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LNflEl SiATFS SECR1TIES Excf1\E OMMLSS1ON AND D.C 20539 ashington FORM 10-K Mark One YcAI ITI RFPORT PURSE S1 TION \NT TO lor OR 15d OFIiH 13 the tiscal ended year lXCHANCF URITIES SEt ACT OF 1934 3K 2012 ecenther or FR\SF1 RIOR ION PURSEANT SECTION To OR 15d OF THE SEfl 13 ominisskm RITIFS ACT OF EXCIIANGF 1.934 Number 13934 lile Xcel Energy IflC none .\act of egisirnit specified as in charter its linnesola or other Stat5 of iursdkton 410448030 or incorporation I.R.S t1.anufatio 414 \ddrcss Renisirints Sceuiitie recistered S2 nimnon Stock S7Mfl Jun or sec1iritics Sub \IN iitirk Indicate cheek mark Indicate cli.ck mark stibiect d3 durmil such to inoiuihs indicate fterlrcc cot Indicate Set ti See couipuw \s it the teustrant lot the loon this ss of filet tiK hetlier of ar late puuant ui the Tori iii ti IP Rule 13 uc led alt 55 bs on which exchange of Sdt section ired tile of registered such of No Yes Act the hd or to Act Seem-ilks the eetion reuu us cc ci rated it Ci it the No Yes I.sh 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sloe \ietini ol 5it pat __ Tl BY ORPOR 52 Shareholder RlI lu ERENl ni.oipt ted bs reference uliti fun III th.s thu It PART Item Business AND DEFINITION OF ABBREVIATIONS Xcel Energy Inc.s Affiliates current Subsidiaries and Cheyenne Cheyenne Colorado Eloigne Eloigne NCE New NMC Nuclear The electric Northern PSCo Public PSRI P.S.R Investments SPS Southwestern States Service WYCO Xcel Xcel Energy and State Co Service NSP-Wisconsin Inc PSCo and SPS Inc LLC Development and its subsidiaries Regulatory Agencies ASLB CFTC CPUC Atomic Safety and Licensing Board Commodity Futures Trading Commission Colorado Public Commission Utilities DOE United States Department of Energy DOI United States Department of DOT United States Department of Transportation EIB New Mexico EPA FERC United Environmental Federal Energy MPCA Minnesota MPSC Michigan MPUC Minnesota NDPSC North Dakota NERC North American NMPRC New Mexico NRC Nuclear PSCW Public Service PUCT Public SDPUC South SEC Securities WDNR Wisconsin Resource CIP DCRF DRC DSM DSMCA Purchased Adjustment Revenue Board Agency Service Pollution Public Protection Commission Regulatory Internal Interior Improvement Environmental States IRS Electric the Control Agency Commission Service Public Commission Utilities Electric Public Regulatory Commission Service Public Reliability Corporation Commission Regulation Commission Commission of Wisconsin Commission of Texas Utility Dakota Public and Utilities Department Commission Commission Exchange of Natural Resources Gas and Clauses Conservation Distribution improvement cost recovery Deferred renewable Demand side management Demand side management ECA Retail EE Energy electric cost program factor rider cost adjustment commodity adjustment efficiency system corporation Inc Public InterState Energy corporation transmission of Colorado Company NSP-Minnesota WestGas Minnesota and production managed by NSP-Minnesota Power Company Wisconsin NSP-Wisconsin WYCO Inc Company LLC Power Company States integrated NSPWisconsin WGI Company Company Energies Management Northern subsidiaries Gas Company NSP System Power Fuel and Light Interstate Century NSP-Minnesota Federal TERMS and former CIG Utility INDUSTRY of NSP-Minnesota and EECRF Energy EIR Environmental improvement environmental improvements cost efficiency EPU FCA Extended FPPCAC Fuel and GAP Gas affordability GCA Gas cost OArr PCCA Open access transmission Purchased PCRF Power PGA Purchased PSIA Pipeline Fuel QSP RDF RES power clause factor recovery rider to recovers fossil associated with investments in plants uprate power cost clause adjustment program adjustment cost capacity cost tariff adjustment factor recovery the recovers of costs certain purchased power costs gas adjustment system of integrity service adjustment plan Renewable development Renewable energy standard recovers RESA SCA Renewable energy standard adjustment Steam adjustment SEP State TCA Transmission cost adjustment TCR Transmission cost recovery TCRF Transmission cost recovery Other costs generation adjustment purchased Quality and the fuel cost energy fund the costs of new renewable generation policy wholesale in changes adjustment factor transmission recovers transmission infrastructure improvement charges Terms and Abbreviations AFUDC Allowance AU APBO ARC Administrative Accumulated Asset ASU FASB BART CAA Best retirement available Standards retrofit Air Act Clean Air Clean Clean Air CapX2O2O Alliance of Update technology Rule electric CCN Certificate CO2 Carbon COLI Corporate CON Certificate of need Certificate of cooperatives in of convenience and and municipals transmission joint line investor-owned planning and necessity dioxide owned convenience public Cross-State Air insurance life Pollution CWIP Construction EEl Edison EGU Electric EPS Earnings per share Effective tax rate Financial Accounting Financial transmission work Electric in Generally accepted IFRS International progress Standards Board right accounting principles gas Low-level Liquefied necessity unit generating Greenhouse and Rule Institute GAAP GHG LLW LNG MACT MGP obligation Jobs Act Interstate Midwest involved FTR benefit obligation Accounting Clean ETR FASB during construction customers retail CACJA CAIR CPCN CSAPR used law judge postretirement of Aggregator ARO funds for Financial radioactive natural Maximum Standards gas achievable Manufactured Reporting waste gas MISO Midwest Independent Moodys Moodys MVP Multi-value Investor project control technology plant Transmission Services System Operator Inc utilities construction in the effort upper costs Native load demand Customer serve under NEI Nuclear NOL Net NOx Notice Notifications OM of violation to and Operating construct maintenance OCI Other Performance-based Polychiorinated Private PJM PJM PM Particulate Purchased Provident Performance Production PURPA Public PV Photovoltajc Qualifying Return Renewable RSG Revenue RSU Restricted credit equity standards portfolio guarantee sufficiency stock unit catalytic Sulfur Policy Act proposal Transmission State Organization reduction implementation plan dioxide Southwest TSR Regulatory Selective SO2 Poors plan Regional SIP SPP on Power Pool Inc Poors Ratings Services Standard Total shareholder return Measurements Billion cubic Gigawatt feet hours Kilovolts Kilowatt Mcf Thousand MMBtu Million MW Megawatts hours cubic British Megawatt hours Company credit energy for ROE Insurance party facilities Renewable RTO SCR share tax Utilities RPS Accident responsible PTC Request LLC power agreement Life PSP RFP LLC matter Potentially QF REC biphenyl Fuel Storage Provident plan regulatory Interconnection PPA PRP income comprehensive PFS MWh customers contract loss PBRP PCB GWh KV KWh wholesale Nitrogen oxide NTC Bcf and long-term Institute Energy operating NOV Standard of retail statute or feet thermal units of 1978 that utility has an obligation to COMPANY OVERVIEW Xcel Inc Energy in eight amendments was materials 20549 those to Xcel that The The SEC issuers that reports after and rate earn mechanisms operations Environmental clean for expectations on our at at on Xcel 13a Section with filed or furnished of offices by located available reports on 414 at of free Form 8-K and Act of 1934 as all soon The public may read and copy SEC the calling 1-800-SEC-0330 at and other information statements any Washington D.C N.E Street Room proxy and information reports SEC 100 are makes Exchange Securities the at Public Reference the the to Room of in portions WYCO joint WGI an interstate and facilities executive Energys of customers operations utility 15d or Public Reference operation core objectives three investments and state core is 1909 in gas customers regarding http//www.sec.gov utility with leadership energy the contains SEC the to SECs at the and compression regulated Inc.s Energy natural Along with is electronically on that site focuses strategy fair return adjustment are SEC the storage and serve and Wisconsin Xcel Energy www.xcelenergy.com on Form 10-Q current quarterly reports address Form 10-K on Texas Xcel 2012 In electric serve Dakota continuing of Minnesota website Its information with the that PSCo and SPS and NSP-Wisconsin South business utility subsidiaries utility gas pipelines comprise laws the reports electronically natural in the primarily owned Dakota furnished pursuant with internet Energys corporate automatic the files obtain may lease report or maintains an file businesses annual filed North companies Minn 55401 Energy public also and engaged wholly NSP-Minnesota are under incorporated practicable four New Mexico these its subsidiaries of activity develop website its reasonably Xcel to company Mall Minneapolis charge through as CIG with Inc Energy Nicollet the Minnesota pipeline gas with company subsidiaries utility Michigan formed venture Xcel These states Colorado natural holding is operations included continuing federal for priority competitive while price Energy invest and to regulators Xcel stakeholder alignment files obtain Xcel return on designed to earn and Energy is rate cases periodic our in investments its meet regulated utility formula establishes and recover and customer rates costs or of maker policy shareholder value creating NSP-Minnesota NSF-Minnesota in electricity is approximately to service utility to 2012 diversified in the percent electric sales Such owns Corporation of and coal include direct following owns NMC as in the 35 and two inactive also and industrial to industries 45 percent System and real of Xcel customers industrial and estate Land and and Minnesota of comprised electric sales many customers include industrial customers educational services Generally by NSP-Minnesota for the of sharing of NSP-Minnesota Power are all related Company NSP-Wisconsin generation and to which nuclear its holds NSP income net and gas electric customers in operations consolidated Energys shared are provides obligations United derived from natural sells provides million 0.5 approximately For small commercial products companies to retail commercial large food electric and distributes transports were of sale by NSP-Minnesota comprised Dakota NSP-Minnesota North service utility gas and distribution transmission served purchases operating revenues and potential subsidiaries an natural NSP entire the purchase customers Minnesota following percent the between current and electric well as of costs in gas NSP-Minnesotas customers Agreement NSP-Minnesota natural commercial approximately costs the 2012 retail large portion transmission which in customeis million include contribute Interchange NSP-Minnesota Nuclear 1.4 petroleum retail NSP System sold generation Dakota The wholesale South customer-owned NSP-Minnesotas production and electric FERC-approved KWh total significant earnings and NSP-Minnesotas of industries following the its approximately Although Minnesotas of of Dakota transports in the primarily engaged utility North industries significant The and 89 Approximately during operating percent customers retail an Minnesota real transmission and estate costs facilities generating NSF company NSP-Wisconsin NSP-Wisconsin is an operating portions of northwestern served by NSP-Wisconsin distributes transports territory from are small and 10 in operations comprised sales 108000 include of dining percent Wisconsin many customers commercial customers and in the industrial establishments and of Xcel Energys western to retail gas electric 2012 percent of and customers educational consolidated 98 to services total paper sold and electric of allied retail large products commercial and large earnings gas electricity also natural gas purchases operating revenues electric and well in the contribute as oil were retail industrial and following service service utility industrial gas in customers same in the commercial as products include customers NSP-Wisconsins and electric retail food NSP-Wisconsin natural customers of sale The wholesale Michigan in.2012 NSF-Wisconsins sales of customer-owned 251000 of NSF-Wisconsins portion Generally income KWh transports NSP-Wisconsins significant net its and distribution transmission Upper Peninsula the approximately percent significant industries generation of customers Although industries following portion utility service Approximately during diversified in the approximately sells natural NSP-Wisconsin provides approximately and comprised and in the primarily engaged utility Wisconsin to derived customers electric extraction industries approximately For grocery percent to of The management NSP-Wisconsin the owns electric the direct following Inc Clearwater Investments reservoirs and production transmission Chippewa and Flambeau subsidiaries which of NSP-Wisconsin system owns interests in the generation affordable in is Co which Improvement hydro operates NSP Lands Inc and housing NSP-Minnesota with integrated which holds real estate PSCo PSCo an operating is also purchases customers PSCos large portion of in the 45 to PSCo owns following 55 interests PSRI which and held small relatively Green and For consolidated net Clear Lakes 1480 water employees life and are gas of industrial to Colorado 2012 gas PSCo natural 2012 1.3 million Although significant industries metal fabricated electric sales retail contribute earnings in PSCo approximately during significant PSCos in industries following customers Generally service diversified in the of electricity sold customer-owned in many sale KWh total its utility operations comprised and of transports natural establishments include approximately income Inc Welton Company and and distribution percent include customers sales dining 13 derived from commercial small transmission customers retail customers customers electric estate purchase approximately were and real Energys former to gas million retail industrial subsidiaries and certain ditch electric and industries direct following 1.4 operating revenues industrial of Xcel percent the estate electric and sells natural and gas extraction oil as and approximately commercial large well customers percent retail commercial PSCo as products PSCos to by PSCo comprised served distributes service utility of All primarily customers transports electric provides engaged utility The wholesale Colorado which insurance and United water owns PSCo policies Company Water rights also and certain holds both real of which estate interest controlling own certain PSCo interests in several real owns also other companies sPs SPS an operating is of Texas portions KWh sold 2012 in SPS significant portion as customers include Other small is Cob WYCO was in the and following coal electric and For percent and oil to 15 were customers retail industrial products industries revenues electric small sales commercial gas extraction percent of XceI and 381000 customers retail comprised include and of related in the Texas and Texas during net in total its 2012 industries industries following industries and oil electric significant agricultural of New Mexico in in customers consolidated electricity percent diversified many customers industrial crop Energys operations of sale 33 approximately derived from are and distribution transmission by SPS comprised approximately operating industrial commercial large approximately has Energy Xcel Energy tax and gas venture joint company pipeline near Cheyenne with CIG system to interest ownership percent to Services retail Generally SPS income natural gas from the PSCo system near Chalk Wyo and develop in in transporting engaged WYCO lease The gas natural gas pipeline pipeline and storage storage facilities and compression are leased facilities FERC under CIG Inc is the nonregulated service company subsidiary is for Eboigne Xcel Energy which Inc invests in rental housing that projects qualify for all conducts other income its from business utility See Note 16 continuing to the in the following consolidated operations and reportable financial related segments statements financial regulated for further information electric discussion utility relating low-income regulated to natural comparative gas sales credits Energy revenues as 50 Inc.s natural Cheyenne agreement Xcel housing interstate to the formed Energy approved utility SPS petroleum to purchase served Subsidiaries Bluffs Xcel of customers service utility retail electric and generation wholesale electric SPS as contribute earnings Xcel well of commercial large extraction WGI SPS provides in the primarily New Mexico The 74 percent Approximately Although engaged utility and gas segment ELECTRIC UTILITY OPERATIONS NSP-Minnesota Public Regulation Utility Summaiy of Regulatory operations are regulated authority over security affiliates In KV that will pr route located be the accounting electric been is continued recover CIP that customer co-pay RDF recovers the The SEP recovers costs TCR The rates Minnesota EIR the the at this NSP-Minnesotas for adjustments to recover to bill costs In recovered through in law state 2013 These program to the case and fuel electric Switch save energy improvement natural commerce its 100 on except site facilities respectively licensing hydroelectric NERC with compliance market-based at than greater Dakota and future transmission operations in interstate NSP-Minnesota has NSP-Minnesota prices has several retail CIP includes energy and rebates efficiency is clauses adjustment comprehensive list of audits energy projects customers recover to the of costs low-income offering disconnections service gas customers retail various to support the and research of emerging development the of will Minnesota cost final continue approved costs North Dakota fuel by used to through and the in regulators the Dakota electricity FCA In at costs FCA include its in being recovered are renewable monthly and projects billing NSP-Minnesota FCA The and energy plants costs for energy jurisdiction addition EIR and RES be included the No clause purchased each legislature company-owned adjustment items and generate with associated South related with 2012 Sept RES Minnesota the transmission associated costs in the by in electric effective PTCs to track actual the rates of fuel costs of recovery approved related policies new investments the amount and generation energy with permitted from purchased with associated is allows NSP-Minnesota MISO are other generally base rates to invest utilities NSP-Minnesota recovered and commerce sales lines Minnesota and South NSP-Minnesota customers help non-interruptible not recovered are or percent are rate in to as part mechanisms costs FCA requires through 1.5 was an annual percent in of their cost-recovery state with compliance revenues this mechanism in standard for electric CIP in NSP-Minnesota except 2012 and expects conservation to be and energy in which is compliance management expenditures CIP Triennial Plan Plan which Triennial the annual natural 2013 In 1.5 2015 the period the savings percent gas goal of saving through 2012 October increases equivalent of saving the of cost invest costs FCA capacity either rates that from that request rate base all associated prudently incurred through general by law required in for the customers suppliers Minnesota retail electric changes these the Mechanisms new renewable of time NSP-Minnesota between difference to collected related costs electric electric in generation electric in interstate transactions gas transmission Dakota wholesale its electricity natural Savers reduce to cost NSP-Minnesota approved in the to respect North in customers technologies The RES recovers facilities regulatory meeting constructed over authority make wholesale of environmental billed money SEP TCR regulatory and has NSP-Minnesota costs including costs and projects and to of programs designed allocates energy FERC resource costs surcharge program with Cost-Recovery customers the have MW may be line also between for plans MPUC The transactions resource than 50 greater transmission FERC the electric of NSP-Minnesotas aspects states RTO other RES MPUC through is RDF The renewable the all recovers GAP The and recovers and and mergers the MISO the energy benefit The EIR GAP reflect from The CIP EIR base of transfers of SDPUC and resale transmission of for asset fuel purchased programs The sales plants and assets or transmission plant other their respective of dispositions and services rates within NSP-Minnesotas power generation Energy and Conservation Fuel Purchased that new mergers for generating No large The NDPSC authorization owning member transmission need Retail SDPUC the approves to the jurisdiction wholesale standards reliability and state of routing and transfers certifies the the MPUC subject practices granted also the and siting NSP-Minnesota reviews within by designated along with MPT.JC of Jurisdiction NDPSC the property MPUC The energy needs teas MPUC the issuances the addition and Agencies by 1.0 of sales percent Department goals and calculated of sales of Commerce budgets on over the historical The combined approved NSP-Minnesotas previous plan three-year electric and The average gas plan sets 2013 an excluding budgets average through electric opt-out $104 goal 2015 customers million CIP of annually and an per year over and Capacity Demand Uninterrupted system normal assuming demand peak weather NSP Systems for the electric each for utility System which resulted on weather and forecast also includes the reflects the NSP-Minnesota to expects power 2012 of use Power NSP-Minnesota purchased power replace generation from obtain Purchased NSF have and size result the filed in the In 2009 as Minn Minnesota by in the January were In December in service the 2011 The North the to have that 2013 assumes normal NSP-Wisconsin at primarily NSP for the and humidity demand occurred peak for ceased peak day The 2013 operations These CIP options new generation other the meet to purchases and utilities to secure payment short-term granted Dakota in using and facilities independent and capacity customers of expansion meet to power associated to requirements energy reserve operating producers for the charge load and system or during outages or obligations N.D to for in the process fourth Wis to KV permit in St is 2013 of plan MW by commence to anticipated quarter 440 to increasing resource See NSP 2019 with March in additional and required 2012 the 2013 and within discussion in electric the $1.1 four billion will transmission of portion of portion Minn Minnesota January 2011 2012 January In of the line and the as the is $1.9 The remainder cost total KY 345 three projects projects electric billion of the costs progress line the project of be updated Two project decision decision transmission major transmission by Subsequent final have parties Court the is filed to the challenges legal Construction on the an appeal in anticipated project with mid-2013 PSCWs started in the In order Minnesota 2015 line Cloud for the KV PSCWs service transmission to 345 the into KY cost permit decision route go 230 estimates cost Minnesota Wisconsin the one approximately These for the MPUCs Minn September MPUC and NSP System to the December In capacity NSP and power and energy NSP-Mirmesotas generating 2017 in acquisition The estimated Midwest La Crosse for 345 CPCN System MW of 150 to construct responsible expected route NSP NSP-Minnesota system to deliver providers issued an order on for the the by transmission service competitive thereby rendering is their integrated MPUC the needed CONs permit the Monticello issued to route CPCN project Fargo the are against issued MPUC The NDPSC line in demand peak below upper Minn issued unsuccessful and Minn Monticello 2011 PSCW 2013 2012 forecast contracts power from periodic an estimated need granted in the Rochester MPUC the intervenors The customers purchases maintenance 2012 CapX2O2O project the utilities Court of Appeals May 2012 Forecast 9215 system uninterrupted 31 2006 The July industrial transmission or developers section MPUC of to regional MPUC the by NSP-Wisconsin other to the addition and indicating EPU part and by May 2012 under next resources developer Nuclear In NSP-Miimesota Hrnpton of lines be borne 2012 day conditions purchase makes units November In the be determined to Island transmission will Plans selection CapX2O2O to require also In MISO with information its timing Prairie Services determine to filings Minnesota contracts typically company-owned contracts Resource System additional 2013 9475 Initiatives NSP-Minnesota Transmission Wisconsin MW lower cost at energy 2013 for capacity requirements has contracts purchased forecast day with extremely high temperatures firm wholesale several and on since peak power plants power system Long-term actually of conmiercial large existing its Purchased energy the sales Transmission meet to plants normal to termination the of two impact and Related Energy Sources of impact demand system peak closer in 2012 9792 summer The demand occurred peak much weather in the occurs typically The 2011 uninterrupted with 0.05 percent represented existing highest day System 2012 July in the on uninterrupted NSP for the occurred years and three last 2011 9131 demand The peak System the Demand Peak System 2010 NSP of below listed is and portion portion certificate 2013 of of construction Monticello the of the St corridor Minn to Fargo N.D Fargo N.D Cloud Minn to compatibility and started on the project in route North was placed project section permit in for the Dakota June portion of MPUC The route approved MVP Minn South construction Grand to on Minn KV 230 2010 2011 and 2011 June In final the granted the of approval SDPUC the as project line in service MPUC the in MISO 2011 Minnesota in was placed 2012 obtained December In transmission line line were segments project November In transmission segment the Minn Rapids Dog Repowering CON Black Dakota started Grand Rapids to Minn KY 345 Minnesota for the for the permit May 2012 The Bemidji Minn Hampton to permit approvals facility In Bemidii S.D County Brookings in 2012 September the approved of termination Black the CON Dog Repowering proceeding Power Nuclear owns two NSP-Minnesota produce operations federal NRC could which the task to March 2012 of communications nuclear with $35 are recoverable from financial LLW Prairie nuclear for for spent nuclear or disposal Geologic 2002 an application the U.S to Yucca Mountain ruling that not The fuel and has also significantly licensing 2011 in additional internal an and in Japan result created task force mitigating In processes U.S enhance to can Fukushima preparedness actions plant nuclear 2011 July generating external hardened reliable NSP-Minnesota and containment that expects Prairie Island meet to required compliance and to Based is by December 2016 Portions of believes by 2018 NSP-Minnesota mechanisms regulatory and does on these to work that the costs associated under fall the on plans specific to of 2015 quarter for additional requests would be of operations results its and staffing with compliance impact walkdowns will cost second in the fuel water perform outage refueling the material to preparedness begin spent to boiling requirements current expected not expect reliable applicable emergency with complying orders are included orders to included requirements the assess plants the The licensees all which vents information hazards flood to requirements with regard events for additional request seismic and information for additional Waste from would allow both The Disposal waste civilian to This power Prairie continue Island has The Nuclear the includes and reactors nuclear other the until has of to Policy Act the and wastes dispose DOE at to facility on-site licensed permanently requires radioactive available their current Clive at the disposed capacity construction licensing high-level currently storage end the responsibility Waste siting is plants NSP-Minnesota to operate government wastes management nuclear and unavailable plants federal radioactive high-level high-level become facilities disposal that other Monticello NSP-Minnesotas LLW at lives of domestic implement of operation repository permanent federal In 2008 DOE announced its storage facility In evenly and nuclear program Nuclear from if off-site fuel NRC The NRC the in by of demineralizer in use plant controlled flows Radioactive High-Level spent through request power are primarily and could procedures recommends by plant emergency inspection wastes through Decisions Nuclear plant consists generating uprate immediate which report power compliant fully and Monticello Island to Monticello the at of the nuclear operating expenses regulations request The plant evaluate be completed to or cash LLW Utah be to customers Disposal in dates written beyond-design-basis each plant million the expected position located $50 to expected information for Monticello at or LLW contaminated NSP-Minnesota require Island handling of such nuclear fuel at the Monticello should NRC to orders and three to The event Prairie and events severe strategies protection facility units all issued capabilities approximately each manage at the and flood seismic it in requirements with regard containments reactor whether and any changes of operations expenditures capital on the become have that equipment nuclear recommendations its mitigation and and NSP-Minnesotas on additional require NRC the instrumentation the include used primarily and plant The discharge wastes generating plants deliberations safely for requirements regulates Monticello the radioactive wastes tools nuclear reactors released solid rags recommendations U.S at force readiness plant In could has developed enhancements the NRCs the impact regulation that NRC operations of the and radioactive clothing The Regulation impact Disposal generating plants liquid High-level protective paper nuclear gaseous regulation resins and Waste Operations the divided reach ASLB DOE Mountain Yucca designated construct project on Yucca Repository Congress deep and could not whether to the requested withdraw take decision an order was complied and the geologic the the Project Mountain repository NRC issued proceeding Yucca instructing has been as the the approve affirmative Nevada at this site to the Mountain action that of withdrawal application overturning information suspended 10 deep first NRC of In In the geologic repository 2010 the application September or upholding associated with DOE June In 2011 the the ASLB the ASLB 2010 NRC the the intention ASLB announced decision adjudication Because stop the issued that the should submitted to it was NRC could be preserved DOEs The and decision to authority NRCs the Minnesota rate time the 2012 Blue considered by implement the required The available in Nuclear the has plant Minnesota This renewed The December dissolve renewed Island are to to of more the Island incurred 2006 numerous provided its the intent and NRC the in are from expected NSP fee U.S the to and deep to In are January being their plans to authorizations interim geologic fuel that and changes consolidated pilot 2025 nuclear relative Congress legislative of Energy Secretary of used policy recommendations report make to the application for disposal required in revisions two current to and 20 Island to and Prairie and plant 10 storage facility available repository Monticello have to for Unit Island and 2034 dissolve be will loaded been in 2048 until for Prairie PFS Island filed the taking stored the at the by end of the assessment Staff are the to Island statements for further Monticello operating support tci an EIS and develop be completed to Prairie the for Prairie NRC In Units of State the Unit with letter NRC the actions appropriate in to discussion impact of no finding WCD revised significant impact and the rule on months NSP-Minnesota 24 within Monticello or in does In not believe nuclear generating plants regarding nuclear with December 2011 the NRC related by met the NRCs of the expiration in advance NRC until the EPU In The AFUDC of total 2009 approximately filing notifying and the project reductions to would termination the cost estimated not benefit of the that analysis the EPU found of the that the on items and was were $294 changes changes of customers The the In 11 for the due December is it will renewal CON an for to the 2012 expected be result the MPUC to issue project filed impact As the and 2053 be renewal continue to PIICs admitted should license allowed EPU size timing and estimated review at resource cost of to revised an order million has update and for this scheduled unanimously terminating Prairie plan estimates NSP-Minnesota voted the $77.6 approximately NSP-Minnesota the ISFSI its until application million of which in to intervene hearing which by submitting license uprate project MPUC 2013 schedule an operate years the 2034 until Community PIIC named an ASLB to to 40 2011 In and Unit license Indian Island 2030 until 2033 additional standing license million Subsequently there NRC NSP-Minnesota EPU current an PIIC had current the The for Prairie the the establish ISFSIs until license timely renewal decision the benefit CON will for granted of $13.3 MPUC design criteria MPUC 2012 September has rendered estimated 2012 to operate plant to operate Renewal ISFSI the August the Island the In In ASLB PIIC The ASLB 2012 License renew to the allowing allowing Unit ISFSI application October license and Installation An 2013 the Island forward Plant economic NRC put years prevent As plants generating and authorized operate LLC the PFS nuclear Island canisters allow NSP-Minnesota canisters for Prairie Prairie in this project to renewed contentions license indicated investment of Monticello its at Prairie sufficient rule at operations October to filed As the financial licenses contentions than on Spent Fuel Storage of circumstances half fuel an environmental or The EIS and fuel and contentions including shown cause first nuclear waste fund fee and Life Extension expires Nuclear information further is 2033 directed consolidated Uprates Island seven impacts impact nuclear generating plant project Energy Inc and WCD nuclear intervene under change the provided NSP-Minnesota have agreed to PFS license effective immediately the spent by mid-2014 application been withdraw Mountain available at the Island capacity Monticello Commissioners operating intervene the nuclear stored for Prairie including significant Independent Prairie completed the PFS submitted by NSP-Minnesota Island decisions waste fund In June 2012 the D.C Circuit issued to vacate and remand the NRCs ruling how long temporary on-site storage can remain safe and when facilities for the of nuclear disposal The D.C Circuit remanded the WCD to the NRC and directed it to an environmental to the In request had 14 Extensions at for NRC of Power petitioned The available Plant Prairie and storage to terminate Decision there the 13 and issued loaded casks 2030 be an immediate will Nuclear of for spent storage casks 35 in assesses if 2012 See Notes Prairie and including facility set the 2013 in storage that there operate DOE and Xcel DOEs the including nuclear 2013 Yucca to report active the including to challenges collect prepare ETS temporary three storage remain in project alternatives Administrations interim authorized licenses become 29 additional Confidence September on-site were partners WCD The will ISFSI Obama the consolidated requesting LLC Waste statement was An eight 2012 the WCD NRC Mountain was issued The report announced currently operating PFS Life Yucca the recommend to review Circuit Energy In January 2013 the Commissions recommendations interim there Monticello waste D.C the only industry utility challenges legal to Spent Fuel Storage Dec 31 2012 NRC to stop The multiple continue to authority Currently their complete Circuit has prompted DOEs application NEI the by to DOEs the review the of larger NSP-Minnesota of also report of NRC the NRCs the application of Columbia Commission Ribbon 2021 review Commission Secretary Blue the challenges seeking decided Ribbon Ribbon their District DOE the withdraw in these for the Blue the stop zero and to that convened to of stoppage resulting and represented Court of Appeals At the project authority are collection and the stop concluded that the no outages that party EPU CON in NSP-Minnesota plans to with file request to address Agreement NSP-Wisconsin incurred costs Monticello MW NSP-Minnesotas amendment license related Safeguards license operating second Monticello to MW NRC allow the extension life result of the both plant nuclear generating plant their safe ensure Prairie Island capital costs nuclear in that Energy Source safe in the projects and of reliable cost and uprate the reliable generating is planned its In are period of approximately as $500 as as of equipment EPU decision jurisdictional EPU EPU its of approximately in 2008 Committee Advisory by project NRC the needed changes amend to application The on Reactor made NSP-Minnesota EPU the past of an for the 2012 part of MPUC on to the in the support the outage to exceed the despite EPU at the project provide and changes of cancellation the EPU nuclear generating project with experience at the 71 work discovered emergent consistent estimates initial Monticello capacity of approximately additional Prairie of other Island at the Prairie Island facilities cycle management improvements The major capital investments for these activities at the Monticello to life 2034 be completed to the and and the September receive approval of CON by the Interchange expense approvals the raised engineering design date in-service implementing In OM in federal concerns of based and jurisdictions the through recovery approved refueling 2030 well and state MPUC management through addition expected 2013 NSP-Minnesota the outcome the rate pressure concern to of included is implementation cycle above operation through plants life operation on future performance spring each Based which address to expects complete projected projects NSP-Minnesota and to planning The accident NSP-Minnesota case both for pump containment the uprate is with associated 2012 for from NSP-Wisconsiii estimated plant Staff case rate costs rate filed NRC the the the December generating delays discussed the extension and nuclear help address by nearing completion licensing during implementation life to and.EPU is hold pressure power continued help ensure As on of NSP-Minnesota nuclear of future value in charge 2008 NSP-Minnesota NSP-Minnesota Overall plant to the to 2013 of half placed in recovery next in the portion discounted pretax In containment to filing supplemental million costs recover Cost the Monticello was filing seek to EPU Plant Nuclear for to incurred to approval compared $10.1 in for plans were date resulting precedent 71 to of recovery FERC the in the years 2013 with combined 2017 through and forecasted million Statistics Year Ended 2012 Millions of KWh Dec.31 2011 Percent of Millions 2010 of Percent KWh Generation of Millions of Percent KWh Generation of Generation Coal 16023 35% 20131 44% 19579 42% Nuclear 13231 29 13332 29 14628 31 6200 13 3016 3887 Wind 5443 12 4312 3760 Hydroelectric 3193 3444 3487 Other 1617 1453 Natural Gas 45707 Total Owned generation Purchased generation Total 100% includes wind resource requirements and Includes energy from other energy de-bundled may seilsurplus sources including 100% 100% 46835 31365 69% 31668 69% 33758 14342 31 14020 31 13077 100% 45707 This category 1494 45688 from RECs and also 45688 Windsource includes 100% RECs The NSP System uses 72% 28 100% 46835 RECs to meet or exceed state RECs solar biomass oil and refuse 12 Distributed generation from the Solar5Rewards program is not included and Fuel Supply The following all shows table the generation Costs the of percentage delivered cost total fuel per MMBtu of each significant requirements represented by each category of of fuel category consumed fuel and the total for owned weighted electric of cost average fuels Weighted Coal5 NSP System Plants Generating Cost Nudear Percent Gas Natural Cost Percent Cost Owned Average Percent Fuel Cost 2012 213 47% 0.90 42% 4.21 2011 2.06 55 0.89 40 6.56 1.82 2010 1.89 51 0.83 42 6.29 1.73 Includes See refuse-derived 1A and Items and fuel 11% 1.88 wood for further of discussion fuel supply and costs Fuel Sources The NSP System normally maintains approximately 41 Coal and 2011 coal were purchased The respectively NSP-Minnesota and for approximately percent of requirements counter transactions NSF-Minnesota of percent To Nuclear uranium to and with in three on 2013 contracted in have 2013 mines the for diversification 2014 nuclear and filled Coal contracts delivery contract conversion strategy of their coal coal Dec 31 at low-sulfur and 2011 and 9.5 2012 western coal million requirements purchasing procurement provide in tons for delivery in 2013 is objective two years and to 33 or over-the- process of to short-term subject 100 and 80 interruptions or of equipment secures contracts involves for uranium portfolio of services with and enrichment by supply tons of requirements availability services caused impacts potential that may be NSP-Minnesota plants The and 2012 million general the through use tons year 67 percent transportation fabrication million inventories stations During 7.2 provide 97 percent problems weather concentrates minimize be will respectively generating fuel uranium to of coal Montana The NSP Systems following requirements and supply generation approximately 8.6 to supplies years for the transportation enrichment contracts for coal number and were Coal inventory Wyoming plants approximately subsequent years Remaining in are of requirements NSF-Minnesotas nuclear fuel Current contracts of percent Fabrication the for service of for requirements services fabrication NSP-Minnesota for expects requirements of structures its sufficient services 2021 due interruptions to spot concentrates purchases multiple and geographical and producers world Island is are currently concentrates generating plants in certain supply of requirements through 2018 and the 2020 and approximately 67 requirements through percent of the requirements through 2022 and approximately 84 percent 2025 Prairie uranium 100 percent concentrates 2025 2025 cover 99.7 Island of uranium 2019 through for cover through through and 100 percent requirements contracts for Prairie nuclear contained for 2023 Monticello services the conversion Current enrichment the of requirements cover contracts supply 67 percent approximately pricing of uranium long-term Current fuel have requirements in operating generating coal NSP-Minnesotas issues political for fuel the 100 percent operation for days of respectively suppliers coal-fired requirements requirements operate focus of with major NSP-Wisconsin coal conversion medium and and their due reductions coal percentage days usage contracts NSP Systems estimated 48 and NSF-Wisconsin declining contract under primarily for the requirements and 39 approximately 100 percent being committed negotiated conversion Some exposure contracts 13 to for services through 2015 and 2025 and enrichment spot market price and 2014 contract respectively beyond services volatility will to be remain available due to for the total index-based Natural The NSP System uses both firm and gas boilers Natural certain demand peak have timing or amount of allowable for the obligations 31 to 2012 gas to gas and tariff NSP the transportation and transportation and The NSP System Renewable storage contracts limited facilities generation from renewable Renewable 2012 and 2011 NSP and purchased and percent energy also electricity from renewable under under regulation executed in new construction At delivery Dec commitments related Commitments related however million respectively in the include relies the on market spot incremental supplies for 2012 In largest will the agreements NSP the The System more has its of NSP state specific the System anticipated in panels under these of on and solar require retail 7.5 sales and purchased owned and purchased total of percent power comprised the in wind of the energy on energy total owned 3.1 approximately and the farm their MWh 177000 of solar of energy SolarRewards the 2012 and owners 2011 respectively Project which was addition are used meet to operations and Generally in purchased state $41 renewable $39 number of execution contract under provided to receiving approximately may be influenced by from in size commercial began In Southwestern in primarily ranging new projects which RECs year of and growth under facilities project contracts the of all 300 PV systems with approximately three MW wind contract MWh voluntary largest or portion 184000 with Wind 200 these and from nations the encourage Dec 31 place Rose this receives by as PPAs with wind under energy varies to and over capacity Prairie of purchase purchased program output from one to homes and businesses their agreements requirements the and Additionally purchasing for 2012 factors contracts and motivation to complete among manufacturers 2012 In January 2013 the Federal PTC was extended excess capacity technology expiration the which electric owned total percent Windsource customers this typically energy of 7.0 and Michigan from energy projects also RPS and NSP-Wisconsin percent Biomass initiatives 23000 began wind of 9.4 power from both owned solar with mandated NSP Systems the comprised of aggregate entire resource from improvements to the prior renewable wind these purchase and respectively solar and compliance respectively and MW System of Wisconsin 100 of than biomass Federal PTCs in 2013 The NSP System Farm began MW 1600 Hydroelectric owns 20 were of changes agreements in lieu of gas on FERC based is approval transportation and natural 2028 to in respectively Minnesota in majority of currently of capacity benefited also Wind over under intermediate pricing make payments of NSP-Minnesota energy 2011 2011 6.7 was percent energy install to installed the acquires NSP the these including through and The average cost per MWh respectively The cost per MWh of wind 2012 contract and turbines procured serves upon FERC gas supply contracts primarily percent 2011 and 24000 2012 in 19.7 Minnesota requirements 2011 are piants market Generally spot based and $462 hydroelectric 11.9 renewable in incentives been and and 2012 Approximately offered MW MW 266 2012 and energy resource and for energy program have capacity more than 200 December wind are The NSP System approximately liquid or to gas to million System Hydroelectric 2012 for System sources The NSP System to power combustion in oil gas primarily gas supply and from 2013 8.89 percent comprised customer-focused Windsource the of aggregate Wind natural revision natural and standby for transportation to related years NSP and Over 561 PV systems with approximately Minnesota MW energy programs allows customers system customers MW of $384 wind the percent respectively NSP offers electricity program Most natural facilities includes 22.0 comprised Wind the energy the oil storage portfolio of renewable renewable on volumes as through subject Certain in various of 18 percent and 201 on percent The NSP System are approximately expire fuel procured any commitments Dec 31 2012 of resources 2012 energy 2.8 energy respectively for System rates specified were on-site PPAs As and generating the of not have did However gas indices natural by providers delivery contracts The NSP Systems renewable for various be to transportation recovery System able services storage Sources Energy respectively cost storage has also to These and/or purchase 2011 tied is rates transportation and supply of fuel are gas supply and natural interruptible transportation requirements that pricing approved associated provide an adequate to forecasted remaining contracts supply gas with various terms contracts and supplies owns and generating of wind PPAs purchases on The NSP System hydroelectric nine energy in plants place approximately acquires provided MW in 2008 system throughout which 850 its wind two operates electricity at its farms and the 2010 101 and energy and Minnesota approximately 37 MW respectively end of 2012 hydroelectric Wisconsin The MW of generation from Manitoba of Collectively 2011 from which Meadow Grand Wind NSP the Farm and MW 201 the had over System Nobles 1870MW and respectively both owned generation and PPAs The NSP System provide 274 Hydro which MW capacity hydroelectric is sourced of capacity Additionally primarily from For most of NSP the its fleet 2012 there System of hydroelectric facilities Wholesale Commodity NSP-Minnesota energy-related conducts products Marketing Operations various See Item wholesale marketing for further operations discussion 14 including the purchase and sale of electric capacity energy and NSP-Wisconsin Public Regulation Utility Summary of Regulatory AgenciEs operations are by certifies the need Wisconsin is licensing PSCW for Rate rate in of cost electric of and any are projected NSP-Wisconsin increase to Wisconsin was customers and Demand NSP-Wisconsin operates Capacity Energy NSP-Wisconsin an an operates CapX2 020 Minn new transmission to La by to expects $8.1 recover integrated over to 2012 will include June 2011 of million costs longer be subject with compliance NSP commerce electric sales must submit electric annual Wisconsin fuel rate fuel for opportunity any wholesale formula to or cost plan hearing for changes municipal rate true-up in 2013 which factors recovery plan ROE and revenues billings cost adjustment cost over-collection of authorized whereby fuel fuel cost Approval an serves to 12-month statewide in rates to adjustments conservation the after recently no submitted NSP-Wisconsin program most power supply is the and or refund PSCW utilitys for amount of any the the an automatic forward-looking recovery by the subsequent efficiency NSP-Minnesota with rate provide in the Historically the on reconciliation In energy future customers Goals 2014 Transmission generation commerce year NSP-Wisconsin not have defer NSP-Wisconsin provided customers state system hydroelectric make wholesale to NSP built RTO submit determined FCA period does utilities for is 2013 Michigan approximately million integrated over-collections are are refunded period biennial funding budget costs program has recovered bill effective in 2012 in these was 2012 This costs in signed into Based on amount rates is law this expected charged to forward going See NSP-Minnesota Capacity See NSP-Minnesota Energy Demand and Initiatives system to the NSP-Minnesota with Wisconsin portion of the order line is The PSCW Wis PSCW The line CPCN Crosse PSCWs challenges Fuel and for commissions state and sited in interstate FERC the NSP-Wisconsins Sources and Related Initiatives NSF-Wisconsin Rochester $8.6 and Related Sources Transmission allocated approximately retail increases transactions MISO numbered utilities based test services for the band include 12-month plan costs Jan municipal rules cost earnings schedules schedules fuel deferred an and Conservation Efficiency the of to from gas of may be facilities from the NSP-Wisconsin toltrance Effective collected odd the in interstate authorization By June of each of each electricity natural of aspects operations of joint other addition electric mergers and owning member the annual After each wholesale its transmission under Wisconsin approves rate the the Mechanisms subject energy rate projections Energy is wholesale electric retail back cost electric for under-collections rolled action to fuel before In January Instead percent lines and services states and continued requirement refund or recovery for Rates 12-month Wisconsin two wholesale customers on which excess of to respect for resale transmission following PSCW the and purchased fuel NSP-Wisconsins based the with rates their respective transmission transactions granted is customers deferred NSP-Wisconsins in the been rate filing Once adjustment recovery sales asset Retail within electric FERC the Cost Recovery Energy retail approval under-collection and any have year beginning Wisconsin for PSCW the standards base biennial test and of Jurisdiction MPSC the plants prices NSP-Wisconsin and Purchased clause and wholesale practices reliability has filing for the Fuel generating and NSP-Minnesota market-based The new and Areas of PSCW the to the jurisdiction subject electric Wisconsin at for accounting NERC the regulated by 345 also KV issued project route approved intervenors anticipated were to in begin CPCN May 2012 for the permit and unsuccessful in 2014 and Wisconsin The Wisconsin the cost thereby the line NSP-Minnesota See is is portion estimated rendering expected at the to of the consists portion $21 into of approximately million Subsequent PSCWs go CapX2O2O Hampton order service final in 2015 operates an integrated system with 15 NSP-Minnesota Fuel Supply and Costs to legal Construction Supply and Costs NSP-Wisconsin Minn 50 miles of on the PSCo Public Regulation Utility of Regulatory Summary operations accounting commerce compliance and Areas Agencies and issuance services accounts rates practices with of electric Purchased Energy and Conservation Fue4 recover fuel purchased ECA The through the PCCA ECA base its with changes DSMCA service in fuel costs The DSMCA RESA The RESA of Wind charge Mechanisms with transactions gas PSCo has to respect wholesale its to respect transmission the resale CPUC the with of retail facilities in interstate electricity commerce in interstate several its electric clauses adjustment that sales shared are margins with customers retail capacity between The SCA DSM payments PSCos rate actual service interruptible of cost revised annually is in credit option and fuel amount of the well as January as these on an and performance costs recovered costs interim basis to initiatives coincide for goals incremental the of compliance costs with RES the and is at set maximum its level of choose to total bill Wind Service Energy additional for natural power costs Short-term purchased purchased rates recovers FERC costs difference savings customers the and and by regulated the sales standards Cost-Recovery recovers various energy achieving percent the steam whoiesaie is by revised quarterly is recovers recovers regulated is reliability resource fuel recovers The PCCA under other ECA The ECA The SCA SCA an and energy PSCo licensing hydroelectric NERC the PSCo of Jurisdktion securities Service Energy to increase the premium is of renewable level service who customers for those generation used resource the meet to voluntarily customers pay load requirements TCA TCA The transmission recovers revenue plant and requirements allows for CWIP on return of outside rate cases PSCo recovers by approved pay purchased FERC PSCo costs generation and fuel the fuel through their jurisdictional in have costs PSCo monitors and records regularly the year following extend the quarter of terms of the PSCo period and approve these QSP current necessary rate files the through end rate proposed its of annually This 2015 PSCo refund is July fuel of renewable certain in settlement The wholesale plan provides the PBRP filed for and customer under obligation PSCo energy purchase and customers with true-up rate reliability under 2012 clause cost adjustment resources those regulatory adjustment In through formula to electric relating an estimated customer adjustments with associated PBRP electric full cost forecasted fully targets customers the an the PBRP The CPUC In credits April the 2012 of each CPUC resolution expects to through conducts with application and discussions bill service in the to first 2013 and Demand Capacity Uninterrupted normal measurement review to proceedings as an pay RECs through PBRP and QSP Requirements PSCo operates under customers if PSCo does not achieve certain performance electric to agreed receive exchange of production allocation wholesale its customers and clause from costs energy wholesale system weather peak listed is demand for PSCos electric for utility each of the last three System 2010 PSCo The peak occurred primarily demand June due to for the Related Transmission PSCo expects meet to typically its system DSM options occurs was an extremely of normal and facilities system which assumption Energy Sources generation PSCos 25 2012 capacity and in the hot Peak Demand 2011 6436 on years and the forecast for 2013 assuming below summer in 6896 The 2012 MW 2012 Forecast 6428 system uninterrupted day The forecasted 2013 2013 6689 system peak is peak demand lower than the for 2012 PSCo peak weather Initiatives requirements through phased expansion of existing existing 16 electric generation power purchases generating stations select power plants at new Purchased Power purchased power company-owned contracts typically PSCo purchased actually from PSCo has contracts makes also under units to power from other purchase require periodic short-term payment to to meet purchases maintenance or the meet to and capacity for the Long-term associated requirements to replace obligations or to obtain reserve operating power producers charge and energy load system during outages and independent utilities secure energy generation at energy lower cost Purchased Transmission transmission service PSCo Resource PPAs under that The second of the 2012 due of received RES CPUC also property production acquire an propose 2017 EPA emission The total on plan as Cherokee expected 569 own MW be Unit 2012 obtained the then Shutdown shut purchase PSCo to energy Unit Unit station generating gas and to natural 2013 terminate make the made after the CPUC the the decision the at instead denied approval transaction to retire to pursuant Unit Arapahoe can retirement was to the obtained then be Cherokee RFP including SCR Install SCRs on Hayden for controlling the of is or of to the terms the in this be compared first bids credit annual changes of $1.0 approximately at to garden solar solar Community compliance projects called their generation on of 2012 in The generation gardens program solar their share the emissions of levels MW 900 solar install RES 2013 the and solar gardens seek will to discussion from 2008 at least related SolarRewards reduce to and of PSCo implemented who prefer not to by renewable supplied community SolarRewards distributed receive for are PSCos 2012 MW to for further plan proposed in to Phase MW be at MW NOx and 2015 be in new by 2017 coal-fired billion NOx from the coal-fired The plan allows PSCo units generating 2017 through In to Colorado in by 2012 September the PSCo plants of end the retired to the end of gas combined-cycle the support by 2017 PSCo Resource at and Cherokee respectively natural gas end of the 2012 condenser natural retired the at Phase would in and after of the MW in 186 Unit 2011 synchronous 111 issued in 2016 MW would 45 Unit UnitS Install to Unit he end of 352 Unit to allotted Sources or greater adopted plan down shut issued Unit Arapahoe Valmont SIP converted to MW cannot and facility Energy the approval either retirement plant the the Unit RFP solar up sales energy has approved under basis PSCos of year and CPUC on 80 percent to with were Arapahoe response Shutdown to best total and capacity company-owned January to was an first for follows as down by Arapahoe Fuel Switch is and Units to regional generator existing In and Brush for The plan fueled gas Arapahoe ability percent each comprehensive 70 or refueling Colorado Fuel switch Cherokee response not is natural coal-fired LLC the The CPUC who the filled file to at least associated the PSCo See Renewable PSCo plant Based common in 30 least at allow customers bill 2013 plan by Dec 31 to best standard solar projects 2012 June in interests required controls MW Cherokee in in the investment of with an Power decision pay-for-performance will their electric formally approved PSCos to solely which to additional identified was it the that generation of customer-sited moving The CACJA CACJA generation that that law mandates distributed MW 30 together electric PPA of switching PSCo has transaction decided also gas resource its generating Units and 2022 MW 109 fuel of Brush acquisition the Unit Unit permanently natural determined Colorado Community to join to Brush update MW 237 provide and Arapahoe with the with PSCo implemented SolarRewards retire Unit to Brush including currently with contracts customers applications assets PSCo has transmission system PSCos to separate its units own its phase approved which program to of Brush energy instead using two all alternative The CPUC and plan filed and for approved includes to acquire up an as associated Plan by 2020 and to risks second 2017 associated agreement in the PSCo approval FERC the resource Compliance energy plan the and the to purchase phase sought to power and energy The Brush in presented addition LLC Power set to expire capacity September acquisition 2012 July $75 million This was the replacing In In application 2013 of are In to deliver Brush purchase of approximately price end Plan to application Services providers Plan is in early cost-effective 2013 If MW 365 built transmission system more unless Unit unit in bid more is at in total Cherokee 2012 PSCo to provided bid cost-effective and is 2017 2013 of 2013 unless more PSCo Resource Plan in at the end of bid cost-effective early 2013 If is provided more cost to PSCo effective bid 2013 2017 scrubber is Station for controlling Hayden Unit 17 in SO2 2016 on Pawnee Generating Station in 2014 and in is in CPCNs PSCo has received Conversion for the of Cherokee SCRs on in the new for steam services the decision end after for of impact and expected in late 2013 purposes of was intended this project of PSCo 2011 October was it resource solar retail plan will be $3.2 million and determined need to lower transmission Court by Blanca District County Generation the CPUC gas and Transmission construction 2011 gas and PSCo steam of for natural substation March In for gas and the 2016 January requirement packaged for natural The project CPUC line CPCN granted LLC Ranch Holdings for and Court the load growth lower gas prices and the higher cost of solar thermal PSCo is awaiting final Phase decision in its foreseeable future in the CPUC determination final and line customers to beginning requirement two construct rates would combine plan PSCo and Tn-State KY 345 Costilla projected line and Luis Yalley before revenue to affecting regulatory revenue in the in the May 2009 In to the appealed pending due that the plan before making been are San in the power reduction KY 230 for CPCN for plan gas and steam customers increase Project CPUC the have LLC to for filed regulatory The proposed service in PSCo 2012 PSCos for rates Transmission with decisions unlikely regulatory December approval placed setting corresponding in bringing CPUCs The generation 2011 assist Ranch Holdings Trinchera In to been Station and In sought Cherokee at Units Plan also have application joint Cherokee boilers San Lids Valley-Calumet-Comanche filed unit gas combined-cycle proposed its and 2013 and Regulatory the million Association of application $3.2 approximately is The requirements that estimates Boilers utility effective steam revenue natural of decommissioning Package steam its Unit Hayden units at the Arapahoe process System boilers and Pawnee emissions controls the condenser synchronous Installing Constructing Steam to Unit Installing Shutdown is Unit of Cherokee Decommissioning PSCo following decision on the resource plan is in the anticipated first quarter 2013 SGC Cost SmartGridCity and $4 capital 2011 February CPUC the PSCo requested Recovery of annual million OM allowed costs incurred to of approximately recovery of recovery develop and $28 revenue the SGC operate of million the of part and cost capital 2010 its with $45 associated requirements as electric of all rate OM the of million In case costs In CPUC approval for the recovery of the remaining capital investment in SGC and also provided the additional information requested On Jan 17 2013 the AU recommended denial of PSCos request for recovery of the On Feb that the remaining portion of the SOC investment 2013 PSCo filed exceptions to the ALT recommendation requesting result of the Alls recommended decision CPUC grant recovery of its investment However as denying recoyery PSCo December 2011 $10.7 recognized included PSCo requested million OM in pre-tax Boulder Cola Franchise first measure purpose revenue retained multiple Council City commencement oppormnities discuss many of formation of obtain for full exploration has not reaching these seek its electric for the appropriate the whether or FERC net book value of measures were goals utility and proceed PSCo cost 2013 business compensation and disallowed the FERC with in lieu Should of initial formation the In of the which investment is attempt costs 18 with and the the PSCo and rates and debt as electric several municipal 2012 duration with power service to for will decide condemn all FERC damages system the in issuance of Boulder coverage to to with has the white paper that it is proceed facilities resulting or utility issued whether PSCo and stated other consultants electric Boulder the distribution utility The of Boulder citizens the PSCo has advised Boulder City Council Boulder limited light well December of condemnation that as matters taken by Boulder for stranded acquiring passed by for annually municipal level the proceeding has announced in April property and million utility including stranded with Boulder will ballot $1.9 and operation of condemnation it two municipal formaton in 2011 additional an restrictions specialize energy November to raise certain decided opportunities municipal also yet that to condemnation compensation PSCo would the representing of forming costs authorized subject firms legal In tax occupation measure bonds of Agreement the the The second enterprise The increased of funding Boulder 2012 in charge expense with its to the PSCo would PSCo and exploring willing seek to system Source Energy Statistics Year Ended 2012 Millions of Percent KWh Coal of Gas Wind Millions 59% Total category wind includes and requirements may energy from Includes sell energy de-bundled 27 5752 16 4518 12 3830 10 681 446 324 100% 257 100% 36484 37154 100% 23766 66% 23743 65% 24444 12136 34 12741 35 12710 100% RECs from and also RECs PSCo Windsource includes 100% 36484 RECs uses to 66% 34 37154 meet or exceed 100% resource state RECs surplus other 61% 22767 9854 35902 This 61% of Generation 24 263 generation Percent KWh Generation 22065 590 generation Millions of 8896 35902 Purchased of 22 Other Owned Percent 7930 Hydroelectric Total 2010 of KWh Generation 21367 Natural Dec.31 2011 sources nuclear including and oil biomass solar refuse Distributed from generation SolarRewards the program is not included Fuel Supply and The following all shows table the generation Costs the of percentage delivered cost total fuel MMBtu per requirements of each significant by each represented category of of fuel category consumed fuel and the total owned for weighted electric average cost of fuels Weighted Coal PSC0 Generating Plants Gc Natural Cost Percent Cost Owned Average Percent Fuel Cost 2012 1.77 78% 4.25 22% 2.31 2011 1.77 76 4.98 24 2.54 2010 1.58 85 5.05 15 2.11 See Items and for further of discussion supply and costs fuel Fuel Sources PSCo Coal were normally maintains approximately 46 and 48 approximately primarily under for existing were 11.4 approximately requirements in requirements for PSCo has coal problems will transportation Coal weather supply years following requirements respectively delivery and suppliers 41 days of in operating 11.3 and 10.5 coal Colorado million Coal supply inventory PSCos respectively generation and stations Wyoming During tons respectively inventories at Dec 31 use low-sulfur western 2012 and The estimated 2011 coal coal PSCos 2012 and 2011 purchased coal requirements requirements for 2013 are tons for coal subsequent the usage approximately million PSCo has contracted Remaining with contracts plants days to year 67 be filled contracts may be availability provide 97 percent PSCos general percent that subject its procurement provide to of for delivery short-term coal purchasing of requirements the through coal in requirements objective two of 100 of equipment 19 or in and 2013 to contract years and process interruptions is for 33 percent over-the-counter and 46 percent or reductions of requirements of 100 percent in three of years transactions of due percentage declining approximately its to coal requirements operation of the in mines 2013 and 2014 transportation PSCo uses both Natural gas Natural serves primarily gas hedges of portion Most discussion natural gas supply and various from 2013 which contracts commitments PSCo has limited renewable PPAs As and and purchased owned 2.7 energy and also wind includes portfolio of 2.2 electric 2012 for energy and purchased percent PSCo and facilities storage Dec 31 2012 PSCo was of of 12 percent resources oil approved to changes of billion 2060 were natural statements and/or purchase and million to of to Services PSCo transportation rates by providers Certain volumes related to gas of which contracts are natural expire and Dec 31 2011 million At commitments aliquid Energy transportation gas as natural for further specified gas supply related $754 approximately recovery delivery related and commitments cost boilers through indices gas rates These allowable commitments $1.1 with Anadarko financial tariff transportation be procured to in various consolidated certain However in storage PSCos and transportation million approximately $819 fuel through tied for the able are long-term agreement the to approximately $730 were contracts by timing or amount obligations approximately from 2013 years gas supply on-site include 11 Dec 31 2012 PSCos At were FERC in the requirements features and turbines on relies primarily the market spot for incremental supplies Energy Sources Renewable PSCos to were contracts storage in various expire related covered is pricing on of changes agreements 2023 through have based is pricing of delivery in lieu contract combustion in oil provide an adequate supply of fuel to forecasted instruments See Note approval transportation make payments years contract contracts any remaining contracts financial FERC supply and standby gas under procured demand supply gas through upon are gas supply under natural natural risk based to revision or to and peak transportation subject gas of that natural interruptible plants power intermediate balance the Company and firm PSCos The majority of market spot for supplies gas 2012 for energy 2011 customer-focused offers 2011 energy renewable 2012 and 14.6 solar of percent and percent 12.4 percent PSCo total owned of PSCos total power comprised approximately 2011 Windsource initiatives energy and percent 16.0 facilities generating generation from renewable require biomass Hydroelectric and which comprised owned power from both solar 18.7 comprised energy respectively for energy and RPS with mandated Wind respectively and of renewable percent biomass hydroelectric compliance sales Renewable retail and in of one the nations voluntary renewable largest or all of their electricity from renewable sources Approximately 34000 portion programs allows customers to purchase and 36000 customers in Colorado MWh and 212000 MWh of electricity under the Windsource program in purchased 201000 energy 2012 and 2011 incentives 138 approximately have been PSCo wind wind these as program with place PV 9600 2012 the and 2011 from are MW 110 offered PV Over 12500 systems of aggregate with capacity respectively owners in size customers system program with approximately 300 over to RECs Colorado in primarily 2MW wind receives typically on energy SolarRewards farm ranging also solar the systems Dec 31 of facilities PSCo agreements under PPAs with wind from energy in agreements under this of growth businesses capacity and over under its the encourage homes and their which are and MW used In to PSCo Wyoming addition meet to state receiving renewable The average cost per MWh of wind energy under these contracts was approximately $47 and $45 for 2012 number of factors The cost per MWh of wind energy varies by contract and may be influenced by respectively requirements 2011 state regulation including executed in 2012 construction prior specific renewable resource from improvements benefited to the anticipated in of expiration and requirements Federal the the year of PTCs execution contract excess capacity technology among 2012 In January in 2013 Generally and manufacturers the contracts motivation Federal to complete PTC was extended 2013 through In Colorado energy on of aggregate these to Additionally panels majority of has 19 of purchased new MW in the acquires resource solar installed currently and respectively to install November contract 2012 the 200 MW Limon Wind PSCo has long-term PPAs operations is approximately $35 per to Energy acquire MWh which Center and 200 output of both the is lower the than MW Limon Wind facilities average Energy The average cost per cost MWh Center over the of purchased II began commercial 25 year term of wind energy on the the Lirnon PSCo system Additionally 1999 PSCo PSCo owns and had collectively the operates approximately 26 MW 2200 Ponnequin MW and Wind 1800 Farm MW in northern of wind Colorado energy on its which system at has been the in service end of 2012 and since 2011 respectively Wlholesale Commodity PSCo conducts related products Marketing various wholesale See Item Operations marketing for further operations the including discussion 20 purchase and sale of electric capacity energy and energy sPs Public Utility Summary have Regulation of Regulatory over jurisdiction SPS deny electric NMPRC operations NERC with received also has electric Texas standards FERC the have fuel purchased DCRF DRC rider The DCRF in effect is EECRF EE DRC The asset The EE FPPCAC The PCRF rider allows recovery The TCRF rider recovers effective factor and fuel factors fixed to change and regulations fuel part of the SPS recovered purchased also the energy utilitys require regulations clause fuel economic energy Capacity and Uninterrupted wholesale its in commerce compliance interstate commerce SPS has several retail clauses adjustment that with providing associated with providing recover to the of certain energy energy energy difference programs between the in programs efficiency efficiency New Mexico in in programs actual The Texas and purchased fuel power purchased infrastructure power costs Texas in and costs improvement of retail electric the through the costs energy tariff fixed costs with associated recovered are Based on in in changes PCRF and fixed through in approval regulatory and purchased fuel TCRF the Texas wholesale transmission be included in base and purchased fuel rates energy SO2 and NOx allowance 2011 The factor energy recovery factor recovery annual provides and purchased fuel for the over- or energy on costs of under-recovery over- or under- recovery or surcharging allow regulations fuel and purchased amounts including rolling require every management fuel SPS request years adjustment to The and SPS of policies review and purchased cost examination periodic and purchased has costs clause accepted purchased energy costs continue granted from energy and energy to authority NMPRC fuel and purchased 12-month SPS by least to customers the three every its collecting authority wholesale its for filing at costs energy commitments basis the SPS retail if energy when interest this condition fuel through use of efficient is required they is to fuel file an and purchased for application years and purchased fuel use adjustment monthly power ºlause costs through through wholesale fuel fuel November 2014 and purchased FERC Demand system peak demand for SPS for each of the last three years and the forecast Peak System SPS demand Aug for the SPS system typically occurs in the Demand 2011 4985 on costs retail jurisdiction 2010 peak current New Mexico 2013 for assuming normal weather below occurred one prices SPS has with renewable SPS New Mexico recovery refunding require retrospectively SPS recovers The to respect in times per year to three up of that request also acquisition to adjustment transactions gas with can municipality rate denials in interstate electricity market-based Each municipal FERC The continue to NMPRC natural all the by regulated of hears and operations states Texas in associated transmission Fuel and purchased is are four percent PUCT listed which Regulations expected the 2011 costs fuel expenses energy SPS approved revenues at communities in those which electric retail in their respective Texas in February recovery PUCT of rates and sales Mechanisms associated monthly adjusts base costs costs is transmission mergers costs costs TCRF The PUCT exceed recovers recovers in and the rates PUCT SPS securities electric SPS over to the SPS regulate or generation costs PCRF charges The rider included for distribution 2013 The FPPCAC amount the of resale deferred June rider issuance sales NMPRC and transmission jurisdiction Cost-Recovery recovers of rate decisions transactions resource recovers through construction make wholesale to other rider rider The EECRF rider and and energy the original the over Fuel Purchased Energy and Conservation recover and wholesale practices The PUCT Jurisdiction appeal municipal jurisdiction reliability from then of services in operates accounting authorization and rates SPS can increases rate The hearing retail SPS which in municipalities and Areas Agencies its summer The 2012 21 5210 2012 in MW 2012 uninterrupted 2013 5265 system Forecast 5193 peak demand for SPS is and Energy Sources SPS expects use to Related Transmission electric existing generating Purchased Power purchased power SPS purchased owned SPS has contracts including terms of maintenance to These or are power NTC new all NTC NMPRC As service member PUCT allocated TUCO TUCO Inc The TUCO to Woodward line OATT the and Hitchland system CCN at SPS SPS service In Unit is energy generation from transmission regional and wholesale retail lower cost at energy actually company- service load providers with obligations solar PV solar the diversity SPS SPS solicited IRP filing public with CSAPR implementation 13 to the of solar its of portion in July the the U.S CAIR In which financial the to substation SPS projects of cost capital spending capital the jurisdictions been have that accordance in planning process SPP with processes This line connects line the TUCO major in SPP members from line in the 2012 It in is SPS 2011 and implement 2014 is with accordance to SPP the be complete to anticipated in its EPAs of in 2014 from plan portfolio and issued of in by 22 and turbine MW of million which from line is expected generating to capacity the of inclusive the extend 2015 in NMPRC the time to its any total or SPS shortfall of 50 implement generation to energy SPS granted for for approval biomass of percent SPS compensates NMPRC to ten 15 percent 2009 In viable of MW portion make biogas New Mexico Integrated in Resource that vacated program Contingencies Planning JRP SPS made the 2012 September reductions requiring an opinion replacement Environmental in to that received modification ozone plan energy to acquire million Oklahoma the 2013 of NMPRC the efforts its and $56 168 of $118 increasing of wind executed without development statements SPS add will cost portfolio 2011 completing combustion gas-fired quarter is is process unit 2012 provided New Mexico 2012 Circuit build in the facilities OGE substation projected in purchase variance PM D.C to with until and generating second substation and ratemaking renewable the continuing energy the resources requirement was accepted the CCN associated Woodward line CCN in the by renewable energy and This the and line towards for Unit operation through transport 2012 August electric Typical FERC and transmission Woodward to request approved renewable throughout 2012 pending consolidated its addition the Woodward Okia SPS is constructing Woodward SPS estimated investment in the TUCO to build OAT SPP Jones was granted and 2014 addresses long range of half develop January participation the SPS Texas produced requested to with requirements through meeting delay diversity NMPRC CSAPR eastern is there transmission Hitchland commercial to required portfolio PPAs SPS the reach customers requirements meet to to to PUCT substation be recovered SPS CCN the NMPRC the from to circuit approved Lubbock 2012 KY 345 0GB miles from Hitchland for requirement during 2012 energy energy is PUCT in expected 30 first accordance in develop SPP members other to NMPRC is building doubb investment the February retail the and procure and lines an estimated at reliability load the or line KV 345 is site allocated through expected is transmission substations SPPs through process study of and line Electric approved transmission Station renewable its allow 2011 and identified economic line Gas 0GB million building SPS Mexico fulfills to of Note In Oklahoma The PUCT estimated Jones Plans New of in the August territory Jones primarily purchase are for projects plan costs interchange voltage line and $185 SPP members existing SPS Resource 2011 to replace Long-term associated $200 million per year but may vary Under their of all SPP identified transmission line NTC projects recovery transmission state line is SPS from KV high the KV 345 SPS Woodward unit at dependable to routing for to years $150 SPP NTCs may have 345 process several and siting with is Woodward to Panhandle Jones variance substation Woodward to be recovered its SPP and which portfolio span approximately District extra ratemaking The Hitchmand and Texas and typically projects permissible Woodward to Woodward Texas Lubbock inside the Oklahoma line to just AFUDC are are miles of transmission through SPS to NTCs accepts study process and projects the approved near substation to have SPP SPS of hundred is projects identified Projects Costs policies the net for the or to obtain obligations with arrangements interconnection generator transmission electric transmission and presented serve its power producers charge energy requirements load customers native its and capacity reserve operating contractual to the system load and meet to and independent utilities secure to payment met to SPS has and energy from other power periodic during outages SPS has accepted NTCs for several approximately $800 million These to meet to options more than one year transmission SPP purchase purchases Servkes deliver SPS Transmission process to require short-term Transmission PSCo contracts typically makes also under units Purchased there DSM and power purchases stations requirements capacity for Initiatives in SO2 and NOx the CSAPR CSAPR and from but CAIR utilities required are located continued discussed further Energy Source Statistics Year Ended 2012 Millions of Percent KWh Coal Natural Gas Millions 14818 48% 15486 51% 13167 43 12206 40 wind may energy from Includes sell energy de-bundled 409 361 100% 30780 19940 70% 19310 63% 19303 64% 30 11470 37 11045 36 100% RECs from and also 30780 30348 100% RECs Windsource includes 100% SPS RECs uses to 100% 30348 meet exceed or 100% resource state RECs surplus other 2295 sources nuclear including solar biomass hydroelectric and refuse oil Distributed from generation Solar5Rewards the program included not is 2386 8433 includes and of Generation 49% generation category Percent KWh 43 28373 This Millions of 28373 Owned generation requirements of Generation 177 Total Percent 14005 2103 Purchased 2010 of KWh Generation Other and Costs Fuel Supply The of 12088 Wind Total Dec.31 2011 shows table following the percentage of the delivered cost fuel requirements total MMBtu per of each by each represented significant of category of category and fuel the fuel consumed weighted total owned for electric of cost average generation fuels all Weighted Coal SPS Generating Plants 2012 2011 2010 See Items Natural Cost IA and for further discussion of Percent Gas Cost Owned Average Percent Fuel Cost 1.87 67% 2.99 33% 2.24 1.89 67 4.37 33 2.71 1.84 71 4.59 29 2.64 supply and fuel costs Fuel Sources Coal SPS purchases TUCO TUCO from coal to SPS meet The and handlers has coal requirements requirements Natural gas Natural gas Most in coal natural of limited both power firm or less $57 contract $229 gas million on-site fuel coal percent and based on transportation and oil million S242 storage storage FERC at facilities to provide 2012 primarily standby declining for oil expire in in various SPS for the commitments to 2011 relies suppliers and Tolk on gas of requirements combustion years of in three and turbines which from 2013 the 100 percent to 2033 of years certain is typically approved purchase related to and transportation and/or transportation delivery gas supply storage of contracts contracts respectively the spot market of transporters station percentage approximately percent Commission of Texas related 23 33 delivery 40 and 43 days supply respectively an adequate supply of fuel obligations and station coal stations and All boilers purchased of the gas indices natural include Harrington and 2013 generating weighing with to contract years and contracts of delivery Dec 31 and two and Railroad commitments in is gas supply and contracts and for the electric crushing contracts approximately objective in handling administering requirements tied to various in lieu and million coal natural and and Tolk Harrington unloading SPS were at purchasing agreements make payments and $24 SPS under is facilities 2016 and 2017 in expires of requirements transportation is of coal transporting inventories interruptible procured that two its for negotiating coal general pricing pricing or to million The have contracts TUCO 67 percent is plants for receiving responsible 2011 SPS year gas supply and natural approximately and supply 92 following uses SPS is with contract to SPS for approximately SPS has supply years for the requirements purchase TUCO subsequent transportation volumes coal for the agreements gas supply Certain the requirements with terms of one year natural of As of Dec 31 2012 respectively TUCO all arranges for incremental supplies tariff rates specified were were Renewable SPS renewable SPS 2012 and Sources Energy New Mexico and and RPS with mandated compliance of Texas 10 percent wind includes portfolio energy in is electric power from both owned solar which Renewable sales respectively retail resources energy 7.9 comprised of SPS total owned and purchased energy for 2012 and 2011 respectively Wind energy percent of SPS total owned and purchased energy for 2012 and 2011 respectively Solar power comprised percent and SPS also of renewable percent customer-focused offers for energy renewable and 2012 2011 one of Windsource portion or programs allows customers in New Mexico to purchase 1100 and 1200 customers purchased 5000 MWh and 7000 Approximately 2012 and offered are incentives have capacity will SPS SPS capacity also average cost cost MWh per renewable and 2012 Wholesale SPS had SPS See purchases Item MW by MW 860 nearly in The FERC has subsidiaries uses and marketing and physical over other to the Order for revisions as to In 2012 Inc.s discussed and SPP in cost the NSP addition to meet QF and Spinning to Wind Spur qualified resource wind facilities generating these SPS is PURPA in the The The contracts executed contracts Generally in 2012 of wind on energy its system for SPS agreements Additionally defined as and MW 161 to operations under energy of Texas area commercial requirements PV 80 of aggregate 2MW from under Ranch began purchased receiving renewable state execution MW the including operations instruments of Recent and purchase minimize to NERC of specific from benefited prior At to the end the of respectively of sale commodity electric and price capacity credit and energy energy and hedge risk and sales see Note activities 12 to the commerce in interstate and practices electric mandatory Developments Regulatory service accounting subsidiaries below Federal transmission transportation Tariff for in Therefore System in new requirements MISO reliability including certain other standards consolidated and and retail sold electricity of Xcel activities State of regulation accompanying signed Order were local wholesale at Inc.s Energy have agencies statements utility jurisdiction and environmental rates financial North to future of is expected Dakota in the that This and transmission and have South is development to the the and 24 effective MISO in rights expects the of incumbent on future Wisconsin ownership are issued Order In matters for discussion of 1000 adopting The requirements prospectively for the 2012 October to legislation FERC Tariff Interconnection impacts For be Energy filing similar limited Dakota to Xcel Western preserves legislation to revisions compliance its utilities legislation by Pricing The Order 1000 and development addressed submitted systems 1000 Cost AllacaLion allocation Transmission consortium to their Minnesota relating cost SPS PSCo WestConnect and Planning allocation below Mirmesotas Governor Dakota In contract 700 for electric planning transmission interconnected South MW Over Panhandle Texas in size ranging customers was approximately $26 for each of 2012 and 2011 number of factors including regulation state and may be influenced by financial utility Transmission discussed the participation gas enforcement transmission transmission planning Wisconsin 161 in the primarily facilities program New Mexico matters 1000 requirements rates natural Energy matters regulatory FERC over jurisdiction many of Xcel addition in system sources Windsource the discussion for further including the on energy renewable under electricity Marketing Operations licensing facility of and motivation to complete new construction among manufacturers 2012 In January 2013 the Federal PTC was extended through 2013 Summary hydro from MW with energy from PPA the 7.8 0.5 voluntary renewable largest under the SolarRewards program 70 PV systems with approximately of Dec 31 2012 and 2011 respectively wind farm owners place used of wind as in facility year of the the are contract PTCs Federal wholesale various products MW which MWh solar nations the their electricity over program with 2012 excess capacity the Commodity SPS conducts related of PPAs under energy varies energy technology expiration 2011 250 this agreements late 161 this requirements and resource anticipated of wind In of growth and capacity 8.2 and percent approximately homes and businesses their under these RECs wind additional an of MW of output of wind in six than 600 MWh per improvements has receives purchasing currently New Mexico the encourage of aggregate from long-term energy entire typically on panels MW in currently greater the purchase solar 4.5 installed wind its acquires total to install been New Mexico to respectivelyAdditionally with approximately systems SPS 2011 of all energy in 7.4 comprised percent and percent respectively initiatives energy Dec 31 of of approximately percent 0.4 PPAs As and facilities generating generation from renewable require The NSP-Minnesota proposing filing is to utilities previously to in FERC North transmission development portion uncertain of the NSP System by through and construct NSP be addressed comply pending passed and will requirements new for action own Dakota and and ownership the impacts in of the to their of 1000 SPS of Icel Xcel utilities to equally FERC grant of development ATCs of ATC that under by Xcel should single facility MISO inc the 2009 In customers of and on FERC December2011 The FERC exploring recent pilot open Electric Transmission services FERC rules the electric of of on are then utilities and RTO SPP the RTO transmission in offering FERC the MISO an Transmission allocated expected load are to to serving allocated all loads and would was an to protecting Line In state KV transmission line In February Inc.s NSF- and line belong to FERC FERC the line that action concerning MISO also is 2013 February the with proceed pending with that but did not consideration order La proposed and requested issues ATC against In the transmission further on rehearing regulatory 345 Wis rehearing of purposes In or Hampton RTOs with turn ARCs the order compliance percent FERC the provide multiple Certain parties region purposes have the FERC the have ATC the should to been line to determine line designated the as The FERC Madison that as of dismissal seeking complaint La Crosse alleging complaint Madison an answer filed Line lines are found separate the CIP services the regulates over the rates functional and and filed to prohibit to more as the June their offered MPUC compliance NSP-Minnesota the MISO for electric with the in their states MISO the state NSP by ARCs end-use proposed and 2010 of of aspects within interact fully in to MISOs Under operation most ARCs and terms and control tariff rates tariff to services second of are for 2011 provides are fully to percent eligibility improved is loads local generally tariff 25 If reduced orders to energy near was is The most market for congestion U.S FERC in effective as first in the for the MVP the 345 KY transmission for future of other costs of 2009 impact new reliability would Seventh that but would and higher renewable for the of consortium material costs and vicinity Court of Appeals within quarter had not sale member is members All in the has methods voltage for the WestConnect functions project qualifies higher the transmission assets MISO RTO SPS tariff market the the utilities allocation project the of by other tariff to loads obtained transmission WestConnect for different allocated reliability FERC MYP approval The may provide wholesale members with participate of conditions their electric The WestConnect quarter presently projects 80 the services aggregation ARCs effective prohibiting NSF-Wisconsin transmission in the Tariff be revisions and approving rules of operation 2012 PSCo MVP such appealed should Energy transmission La Crosse the Transmission NSP-Wisconsin demand response programs retail tariff authorities retail WestConnect regionally MISO that Wis and demand response the or temporarily rehearing of regional some lower voltage in the and denying to offer state-regulated its regulatory firm transmission The MISO Pricing Xcel prohibited agency prohibiting existing 2009 revenues ATC ATC Thus facility an La Crosse to line La Crosse and to allow to NSP-Minnesota files rates Minn Inc NSF-Minnesota La Crosse to Madison against Tariff issued The FERC separately non state to RTO and FERC the requested November utilities in the ruling single regulatory denying expand in Services RTO 20 requested Madison Wis to La Crosse CapX2O2O to that orders two year extension transmission investments projects issued all orders regionalized approved be considered impact of Order provisions legislation Transmission Madison to complaint Rochester purported 2013 M1SO allowing to those PSCo transmission usage not and 136 mile to Agreement the competition Regulation RTO of state rules docket services Each ruling NSP-Wisconsin subsidiary requiring issued encourages subjected has utilities will stand relevant 2010 In that Rate policy its Owners decisions operate the program in this filing further routing Wis Energy FERC Rochester On Feb adopted FERC the retained to planning process NSF-Wisconsin filing for similar line Xcel 2012 July line portion NDPSC SDPUC PSCW and MPSC In Wis filed La Crosse to the MISO behalf of 2012 unless would in the Hampton ownership utilities ARCs revisions Minnesota the together on Hampton Minn against Transmission its applied prior large forth Madison to October in MISOs ARCs MISO the properly Therefore tariff Services designated complaint the Wis ATC LLC rehearing FERCs pending Madison Wis Inc and MISO complaint set under Cardinal Madison granted LLC the by 1000 the La Crosse working ITC Midwest of Order aspect complaint Services La Crosse the ATC that have are interconnected of incumbent right FERC concerning ownership of FERC granted Xcel Energy Services the the Wis Madison to Company FERC the in effect addition to in to construct Transmission 2012 companies In principles Energy MISO remains Iowa ATC filed legal American this transmission the PSCo may be impacted New Mexico nor Colorado with 2012 July that expect own protect areas complaint In statutes and Crosse Wis filed and to construct state not neither service ATC La responsibilities September two the connects Energy the In rehearing that the because line that New Mexico in in their vs rights and does systems transmission projects transmission 2012 ruling Dubuque 2012 filed owner of July project for and Xcel vs October KV that ruling ITC Midwest the granted the the project build the believes Energy SPS of portion Inc and NSPWisconsin August the the the request ownership MVP of Thus stay grant to right ruling In parties stay the have utilities Xcel to their Inc and NSP-Wisconsin Services complaint both SPP transmission develop Madison Wis 345 to Wisconsins In to Energy Wis Crosse on Texas However in incumbent in parties interconnected transmission Energy Services 2012 of whether issue by some an incumbents to relating rights the disputed own and portion the is system to construct the Texas in Furthermore be fully projects energy Circuit and In in Order its which MISO transmission charges RSG 2010 is with tariff by In committed cormuitments regulators in each NSP-Minnesota Certain jurisdiction Court of Appeals for the D.C of market to and is the Circuit local FERCs have RSG been to Sales by be reliability projects the than real-time RSG offer and the remain held abeyance RSG costs pending Operating to the fully allocated the the of allocating through is mechanisms the the of by of loads FERC rehearing that ensure any In energy the RSG costs that benefit by the orders to the requests Statistics Statistics Year Ended 2012 Electric other among MISO approved appeals of disposition to costs portion with which periods incremental RSG the for zones for transmission designed greater FCA the in future participants FERCs and to the eligible constructed projects no-load and allocation market MISO which charge of costs significant on rehearing and pending the for start-up has accepted requirements recover price be of from System could its FERC share pays NSP the exemptions orders in also allocation cost charge and Electric Electric less reliability permitted received participants no has proposed for voltage future all System to regional will receive relating NSP the revenues subject certain MISO FERC issued two orders recent RSG filings MISO resources in Likewise transmission projects that more broadly while MVP projects would continue to be 2013 The NSP System has certain new transmission facilities costs anticipated charges or dispatched 2012 MISO proposed allocating recovery The entities associated from such U.S than the participants to action to cost The MISO scheduled related FERC MISO Charges August rather contribute owning to paid generator located allocation in customers is October filing in compliance project cost regional other 1000 the sales of Millions Dec.31 2011 2010 KWh 25033 25278 25143 commercial and industrial 27396 27419 27167 Small commercial and industrial 35660 35597 35650 1109 1135 1100 89198 89.429 89060 Residential Large Publicauthoritiesandother Total Sales retail for resale Total sold energy Number of customers at end and industrial Small commercial and industrial and authorities Total 20532 109592 2940024 commercial Public 20177 109606 of period Residential Large 15781 104979 1147 419618 68510 other 3429299 retail Wholesale Total Electric Thousands revenues 1129 415755 69350 3405894 75 customers 2919660 2906248 1112 413750 70413 3391523 78 88 3429374 3405972 3391611 2622284 of Dollars 2713575 2712340 commercial and industrial 1534728 1616596 1533993 Small commercial and industrial 3023154 3025416 2956077 Residential Large Public and authorities Total 130538 other 7401995 retail Wholesale Other electric Total KWh revenues electric sales Revenue Residential per per retail retail revenue customer customer per KWh commercial and industrial revenue Small commercial and industrial revenue Large Wholesale revenue per 687912 936875 427389 345540 8517296 revenues per per KWh KWh KWh 26 129826 7484178 8766593 126345 7238699 960505 252641 8451845 26011 26257 26260 2158 2197 2134 10.84 10.73 10.43 5.60 5.90 8.48 8.50 5.65 8.29 4.36 4.64 4.68 Energy Source Statistics Ended Year 2012 Millions of Percent KWh Coal Dec.31 2011 of 2010 Millions of Percent KWh Generation of Millions of Percent KWh Generation of Generation 51395 47% 57014 50% 57832 51% 26218 24 Wind 25080 22 25947 23 13298 12 11216 10 9885 Nuclear 13249 12 13781 12 15012 Gas Natural Hydroelectric 3800 Other 4203 2022 Total Owned 112953 75071 68% 74722 66% 77506 34911 32 38231 34 36831 109982 This wind includes category and requirements may energy from Includes sell dc-bundled energy 100% RECs from and also 112953 sources solar including oil biomass NATURAL and refuse Distributed GAS UTILITY 114337 100% RECs Windsource includes 100% Xcel RECs surplus other 1663 100% generation Total 1659 109982 generation Purchased 13 3998 from generation to SolsrRewards the 68% 32 114337 RECs uses Energy 100% meet or 100% exceed resource not included is program state OPERATIONS Overview The most market for natural 2012 to the gas Although can and pipelines result CI small wholesale sales Pipeline Act Safety The regulatory of do not efforts MMBtu affect directly Safety Regulatory Act requires among other things additional confirm the maximum allowable operating records to issue reports controlled and develop shut-off million per impact Pipeline comply with to PHMSA permanent valves management integrity 50.2 or temporary comply the with confirm Safety Pipeline will require new per day up of will Safety transmission have on Act and and maximum operators small commercial and and efficiencies appliance in natural volatility fracturing gas requirements safety CI industrial From 2000 conservation MMBtu per year to 78 MMBtu per MMBtu per year on weather-normalized year and 377 basis to earnings because its to of natural gas cost-recovery costs any for distribution in the also related integrity maximum pipelines of certain raises series regulations management 27 the of or financial PHMSA pressure In the allowable violations results mechanisms high Xcel Pipeline requiring to prices Energy is programs through the PSIA operators populated areas Materials actions PSCo can requires PHMSA or remoteand lines pipeline cannot rider Act automatic transmission taking effective Pipeline and pressure This process could Safety use of Energy become owners and Hazardous for violating Xcel 2012 January more-densely operating the penalty While in pipeline Pipeline they as or untested previously maximum by areas DOT law into records addition of subjects including testing Act infrastructure high consequence operating re-confirm variety operations related located Act signed Creation pipeline for affected Safety million and Job of allowable requiring Pipeline $2 lines addressing circumstances to and continued are hydraulic declined from 96 Certainty on throughput regulations in certain Act the limitations requirements The violation the to inadequate Administration Safety cause are impact residential higher per year verification pressure Where that Safety Administration Safety to customer subsidiaries utility by customers Materials Pipeline use per technologies residential typical the developments declining construction declined from 441 efficiency The Pipeline and Hazardous and trend building increases price gas operations of natural political continued to the customer further encourage the of improved annual average typical regarding uncertainty as customer in the developments significant prices safety expanding rules to predict the that intended are generally ultimate recover to costs NSP-Minnesota Public Regulation Utility Summary of Regulatory natural retail over authority and gas for pipeline compliance safety include natural gas PGA rates have the PCIA the Minnesota law state customer send-out MMBtu which deliverable pipeline natural storage gas 32 percent storage by firm space to is levels utility they if of percent rate between the over find the their was utility state the natural not natural gas revenues its The natural The following These and North and through NDPSC activities costs are recovered CIP expenditures for the to agreements of for file with an customers interruptible MPUC suppliers with of alternate MMBtu which addition for storage based generally interstate on market These pipelines NSP-Minnesota natural with plant meet help natural its per gas winter 2.0 Bcf equivalent and These to annual fixed pipeline of peak day charges meet demand seeks flexibility demand gas supply for contract levels to peak The 2009-2010 2010-2011 another to the peaks LNG caused to redistribute demand 2011-2012 and 2012-2013 price natural gas gas supply hedging activity the average distribution that and transportation and interruption has been delivered risk approved by cost per alternatives storage financial and to diversified yield rates In addition fit-rn natural of natural gas purchased for resale certain specified natural volumes approximately by NSP-Minnesotas business transportation gas that portfolio NSP-Minnesota MPUC the MMBtu economical 5.43 was committed requirements meet to plants production action decreased summarizes has propane-air have firm transportation 5.25 of three facilities peak-shaving 2010 delivery gas requirements days in natural form of of capacity requirements day or approximately 31 percent alternative cold storage peak 4.41 NSP-Minnesota prices firm for of underground providers of winter current provide and Costs natural has on that reflect with contracts 26 percent approximately indices agreements 2011 NSP-Minnesota supply The Jan 19 2012 and energy occurred NSP-Minnesota LNG to In day per provide change one exchange or NSP-Minnesota was 732135 agreements cost-effective pending actively gas for MMBtu 590698 MMBtu 246000 or to are table retail of firm as 2012 and/or in SDPUC the collected MPUC procurement CIP in and of purchased cost revenues cost period in prudent transactions Minnesota for rates forecasted gas 12-month subsequent customers meeting gas deliveries gas the for has regulatory NSP-Minnesota NDPSC the Safety natural retail MPUC natural for fuel to reflect adjustments difference to certain operations NSP-Minnesotas mechanism from independent day firm requirements required provides increased regulated 0.5 transportation demand on extremely Gas Supply NSP-Minnesota gas under provide heating classes among conducts in electric gas supply plans Pipeline NSP-Mirmesotas between transactions respect of The Jan 202011 owns and operates one of 1.3 Bcf equivalent also plants NSP-Minnesota Natural used refunded cost-recovery categorized on natural capacity capacity equivalent entitlement costs interruptible services These capacity and propane-air costs invest to are occurred of peak NSP-Minnesota with certain an annual firm and NSP-Minnesota purchases The natural gas is delivered and utilities and gas supply requirements maximum daily 751985 of Office monthly or natural with Minnesota The annual service FERC the and utilities the Mechanisms collected is other of aspects states and Demand Capabifity Natural rates facilities for prospective storage of other their respective NSP-Minnesotas jurisdiction DOT within with mergers and services rates NDPSC the approves the pipeline costs gas recovery requires base to subject provides and natural disallow to and Cost-Recovery that service actual authority through clause transportation and is Retail and transfers to the subject including Gas and Conservation Purchased reviews is NSP-Minnesota MPUC property MPUC the NSP-Minnesota commerce interstate Dakota addition In needs Jurisdiction of the by certain issuances security energy regulated are operations affiliates its future and Areas Agencies gas supply of $377 natural million contracts with transportation gas in cr to such several and pipelines storage make payments under obligations 28 which expire agreements in lieu these that of delivery contracts in various include At years from 2013 obligations Dec 31 2012 for the through 2033 purchase NSP-Minnesota NSP-Minnesota and Canadian See This and minimize suppliers 1A and Items firm purchases suppliers natural gas supply of diversity and and long-term utilizing suppliers contract short-term from approximately agreements allows NSP-Minnesota lengths 21 domestic maintain competition to from supply costs discussion of for further natural gas supply and costs NSP-Wisconsin Public Regulation Utility Summary of Regulatory PSCW biennial has for the test certain natural year transactions safety Natural Gas Cost-Recovery disallow recover to certain the costs NSP-Wisconsins 12-month the if it natural MMBtu natural which is NSP-Wisconsin with gas for has is is to the subject to subject and in not prudent PGA retail transportation its customers Michigan the PSCW the mechanism cost-recovery The services storage MPSC the FERC and the The rate filing with respect MPSC for is natural gas PSCW for has Wisconsin the to authority which factor cost-recovery NSP-Wisconsin conducts natural based is on The following retail table alternate which supply The energy occurred on Jan and 19 2012 to meet addition for that reflect agreements NSP-Wisconsin 26 approximately gas per of capacity its cost-effective 2012-2013 In indices These current provide contracts for with providers of of winter percent prices firm natural gas NSP-Wisconsin supply plan with gas winter on market pipelines storage storage help natural day per peak day to winter PSCW supply plan was annual 13 peak-shaving of peak percent fixed and equivalent These approximately alternative the Mcf 270000 requirements or demand on extremely cold heating natural with plant based generally pipeline one propane-air facilities have day firm charges transportation to days annually approved to natural change by PSCW the gas in supply October contract levels 2012 and Costs seeks flexibility gas with an MMBtu interstate provide requirements of provide plants with agreements LNG one NSP-Wisconsins actively increased firm day suppliers MMBtu 133153 Mcf equivalent 18408 MMBtu of file customers was 143134 interruptible agreements 2700 to to required Gas Supply provides transportation by finr space demand peak price natural hedging summarizes natural gas gas supply decreased activity the that average distribution and transportation interruption and been has delivered storage financial risk approved by cost per alternatives and economical yield In diversified portfolio that NSP-Wisconsin addition PSCW the MMBtu to rates of natural gas purchased for resale by NSP-Wisconsins business 2012 4.36 2011 5.18 2010 5.46 cost of natural mechanisms from 2013 to activities procurement include NSP-Wisconsin gas from independent and propane-air caused NSP-Wisconsin The of jurisdiction DOT the and must submit Jan 202011 operates equivalent LNG peaks for services These of firm or as categorized of peak capacity capacity requirements regulated was of approximately storage owns and also storage production Natural and gas interruptible on under capacity natural are natural requirements and 39 percent meet schedules rate occurred delivered pipeline underground to NSP-Wisconsin natural NSP-Wisconsin firm and purchases gas deliverable the of cost finds gas send-out NSP-Wisconsin meet NSP-Wisconsin PSCW the by regulated year NSP-Wisconsin and Demand maximum daily plant is odd-numbered NSP-Wisconsin January commerce Mechanisms actual Natural gas supply requirements The following in interstate NSP-Wisconsin of each projections Capability 134636 By June compliance pipeline operations Jurisdiction requirement filing beginning period gas and Areas of Agencies base-rate gas supply NSP-Wisconsin through transportation has firm natural service gas and storage transportation service contracts 2029 29 is recovered with several through various pipelines cost-recovery which expire in adjustment various years NSP-Wisconsin and/or was has delivery committed from See to approximately 1A and of $86 million such in and suppliers and short-term contract for the obligations Dec 31 2012 At purchase NSP-Wisconsin contracts these long-term utilizing of diversity of delivery in lieu under obligations include that agreements storage make payments or to gas gas supply This and transportation natural firm natural suppliers and minimize suppliers gas supply volumes purchased Canadian and Items natural specified NSP-Wisconsin domestic certain of from agreements 12 approximately allows NSP-Wisconsin lengths maintain competition to supply costs discussion of for further natural supply and gas costs PSCo Public Summary of rates Regulatory commerce DOT the and CPUC gas and natural GCA and DSMCA PSIA Effective integrity management certain in the matter for is for PSCo without natural delivered under underground is required quantities of following year costs Natural PSCo hedging assistance natural the approve rate to gas The program leak facilities in gas Act PSCo is subject retail clauses adjustment that recover meet to transportation the of requirements its rates of costs this conservation energy that and weatherization for provides credits bill time and customer PSCo In 2012 July to customers service PSCo filed an if pipeline PSCo does 2012 through The CPUC the out to close expects not CPUC with application discussions and in settlement is distribution transmission pipelines annually 2015 and with transmission associated large repair adjustment of costs replace QSP gas gas end the through gas and natural recover to projects natural primarily by CPUC gas PSCo is for natural seeks flexibility activities of natural at to supplies to were generally based day which supplies on natural natural and upstream peak on is market These 853453 MMBtu 2663340 Dec 19 2012 indices and that agreements MMBtu of meter this gas purchase services for transportation per hold reflect natural Feb on 2155547 provide current gas prices The natural pipeline under third-party facilities which held to required daily 2011 for firm deliverable storage MMBtu 726530 day The maximum meet provide firm peak day stations plan by June of those costs include customers transportation company-owned underground day The balance of the quantities gas purchase the PSCo on pipelines includes firm three gate and services file MMBtu operates file for which transportation addition obligation interstate city In 1539864 PSCo PSCos and backup MMBtu delivery with per gas upstream required gas finn suppliers MMBtu firm sales 1936810 services addition regulations also be Total purchased supplies to agreements In for requirements backup independent 1846358 MMBtu Gas Supply actively increased its natural Federal Natural Gas the PSCo has in natural changes began two to interruptible gas from are natural incurred and transportation 22400 obligations supply agreements storage approximately PSCo and supply backup for firm capacity of approximately sales to respect DSMCA PSIA the gas supply for firm PSCo PSCo purchases gas Mechanisms of purchased for energy gas relating QSP with to transport it 2013 of natural day contracting capacity deliveries and current quarter peak projects customers of first the allow established targets allows and Demand Capability PSCo terms of the 2012 review to proceedings extend costs to programs The CPUC under jurisdiction CPUC the compliance safety actual the through Jan performance the low-income recovered by that costs quarterly PSCo has are conducts to recovers program Requirements achieve pipeline FERC to full subject regulated certificate is FERC PSCo holds Cost-Recovery resource revised is to PSCo Jurisdiction of securities Conservation other GCA The customers QSP with regards Gas and Purchased Natural purchased of PSCo becoming without the and Areas Agencies and issuance services accounts interstate to Regulation Utility report the of each and supplies by October year services of each previous 12-month projecting for the year and describing 12-month reporting the period of actual quantities the and period and Costs natural gas supply decreased that have transportation interruption been approved and by and financial the storage risk and CPUC 30 alternatives economical to yield rates In diversified addition portfolio that PSCo conducts provides natural gas price The following natural retail table summarizes the delivered average cost per MMBtu of natural for resale gas purchased 2012 PSCos regulated 4.28 2011 4.99 2010 5.10 PSCo has natural PSCo purchases natural gas Items of $2.0 approximately supply gas volumes specified See by business distribution gas natural billion natural gas 1A and or to such in and for the obligations Dec 31 2012 in expire short-term various natural and/or purchase PSCo was committed from 2013 years firm gas purchases gas from approximately natural gas supply and natural At which contracts balance of long-term of discussion these include of delivery in lieu PSCo purchased 2012 During for further under obligations that agreements storage make payments by optimizing contracts storage and transportation gas 41 of delivery to through 2029 and transportation suppliers costs SPS Gas Natural SPS does not provide natural operates of jurisdiction and the gas for further but certain purchases the connecting to respect safety Generation gas service facilities with for pipeline 1A and Electric natural retail pipeline FERC the PUCT See Items Used for Facffities and generation natural gas transports facilities transactions natural gas to interstate in interstate for certain natural gas of and commerce its SPS of discussion natural to the jurisdiction Gas Operating Total and industrial retail and Transportation Total other deliveries Number of customers at Total Total Natural industrial other Revenue 225988 225408 Thousands 116611 117654 121261 343642 346669 industrial 488644 1453286 and sales per Residential Commercial per retail 84088 and 1537374 customer customer revenue Transportation other gas revenues retail per MMBtu industrial and other revenue revenue 1747153 153911 1901064 5395 1735032 152937 1887969 5281 1906459 1893250 1133888 11115253 of Dollars retail natural 137809 318294 964642 Transportation MMBtu 87599 201683 1920311 gas revenues Commercial and Total 86788 5789 customers Residential Total 139200 77848 1914522 and 2010 123835 154158 retail Transportation Dec.31 2011 1760364 and DOT end of period Residential Commercial the MMBtu of Thousands Residential Commercial of and to the Statistics Year Ended deliveries subject gas costs 2012 gas is compliance Natural Natural facilities generation pipelines per per MMBtu MMBtu 31 601298 1735186 76740 1811926 589449 1704702 77880 1782582 105.34 118.87 759 913 903 7.79 8.15 8.09 6.28 6.93 6.73 0.72 0.65 0.64 119.39 GENERAL Seasonality The demand overall in the may results operating revenues less generated by seasonal power and natural gas is affected summer and winter months and peak sales of for electric occur electricity and of on substantially when weather income Discussion Managements fluctuate conditions Condition Financial seasonal and differences natural weather in the basis Additionally Xcel milder are cooler of general peak sales months As result Energys winter and in the In the winter in gas occur have operations summer in 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additional environmental the franchise Energy available construction comply with to what are facilities have system of have the purchase facilities natural as their facilities access open can fuels such other relocating through own or operate to ability MATTERS authorizations to of Xcel water quality wastewater emissions facilities custoniers agreement each currently ENVIRONMENTAL markets wholesale also the substituting option of or the transmission the franchise While municipalization their have of option wholesale subsidiaries utility customers the purposes competitive suppliers not elected may have and manufacturing promote Energy commercial large customers addition cooling continued and industrial Energys electricity CO2 emissions 2011 approximately associated in and customers with emissions since 2010 service was is CAPITAL See AND FINANCING SPENDiNG Item for discussion of expected expenditures and capital funding sources EMPLOYEES As of Dec 31 2012 under Xcel had Energy 11028 fulltime employees See Note agreements collective-bargaining and 170 consolidated to the of which employees part-time statements financial for further 5476 were covered discussion EXECUTIVE OFFICERS G.S Benjamin present Officer Xcel October 2003 Chief 54 III Financial Inc Energy Financial Vice 54 Eves and Chief Operating November President Director Xcel Energy Services Xcel Energy Services 63 Vice Cathy Hart Services Group Xcel Energy Xcel 53 Larson Energy Supply Inc Services Vice 56 President and Wave Field Marvin McDaniel Previously Jr 52 Talent and Technology Xcel March 2012 and to to to of Resource Resource President 2006 and Planning President Services Corporate to and Planning and Vice present Inc President SPS December Director President Energy 2003 and Vice November 2002 Business Group 2009 to PSCo Vice present Previously Xcel President Energy 2006 February to President Inc November Services November 2007 and 2006 to Inc Services President Inc Xcel Vice to to President Services Inc February 2006 Energy 2004 April 2011 September 2011 September 2006 February and Chief present Previously Transmission State Xcel to Vice Energy 2008 August President NSP 2004 and Chief Financial President Business Inc Energy Xcel Unit 2003 February Senior Vice and Business to July Energy Officer Xcel 2004 January Inc and 2003 to and 2007 February Inc to 2003 August Corporate Inc Energy September to Vice 2004 January Controller to present of Finance President Chief Interim Wave Rogue 2011 September 2011 Financial Officer October Inc Software 2000 to Senior Vice Vice and President at Officer Xcel Xcel July Vice Energy 2007 to President plant Public President Officer and Compliance responsibilities Chief Administrative Energy Services Services Inc 2009 August Xcel Officer 2009 to President and Controller Energy 2009 Markets to Unit Xcel to to President 2012 President Human Energy Services Energy present August and Vice Controller Xcel Assistant Business 2011 2011 Vice 2011 2012 August 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Operations 2004 Services October to to and 2011 August Executive and Treasurer August 2009 Vice present Previously 2009 Construction President President President and 2009 Inc Energy to Officer November to PSCo March Relations 2000 Inc 2011 2011 September and Chief Executive March to to 2011 2002 Inc Energy August Officer November PSCo December November to Xcel Secretary September 2005 Energy Jurisdictional Vice Customer Rogue 2008 August Madden Previously Inc July2009 President Senior Vice September Teresa SPS Officer Xcel President Minnesota Services and Construction Design Kent Vice 2009 to July Director Financial December2009 to to Vice 2009 August Services Energy Officer 2009 2006 to Chief Inc Energy Unit Xcel August and Corporate President Officer Xcel Chief Executive SPS 2008 President 2Q09 Inc November 2002 to July 2006 and Managing Inc August 2000 to November 2002 President Director Chief Operating 2007 Vice 53 Hill Riley and and Business PSCo November Inc November Services Energy Vice Officer XceI Inc August Energy Inc December 2008 and Treasurer Officer Acquisition Officer Xcel Energy Markets Officer Acquisition Board President and Chief Executive December President Chief Executive 2009 to Officer Energy Director the Xcel Officer David of Chief Operating May 2004 May 2004 to Chairman President and and Chief President and Fowke Previously and Chief Nuclear NSF-Minnesota Licensing July 2012 manager Nine Mile Service Enterprise Officer Xcel September to September Point Station Group Hope 33 and 2012 2012 to Energy Inc February Services February Monticello 2013 Site Vice Vice Constellation Energy 2004 Salem between the plants 2013 to present President Engineering President to years in May May 2007 of 1999 and to 2007 and to July corporate 2004 Roy Palmer 54 Senior Vice 2011 Vice Previously present Government Affairs Xcel Energy 52 Poferl Judy Vice Regional Xcel Affairs August Director Financial Director Financial Vice Mark George Tyson Reporting Revenue 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Unit Xcel December 1996 to that in Oversight our industry may adversely be further the risks cross-cutting is responsible As described risks management communication and executive is Energy the to Energy Public Affairs State Director to present Previously Xcel Inc August2001 Services Services Energy to November Inc 2001 arid 2001 August officers subject to financial business together with that not or financial or directors the variety condition other of many of which risks and information of results set forth are beyond are operations and in this report our control further described in future reports below that risk management process and more fully below that these risks risk are condition known presently in the or are not believed currently to be material that may future Processes for identifying such Our Xcel affect uncertainties and Related The goal of Xcel Energys accountable the Xcel 1998 2011 September Inc September 2009 to September 2011 Vice Inc August 2008 to September 2009 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with which climate and/or regional could compliance continues to be legislative and litigation create laws financial introduced risk as at either the GHGs reduce related or to electric our state and negotiations responses regulatory to requirements and in international participate Such change federal stabilize to programs change Change climate under to regulation more in or adopted Congress The U.S Climate on result announced laws through existing subject regulate GHGs and CAA the under that mandatory that EPA to EPA for the duty December In emissions vehicle motor or climate in federal level to 2009 from issued GHGs the to GHGs regulate EPA the contribute 13 Defense damages to the emissions from to applicable costs may be consolidated cannot that with such flows and to additional subject vehicles In 2011 January which sources are threshold certain power plants existing at this time and also can litigation financial climate An statements financial be determined associated of operations cash results and lawsuits change Note regulations emissions This atmosphere duty motor light GHG that finding in the although rulemaking expenditures capital GHG propose initiate this described affect will it will party to those substantial many of uncertainties and legislation in multiple of on accords could have an impact the costs incurred timely recover recover material are facilities or all effect also costs part management able of on our subject These be all to related the cost results to include but are to complying of capital form the lead any condition to overall future could be possibly costs in outcome are Such not including any of these cases payment of require significant such if lawsuits change adverse or payments recovered emissions cap or the to specific of or state are costs the U.S through on incurred to the us degree and any the our comply with or our may not be able factor do regulators the of carbon treaties is important We GHG GHG offsets impact international imposed If which to indirect The enacted whether including Another ultimately requirements imposed OM level sources regulations that factors be will or regulations number of outside operations federal legislation on GHG requirements regulatory investment change depend of emission allowances regulatory with climate will we do not have they with what regulated allocation extent comply mandates ability not allow us it could to to have of operations number of proposed significant and cooling to the in and our customers prices While coal to us the options gas and regulation recover on economy the compliance natural when and regarding regulations sectors as recognized not and emissions climate change to rates sources may pipeline climate change regarding welfare created the penalties regulated impact and currently require There be to announced also expenditures could ash to Framework Convention to steps when similar substantial We public responses Numerous interpretations likely health finding The EPA has to other have lines and of all could risks for GHG emissions of new and modified large permitting requirements became effective stationary to construction of new power plants or power plant modifications that increase emissions above new EPA are could distribution these operations but not risks such operating years taken endangerment introduced Nations are next few the regulatory GHGs of effects new and facilities generating and and concern awareness public the could and related regulations legislative or mitigate We by insurance or sites of our some against and addition In and other accidents in costly reduce not industrial centers losses result may hazards inherent financial pollution impairment covered fully transmission that risks Policy Risks We may is not gas of variety substantial we maintain insurance practice natural cause environmental property events these include activities could numerous greater Additionally Public to involve operations distribution industry For our of operations distribution problems which damage significant accordance results and are water timely recover limited not intake all costs to rules The systems related to and potential associated costs complying rules that will with emissions of of investment with 40 to regulatory our impact SQ and coal-fired NOx comply with these mercury rules requirements imposed and could on other regional us be generation haze ozone substantial We it Increased risks The Energy impose Act increased financial have has in formal training CFTC on such regional on our and and the prices energy consumption recession the capital or as and capital which risk also may could may affect above result increased capital significant on our to with The which insurance we wildfire to as the in and insufficient we be will the to attempt interaction our with sufficient to The year did it occur potential this risk mitigate markets the ensure on to ability of economic growth through FERC under violations against sector liquidity lead commodities for basic sufficient acquire may in increased to respect in decline markets discussed are as in result detail greater in unemployment bad debt to increased needed supplies result financial to potential leading and bankruptcies which capital with also may in the economic prolonged uncertainty activity Instability to raise of and activity of economic level ability financial demand the our The consequences conditions level future customer effect these for utility such infrastructure the Additionally affected also been may have in the under We infrastructure have the also of cost those and standards by these as additional for threat costs and the availability higher premiums and costs such to as and could for for security physical NERC with to and security implement additional costs operating have operations plant reliability to comply clarified more for costs compliance capital of insurance and insurance may cause for our subjected increased operating additional implemented our assets which has incurred conditions may be targets of Any such disruption systems insure requirements increased incurred may experience and terrorism and capital basis are we serve areas to repair potential they events normal operating information we have already design already protection costs The While NRCs higher deductibles geographic additional our business and facilities in disruptions some portion of our energy products of operations we may experience risks plants personnel distribution significant results on of terrorism or or distribute produce and and has obtain to revenues material threats transmission and ability condition to of terroricm acts protection or by transmission Because system we an event disruption decrease condition electric regional our business utility may be caused financial decrease critical particularly railroad significant reviews program lower and our capital increase an impact infrastructure to interconnected neighboring rupture able impact of an now to may decrease restrictive wildfire policy losses to In the addition terms become For example difficult or obtain of disruption can subject reliability incident during participants requirements that lower sustained of cost by facilities our security industry events negatively market several economic sustained our revenues may impact disrupt have with critical are storage response additional NERC expensive to regulatory function worldwide in pay timely our nuclear power associated insurance part in including and the all our compliance markets the has activity etc financial and could expenditures standards could that in risks security fuel plants impact our plants and exacerbated ability economic activities material serious and mandatory may be higher than expected generation terrorist If The FERC orders now are our business affect Our operations could be impacted by var due to localized or regional events Our rules compliance result adversely may be aluminum copper commodities violations for and rules statutes standards reliability FERC the or FERC of electric results As with guarantee commodity may section conditions worldwide steel no national by local may impact customers Further and is NERC manipulation impact of recovery otherwise market Current economic which there addition financial million practices negatively affected uncertainty energy of market $400 In the or for violation authority day per Risks are operations recession penalty entities its However Economic conditions could Our of our business negatively impact operations exceed prohibited jurisdictions Macroeconomic by case civil violation per NOVs provided one pending penalties FERCs the effect could penalties million penalties material The FERC and of $1 penalties potential could of regulatory flu in and epidemic revenues face severe sudden the storm and within and grid interstate our generation risk of severe significant natural possible temperature increase or additional costs or to results 41 on repair and due local to natural in wind assets which system could or caused any by facility disruption Any such have fuel sources distribution transmission generation neighboring or other gas disruption generator or extremes decrease infrastructure pipeline of business loss our operating systems significant gas transmission systems the outage of pipeline work force could impact are of actions disruption material could companies on such result our in The degree execution and we which to Its results difficult We operate and network in to In assets affected by well as new of exposing us system disruption business In additional markets processed resulting Rising energy Higher fuel the oil as of our results could costs of electric Because weather have security result to access we may providers over may to assets financial to to We reporting are unable and network our technology to our level cyber significant and infrastructure the including were systems functions the quantify State our supply and incidents business gas potential may cause disrupt security critical fulfill Federal and the revenues systems If and or negatively impact actions These related cyber or information be unable both natural grid also potentially technology be vulnerable incidents security of an interconnected part could at in and or compliance our information protect they process decrease or indirectly operations transmission scrutiny subsequent or material are pipelines data individuals infrastructure or directly our customer operations regulatory other collect usage delaying our development electric regional threats in repairs insurance gas providers receive could controls negatively impact customer potential to or fail including impact of cyber gas gas is utility heavily quarters related when weather conditions on our to collection We seasonal businesses used our on is for often are if of fuel unable cost for requests debt expense are service territory heating season are milder in the condition and quarterly seasonal in the greater residential the financial the flows cash bad increase which recoveries to predict as future are recovery could or material In addition the ultimate for fuel of such impact higher on our impact with expenditures compared prices unsuccessful have also on prices flows for electricity throughout patterns our of operations results and/or timing of on our business our impact demand in the or cash natural Demand natural effect internal would cyber unauthorized service service action designed third-party party the be other by human error Cyber disrupting natural as of could systems create energy and and systems assets to customer data capabilities facilities well as of such claims or third and distributing existing incident security an event information assets may fluctuate fourth adverse the as an impact results and performance fuels significantly reduce operations Our operating party measures certain could prices could purchases impact regulatory third of such that other well cyber sources or of our potential security of impact fuel and of operations Delays results to projects condition technology infrastructure shareholders technology those caused including and and company contractors infrastructure transmitting financial on our business could costs incidents security including information facilities our information sophisticated we use our systems dependents our systems in improvement anticipate or failures or those incidents security also assets maintaining effectively the by penalties gas disability be breached Our we we maintain these storage our generating or capital or other e.g costs other assets cyber fuel their on the through potentially events impacts operation of information and events certain on our business of business sensitive employees and and corresponding for natural Although our caused to quantify incidents course As generation and transmission systems to liability unable are security fuel facilities addition the distribution limiting continued requires of impact associated effect unforeseen to response financial and material ordinary information the events have otherwise process deliberate or infrastructure pipeline We the as unintentional construction in the regarding customers harm our businesses by could that industry addition Our generation transmission physical of such could in operations determine in part magnitude breach of and use disclose store dispose and personal information the security infrastructure will plans predict regulated highly maintain day-to-day to continuity or cyber incident cyber able are of our business and and winter and weather summer commercial significant Accordingly results and our cooler and be patterns can adversely have winter months amount the of have summer or cash 42 and can heating operations in the of operations basis flows natural for this impact product are generated mild winters on weather our cooling and with gas revenues historically Unusually material associated demand by milder affected depends and heating heavily recognized less operating revenues in the and summers could upon first and income have an lB Item Unresolved Comments Staff None Item Properties of the utility of the electric all Virtually all Virtually Electric plant plant NSP-Minnesota and NSP-Wisconsin PSCo and SPS of property is subject is subject to the to the lien of their lien of their first first mortgage bond mortgage bond NSP-Minnesota Summer Net and Location Station indentures indentures Stations Generating Utility of property utility Unit 2012 Dependable MW Fuel Installed Coal 1968 511 Unit Coal 1976 680 Unit2 Coal 1977 682 Coal 1987 507 Nuclear 1971 554 Nuclear 1973 521 Nuclear 1974 519 1955-1960 232 Capability Steam A.S Minn King-Bayport Unit Minn Sherco-Becker Unit Minn Monticello-Monticello Prairie Unit Minn Island-Welch Unit Unit Black Minn Dog-Burnsville Various Gas Wood/Refuse-derived Various fuel 36 Turbine Angus Anson-Sioux Black Dog-Bumsville Blue Lake-Shakopee High Bridge-St Inver Hills-Inver S.D Units Mmii Units Minn Units Minn Units Falls Paul Grove Riverside-Minneapolis Various Coal/Natural Units locations Combustion Units Heights Minn Minn Units Units 17 Units locations Natural Gas 1994-2005 327 Natural Gas 1987-2002 271 Natural Gas 1974-2005 453 Natural Gas 2008 534 Natural Gas 1972 282 Natural Gas 2009 470 Natural Gas Various 101 Wind Grand Meadow-Mower Nobles-Nobles County Minn County Minn 134 67 Units Units Wind 2008 101 Wind 2010 201 Total Based on NSP-Minnesotas Agency expenenced Refuse-derived This net fuel is capacity dependable ownership made is oniy available capacity is of failure significant from 59 of municipal when In percent its wind nirbine solid November generator 2011 and Shinto exciter Unit jointly owned systems See NoteS to the by NSP-Minnesota consolidated and Southern financial 6982 Minnesota statements Power Municipal for further discussion waste conditions are sufficiently high enough to support the noted values generation above the Therefore on-demand zero NSP-Wisconsin Summer Net Station Location and Unit Fuel Installed Steam Wis Bay Front-Ashland French Island-La Combustion Flambeau French Crosse Units Wis Coal/Wood/Natural Units Wood/Refuse-derived Gas fuel 2012 Dependable Capability MW 1948-1956 56 1940-1948 16 Turbine Station-Park Island-La Wheaton-Eau Unit Wis Units Wis Wis Units Falls Crosse Claire Natural Gas 1969 Natural Gas 1974 122 Natural Gas 1973 290 12 Hydro Various locations Refuse-derived 63 Units fuel is made Hydro from municipal solid waste 43 Various 135 Total 631 PSCo Summer Net Location Station and Fuel Unit Installed 2012 Dependable MW Capability Steam Cob Cob Units Coal 1951-1955 144 Units Coal 1957-1968 504 Unit Coal 1973 325 Unit Coal 1975 335 Unit Coal 2010 511 Coal 1979-1980 Coal 1965-1976 237 Coal 1981 505 Coal 1964 184 Coal 1948-1954 Arapahoe-Denver Cherokee-Denver Cob Comanche-Pueblo Cob Units Units Hayden-Hayden Cob Unit Pawnee-Brush Cob Valmont-Boulder Cob Unit Zuni-Denver Cob Unit Craig-Craig Fort Cob Spruce-Aurora St Units Cob Vrain-Platteville Various locations Units Cob Mountain-Keenesburg Rocky 60 Turbine Combustion Blue 83 Units Units Natural Gas 2003 264 Natural Gas 1972-2009 969 Natural Gas 2004 580 Natural Gas Various 172 Hydro 1967 210 Hydro Various Hydro Cabin Cob Creek-Georgetown Pumped Units Storage Units Various locations 26 Wind Cob County Ponnequin-Weld 37 Wind Units 1999-2001 25 5134 Total Cherokee Unit Based on PSCos ownership interest of 67 Based on PSCos ownership interest of 10 percent Based on PSC0s ownership interest mis net was is capacity dependable only taken out of when available is capacity service in 2011 October Cherokee Unit wastaken out of service in May 2012 of Unit percent of 76 percent wind conditions of Unit are and 37 percent sufficiently high of Unit enough to support the noted values generation above Therefore the ss Summer Net and Location Station on-demand zero Fuel Unit Installed 2012 Dependable Capability MW Steam N.M Cunningham-Hobbs Jones-Lubbock Texas Maddox-Hobbs N.M Moore Unit Unit Texas Units Texas Texas X-Earth Combustion Units Units County-Amarillo Nichols-Amarillo Plant Units Texas Tobk-Muleshoe Units Texas Harrington-Amarillo Units Coal 1976-1980 1018 Coal 1982-1985 1067 Natural Gas 1957-1965 254 Natural Gas 1971-1974 486 Natural Gas 1967 Natural Gas 1954 Natural Gas 1960-1968 457 Natural Gas 1952-1964 412 Natural Gas 1968 Natural Gas 1998 212 171 112 46 Turbine Carlsbad-Carlsbad Cunningham-Hobbs N.M N.M Unit Units Jones-Lubbock Texas Unit Natural Gas 2011 Maddox-Hobbs N.M Unit Natural Gas 1963-1976 Total Construction of Jones Unit was completed in 2011 44 10 61 4306 Electric Conductor overhead utility and underground transmission Miles and distribution NSP-Minnesota 500KV 230 6388 than Electric 115 utility 1568 7129 1737 KY 82963 transmission and distribution substations at 32090 mains utility NSP-Wisconsjn 3Legal normal Note 22067 PSCo SPS 230 WGI 2236 2243 11 21542 Proceedings course the 426 PSC0 NSP-Wisconsin 9732 Additional 11479 73813 137 Distribution of 4923 204 NSP-Minnesota Transmission Item 6805 9684 Dec 31 2012 at Miles estimate 1614 12228 Dec 31 2012 349 Natural gas See SPS 1152 NSP-Minnesota the Dec 31 2012 at PSCo 281 Quantity Item miles 92 115KV Less conductor 1801 KY 138 in NSP-Wisconsjn 161KV In measured 2917 KY KY 345 lines of business probable various of settlement consolidated financial cost and lawsuits or other claims have arisen for disposition such Xcel against Energy Xcel Energy has recorded claims and environmental proceedings an matters Information 13 to the Item and Note other regulatorymatters Item 4Mine 12 to the statements consolidated for further financial of discussion statements for legal of proceedings discussion involving See and rates utility Safety Disclosures None PART 5Market Item for Registrants Common Equity Related II Stockholder Matters and Purchases Issuer of Equity Securities Quarterly Xcel of Stock sales Inc.s Energy common prices common shareholders based those during Data on the stock of record NYSE is as the New York Stock Exchange Dec 31 2012 was listed of Composite on Transactions approximately for the quarters NYSE The 73414 The of 2012 and 2011 symbol trading following and are the the dividends quarters 2012 Low High Dividends First quarter 27.93 25.92 0.2600 Second 29.12 25.89 0.2700 29.92 27.25 0.2700 28.34 25.84 0.2700 quarter Third quarter Fourth quarter 2011 Low High First quarter Second Third quarter quarter Fourth quarter 45 is Dividends 24.67 23.17 0.2525 25.39 23.38 0.2600 25.60 21.20 0.2600 27.78 23.48 0.2600 XEL reported The high declared number and low per share Xcel to Inc.s Energy stock preferred the is financial consolidated The following investment in and each On Oct 31 2011 on vehicle The EEl Investor-Owned TSR Dec 31 2007 Index the Among stock OF Xcel amount of common redeemed with Stock Price reinvestment includes 51 currently COMPARISON Inc discussion of Xcel Composite and the on Energy common on Poors 500 Electrics Xcel for further statements Standard the restrictions place Incorporation our cumulative compares Index Electrics of Articles outstanding the cumulative Index all Inc.s over dividends stock its dividend last five can pay See when Item and Note policy of total return the it stock preferred the fiscal EEl Investor-Owned years assuming $100 dividends and companies broad is of measure industry performance CUMULATIVE TOTAL RETURN YEAR Energy of Energy of series all Inc the EEl Investor-Owned and the SP Electrics 500 200 i.... Ti 2007 2005 2009 XceI $100 invested Dec 31 on 2007 in stock and Energy Inc EEl Investor-Owned SP Electrics 500 Securities Authorized Information Energy Inc.s required Proxy for Issuance under Item Statement for 2013 aSP EFlFiectrks including 2012 500 reinvestment of dividends 2008 2009 Fiscal 2010 years ending 2012 86 104 120 147 100 74 82 88 105 100 63 80 92 Compensation Authorized Annual Meeting for 148 108 109 94 Plans Issuance Under Equity Compensation of Shareholders 46 Dec 31 2011 100 Under Equity Securities its 2011 2010 Inc index 2007 Xcel I0iergy which is incorporated Plans is contained by reference in Xcel UNREGISTERED Purchases SALES OF EQUITY Securities of Equity The following the and by the Issuer provides information table 12 of to Section Act Exchange about Purchasers Affiliated our purchases year ended for the AND USE OF PROCEEDS SECURITIES of securities equity that are by Xcel registered Inc Energy pursuant Dec 31 2012 Issuer Purchases of Equity Securities Maximum or Total Number Shares Total Number of Shares Period Feb Paid Purchased 12012Jan 12012Feb Jan March 31 2012 29 2012 March 12012 12012Dec April 31 31 as Shares of Publicly Be Announced per Dollar Purchased Part Share Plans May Purchased or of Value That Yet Under the Plans or Programs Programs 26.69 17487 2012 Price Average of Number Approximate 26.42 700000 2012 Total 717487 XceI Inc Energy The XceI Inc Energy of awards vesting one of or its agents periodically purchases common shares in order to satisfy under obligations the Stock Equivalent Plan for Non- Directors Employee Board under of Directors Xcel the approved Inc Energy 2005 the repurchase Long-Term of up to 700000 Plan Incentive of shares Purchases common were stock authorized for the be to issuance of made in the shares open itt market with connection pursuant to the Rule lOb-18 Item Selected Millions of Dollars Financial Thousands Data of Shares Except Per Share Data 2012 2011 2010 Operating revenues 10128 10655 Operating expenses 8306 8873 905 Income Net from continuing operations income available Earnings Weighted to common common average shareholders shares 2009 2008 9644 11203 8691 8176 9812 841 752 686 646 905 841 756 681 646 905 834 752 677 641 10311 outstanding Basic 487899 485039 462052 456433 437054 Diluted 488434 485615 463391 457139 441813 Earnings per from continuing operations share Basic 1.86 1.72 1.62 1.49 1.47 Diluted 1.85 1.72 1.61 1.49 1.46 Basic 1.86 1.72 1.63 1.48 1.47 Diluted 1.85 1.72 162 1.48 1.46 Earnings per Dividends Total share declared per common assets Long-term debt Bookvaluepershare Return Includes Sec common to fixed earnings capital Exhibit 1.07 lease equity charges 1.03 1.00 31141 29497 27388 10144 8849 17.44 18.19 on average Ratio of share 10.4% 2.8 obligations 12.01 47 10.1% 2.8 0.97 0.94 25306 24805 9263 7889 7732 16.76 15.92 15.35 9.8% 9.5% 9.7% 2.7 2.5 2.5 Item Managements Segments and Business Continuing Operations Xcel Inc Energy Dakota South Dakota natural the Xcel housing and Inc.s nonregulated and Condition Xcel 2012 In company gas customers natural Results of Operations in portions WGI and continuing These states of WYCO Along with facilities Energys in eight serve customers utilities and Wisconsin compression continuing regulated Energy tax Texas storage gas pipelines comprise and electric PSCo and SPS These NSP-Wisconsin North holding utility serve that of Financial Overview Organizational public is utility subsidiaries and Analysis Discussion an included operations utility subsidiaries interstate venture formed natural gas four Mexico with and these company pipeline of activity Minnesota New CIG to develop Colorado Michigan joint the NSP-Minnesota are lease companies operations utility which Eloigne is subsidiary invests in rental housing that projects for qualify low-income credits Forward-Looking Statements historical for the Except 2013 the including anticipate should are made cause similar actual results in delay customer events bodies regulatory the employee Annual NRC work listed other financial on to clean overall the time and 99.01 Exhibit and foreign and degree to policies those settlements filed with enters the SEC including Factors electric and cost natural entry of and of and in gas actions of or cost Operations interest the geopolitical affect approval Risk Factors of environmental and claims availability financial of that rates to obtain timing effects they could U.S economy in the and date that inflation has impose or the Results of Continuing the down initiatives or potential the subsidiaries its weather investigations operations date extent of as only Energy the words the including slow ownership by regulatory bodies Factors Affecting that and Xcel regulatory competition costs of risk where unusual or operation which affecting imposed in reports and after Inc including subsidiaries legislative asset proceedings including under on by statements possible speak conditions in areas factors occur Energy the including competitive an impact administrative Inc statements of Xcel policies its document in this that changes ability Inc and Energy speed items described identified general economic the industry energy federal accounting reflect to limited agencies or have by Xcel Energy to environmental rating operations be are analysis forward-looking outlook plan project objective them Such and discussion following by requests pending capital the Item other lA of risk this hereto on focuses strategy three core objectives stakeholder alignment Earn fair return of legal not are and the to in the assumptions Plans Strategic in safe affect intended are update in the state rates nuclear Form 10-K and Invest Achievement on and vary materially Forward-looking served by Xcel regulatory factors Energys corporate Obtain of our or credit discussed matters expenditures and taxation of that effects impacting force Managements Xcel structures from time Report an impact but capital of terrorism acts have conditions markets to conditions fiscal actions in the may results on the uncertainties may intend include impact terms business war and and any trade risks obligation materially their recovery recovery costs markets factors and conditions including before differ competition compliance Actual report certain and assumptions expect expressions favorable growth investment guidance in this to subject estimate to business additional are BPS year fluctuations financing on that we do not undertake and monetary or full believe and contained statements statements forward-looking our regulated these reliable on strategic energy at businesses utility our utility plans is and investments designed reasonable price to provide our Below is investors discussion strategy 48 with an of our three attractive primary total return and our customers objectives and how they support our with Obtain holder alignment stake Successful execution initiatives prior before making of our long-term Delivering critical excessive decisions or actions taking our transmission and to is it to reliability Xcel We outage and employee public for support that critical investments capital related reduce believe related investment for large and alignment and customer to and regulatory stakeholder performance safety decisions long-term Energy legislative uncertainty by achieved is satisfaction our power plants natural renewable energy in and gas pipelines system distribution environmental Pursuing risk large ensure stakeholder obtaining To avoid excellence operational Proactively with begins strategy action to taking emissions and by reducing leadership expanding cost-effective maimer and Creating value reasonable Invest After in that intended stakeholder support within will it earns The third filing reasonable that to evidence an Our Since have the is for We at Xcel we we public our environmental conservation and renewable to certain Xcel our regulated 2013 impactat energy programs We that percent or Xcel investments 2014 and safely amount through plan amount the expand on time the Energy investment capital these sure projects base rate of approximately rate these the Our environment make to complete projects 2017 the on work hard to businesses utility through our impact striving Energy annual on our of We and on returns commissions will believe Xcel without and we DSM filing on which Xcel and are pursuing over the is strategy and to programs rate based on earn rate rider is case and recovery timely outcomes regulatory that regulatory our business and for rate riders provide reasonable constructive Energys to operate necessary investments confidence us provide costs approval regulatory and costs investments utility provide recovery objectives treatment it or anticipate debt the right this key is last several years are strategy percent to continue Beyond we are of positioned to deliver Energy combination through percent percent ratings annually in the increase to to in the objectives of an attractive earnings to growth total return and to dividend our shareholders yield percent and percent BBB to range Our ongoing earnings have grown 2005 In addition our current since BBB timeframe flexibility to are rate of earnings growth this allow Xcel to credit financial 3.3 subsidiaries having been increases these 2014 total return EPS growth annual unsecured believe attractive have dividend utility plan should strategic an objectives positioned we reduce and projects in from demand customer average invest businesses reliability investments fair return utility corporate achieved 2013 Therefore meet to is strategy utility effective with obtaining of financial approximately and are through occur sheet senior grown Energy believe least this has these designed along to deliver long-term successfully dividend of its system and cost to earn recovery Deliver an annual Maintain and reducing total return of financial Deliver We is regulatory proposition our DSM like investment requests our in improve at utility our that attractive 2005 infrastructure choices of our billion selecting result grow for achieving execution value by on investment allows of reasonable Successful $13 our customers to strategy rate believes Energy assumption Provide base return mechanism Xcel on our of our phase reasonable our with next phase compounded percent through 2017 to return fair will return the infrastructure As budgets approximately Earn our our customers to by modernizing customers approximately available energy value established Energy invest modernize to of renewable provide our customers while providing business utility obtaining projects is our for cost we the continue to range of percent dividend to deliver 49 to at an percent rate base faster rate that anticipate attractive approximately senior unsecured and dividend growth and earnings in the total future return growth of could 6.8 and our percent debt credit percent to moderate while ensuring strong ratings percent Should balance Review Financial discussion and The following financial the future should It consolidated be read and operations in represent rather our direct GAAP under that non-GAAP This non-GAAP determined Results are flows the on those the during factors had that consolidated material or periods presented accompanying and assets the are financial should GAAP income or net common as the loss shares and indicator of by attributable on Xcel effect have to expected and statements the Energys material related in impact notes to to an as the for the financial alternative allocated to and Xcel believes uses that of our contribution consolidated Energys by subsidiary management Energys management performance not recognized of each Energys but subsidiary measure interest Xcel period such to financial is controlling Xcel The earnings and EPS of each Inc Energy liabilities subsidiary results earnings projected not be considered an and assets outstanding of details actual of Xcel shares in the whole BPS liabilities as Inc to evaluate common are interest legal and provide to evaluate with direct Energy measure traded publicly dividing Xcel investors financial this subsidiaries EPS diluted fully the this performance operating of Opetations The following Diluted to accordance in by measure useful is that in diluted fully financial measurement interest calculated is average with conjunction The only common equity securities discussed below do not subsidiary weighted cash statements financial represent focuses management by analysis of results condition summarizes table Loss Earnings the BPS diluted for Xcel Energy Per Share 2011 2012 2010 PSCo 0.90 0.82 0.86 NSP-Minnesota 0.70 0.73 0.60 SPS 0.22 0.18 0.17 NSP-Wisconsin 0.10 0.10 0.09 0.04 0.04 0.04 1.96 1.87 1.76 0.14 0.15 0.14 1.82 1.72 Equity Regulated Xcel of unconsolidated earnings continuing utility Inc Energy and other subsidiaries operations costs Ongoing diluted earnings per share drug Prescription per share Earnings Earnings GAAP Xcel per share Energys to and analysts subsidies provisions of retiree benefits per share tax 1.85 1.72 1.85 1.72 1.61 0.01 ongoing earnings provide for reporting results meaningful power Xcel core earnings Board to the of of earnings comparison Energys Directors and results management uses ongoing and when communicating 1.62 is earnings its internally outlook earnings to Part In drag health equivalent $17 care costs to the third quarter prescription plans that million had or of been Xcel 2012 drug plan This accrued Energy since 2004 of income $0.03 per share and tax tax implemented restored strategy portion of was expensed strategy the in tax As 2010 related benefit to the allocation with associated result Xcel of federal Energy benefit Earnings March tax In retiree GAAP generate Earnings benefit. Energys approximately to that fundamental analysis GAAP for prescription 2010 Adjustment Medicare to drug funding of Xcel recognized operations operations investors 2012 Adjustment Prescription believes Energys 1.62 001 0.03 settlement per share management planning and COLI and Part from continuing from discontinued of Xcel financial Medicare benefit diluted earnings representative for tax 2010 revenue to the Medicare the extent Part of previously recognized Patient to help of tax the federal coverage benefits and Protection offset of cost subsidies beginning relating to the Affordable new received in the 2013 federal 50 Care legislation Act was signed One of by plan sponsors Xcel Energy subsidies these that expensed during the into provisions provide law The law reduces retiree approximately first quarter of includes the prescription $17 2010 deductibility drug million or $0.04 CULl with settlement COLI its 2010 back year to tax $9.4 approximately cash settlement agreement closing In of Xcel 2010 Xcel Xcel settlement Company Energy increases and PSCo PSCos effective May 2012 due ETR to the ongoing the of and expenses SPS depreciation 2011 Ice Energy electric PSCo of The electric rates partially 2012 SFS expenses and ongoing partially were 2012 The in COLI IRS of account related final million $0.3 to claims all COLI program discontinued were of 2012 January Ongoing not America asserted Under by the terms Insurance Life income to subject increased earnings reflect warmer The than were Hills our continued normal is winter Corp offset higher increase the The taxes largely due to in our investment increases weather electric expense is utility in of revenue and expenses and of half OM due lower in the to the taxes higher property rate increases second rate increase wholesale primarily decline higher rate increase result the during an to by decreased decrease sales 2012 the is weather offset depreciation electric by due primarily partially quarter The of milder was $0.03 per share first partially 2012 for impact increase increase the during share the OM by higher ETR New Mexico and higher year for flat 2012 Ongoing were earnings positively impacted rate by expenses $0.10 increased normal than $0.04 per per summer expense by higher partially subject expenses $0.01 effective for for share weather 2011 months 2011 Ongoing Xcel across offset by and share first for quarter decrease the is 2011 The 2011 OM in due to the increase the 2011 due expenses months The to primarily territories and and June expenses summer due primarily in OM to higher interim incentives program and property taxes electric weather in expense rates higher in the and conservation adjustments higher seasonal year temperatures is to higher business utility the due rate increases interest depreciation of increase Dakota warmer summer increased implementation of of warmer regulatory is service Xcel Energys other and North net of and for earnings Energys impact share Minnesota expense of favorable $0.13 per in refund depreciation per in the to The and lower throughout earnings increased 2011 OM share summer taxes property NSP-Wisconsjn offset the which cases Black earnings were ongoing in the higher in early rate increase NSF-Wisconsin of expense reduction proceeds 2012 for rate decreased earnings per by for with decreases $0.04 earnings NSP-Minnesota by higher depreciation associated dispute statements by Provident and Reassure million factors weather winter weather offset offset of wanner SPS earnings increased retail to 2007 the PSCos and with Provident with million share per share agreement These increased decreased were effective offset IRS the agreement $25 various positive $0.08 per sales partially ongoing result expense NSP-Minnesota to 2010 earnings rates related on Earnings wanner summer normal 2012 January as PSCo seasonal depreciation rates with states property Texas further The higher margins were partially offset by in expected increases taxes The increase in expenses was largely driven by capital investment various 2010 2012 Overall margins IRS and property taxes expense earnings with Comparison Inc.s Energy associated paid $25 2010 in these offsetting NSP-Wisconsins effective the follow and property taxes expense increases settlement of than depreciation January NSP-WLcconsin of Xcel finalized lawsuit $0.10 the long-term power warmer ongoing effective EPS Ongoing increased NSP-Minnesotas Texas was increased impact of impact of $0.05 expenses unfavorable SPS 2007 through conclusion earnings and expiration PSRI As by and recognized million by Partially NSF-Minnesota OM $0.7 earnings driven OM expense with settlement managed in principle Inc PSCo and PSRI were ongoing margins lower and 2011 Overall depreciation 2003 years approximately with in electric business tax for Certain Items Adjusted 2012 Comparison Ice an agreement received Energy Energy in resulting Earnings reached PSCo reached and owned were of this review Upon completion PSRJ recorded net non-recurring tax and interest charge of in 2010 The Tax Court proceedings were dismissed in December 2010 and January 2011 Upon Xcel covering Inc Energy policies Energy Inc PSCo and PSRI entered into Inc PSCo and PSRI against Provident in Energy the million 2011 in IRS the 1993 Xcel COLI These settlement during dating 2007 During program revenues partially primarily offset by due higher to the OM property taxes earnings increased OM expenses and $0.01 depreciation per share expense 51 for 2011 The increase is primarily due to higher electric Changes The following Diluted discussed are Loss Earnings GAAP 2011 summarizes table which periods EPS Diluted in Lower effective Lower conservation Higher AFUDC tax Higher operating Higher depreciation Higher taxes Diluted DSM expenses COLI diluted gas margins Higher operating and DSPP Dec.31 per share taxes Higher conservation Higher depreciation including of Millions Ongoing drug income GAAP Diluted 1.62 vs 2010 0.04 benefit and plans the income taxes and DSM expenses and amortization interest and 2010 common generally offset issuance equity in reconciliation revenues of preferred tax per share of ongoing 1.72 and GAAP earnings benefit Medicare and Part COLT Prescription tax per share Earnings Earnings per share diluted Includes the earnings per diluted Medicare from continuing dividend 2011 on and Part 16.9 0.5 905.2 841.4 905.2 841.2 2011 Dec 31 756.4 4.5 751.9 COLI settlement 1.62 0.01 0.03 1.85 operations 3.9 755.8 2010 1.72 1.72 1.61 0.01 operations 1.85 preferred ended 2010 840.9 1.82 per share requirements years 888.3 2012 from discontinued earnings for the 0.2 per share benefit share operations Per Share earnings drug and settlement operations Loss diluted 0.04 stock 2012 from discontinued Earnings 0.08 0.06 0.05 0.04 premium on redemption diluted earnings provides 0.11 earnings Ongoing GAAP 0.01 per share Dollars continuing Loss 1.61 operations earnings Prescription Total from continuing expenses and ongoing table 1.62 0.01 operations maintenance than other Higher following 1.85 0.44 natural The 1.82 0.03 2011 Higher GAAP 0.01 stock per share earnings margins 2011 preferred per share settlement electric from of premium on redemption Per Share Higher net 0.04 0.04 0.01 taxes and interest Components of change Other 0.05 amortization income earnings and Part Dilution 0.03 expenses from discontinued share 2010 ongoing revenues 0.01 maintenance 2010 diluted earnings per share Medicare in 0.02 diluted earnings per offset generally benefit tax Loss Earnings Earnings vs 2011 0.15 and diluted GAAP 2010 1.72 charges drug prior Dec.31 diluted earnings GAAP 2012 and EPS compared with 0.04 and including Prescription diluted rate other than 2012 ongoing in the gas margins interest net changes Equity natural Other to the contributing later margins Higher Higher detail diluted earnings per share 2012 Components of change Higher components significant more Per Share and ongoing electric in stock 52 1.72 1.62 Continuing Regulated Other of consist operations following utility subsidiaries summarizes table the in the operating subsidiaries nonregulated The following the and Xcel natural and gas segments Inc of Xcel contributions earnings and electric Energy business Energys segments rutrihiifmnc of Dollars Millions 2012 Regulated electric Regulated natural All income 851.9 gas income Inc Energy and income Total Loss other costs operations from discontinued 17.9 32.4 66.9 67.3 60.3 905.2 Regulated electric Regulated natural Loss Earnings Per Share Total earnings Discontinued Total The following in on historically financial or the weather used in place Energys Normal below of regulator is is 65 CDD period of Note 16 affected to the the consolidated the 0.08 0.14 1.85 1.72 1.61 1.72 1.62 statements financial revenue individual and expense hot summers items in the reported of which humidity commercial as either impact on the 65 in the sales as cold gas or winters increase the levels affect can electric of weather electricity from normal based customers or In differs process defined above are extent counted is Xcel less to impact 53 To derive by to are weather of below which the the to on average Xcel maintain comfortable HDD 65 most likely daily average to the is Fahrenheit one cooling degree-day service rises temperature and each degree of THI is territories the impact of measure and cooling usage of Xcel sensitive actual jurisdiction calculate the falls as required degree-days Energys more humid THI and 30-year average weather setting the on Fahrenheit of energy Heating temperature daily CDD HDD CDD 20-year rate natural weather and humidity degree-day heating to in amounts estimate average weather Industrial the to in the of normal calculation estimated volumes weather factor used above one customers defined in the as is temperature which variation counted is adds are to extent of temperature degree Fahrenheit the data amount of the or The estimated impact sales gas demand perspective and average and natural deviations Accordingly THI Unusually and electric variances temperature days the on Earnings reduces an energy Index measure Each of time used to that weather customers on each based conditions in establishing applied mild from both based the and residential weather historical factor CDD Fahrenheit temperature in on Regulated Changes Temperature-Humidity in the items uses per degree of temperature levels 65 0.04 0.15 stock the conversely performance indoor temperature above 0.05 income number the Energys degree-days results segment preferred summarizes of while on customer variation other all of Temperature sales based Degree-day 1.43 0.24 1.85 Included discussion gas is earnings 1.62 0.21 eq diluted requirements segment Impact natural 1.74 0.20 0.01 statements Estimated Per Share 2010 Income Analysis of consolidated Loss Earnings 0.14 continuing operations share per dividend the Statement costs share per reportable Includes other Diluted operations earnings Not and and to 755.8 2011 gas Inc Energy 3.9 841.2 2012 other Xcel 751.9 0.2 Contributions All 841.4 905.2 Diluted to 114.6 22.1 operations Totalnetincome Contributions 665.2 101.8 eq continuing income 2010 789.0 98.1 other Xcel Tnpnma in 2011 historical based impact on weather the of weather amount of demand conditions The time period used by associated on demand with the the demand weather The percentage decrease increase in normal HDD actual and vs 2012 HDD CDD Weather normal October for the Adjusted 2010 The following sale SPS of electric 1.0 37.9 0.2 29.9 6.1 assets Sales the to 2011 vs of Texas Lubbock of tumperature 0.033 refined Energy EPS on fOr Growth Decline sales for the its estimate prior The following years ended the to incorporate periods has been tables Dec 31 2012 vs Normal 0.08 impact normalized city estimated impact the gas Xcel 3.5% 4.3 36.1 0.04 2012 14.8 vs 2010 23.4 electric weather 2011 11.9 Total In vs 2010 Normal 5.7 2012 natural vs 2011 table following 38.1 Normal Firm 2012 in the provided EPS compared with on variations under sales conditions weather Retail are 46.1 distilbution summarizes table THI Normal 15.9 THI and vs 2011 Normal CDD summarize vs 2010 0.080 0.001 0.040 0.040 0.035 0.010 0.012 0.082 0.034 0.030 0.052 of weather comparison Xcel with compared 2011 vs Normal 0.002 impact for adjusted 2010 vs 2011 the demand on As charges the result estimated purposes Energys sales growth and for actual decline weather- previous year Dec 312012 Dc Without 312012 Leap Weather Actual Electric residential Electric commercial Total Firm electric retail natural and industrial Actual 0.1 0.0 106 Normalized 1.2 0.2 0.0 0.3 sales sales gas Normalized 1.0 01 Day Weather 0.3 0.4 0.2 0.5 0.3 11.0 0.8 Dec 312011 Weather Weather Actual residential Electric commercial Total Firm electric retail natural Adjusted and gas October Weather-normalized Electric and revenues uranium used these expenses 2010 sales percent Revenues Electric sales sales for the approximately industrial and and price for of 2013 for retail SPS are electric distribution to projected firm natural to the assets 0.2% 0.5 0.3 0.0 0.7 0.4 0.1 0.6 0.9 2.5 N/A city of Lubbock grow approximately 0.5 Texas percent for electric retail and customers and purchased generation of fluctuations have power electricity little expenses but impact as on are largely impacted of design result electric the margin by of the fuel The following fluctuation recovery table in the details the of price mechanisms to natural recover Milliuns of Electric fuel Electric 2012 Dollars revenues decline and purchased power margin 54 2011 gas current revenues electric margin Electric to by gas customers Margin fuel in the sale Lubbock Normalized 0.5% Electric Normalized 2010 8517 8767 8452 3624 3992 4011 4893 4775 4441 and coal The Electric Revenues Millions of Dollars Fuel and summarize tables following the of components the in electric changes and revenues electric for the margin vs 2012 purchased cost power 2011 394 recovery Firm wholesale Retail sales excluding weather DSM and and Transmission Demand offset by expenses Mexico South Wisconsin Dakota North Dakota Minnesota 125 revenue 44 revenue Conservation Estimated Other revenue impact Colorado Texas New rate increases Michigan 13 DSM and incentive 12 of weather impact net 18 decrease Total Decrease 2012 58 decrease Conservation Retail is in electric to the of expiration Electric This expense wholesale long-term revenues decrease was decreased by the with Black lower fuel agreement due primarily offset partially sales power to various rate increases Hills Corp and purchased across Jan effective all of power the 2012 cost of Dollars rate 2012 Colorado Texas New Mexico increases and Michigan Demand South Wisconsin Dakota North 2011 vs Dakota Minnesota 125 revenue 13 Transmission revenue Conservation and Estimated of net DSM costs 13 incentive 12 of weather impact Firm wholesale Retail sales 48 decrease Conservation DSM and weather excluding revenue impact offset by expenses net Other Total 13 increase Decrease 2012 which recovery subsidiaries utility Margin Millions Retail 250 revenue with 2011 in operating Electric due primarily Comparison offset Dec 31 ended years is in electric due primarily to the 2011 to Comparison margin 118 of expiration The wholesale long-term increase in electric sales power margin was with Black agreement due primarily to the Hills Corp various effective rate Jan increases 2012 across all of the subsidiaries utility Electric Revenues Millions of lollars Revenue Retail 2011 requirements Transmission revenue Conservation and Trading generation subject to vs refund 102 45 revenue power DSM cost offset by expenses 31 recovery 19 18 incentive 14 PSCo renewable increase increase retail in electric in revenue rate revenue energy credit 19 19 sales revenue requirements requirements increases 2010 124 acquisition net These The and including Total The gas of weather impact Conservation Other DSM purchased Estimated PSCo net of revenue rate increases Fuel and for include are 315 for partially final rates PSCo offset in generation by higher Wisconsin reflects the of acquisition OM expense Texas Minnesota depreciation and 55 North the Rocky expense Dakota Mountain property and taxes Blue Spruce and financing natural costs gas facilities in late 2010 is 2011 with Comparison and Blue Mountain and revenues Electric natural gas increased at facilities due primarily PSCo and to the cost retail rate increases in of recovery Minnesota the of acquisition the Rocky Texas North Wisconsin Dakota Michigan Margin Electric of Dollars Millioni Revenue Retail 2011 requirements DSM and Transmission revenue Estimated impact Conservation Non-fuel Other 2011 retail and 20 rate to 2010 The Spruce 30 adjustments for PSCo offset rates in reflects generation by higher Wisconsin increase OM gas margin facilities at of acquisition expense and North was due natural gas have natural to gas little vary with changing cost recovery effect on sales mechanisms natural gas requirements and to recover the current margin The following cost financing of recovery in natural gas facilities in late natural The following the of acquisition the Texas North of cost expenses table natural details and sold gas the components of the changes in natural retail gas revenues and margin 2010 1812 1783 1164 1163 648 and due natural 620 gas margin for the years Gas Revenues Natural of Dollars Millions Purchased natural Estimated impact Conservation PSIA rider Retail rate Other net 2012 gas adjustment DSM Colorado increase which 17 offset by expenses by expenses 29 Colorado Wisconsin 16 to is 2011 26 revenue offset in natural Comparison recovery vs 282 recovery of weather and Total decrease clause 2011 offset in 275 gas revenues Natural gas revenues decreased primarily operating expense 56 due to the purchased natural to the fluctuations customers gas revenues 2011 656 summarize tables to natural 881 transported However gas purchases for sales Dec 31 ended 2010 costs Wisconsin Minnesota 1537 Natural gas margin 2012 and 2012 Natural gas revenues Cost of to the rate increases retail of Dollars Millions and Blue Spruce taxes property Dakota primarily PSCo and Mountain Rocky the depreciation Minnesota Texas in electric natural the expense and Margin gas tends natural of purchased of fuel 334 partially final and Blue deferred Michigan of cost are include increases and margin requirements Gas Revenues cost 31 costs firm wholesale requirements Mountain design 102 offset by expenses 14 revenue in revenue Natural The 124 refund incentive in electric increase Dakota of to 18 Comparison Rocky net subject 2010 vs acquisition DSM including These The revenue generation of weather and increase The PSCo gas riders net Total for net of revenue increases rate Conservation the 2010 Spruce gas adjustment clause in Natural Gas Margin Millions of Jollars 2012 PSIA rider Retail rate increase Estimated Colorado Other 2012 29 16 of weather DSM and increase revenue in natural offset 26 17 by expenses increased gas margins primarily impact Return PSCo gas PSIA rider which is offset in operating expense on vs 2010 by expenses 13 in storage clause gas adjustment decrease Conservation offset Colorado natural sales revenue of weather rate increase Purchased DSM and recovery weather excluding impact incentive net Other Total 2011 increase in natural to Comparison Minnesota and __________ gas revenues 2010 Natural weather colder in 29 gas revenues 2011 at increased primarily due to higher conservation and DSM rates at NSP PSCo and NSP-Minnesota Gas Margin Natural Millions of Dollars Conservation impact Return PSCo gas on revenue offset 2010 by expenses 13 of weather Retail rate increase Retail sales in storage Colorado decrease Conservation vs 2011 DSM and Estimated excluding DSM and weather impact incentive net Other Total increase in natural Comnparison to NSP-Minnesota Non-Fuel or 4.0 Operating Millions Natural Expenses 2011 28 in 2011 and Other expenses compared increased gas margins coder weather OM for percent gas margin 2010 and OMExpenses increased with 2010 at primarily $35.8 million The following or 1.7 percent tables summarize Island costs and Other net Total higher conservation and for 2012 the compared changes in with OM 2011 and vs 2011 11 EPU 10 costs 17 10 labor contract increase in OM DSM by $83.0 expenses 20 expense Labor to 36 integrity generation debt due 2012 SmartGridCity Prairie to increased rates Items benefits system Pipeline due PSCo and NSP-Minnesota of Dollars Employee Bad to the 2011 DSM and Estimated Plant due of Dollars Conservation Retail Natural Gas Revenues Millions Retail gas margin 2011 to Comparison Natural at 2011 net Total 2011 vs by expenses Colorado Wisconsin impact Conservation offset 12 expenses 36 57 million 2012 to Comparison 2011 Higher employee Higher pipeline recovered system the through See Item Island Lower plant increase OM in mainly due are costs integrity and Note 12 to increased pension increased to driven largely the by following expenses and compliance which initiatives inspection Colorado in are rider integrity financial consolidated the was 2012 for expenses to relate system pipeline Business Prairie for further statements of SmartGridCity discussion and EPU costs generation fourth Higher The benefits are and labor quarter attributable primarily labor contract costs fewer to are overhauls plant driven largely 2012 in and by vegetation management substation maintenance 2011 of Dollars Millions plant generation Higher labor and contract labor Higher employee benefit expense Higher nuclear insurance Higher 2011 Higher higher Higher nuclear is expense 2011 Jones service service due offset the in and due the in due 2011 several Nobles to $3 2010 settlement electric Taxes other due an to than income increase Income settlement business retail in 2011 Net in July are taxes increased for property Other income $42.9 taxes net or EPU system depreciation Minnesota the million or $21.9 into the of impact taxes 12.9 million 2010 58 for into for 2011 are to well 7.4 as the recovered generally the encourage order reduces reduce to peak serves emissions in June 2010 with The 2011 to higher of 2010 and normal by approximately $30 territories This increase the acquisition of expansion system in the million in EPU Monticello the in late 2011 service 2010 with compared NSP-Minnesota at Energys portion 2012 for percent May compared including two The fourth case $34.1 2011 in in Xcel across million Minnesota for million or 4.0 operations service in as expenses service 2011 service rate settlement percent $29.6 million increased in compared program going rate million or rates designed patterns 2011 for the expense primarily are $20.9 rider expenses capacity plant expansion electric multi-year of approximately decreased and in service customers commercial commencing program $35.4 percent into going decreased usage percent increased or 3.7 million programs recover Monticello projects the energy 17.3 to reducing on and facilities lower gas to DSM for additional going being deferred based following distribution and to participating Jones Unit in the attributable change used rates the project NSP-Minnesota proposed need costs amortization 1.7 on our program expenses Overall or million rider capital wind December rates SPS and normal at increased to the $41.6 in the DSM primarily energy energy portion of to June expense May 2011 facilities increased the new generation placed expense Conservation base reduces turn reduces increase and conserve Depreciation primarily to reflect an and Taxes Other Than Income Taxes other than income 2011 The increases in property taxes are due to an increase to the Other in partially of 2011 quarter is in as expenses to and amortization generation was as well primarily into going expense into program riders to maintenance to are NSP-Minnesota through with driven by outages Conservation at driven by largely associated by higher pension The lower expenses This system goals is largely customers retail attributable increase Unit PSCo gas increase DSM driven were was costs work overhaul largely Expenses 2011 and Amortization The depreciation their or electric gas are incremental to primarily due are costs concurrently and primarily Depreciation costs CIP expenses electric and 2011 for expenses attributable costs operation with environmental and Depreciation Taxes of jurisdictions the labor benefit compared companies other contract plant OM in are maintenance DSM Program and 2012 Conservation with and employee demand on going of scheduled Higher our major the level wage increases operating with generation labor increase costs plant of recovery achieve The annual for timing 2010 to 83 expenses Higher Conservation in OM in Comparison percent 13 12 costs operation 14 increase Total 18 costs costs net Other 2010 22 Higher plant vs costs Higher approved compared Colorado compared and with or 9.1 for percent 2012 compared property taxes in Colorado the CPUC in May 2012 by with 2010 $8.8 million 2010 The change primarily in is related primarily Minnesota due to the COLI AFUDC AFUDC PSCos Island transmission nuclear AFUDC service 2010 in offset decrease for of Xcel benefit Income to tax for primarily tax benefit continuing due tax 35.1 on were COLI an increase CACJA adjustments See percent in is and purchase dividends The following of $108 price are reflected Energy Inc and extension above in the notes million as reductions Xcel Energy Total Xcel Preferred Total $31.7 to million Xcel per Energy for was these Energy accrued earnings for for tax Preferred Total for prescription Amounts Xcel Inc Energy and and carryback the tax for benefit the adjustments available to to the ETR statements redeemed for continuing all series tax with compared million and primarily due dividends these are into utility 2011 related the 2010 Medicare of As such the common shareholders The million of tax continuing due to the primarily Provident operations stock on premium of $3.3 2011 for percent discussion on preferred for for is the COLI Part continuing redemption for the subsidies an was 35.8 Medicare its increase Part operations for As drug plans $17 non-taxability for further The to the benefits and the for 2010 would COLT Oct 31 million 2011 at and 2011 the income net and EPS contributions of the continuing of Xcel operations Energy Inc and Energys Earnings its businesses Inc Inc Xcel to 2012 financing costs 2011 71.5 taxes Energy and Inc other and results other costs continuing Energy Inc and other costs available to common shareholders Share Inc 2.9 5.4 0.8 0.6 3.0 67.3 66.9 to Xcel costs Inc taxes and other Energy include and or losses gains Inc.s not Inc results directly 64.5 Earnings per Share 2010 0.13 0.01 0.15 0.01 0.01 0.15 0.14 0.01 results 0.01 costs associated include 4.2 74.1 2011 0.15 other assigned 60.3 6.8 Energys 2012 financing 68.7 3.8 66.9 operations 2010 63.8 dividends Xcel in with benefit 0.01 Energy Prairie and $13.8 million or compared and subsidies for the 2012 without 2011 financial Inc federal million of $8.9 of write-off 2010 2012 for carryback Eloigne Xcel the investment dividends Xcel of expansion at by higher pretax income in 2012 The ETR 2011 The lower ETR for 2012 was primarily PTCs The ETR consolidated Xcel plus for allowances 2010 million Contribution Earnings 2011 fund to Eloigne Xcel the offset percent Without to $14.9 of Dollars Energy to work Other Results summarize tables with levels Contribution Millions due primarily life compared debt with with associated 35.6 percent wind The higher ETR 10 2012 $18.1 associated partially been the 2011 Redemption of Preferred Stock an aggregate were valuation by decreased benefit 2010 in with 35.8 offset referenced Note for percent higher long-term of approximately increased increase 2010 for tax have in tax change partially and percent allowance nonregulated The Colorado 1.8 to operations off benefits operations net or due is to subsidies These federal million increase written discrete continuing These to 367 with Premium the rates was income related been the for pretax 2010 in adjustment accrued with interest expense recognized expense settlement valuation the The was 33.2 percent for 2012 compared referenced above The ETR would higher compared tax of 2010 with expense $10.5 increased charges by lower offset portion associated adjustments 2011 with to or 6.4 percent for 2011 with 2010 The decrease is compared primarily due to lower AFUDC The lower average CWJP is attributed to Comanche Unit and the Nobles wind project going by Monticello EPU and work at the Jones plant as well as SPS transmission in 2011 compared tax Energy operations compared related million Income income restoration result 2012 for construction CWIP Interest 2011 partially in million projects Income Taxes Xcel $5.4 Charges percent operations have additional generating plant decreased Interest due $18.8 facilities and lower average rates 2.4 increased with interest to continuing sales of expense individual properties and 0.14 operations the held by Eloigne EPS impact subsidiaries 59 of preferred dividends which are incurred at Xcel Energy Factors Xcel the Energys respective services Economk Economic conditions prolonged economic slowdown material fluctuating Xcel Energy Inc.s Xcel Plan in the Changes key in Critical Accounting of Xcel to its be and natural The from customers costs number of by affected Energys operating terrorist prices of operations future increase varying gas service their future those including and conditions within and historical factors of trends below listed carbon and tax of discussion capital Xcel from resulting the predict war However of threat of impact could Energy sustained general rates on dependence the to raise or ability growth in interest cannot Management results war or activity coal gas and uranium natural mechanisms and have very recovery net net little in regulatory in Changes However on earnings impact changes unanticipated commodity mechanisms recovery prices of availability could impact supply and costs fuel and further benefit postretirement discount including by analyzing pension For assumptions and pension assumptions annually related changes fuel for further significant are at least assumptions recover general business conditions for electric prices and Assumptions Costs valuations energy have utilities through See Item has Energy these to expected on impact significant implementation potential our operations Pension operating recovered the are with weather varies the approve ability and results its or growth and Costs supply to impact Supply generally Energys been have may Fuel are have recession economic in Xcel affect results usage which agencies regulatory Conditions material experience on customer depend Various and jurisdictions Energys operating General of Operations revenues utility of energy cost Xcel Results Affecting market current and discussion that and costs sensitivity measured are on return which conditions benefits postretirement costs and expected rates include changes on these Xcel in the Employee see assumptions and rates may occur Inherent evaluates Energy in interest funding requirements analysis valuations actuarial using assets plan in these market returns due future key Benefits to under and Estimates Policies Regulation FERC and State The and electric an allowed commissions and cases the In Wholesale Energy SPP management the the financial for increases SDPUC NDPSC emissions to and/or enable recovery with FERC rate changes policy as to centrally statements in and base PUCT increase of and costs rates and maintain charged approved to transmission investment on incurred implemented transmission or to to increase base or to expects SPS efforts with the or the costs governing rate filing general rate filings and the new are of cost proceedings U.S Central member is are operated by transmission congestion regional various FERC the operating filings affecting DSM and by timing of the on in rate apply and rates to cost the the recovery non-fuel formula manner electric rates for costs riders to are rate of the upgrade expected transmission each similar to the 60 with such associated rider rate investments substantial transmission and energy costs rate through For wholesale establish in of recover These make subsidiaries reliability recover timely basis proposed investments utility the customers proposals MISO of either through and South generation and members through Midwest in the electric are structure approved investment factors conservation capital utility Energy SPP NSP-Minnesota of mechanisms See Note 12 discussion Inc.s Energy markets regional charges for further Xcel expand energy and services other costs conditions are plant depending results Xcel conditions recover for utility in operating ROE the energy all dispatch recover to Regulation plants power authorize to Inc.s Energy of operations utility subsidiaries designed financial changes economic overall Wholesale Regulation SPS expect Capital Expenditure to filing by commissions Energys to Inc.s are in rates changes Xcel addition rates Xcel regulate results Energys and general economic Energy The NSP-Minnesota and NSP-Wisconsin system and In affected is of Xcel requests affect can final rates regulatory Market consolidated and upgrade of Energy costs Xcel market they operate commissions regulatory impact energy customers to Xcel operating state significantly changing which in investment in respectively NSP-Wisconsin to on on charged states growth which sales addition and in the implementation MISO based rates gas can regulators changes natural Changes investments capital rate return these by commissions regulatory and for file periodically The FERC and various Regulation Decisions subsidiaries services utility riders in plant distribution investments generation to provide Xcel subsidiaries additions systems the plants that build and lower has will to addition CPUC MPUC significant Energy In cash flows consistent provide annual Environmental Matters Environmental costs of hazardous materials with laws include and and permits with to respect to In nuclear decommissioning addition to Xcel $263 million in 2012 $265 million in 2011 $256 million in 2010 Energy materials are rates fluctuate may $180 million $473 million Item Xcel Energys operations certain impose for the contain Xcel estimates become regulations In July from 2011 Further there all are the $305 stringent regulation compliance to charged for operating expenses approximately which to at regulated from million costs including extent and those for environmental facilities 2013 will costs were 2017 through for similar remediation and site be included and in costs of hazardous disposal recovered through approximately to incur scope and Such that mandate regulations laws and increase the to air and in the these to intake cannot expenditures be Xcel and these pre-approval air for be higher until new any that permits equipment could determined units and obtain requirements expenditures fully to comply with control pollution and waste discharges generating Energy strictly with comply Actual water electrical require obtain operation of future emissions including may emissions emissions and water timing of related regulations air installation expenditures capital for air and emissions from various sources projects or regulations laws state air requirements certain limitations the and federal regulate of required the CSAPR eastern half rule the CAIR Xcel adopted August the pending It is as Energy the throughout EPA In not Therefore known controls areas facilities 2011 U.S the rehearing replacement emission address long-range to of of the for requests wilderness generating December to reporting implementation and parks and issued might approach In addition regulations various in the denied Circuit national In EPA continued required D.C EPA the disposal compliance at facilities remediation or lower than or revised final located utilities subject be presented costs increasingly and discussion for further are operational and sites were environment and or modification will likely MGP of of approximately improvements and monitoring emission and Energy plans laws construction and awareness environmental expenses and vaste of spent nuclear fuel to the 2010 Requirements These disposal for storage discharges 2012 2011 in Capital management the in fuel of environmental Additionally environmental millionin $48 See for expenditures for expenditures materials of monitoring environmental greater capital spent nuclear annual expense amount unknown currently and of sites and timing and precise trend of hazardous and payments decommissioning and expenses disposal an average estimates the plant emissions operating and monitoring However Capital higher nuclear for remediation of contaminated may continue environmental cause accruals waste it not BART Xcel EPAs known territory setting national and ozone Circuit D.C the what facilities Circuits to subject that mercury decision In will be are reduction for CSAPR 2013 or NOx but the how the future to in certain visibility BART requirements mercury SO2 and appealed in the subject in the January emissions that reduce EGUs for vacated program and Colorado limits reductions requiring may be imposed releasing Minnesota emission by an opinion replacement requirements in are issued of development facilities Energy PM D.C for industrial generating regulation the known whether yet is of transport 2012 certain at requirements the state level metals and acid gas emissions See Note 13 to the consolidated financial statements for further discussion of Xcel Energys environmental contingencies Inflation Inflation potential and gas the at its future Federal services to current level inflation Reserve customers is not could This could These to expected result materially from economic lead potential to future cost affect Xcel conditions price increases increases could Energys or the economic for materials in 61 turn lead prices or returns and monetary and services to increased to shareholders policies required prices to of the to deliver customers However U.S Government electric and natural CRITICAL ACCOUNTING POLICIES AND ESTIMATES of Preparation future events assumptions and In addition on the Inc Energy holding is which incurred in makes generally be charged and to the may different regarding effect applied have of Xcel application requires and has higher Each on recovery of operation the The following and of likelihood critical of varying condition financial assumptions the on changed not Energys these anticipated based and disclosures significant policies the involves judgments challenges regulatory have portrayal or using policies statements judgments Each of complex is list and results in resulting accounting policy Board of Directors Inc.s Energy and legal accounting these GAAP with compliance of financial also conditions of Xcel income net of future probability There OCI or of recovery for rate-regulated 15 to no these been Xcel deferred because to expected industries be refunded regulatory the with rates Energys the probability they are probable of of in future and regulatory of recovery and the if derived through are on the service regulated customers to assets Regulated consistent based liabilities for accounting liabilities of providing costs and assets are or and and collected charged ceases be probable to IFRS could the consolidated if financial Xcel the SEC us to should in the mandate statements cash future future rates recovery or amounts would liabilities be use of the of to required to jurisdiction charge IFRS and and the If assets to the impact of an accounting lack to net liabilities regulatory and assets regulatory these that of liabilities regulatory environment assets discussion and billion jurisdiction regulatory regulatory for further $2.8 from varies would Energy certain charge and billion that or changes proposals require $3.1 to regulation subject or expected However assets is of assets regulatory subsidiary current under entities See Note Each jurisdiction are that to the subject assets the recover have that businesses has recorded Energy respectively any such in OCI or costs are report OCI or Xcel 2011 regulatory amounts other be will of or accrued In to rates that and for designed recording represent costs account are such that in the subsidiaries rate-regulated established incurred income billion of costs recovery income or entities probable liabilities to net and $1.4 billion it results for future rates As of Dec 31 2012 standard the significant different with rates represent Regulatory in current current of subjective rate-regulated the if which assets collected future consolidated nature most are under company rates process Regulatory from customers $1.2 that difficult that provides costs ratemaking flows the if in application projects particular the impact Audit Committee the competitive environment the reported estimates most with disclosures The Accounting Operations those even reported amounts discussed Regulatory Xcel of success of materially related fmancial and operating environment the and policies and use of estimates the as likelihood results different materially as well could managements require has been the statements financial guidance judgments of accounting that and including of costs These business consolidated the rules accounting liabilities Income Tax Accruals and Judgment uncertainty and current tax and audits Changes ETRs laws also highly are estimates Accounting recognized As the continue the amounts interim period reporting to be also on in the assets are in the adjusted claimed At any period with the tax accrual tax of accrual and tax process revised every and returns ETR based after returns further and on are of effects the of calculation in the after adjusted for the regulations in the and quarter year accounts that and and our liabilities following process statutes outcomes of ETR the future best year end available with filed the tax examinations by in are tax accrual taxing income guidance tax for the expense first three quarters year based the on to the increase or decrease of the and end only tax The change tax of event nature as benefits in the that new developments benefits that meet unrecognized Unrecognized could occur tax more the tax cause the and will to be threshold recognition use prudent as business issues are can estimated based reasonably an estimated range be recognized can not than needs change management benefits likely benefits be on of reasonably judgment favorably to resolved decline the accruals that requires recognized appropriate amounts exposures disputes taxes nature of uncertainty changes derecognize loss actual the tax calculations etc credits made be deferred ETR by assumptions deductions income application estiniates recorded affect the the completed income for or of evaluation and and of with aspect associated ETR forecasted possible levels to significant judgment may impacted been with accordance that rates trued-up have are taxes Uncertainty require and income being authorities In appeals in tax assumptions estimates income deferred IRS and updated state estimates earnings tax authorities needed See Note to are satisfy to the tax resolved over time and interest consolidated financial 62 we may obligations adjust for the statements our unrecognized related for further issues These discussion tax benefits adjustments and interest may Employee Benefits Xcel Energys pension annual to return discount future smoothing financial level costs that and benefit pension for further on an actuarial the to present on includes that care investment value obligation of varying investment volatility discussion calculation health postretirement payments reduce to methodology statements based are pension the of rate and return number assets In will pension used rate and future cost time See in the most notably assumptions the over performance key in the addition discount of earn the interest calculation Note an uses to the used asset- consolidated of pension calculation the rate and costs obligations Pension are costs are 2009 market-related the reflect the The market-related the actual are recognized Based costs investment on 2011 to to the primarily and assumptions for financial an expense the in 36 Xcel basis Energy uses Energy health cash set the and 4.10 percent care Energys discount the Pension supported the The Pension the benefit the In to are million plan losses used to to measure measure of $127.1 costs pension postretirement value in to for utilizes these the point the The effective matching Above points discount study Xcel Energy minimum the funding contributions funding requirements both and voluntary were made across four of Xcel 2011 contributions of $137.3 million were made across three contributions will in interest rates to in 22 that flow and 4.00 at Xcel postretirement matches matched the bond against these actuarial general point Dec 31 2012 respectively reasonableness for basis at obligations pension bonds cash in due is the reference survey expected portfolio points data to assess of $191.5 million be made Future year amounts and any changes in are governmental were as made across and regulations four of Xcel These necessary estimates benefit of Xcel Energys Energys additional on through 2008 The 2013 plans plans plans summarized are based 2011 pension pension contributions in plans beginning for Energy Energys pension may change Therefore pension actual in market contributions Note to the performance could be required in the future If on Xcel 2013 Energy were pension to use alternative assumptions at Dec 31 2012 one-percent change Rate of Discount would result expense Pension Millions on 2008 percent care value higher reviews to pension million expense is 7.11 health this made by Xcel million statements or on validated for defined required $198.1 contributions anticipate is also of we which of the projects 2013 decline Median Curve At Dec 31 2012 contributions financial Aa yield differences Dec 31 2011 used rate the 2012 and $81.0 in the costs from year between value of return differences currently in market postretirement decrease of high grade portfolio Citigroup reference basis determining The bond plans and and pension 2012 years Energy percent care investment expected these the employees million 6.88 of beginning market-related the uses value market-related at the As from levels calculation selected rate changed basis 2012 and 90 point amount and duration individual Curve Dec 31 the basis January future at health the the increase from resulting In 2013 the for active The expected primarily and losses Xcel expense 2014 in into service assets per year percent gains and from an of return incorporated investment past used 100 plans addition discount Act pension returns of 20 rate In consolidated changes of Protection are In For used Discount rate selected reasonableness following return return represent rate for the Liability investment actual at the value cost Dec 31 2011 rates which of the market fair determine to assumed the The pension levels method years while funding requirements exceeded returns assumed value the adjusting years $132.9 bond matching study as its primary The bond matching study obligations Citigroup the discount percent flows of Xcel determines from increase point of and of rate five the calculated will increase of unrecognized decrease is 2013 below few following investment average remaining years of purposes Dec 31 2012 Xcel Energy set the from Dec 31 2011 The rate At by investment expected in uses between previous recognition million phase the expected the Energy in the years While significantly difference the reporting of $158.5 continued the over cost were decline gradually determined is of then following Xcel assets each and returns 2008 in losses and in the value during pension current recognized returns and gains 2013 in decline of pension value in and market-related investment the increase 2013 investment valuation assets plan in flat 2012 through to expected be to expected of Dollars 1% return 29.2 14.1 rate 63 Costs -1% 29.8 17.6 in the following impact Dec 31 2012 Effective bases medical its medical retiree care Xcel Energy of employee noted areas that at of are various market the adjusts to reflect full in $49.0 its million in the to 7.5 percent rate health medical cost The percent reached is seven is ultimate increases trend years Xcel market considering care 2012 and 2011 during million $21.8 regulated in expense deferred the by Xcel experienced Energy levels Energys to respectively the postretirement 2013 during with accounting consistent operations utility all regulatory as regulatory of by cash costs statements for expected cost based jurisdictions on expense normal aggregate with guidance the as calculated and expense cost the using calculated as by liability allow jurisdictions matched is recovery the of recovery contributions in these an to other retirement post irrevocable Xcel trust benefit costs has Energy to only consistently jurisdictions discussion further December and November of $14.2 and 2012 million was cost discounted the MPUC approved for deposited of the Minnesota into the in are by are submitted all using risk-free approved use of retail external future to then to and its the The to be decommissioning legal related flows associated revises assets in techniques with to the it estimate ARO accretes Energy In which retirement used any assumptions asset Xcel exists obligation long-lived value cash and AROs timing available may vary interest adjusted most recent costs were fund 2011 fund AROs respectively performed Estimates of from actual filing determined future results The nuclear plants initially using and trust for filing included including nominal in amounts cost decommissioning-specific rates nuclear decommissioning scenario in were the external recorded nuclear decommissioning time significantly escalated the with nuclear decommissioning of planned at the from The facilities decommissioning Dec 31 2012 of associated period of This by funds received trust as nuclear external The amounts asset nuclear decommissioning future costs less returns million the and cost triennial estimated offset $1482.7 the by percent expense regulatory to NSP-Minnesotas of 100 decommissioning periods NSP-Minnesotas as uncertain MPIJC future the 60-year decommissioning customers which the present long-lived be funded information relevant over credit using future of cost Energy related specifically highly the the deferred to estimate nature of Xcel depreciation million relates on AROs its decommissioning expected $1546.4 order part the method including material adjustments and are expenses radioactive When guidance based of of for assets long-lived as and timing liability is funding value rates to the currently studies covered removal relates were studies periods of time to escalation finally interest discussion following cost study which prior the accounting NSP-Minnesota 2011 MPUC The the periodic extended decontamination escalators current amounts the tangible capitalized fair escalation ARO regulatory retiring are the the Energys AROs independent decommissioning dollars of both nuclear decommissioning obtains of cost of time using between under estimates estimates and of and incurred Energy amount of Xcel significance These for as nuclear decommissioning recorded NSP-Minnesota flows Xcel including passage difference their activities the for to future on value fair risk free rates carrying portion amounts which are for the at assumptions fund The data actual method Differences between financial prices credit-adjusted it related In allow to recognized quoted significant 2011 pension expense liabilities recognizes total obligation In recognized level costs Mexico and FERC consolidated the AROs liabilities cash as 6.3 ultimate Decommissioning AROs Based expected recent from the inflation approximately actuarial standards the activities and cost accounting extent and million benefits recognizes normal Texas New to absence trust well as until below Colorado Energy makes cost long-term to contribute expects the funded These The period percent experts $47.1 recovers pension Xcel industry contributed NSP-Minnesot Nuclear by the increased was assumption 4.5 plans Energy aggregate See Note on trend to percent assumption Energy health exception 5.0 plan Xcel Xcel trend medical initial from recommended and projected the was reduced assumption December in resulted 2012 2012 in study which an approved of $15.3 million annual from the used 2011 accrual DOE cost for 2013 settlement The following key Timing the operating license actual to expected and Rates increases in the decommissioning Discount change occurs If the activity undiscounted of 2012 due the Significant ultimate to the cost of Xcel of and financial Risk normal loss potential All Xcel Though contracts in the trust no estimates beyond to better each for reflect the the best Management may occur as commodity-related statements exposed use of the credit its to the risk impact and Xcel The estimates of 3.63 period through the rate to regulations and inflation general escalation in Changes cost and period of operating result in upward costs the resulted have revisions risk-free cash downward in percent radiological related to cash an immaterial in used to the of revision the are when retirement the rate in effect flows calculate ARO the ARO the risk-free expected been to rate in effect flows of revision credit-adjusted estimated that to changed the net its at the in ARO present value of to takes including for ongoing to and energy variety to changes its and the utilized or assumptions minimal impact on based time This available factors on as of market of evaluation these may judgments require The accompanying Dec 31 2012 risks Market instrument risk See an many of Note 11 or to risk is the commodity the derivatives and guarantees over maintaining in credit requests derivatives the which products energy-related mitigate areas particular market with monitoring underlying these of to subject be to life have underlying becomes of fair value associated steps parental contracts that impact exposed are risks in price the or derivatives of market addition the are market in the management under information of policy assumptions otherwise change or estimates rates accounting and Energy subsidiaries changes in future critical and judgments changes In to these cost in estimates changes costs information and updated events and all method the including If different However recover to risk markets currently may exists in the with future the impact markets as are of credit and partially intended concentration collateral contracts is policies While expose Xcel Xcel to risks Energy Energy to risk non-performance financial is activities facilities cause technology credit-adjusted in using percent of Xcel including contracts perform results assumption The control discussion of adverse other will nonperformance in the instruments when necessary derivatives material of adverse commodity derivatives counterpai-ties distress Energy for further and these nuclear could both to an incremental expected the ARO and that The rate discounted is related area estimates Inc and well and managements flows flows materially continue to expects events for the of disposing spent fuel change Xcel financial as results reflect could uncertainties by method which large operational of nuclear deconmiissioning cost method result the credit AROs the of original percent future the planned course of business with that expects the that overall associated and Risk is by minimize some and affected financial Energy mitigated in estimating cash cash flows the utilized DECON current used units Unit time and Market and financial consolidated flows over makes judgments recorded to statements Derivatives the be will of recognition of time due over remaining interest estimate cash the was expected 60 year decommissioning NSP-Minnesota as continually estimates of expected for risk-free revised assumed expected each restoration or estimated expected and utilized varying assumptions adjustments In were operations Energy the exist decommission rates the increases as the with Islands decommissioning filing well 2091 by decommissioning NSP-Minnesota percent site or estimated timing timing to cash future 2.63 and fuel credit-adjusted estimate change of rate nuclear discount to cost activities as coincide and dismantlement facilities nuclear decommissioning projected ranging from approximately uncertainties escalation results rates to in measurement expected costs in revised initial Discount used is nuclear represent escalation then-current change 2011 actual the upon removal both for date dates for Prairie based is prompt regarding nuclear decommissioning spent Changes the using with experience retirement and 2034 activities assumes in regulations decommissioning to An of storage Rates calculated related and 2033 and be completed date changes rates specific period dry cask interim of AROs the calculating Escalation cost Monticello retirement facilitys the estimated decommissioning limited is as by each impacted method which license There estimates these Currently for the this NSP-Minnesotas significantly Escalation the as well experience 2030 of utilizing end of are activities timing By Regulation and technology estimated on effect estimates NRC i.e the at the begin Technology change with MPUC the by required cost decommissioning The respectively date significant Decommissioning timing of the have assumptions counterparties that risk to the to Xcel extent Energys it impacts commodity those may also impact the fair value of the securities in the nuclear decommissioning Energys ability to earn return on short-term investments of excess cash 65 derivative counterparties fund Distress and master pension Commodity Price Risk electric capacity Commodity allows it price risk and energy-related risk also managed through is the including Risk management policy allows management management committee At Dec 31 2012 the which is values fair to of sale financial conduct electric these by source used instruments to the and within not personnel and guidelines Futures in the as of Fair Value of Dollars Thousands governed by 474 this policy Futur Total Than Greater Years to 16207 Forwards Years Fair Value 1251 1201 277 612 1528 1813 50 NSP-Minnesota risk risk its follows as Maturity Years to 7207 PSCo Energys by Forwards Maturity Year NSP-Minnesota policy and commodity Xcel Maturity Than Less for management approved activities natural contracts exists wholesale Maturity Source risk exposure limitations sales activities instruments were assets Energys various involved directly and distribution such energy-related contract trading Xcel and in their electric purchase and extent conduct subsidiaries utility risk price physical in generation operation capacity energy commodity for net short-term derivative activities made up of management and fuels rate-regulated Enrgy Inc.s XceI and purchase of each commodity to exposed long- for various and ue the within are into entering products risk price subsidiaries utility managed by is energy and Commodity Trading activities Inc.s Energy price manage commodity to Wholesale trading Xcel Commodity gas operations 25866 939 792 318 7731 16525 27597 Options Maturity Maturity Source of Dollars Thousands of Than Less Fair Value Year NSP-Minnesota Prices 641 based Changes in the of value fair value as or continuing operations 717 76 prices trading before contracts the mechanisms of margin-sharing impacts Energy changes not recorded the the during contract increase Jan at period transactions trading outstanding assets assets market in period for prices Dec at outstanding 31 commodity by approximately $0.5 million whereas decrease Inc.s at fair value in fair market conditions using Monte value on the contracts using an The VaRs for the with and industry outstanding Carlo simulation from continuing wholesale utility subsidiaries on transactions change income pretax and commodity obligations standard transactions percent trading have been and increase $0.2 for the and level as Value obligations over and but into at Risk 20249 12185 10672 20075 10847 28314 20424 income pretax prices for of Dollars VaR Dec.31 Limit commodity 10 percent million the outstanding closed including VaR operations VaR risk exposure transactions expresses the period of time under on calculated holding period were as 2012 0.45 3.00 0.36 1.56 0.06 2011 0.09 3.00 0.14 0.33 0.04 66 to that are potential normal consolidated follows Low High Average from from million whereas $0.2 particular trading one-day not 2011 20424 Year Ended Millions ended years pretax income market in measure operations increase decrease by approximately PSCo commodity confidence would 10 percent entered known methodology contracts NSP-Minnesota 95 that decrease by approximately operations would contracts trading 10 percent by approximately $0.5 million At Dec 31 2011 would increase income from continuing operations pretax contracts price trading 10 percent operations Xcel during commodity net would Options Fair Value methods contract trading settled commodity of Total 2012 Dec 31 2012 decrease quoted actively valuation of commodity commodity net continuing trading on other Than Years follows realized Unrealized At and Years to of Dollars value Contracts Fair models on were Thousands Fair or based quoted actively 2Prices Dec 31 Years to Greater Maturity Maturity basis Rate Interest Energys interest In Risk rate with PSC0 2012 September $44.7 million These sheet net of tax and Dec 31 2012 interest pretax NSP-Minnesota to and for maintains rate risk debt securities fund in equity Risk Xcel intended 31 2011 10 termination markets and its amount of rate of business debt floating rate hedging interest with $250 interest fair Xcel debt and rate instruments PSCo debt issuance the with cash million loss the on in of payments balance consolidated See Note payments and financial and the credit counterparty for credit risk would are any not have for further have resulted would resulted in as have an of of in risk on osts securities related to asset regulatory nuclear in the the is realized assets for asset regulatory recovered are fund of cash for activities fund component of that policies to reflect increase in credit in credit of $4.3 through rates Xcel is of exposure of resulting credit of operations scope of $12.6 exposure loss $11.6 At millionS Dec million while $1.3 million Credit exposures of risk maintain Energy exposure is netting monitored Distress provided additional employs standardized master guarantees enhancement the and changes exposure counterparties negative credit to subsidiaries its incredit exposure all risk relates and decrease in increase in for Credit Inc parental until only NSP-Minnesotas losses as Energy in credit and positive limited of offset and impact consolidated portfolio decommissioning deferred resulted an resulted credit diversified may be used recognizes these reviews credit an gains credit have increase letters is counterparty are Xcel monitor have standard such to exposed prices would prices as would to the The nuclear decommissioning in nuclear 11 earnings obligations would for offsetting Energys also actively commodity deferred unrealized on invested investments rate debt See Note derivatives rate NRC the use of the impairments an impact are by was decommissioning contractual and These and realized for nuclear risk conduct allow risk that and based have in the credit agreements when and financial risk credit risk of Xcel on was discussion material instruments are risk was the deferred fair value to ability contracts fair of the as value OCI regulatory of inputs the value value to the used hierarchy that contains and amounts the of and assets used for inputs hierarchy measurements See Note in these the impact commodity or regulatory the derivative of discounting derivative in electric assets and liabilities commodity 67 the transactions 11 in to the liabilities derivative at contracts forth The impact in the risk assesses of discounting at assets Given as the to fair for other asset regulatory impact commodity Dec 31 2012 this for Adjustments adjustments classification also its derivative Dec 31 2012 The Energy liabilities to set Credit liabilities commodity counterparties commodity assets revenues mechanisms Xcel recovery of of creditworthiness perform on recorded are commodity fair measurements of fair monitors instruments approved immaterial these to the trading the of value Level continuously of fair observability counterpartys duration commission the to assigned commodity when determining for credit for further each on guidance of Energy short not disclosure disclosure been assesses typically derivative is and requires statements value contracts assessment liability fund of the life fund variable Energys respectively interest required the on commodity in accounting value at fair derivative commodity in as investments in prices percent specific Xcel fund restrictions the on Xcel million subsidiaries its legal their credit increase that with and Dec 31 2012 subsidiaries its on subsidiaries Commodity Derivatives liabilities settled conjunction hedged rate other do when appropriate increase follows Energy consolidated credit course fixed Measurements measuring measured and in prices activity could Fair Value or the $2.9 and over rates and and accounting overall of 10 provisions the Inc increase mechanisms necessary the or interest percent decrease Inc Energy value use of other comprehensive benchmark any other-than-temporary Since of 10 percent risk control purpose investments minimize 10 percent decrease Xcel In notional term of million Inc Energy securities nonperformance Dec 31 2012 and in the $6.0 risk At price the including Energy to million while Xcel change costs Consequently prices from counterparties At over normal in the the NSP-Minnesota million with the earnings nuclear decommissioning equity decommissioning fluctuations of Xcel equity Given decommissioning decommissioning policies and gains on fund unrealized for nuclear Credit to 100-basis-point discussion decommissioning nuclear reclassified being of $45.0 of accumulated component rates through options 2012 August instruments hedging as managed or call payments annually by approximately also interest equivalents nuclear classified are 2011 and expense statements financial subject are rate be put in interest fluctuating to of long-term borrowings discussion At losses and collars debt issuance interest of risk rate risk with cash million settled interest caps NSP-Minnesota the to the subject allows swaps as amount of $225 notional is Energy policy such derivatives conjunction with Xcel management risk of its own derivative derivative Commodity Level in liabilities respectively the Determining of observability commodity FTRs held of value at fair FTRs generation and of for several these forecasts well as forwards as and percent that 3.1 and of percent observability instruments have these and $0.8 million in vary transmission system resulting inputs included $17.5 liabilities 1.1 represent that options total assets are and Dec 31 2012 at demand forecasts and assets liabilities FTRs of consist typically and assets numerous management requires and wholesale managements derivatives been Given fair the values forward limited Level assigned of estimated million various including congestion Level respectively for of subjective price Dec 31 2012 at the Determining and volatility less observable value fair of which forecasts forward instruments these measured retail derivative Level to assigned liabilities commodity value fair commodity prices and assets nature long-term are certain commodity extend to and price forecasts volatility Level to assigned forwards and options can those periods beyond There are were to significant immaterial management require observable readily on active Level value the determining to make use or quoted exchanges of by brokers forwards and commodity commodity forwards and no Level When options held options at Dec 31 2012 Nuclear securities market utilized are inputs subjective to valuations these may have Minnesotas fair These and Liquidity used in flows estimated at fair investments principal cash and $104.6 deferred are of model real the Given securities risk-based the and securities Level Realized based to the on an at net gains and unrealized asset rate used to NSP estimated value 2012 and significant unobservable evaluation of Dec 31 at interest that active observable be can impacts measured fund less markets significant funds and However in active and observable appropriate adjustments potential investment estate of asset-backed consist extent securities nuclear decommissioning in the to similar and prepayments and To mortgage-backed mortgage-backed asrigned as and Level to assigned investments pricing flow million are value assets estate available equity investments totaling real of asset-backed discounted in and with conjunction private measured fund value of asset-backed valuations redeem fair include inputs investments total assets decommissioning be the fund decommissioning investments equity estimate cash the to for these of percent on ability values to future Nuclear private may that inputs discount expected inputs Fund Decommissioning mortgage-backed 6.7 approximately on losses nuclear asset regulatory Resources Capital Cash Flows Millions of Dollars Net cash Net cash provided in changes and the Net cash higher 2012 by operating provided effect income million These Millions of Dollars cash Net cash capital used used in settlement Net used cash nuclear 2012 activities were increased due capital in for million $103 by as and the partially of receipt the with in investing disposal increased activities partially the offset U.S the in decreased 2010 by $85 change Department activities assets by million of Energy by partially for in restricted $559 offet 2012 cash and insurance million by for change settlement 68 as due 2011 customer proceeds as periods in 2011 to refunds cash to to due of income result was of settlement disposal pension contributions 2807 was increase associated Sherco Unit to the result settlements 2010 The 2010 the swap increase nuclear waste 2248 related compared in restricted The net 2011 compared to rate by higher 2010 the 2333 activities interest offset to compared 1894 The decrease was contributions between increase 2011 to compared 2011 2011 timing of payments offset partially as higher pension received million by $512 to 2012 for receipts refund to compared million and 2010 2406 2012 of generation waste in working increases in investing disposal paid in investing expenditures acquisition taxes by $401 timing of payments to the by operating of $100 Net due changes decreased activities operating capital of income provided net by working 2011 2005 activities with of the result of higher nuclear received The decrease receipt the the in waste 2012 was mainly due $100 million to the Millions of Dollars Net cash Net cash due to 2012 by used in financing provided provided by previously from used in financing lower proceeds from and increased issuance of long-tenn by million $1.1 for issuance the stock common of repurchases activities the by $555 borrowings billion and as as stock in to compared debt discussion Energy and meet to expects hybrid other 2017 through are future securities financing to The current shown in the Expenditures capital 2013 with uncertainties the for future potential was primarily of the The increase of redemption on impact cash was flow and due primarily stock preferred liquidity during under Requirements Capital stock and increase by repayments Sources Capital Xcel of trends commitments The offset 2010 to and 2011 See 906 payments compared 2011 2011 partially higher dividend during 2011 common debt and 2012 of long-term 2010 205 350 increased short-term long-term debt existing Net cash to activities financing higher proceeds 2011 activities maintain requirements by desired estimated table below periodically capitalization capital short-term of Xcel expenditure programs capital The issuing debt common long-term debt ratios forecast expenditure Energy reflects the Inc and its subsidiaries termination of the EPU Actual of Dollars Millions for the Prairie years Island Forecast 2012 2013 2014 2015 2016 2017 By Subsidiary NSP-Minnesota 1018 1395 1135 910 925 887 1075 1000 850 800 840 PSCo SPS 1080 389 490 400 305 300 345 155 180 240 245 230 235 2775 2310 2255 2500 NSP-Wisconsin WYCO 15 Total expenditures capital 2450 By Function Electric 3155 2012 2013 2014 2015 2016 2017 generation 772 1025 710 550 465 Electric transmission 734 1010 870 650 635 770 Electric distribution 486 515 525 525 535 545 247 355 Natural gas Nuclear fuel Other Total capital expenditures expenditures major Natural gas Nuclear fuel Total The transmission capital capital legislative compliance corporate pipeline 320 100 140 145 158 155 150 150 155 3155 projects replacement and life may vary from initiatives with future reserve the of Xcel estimates margins environmental the due to are subject changes availability requirements 2017 1555 1600 345 235 90 15 320 415 1755 245 260 175 295 140 100 140 170 190 130 135 53 95 155 100 140 145 50 60 50 to 270 3155 continuing in electric and 2016 1610 350 of purchased RPS 2015 2500 1710 39 Energy 2014 150 2255 179 2450 expenditure programs 2310 170 extension expenditures 2775 2013 1720 project increases capacity expenditures 325 155 189 CapX2O2O transmission Nuclear 335 95 2012 capital PSCoCACJA Other 365 53 2450 By Project Other 570 and merger strategies 69 review natural power 2775 gas and acquisition modification projected alternative and 2310 plans load for divestiture Actual growth meeting 50 2255 2500 construction utility regulatory decisions long-term energy opportunities to support needs Contractual obligations obligations and and Notes and Other Obligations and 13 other commitments other commercial to the consolidated Commitments that need will commitments In addition be funded to to Dec 31 2012 at its capital See statements the of of Dollars Due Long-term lease Capital and interest $20342487 payments Unconditional 2909139 obligations vendors to 12917688 obligations purchase Other long-term Payments in current including portion interest Includes each some Under Most if chose equipment the sales in operating included dl other long-term meet addition In January factors Xcel Energy Common Energys occur to contribute including 2013 we to continue Projected cash Junior the Inc.s stock to grow 5084084 interest chose it rate at Dec 45382 4243429 and 31 2012 31 2012 of the sold to and $1.7 before to terminate Dec At end million for as operating $24424763 outstanding lease Xcel that each terms with party scheduled the amount the equipment third for principal Xcel lease must lease making Energy date expiration would Energy have to pay be extended up deficiency any Inc for well as less than entered into tax of portion agreements with units under company-owned The adjusted on indices are the uncertain significant from generation obligations as of delivery have billion 1-3 year 4-5 years and years leases agreements and purchase replace to up to the they levels $2.7 approximately positions current its other maintenance of price effects nuclear coal and utilities and during changes are and fuel energy for suppliers and outages cost through mitigated of goods billion and services the through year 2050 and will to dividends this are type on dependent several during plans 2013 of this Obligations are type on dependent Energys by to the grow base and the Inc Energy dividend earnings future rate in the of operations results XceI could financial position of Directors to percent growth Xcel Board be moderate Energys dividend Xcel annually percent Should at this balances policy businesses shareholder investment company faster at of Obligations table Xcel and that rate anticipate plans operations utility capital on care in the be evaluated percent dividend the health included not pension table the postretirement are percent we Energys in be dependent will factors of Xcel included million utility Power Act Federal purchase four not therefore that credit ratings could affect dividend to system public levels Federal law places certain limits on may not pay dividends from any funds properly included limited the ability dividends declare utility may be and and structure limitations statutory holding are and other in the Energys to across they earnings from on made timefrante this return subsidiaries is Energy of all Inc of Articles Incorporation Xcel outstanding Subordinated payment Xcel the utility 70244 or indirectly directly by state regulatory commissions or in capital bond covenants Energy preferred within under The indenture Xcel of certain Specifically account rate are utilities and investment there addition public if terms at the addition of Xcel Energy $21.8 flexibility to increase on Xcel of leases it with technology contracts therefore dividend Beyond The impact In In for the purchase OM discretion generation capital reasonable and Future having Projected 5700997 2206759 84285 602000 applicable these accounted associated subsidiaries were million opportunities 2014 or anticipate 292322 1897349 table approximately management reinvestment under this discretion Stock Dividends through in of $191.5 management is have million $344.7 were that providing contractual authority disclosed contributions objective 3013183 3687286 value of equipment unernortized amounts utility Certain that property leases million .0 and energy requiremcnts load obligations eircraft $81 PPM contracts the the purchase million $367.9 to to have 32356 383957 maturity and value or 35867 21227 the $16488713 419339 21227 using Years 1550113 mechanisms expects factors flows least 2013 including several system or calculated is After5 value $181.3 are Additionally amounts to the fair primarily has outstanding also Energy in cash reserve operating the pertaining relate meet to power sell to approximately of payments Interest instruments equipment unamortized subsidiaries its energy adjustment Xcel im and was respectively gas requirements purchased of lease have and greater the obligations Inc Xcel Energy natural and price categories years would debt the each at vehicle leases for the purchased between after these terms of ending railcar Energys terminate to terms the Xcel Energy leases of Xcel it with the over payments investment Years 18035 68530 $37439562 obligations 4to5 Years 208494 1996749 602000 cash contractual in by Period lto3 1531410 268441 process Short-term debt Total 772251 378580 obliaations leases Operating Year Total principal discussion statements financial Payments debt contractual additional and capitalization of table contractual has Energy summarized is Lessthanl Thousands Xcel programs expenditure The following future in the Indenture or was part of current Energy restrictions places the on current all place Inc and interest restrictions redeemed on accrued payments its on all due on amount of common to declare ability interest the outstanding on its the and stock stock in pay dividends Junior Subordinated notes 70 preferred dividends 2011 in the Notes due In it can addition event Xcel 2068 pay Xcel Energy when Energy Inc Inc.s defers As of Dec 31 2012 of Derivatives Regulation derivative transactions over authority of impact There be will CFTC ruled reduction $3 increased swap dealing billion after swap dealer Xcel as de million electric The contains also bill requirements would determined until Pension hedge Fund Xcel short-term fund and January In 2012 The funded Fair fixed which the end users derivatives extend in their are the end The place and completed full are invested income in by entity would from reviews and we of $191.5 million of $198.1 million were of $137.3 million were anticipate pension input could the Xcel as an $800 entities owning swap dealer as and margin requirements Energy the potential to registering set primarily clearing conducted are further entity to register margin for an 2012 April with The CFTC has CFTC much of to billion subject have In activity $8 not the of domestic portfolio alternative investments cannot by Xcel and requirement be yet As Energy international including contributions are assumptions made were made across made across be made will summarized in the across three as of Xcel four four of Xcel Energys private pension Energys pension of Xcel currently equity real equity estate plans plans Energys pension plans necessary tables following assets obligation Dec 312011 2944 2670 3640 3226 696 of $39 plan million and $55 million at Dec 31 2012 and 2011 556 respectively 2013 rate of Contracts electric types which counterparties Dec 312012 long-term 2013 at level 2012 rate November regulatory some impede 2013 10 diversified and securities defined implications legal will de minimis user exemption requirements on April reporting assets pension contributions years nonqualifled Long-Term and return In and utility assumptions 2012 August October 2023 natural the PSCo this contract gas notional utility value entered into will help The purchase of the 10-year physical meet portion for natural price transaction of over the the gas supply annual gas under duration of the 5.00% 6.88 7.10 contract natural the 4.00% for the period between gas supply requirements contract contract is is indexed-based for both Given approximately $1.0 billion Sources Short-Term flow Funding notes part Short-Tern short-term would rules and swap set Assumptions Expected in large certain exempt after and initially level this or requirements derivative limit below is activity fee of regulation with expanded preclude central status Discount cash to of de minimis exemption entities government and rulemakings subject contributions pension Excludes Capital be Energys 2013 of pension Funded current will notional and SEC and could regulated of Dollars Projected PSCos definitions volumes under swap support agreements to long-duration future status value Pension credit through clearing for the provides CFTC this legislation with Utility Special Entities swaps proposed under extensive margin in which the provide for certain the projected should that contributions 2011 For for under fall and bill commodity investments In In Millions the all will facilities CFTCs the have to Energy securities gas provisions Xcel proposed years current require entities by the effected or result conducted exemption or natural Although be imposed five and/or requirements reporting within Regulations transactions was passed legislation Provisions transactions activity Energys volume niinimis or operating for these reform financial provisions transactions swap market the 2010 July other commodity energy material that to and derivative over-the-counter negatively In amongst on Sources payable needs financing Investments investment Xcel commercial for construction Xcel accounts Energy paper uses and bank number of sources to fulfill short-term funding needs including operating lines of credit The amount and timing of short-term funding needs depend expenditures working and dividend payments Inc NSP-Minnesota NSP-Wisconsin PSCo and SPS Dec 31 2012 approximately $5.7 million of cash was held Energy At capital 71 maintain cash in these operating accounts and Commercial Paper Xcel The authorized programs Inc Energy levels NSP-Minncsota commercial for these million for Xcel $700 million for PSCo $500 million for NSP-Minnesota $300 million for SPS $150 million for NSP-Wisconsin Energy paper and Xcel for outstanding paper commercial individual are programs Inc $800 Commercial PSCo and SPS each have NSP-Wisconsin paper was Energy follows as Threc Months Ended In Millions Amounts Dec 312012 Rates Interest Except 2450 limit Borrowing Amount outstanding Average amount outstanding Maximum amount 602 period end at 398 602 outstanding Weighted average interest rate computed Weighted average interest rate on basis daily 0.3 end of period at 6% 0.36 Twelve Twelve Twelve Months Months Months Ended Amounts in Millions Dec Rates Interest Except 2450 limit Borrowing Amount outstanding Average amount outstanding period end at Maximum amount outstanding Weighted average interest rate computed Weighted average interest rate at Credit year In Facilities credit with have from range credit ratings basis of 100 points 200 to NSP-Minnesota to PSCo SPS additional one-year periods additional one-year period As of Feb 2013 Xcel basis and Xcel Energy All extension Energy Inc Inc has requests and its unused the points have the utility 87.5 to portion the right to subject to subsidiaries 175 of also per year agreements basis the based on of majority bank had the group following on 430 263 634 824 the 653 0.35% 0.36% 0.36% 0.36 0.40 0.40 Inc entered these per year based credit were the lines on reduced of of Dollars Drawn Facility long-term range date credit facilities Cash Liquidity 441.0 359.0 0.4 359.4 PSCo 700.0 4.0 696.0 1.0 697.0 NSP-Minnesota 5000 257.2 242.8 0.6 243.4 SPS 300.0 25.0 275.0 0.2 275.2 NSP-Wisconsin 150.0 3.0 147.0 0.8 2450.0 730.2 These Includes credit facilities outstanding expire in July commercial 2017 paper and letters of credit 72 for available 800.0 1719.8 date termination termination XcelEnergylnc Total of 10 to 3.0 35 ratings for two an approval committed Available and reduced were applicable from five- credit in pricing credit credit revolving revolving amended into The amended long-term applicable an extension of 466 403 with an improvement margins points lines 2177 219 agreements request an extension of right to request are credit prior 312010 2450 602 Energy credit Ended Dec needs liquidity Millions 19 27.5 NSP-Wisconsin range of to the as and Xcel previous four-year The Eurodollar borrowing 2017 on to their conditions calculated 7.5 PSCo SPS NSP-Wisconsin replacing to July per year points range of banks terms and same The commitment fees per year of March 2015 basis basis daily NSP-Minnesota the from on of period syndicate substantially an extension of maturity end 2012 July agreements agreements Ended Dec 312011 312012 147.8 1722.8 to meet Money Pool subject to receipt The money Inc shares of of seven 31 to 2012 which stock Xcel Xcel Energy limit on issuance sell Inc an has of Directors equity securities has which in July filed NSP-Wisconsin has in July filed was currently authorizes million 2012 Borrowings Note to During 2012 the In in April Xcel to 2012 SPS portion of June used fund daily principal In 2012 Minnesota used of 8.50 percent In portion and of In October Oct PSCo $500 million Energy their state respective regulatory the issuance 488 approximately Inc.s following shares of on the issuance Dec on outstanding SEC the par million authorize with file of $2.50 shares and 486 stock preferred statements registration billion shares of Incorporation Articles Inc had no of one million pursuant Inc.s statement issuance the to ability of up filed issue an to remaining under in $2.0 additional its limited is by does shelf not the by common and debt contain granted authority of billion effective currently which 2012 August securities statement registration under remaining its effective currently shelf statement registration filed securities an is $1.5 additional remaining under of statements October in limited its 2010 by which authority of billion debt and capitalization not by contain limit Board its on issuance of Directors which securities effective currently does granted shelf of discussion the which statement registration was long-term borrowings in the is sale the $300 of 30-year net 2012 2019 of the $200 4.50 its first of financings first percent bonds mortgage million this series of 10-year million first and $27.9 bonds mortgage from proceeds Aug 28 of following mortgage to previously bonds issued Aug 15 2041 due short-term repay in debt borrowings 2011 August SPS incurred total million $300 issued the million $100 from the completed the to first first the of 8.50 percent million to repay series following bonds with of 3.40 coupon bonds mortgage redeem bonds mortgage with of $450 due million 2019 8.0 percent bonds $100 and $69 due NSP Aug 15 2042 of control pollution March due of 2.15 percent coupon percent first million million of 8.50 2030 issued $300 of 30-year proceeds from the million first first and redeemed NSP-Wisconsin NSP-Wjsconsin term debt borrowings the authorize Energy registration statement additional due Sept Oct 12012 2042 of 2012 2012 shelf subsidiaries utility million April net from approval had Energy have securities needs Including portion the maturing on an maturing on due September 15 2022 its proceeds $500 bonds bonds percent Xcel Xcel securities to securities NSP-Minnesota bonds mortgage addition Energy issue of up for this series and Xcel statements and operational Aug 15 2022 to consolidated the net outstanding August issuance issued the of debt registration of debt Inc to Inc Energy stock authorizes ability financial Energy In Xcel of debt million shelf See consolidated in 2012 the filed Xcel automatic million $50 SPS has $50 make investments to securities However PSCos However subsidiaries utility 2012 PSCo has an automatic capacity the of Incorporation Articles 2011 subsidiaries currently $400 which time effective which NSP-Minnesota its subsidiaries utility money pool in the preferred and to capacity Board was Inc from time may does not allow money pool pursuant respectively par value Energy they Long-Term Inc.s and the consolidation participate Energy outstanding of $100 shares 2011 and Xcel not in with money pooi arrangement utility money pool allows for short-term investments in and may make investments in the utility subsidiaries at market-based utility Inc Energy in the participate does As of Dec 31 2012 stock common eliminated are PSCo and SPS million Xcel establish The approvals money pool arrangement Statements common to approval regulatory subsidiaries utility the NSP-Wisconsin Registration value the pool balances NSP-Minnesota commissions state required however rates FERC received Energy of between borrowings interest Xcel incurred to $100 portion fund daily bonds bonds mortgage $48.75 issued used of 10-year mortgage million million of the net operational first to repay of 5.10 proceeds 73 $600 percent first from with of 3.60 coupon of 30-year needs bonds mortgage with due mortgage the sale of of due of 7.875 million bonds coupon percent 2.25 Sept percent percent due Sept 152042 PSCo first mortgage used bonds Jan 12019 bonds the with first coupon mortgage of bonds 3.70 percent to repay due short- Plans Financing construction During Xcel Xcel 2013 and its may PSCo may approximately $500 SPS may Financing plans issue are issue of on depending first first refinance to of bonds mortgage in the in the short-term fund debt corporate purposes of half cash half first of half first first internal expenditures capital bonds in the bonds general following mortgage first mortgage for other the issuing maturities reduce retiring and acquisitions million of million million $100 change to asset anticipate S400 approximately approximately subject fund subsidiaries utility NSP-Minnesota issue securities equity in subsidiaries equity Inc and Energy debt issues Energy infuse programs of 2013 2013 2013 generation market and conditions other factors Credit Access RaEings credit due metrics to Off-Balance-Sheet Xcel to have operations Earnings Xcel reasonably of levels high priced markets capital expenditures and capital in part dependent is on SPS by one notch Moodys downaded 2012 The outlook lag regulatory and credit based on ratings the 2011 In expected Moodys placed of SPS moderation now stable is Arrangements does Energy likely to On Oct outlook SPS on negative not have current liquidity off-balance-sheet any or future on effect expenditures or capital condition changes resources that capital than those other arrangements financial material is disclosed currently in financial condition that revenues or have or are expenses reasonably results Guidance Energys 2013 earnings guidance Constructive outcomes Normal weather in case rate all are patterns $1.85 is retail electric Weather-adjusted retail and for certain per share are sales gas related to 2013 earnings are detailed year to projected been grow approximately to projected are have projects Key assumptions proceedings regulatory for the sales utility firm natural recovery $1.95 to experienced Weather-adjusted Rider revenue rolled decline into base 0.5 percent by approximately rates therefore percent the change is no longer meaningful OM are expenses Depreciation Interest are expense The ETR is 7A Quantitative See Item incorporated Item See Financial Item See Note 15-1 17 to for the an is to and to to approximately increase is to increase equivalents Qualitative projected 34 percent projected About Disclosures to $35 $85 million to $30 million $15 over percent million decrease to approximately are to percent million approximately be approximately and $75 increase AFUDC debt projected stock increase projected projected projected common Average is net of AFUDC equity to projected expense Property taxes Item of investors to over $40 million million to 2012 $20 to over $35 million index of and Supplementary financial consolidated financial statements to be approximately Market 490 Risk Data for over million included herein statements 2012 levels million from 2012 2012 levels 500 million levels 36 percent to by reference Statements 2012 levels levels summarized 74 quarterly financial data to shares below Management Report on Internal Controls The management Xcel reporting and management All be internal 31 can 2012 Xcel Xcel Energy reporting Energy Inc.s Their IS BENJAMIN Benjamin Chairman G.S no management this COSO Commission directors systems making In of is internal how G.S Fowke well designed control auditors with the criteria Integrated over have financial issued an and to designed and preparation effectiveness used Control internal independent report President in Internal Inc.s the it the assurance assessed assessment was system regarding matter for establishing responsible control provide only reasonable Inc Energy 2012 Inc Energy Inc.s board control effective Xcel of Xcel Energy Over Financial Reporting have fair presentation inherent to respect of Xcel set forth reporting is report the Based on effective on the control our assessment on those Energy Inc.s those and over of Sponsoring based Xcel even we over Energy financial Inc.s statements financial preparation internal Committee control Xcel to assurance Therefore statement Inc.s Energy by internal adequate of published limitations financial Framework audit maintaining provide reasonable determined systems financial reporting Organizations of believe that as the of III ISI III and TERESA Teresa Chief Executive Officer control over financial Feb 22 75 MADDEN Madden Senior Vice Feb 22 2013 President 2013 of Dec 31 appears herein FOWKE as and Chief Financial Officer Dec Treadway criteria internal to presentation
