QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
001-03280 | 84-0296600 | |
(Commission File Number) | (I.R.S. Employer Identification No.) |
(Registrant, State of Incorporation or Organization, Address of Principal Executive Officers and Telephone Number) |
Public Service Company of Colorado |
Colorado |
1800 Larimer, Suite 1100 |
Denver | Colorado | 80202 |
303 | 571-7511 |
Title of each class | ||||
N/A | ||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | ||
Emerging growth company | ☐ |
Class | ||
Common Stock, $0.01 par value | 100 shares |
PART I — FINANCIAL INFORMATION | |||
Item l — | |||
Item 2 — | |||
Item 4 — | |||
PART II — OTHER INFORMATION | |||
Item 1 — | |||
Item 1A — | |||
Item 6 — | |||
Certifications Pursuant to Section 302 | |||
Certifications Pursuant to Section 906 | |||
Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former) | |
NSP-Minnesota | Northern States Power Company, a Minnesota corporation |
NSP-Wisconsin | Northern States Power Company, a Wisconsin corporation |
PSCo | Public Service Company of Colorado |
SPS | Southwestern Public Service Company |
Utility subsidiaries | NSP-Minnesota, NSP-Wisconsin, PSCo and SPS |
WYCO | WYCO Development, LLC |
Xcel Energy | Xcel Energy Inc. and subsidiaries |
Federal and State Regulatory Agencies | |
CEC | Colorado Energy Consumers |
CPUC | Colorado Public Utilities Commission |
EPA | United States Environmental Protection Agency |
FEA | Federal Executive Agencies |
FERC | Federal Energy Regulatory Commission |
IRS | Internal Revenue Service |
OCC | Office of Consumer Counsel |
SEC | Securities and Exchange Commission |
Electric, Purchased Gas and Resource Adjustment Clauses | |
DSM | Demand side management |
Other | |
ACE | Affordable Clean Energy |
AFUDC | Allowance for funds used during construction |
ASC | FASB Accounting Standards Codification |
ASU | FASB Accounting Standards Update |
C&I | Commercial and Industrial |
CCR | Coal combustion residual |
CCR Rule | Final rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as a nonhazardous waste |
CEO | Chief executive officer |
CFO | Chief financial officer |
CIG | Colorado Interstate Gas Company, LLC |
DRC | Development Recovery Company |
ETR | Effective tax rate |
FASB | Financial Accounting Standards Board |
GAAP | Generally accepted accounting principles |
IPP | Independent power producing entity |
MDL | Multi district litigation |
MGP | Manufactured gas plant |
NOL | Net operating loss |
O&M | Operating and maintenance |
PPA | Power purchase agreement |
PTC | Production tax credit |
ROE | Return on equity |
ROU | Right-of-use |
Measurements | |
MW | Megawatts |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||
Electric | $ | 877,604 | $ | 897,516 | $ | 2,318,912 | $ | 2,337,547 | $ | 880.7 | $ | 894.8 | $ | 2,314.8 | $ | 2,309.3 | ||||||||||||||
Natural gas | 142,389 | 152,763 | 691,302 | 659,738 | 153.9 | 157.2 | 830.7 | 707.8 | ||||||||||||||||||||||
Steam and other | 10,300 | 8,898 | 31,529 | 29,585 | 9.7 | 8.7 | 31.8 | 28.7 | ||||||||||||||||||||||
Total operating revenues | 1,030,293 | 1,059,177 | 3,041,743 | 3,026,870 | 1,044.3 | 1,060.7 | 3,177.3 | 3,045.8 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||
Electric fuel and purchased power | 288,997 | 318,624 | 857,346 | 890,509 | 284.7 | 288.6 | 829.5 | 841.7 | ||||||||||||||||||||||
Cost of natural gas sold and transported | 37,243 | 42,379 | 303,903 | 270,182 | 34.3 | 32.3 | 376.7 | 282.1 | ||||||||||||||||||||||
Cost of sales — steam and other | 4,098 | 3,664 | 11,991 | 10,874 | 3.5 | 3.3 | 11.9 | 10.9 | ||||||||||||||||||||||
Operating and maintenance expenses | 173,905 | 191,011 | 547,413 | 570,343 | 198.4 | 201.4 | 597.9 | 573.5 | ||||||||||||||||||||||
Demand side management expenses | 34,520 | 31,015 | 92,552 | 88,094 | 36.6 | 39.4 | 100.9 | 105.3 | ||||||||||||||||||||||
Depreciation and amortization | 118,289 | 111,803 | 350,796 | 330,593 | 153.5 | 168.0 | 448.6 | 406.1 | ||||||||||||||||||||||
Taxes (other than income taxes) | 47,213 | 45,076 | 146,481 | 146,851 | 49.0 | 50.8 | 154.8 | 153.2 | ||||||||||||||||||||||
Total operating expenses | 704,265 | 743,572 | 2,310,482 | 2,307,446 | 760.0 | 783.8 | 2,520.3 | 2,372.8 | ||||||||||||||||||||||
Operating income | 326,028 | 315,605 | 731,261 | 719,424 | 284.3 | 276.9 | 657.0 | 673.0 | ||||||||||||||||||||||
Other income, net | 1,536 | 544 | 7,085 | 1,837 | 1.4 | 1.3 | 1.9 | 2.4 | ||||||||||||||||||||||
Allowance for funds used during construction — equity | 8,642 | 5,343 | 19,591 | 13,714 | 3.8 | 16.4 | 12.9 | 40.9 | ||||||||||||||||||||||
Interest charges and financing costs | ||||||||||||||||||||||||||||||
Interest charges — includes other financing costs of $1,605, $1,271, $4,669 and $4,735, respectively | 49,097 | 46,664 | 141,403 | 138,982 | ||||||||||||||||||||||||||
Interest charges — includes other financing costs of $1.6, $1.7, $4.9 and $4.9, respectively | 59.2 | 53.2 | 176.3 | 154.3 | ||||||||||||||||||||||||||
Allowance for funds used during construction — debt | (3,266 | ) | (1,995 | ) | (7,610 | ) | (5,222 | ) | (2.2 | ) | (6.4 | ) | (7.0 | ) | (16.1 | ) | ||||||||||||||
Total interest charges and financing costs | 45,831 | 44,669 | 133,793 | 133,760 | 57.0 | 46.8 | 169.3 | 138.2 | ||||||||||||||||||||||
Income before income taxes | 290,375 | 276,823 | 624,144 | 601,215 | 232.5 | 247.8 | 502.5 | 578.1 | ||||||||||||||||||||||
Income taxes | 104,298 | 103,216 | 225,934 | 224,390 | 28.0 | 40.7 | 57.7 | 115.0 | ||||||||||||||||||||||
Net income | $ | 186,077 | $ | 173,607 | $ | 398,210 | $ | 376,825 | $ | 204.5 | $ | 207.1 | $ | 444.8 | $ | 463.1 |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Net income | $ | 186,077 | $ | 173,607 | $ | 398,210 | $ | 376,825 | $ | 204.5 | $ | 207.1 | $ | 444.8 | $ | 463.1 | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||
Pension and retiree medical benefits: | ||||||||||||||||||||||||||||||||
Amortization of losses (gains) included in net periodic benefit cost, net of tax of $1, $0, $3 and $(134), respectively | 1 | — | 3 | (217 | ) | |||||||||||||||||||||||||||
Net pension and retiree medical losses arising during the period, net of tax of $0, $(0.1), $0 and $(0.1), respectively | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||||||||||||||||
Amortization of losses included in net periodic benefit cost, net of tax of $0, $0.1, $0 and $0.1, respectively | — | 0.2 | — | 0.2 | ||||||||||||||||||||||||||||
— | — | — | — | |||||||||||||||||||||||||||||
Derivative instruments: | �� | |||||||||||||||||||||||||||||||
Net fair value increase, net of tax of $0, $(1), $0, and $1, respectively | — | (1 | ) | — | 1 | |||||||||||||||||||||||||||
Reclassification of losses to net income, net of tax of $150, $162, $455, and $486, respectively | 257 | 266 | 753 | 792 | ||||||||||||||||||||||||||||
Reclassification of losses to net income, net of tax of $0.1, $0.1, $0.3 and $0.3, respectively | 0.3 | 0.3 | 0.9 | 0.9 | ||||||||||||||||||||||||||||
Other comprehensive income | 258 | 265 | 756 | 576 | 0.3 | 0.3 | 0.9 | 0.9 | ||||||||||||||||||||||||
Comprehensive income | $ | 186,335 | $ | 173,872 | $ | 398,966 | $ | 377,401 | $ | 204.8 | $ | 207.4 | $ | 445.7 | $ | 464.0 |
Nine Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||
Operating activities | ||||||||||||||
Net income | $ | 398,210 | $ | 376,825 | $ | 444.8 | $ | 463.1 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 353,653 | 332,383 | 452.2 | 409.8 | ||||||||||
Demand side management program amortization | 672 | 1,802 | ||||||||||||
Deferred income taxes | 223,121 | 202,599 | 24.1 | 66.6 | ||||||||||
Amortization of investment tax credits | (2,102 | ) | (2,104 | ) | (1.9 | ) | (2.1 | ) | ||||||
Allowance for equity funds used during construction | (19,591 | ) | (13,714 | ) | (12.9 | ) | (40.9 | ) | ||||||
Net realized and unrealized hedging and derivative transactions | 907 | (1,801 | ) | 64.5 | (9.9 | ) | ||||||||
Other | (11 | ) | (388 | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | 4,431 | 27,080 | 13.1 | (0.7 | ) | |||||||||
Accrued unbilled revenues | 74,918 | 70,498 | 84.8 | 60.1 | ||||||||||
Inventories | (250 | ) | (11,712 | ) | (15.1 | ) | 13.6 | |||||||
Prepayments and other | 11,717 | 52,526 | (12.4 | ) | 12.6 | |||||||||
Accounts payable | (53,706 | ) | (20,164 | ) | (96.0 | ) | 25.3 | |||||||
Net regulatory assets and liabilities | (28,594 | ) | (31,152 | ) | 72.3 | (23.6 | ) | |||||||
Other current liabilities | (40,789 | ) | (59,596 | ) | (66.3 | ) | (87.7 | ) | ||||||
Pension and other employee benefit obligations | (16,691 | ) | (13,080 | ) | (44.4 | ) | (29.0 | ) | ||||||
Change in other noncurrent assets | (1,149 | ) | (1,422 | ) | ||||||||||
Change in other noncurrent liabilities | (1,916 | ) | (15,433 | ) | ||||||||||
Other, net | (72.4 | ) | (19.8 | ) | ||||||||||
Net cash provided by operating activities | 902,830 | 893,147 | 834.4 | 837.4 | ||||||||||
Investing activities | ||||||||||||||
Utility capital/construction expenditures | (995,680 | ) | (802,051 | ) | (1,098.6 | ) | (1,190.7 | ) | ||||||
Proceeds from insurance recoveries | — | 608 | ||||||||||||
Allowance for equity funds used during construction | 19,591 | 13,714 | ||||||||||||
Investments in utility money pool arrangement | (659,000 | ) | (437,000 | ) | (397.0 | ) | (578.0 | ) | ||||||
Repayments from utility money pool arrangement | 609,000 | 437,000 | 397.0 | 575.0 | ||||||||||
Other, net | (657 | ) | (1,460 | ) | ||||||||||
Net cash used in investing activities | (1,026,746 | ) | (789,189 | ) | (1,098.6 | ) | (1,193.7 | ) | ||||||
Financing activities | ||||||||||||||
Repayments of short-term borrowings, net | (129,000 | ) | (14,000 | ) | (307.0 | ) | — | |||||||
Borrowings under utility money pool arrangement | 40,000 | 357,000 | 58.0 | 526.0 | ||||||||||
Repayments under utility money pool arrangement | (40,000 | ) | (306,000 | ) | (58.0 | ) | (526.0 | ) | ||||||
Proceeds from issuance of long-term debt | 393,795 | 244,527 | 928.6 | 691.4 | ||||||||||
Repayments of long-term debt | — | (129,500 | ) | (400.0 | ) | (300.0 | ) | |||||||
Capital contributions from parent | 158,080 | 1,571 | 632.7 | 246.8 | ||||||||||
Dividends paid to parent | (245,291 | ) | (253,796 | ) | (295.4 | ) | (271.9 | ) | ||||||
Other | (110 | ) | — | |||||||||||
Net cash provided by (used in) financing activities | 177,474 | (100,198 | ) | |||||||||||
Other, net | — | (0.1 | ) | |||||||||||
Net cash provided by financing activities | 558.9 | 366.2 | ||||||||||||
Net change in cash and cash equivalents | 53,558 | 3,760 | 294.7 | 9.9 | ||||||||||
Cash and cash equivalents at beginning of period | 5,926 | 3,585 | 33.4 | 7.5 | ||||||||||
Cash and cash equivalents at end of period | $ | 59,484 | $ | 7,345 | $ | 328.1 | $ | 17.4 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Cash paid for interest (net of amounts capitalized) | $ | (145,461 | ) | $ | (149,786 | ) | $ | (173.4 | ) | $ | (145.3 | ) | ||
Cash (paid) received for income taxes, net | (7,752 | ) | 32,388 | |||||||||||
Supplemental disclosure of non-cash investing transactions: | ||||||||||||||
Property, plant and equipment additions in accounts payable | $ | 133,933 | $ | 84,417 | ||||||||||
Cash paid for income taxes, net | (43.7 | ) | (86.4 | ) | ||||||||||
Supplemental disclosure of non-cash investing and financing transactions: | ||||||||||||||
Accrued property, plant and equipment additions | $ | 228.5 | $ | 135.0 | ||||||||||
Inventory transfers to property, plant and equipment | 24.4 | 29.8 | ||||||||||||
Operating lease right-of-use assets | 653.8 | — | ||||||||||||
Allowance for equity funds used during construction | 12.9 | 40.9 |
Sept. 30, 2017 | Dec. 31, 2016 | Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 59,484 | $ | 5,926 | $ | 328.1 | $ | 33.4 | ||||||
Accounts receivable, net | 299,367 | 304,900 | 294.2 | 310.3 | ||||||||||
Accounts receivable from affiliates | 13,386 | 9,421 | 13.6 | 80.8 | ||||||||||
Investments in utility money pool arrangement | 50,000 | — | ||||||||||||
Accrued unbilled revenues | 222,160 | 297,078 | 228.8 | 313.5 | ||||||||||
Inventories | 205,640 | 202,220 | 188.1 | 197.4 | ||||||||||
Regulatory assets | 81,021 | 103,783 | 70.5 | 120.6 | ||||||||||
Derivative instruments | 3,681 | 10,934 | 10.0 | 42.6 | ||||||||||
Prepayments and other | 24,193 | 34,559 | 39.3 | 23.8 | ||||||||||
Total current assets | 958,932 | 968,821 | 1,172.6 | 1,122.4 | ||||||||||
Property, plant and equipment, net | 13,550,488 | 12,849,799 | 15,786.4 | 15,120.0 | ||||||||||
Other assets | ||||||||||||||
Regulatory assets | 972,876 | 958,429 | 1,063.3 | 1,010.7 | ||||||||||
Derivative instruments | 861 | 3,398 | 0.7 | 1.2 | ||||||||||
Operating lease right-of-use assets | 594.4 | — | ||||||||||||
Other | 27,636 | 25,637 | 248.9 | 37.2 | ||||||||||
Total other assets | 1,001,373 | 987,464 | 1,907.3 | 1,049.1 | ||||||||||
Total assets | $ | 15,510,793 | $ | 14,806,084 | $ | 18,866.3 | $ | 17,291.5 | ||||||
Liabilities and Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Current portion of long-term debt | $ | 305,437 | $ | 5,270 | $ | — | $ | 406.2 | ||||||
Short-term debt | — | 129,000 | — | 307.0 | ||||||||||
Accounts payable | 399,402 | 376,186 | 514.0 | 503.4 | ||||||||||
Accounts payable to affiliates | 32,179 | 98,797 | 44.5 | 46.0 | ||||||||||
Regulatory liabilities | 61,224 | 101,110 | 116.5 | 67.3 | ||||||||||
Taxes accrued | 138,924 | 171,862 | 159.7 | 202.0 | ||||||||||
Accrued interest | 33,430 | 48,619 | 36.0 | 43.2 | ||||||||||
Dividends payable to parent | 88,588 | 74,208 | 97.3 | 91.5 | ||||||||||
Derivative instruments | 6,049 | 6,788 | 11.7 | 34.6 | ||||||||||
Other | 79,265 | 73,022 | 179.5 | 101.5 | ||||||||||
Total current liabilities | 1,144,498 | 1,084,862 | 1,159.2 | 1,802.7 | ||||||||||
Deferred credits and other liabilities | ||||||||||||||
Deferred income taxes | 3,122,909 | 2,889,129 | 1,772.0 | 1,719.3 | ||||||||||
Deferred investment tax credits | 28,559 | 30,661 | 23.5 | 25.3 | ||||||||||
Regulatory liabilities | 493,674 | 512,933 | 2,022.3 | 2,021.5 | ||||||||||
Asset retirement obligations | 298,740 | 289,563 | 350.1 | 338.7 | ||||||||||
Derivative instruments | 4,255 | 7,828 | 54.8 | 0.6 | ||||||||||
Customer advances | 159,012 | 162,742 | 172.8 | 168.1 | ||||||||||
Pension and employee benefit obligations | 269,156 | 285,774 | 230.5 | 275.3 | ||||||||||
Operating lease liabilities | 539.5 | — | ||||||||||||
Other | 59,909 | 62,201 | 152.0 | 50.4 | ||||||||||
Total deferred credits and other liabilities | 4,436,214 | 4,240,831 | 5,317.5 | 4,599.2 | ||||||||||
Commitments and contingencies | ||||||||||||||
Capitalization | ||||||||||||||
Long-term debt | 4,303,229 | 4,210,936 | 5,384.0 | 4,591.4 | ||||||||||
Common stock — 100 shares authorized at $0.01 par value; 100 shares outstanding at Sept. 30, 2017 and Dec. 31, 2016, respectively | — | — | ||||||||||||
Common stock — 100 shares authorized at $0.01 par value; 100 shares outstanding at Sept. 30, 2019 and Dec. 31, 2018, respectively | — | — | ||||||||||||
Additional paid in capital | 3,851,318 | 3,633,216 | 4,903.3 | 4,340.5 | ||||||||||
Retained earnings | 1,797,778 | 1,659,239 | 2,126.9 | 1,983.2 | ||||||||||
Accumulated other comprehensive loss | (22,244 | ) | (23,000 | ) | (24.6 | ) | (25.5 | ) | ||||||
Total common stockholder’s equity | 5,626,852 | 5,269,455 | 7,005.6 | 6,298.2 | ||||||||||
Total liabilities and equity | $ | 15,510,793 | $ | 14,806,084 | $ | 18,866.3 | $ | 17,291.5 |
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholder’s Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Three Months Ended Sept. 30, 2019 and 2018 | ||||||||||||||||||||||
Balance at June 30, 2018 | 100 | $ | — | $ | 4,273.1 | $ | 1,882.6 | $ | (26.1 | ) | $ | 6,129.6 | ||||||||||
Net income | 207.1 | 207.1 | ||||||||||||||||||||
Other comprehensive income | 0.3 | 0.3 | ||||||||||||||||||||
Dividends declared to parent | (103.5 | ) | (103.5 | ) | ||||||||||||||||||
Contribution of capital by parent | 5.3 | 5.3 | ||||||||||||||||||||
Balance at Sept. 30, 2018 | 100 | $ | — | $ | 4,278.4 | $ | 1,986.2 | $ | (25.8 | ) | $ | 6,238.8 | ||||||||||
Balance at June 30, 2019 | 100 | $ | — | $ | 4,618.3 | $ | 2,019.7 | $ | (24.9 | ) | $ | 6,613.1 | ||||||||||
Net income | 204.5 | 204.5 | ||||||||||||||||||||
Other comprehensive income | 0.3 | 0.3 | ||||||||||||||||||||
Dividends declared to parent | (97.3 | ) | (97.3 | ) | ||||||||||||||||||
Contribution of capital by parent | 285.0 | 285.0 | ||||||||||||||||||||
Balance at Sept. 30, 2019 | 100 | $ | — | $ | 4,903.3 | $ | 2,126.9 | $ | (24.6 | ) | $ | 7,005.6 | ||||||||||
See Notes to Consolidated Financial Statements |
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholder’s Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Nine Months Ended Sept. 30, 2019 and 2018 | ||||||||||||||||||||||
Balance at Dec. 31, 2017 | 100 | $ | — | $ | 4,032.8 | $ | 1,822.2 | $ | (26.7 | ) | $ | 5,828.3 | ||||||||||
Net income | 463.1 | 463.1 | ||||||||||||||||||||
Other comprehensive income | 0.9 | 0.9 | ||||||||||||||||||||
Dividends declared to parent | (299.1 | ) | (299.1 | ) | ||||||||||||||||||
Contribution of capital by parent | 245.6 | 245.6 | ||||||||||||||||||||
Balance at Sept. 30, 2018 | 100 | $ | — | $ | 4,278.4 | $ | 1,986.2 | $ | (25.8 | ) | $ | 6,238.8 | ||||||||||
Balance at Dec. 31, 2018 | 100 | $ | — | $ | 4,340.5 | $ | 1,983.2 | $ | (25.5 | ) | $ | 6,298.2 | ||||||||||
Net income | 444.8 | 444.8 | ||||||||||||||||||||
Other comprehensive income | 0.9 | 0.9 | ||||||||||||||||||||
Dividends declared to parent | (301.1 | ) | (301.1 | ) | ||||||||||||||||||
Contribution of capital by parent | 562.8 | 562.8 | ||||||||||||||||||||
Balance at Sept. 30, 2019 | 100 | $ | — | $ | 4,903.3 | $ | 2,126.9 | $ | (24.6 | ) | $ | 7,005.6 | ||||||||||
See Notes to Consolidated Financial Statements |
1. | Summary of Significant Accounting Policies |
2. | Accounting Pronouncements |
3. | Selected Balance Sheet Data |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 315.1 | $ | 330.8 | ||||
Less allowance for bad debts | (20.9 | ) | (20.5 | ) | ||||
Accounts receivable, net | $ | 294.2 | $ | 310.3 |
(Thousands of Dollars) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 319,051 | $ | 324,512 | ||||
Less allowance for bad debts | (19,684 | ) | (19,612 | ) | ||||
$ | 299,367 | $ | 304,900 |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Inventories | ||||||||
Materials and supplies | $ | 61.8 | $ | 61.9 | ||||
Fuel | 75.3 | 69.5 | ||||||
Natural gas | 51.0 | 66.0 | ||||||
Total inventories | $ | 188.1 | $ | 197.4 |
(Thousands of Dollars) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||
Inventories | ||||||||
Materials and supplies | $ | 69,051 | $ | 66,161 | ||||
Fuel | 56,247 | 66,429 | ||||||
Natural gas | 80,342 | 69,630 | ||||||
$ | 205,640 | $ | 202,220 |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Property, plant and equipment, net | ||||||||
Electric plant | $ | 14,070.5 | $ | 13,604.5 | ||||
Natural gas plant | 4,526.5 | 4,387.6 | ||||||
Common and other property | 1,070.2 | 1,023.7 | ||||||
Plant to be retired (a) | 275.5 | 321.9 | ||||||
Construction work in progress | 928.8 | 573.3 | ||||||
Total property, plant and equipment | 20,871.5 | 19,911.0 | ||||||
Less accumulated depreciation | (5,085.1 | ) | (4,791.0 | ) | ||||
Property, plant and equipment, net | $ | 15,786.4 | $ | 15,120.0 |
(Thousands of Dollars) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||
Property, plant and equipment, net | ||||||||
Electric plant | $ | 12,542,171 | $ | 12,304,436 | ||||
Natural gas plant | 3,904,223 | 3,710,772 | ||||||
Common and other property | 943,117 | 919,955 | ||||||
Plant to be retired (a) | 11,412 | 31,839 | ||||||
Construction work in progress | 874,399 | 484,340 | ||||||
Total property, plant and equipment | 18,275,322 | 17,451,342 | ||||||
Less accumulated depreciation | (4,724,834 | ) | (4,601,543 | ) | ||||
$ | 13,550,488 | $ | 12,849,799 |
(a) | In 2018, the |
4. |
(Millions of Dollars) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||
Unrecognized tax benefit — Permanent tax positions | $ | 3.7 | $ | 2.9 | ||||
Unrecognized tax benefit — Temporary tax positions | 6.2 | 16.8 | ||||||
Total unrecognized tax benefit | $ | 9.9 | $ | 19.7 |
(Millions of Dollars) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||
NOL and tax credit carryforwards | $ | (3.9 | ) | $ | (5.8 | ) |
(Millions of Dollars) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||
Payable for interest related to unrecognized tax benefits at beginning of period | $ | (1.1 | ) | $ | (0.4 | ) | ||
Interest income (expense) related to unrecognized tax benefits recorded during the period | 0.9 | (0.7 | ) | |||||
Payable for interest related to unrecognized tax benefits at end of period | $ | (0.2 | ) | $ | (1.1 | ) |
Revenue Request (Millions of Dollars) | 2018 | 2019 | 2020 | 2021 | Total | |||||||||||||||
Revenue request | $ | 74.6 | $ | 74.9 | $ | 59.7 | $ | 35.7 | $ | 244.9 | ||||||||||
Clean Air Clean Jobs Act (CACJA) revenue conversion to base rates (a) | 90.4 | — | — | — | 90.4 | |||||||||||||||
Transmission Cost Adjustment (TCA) revenue conversion to base rates (a) | 42.7 | — | — | — | 42.7 | |||||||||||||||
Total (b) | $ | 207.7 | $ | 74.9 | $ | 59.7 | $ | 35.7 | $ | 378.0 | ||||||||||
Expected year-end rate base (billions of dollars) (b) | $ | 6.8 | $ | 7.1 | $ | 7.3 | $ | 7.4 |
Revenue Request (Millions of Dollars) | 2018 | 2019 | 2020 | Total | ||||||||||||
Revenue request | $ | 63.2 | $ | 32.9 | $ | 42.9 | $ | 139.0 | ||||||||
Pipeline System Integrity Adjustment (PSIA) revenue conversion to base rates (a) | — | 93.9 | — | 93.9 | ||||||||||||
Total | $ | 63.2 | $ | 126.8 | $ | 42.9 | $ | 232.9 | ||||||||
Expected year-end rate base (billions of dollars) (b) | $ | 1.5 | $ | 2.3 | $ | 2.4 |
(Millions of Dollars) | Staff | OCC | ||||||
Filed 2018 new revenue request | $ | 63.2 | $ | 63.2 | ||||
Impact of the change in test year | 4.4 | 4.4 | ||||||
PSCo’s filed 2016 HTY | $ | 67.6 | $ | 67.6 | ||||
Recommended adjustments: | ||||||||
ROE (9.0 percent) | (13.5 | ) | (13.5 | ) | ||||
Capital structure and cost of debt | (10.2 | ) | (7.5 | ) | ||||
Change in amortization period | (5.4 | ) | — | |||||
Prepaid pension and retiree medical assets | (5.2 | ) | — | |||||
Change from 2016 year end to average rate base | (4.8 | ) | (4.8 | ) | ||||
Other, net | (5.0 | ) | (5.5 | ) | ||||
Total adjustments | $ | (44.1 | ) | $ | (31.3 | ) | ||
Total recommended rate increase | $ | 23.5 | $ | 36.3 |
Borrowings and Other Financing Instruments |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2019 | Year Ended Dec. 31, 2018 | ||||||
Borrowing limit | $ | 250 | $ | 250 | ||||
Amount outstanding at period end | — | — | ||||||
Average amount outstanding | 23 | 25 | ||||||
Maximum amount outstanding | 50 | 156 | ||||||
Weighted average interest rate, computed on a daily basis | 2.29 | % | 1.93 | % | ||||
Weighted average interest rate at period end | N/A | N/A |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2017 | Year Ended Dec. 31, 2016 | ||||||
Borrowing limit | $ | 250 | $ | 250 | ||||
Amount outstanding at period end | — | — | ||||||
Average amount outstanding | — | 21 | ||||||
Maximum amount outstanding | — | 141 | ||||||
Weighted average interest rate, computed on a daily basis | N/A | 0.73 | % | |||||
Weighted average interest rate at period end | N/A | N/A |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2019 | Year Ended Dec. 31, 2018 | ||||||
Borrowing limit | $ | 700 | $ | 700 | ||||
Amount outstanding at period end | — | 307 | ||||||
Average amount outstanding | 129 | 55 | ||||||
Maximum amount outstanding | 379 | 309 | ||||||
Weighted average interest rate, computed on a daily basis | 2.52 | % | 2.28 | % | ||||
Weighted average interest rate at period end | N/A | 2.95 |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2017 | Year Ended Dec. 31, 2016 | ||||||
Borrowing limit | $ | 700 | $ | 700 | ||||
Amount outstanding at period end | — | 129 | ||||||
Average amount outstanding | — | 24 | ||||||
Maximum amount outstanding | — | 154 | ||||||
Weighted average interest rate, computed on a daily basis | N/A | 0.70 | % | |||||
Weighted average interest rate at period end | N/A | 0.95 |
Credit Facility (a) | Credit Facility (a) | Drawn (b) | Available | Credit Facility (a) | Outstanding (b) | Available | ||||||||||||||
$ | 700 | $ | 4 | $ | 696 | 700 | $ | 9 | $ | 691 |
– | $400 million of 4.05% first mortgage bonds due Sept. 15, 2049. |
– | $550 million of 3.20% first mortgage green bonds due March 1, 2050. |
5. | Revenues |
Three Months Ended Sept. 30, 2019 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | 315.3 | $ | 94.1 | $ | 3.1 | $ | 412.5 | ||||||||
C&I | 452.4 | 32.9 | 5.5 | 490.8 | ||||||||||||
Other | 11.8 | — | — | 11.8 | ||||||||||||
Total retail | 779.5 | 127.0 | 8.6 | 915.1 | ||||||||||||
Wholesale | 40.3 | — | — | 40.3 | ||||||||||||
Transmission | 16.4 | — | — | 16.4 | ||||||||||||
Other | 8.3 | 21.4 | — | 29.7 | ||||||||||||
Total revenue from contracts with customers | 844.5 | 148.4 | 8.6 | 1,001.5 | ||||||||||||
Alternative revenue and other | 36.2 | 5.5 | 1.1 | 42.8 | ||||||||||||
Total revenues | $ | 880.7 | $ | 153.9 | $ | 9.7 | $ | 1,044.3 |
Three Months Ended Sept. 30, 2018 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | 315.7 | $ | 84.4 | $ | 2.7 | $ | 402.8 | ||||||||
C&I | 458.5 | 29.1 | 4.9 | 492.5 | ||||||||||||
Other | 11.8 | — | — | 11.8 | ||||||||||||
Total retail | 786.0 | 113.5 | 7.6 | 907.1 | ||||||||||||
Wholesale | 41.2 | — | — | 41.2 | ||||||||||||
Transmission | 16.3 | — | — | 16.3 | ||||||||||||
Other | 10.6 | 18.4 | — | 29.0 | ||||||||||||
Total revenue from contracts with customers | 854.1 | 131.9 | 7.6 | 993.6 | ||||||||||||
Alternative revenue and other | 40.7 | 25.3 | 1.1 | 67.1 | ||||||||||||
Total revenues | $ | 894.8 | $ | 157.2 | $ | 8.7 | $ | 1,060.7 |
Nine Months Ended Sept. 30, 2019 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | 771.9 | $ | 535.6 | $ | 8.4 | $ | 1,315.9 | ||||||||
C&I | 1,204.7 | 202.6 | 20.0 | 1,427.3 | ||||||||||||
Other | 36.1 | — | — | 36.1 | ||||||||||||
Total retail | 2,012.7 | 738.2 | 28.4 | 2,779.3 | ||||||||||||
Wholesale | 126.7 | — | — | 126.7 | ||||||||||||
Transmission | 41.4 | — | — | 41.4 | ||||||||||||
Other | 26.4 | 76.3 | — | 102.7 | ||||||||||||
Total revenue from contracts with customers | 2,207.2 | 814.5 | 28.4 | 3,050.1 | ||||||||||||
Alternative revenue and other | 107.6 | 16.2 | 3.4 | 127.2 | ||||||||||||
Total revenues | $ | 2,314.8 | $ | 830.7 | $ | 31.8 | $ | 3,177.3 |
Nine Months Ended Sept. 30, 2018 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | 766.1 | $ | 416.2 | $ | 7.9 | $ | 1,190.2 | ||||||||
C&I | 1,185.4 | 154.0 | 17.4 | 1,356.8 | ||||||||||||
Other | 35.4 | — | 0.1 | 35.5 | ||||||||||||
Total retail | 1,986.9 | 570.2 | 25.4 | 2,582.5 | ||||||||||||
Wholesale | 125.3 | — | — | 125.3 | ||||||||||||
Transmission | 41.7 | — | — | 41.7 | ||||||||||||
Other | 44.1 | 62.1 | — | 106.2 | ||||||||||||
Total revenue from contracts with customers | 2,198.0 | 632.3 | 25.4 | 2,855.7 | ||||||||||||
Alternative revenue and other | 111.3 | 75.5 | 3.3 | 190.1 | ||||||||||||
Total revenues | $ | 2,309.3 | $ | 707.8 | $ | 28.7 | $ | 3,045.8 |
Income Taxes |
Nine Months Ended Sept. 30 | ||||||
2019 | 2018 | |||||
Federal statutory rate | 21.0 | % | 21.0 | % | ||
State tax (net of federal tax effect) | 3.7 | 3.7 | ||||
Decreases in tax from: | ||||||
Wind PTCs | (7.7 | ) | — | |||
Plant regulatory differences (a) | (3.6 | ) | (3.1 | ) | ||
Other tax credits and tax credit and NOL allowances (net) | (1.3 | ) | (0.7 | ) | ||
Other (net) | (0.6 | ) | (1.0 | ) | ||
Effective income tax rate | 11.5 | % | 19.9 | % |
(a) | Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method and the timing of regulatory decisions regarding the return of excess deferred taxes. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions and additional prepaid pension asset amortization. |
Tax Year(s) | Expiration | |
2009 - 2013 | June 2020 | |
2014 - 2016 | September 2020 |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Unrecognized tax benefit — Permanent tax positions | $ | 7.0 | $ | 5.4 | ||||
Unrecognized tax benefit — Temporary tax positions | 4.7 | 4.9 | ||||||
Total unrecognized tax benefit | $ | 11.7 | $ | 10.3 |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
NOL and tax credit carryforwards | $ | (8.3 | ) | $ | (5.6 | ) |
7. | Fair Value of Financial Assets and Liabilities |
(Amounts in Thousands) (a)(b) | Sept. 30, 2017 | Dec. 31, 2016 | ||||||||||
(Amounts in Millions) (a)(b) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||||||
Megawatt hours of electricity | 13,967 | 6,283 | 15.5 | 24.4 | ||||||||
Million British thermal units of natural gas | 14,807 | 42,203 | 58.8 | 48.4 |
(a) | Amounts are not reflective of net positions in the underlying commodities. |
(b) | Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Three Months Ended Sept. 30, 2017 | |||||||||||||||||||||
Pre-Tax Fair Value Losses Recognized During the Period in: | Pre-Tax Losses Reclassified into Income During the Period from: | ||||||||||||||||||||
(Thousands of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | Pre-Tax Losses Recognized During the Period in Income | ||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||
Interest rate | $ | — | $ | — | $ | 407 | (a) | $ | — | $ | — | ||||||||||
Total | $ | — | $ | — | $ | 407 | $ | — | $ | — | |||||||||||
Other derivative instruments | |||||||||||||||||||||
Commodity trading | $ | — | $ | — | $ | — | $ | — | $ | (211 | ) | (c) | |||||||||
Natural gas commodity | — | (1,635 | ) | — | — | — | |||||||||||||||
Total | $ | — | $ | (1,635 | ) | $ | — | $ | — | $ | (211 | ) |
Nine Months Ended Sept. 30, 2017 | |||||||||||||||||||||
Pre-Tax Fair Value Losses Recognized During the Period in: | Pre-Tax Losses Reclassified into Income During the Period from: | Pre-Tax Losses Recognized During the Period in Income | |||||||||||||||||||
(Thousands of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | |||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||
Interest rate | $ | — | $ | — | $ | 1,208 | (a) | $ | — | $ | — | ||||||||||
Total | $ | — | $ | — | $ | 1,208 | $ | — | $ | — | |||||||||||
Other derivative instruments | |||||||||||||||||||||
Commodity trading | $ | — | $ | — | $ | — | $ | — | $ | (23 | ) | (c) | |||||||||
Natural gas commodity | — | (8,643 | ) | — | 282 | (d) | (2,990 | ) | (d) | ||||||||||||
Total | $ | — | $ | (8,643 | ) | $ | — | $ | 282 | $ | (3,013 | ) |
Three Months Ended Sept. 30, 2016 | |||||||||||||||||||||
Pre-Tax Fair Value Losses Recognized During the Period in: | Pre-Tax Losses Reclassified into Income During the Period from: | ||||||||||||||||||||
(Thousands of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | Pre-Tax Gains Recognized During the Period in Income | ||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||
Interest rate | $ | — | $ | — | $ | 407 | (a) | $ | — | $ | — | ||||||||||
Vehicle fuel and other commodity | (2 | ) | — | 21 | (b) | — | — | ||||||||||||||
Total | $ | (2 | ) | $ | — | $ | 428 | $ | — | $ | — | ||||||||||
Other derivative instruments | |||||||||||||||||||||
Commodity trading | $ | — | $ | — | $ | — | $ | — | $ | (28 | ) | (c) | |||||||||
Natural gas commodity | — | (4,848 | ) | — | — | (6 | ) | (d) | |||||||||||||
Total | $ | — | $ | (4,848 | ) | $ | — | $ | — | $ | (34 | ) |
Pre-Tax Fair Value Losses Recognized During the Period in: | ||||||||
(Millions of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | ||||||
Three Months Ended Sept. 30, 2019 | ||||||||
Other derivative instruments | ||||||||
Natural gas commodity | $ | — | $ | (2.2 | ) | |||
Total | $ | — | $ | (2.2 | ) | |||
Nine Months Ended Sept. 30, 2019 | ||||||||
Other derivative instruments | ||||||||
Natural gas commodity | $ | — | $ | (3.7 | ) | |||
Total | $ | — | $ | (3.7 | ) | |||
Three Months Ended Sept. 30, 2018 | ||||||||
Other derivative instruments | ||||||||
Natural gas commodity | $ | — | $ | (1.2 | ) | |||
Total | $ | — | $ | (1.2 | ) | |||
Nine Months Ended Sept. 30, 2018 | ||||||||
Other derivative instruments | ||||||||
Natural gas commodity | $ | — | $ | (1.6 | ) | |||
Total | $ | — | $ | (1.6 | ) |
Nine Months Ended Sept. 30, 2016 | |||||||||||||||||||||
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: | Pre-Tax Losses Reclassified into Income During the Period from: | ||||||||||||||||||||
(Thousands of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | Pre-Tax Gains (Losses) Recognized During the Period in Income | ||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||
Interest rate | $ | — | $ | — | $ | 1,211 | (a) | $ | — | $ | — | ||||||||||
Vehicle fuel and other commodity | 2 | — | 67 | (b) | — | — | |||||||||||||||
Total | $ | 2 | $ | — | $ | 1,278 | $ | — | $ | — | |||||||||||
Other derivative instruments | |||||||||||||||||||||
Commodity trading | $ | — | $ | — | $ | — | $ | — | $ | 200 | (c) | ||||||||||
Natural gas commodity | — | (1,172 | ) | — | 7,736 | (d) | (3,242 | ) | (d) | ||||||||||||
Total | $ | — | $ | (1,172 | ) | $ | — | $ | 7,736 | $ | (3,042 | ) |
Pre-Tax (Gains) Losses Reclassified into Income During the Period from: | Pre-Tax Gains (Losses) Recognized During the Period in Income | ||||||||||||
(Millions of Dollars) | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | |||||||||||
Three Months Ended Sept. 30, 2019 | |||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||
Interest rate | $ | 0.4 | (a) | $ | — | $ | — | ||||||
Total | $ | 0.4 | $ | — | $ | — | |||||||
Other derivative instruments | |||||||||||||
Commodity trading | $ | — | $ | — | $ | 0.6 | (b) | ||||||
Total | $ | — | $ | — | $ | 0.6 | |||||||
Nine Months Ended Sept. 30, 2019 | |||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||
Interest rate | $ | 1.2 | (a) | $ | — | $ | — | ||||||
Total | $ | 1.2 | $ | — | $ | — | |||||||
Other derivative instruments | |||||||||||||
Commodity trading | $ | — | $ | — | $ | 5.3 | (b) | ||||||
Natural gas commodity | — | (1.3 | ) | (c) | (2.1 | ) | (c) | ||||||
Total | $ | — | $ | (1.3 | ) | $ | 3.2 | ||||||
Three Months Ended Sept. 30, 2018 | |||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||
Interest rate | $ | 0.4 | (a) | $ | — | $ | — | ||||||
Total | $ | 0.4 | $ | — | $ | — | |||||||
Other derivative instruments | |||||||||||||
Commodity trading | $ | — | $ | — | $ | 2.0 | (b) | ||||||
Total | $ | — | $ | — | $ | 2.0 | |||||||
Nine Months Ended Sept. 30, 2018 | |||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||
Interest rate | $ | 1.2 | (a) | $ | — | $ | — | ||||||
Total | $ | 1.2 | $ | — | $ | — | |||||||
Other derivative instruments | |||||||||||||
Commodity trading | $ | — | $ | — | $ | 2.7 | (b) | ||||||
Natural gas commodity | — | 2.7 | (c) | (1.6 | ) | (c) | |||||||
Total | $ | — | $ | 2.7 | $ | 1.1 |
(a) |
(b) |
Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate. |
Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Total | Netting (a) | Fair Value | Fair Value Total | Netting (a) | |||||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | 1.4 | $ | 13.6 | $ | 0.2 | $ | 15.2 | $ | (10.0 | ) | $ | 5.2 | $ | 2.3 | $ | 65.0 | $ | 0.1 | $ | 67.4 | $ | (28.2 | ) | $ | 39.2 | ||||||||||||||||||||||
Natural gas commodity | — | 4.8 | — | 4.8 | — | 4.8 | — | 3.4 | — | 3.4 | — | 3.4 | ||||||||||||||||||||||||||||||||||||
Total current derivative assets | $ | 1.4 | $ | 18.4 | $ | 0.2 | $ | 20.0 | $ | (10.0 | ) | $ | 10.0 | $ | 2.3 | $ | 68.4 | $ | 0.1 | $ | 70.8 | $ | (28.2 | ) | $ | 42.6 | ||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | 0.5 | $ | 5.7 | $ | 0.1 | $ | 6.3 | $ | (5.6 | ) | $ | 0.7 | $ | — | $ | 1.6 | $ | — | $ | 1.6 | $ | (0.4 | ) | $ | 1.2 | ||||||||||||||||||||||
Total noncurrent derivative assets | $ | 0.5 | $ | 5.7 | $ | 0.1 | $ | 6.3 | $ | (5.6 | ) | $ | 0.7 | $ | — | $ | 1.6 | $ | — | $ | 1.6 | $ | (0.4 | ) | $ | 1.2 |
Sept. 30, 2017 | Sept. 30, 2019 | Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | Fair Value | Fair Value Total | Netting (a) | Fair Value | Fair Value Total | Netting (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | 116 | $ | 3,238 | $ | 5 | $ | 3,359 | $ | (2,652 | ) | $ | 707 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas commodity | — | 1,394 | — | 1,394 | (135 | ) | 1,259 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current derivative assets | $ | 116 | $ | 4,632 | $ | 5 | $ | 4,753 | $ | (2,787 | ) | 1,966 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (a) | 1,715 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | 3,681 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | — | $ | 511 | $ | — | $ | 511 | $ | (109 | ) | $ | 402 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noncurrent derivative assets | $ | — | $ | 511 | $ | — | $ | 511 | $ | (109 | ) | 402 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (a) | 459 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | 861 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Fair Value Total | Netting (a) | Total | Level 1 | Level 2 | Level 3 | Fair Value Total | Netting (a) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | 144 | $ | 3,104 | $ | 3 | $ | 3,251 | $ | (3,188 | ) | $ | 63 | $ | 1.4 | $ | 19.1 | $ | 0.1 | $ | 20.6 | $ | (13.3 | ) | $ | 7.3 | $ | 2.4 | $ | 64.2 | $ | — | $ | 66.6 | $ | (34.7 | ) | $ | 31.9 | |||||||||||||||||||||||||||||||||
Natural gas commodity | — | 962 | — | 962 | (135 | ) | 827 | — | 4.4 | — | 4.4 | — | 4.4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current derivative liabilities | $ | 144 | $ | 4,066 | $ | 3 | $ | 4,213 | $ | (3,323 | ) | 890 | $ | 1.4 | $ | 23.5 | $ | 0.1 | $ | 25.0 | $ | (13.3 | ) | 11.7 | $ | 2.4 | $ | 64.2 | $ | — | $ | 66.6 | $ | (34.7 | ) | 31.9 | ||||||||||||||||||||||||||||||||||||
PPAs (a) | 5,159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (b) | — | 2.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | 6,049 | $ | 11.7 | $ | 34.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity trading | $ | — | $ | 406 | $ | — | $ | 406 | $ | (109 | ) | $ | 297 | $ | 0.4 | $ | 60.0 | $ | — | $ | 60.4 | $ | (5.6 | ) | $ | 54.8 | $ | — | $ | 1.1 | $ | — | $ | 1.1 | $ | (0.5 | ) | $ | 0.6 | |||||||||||||||||||||||||||||||||
Total noncurrent derivative liabilities | $ | — | $ | 406 | $ | — | $ | 406 | $ | (109 | ) | 297 | $ | 0.4 | $ | 60.0 | $ | — | $ | 60.4 | $ | (5.6 | ) | $ | 54.8 | $ | — | $ | 1.1 | $ | — | $ | 1.1 | $ | (0.5 | ) | $ | 0.6 | ||||||||||||||||||||||||||||||||||
PPAs (a) | 3,958 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | 4,255 |
(a) |
PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, |
Dec. 31, 2016 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 1,124 | $ | 5,453 | $ | — | $ | 6,577 | $ | (5,137 | ) | $ | 1,440 | |||||||||||
Natural gas commodity | — | 7,778 | — | 7,778 | — | 7,778 | ||||||||||||||||||
Total current derivative assets | $ | 1,124 | $ | 13,231 | $ | — | $ | 14,355 | $ | (5,137 | ) | 9,218 | ||||||||||||
PPAs (a) | 1,716 | |||||||||||||||||||||||
Current derivative instruments | $ | 10,934 | ||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 1,652 | $ | — | $ | 1,652 | $ | — | $ | 1,652 | ||||||||||||
Total noncurrent derivative assets | $ | — | $ | 1,652 | $ | — | $ | 1,652 | $ | — | 1,652 | |||||||||||||
PPAs (a) | 1,746 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 3,398 | ||||||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 1,386 | $ | 5,357 | $ | 22 | $ | 6,765 | $ | (5,137 | ) | $ | 1,628 | |||||||||||
Total current derivative liabilities | $ | 1,386 | $ | 5,357 | $ | 22 | $ | 6,765 | $ | (5,137 | ) | 1,628 | ||||||||||||
PPAs (a) | 5,160 | |||||||||||||||||||||||
Current derivative instruments | $ | 6,788 | ||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||
PPAs (a) | $ | 7,828 | ||||||||||||||||||||||
Noncurrent derivative instruments | $ | 7,828 |
During 2006, PSCo qualified these contracts under the normal purchase exception. Based onthis qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||||||
(Millions of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt, including current portion | $ | 5,384.0 | $ | 6,139.2 | $ | 4,997.6 | $ | 5,123.2 |
Sept. 30, 2017 | Dec. 31, 2016 | |||||||||||||||
(Thousands of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt, including current portion | $ | 4,608,666 | $ | 4,958,850 | $ | 4,216,206 | $ | 4,491,570 |
8. | Benefit Plans and Other Postretirement Benefits |
Three Months Ended Sept. 30 | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | 6.4 | $ | 7.3 | $ | 0.1 | $ | 0.2 | ||||||||
Interest cost (a) | 12.9 | 11.8 | 3.9 | 3.8 | ||||||||||||
Expected return on plan assets (a) | (17.1 | ) | (17.1 | ) | (4.7 | ) | (5.7 | ) | ||||||||
Amortization of prior service credit (a) | (0.8 | ) | (0.9 | ) | (1.3 | ) | (1.6 | ) | ||||||||
Amortization of net loss (a) | 6.3 | 7.8 | 0.7 | 1.0 | ||||||||||||
Net periodic benefit cost (credit) | 7.7 | 8.9 | (1.3 | ) | (2.3 | ) | ||||||||||
Credits (costs) not recognized due to the effects of regulation | 0.8 | (4.1 | ) | 0.4 | 1.4 | |||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 8.5 | $ | 4.8 | $ | (0.9 | ) | $ | (0.9 | ) |
Nine Months Ended Sept. 30 | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | 19.2 | $ | 21.8 | $ | 0.4 | $ | 0.5 | ||||||||
Interest cost (a) | 38.7 | 35.5 | 11.7 | 11.2 | ||||||||||||
Expected return on plan assets (a) | (51.4 | ) | (51.4 | ) | (14.2 | ) | (17.0 | ) | ||||||||
Amortization of prior service credit (a) | (2.5 | ) | (2.5 | ) | (4.1 | ) | (4.7 | ) | ||||||||
Amortization of net loss (a) | 19.1 | 23.4 | 2.2 | 3.1 | ||||||||||||
Net periodic benefit cost (credit) | 23.1 | 26.8 | (4.0 | ) | (6.9 | ) | ||||||||||
Credits (costs) not recognized due to the effects of regulation | 4.4 | (1.7 | ) | 0.9 | 1.4 | |||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 27.5 | $ | 25.1 | $ | (3.1 | ) | $ | (5.5 | ) |
(a) | The components of net periodic cost other than the service cost component are included in the line item “other income, net” in the consolidated statement of income or capitalized on the consolidated balance sheet as a regulatory asset. |
9. |
(Millions of Dollars) | Sept. 30, 2019 | |||
PPAs | $ | 585.1 | ||
Other | 68.7 | |||
Gross operating lease ROU assets | 653.8 | |||
Accumulated amortization | (59.4 | ) | ||
Net operating lease ROU assets | $ | 594.4 |
(Millions of Dollars) | Sept. 30, 2019 | |||
Gas storage facilities | $ | 200.5 | ||
Gas pipeline | 20.7 | |||
Gross finance lease ROU assets | 221.2 | |||
Accumulated amortization | (80.8 | ) | ||
Net finance lease ROU assets | $ | 140.4 |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
(Thousands of Dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Interest income | $ | 1,422 | $ | 162 | $ | 2,406 | $ | 451 | |||||||
Other nonoperating income | 193 | 511 | 4,940 | 1,594 | |||||||||||
Insurance policy expense | (79 | ) | (129 | ) | (261 | ) | (205 | ) | |||||||
Other nonoperating expense | — | — | — | (3 | ) | ||||||||||
Other income, net | $ | 1,536 | $ | 544 | $ | 7,085 | $ | 1,837 |
(Millions of Dollars) | Three Months Ended Sept. 30, 2019 | Nine Months Ended Sept. 30, 2019 | ||||||
Operating leases | ||||||||
PPA capacity payments | $ | 24.6 | $ | 73.6 | ||||
Other operating leases (a) | 4.3 | 11.5 | ||||||
Total operating lease expense (b) | $ | 28.9 | $ | 85.1 | ||||
Finance leases | ||||||||
Amortization of ROU assets | $ | 1.6 | $ | 4.6 | ||||
Interest expense on lease liability | 4.7 | 14.2 | ||||||
Total finance lease expense | $ | 6.3 | $ | 18.8 |
(a) | Includes short-term lease expense of $0.3 million for the three months ended Sept. 30, 2019 and $1.0 million for the nine months ended Sept. 30, 2019. |
(b) | PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. |
(Millions of Dollars) | PPA (a) (b) Operating Leases | Other Operating Leases | Total Operating Leases | Finance Leases | ||||||||||||
2019 | $ | 23.9 | $ | 3.3 | $ | 27.2 | $ | 6.2 | ||||||||
2020 | 95.9 | 13.2 | 109.1 | 24.8 | ||||||||||||
2021 | 96.4 | 12.6 | 109.0 | 23.6 | ||||||||||||
2022 | 82.6 | 11.6 | 94.2 | 20.5 | ||||||||||||
2023 | 70.0 | 10.9 | 80.9 | 20.3 | ||||||||||||
Thereafter | 288.6 | 29.2 | 317.8 | 419.8 | ||||||||||||
Total minimum obligation | 657.4 | 80.8 | 738.2 | 515.2 | ||||||||||||
Interest component of obligation | (100.6 | ) | (13.1 | ) | (113.7 | ) | (374.8 | ) | ||||||||
Present value of minimum obligation | $ | 556.8 | $ | 67.7 | 624.5 | 140.4 | ||||||||||
Less current portion | (85.0 | ) | (6.7 | ) | ||||||||||||
Noncurrent operating and finance lease liabilities | $ | 539.5 | $ | 133.7 | ||||||||||||
Weighted-average remaining lease term in years | 8.1 | 38.9 |
(a) | Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. |
(b) | PPA operating leases contractually expire at various dates through 2032. |
(Millions of Dollars) | PPA (a) (b) Operating Leases | Other Operating Leases | Total Operating Leases | Finance Leases | ||||||||||||
2019 | $ | 95.5 | $ | 10.8 | $ | 106.3 | $ | 24.9 | ||||||||
2020 | 95.9 | 10.7 | 106.6 | 24.8 | ||||||||||||
2021 | 96.4 | 9.5 | 105.9 | 23.6 | ||||||||||||
2022 | 82.6 | 8.4 | 91.0 | 20.5 | ||||||||||||
2023 | 70.0 | 8.1 | 78.1 | 20.3 | ||||||||||||
Thereafter | 288.6 | 53.4 | 342.0 | 420.4 | ||||||||||||
Total minimum obligation | 534.5 | |||||||||||||||
Interest component of obligation | (389.5 | ) | ||||||||||||||
Present value of minimum obligation | $ | 145.0 |
(a) | Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. |
(b) | PPA operating leases contractually expire at various dates through 2032. |
10. | Other Comprehensive Income (Loss) |
Three Months Ended Sept. 30, 2019 | Three Months Ended Sept. 30, 2018 | |||||||||||||||||||||||
(Millions of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | ||||||||||||||||||
Accumulated other comprehensive loss at July 1 | $ | (24.7 | ) | $ | (0.2 | ) | $ | (24.9 | ) | $ | (25.8 | ) | $ | (0.3 | ) | $ | (26.1 | ) | ||||||
Other comprehensive loss before reclassifications (net of taxes of $0, $0, $0 and $(0.1), respectively) | — | — | — | — | (0.2 | ) | (0.2 | ) | ||||||||||||||||
Losses reclassified from net accumulated other comprehensive loss: | ||||||||||||||||||||||||
Interest rate derivatives (net of taxes of $0.1, $0, $0.1 and $0, respectively) (a) | 0.3 | — | 0.3 | 0.3 | — | 0.3 | ||||||||||||||||||
Amortization of net actuarial loss (net of taxes of $0, $0, $0 and $0.1, respectively) | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
Net current period other comprehensive income | 0.3 | — | 0.3 | 0.3 | — | 0.3 | ||||||||||||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (24.4 | ) | $ | (0.2 | ) | $ | (24.6 | ) | $ | (25.5 | ) | $ | (0.3 | ) | $ | (25.8 | ) |
Nine Months Ended Sept. 30, 2019 | Nine Months Ended Sept. 30, 2018 | |||||||||||||||||||||||
(Millions of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | Gains and Losses on Cash Flow Hedges | Defined Benefit Pension and Postretirement Items | Total | ||||||||||||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (25.3 | ) | $ | (0.2 | ) | $ | (25.5 | ) | $ | (26.4 | ) | $ | (0.3 | ) | $ | (26.7 | ) | ||||||
Other comprehensive loss before reclassifications (net of taxes of $0, $0, $0 and $(0.1), respectively | — | — | — | — | (0.2 | ) | (0.2 | ) | ||||||||||||||||
Losses reclassified from net accumulated other comprehensive loss: | ||||||||||||||||||||||||
Interest rate derivatives (net of taxes of $0.3, $0, $0.3 and $0, respectively) (a) | 0.9 | — | 0.9 | 0.9 | — | 0.9 | ||||||||||||||||||
Amortization of net actuarial loss (net of taxes of $0, $0, $0 and $0.1, respectively) | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
Net current period other comprehensive income | 0.9 | — | 0.9 | 0.9 | — | 0.9 | ||||||||||||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (24.4 | ) | $ | (0.2 | ) | $ | (24.6 | ) | $ | (25.5 | ) | $ | (0.3 | ) | $ | (25.8 | ) |
(a) | Included in interest charges. |
11. | Segment Information |
• | Regulated Electric - The regulated electric utility segment generates electricity which is transmitted and distributed in Colorado. This segment includes sales for resale and provides wholesale transmission service to various entities in the United States. Regulated electric utility also includes PSCo’s wholesale commodity and trading operations. |
• | Regulated Natural Gas - The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Colorado. |
• | All Other - Revenues from operating segments not included above are below the necessary quantitative thresholds are included in the all other category. Those primarily include steam revenue, appliance repair services and nonutility real estate activities. |
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | |||||||||||||||
Three Months Ended Sept. 30, 2017 | ||||||||||||||||||||
Operating revenues (a)(b) | $ | 877,604 | $ | 142,389 | $ | 10,300 | $ | — | $ | 1,030,293 | ||||||||||
Intersegment revenues | 47 | 222 | — | (269 | ) | — | ||||||||||||||
Total revenues | $ | 877,651 | $ | 142,611 | $ | 10,300 | $ | (269 | ) | $ | 1,030,293 | |||||||||
Net income | $ | 178,648 | $ | 5,815 | $ | 1,614 | $ | — | $ | 186,077 |
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | |||||||||||||||
Three Months Ended Sept. 30, 2016 | ||||||||||||||||||||
Operating revenues (a)(b) | $ | 897,516 | $ | 152,763 | $ | 8,898 | $ | — | $ | 1,059,177 | ||||||||||
Intersegment revenues | 54 | 6 | — | (60 | ) | — | ||||||||||||||
Total revenues | $ | 897,570 | $ | 152,769 | $ | 8,898 | $ | (60 | ) | $ | 1,059,177 | |||||||||
Net income (loss) | $ | 168,328 | $ | 4,918 | $ | 361 | $ | — | $ | 173,607 |
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | |||||||||||||||
Nine Months Ended Sept. 30, 2017 | ||||||||||||||||||||
Operating revenues (a)(b) | $ | 2,318,912 | $ | 691,302 | $ | 31,529 | $ | — | $ | 3,041,743 | ||||||||||
Intersegment revenues | 206 | 318 | — | (524 | ) | — | ||||||||||||||
Total revenues | $ | 2,319,118 | $ | 691,620 | $ | 31,529 | $ | (524 | ) | $ | 3,041,743 | |||||||||
Net income | $ | 342,195 | $ | 53,133 | $ | 2,882 | $ | — | $ | 398,210 |
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | |||||||||||||||
Nine Months Ended Sept. 30, 2016 | ||||||||||||||||||||
Operating revenues (a)(b) | $ | 2,337,547 | $ | 659,738 | $ | 29,585 | $ | — | $ | 3,026,870 | ||||||||||
Intersegment revenues | 196 | 84 | — | (280 | ) | — | ||||||||||||||
Total revenues | $ | 2,337,743 | $ | 659,822 | $ | 29,585 | $ | (280 | ) | $ | 3,026,870 | |||||||||
Net income | $ | 320,192 | $ | 53,883 | $ | 2,750 | $ | — | $ | 376,825 |
Three Months Ended Sept. 30 | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | 6,820 | $ | 6,487 | $ | 192 | $ | 192 | ||||||||
Interest cost | 12,639 | 13,852 | 4,191 | 4,518 | ||||||||||||
Expected return on plan assets | (17,134 | ) | (17,692 | ) | (5,476 | ) | (5,575 | ) | ||||||||
Amortization of prior service credit | (803 | ) | (801 | ) | (1,562 | ) | (1,562 | ) | ||||||||
Amortization of net loss | 7,089 | 6,692 | 961 | 483 | ||||||||||||
Net periodic benefit cost (credit) | 8,611 | 8,538 | (1,694 | ) | (1,944 | ) | ||||||||||
Credits not recognized due to the effects of regulation | 736 | 682 | — | — | ||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 9,347 | $ | 9,220 | $ | (1,694 | ) | $ | (1,944 | ) |
Nine Months Ended Sept. 30 | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | 20,460 | $ | 19,445 | $ | 576 | $ | 576 | ||||||||
Interest cost | 37,919 | 41,554 | 12,573 | 13,554 | ||||||||||||
Expected return on plan assets | (51,402 | ) | (53,076 | ) | (16,428 | ) | (16,725 | ) | ||||||||
Amortization of prior service credit | (2,409 | ) | (2,408 | ) | (4,686 | ) | (4,686 | ) | ||||||||
Amortization of net loss | 21,267 | 20,078 | 2,883 | 1,449 | ||||||||||||
Net periodic benefit cost (credit) | 25,835 | 25,593 | (5,082 | ) | (5,832 | ) | ||||||||||
Credits not recognized due to the effects of regulation | 1,898 | 1,947 | — | — | ||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 27,733 | $ | 27,540 | $ | (5,082 | ) | $ | (5,832 | ) |
Three Months Ended Sept. 30, 2017 | ||||||||||||
(Thousands of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit and Postretirement Items | Total | |||||||||
Accumulated other comprehensive loss at July 1 | $ | (22,284 | ) | $ | (218 | ) | $ | (22,502 | ) | |||
Losses reclassified from net accumulated other comprehensive loss | 257 | 1 | 258 | |||||||||
Net current period other comprehensive income | 257 | 1 | 258 | |||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (22,027 | ) | $ | (217 | ) | $ | (22,244 | ) |
Three Months Ended Sept. 30, 2016 | ||||||||||||
(Thousands of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit and Postretirement Items | Total | |||||||||
Accumulated other comprehensive loss at July 1 | $ | (23,308 | ) | $ | (217 | ) | $ | (23,525 | ) | |||
Other comprehensive loss before reclassifications | (1 | ) | — | (1 | ) | |||||||
Losses reclassified from net accumulated other comprehensive loss | 266 | — | 266 | |||||||||
Net current period other comprehensive income | 265 | — | 265 | |||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (23,043 | ) | $ | (217 | ) | $ | (23,260 | ) |
Nine Months Ended Sept. 30, 2017 | ||||||||||||
(Thousands of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit and Postretirement Items | Total | |||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (22,780 | ) | $ | (220 | ) | $ | (23,000 | ) | |||
Losses reclassified from net accumulated other comprehensive loss | 753 | 3 | 756 | |||||||||
Net current period other comprehensive income | 753 | 3 | 756 | |||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (22,027 | ) | $ | (217 | ) | $ | (22,244 | ) |
Nine Months Ended Sept. 30, 2016 | ||||||||||||
(Thousands of Dollars) | Gains and Losses on Cash Flow Hedges | Defined Benefit and Postretirement Items | Total | |||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (23,836 | ) | $ | — | $ | (23,836 | ) | ||||
Other comprehensive income (loss) before reclassifications | 1 | (219 | ) | (218 | ) | |||||||
Losses reclassified from net accumulated other comprehensive loss | 792 | 2 | 794 | |||||||||
Net current period other comprehensive loss | 793 | (217 | ) | 576 | ||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (23,043 | ) | $ | (217 | ) | $ | (23,260 | ) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2017 | Three Months Ended Sept. 30, 2016 | |||||||
Losses on cash flow hedges: | |||||||||
Interest rate derivatives | $ | 407 | (a) | $ | 407 | (a) | |||
Vehicle fuel derivatives | — | (b) | 21 | (b) | |||||
Total, pre-tax | $ | 407 | $ | 428 | |||||
Tax benefit | (150 | ) | (162 | ) | |||||
Total, net of tax | $ | 257 | $ | 266 | |||||
Defined benefit pension and postretirement losses: | |||||||||
Amortization of net loss | $ | 2 | (c) | $ | — | (c) | |||
Total, pre-tax | 2 | — | |||||||
Tax benefit | (1 | ) | — | ||||||
Total, net of tax | 1 | — | |||||||
Total amounts reclassified, net of tax | $ | 258 | $ | 266 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2017 | Nine Months Ended Sept. 30, 2016 | |||||||
Losses on cash flow hedges: | |||||||||
Interest rate derivatives | $ | 1,208 | (a) | $ | 1,211 | (a) | |||
Vehicle fuel derivatives | — | (b) | 67 | (b) | |||||
Total, pre-tax | 1,208 | 1,278 | |||||||
Tax benefit | (455 | ) | (486 | ) | |||||
Total, net of tax | $ | 753 | $ | 792 | |||||
Defined benefit pension and postretirement losses: | |||||||||
Amortization of net loss | $ | 6 | (c) | $ | — | (c) | |||
Total, pre-tax | 6 | — | |||||||
Tax benefit | (3 | ) | — | ||||||
Total, net of tax | 3 | — | |||||||
Total amounts reclassified, net of tax | $ | 756 | $ | 792 |
Three Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Regulated Electric | ||||||||
Operating revenues | $ | 880.7 | $ | 894.8 | ||||
Intersegment revenues | 0.1 | — | ||||||
Total revenue | 880.8 | 894.8 | ||||||
Net income | 204.7 | 191.7 | ||||||
Regulated Natural Gas | ||||||||
Operating revenues | $ | 153.9 | $ | 157.2 | ||||
Intersegment revenues | 0.1 | 0.3 | ||||||
Total revenue | 154.0 | 157.5 | ||||||
Net income | 0.7 | 15.1 | ||||||
All Other | ||||||||
Operating revenues (a) | $ | 9.7 | $ | 8.7 | ||||
Net (loss) income | (0.9 | ) | 0.3 | |||||
Consolidated Total | ||||||||
Operating revenues (a) | $ | 1,044.5 | $ | 1,061.0 | ||||
Reconciling eliminations | (0.2 | ) | (0.3 | ) | ||||
Total revenue | $ | 1,044.3 | $ | 1,060.7 | ||||
Net income | 204.5 | 207.1 |
(a) |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Regulated Electric | ||||||||
Operating revenues | $ | 2,314.8 | $ | 2,309.3 | ||||
Intersegment revenues | 0.3 | 0.2 | ||||||
Total revenue | 2,315.1 | 2,309.5 | ||||||
Net income | 371.9 | 373.3 | ||||||
Regulated Natural Gas | ||||||||
Operating revenues | $ | 830.7 | $ | 707.8 | ||||
Intersegment revenues | 0.2 | 0.4 | ||||||
Total revenue | 830.9 | 708.2 | ||||||
Net income | 77.5 | 89.7 | ||||||
All Other | ||||||||
Operating revenues (a) | $ | 31.8 | $ | 28.7 | ||||
Net (loss) income | (4.6 | ) | 0.1 | |||||
Consolidated Total | ||||||||
Operating revenues (a) | $ | 3,177.8 | $ | 3,046.4 | ||||
Reconciling eliminations | (0.5 | ) | (0.6 | ) | ||||
Total revenue | $ | 3,177.3 | $ | 3,045.8 | ||||
Net income | 444.8 | 463.1 |
Nine Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Millions of Dollars) | 2017 | 2016 | 2019 | 2018 | ||||||||||||
Electric revenues | $ | 2,319 | $ | 2,338 | $ | 2,314.8 | $ | 2,309.3 | ||||||||
Electric fuel and purchased power | (857 | ) | (891 | ) | (829.5 | ) | (841.7 | ) | ||||||||
Electric margin | $ | 1,462 | $ | 1,447 | $ | 1,485.3 | $ | 1,467.6 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Fuel and purchased power cost recovery | $ | (33 | ) | |
Non-fuel riders | 5 | |||
Trading | 4 | |||
Earnings test | 2 | |||
Other, net | 3 | |||
Total decrease in electric revenues | $ | (19 | ) |
(Millions of Dollars) | 2017 vs. 2016 | 2019 vs. 2018 | ||||||
Non-fuel riders | $ | 5 | $ | 50.2 | ||||
Trading | 3 | |||||||
Earnings test | 2 | |||||||
Finance leases (offset in interest expense and amortization) | 16.4 | |||||||
Timing of tax reform regulatory decisions (offset in income tax and amortization) | (19.7 | ) | ||||||
Conservation and DSM riders (offset in expense) | (3.8 | ) | ||||||
Estimated impact of weather | (2.6 | ) | ||||||
Wholesale transmission revenue (net) | (2.4 | ) | ||||||
Sales decline | (1.9 | ) | ||||||
Other, net | 5 | (18.5 | ) | |||||
Total increase in electric margin | $ | 15 | $ | 17.7 |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Natural gas revenues | $ | 830.7 | $ | 707.8 | ||||
Cost of natural gas sold and transported | (376.7 | ) | (282.1 | ) | ||||
Natural gas margin | $ | 454.0 | $ | 425.7 |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2017 | 2016 | ||||||
Natural gas revenues | $ | 691 | $ | 660 | ||||
Cost of natural gas sold and transported | (304 | ) | (270 | ) | ||||
Natural gas margin | $ | 387 | $ | 390 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Purchased natural gas adjustment clause recovery | $ | 33 | ||
Infrastructure and integrity rider | 9 | |||
Retail rate decrease | (5 | ) | ||
Estimated impact of weather | (4 | ) | ||
Other, net | (2 | ) | ||
Total increase in natural gas revenues | $ | 31 |
(Millions of Dollars) | 2017 vs. 2016 | 2019 vs. 2018 | ||||||
Retail rate decrease | $ | (5 | ) | |||||
Estimated impact of weather | (4 | ) | $ | 8.5 | ||||
Infrastructure and integrity rider | 9 | |||||||
Infrastructure and integrity riders | 8.5 | |||||||
Transport sales | 4.6 | |||||||
Retail sales growth (excluding weather impact) | 4.4 | |||||||
Retail rate increase | 3.5 | |||||||
Other, net | (3 | ) | (1.2 | ) | ||||
Total decrease in natural gas margin | $ | (3 | ) | |||||
Total increase in natural gas margin | $ | 28.3 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Plant generation costs | $ | (13.1 | ) | |
Electric distribution costs | (8.0 | ) | ||
Transmission costs | (3.1 | ) | ||
Employee benefits expense | 3.2 | |||
Other, net | (1.9 | ) | ||
Total decrease in O&M expenses | $ | (22.9 | ) |
(Millions of Dollars) | Filed base revenue request | Less: Previously authorized costs (existing riders) (b) | Filed net change to revenue | |||||||||
PSCo | $ | 407.7 | $ | 249.4 | $ | 158.3 | ||||||
CPUC Staff (a) | 234.6 | 226.9 | 7.7 | |||||||||
FEA | 245.8 | 238.9 | 6.9 | |||||||||
OCC (a) | 207.4 | 216.3 | (8.9 | ) | ||||||||
CEC (a) | 186.9 | 213.0 | (26.1 | ) |
(a) | Staff, OCC and CEC have incorporated corrections to the filed case of ($4.3) million identified by PSCo. |
(b) | Amounts derived from intervenors’ positions attributable to previously authorized costs (existing riders), impacted by proposed differences in weighted average cost of capital. |
Position | Staff | FEA | OCC | CEC | |||||||||
ROE | 9.00 | % | 9.20 | % | 8.80 | % | 8.90 | % | |||||
Equity | 55.57 | % | 56.11 | % | 54.60 | % | 54.27 | % | |||||
Test Year | 2019 Current | (a) | 2018 Historic | (b) | 2018 Historic | (c) | 2018 Historic | (d) |
(a) | Incorporated 13-month average of proposed forecasted plant additions and rejected adjustments for wildfire mitigation improvements. |
(b) | Incorporated year-end rate base and rejected proposed forecasted plant additions. Except for the transmission portion, the FEA supported portions of wildfire mitigation improvements and included 2019 distribution capital and O&M in its cost of service amount. |
(c) | Incorporated proposed 13-month average rate base while rejecting the proposed forecasted plant additions including amounts requested for AGIS and wildfire mitigation improvements. |
(d) | Rejected proposed forecasted plant additions and the majority of the adjustment for wildfire mitigation improvements. |
Mechanism | Utility Service | Amount Requested (in millions) | Filing Date | Approval | Additional Information | |||||
CPUC | ||||||||||
Rate Case | Steam | $7 | May 2019 | Received | In May 2019, PSCo filed an unopposed Settlement Agreement with CPUC Staff and the City of Denver. The settlement reflects a ROE of 9.67% for AFUDC purposes, an equity ratio of 56.04% and utilization of tax reform benefits. The CPUC approved the Settlement Agreement without modification on Sept. 5, 2019. The first stepped increase went into effect Oct. 1, 2019, with full rates effective Oct. 1, 2020. | |||||
Rate Case Appeal | Natural Gas | N/A | April 2019 | Pending | In April 2019, PSCo filed an appeal seeking judicial review of the CPUC’s prior ruling regarding PSCo’s last natural gas rate case (approved in December 2018). Appeal requests review of the following: denial of a return on the prepaid pension and retiree medical assets; the use of a capital structure that is not based on the actual historical test year level; and the use of an average rate base methodology rather than a year-end rate base methodology. The District Court of Denver County has adopted a briefing schedule that will conclude in October 2019. Timeline on a final ruling is unknown. |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference |
3.01* | PSCo Form 10-Q for the quarter ended Sept. 30, 2017 | 001-03280 | 3.01 | |
3.02* | PSCo Form | 001-03280 | 3.02 | |
PSCo Form | 001-3280 | 4.01 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.CAL | XBRL Calculation | |||
101.DEF | XBRL Definition | |||
101.LAB | XBRL Label | |||
101.PRE | XBRL Presentation | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in |
Public Service Company of Colorado | ||
Oct. | By: | /s/ JEFFREY S. SAVAGE |
Jeffrey S. Savage | ||
Senior Vice President, Controller | ||
(Principal Accounting Officer) | ||
/s/ ROBERT C. FRENZEL | ||
Robert C. Frenzel | ||
Executive Vice President, Chief Financial Officer and Director | ||
(Principal Financial Officer) |