Xcel Energy 2020 Year End Earnings Report

  • 2020 earnings per share were $2.79 compared with $2.64 per share in 2019.
  • Xcel Energy reaffirms 2021 EPS earnings guidance of $2.90 to $3.00 per share.

MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy Inc. (NASDAQ: XEL) today reported 2020 GAAP and ongoing earnings of $1.47 billion, or $2.79 per share, compared with $1.37 billion, or $2.64 per share in the same period in 2019.

Xcel Energy had a strong year despite the challenges brought on by COVID-19,” said Ben Fowke, chairman and CEO. “We achieved major milestones while keeping our employees and customers safe and are well positioned for the coming year and beyond.”

I’m proud of the support we provided our communities, committing nearly $20 million to short and long-term corporate giving. Our $750 million plan to repower several wind farms in Minnesota was approved, which is expected to result in substantial customer savings and jobs creation. In Colorado, we received approval for an electric vehicle plan and are excited about the related opportunities. We also announced the early retirement of the Hayden and Craig coal plants and plans to convert our Harrington facility to natural gas. These achievements move us closer to achieving our goals of an 80% carbon reduction by 2030 and delivering 100% carbon-free electricity by 2050.”

At 9:00 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) 394-8218

International Dial-In:

(400) 120-8590

Conference ID:

6174235

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 Relations. If you are unable to participate in the live event, the call will be available for replay from 12:00 p.m. CDT on Jan. 28 through 12:00 p.m. CDT on Jan. 31.

Replay Numbers

 

US Dial-In:

(888) 203-1112

International Dial-In:

(719) 457-0820

Access Code:

6174235

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2021 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future bad debt expense, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, and expectations regarding regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety, including our nuclear generation facilities; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs, changes in regulation and subsidiaries’ ability to recover costs from customers; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

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 millions, except per share data)

 

 

 

Three Months Ended Dec. 31

 

Twelve Months Ended Dec. 31

 

 

2020

 

2019

 

2020

 

2019

Operating revenues

 

 

 

 

 

 

 

 

Electric

 

$

2,372

 

 

$

2,231

 

 

$

9,802

 

 

$

9,575

 

Natural gas

 

554

 

 

544

 

 

1,636

 

 

1,868

 

Other

 

21

 

 

23

 

 

88

 

 

86

 

Total operating revenues

 

2,947

 

 

2,798

 

 

11,526

 

 

11,529

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Electric fuel and purchased power

 

901

 

 

830

 

 

3,512

 

 

3,510

 

Cost of natural gas sold and transported

 

264

 

 

272

 

 

689

 

 

918

 

Cost of sales — other

 

9

 

 

12

 

 

37

 

 

40

 

Operating and maintenance expenses

 

616

 

 

574

 

 

2,324

 

 

2,338

 

Conservation and demand side management expenses

 

73

 

 

73

 

 

288

 

 

285

 

Depreciation and amortization

 

499

 

 

446

 

 

1,948

 

 

1,765

 

Taxes (other than income taxes)

 

159

 

 

141

 

 

612

 

 

569

 

Total operating expenses

 

2,521

 

 

2,348

 

 

9,410

 

 

9,425

 

 

 

 

 

 

 

 

 

 

Operating income

 

426

 

 

450

 

 

2,116

 

 

2,104

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

 

2

 

 

(6

)

 

16

 

Equity earnings of unconsolidated subsidiaries

 

11

 

 

10

 

 

40

 

 

39

 

Allowance for funds used during construction — equity

 

24

 

 

22

 

 

115

 

 

77

 

 

 

 

 

 

 

 

 

 

Interest charges and financing costs

 

 

 

 

 

 

 

 

Interest charges — includes other financing costs of $7, $7, $28 and $26, respectively

 

212

 

 

195

 

 

840

 

 

773

 

Allowance for funds used during construction — debt

 

(9

)

 

(10

)

 

(42

)

 

(37

)

Total interest charges and financing costs

 

203

 

 

185

 

 

798

 

 

736

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

258

 

 

299

 

 

1,467

 

 

1,500

 

Income tax (benefit) expense

 

(30

)

 

7

 

 

(6

)

 

128

 

Net income

 

$

288

 

 

$

292

 

 

$

1,473

 

 

$

1,372

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

530

 

525

 

527

 

519

Diluted

 

532

 

526

 

528

 

520

 

 

 

 

 

 

 

 

 

Earnings per average common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.54

 

 

$

0.56

 

 

$

2.79

 

 

$

2.64

 

Diluted

 

0.54

 

 

0.56

 

 

2.79

 

 

2.64

 

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.

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with generally accepted accounting principles (GAAP), as well as certain non-GAAP financial measures such as ongoing return on equity (ROE), electric margin, natural gas margin, ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are adjusted from measures calculated and presented in accordance with GAAP. Xcel Energy’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation, and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Ongoing ROE

Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity.

Electric and Natural Gas Margins

Electric margin is presented as electric revenues less electric fuel and purchased power expenses. Natural gas margin is presented as natural gas revenues less the cost of natural gas sold and transported. Expenses incurred for electric fuel and purchased power and the cost of natural gas are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues. Management believes electric and natural gas margins provide the most meaningful basis for evaluating our operations because they exclude the revenue impact of fluctuations in these expenses. These margins can be reconciled to operating income, a GAAP measure, by including other operating revenues, cost of sales – other, operating and maintenance (O&M) expenses, conservation and demand side management (DSM) expenses, depreciation and amortization and taxes (other than income taxes).

Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS)

GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.’s diluted EPS is calculated using the treasury stock method. Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items. Ongoing diluted EPS is calculated by dividing the net income or loss of each subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss of such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period.

We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. For the three and twelve months ended Dec. 31, 2020 and 2019, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings for these periods.

Note 1. Earnings Per Share Summary

Xcel Energy’s 2020 earnings were $2.79 per share compared to $2.64 per share in 2019, primarily reflecting higher electric margin (largely due to regulatory outcomes which recover capital investment), higher allowance for funds used during construction (AFUDC) and lower O&M expenses, which offset increased depreciation, interest expense and declining sales primarily due to the impacts of COVID-19.

Summarized diluted EPS for Xcel Energy:

 

 

Three Months Ended Dec. 31

 

Twelve Months Ended Dec. 31

Diluted Earnings (Loss) Per Share

 

2020

 

2019

 

2020

 

2019

NSP-Minnesota

 

$

0.23

 

 

$

0.24

 

 

$

1.12

 

 

$

1.04

 

PSCo

 

0.25

 

 

0.25

 

 

1.11

 

 

1.11

 

SPS

 

0.10

 

 

0.09

 

 

0.56

 

 

0.51

 

NSP-Wisconsin

 

0.04

 

 

0.03

 

 

0.20

 

 

0.15

 

Equity earnings of unconsolidated subsidiaries

 

0.01

 

 

0.01

 

 

0.05

 

 

0.05

 

Regulated utility (a)

 

0.63

 

 

0.62

 

 

3.04

 

 

2.86

 

Xcel Energy Inc. and Other

 

(0.09

)

 

(0.07

)

 

(0.25

)

 

(0.22

)

Total (a)

 

$

0.54

 

 

$

0.56

 

 

$

2.79

 

 

$

2.64

 

(a) Amounts may not add due to rounding.

NSP-Minnesota — Earnings increased $0.08 per share for 2020, reflecting higher electric margin (riders, wholesale transmission revenue and a sales true-up mechanism, which recovers lower sales due to COVID-19) and lower O&M expenses, partially offset by increased depreciation and lower natural gas margin.

PSCo — Earnings were flat for 2020, reflecting higher electric margin (wholesale transmission revenue and regulatory outcomes offset lower sales due to COVID-19), increased AFUDC and higher natural gas margin, offset by additional depreciation and taxes (other than income taxes).

SPS — Earnings increased $0.05 per share for 2020, reflecting higher electric margin (wholesale transmission revenue and regulatory outcomes offset lower sales due to COVID-19) and lower O&M expenses, partially offset by increased depreciation, interest expense and taxes (other than income taxes).

NSP-Wisconsin — Earnings increased $0.05 per share for 2020, reflecting higher electric margin (regulatory outcomes offset lower sales due to COVID-19) and lower O&M expenses, partially offset by increased depreciation and lower natural gas margin.

Xcel Energy Inc. and Other — Primarily includes financing costs at the holding company.

Components significantly contributing to changes in 2020 EPS compared with 2019:

Diluted Earnings (Loss) Per Share

 

Three Months

Ended Dec. 31

 

Twelve Months

Ended Dec. 31

GAAP and ongoing diluted EPS – 2019

 

$

0.56

 

 

$

2.64

 

 

 

 

 

 

Components of change — 2020 vs. 2019

 

 

 

 

Higher electric margins (a)

 

0.10

 

 

0.32

 

Lower ETR (b)

 

0.05

 

 

0.22

 

Higher AFUDC

 

 

 

0.08

 

Changes in O&M

 

(0.06

)

 

0.02

 

Higher depreciation and amortization

 

(0.07

)

 

(0.26

)

Higher interest

 

(0.02

)

 

(0.10

)

Higher taxes (other than income taxes)

 

(0.03

)

 

(0.06

)

Changes in natural gas margins

 

0.03

 

 

(0.01

)

Other (net)

 

(0.02

)

 

(0.06

)

GAAP and ongoing diluted EPS — 2020

 

$

0.54

 

 

$

2.79

 

(a) Change in electric margin was negatively impacted by reductions in sales and demand due to COVID-19 and is detailed below. Sales decline excludes weather impact, net of decoupling/sales true-up and reduction in demand revenue is net of sales true-up.

Diluted Earnings (Loss) Per Share

 

Three Months

Ended Dec. 31

 

Twelve Months

Ended Dec. 31

Electric margin (excluding reductions in sales and demand)

 

$

0.11

 

 

$

0.41

 

Reductions in sales and demand

 

(0.01

)

 

(0.09

)

Higher electric margins

 

$

0.10

 

 

$

0.32

 

(b) Includes production tax credits (PTCs) and tax reform regulatory amounts, which are primarily offset in electric margin.

ROE for Xcel Energy and its utility subsidiaries:

2020

 

NSP-Minnesota

 

PSCo

 

SPS

 

NSP-Wisconsin

 

Operating Companies

 

Xcel Energy

GAAP and ongoing ROE

 

9.20

%

 

8.06

%

 

9.54

%

 

10.52

%

 

8.87

%

 

10.59

%

 

2019

 

NSP-Minnesota

 

PSCo

 

SPS

 

NSP-Wisconsin

 

Operating Companies

 

Xcel Energy

GAAP and ongoing ROE

 

9.31

%

 

8.69

%

 

9.71

%

 

8.27

%

 

9.06

%

 

10.78

%

 

Note 2. Regulated Utility Results

Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance to the extent there is not a decoupling or sales true-up mechanism in the state.

Degree-day or Temperature-Humidity Index (THI) data is used to estimate amounts of energy required to maintain comfortable indoor temperature levels based on each day’s average temperature and humidity. Heating degree-days (HDD) is the measure of the variation in the weather based on the extent to which the average daily temperature falls below 65° Fahrenheit. Cooling degree-days (CDD) is the measure of the variation in the weather based on the extent to which the average daily temperature rises above 65° Fahrenheit. Each degree of temperature above 65° Fahrenheit is counted as one CDD, and each degree of temperature below 65° Fahrenheit is counted as one HDD. In Xcel Energy’s more humid service territories, a THI is used in place of CDD, which adds a humidity factor to CDD. HDD, CDD and THI are most likely to impact the usage of Xcel Energy’s residential and commercial customers. Industrial customers are less sensitive to weather.

Normal weather conditions are defined as either the 10, 20 or 30-year average of actual historical weather conditions. The historical period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact of weather on demand, a demand factor is applied to the weather impact on sales. Extreme weather variations, windchill and cloud cover may not be reflected in weather-normalized estimates.

Percentage (decrease) increase in normal and actual HDD, CDD and THI:

 

Three Months Ended Dec. 31

 

Twelve Months Ended Dec. 31

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

HDD

(3.6)%

 

9.9%

 

(12.1)%

 

(3.1

)%

 

10.4

%

 

(12.0

)%

CDD

n/a

 

n/a

 

n/a

 

22.2

 

 

5.4

 

 

24.8

 

THI

n/a

 

n/a

 

n/a

 

6.3

 

 

(8.8

)

 

18.2

 

 

Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions:

 

Three Months Ended Dec. 31

 

Twelve Months Ended Dec. 31

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

Retail electric

$

(0.005

)

 

$

0.005

 

 

$

(0.010

)

 

$

0.090

 

 

$

0.040

 

 

$

0.050

 

Decoupling and sales true-up

0.003

 

 

(0.001

)

 

0.004

 

 

(0.041

)

 

 

 

(0.041

)

Total (excluding decoupling)

$

(0.002

)

 

$

0.004

 

 

$

(0.006

)

 

$

0.049

 

 

$

0.040

 

 

$

0.009

 

Firm natural gas

(0.006

)

 

0.007

 

 

(0.013

)

 

(0.011

)

 

0.027

 

 

(0.038

)

Total (adjusted for recovery from decoupling)

$

(0.008

)

 

$

0.011

 

 

$

(0.019

)

 

$

0.038

 

 

$

0.067

 

 

$

(0.029

)

Sales — Sales growth (decline) for actual and weather-normalized sales in 2020 compared to 2019:

 

 

Three Months Ended Dec. 31

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Actual (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

2.4

%

 

3.1

%

 

(0.9

)%

 

1.0

%

 

2.1

%

Electric C&I

 

(4.0

)

 

(6.0

)

 

(3.1

)

 

(1.7

)

 

(4.3

)

Total retail electric sales

 

(2.2

)

 

(3.3

)

 

(2.7

)

 

(0.9

)

 

(2.6

)

Firm natural gas sales

 

(5.9

)

 

(6.2

)

 

n/a

 

1.1

 

 

(5.6

)

 

 

Three Months Ended Dec. 31

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Weather-normalized (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

4.7

%

 

4.7

%

 

0.2

%

 

2.3

%

 

3.9

%

Electric C&I

 

(3.8

)

 

(5.7

)

 

(3.1

)

 

(1.4

)

 

(4.1

)

Total retail electric sales

 

(1.4

)

 

(2.6

)

 

(2.6

)

 

(0.3

)

 

(2.0

)

Firm natural gas sales

 

5.0

 

 

1.4

 

 

n/a

 

8.1

 

 

4.1

 

 

Twelve Months Ended Dec. 31

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Actual (a)

 

 

Electric residential

5.8

%

5.0

%

3.6

%

2.4

%

4.9

%

Electric C&I

(4.1

)

(7.0

)

(3.3

)

(4.6

)

(5.0

)

Total retail electric sales

(1.1

)

(3.4

)

(2.2

)

(2.6

)

(2.3

)

Firm natural gas sales

(6.8

)

(8.3

)

n/a

(6.4

)

(7.2

)

 

Twelve Months Ended Dec. 31

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Weather-normalized (a)

 

 

 

 

Electric residential

3.8

%

3.7

%

1.6

%

2.6

%

3.3

%

Electric C&I

(4.5

)

(7.0

)

(3.4

)

(4.8

)

(5.2

)

Total retail electric sales

(1.9

)

(3.8

)

(2.6

)

(2.7

)

(2.8

)

Firm natural gas sales

0.5

 

1.9

 

n/a

 

5.1

 

1.3

 

 

Twelve Months Ended Dec. 31 (Leap Year Adjusted)

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Weather-normalized (a)

 

 

 

 

Electric residential

3.6

%

3.4

%

1.3

%

2.3

%

3.1

%

Electric C&I

(4.8

)

(7.3

)

(3.7

)

(5.0

)

(5.4

)

Total retail electric sales

(2.2

)

(4.1

)

(2.9

)

(2.9

)

(3.1

)

Firm natural gas sales

0.1

 

1.4

 

n/a

 

4.6

 

0.7

 

(a) Higher residential sales and lower commercial and industrial (C&I) sales were primarily attributable to COVID-19. The increase in residential sales was partially driven by more customers working from home.

Weather-normalized and leap-year adjusted electric sales growth (decline) — year-to-date (excluding leap day)

  • PSCo — Residential sales rose based on an increased number of customers and higher use per customer. The decline in C&I sales was primarily due to COVID-19, particularly within the manufacturing and service industries, partially offset by an increase in the energy sector.
  • NSP-Minnesota — Residential sales rose based on an increased number of customers and higher use per customer. The decline in C&I sales was primarily due to COVID-19, particularly within the energy, manufacturing and services sectors.
  • SPS — Residential sales rose based on an increased number of customers and higher use per customer. The decline in C&I sales was primarily due to COVID-19, particularly within the energy and manufacturing sectors.
  • NSP-Wisconsin — Residential sales rose based on an increased number of customers and higher use per customer. The decline in C&I sales was primarily due to COVID-19, particularly within the energy and manufacturing sectors.

Weather-normalized and leap-year adjusted natural gas sales growth (decline) — year-to-date (excluding leap day)

  • Higher natural gas sales reflect an increase in the number of customers combined with higher residential customer use, partially offset by lower C&I customer use.

Electric Margin — Electric revenues and fuel and purchased power expenses are impacted by fluctuations in the price of natural gas, coal and uranium. However, these fluctuations have minimal impact on margin due to fuel recovery mechanisms. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and margin (offset by lower tax expense).

Electric revenues and margin:

 

 

Three Months Ended Dec. 31

 

Twelve Months Ended Dec. 31

(Millions of Dollars)

 

2020

 

2019

 

2020

 

2019

Electric revenues

 

$

2,372

 

 

$

2,231

 

 

$

9,802

 

 

$

9,575

 

Electric fuel and purchased power

 

(901

)

 

(830

)

 

(3,512

)

 

(3,510

)

Electric margin

 

$

1,471

 

 

$

1,401

 

 

$

6,290

 

 

$

6,065

 

Change in electric margin:

(Millions of Dollars)

 

Three Months

Ended Dec. 31,

2020 vs. 2019

 

Twelve Months

Ended Dec. 31,

2020 vs. 2019

Regulatory rate outcomes (Colorado, Wisconsin, Texas and New Mexico) (a)

 

$

52

 

 

$

209

 

Non-fuel riders

 

31

 

 

74

 

Wholesale transmission revenue (net)

 

24

 

 

59

 

MEC purchased capacity costs

 

 

 

35

 

Conservation incentive

 

12

 

 

13

 

2019 tax reform customer credits – Wisconsin (offset in income tax)

 

10

 

 

7

 

Estimated impact of weather (net of decoupling / sales true-up)

 

(5

)

 

7

 

PTCs flowed back to customers (offset by lower ETR)

 

(38

)

 

(119

)

Sales and demand (b)

 

(10

)

 

(66

)

Other (net)

 

(6

)

 

6

 

Total increase in electric margin

 

$

70

 

 

$

225

 

(a) Includes approximately $70 million of revenue and margin due to the Texas rate case outcome, which is largely offset by recognition of previously deferred costs.

(b) Sales excludes weather impact, net of decoupling/sales true-up, and demand revenue is net of sales true-up.

Natural Gas Margin — Natural gas expense varies with changing sales and cost of natural gas. However, fluctuations in the cost of natural gas has minimal impact on margin due to cost recovery mechanisms.

Natural gas revenues and margin:

 

 

Three Months Ended Dec. 31

 

Twelve Months Ended Dec. 31

(Millions of Dollars)

 

2020

 

2019

 

2020

 

2019

Natural gas revenues

 

$

554

 

 

$

544

 

 

$

1,636

 

 

$

1,868

 

Cost of natural gas sold and transported

 

(264

)

 

(272

)

 

(689

)

 

(918

)

Natural gas margin

 

$

290

 

 

$

272

 

 

$

947

 

 

$

950

 

Change in natural gas margin:

(Millions of Dollars)

 

Three Months

Ended Dec. 31,

2020 vs. 2019

 

Twelve Months

Ended Dec. 31,

2020 vs. 2019

Estimated impact of weather

 

$

(9

)

 

$

(28

)

Regulatory rate outcomes (Colorado and Wisconsin)

 

18

 

 

16

 

Infrastructure and integrity riders

 

2

 

 

8

 

Retail sales growth

 

4

 

 

2

 

Other (net)

 

3

 

 

(1

)

Total increase (decrease) in natural gas margin

 

$

18

 

$

(3

)

Contacts

Paul Johnson, Vice President, Investor Relations, (612) 215-4535

For news media inquiries only, please call Xcel Energy Media Relations, (612) 215-5300

Xcel Energy website address: www.xcelenergy.com

Read full story here

Leave a Reply

Laurel McBride real estate agent with Century 21 N and N Realtors with homes for sale in Logan Utah