-- Ongoing 2010 first quarter earnings per share were $0.42 compared with
$0.38 per share in 2009.
-- GAAP (generally accepted accounting principles) 2010 first quarter
earnings per share were $0.36 compared with $0.38 per share in 2009.
-- Xcel Energy reaffirms its ongoing 2010 earnings guidance of $1.55 to
$1.65 per share.
MINNEAPOLIS--(BUSINESS WIRE)--
Xcel Energy Inc. (NYSE: XEL) today reported first quarter 2010 GAAP
earnings of $167 million, or $0.36 per diluted share, compared with
first quarter 2009 GAAP earnings of $174 million, or $0.38 per diluted
share.
Ongoing earnings, which exclude adjustments for certain non-recurring
items, were $0.42 per share for the 2010 first quarter, compared with
$0.38 per share in 2009. Ongoing results for the first quarter increased
in 2010 primarily due to higher electric and gas margins as a result of
the positive impact of constructive rate case outcomes and interim
rates, as well as increased sales, particularly to our residential
customers in Colorado and Texas. However, the higher margins were
partially offset by expected increases in operating and maintenance
expenses as well as property taxes.
"We've had a positive start to the year delivering solid first quarter
earnings," said Richard C. Kelly, chairman and chief executive officer.
"We announced the acquisition of two natural gas power plants in
Colorado, which will provide long-term value to our customers and
shareholders. In Colorado, we worked with key stakeholders to pass a law
to repower or retrofit up to 900 MW of coal generation that is designed
to reduce emissions and the environmental impact of our operations,
while providing reasonable cost recovery. In addition, we are
reaffirming our 2010 ongoing earnings guidance of $1.55 to $1.65 per
share."
Earnings Adjusted for Certain Non-recurring Items (Ongoing
Earnings)
During the first quarter of 2010, Xcel Energy recorded non-recurring tax
expense of approximately $17 million, or $0.04 per share, of tax
benefits previously recognized in income related to Medicare Part D
subsidies due to the recently enacted Patient Protection and Affordable
Care Act. Under GAAP, Xcel Energy was required to reverse these
previously recorded tax benefits in the period of enactment of the new
legislation.
In addition, during the first quarter of 2010, Xcel Energy recorded a
non-recurring tax and interest charge of approximately $10 million, or
$0.02 cents per share, due to an agreement in principle reached with the
IRS following the completion of a financial reconciliation of Xcel
Energy's statements of account dating back to tax year 1993, related to
the P.S.R. Investments, Inc. (PSRI) corporate owned life insurance
(COLI) program.
The following table provides a reconciliation of ongoing earnings per
share to GAAP earnings per share for the first quarter of 2010 and 2009:
Three Months Ended March 31,
Diluted Earnings (Loss) Per Share 2010 2009
Ongoing(a)diluted earnings per share $ 0.42 $ 0.38
Medicare Part D and PSRI (0.06 ) -
GAAPdiluted earnings per share $ 0.36 $ 0.38
(a) See Note 7.
At 10 a.m. CDT today, Xcel Energy will host a conference call to review
financial results. To participate in the call, please dial in 5 to 10
minutes prior to the start and follow the operator's instructions.
US Dial-In: (888) 549-7750
International Dial-In: (480) 629-9866
Conference ID: 4280031
The conference call also will be simultaneously broadcast and archived
on Xcel Energy's website at www.xcelenergy.com.
To access the presentation, click on Investor Information. If you are
unable to participate in the live event, the call will be available for
replay from 12:00 p.m. CDT on April 29 through 11:59 p.m. CDT on April
30.
Replay Numbers
US Dial-In: (800) 406-7325
International Dial-In: (303) 590-3030
Access Code: 4280031#
Except for the historical statements contained in this release, the
matters discussed herein, including our 2010 full year Earnings per
Share guidance and assumptions, are forward-looking statements that are
subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words "anticipate," "believe," "estimate," "expect,"
"intend," "may," "objective," "outlook," "plan," "project," "possible,"
"potential," "should" and similar expressions. Actual results may vary
materially. Forward-looking statements speak only as of the date they
are made, and we do not undertake any obligation to update them to
reflect changes that occur after that date. Factors that could cause
actual results to differ materially include, but are not limited to:
general economic conditions, including the availability of credit and
its impact on capital expenditures and the ability of Xcel Energy and
its subsidiaries to obtain financing on favorable terms; business
conditions in the energy industry; actions of credit rating agencies;
competitive factors, including the extent and timing of the entry of
additional competition in the markets served by Xcel Energy and its
subsidiaries; unusual weather; effects of geopolitical events, including
war and acts of terrorism; state, federal and foreign legislative and
regulatory initiatives that affect cost and investment recovery, have an
impact on rates or have an impact on asset operation or ownership;
structures that affect the speed and degree to which competition enters
the electric and natural gas markets; costs and other effects of legal
and administrative proceedings, settlements, investigations and claims;
actions of accounting regulatory bodies; and the other risk factors
listed from time to time by Xcel Energy in reports filed with the
Securities and Exchange Commission (SEC), including Risk Factors in Item
1A and Exhibit 99.01 of Xcel Energy's Annual Report on Form 10-K for the
year ended Dec. 31, 2009.
This information is not given in connection with any
sale,
offer for sale or offer to buy any security.
XCEL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(amounts in thousands, except per share data)
Three Months Ended March 31,
2010 2009
Operating revenues
Electric $ 1,995,592 $ 1,886,557
Natural gas 790,150 788,676
Other 21,720 20,309
Total operating revenues 2,807,462 2,695,542
Operating expenses
Electric fuel and purchased power 988,478 924,748
Cost of natural gas sold and transported 581,113 591,765
Cost of sales -- other 7,692 5,366
Other operating and maintenance expenses 480,973 471,894
Conservation and demand side management program 58,039 45,219
expenses
Depreciation and amortization 206,126 208,715
Taxes (other than income taxes) 81,376 77,038
Total operating expenses 2,403,797 2,324,745
Operating income 403,665 370,797
Other income, net 975 2,352
Equity earnings of unconsolidated subsidiaries 7,401 3,142
Allowance for funds used during construction -- 13,290 18,227
equity
Interest charges and financing costs
Interest charges -- includes other financing costs 143,830 141,803
of $5,011 and $5,038, respectively
Allowance for funds used during construction -- (7,737 ) (10,228 )
debt
Total interest charges and financing costs 136,093 131,575
Income from continuing operations before income 289,238 262,943
taxes
Income taxes 121,898 87,125
Income from continuing operations 167,340 175,818
Loss from discontinued operations, net of tax (222 ) (1,751 )
Net income 167,118 174,067
Dividend requirements on preferred stock 1,060 1,060
Earnings available to common shareholders $ 166,058 $ 173,007
Weighted average common shares outstanding:
Basic 458,918 455,192
Diluted 459,697 455,952
Earnings per average common share:
Basic $ 0.36 $ 0.38
Diluted 0.36 0.38
Cash dividends declared per common share $ 0.25 $ 0.24
XCEL ENERGY INC. AND SUBSIDIARIES
Notes to Investor
Relations Earnings Release (Unaudited)
Due to the seasonality of Xcel Energy's operating results, quarterly
financial results are not an appropriate base from which to project
annual results.
Note 1. Earnings per Share
Summary
The following table summarizes the diluted earnings per share for Xcel
Energy:
Three Months Ended March 31,
Diluted Earnings (Loss) Per Share 2010 2009
Public Service Company of Colorado (PSCo) $ 0.23 $ 0.17
NSP-Minnesota 0.15 0.17
NSP-Wisconsin 0.03 0.04
Southwestern Public Service Company (SPS) 0.02 0.02
Equity earnings of unconsolidated subsidiaries 0.01 0.01
Regulated utility -- continuing operations (b) 0.44 0.41
Holding company and other costs (0.02 ) (0.03 )
Ongoing(a)diluted earnings per share 0.42 0.38
Medicare Part D and PSRI (a) (0.06 ) -
Total GAAP diluted earnings per share $ 0.36 $ 0.38
(a) See Note 7.
(b) See Note 2.
PSCo -- Earnings at PSCo increased by six cents per share
for the first quarter of 2010. The increase is primarily due to new
electric rates that went into effect in July 2009 and January 2010, and
to a lesser degree improved sales, particularly to our residential
customers.
NSP-Minnesota -- Earnings at NSP-Minnesota decreased by two
cents per share for the first quarter of 2010 largely due to adverse
impacts of weather coupled with higher operating and maintenance costs.
NSP-Wisconsin -- Earnings at NSP-Wisconsin decreased by one
cent for the first quarter of 2010 due to fuel recovery, sluggish sales
as well as higher operating and maintenance expenses, offset by higher
new electric rates, which were effective in January 2010.
SPS -- Earnings at SPS were flat for the first quarter of
2010 primarily due to new electric rates that went into effect in
February and July 2009 which were offset by higher operating costs.
The following table summarizes significant components contributing to
the changes in the 2010 diluted earnings per share compared with the
same period in 2009, which are discussed in more detail later in the
release.
Three Months
Diluted Earnings (Loss) Per Share Ended March 31,
2009 GAAP and ongoing(a)diluted earnings per share $ 0.38
Components of change -- 2010 vs. 2009
Higher electric margins 0.06
Higher natural gas margins 0.02
Higher conservation and DSM expenses (generally offset in (0.02 )
revenues)
Lower AFUDC -- equity (0.01 )
Higher taxes (other than income taxes) (0.01 )
Higher operating and maintenance expenses (0.01 )
Other, net 0.01
2010 ongoing(a)diluted earnings per share 0.42
Medicare Part D and PSRI (a) (0.06 )
2010 GAAP diluted earnings per share $ 0.36
(a) See Note 7.
Note 2. Regulated Utility
Results -- Continuing Operations
Estimated Impact of Temperature Changes on Regulated Earnings --
The following table summarizes the estimated impact on earnings per
share of temperature variations compared with sales under normal weather
conditions.
Three Months Ended March 31,
2010 vs. 2009 vs. 2010 vs.
Normal Normal 2009
Retail electric $ 0.00 $ 0.00 $ 0.00
Firm natural gas 0.00 0.00 0.00
Total $ 0.00 $ 0.00 $ 0.00
While there were regional weather variations across our service
territory; when aggregated, the overall impact was not material to the
first quarter of 2010 or 2009.
Sales Growth -- The following table summarizes Xcel
Energy's sales growth for actual and weather-normalized sales for 2010
as compared with the same period in 2009.
Three Months Ended March 31,
Actual Normalized
Electric residential 4.0 % 3.0 %
Electric commercial and industrial 0.6 0.5
Total retail electric sales 1.6 1.2
Firm natural gas sales 6.3 1.4
Electric -- Electric revenues and fuel and purchased power
expenses are largely impacted by the fluctuation in the price of natural
gas, coal and uranium used in the generation of electricity, but as a
result of fuel recovery mechanisms these price fluctuations have little
impact on electric margin. The following tables detail the electric
revenues and margin:
Three Months Ended March 31,
(Millions of Dollars) 2010 2009
Electric revenues $ 1,996 $ 1,887
Electric fuel and purchased power (988 ) (925 )
Electric margin $ 1,008 $ 962
The following table summarizes the components of the changes in electric
margin:
Three Months
Ended March 31,
(Millions of Dollars) 2010 vs. 2009
Retail rate increases (Colorado, Wisconsin, Texas and New $ 57
Mexico)
Conservation and DSM revenue and incentive (generally offset by 13
expenses)
Retail sales increase (excluding weather impact) 6
NSP-Minnesota rate case provision for refund (largely offset in (10 )
depreciation expense)
Fuel recovery (8 )
Non-fuel riders (3 )
Firm wholesale (2 )
Other, net (7 )
Total increase in electric margin $ 46
Natural Gas -- The cost of natural gas tends to vary with
changing sales requirements and the cost of natural gas purchases.
However, due to purchased natural gas cost recovery mechanisms for sales
to retail customers, fluctuations in the cost of natural gas have little
effect on natural gas margin. The following tables detail natural gas
revenues and margin:
Three Months Ended March 31,
(Millions of Dollars) 2010 2009
Natural gas revenues $ 790 $ 789
Cost of natural gas sold and transported (581 ) (592 )
Natural gas margin $ 209 $ 197
The following table summarizes the components of the changes in natural
gas margin:
Three Months
Ended March 31,
(Millions of Dollars) 2010 vs. 2009
Estimated impact of weather $ 3
Rate increase (Minnesota interim) 3
Retail sales increase (excluding weather impact) 2
Conservation and DSM revenue and incentive (generally offset by 1
expenses)
Other, net 3
Total increase in natural gas margin $ 12
Other Operating and Maintenance (O&M) Expenses -- Other
O&M expenses increased by approximately $9.1 million, or 1.9 percent,
for the first quarter 2010. The following table summarizes the changes
in other O&M expenses:
Three Months
Ended March 31,
(Millions of Dollars) 2010 vs. 2009
Higher plant generation costs $ 11
Higher insurance costs 4
Lower employee benefits costs (8 )
Other, net 2
Total increase in other operating and maintenance expenses $ 9
-- Higher plant generation costs are primarily attributable to the timing
of scheduled maintenance.
-- Higher insurance costs are primarily due to increased general liability
insurance expenses.
-- Lower benefits costs are primarily the result of lower active and
retiree health care costs and lower annual and long-term incentive
costs, offset by higher pension costs.
Conservation and DSM Program Expenses -- Conservation and
DSM program expenses increased approximately $12.8 million or 28.4
percent, for the first quarter of 2010, compared with the same period in
2009. The higher expense is attributable to the expansion of programs
and regulatory commitments. Conservation and DSM program expenses are
generally recovered in our major jurisdictions concurrently through
riders and base rates.
Depreciation and Amortization -- Depreciation and
amortization expenses decreased by $2.6 million or 1.2 percent, for the
first quarter of 2010, compared with the same period in 2009. The lower
depreciation expense is primarily due to Minnesota Public Utilities
Commission (MPUC) decisions that reduced depreciation and
decommissioning expense in June and October 2009. These decreases were
partially offset by normal system expansion.
Taxes (Other Than Income Taxes) -- Taxes (other than income
taxes) increased by approximately $4.3 million or 5.6 percent, for the
first quarter of 2010, compared with the same period in 2009. The
increase is primarily due to an increase in property taxes in Colorado
and Minnesota.
Equity Earnings of Unconsolidated Subsidiaries -- Equity
earnings of unconsolidated subsidiaries increased by $4.3 million, for
the first quarter of 2010, compared with the same period in 2009. The
increase is primarily related to increased earnings from the equity
investment in WYCO Development LLC, which includes a natural gas
pipeline and a storage facility that began operating in 2008 and mid
2009, respectively.
Allowance for Funds Used During Construction, Equity and Debt
(AFUDC) -- AFUDC decreased by $7.4 million or 26.1 percent, for
the first quarter of 2010, compared with 2009. The decrease was
primarily due to the inclusion of Comanche Unit 3 in rate base as of
Jan. 1, 2010 and lower AFUDC rates, primarily driven by lower interest
rates.
Interest Charges -- Interest charges increased by
approximately $2.0 million, or 1.4 percent, for the first quarter of
2010, compared with 2009. The increase is due to higher long-term debt
levels to fund investment in our utility operations, partially offset by
lower interest rates.
Income Taxes -- Income tax expense increased by $34.8
million for the first quarter of 2010, compared with 2009. The increase
in income tax expense was primarily due to an increase in pretax income,
a write-off of tax benefit previously recorded for Medicare Part D
subsidies, and an adjustment related to the COLI Tax Court proceedings,
partially offset by a reversal of a valuation allowance for certain
state tax credit carryovers. The effective tax rate was 42.1 percent for
the first quarter of 2010, compared with 33.1 percent for the same
period in 2009.
The higher effective tax rate for the first quarter of 2010 was
primarily due to the following:
Three Months Ended March 31, 2010
Effective Tax
(Millions of Dollars) Dollars Rate
Income tax expense $ 121.9 42.1 %
Medicare Part D (17.0 ) (5.8 )
PSRI (7.7 ) (2.6 )
Reversal of valuation allowance for certain 5.3 1.8
state tax credit carryovers
Income tax expense (excluding items above) $ 102.5 35.5 %
We expect the effective tax rate for 2010 ongoing earnings to be
approximately 35 percent to 37 percent.
Note 3. PSCo Reaches Agreement
to Acquire Assets from Calpine Development Holdings, Inc.
In April 2010, PSCo reached an agreement with Riverside Energy Center
LLC and Calpine Development Holdings, Inc. to purchase the Rocky
Mountain Energy Center and Blue Spruce Energy Center natural gas
generation assets for $739 million. The acquisition is expected to close
in December 2010. The acquisition is subject to state and federal
regulatory approvals including cost recovery.
The acquisition developed from the PSCo 2007 Resource Plan in which the
assets were offered as part of the Colorado Public Utilities Commission
(CPUC) competitive bidding process. The offer was the least cost option
for thermal resources to be acquired under the plan.
The Rocky Mountain Energy Center is a 621 MW combined cycle natural
gas-fired power plant that began commercial operations in 2004. The Blue
Spruce Energy Center is a 310 MW simple cycle natural gas-fired power
plant that began commercial operations in 2003. Both power plants
currently provide energy and capacity to PSCo under power purchase
agreements, which were set to expire in 2013 and 2014.
Xcel Energy anticipates that the acquisition will be accretive to
earnings in 2011, assuming reasonable regulatory recovery and normal
access to the capital markets at reasonable terms.
Note 4. Xcel Energy Capital
Structure and Financing
Following is the capital structure of Xcel Energy at March 31, 2010:
Percentage
of Total
(Billions of Dollars) March 31, 2010 Capitalization
Current portion of long-term debt $ 0.5 3 %
Short-term debt 0.5 3
Long-term debt 7.9 48
Total debt 8.9 54
Preferred equity 0.1 1
Common equity 7.4 45
Total capitalization $ 16.4 100 %
Financing Plans -- Xcel Energy issues debt
and equity securities to refinance retiring maturities, reduce
short-term debt, fund construction programs, infuse equity in
subsidiaries, fund asset acquisitions and for other general corporate
purposes. In addition to the periodic issuance and repayment of
short-term debt, Xcel Energy and its utility subsidiaries plan to issue
the following securities:
-- NSP-Minnesota plans to issue approximately $500 million of first
mortgage bonds in the third quarter of 2010.
-- PSCo plans to issue $400 million of first mortgage bonds in the fourth
quarter of 2010.
-- Xcel Energy plans to issue:
o Approximately $500 million of long-term debt during the second quarter
of 2010;
o Approximately $400 million of equity in 2010 or 2011; and
o Approximately $75 million of equity through the Dividend Reinvestment
Program and various benefit programs in 2010.
Financing plans are subject to change, depending on capital
expenditures, internal cash generation, market conditions and other
factors.
Credit Facilities -- As of April 26, 2010, Xcel Energy and
its utility subsidiaries had the following committed credit facilities
available to meet its liquidity needs:
(Millions of Facility Drawn(a) Available Cash Liquidity Maturity
Dollars)
NSP-Minnesota $ 482.2 $ 86.7 $ 395.5 $ 0.6 $ 396.1 December 2011
PSCo 675.1 111.8 563.3 0.8 564.1 December 2011
SPS 247.9 18.0 229.9 0.7 230.6 December 2011
Xcel Energy - 771.6 292.1 479.5 0.8 480.3 December 2011
Holding Company
NSP-Wisconsin - - - 0.3 0.3
(b)
Total $ 2,176.8 $ 508.6 $ 1,668.2 $ 3.2 $ 1,671.4
(a) Includes direct borrowings, outstanding commercial paper and letters of
credit.
(b) NSP-Wisconsin does not have a separate credit facility; however, it has a
short-term borrowing agreement with NSP-Minnesota.
Note 5. Rates and Regulation
NSP-Minnesota Gas Rate Case -- In
November 2009, NSP-Minnesota filed a request with the MPUC to increase
Minnesota gas rates by $16.2 million for 2010, which represents a 2.8
percent overall increase in customer bills. This request is based on a
return on equity (ROE) of 11 percent, an equity ratio of 52.46 percent
and a rate base of $441 million. NSP-Minnesota also requested an
additional increase of $3.45 million for recovery of pension funding
costs effective Jan. 1, 2011. Interim rates of $11.1 million went into
effect on Jan. 11, 2010, subject to refund. The schedule is listed below
and a decision is expected in the fall of 2010.
-- Intervenor direct testimony on May 3, 2010;
-- Rebuttal testimony on June 2, 2010;
-- Surrebuttal testimony on June 15, 2010;
-- Evidentiary hearings are scheduled from June 21 to 25, 2010;
-- Initial briefs are on July 27, 2010;
-- Reply briefs and proposed findings are on Aug. 19, 2010; and
-- ALJ report is on Oct. 1, 2010.
PSCo - Wholesale Rate Case -- In 2009, PSCo
filed to increase Colorado wholesale rates by $30 million based on a
12.5 percent ROE, a 58 percent equity ratio and an electric production
rate base of $315 million. PSCo has requested that FERC suspend action
on the filing to allow time for settlement negotiations as PSCo is in
settlement discussions with its wholesale customers. PSCo expects final
rates will go into effect later in 2010.
Colorado Clean Air - Clean Jobs Act -- The Colorado Clean
Air-Clean Jobs Act was signed into law on April 19, 2010. The Act
establishes a timeline and regulatory framework for PSCo to develop a
plan to potentially retrofit, retire or replace 900 MW or more of aging
coal-fired electric generating capacity. The plan must result in a
reduction of 70 to 80 percent in NOx emissions from affected coal-fired
power plants by 2018 or sooner to meet current and reasonably
foreseeable Clean Air Act emission reduction mandates.
Under the emission reduction plan, PSCo may retrofit its existing
coal-fired plants with emission controls or retire and replace the
plants with natural gas-fired generation or other low emitting
resources. The Act specifically requires PSCo to study the early
retirement of up to 900 MW of existing coal-fired capacity, but does not
require any retirement unless, among other things, the retirement can be
accomplished at a reasonable cost while protecting system reliability.
PSCo must submit its plan to the CPUC by Aug. 15, 2010 and the CPUC must
act on the plan by Dec. 15, 2010. Pursuant to the Act, PSCo is entitled
to fully recover the costs that it prudently incurs in executing an
approved emission reduction plan and is allowed a return on construction
work in progress and annual changes in rates to recover plant costs. The
Act also makes interim rates permissible in Colorado, starting Jan. 1,
2012.
Note 6. Xcel Energy Ongoing
Earnings Guidance
Xcel Energy's 2010 ongoing earnings guidance is $1.55 to $1.65 per
share. Key assumptions are detailed below:
-- Normal weather patterns are experienced for the year.
-- Weather-adjusted retail electric utility sales grow approximately 1
percent.
-- Weather-adjusted retail firm natural gas sales increase approximately 0
percent to 1 percent.
-- Reflects increased revenue due to the full year impact of 2009 electric
rate cases in Colorado, Texas and New Mexico, along with the 2010
electric rate increase in Colorado.
-- Constructive outcomes in the Minnesota natural gas rate case and PSCo
wholesale electric rate case.
-- Increased rider revenue recovery of approximately $30 million.
-- O&M expenses are projected to increase $115 million to $135 million, or
6 percent to 7 percent.
-- Depreciation expense is projected to increase $35 million to $45
million.
-- Interest expense is projected to increase approximately $20 million to
$30 million.
-- AFUDC --equity is projected to decrease $15 million to $20 million.
-- The effective tax rate is approximately 35 percent to 37 percent.
-- Average common stock and equivalents total approximately 460 million
shares.
Note 7. Non-GAAP Reconciliation
Ongoing earnings exclude the impact of IRS tax and interest adjustments
related to the COLI program and the write-off of previously recognized
tax benefits relating to Medicare Part D subsidies due to the recently
enacted Patient Protection and Affordable Care Act.
Impact of the Patient Protection and Affordable Care Act - Medicare
Part D
In March 2010, the Patient Protection and Affordable Care Act was signed
into law. The law includes provisions to generate tax revenue to help
offset the cost of the new legislation. One of these provisions reduces
the deductibility of retiree health care costs to the extent of federal
subsidies received by plan sponsors that provide retiree prescription
drug benefits equivalent to Medicare Part D coverage, beginning in 2013.
Based on this provision, Xcel Energy is subject to additional taxes and
is required to reverse previously recorded tax benefits in the period of
enactment. Xcel Energy expensed approximately $17 million, or $0.04 per
share, of previously recognized tax benefits relating to Medicare Part D
subsidies during the first quarter of 2010. Xcel Energy does not expect
the $17 million of additional tax expense to recur in future periods.
PSRI
During 2007, Xcel Energy reached a settlement with the IRS related to a
dispute associated with its COLI program. These COLI policies were owned
and managed by PSRI, a wholly owned subsidiary of PSCo. As a follow on
to the 2007 IRS COLI settlement, as part of the Tax Court proceedings,
during the first quarter of 2010, Xcel Energy and the IRS reached an
agreement in principle after a two year financial reconciliation of the
Xcel Energy's statements of account, dating back to tax year 1993. This
tax and interest analysis required a comprehensive review of all of our
tax filings since 1993. Upon completion of this review, PSRI recorded a
net non-recurring adjustment of approximately $10 million (including
$7.7 million tax expense and $2.3 million interest expense, net of tax),
or $0.02 per share during the current period.
Xcel Energy's management believes that ongoing earnings provide a more
meaningful comparison of earnings results and is more representative of
Xcel Energy's fundamental core earnings power. Xcel Energy's management
uses ongoing earnings internally for financial planning and analysis,
for reporting of results to the Board of Directors, in determining
whether performance targets are met for performance-based compensation,
and when communicating its earnings outlook to analysts and investors.
The following table provides a reconciliation of ongoing earnings to
GAAP earnings:
Three Months Ended March 31,
(Thousands of Dollars) 2010 2009
Ongoing earnings $ 195,307 $ 175,337
Medicare Part D and PSRI (28,189 ) (1,270 )
GAAP earnings $ 167,118 $ 174,067
XCEL ENERGY INC. AND SUBSIDIARIES
EARNINGS RELEASE SUMMARY (UNAUDITED)
(amounts in thousands, except earnings per share)
Three Months Ended March 31,
2010 2009
Operating revenues:
Electric and natural gas revenues $ 2,785,742 $ 2,675,233
Other 21,720 20,309
Total operating revenues 2,807,462 2,695,542
Income from continuing operations 167,340 175,818
Loss from discontinued operations (222 ) (1,751 )
Net income 167,118 174,067
Earnings available to common shareholders 166,058 173,007
Weighted average diluted common shares outstanding 459,697 455,952
Components of Earnings per Share -- Diluted
Regulated utility -- continuing operations 0.44 0.41
Holding company and other costs (0.02 ) (0.03 )
Ongoing(a)diluted earnings per share 0.42 0.38
Medicare Part D and PSRI (a) (0.06 ) -
GAAP diluted earnings per share $ 0.36 $ 0.38
Book value per share $ 16.02 $ 15.48
(a) See Note 7.
Source: Xcel Energy
Contact: Xcel Energy
Paul Johnson, 612-215-4535
Managing Director, Investor Relations and Assistant Treasurer
or
Jack Nielsen, 612-215-4559
Director, Investor Relations
or
Cindy Hoffman, 612-215-4536
Senior Investor Relations Analyst
or
For news media inquiries only,
please call Xcel Energy media relations, 612-215-5300
Xcel Energy Internet address:
www.xcelenergy.com