ||||||
Investing activities: |
||||||||
Capital/construction expenditures |
(261,407 | ) | (181,007 | ) | ||||
Allowance for equity funds used during construction |
8,454 | 6,466 | ||||||
Investments in external decommissioning fund |
(40,289 | ) | (25,769 | ) | ||||
Restricted cash |
— | 15,500 | ||||||
Other investments — net |
(1,092 | ) | (2,536 | ) | ||||
Net cash used in investing activities |
(294,334 | ) | (187,346 | ) | ||||
Financing activities: |
||||||||
Short-term borrowings — net |
(58,000 | ) | 115,000 | |||||
Repayment of long-term debt, including reacquisition premiums |
(55 | ) | (208,551 | ) | ||||
Capital contribution from parent |
58,117 | 4,114 | ||||||
Dividends paid to parent |
(106,147 | ) | (105,849 | ) | ||||
Net cash used in financing activities |
(106,085 | ) | (195,286 | ) | ||||
Net decrease in cash and cash equivalents |
(25,424 | ) | (268,363 | ) | ||||
Cash and cash equivalents at beginning of period |
82,015 | 310,338 | ||||||
Cash and cash equivalents at end of period |
$ | 56,591 | $ | 41,975 | ||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for interest (net of amounts capitalized) |
$ | 58,029 | $ | 59,925 | ||||
Cash paid for income taxes (net of refunds received) |
$ | (25,250 | ) | $ | 121,099 | |||
See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements
4
NSP-MINNESOTA
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of Dollars)
| June 30, | Dec. 31, | |||||||
| 2004 |
2003 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 56,591 | $ | 82,015 | ||||
Accounts receivable — net of allowance for bad debts: $7,837 and $7,581, respectively |
250,492 | 278,146 | ||||||
Accounts receivable from affiliates |
46,270 | 72,526 | ||||||
Accrued unbilled revenues |
81,702 | 125,872 | ||||||
Materials and supplies inventories — at average cost |
102,773 | 100,297 | ||||||
Fuel inventory — at average cost |
37,868 | 27,727 | ||||||
Natural gas inventory — at average cost |
23,410 | 43,479 | ||||||
Income tax receivable |
— | 11,249 | ||||||
Derivative instrument valuation — at market |
24,782 | 26,666 | ||||||
Prepayments and other |
47,870 | 30,011 | ||||||
Total current assets |
671,758 | 797,988 | ||||||
Property, plant and equipment, at cost: |
||||||||
Electric utility plant |
7,410,148 | 7,268,609 | ||||||
Natural gas utility plant |
765,837 | 746,835 | ||||||
Construction work in progress |
367,161 | 328,880 | ||||||
Other |
423,524 | 400,448 | ||||||
Total property, plant and equipment |
8,966,670 | 8,744,772 | ||||||
Less accumulated depreciation |
(4,125,832 | ) | (3,991,875 | ) | ||||
Nuclear fuel — net of accumulated amortization: $1,124,879 and $1,101,932, respectively |
80,490 | 80,289 | ||||||
Net property, plant and equipment |
4,921,328 | 4,833,186 | ||||||
Other assets: |
||||||||
Nuclear decommissioning fund investments |
843,415 | 779,382 | ||||||
Other investments |
25,214 | 25,055 | ||||||
Regulatory assets |
464,496 | 492,491 | ||||||
Prepaid pension asset |
336,531 | 317,956 | ||||||
Derivative instrument valuation — at market |
295,835 | 177,581 | ||||||
Other |
53,520 | 59,463 | ||||||
Total other assets |
2,019,011 | 1,851,928 | ||||||
Total assets |
$ | 7,612,097 | $ | 7,483,102 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 4,499 | $ | 4,502 | ||||
Short-term debt |
— | 58,000 | ||||||
Accounts payable |
185,762 | 250,628 | ||||||
Accounts payable to affiliates |
44,191 | 32,884 | ||||||
Taxes accrued |
120,229 | 116,862 | ||||||
Accrued interest |
48,617 | 44,485 | ||||||
Dividends payable to parent |
53,598 | 53,852 | ||||||
Derivative instrument valuation — at market |
118,980 | 67,664 | ||||||
Other |
38,275 | 44,863 | ||||||
Total current liabilities |
614,151 | 673,740 | ||||||
Deferred credits and other liabilities: |
||||||||
Deferred income taxes |
759,112 | 738,677 | ||||||
Deferred investment tax credits |
62,900 | 66,681 | ||||||
Regulatory liabilities |
924,022 | 889,152 | ||||||
Asset retirement obligations |
1,057,285 | 1,024,529 | ||||||
Derivative instrument valuation — at market |
241,725 | 212,263 | ||||||
Benefit obligations and other |
147,815 | 128,247 | ||||||
Total deferred credits and other liabilities |
3,192,859 | 3,059,549 | ||||||
Long-term debt |
1,941,387 | 1,940,958 | ||||||
Common stock — authorized 5,000,000 shares of $0.01 par value, outstanding 1,000,000 shares |
10 | 10 | ||||||
Premium on common stock |
901,086 | 842,969 | ||||||
Retained earnings |
962,608 | 965,880 | ||||||
Accumulated other comprehensive loss |
(4 | ) | (4 | ) | ||||
Total common stockholder’s equity |
1,863,700 | 1,808,855 | ||||||
Commitments and contingencies (see Note 4) |
||||||||
Total liabilities and equity |
$ | 7,612,097 | $ | 7,483,102 | ||||
See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements
5
NSP-WISCONSIN
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
Operating revenues: |
||||||||||||||||
Electric utility |
$ | 109,158 | $ | 108,048 | $ | 232,283 | $ | 228,574 | ||||||||
Natural gas utility |
17,446 | 16,287 | 75,646 | 80,720 | ||||||||||||
Other |
154 | 8 | 317 | 76 | ||||||||||||
Total operating revenues |
126,758 | 124,343 | 308,246 | 309,370 | ||||||||||||
Operating expenses: |
||||||||||||||||
Electric fuel and purchased power |
55,236 | 56,719 | 109,136 | 112,182 | ||||||||||||
Cost of natural gas sold and transported |
12,410 | 10,978 | 58,172 | 61,634 | ||||||||||||
Other operating and maintenance expenses |
28,944 | 27,632 | 58,324 | 52,070 | ||||||||||||
Depreciation and amortization |
11,571 | 11,803 | 22,933 | 23,137 | ||||||||||||
Taxes (other than income taxes) |
4,161 | 4,032 | 8,477 | 8,259 | ||||||||||||
Total operating expenses |
112,322 | 111,164 | 257,042 | 257,282 | ||||||||||||
Operating income |
14,436 | 13,179 | 51,204 | 52,088 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
216 | 136 | 362 | 297 | ||||||||||||
Other nonoperating income |
643 | 389 | 1,199 | 670 | ||||||||||||
Nonoperating expense |
(159 | ) | (104 | ) | (316 | ) | (206 | ) | ||||||||
Total other income (expense) |
700 | 421 | 1,245 | 761 | ||||||||||||
Interest charges — net of amounts
capitalized, includes other financing
costs of $305, $224, $608 and $448,
respectively |
5,130 | 5,693 | 10,410 | 11,424 | ||||||||||||
Income before income taxes |
10,006 | 7,907 | 42,039 | 41,425 | ||||||||||||
Income taxes |
3,596 | 3,060 | 16,415 | 16,724 | ||||||||||||
Net income |
$ | 6,410 | $ | 4,847 | $ | 25,624 | $ | 24,701 | ||||||||
See disclosures regarding NSP-Wisconsin in the Notes to Consolidated Financial Statements
6
NSP-WISCONSIN
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)
| Six Months Ended June 30, |
||||||||
| 2004 |
2003 |
|||||||
Operating activities: |
||||||||
Net income |
$ | 25,624 | $ | 24,701 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
23,845 | 23,650 | ||||||
Deferred income taxes |
3,827 | 3,313 | ||||||
Amortization of investment tax credits |
(466 | ) | (396 | ) | ||||
Allowance for equity funds used during construction |
(1,100 | ) | (548 | ) | ||||
Undistributed equity in earnings of unconsolidated affiliates |
5 | (43 | ) | |||||
Change in accounts receivable |
4,894 | 9,894 | ||||||
Change in inventories |
2,215 | 1,413 | ||||||
Change in other current assets |
12,977 | 11,817 | ||||||
Change in accounts payable |
(7,950 | ) | (5,433 | ) | ||||
Change in other current liabilities |
3,229 | 1,064 | ||||||
Change in other assets |
(3,209 | ) | (3,100 | ) | ||||
Change in other liabilities |
87 | (127 | ) | |||||
Net cash provided by operating activities |
63,978 | 66,205 | ||||||
Investing activities: |
||||||||
Capital/construction expenditures |
(22,018 | ) | (22,139 | ) | ||||
Allowance for equity funds used during construction |
1,100 | 548 | ||||||
Other investments — net |
(551 | ) | 13 | |||||
Net cash used in investing activities |
(21,469 | ) | (21,578 | ) | ||||
Financing activities: |
||||||||
Short-term borrowings from affiliate — net |
(18,380 | ) | (6,880 | ) | ||||
Capital contributions from parent |
687 | 692 | ||||||
Dividends paid to parent |
(24,855 | ) | (24,714 | ) | ||||
Net cash used in financing activities |
(42,548 | ) | (30,902 | ) | ||||
Net (decrease) increase in cash and cash equivalents |
(39 | ) | 13,725 | |||||
Net increase in cash and cash equivalents — adoption of FIN No. 46 |
192 | — | ||||||
Cash and cash equivalents at beginning of period |
137 | 98 | ||||||
Cash and cash equivalents at end of period |
$ | 290 | $ | 13,823 | ||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for interest (net of amounts capitalized) |
$ | 9,770 | $ | 10,956 | ||||
Cash paid for income taxes (net of refunds received) |
$ | 2,865 | $ | 10,787 | ||||
See disclosures regarding NSP-Wisconsin in the Notes to Consolidated Financial Statements
7
NSP-WISCONSIN
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of Dollars)
| June 30, | Dec. 31, | |||||||
| 2004 |
2003 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 290 | $ | 137 | ||||
Accounts receivable — net of allowance for bad debts: $1,339 and $1,212, respectively |
38,525 | 42,603 | ||||||
Accounts receivable from affiliates |
623 | 1,389 | ||||||
Accrued unbilled revenues |
9,562 | 21,522 | ||||||
Materials and supplies inventories – at average cost |
5,717 | 5,274 | ||||||
Fuel inventory – at average cost |
7,879 | 4,962 | ||||||
Natural gas inventory — at average cost |
4,004 | 9,578 | ||||||
Current deferred income taxes |
3,719 | 3,430 | ||||||
Prepaid taxes |
13,649 | 17,082 | ||||||
Prepayments and other |
2,583 | 3,877 | ||||||
Total current assets |
86,551 | 109,854 | ||||||
Property, plant and equipment, at cost: |
||||||||
Electric utility plant |
1,210,814 | 1,189,122 | ||||||
Natural gas utility plant |
142,196 | 138,767 | ||||||
Common and other plant |
95,192 | 85,639 | ||||||
Construction work in progress |
19,201 | 31,428 | ||||||
Total property, plant and equipment |
1,467,403 | 1,444,956 | ||||||
Less accumulated depreciation |
(561,149 | ) | (543,768 | ) | ||||
Net property, plant and equipment |
906,254 | 901,188 | ||||||
Other assets: |
||||||||
Other investments |
8,435 | 9,989 | ||||||
Regulatory assets |
49,302 | 50,049 | ||||||
Prepaid pension asset |
49,427 | 46,384 | ||||||
Other |
7,745 | 7,407 | ||||||
Total other assets |
114,909 | 113,829 | ||||||
Total assets |
$ | 1,107,714 | $ | 1,124,871 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 34 | $ | 34 | ||||
Notes payable to affiliate |
5,330 | 23,710 | ||||||
Accounts payable |
13,495 | 23,586 | ||||||
Accounts payable to affiliates |
9,108 | 6,910 | ||||||