Xcel Energy (XEL) 10-Q 31 Jul 09 2009 Q2 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Operating revenues
Electric	$1,733,695	$2,154,383	$3,620,252	$4,127,697
Natural gas	265,884	443,613	1,054,560	1,477,740
Other	16,504	17,519	36,813	38,466
Total operating revenues	2,016,083	2,615,515	4,711,625	5,643,903
Operating expenses:
Electric fuel and purchased power	797,101	1,269,422	1,721,849	2,357,502
Cost of natural gas sold and transported	146,388	319,800	738,153	1,142,927
Cost of sales - other	3,987	4,114	9,353	9,567
Other operating and maintenance expenses	472,401	456,781	944,295	917,802
Conservation and demand side management program expenses	41,417	29,226	86,636	64,795
Depreciation and amortization	202,348	207,774	411,063	413,381
Taxes (other than income taxes)	73,073	68,562	150,111	147,975
Total operating expenses	1,736,715	2,355,679	4,061,460	5,053,949
Operating income	279,368	259,836	650,165	589,954
Interest and other income, net	3,019	9,161	5,371	17,534
Allowance for funds used during construction - equity	18,720	14,939	36,947	29,159
Interest charges and financing costs
Interest charges - includes other financing costs of $5,114, $5,141, $10,152 and $10,132, respectively	139,297	133,723	281,100	265,894
Allowance for funds used during construction - debt	(9,845)	(9,596)	(20,073)	(19,123)
Total interest charges and financing costs	129,452	124,127	261,027	246,771
Income from continuing operations before income taxes and equity earnings	171,655	159,809	431,456	389,876
Income taxes	57,846	54,819	144,971	131,213
Equity earnings of unconsolidated subsidiaries	3,255	483	6,397	805
Income from continuing operations	117,064	105,473	292,882	259,468
Income (loss) from discontinued operations, net of tax	43	99	(1,708)	(778)
Net income	117,107	105,572	291,174	258,690
Dividend requirements on preferred stock	1,060	1,060	2,120	2,120
Earnings available to common shareholders	$116,047	$104,512	$289,054	$256,570
Weighted average common shares outstanding:
Basic (in shares)	456,307	430,811	455,753	430,187
Diluted (in shares)	456,766	435,868	456,362	435,360
Earnings per average common share:
Basic (in dollars per share)	0.25	0.24	0.63	0.6
Diluted (in dollars per share)	0.25	0.24	0.63	0.59
Cash dividends declared per common share	0.25	0.24	0.48	0.47

1_CONSOLIDATED STATEMENTS OF IN

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)
In Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
STATEMENTS OF INCOME
Financing costs	$5,114	$5,141	$10,152	$10,132

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Operating activities
Net income	$291,174	$258,690
Remove loss from discontinued operations	1,708	778
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	433,745	453,699
Nuclear fuel amortization	37,713	31,045
Deferred income taxes	146,903	137,430
Amortization of investment tax credits	(3,475)	(3,895)
Allowance for equity funds used during construction	(36,947)	(29,159)
Equity earnings of unconsolidated subsidiaries	(6,397)	(805)
Dividends from equity method investees	13,473
Share-based compensation expense	17,944	10,512
Net realized and unrealized hedging and derivative transactions	51,388	(7,887)
Changes in operating assets and liabilities:
Accounts receivable	190,491	86,265
Accrued unbilled revenues	264,308	145,774
Inventories	229,504	26,523
Recoverable purchased natural gas and electric energy costs	(31,891)	(113,318)
Other current assets	1,695	23,046
Accounts payable	(310,589)	(36,874)
Net regulatory assets and liabilities	32,886	8,742
Other current liabilities	(43,239)	(123,274)
Change in other noncurrent assets	5,898	(3,370)
Change in other noncurrent liabilities	(157,191)	(40,144)
Operating cash flows used in discontinued operations	(3,335)	(20,576)
Net cash provided by operating activities	1,125,766	803,202
Investing activities
Utility capital/construction expenditures	(947,474)	(1,040,327)
Allowance for equity funds used during construction	36,947	29,159
Purchase of investments in external decommissioning fund	(1,014,130)	(441,802)
Proceeds from the sale of investments in external decommissioning fund	1,012,705	420,106
Investment in WYCO Development LLC	(25,254)	(37,793)
Change in restricted cash	33	2,197
Other investments	3,537	3,437
Net cash used in investing activities	(933,636)	(1,065,023)
Financing activities
Repayment of short-term borrowings, net	(85,250)	(415,678)
Proceeds from issuance of long-term debt	394,897	892,710
Repayment of long-term debt, including reacquisition premiums	(168,971)	(1,825)
Proceeds from issuance of common stock	2,665	3,015
Dividends paid	(203,859)	(199,755)
Net cash (used in) provided by financing activities	(60,518)	278,467
Net increase in cash and cash equivalents	131,612	16,646
Net (decrease) increase in cash and cash equivalents - discontinued operations	(557)	3,105
Cash and cash equivalents at beginning of year	249,198	51,120
Cash and cash equivalents at end of quarter	380,253	70,871
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	(250,990)	(224,278)
Cash paid for income taxes (net of refunds received)	(26,569)	(47,396)
Supplemental disclosure of non-cash investing transactions:
Property, plant and equipment additions in accounts payable	37,066	30,943
Supplemental disclosure of non-cash financing transactions:
Issuance of common stock for reinvested dividends and 401(k) plans	$36,076	$41,626

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Jun. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	$380,253	$249,198
Accounts receivable, net	721,410	900,781
Accrued unbilled revenues	478,906	743,479
Inventories	435,522	666,709
Recoverable purchased natural gas and electric energy costs	79,229	32,843
Derivative instruments valuation	118,790	101,972
Prepayments and other	253,188	263,906
Current assets held for sale and related to discontinued operations	91,393	56,641
Total current assets	2,558,691	3,015,529
Property, plant and equipment, net	18,201,097	17,688,720
Other assets:
Nuclear decommissioning fund and other investments	1,317,097	1,232,081
Regulatory assets	2,307,931	2,357,279
Derivative instruments valuation	310,241	325,688
Other	136,817	157,742
Noncurrent assets held for sale and related to discontinued operations	155,377	181,456
Total other assets	4,227,463	4,254,246
Total assets	24,987,251	24,958,495
Current liabilities
Current portion of long-term debt	458,751	558,772
Short-term debt	370,000	455,250
Accounts payable	793,746	1,120,324
Taxes accrued	169,955	220,542
Accrued interest	170,475	168,632
Dividends payable	112,710	108,838
Derivative instruments valuation	73,195	75,539
Other	371,509	331,419
Current liabilities held for sale and related to discontinued operations	30,956	6,929
Total current liabilities	2,551,297	3,046,245
Deferred credits and other liabilities:
Deferred income taxes	2,963,448	2,792,560
Deferred investment tax credits	102,241	105,716
Regulatory liabilities	1,221,717	1,194,596
Asset retirement obligations	1,169,264	1,135,182
Derivative instruments valuation	328,210	340,802
Customer advances	309,370	323,445
Pension and employee benefit obligations	913,660	1,030,532
Other	190,582	168,352
Noncurrent liabilities held for sale and related to discontinued operations	3,121	20,656
Total deferred credits and other liabilities	7,201,613	7,111,841
Capitalization
Long-term debt	8,055,638	7,731,688
Preferred stockholders' equity - authorized 7,000,000 shares of $100 par value; outstanding shares: 1,049,800	104,980	104,980
Common stockholders' equity - authorized 1,000,000,000 shares of $2.50 par value; outstanding shares: June 30, 2009 - 455,716,724; Dec. 31, 2008 - 453,791,770	7,073,723	6,963,741
Total liabilities and equity	$24,987,251	$24,958,495

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
	Jun. 30, 2009	Dec. 31, 2008
BALANCE SHEETS
Preferred Stock, Shares Authorized	7,000,000	7,000,000
Preferred Stock, Par or Stated Value Per Share	$100	$100
Preferred Stock, Shares Outstanding, Beginning Balance	1,049,800	1,049,800
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common Stock, Par or Stated Value Per Share	2.5	2.5
Shares, Issued, Beginning Balance	455,716,724	453,791,770

CONSOLIDATED STATEMENTS OF COMM

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME (USD $)
In Thousands	Common Stock Issued	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2007	$1,071,957	$4,286,917	$963,916	($21,788)	$6,301,002
Shares, beginning balance at Dec. 31, 2007	428,783
Increase (Decrease) in Stockholders' Equity
EITF 06-4 adoption, net of tax of $0, $0, $(1,038), and $0, respectively.			(1,640)		(1,640)
Net income			258,690		258,690
Changes in unrecognized amounts of pension and retiree medical benefits, net of tax of $241, $255, $876, and $509, respectively				58	58
Net derivative instrument fair value changes during the period, net of tax of $723, $1,379, $(1,067), and $2,180, respectively				(4,718)	(4,718)
Unrealized (loss) gain - marketable securities, net of tax of $(67), $232, $(67), and $168, respectively				(101)	(101)
Dividends Declared:
Cumulative preferred stock			(2,120)		(2,120)
Common stock			(201,358)		(201,358)
Issuances of common stock	5,335	7,541			12,876
Issuances of common stock - shares	2,134
Share-based compensation		11,781			11,781
Ending balance at Jun. 30, 2008	1,077,292	4,306,239	1,017,488	(26,549)	6,374,470
Shares, ending balance at Jun. 30, 2008	430,917
Beginning balance at Mar. 31, 2008	1,076,281	4,293,053	1,015,317	(27,603)	6,357,048
Shares, beginning balance at Mar. 31, 2008	430,512
Increase (Decrease) in Stockholders' Equity
Net income			105,572		105,572
Changes in unrecognized amounts of pension and retiree medical benefits, net of tax of $241, $255, $876, and $509, respectively				247	247
Net derivative instrument fair value changes during the period, net of tax of $723, $1,379, $(1,067), and $2,180, respectively				908	908
Unrealized (loss) gain - marketable securities, net of tax of $(67), $232, $(67), and $168, respectively				(101)	(101)
Dividends Declared:
Cumulative preferred stock			(1,060)		(1,060)
Common stock			(102,341)		(102,341)
Issuances of common stock	1,011	7,489			8,500
Issuances of common stock - shares	405
Share-based compensation		5,697			5,697
Beginning balance at Dec. 31, 2008	1,134,480	4,695,019	1,187,911	(53,669)	6,963,741
Shares, beginning balance at Dec. 31, 2008	453,792				453,792
Increase (Decrease) in Stockholders' Equity
Net income			291,174		291,174
Changes in unrecognized amounts of pension and retiree medical benefits, net of tax of $241, $255, $876, and $509, respectively				741	741
Net derivative instrument fair value changes during the period, net of tax of $723, $1,379, $(1,067), and $2,180, respectively				3,331	3,331
Unrealized (loss) gain - marketable securities, net of tax of $(67), $232, $(67), and $168, respectively				243	243
Dividends Declared:
Cumulative preferred stock			(2,120)		(2,120)
Common stock			(220,560)		(220,560)
Issuances of common stock	4,812	18,065			22,877
Issuances of common stock - shares	1,925
Share-based compensation		14,296			14,296
Ending balance at Jun. 30, 2009	1,139,292	4,727,380	1,256,405	(49,354)	7,073,723
Shares, ending balance at Jun. 30, 2009	455,717				455,717
Beginning balance at Mar. 31, 2009	$1,138,141	$4,710,666	$1,252,471	($52,196)	$7,049,082
Shares, beginning balance at Mar. 31, 2009	455,256

2_CONSOLIDATED STATEMENTS OF CO

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME (Parenthetical) (USD $)
In Thousands	Accumulated Other Comprehensive Income (Loss)	Total
Consolidated Statements of Common Stockholder's Equity and Comprehensive Income
EITF 06-4 adoption, tax	($1,038)	($1,038)
Changes in unrecognized amounts of pension and retiree medical benefits, tax	876	876
Net derivative instrument fair value changes during the period, tax	(1,067)	(1,067)
Unrealized gain (loss) - marketable securities, tax	(67)	(67)
Consolidated Statements of Common Stockholder's Equity and Comprehensive Income
Changes in unrecognized amounts of pension and retiree medical benefits, tax	241	241
Net derivative instrument fair value changes during the period, tax	723	723
Unrealized gain (loss) - marketable securities, tax	(67)	(67)
Consolidated Statements of Common Stockholder's Equity and Comprehensive Income
Changes in unrecognized amounts of pension and retiree medical benefits, tax	509	509
Net derivative instrument fair value changes during the period, tax	2,180	2,180
Unrealized gain (loss) - marketable securities, tax	168	168
Consolidated Statements of Common Stockholder's Equity and Comprehensive Income
Changes in unrecognized amounts of pension and retiree medical benefits, tax	255	255
Net derivative instrument fair value changes during the period, tax	1,379	1,379
Unrealized gain (loss) - marketable securities, tax	$232	$232

Managements Opinion

Managements Opinion
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Managements' Opinion	In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) as of June30, 2009 and Dec.31, 2008; the results of its operations and changes in stockholders equity for the three and six months ended June30, 2009 and 2008; and its cash flows for the six months ended June30, 2009 and 2008. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June30, 2009 up to July31, 2009, which is the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec.31, 2008 balance sheet information has been derived from the audited 2008 financial statements. These notes to the consolidated financial statements have been prepared pursuant to the rulesand regulations of the SEC for Quarterly Reports on Form10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rulesand regulations. For further information, refer to the consolidated financial statements and notes thereto included in the Xcel Energy Annual Report on Form10-K for the year ended Dec.31, 2008, filed with the SEC on Feb.27, 2009. Due to the seasonality of Xcel Energys electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in Xcel Energys Annual Report on Form10-K for the year ended Dec.31, 2008, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. Reclassifications Equity earnings of Xcel Energys unconsolidated subsidiaries were reclassified from interest and other income and income tax expense into a separate line item on the consolidated income statement. The reclassification did not have an impact on net income or earnings per share.

Accounting Pronouncements

Accounting Pronouncements
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Accounting Pronouncements	2. Accounting Pronouncements Recently Adopted Business Combinations (Statement of Financial Accounting Standards (SFAS) No.141 (revised 2007)) In December2007, the Financial Accounting Standards Board (FASB) issued SFAS No.141(R), which establishes principles and requirements for how an acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest; recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. SFAS No.141(R)is to be applied prospectively to business combinations for which the acquisition date is on or after the beginning of an entitys fiscal year that begins on or after Dec.15, 2008. Xcel Energy implemented SFAS No.141(R)on Jan.1, 2009, and the implementation did not have a material impact on its consolidated financial statements. Noncontrolling Interests in Consolidated Financial Statements, an Amendment of Accounting Research Bulletin (ARB) No.51 (SFAS No.160) In December2007, the FASB issued SFAS No.160, which establishes accounting and reporting standards that require the ownership interest in subsidiaries held by parties other than the parent be clearly identified and presented in the consolidated balance sheets within equity, but separate from the parents equity; the amount of consolidated net income attributable to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of earnings; and changes in a parents ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently as equity transactions. SFAS No.160 was effective for fiscal years beginning on or after Dec.15, 2008. Xcel Energy implemented SFAS No.160 on Jan.1, 2009, and the implementation did not have a material impact on its consolidated financial statements. Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No.133 (SFAS No.161) In March2008, the FASB issued SFAS No.161, which is intended to enhance disclosures to help users of the financial statements better understand how derivative instruments and hedging activities affect an entitys financial position, financial performance and cash flows. SFAS No.161 amends and expands the disclosure requirements of SFAS No.133, Accounting for Derivative Instruments and Hedging Activities, to require disclosures including objectives and strategies for using derivatives, gains and losses on derivative instruments, and credit-risk-related contingent features in derivative contracts. SFAS No.161 was effective for financial statements issued for fiscal years and interim periods beginning after Nov.15, 2008. Xcel Energy implemented SFAS No.161 on Jan.1, 2009, and the implementation did not have a material impact on its consolidated financial statements. For further discussion and SFAS No.161 required disclosures, see Note

Selected Balance Sheet Data

Selected Balance Sheet Data
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Selected Balance Sheet Data	3. Selected Balance Sheet Data (ThousandsofDollars) June30,2009 Dec.31,2008 Accounts receivable, net Accounts receivable $ 781,586 $ 965,020 Less allowance for bad debts (60,176 ) (64,239 ) $ 721,410 $ 900,781 Inventories Materials and supplies $ 168,664 $ 158,709 Fuel 176,552 227,462 Natural gas 90,306 280,538 $ 435,522 $ 666,709 Property, plant and equipment, net Electric plant $ 22,416,942 $ 21,601,094 Natural gas plant 3,063,906 3,004,088 Common and other property 1,470,431 1,497,162 Construction work in progress 1,686,177 1,832,022 Total property, plant and equipment 28,637,456 27,934,366 Less accumulated depreciation (10,737,081 ) (10,501,266 ) Nuclear fuel 1,694,008 1,611,193 Less accumulated amortization (1,393,286 ) (1,355,573 ) $ 18,201,097 $ 17,688,720

Discontinued Operations

Discontinued Operations
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Discontinued Operations	4. Discontinued Operations Results of operations for divested businesses and the results of businesses held for sale are reported, for all periods presented, as discontinued operations. In addition, the assets and liabilities of the businesses divested and held for sale have been reclassified to assets and liabilities held for sale in the consolidated balance sheets. The majority of current and noncurrent assets related to discontinued operations are deferred tax assets associated with temporary differences and net operating loss (NOL) and tax credit carryforwards that will be deductible in future years. The major classes of assets and liabilities held for sale and related to discontinued operations are as follows: (ThousandsofDollars) June30, 2009 Dec.31,2008 Cash $ 10,088 $ 10,645 Accounts receivable, net 827 209 Deferred income tax benefits 49,130 39,422 Other current assets 31,348 6,365 Current assets held for sale and related to discontinued operations $ 91,393 $ 56,641 Deferred income tax benefits $ 150,571 $ 150,912 Other noncurrent assets 4,806 30,544 Noncurrent assets held for sale and related to discontinued operations $ 155,377 $ 181,456 Accounts payable $ 522 $ 760 Other current liabilities 30,434 6,169 Current liabilities held for sale and related to discontinued operations $ 30,956 $ 6,929 Noncurrent liabilities held for sale and related to discontinued operations $ 3,121 $ 20,656

Income Taxes

Income Taxes
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Income Taxes	5. Income Taxes Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No.109 (FIN48) Xcel Energy files a consolidated federal income tax return and state tax returns based on income in its major operating jurisdictions of Colorado, Minnesota, Texas, and Wisconsin, and various other state income-based tax returns. Federal Audit In the first quarter of 2008, the Internal Revenue Service (IRS) completed an examination of Xcel Energys federal income tax returns for 2004 and 2005 (and research credits for 2003). The IRS did not propose any material adjustments for those tax years. Tax year 2004 is the earliest open year and the statute of limitations applicable to Xcel Energys 2004 federal income tax return remains open until Dec.31, 2009. In the third quarter of 2008, the IRS commenced an examination of tax years 2006 and 2007. As of June30, 2009, the IRS had not proposed any material adjustments to tax years 2006 and 2007. State Audits In the first quarter of 2008, the state of Minnesota concluded an income tax audit through tax year 2001 and the state of Texas concluded an income tax audit through tax year 2005. No material adjustments were proposed for these state audits. As of June30, 2009, Xcel Energys earliest open tax years in which an audit can be initiated by state taxing authorities in its major operating jurisdictions are as follows: State Earliest Open Tax Year in Which an Audit Can Be Initiated Colorado 2004 Minnesota 2004 Texas 2004 Wisconsin 2004 There currently are no state income tax audits in progress. Unrecognized Tax Benefits The amount of unrecognized tax benefits reported in continuing operations was $33.5 million on June30, 2009 and $35.5 million on Dec.31, 2008. The amount of unrecognized tax benefits reported in discontinued operations was $6.6 million on both June30, 2009 and Dec.31, 2008. The unrecognized tax benefit amounts reported in continuing operations were increased by payables associated with NOL and tax credit carryovers of $1.0 million on June30, 2009 and reduced by the tax benefits associated with NOL and tax credit carryovers of $13.1 million on Dec.31, 2008. The unrecognized tax benefit amounts reported in discontinued operations were reduced by the tax benefits associated with NOL and tax credit carryovers of $23.9 million on June30, 2009 and $26.5 million on Dec.31, 2008. The unrecognized tax benefit balance reported in continuing operations included $7.0 million and $9.2 million of tax positions on June30, 2009 and Dec.31, 2008, respectively, which if recognized would affect the annual effective tax rate. In addition, the unrecognized tax benefit balance reported in continuing operations included $26.5 million and $26.3 million of tax positions on June30, 2009 and Dec.31, 2008, respectively, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. The decrease in the unrecognized t

Rate Matters

Rate Matters
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Rate Matters	6. Rate Matters Except to the extent noted below, the circumstances set forth in Note 16 to the consolidated financial statements included in Xcel Energys Annual Report on Form10-K for the year ended Dec.31, 2008 appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. The following discussion includes unresolved proceedings that are material to Xcel Energys financial position. NSP-Minnesota Pending and Recently Concluded Regulatory Proceedings Minnesota Public Utilities Commission (MPUC) Base Rate NSP-Minnesota Electric Rate Case In November2008, NSP-Minnesota filed a request with the MPUC to increase Minnesota electric rates by $156million annually, or 6.05percent. The request is based on a 2009 forecast test-year, an electric rate base of $4.1 billion, a requested return on equity (ROE) of 11.0percent and an equity ratio of 52.5percent. In December2008, the MPUC approved an interim rate increase of $132 million, or 5.12 percent, effective Jan.2, 2009. The primary difference between interim rate levels approved and NSP-Minnesotas request of $156 million is due to a previously authorized ROE of 10.54 percent and NSP-Minnesotas requested ROE of 11.0 percent. On April7, 2009, intervenors submitted direct testimony. The Office of Energy Security (OES) recommended a revenue increase of $72 million, based on a ROE of 10.88 percentand an equity ratio of 52.5 percent. The recommended revenue increase included recognition of a 10-year life extension of the Prairie Island nuclear plant, resulting in a decrease of approximately $40 million in depreciation and decommissioning expenses and rejection of NSP-Minnesotas proposednuclear rate stability plan.These adjustmentswould reduce NSP-Minnesotas overall revenue deficiency while at the same time reducing expense accruals by $40 million. On May5, 2009, NSP-Minnesota filed rebuttal testimony that reduced its rate increase request to $138 million. The reduction of $18 million is primarily associated with cost decreases in certain commodities, management initiatives to defer a wage increase for non-bargaining employees, reductions in employee expenses and lower projected short-term capacity costs since the time of filing. Partially offsetting these reductions are increases in health care and pension costs. The rebuttal testimony offered an alternative proposal to reflect a three-year life extension for both decommissioning and depreciation expense accruals for the Prairie Island nuclear plant. The revenue requirement under NSP-Minnesotas alternative proposal was $121 million. Also on May5, 2009, the Office of the Attorney General (OAG) filed testimony that recommended disallowance of certain Board of Directors and employees expenses, the aggregate of which NSP-Minnesota estimates to be less than $1.5 million. In addition, the OAG recommended use of different allocators for corporate costs that would reduce the deficiency by $3.4 million. On May26, 2009, parties filed surrebuttal testimony. The OES revised its revenue deficiency to approximately $92 million. The OES continues to recommend a 10-yea

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Commitments and Contingent Liabilities	7. Commitments and Contingent Liabilities Except to the extent noted below, the circumstances set forth in Notes 16, 17 and 18 to the consolidated financial statements included in Xcel Energys Annual Report on Form10-K for the year ended Dec.31, 2008, and Note 6 to the consolidated financial statements in this Quarterly Report on Form10-Q appropriately represent, in all material respects, the current status of commitments and contingent liabilities, including those regarding public liability for claims resulting from any nuclear incident, and are incorporated herein by reference. The following include contingencies and unresolved contingencies that are material to Xcel Energys financial position. Environmental Contingencies Xcel Energy and its subsidiaries have been, or are currently involved with, the cleanup of contamination from certain hazardous substances at several sites. In many situations, the subsidiary involved believes it will recover some portion of these costs through insurance claims. Additionally, where applicable, the subsidiary involved is pursuing, or intends to pursue, recovery from other potentially responsible parties (PRPs) and through the rate regulatory process. New and changing federal and state environmental mandates can also create added financial liabilities for Xcel Energy and its subsidiaries, which are normally recovered through the rate regulatory process. To the extent any costs are not recovered through the options listed above, Xcel Energy would be required to recognize an expense. Site Remediation Xcel Energy must pay all or a portion of the cost to remediate sites where past activities of its subsidiaries or other parties have caused environmental contamination. Environmental contingencies could arise from various situations, including sites of former manufactured gas plants (MGPs) operated by Xcel Energy subsidiaries, predecessors, or other entities; and third-party sites, such as landfills, to which Xcel Energy is alleged to be a PRP that sent hazardous materials and wastes. At June30, 2009, the liability for the cost of remediating these sites was estimated to be $102.9 million, of which $2.5million was considered to be a current liability. Manufactured Gas Plant Sites Ashland Manufactured Gas Plant Site NSP-Wisconsin has been named a PRP for creosote and coal tar contamination at a site in Ashland, Wis. The Ashland/Northern States Power Lakefront Superfund Site (Ashland site) includes property owned by NSP-Wisconsin, which was previously an MGP facility and two other properties: an adjacent city lakeshore park area, on which an unaffiliated third party previously operated a sawmill, and an area of Lake Superiors Chequamegon Bay adjoining the park. In September2002, the Ashland site was placed on the National Priorities List. A final determination of the scope and cost of the remediation of the Ashland site is not currently expected until late 2009 or 2010. In October2004, the state of Wisconsin filed a lawsuit in Wisconsin state court for reimbursement of past oversight costs incurred at the Ashland site between 1994 and March2003 in the approximate amount of $1.4million. Th

Short-Term Borrowings and Other

Short-Term Borrowings and Other Financing Instruments
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Short-Term Borrowings and Other Financing Instruments	8. Short-Term Borrowings and Other Financing Instruments Commercial Paper At June30, 2009 and Dec.31, 2008, Xcel Energy and its utility subsidiaries had commercial paper outstanding of approximately $370.0 million and $330.3 million, respectively. The weighted average interest rates at June30, 2009 and Dec.31, 2008 were 1.01 percent and 3.53 percent, respectively. At June30, 2009 and Dec.31, 2008, Xcel Energy and its utility subsidiaries had combined board approval to issue up to $2.25 billion of commercial paper. Credit Facility Bank Borrowings At Dec.31, 2008, Xcel Energy and its subsidiaries had credit facility bank borrowings of $125.0 million with a weighted average interest rate of 1.88 percent. At June30, 2009, Xcel Energy and its subsidiaries had no credit facility bank borrowings. Money Pool Xcel Energy and its utility subsidiaries have established a money pool arrangement that allows for short-term loans between the utility subsidiaries and from the holding company to the utility subsidiaries at market-based interest rates. The money pool arrangement does not allow loans from the subsidiaries to the holding company. At June30, 2009 and Dec.31, 2008, Xcel Energy and its utility subsidiaries had money pool loans outstanding of $38.0 million and $104.5 million, respectively. The money pool loans are eliminated upon consolidation. The weighted average interest rates at June30, 2009 and Dec.31, 2008, were 0.90 percent and 3.48 percent, respectively.

Long-Term Borrowings and Other

Long-Term Borrowings and Other Financing Instruments
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Long-Term Borrowings and Other Financing Instruments	9. Long-Term Borrowings and Other Financing Instruments On March1, 2009, NSP-Wisconsin redeemed its 7.375percent $65.0million first mortgage bonds due Dec.1, 2026. In addition to repayment of all principal amounts, NSP-Wisconsin paid accrued interest and a redemption premium totaling approximately $3.0 million. On June4, 2009, PSCo issued $400 million of 5.125 percent first mortgage bonds, series due 2019. PSCo added the proceeds from the sale of the first mortgage bonds to its general funds and applied a portion of the net proceeds to fund the payment at maturity of $200 million of 6.875 percent unsecured senior notes due July15, 2009.

Derivative Instruments

Derivative Instruments
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Derivative Instruments	10. Derivative Instruments Effective Jan.1, 2009, Xcel Energy adopted SFAS No.161, which requires additional disclosures regarding why an entity uses derivative instruments, the volume of an entitys derivative activities, the fair value amounts recorded to the consolidated balance sheet for derivatives, the gains and losses on derivative instruments included in the consolidated statement of income or deferred, and information regarding certain credit-risk-related contingent features in derivative contracts. Xcel Energy and its utility subsidiaries enter into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to reduce risk in connection with changes in interest rates, utility commodity prices and vehicle fuel prices. See additional information pertaining to the valuation of derivative instruments in Note 12 to the consolidated financial statements. Interest Rate Derivatives Xcel Energy and its utility subsidiaries enter into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for a specific period. These derivative instruments are designated as cash flow hedges for accounting purposes. At June30, 2009, accumulated other comprehensive income related to interest rate derivatives included $0.6 million of net losses expected to be reclassified into earnings during the next 12months as the related hedged interest transactions impact earnings. At June30, 2009, Xcel Energy had one unsettled interest rate swap outstanding at SPS with a notional amount of $25 million. The interest rate swap is not designated as a hedging instrument, and as such, changes in fair value for the interest rate swap are recorded to earnings. Commodity Derivatives Xcel Energys utility subsidiaries enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in their electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, gas for resale and vehicle fuel. At June30, 2009, Xcel Energy had various utility commodity and vehicle fuel related contracts designated as cash flow hedges extending through December2012. Xcel Energys utility subsidiaries also enter into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers but are not designated as qualifying hedging transactions. Changes in the fair value of these derivative instruments are recorded in other comprehensive income or deferred as a regulatory asset or liability. The classification as a regulatory asset or liability is based on the commission approved regulatory recovery mechanisms. Xcel Energy recorded immaterial amounts to income related to the ineffectiveness of cash flow hedges for the six months ended June30, 2009 and 2008. At June30, 2009, Xcel Energy had $6.1 million of net losses in accumulated other comprehensive income related to utility commodity and vehicle fuel cash flow

Financial Instruments

Financial Instruments
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Financial Instruments	11. Financial Instruments The estimated fair values of Xcel Energys recorded financial instruments are as follows: June30, 2009 Dec.31, 2008 (ThousandsofDollars) Carrying Amount Fair Value Carrying Amount Fair Value Nuclear decommissioning fund $ 1,118,593 $ 1,118,593 $ 1,075,294 $ 1,075,294 Other investments 10,027 10,027 9,864 9,864 Long-term debt, including current portion 8,514,389 8,993,576 8,290,460 8,562,277 The fair value of cash and cash equivalents, notes and accounts receivable and notes and accounts payable are not materially different from their carrying amounts. The fair value of Xcel Energys nuclear decommissioning fund is based on published trading data and pricing models, generally using the most observable inputs available for each class of security. The fair values of Xcel Energys other investments are estimated based on quoted market prices for those or similar investments. The fair value of Xcel Energys long-term debt is estimated based on the quoted market prices for the same or similar issues, or the current rates for debt of the same remaining maturities and credit quality. The fair value estimates presented are based on information available to management as of June30, 2009 and Dec.31, 2008. These fair value estimates have not been comprehensively revalued for purposes of these consolidated financial statements since that date, and current estimates of fair values may differ significantly. Guarantees Xcel Energy provides guarantees and bond indemnities supporting certain subsidiaries. The guarantees issued by Xcel Energy guarantee payment or performance by its subsidiaries under specified agreements or transactions. As a result, Xcel Energys exposure under the guarantees is based upon the net liability of the relevant subsidiary under the specified agreements or transactions. Most of the guarantees issued by Xcel Energy limit the exposure of Xcel Energy to a maximum amount stated in the guarantees. On June30, 2009 and Dec.31, 2008, Xcel Energy had issued guarantees of up to $73.0 million and $67.5 million, respectively, with $17.9 million and $18.2 million of known exposure under these guarantees, respectively. In addition, Xcel Energy provides indemnity protection for bonds issued for itself and its subsidiaries. The total amount of bonds with this indemnity outstanding as of June30, 2009 and Dec.31, 2008, was approximately $27.4 million and $27.9 million, respectively. The total exposure of this indemnification cannot be determined at this time. Xcel Energy believes the exposure to be significantly less than the total amount of bonds outstanding. Letters of Credit Xcel Energy and its subsidiaries use letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At June30, 2009 and Dec.31, 2008, there were $22.1 million and $24.1 million of letters of credit outstanding, respectively. The contract amounts of these letters of credit approximate their fair value and are subject to fees determined in the marketplace.

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Fair Value Measurements	12. Fair Value Measurements Effective Jan.1, 2008, Xcel Energy adopted Fair Value Measurements (SFAS No.157) for recurring fair value measurements. SFAS No.157 provides a single definition of fair value and requires enhanced disclosures about assets and liabilities measured at fair value. SFAS No.157 establishes a hierarchal framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value. The three levels defined by the SFAS No.157 hierarchy and examples of each level are as follows: Level 1 Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed by the New York Stock Exchange and commodity derivative contracts listed on the New York Mercantile Exchange. Level 2 Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial transmission rights (FTRs). The following tables present, for each of these hierarchy levels, Xcel Energys assets and liabilities that are measured at fair value on a recurring basis: June30, 2009 (ThousandsofDollars) Level1 Level2 Level3 Counterparty Netting Net Balance Assets Cash equivalents $ $ 307,500 $ $ $ 307,500 Nuclear decommissioning fund Cash equivalents 20,576 20,576 Debt securities 531,071 86,337 617,408 Equity securities 480,609 480,609 Commodity derivatives 24,788 71,265 (15,676 ) 80,377 Total $ 480,609 $ 883,935 $ 157,602 $ (15,676 ) $ 1,506,470 Liabilities Commodity derivatives $ $ 52,081 $ 21,954 $ (18,074 ) $ 55,961 Interest rate derivatives 6,494 6,494 Total $ $ 58,575 $ 21,954 $ (18,074 ) $ 62,455 Dec.31, 2008 (ThousandsofDollars) Level1 Level2 Level3 Counterparty Netting Net Balance Assets Cash equivalents $ $ 50,000 $ $ $ 50,000 Nuclear decommissioning fund Cash equivalents 8,449 8,449 Debt securities 491,486 109,423 600,909 Equity securities 465,936 465,936 Commodity derivatives 29,648 39,565 (16,245

Interest and Other Income

Interest and Other Income (Expenses), Net
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Detail of Interest and Other Income (Expenses), Net	13. Interest and Other Income (Expenses), Net Interest and other income (expenses), net, consisted of the following: Three Months Ended June30, Six Months Ended June30, (ThousandsofDollars) 2009 2008 2009 2008 Interest income $ 3,140 $ 4,880 $ 6,066 $ 12,390 Other nonoperating income 2,331 1,844 2,830 3,606 Insurance policy (expenses) income (2,371 ) 2,437 (3,343 ) 1,538 Other nonoperating expenses (81 ) (182 ) Total interest and other income (expenses), net $ 3,019 $ 9,161 $ 5,371 $ 17,534

Segment Information

Segment Information
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Segment Information	14. Segment Information Xcel Energy has the following reportable segments: regulated electric, regulated natural gas and all other. Commodity trading operations performed by regulated operating companies are not a reportable segment. Commodity trading results are included in the regulated electric segment. (ThousandsofDollars) Regulated Electric Regulated NaturalGas All Other Reconciling Eliminations Consolidated Total Three Months Ended June30, 2009 Operating revenues from external customers $ 1,733,695 $ 265,884 $ 16,504 $ $ 2,016,083 Intersegment revenues 161 627 (788 ) Total revenues $ 1,733,856 $ 266,511 $ 16,504 $ (788 ) $ 2,016,083 Income (loss) from continuing operations $ 116,199 $ 11,796 $ 6,391 $ (17,322 ) $ 117,064 Three Months Ended June30, 2008 Operating revenues from external customers $ 2,154,383 $ 443,613 $ 17,519 $ $ 2,615,515 Intersegment revenues 296 1,997 (2,293 ) Total revenues $ 2,154,679 $ 445,610 $ 17,519 $ (2,293 ) $ 2,615,515 Income (loss) from continuing operations $ 106,770 $ 11,872 $ 5,955 $ (19,124 ) $ 105,473 (ThousandsofDollars) Regulated Electric Regulated NaturalGas All Other Reconciling Eliminations Consolidated Total Six Months Ended June30, 2009 Operating revenues from external customers $ 3,620,252 $ 1,054,560 $ 36,813 $ $ 4,711,625 Intersegment revenues 418 1,921 (2,339 ) Total revenues $ 3,620,670 $ 1,056,481 $ 36,813 $ (2,339 ) $ 4,711,625 Income (loss) from continuing operations $ 237,641 $ 72,070 $ 14,587 $ (31,416 ) $ 292,882 Six Months Ended June30, 2008 Operating revenues from external customers $ 4,127,697 $ 1,477,740 $ 38,466 $ $ 5,643,903 Intersegment revenues 542 4,623 (5,165 ) Total revenues $ 4,128,239 $ 1,482,363 $ 38,466 $ (5,165 ) $ 5,643,903 Income (loss) from continuing operations $ 199,847 $ 79,438 $ 15,606 $ (35,423 ) $ 259,468

Common Stock and Equivalents

Common Stock and Equivalents
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Common Stock and Equivalents	15. Common Stock and Equivalents Xcel Energy has common stock equivalents consisting of 401(k)equity awards and stock options. Restricted stock units and performance shares are included as common stock equivalents when all necessary conditions for issuance have been satisfied by the end of the period being reported. For the three months ended June30, 2009 and 2008, Xcel Energy had approximately 7.6 million and 8.0 million stock options outstanding, respectively, that were antidilutive and excluded from the earnings per share calculation. For the six months ended June30, 2009 and 2008, Xcel Energy had approximately 7.7 million and 8.0 million stock options outstanding, respectively, that were antidilutive and excluded from the earnings per share calculation. The dilutive impact of common stock equivalents affected earnings per share as follows for the three and six months ended June30, 2009 and 2008: Three Months Ended June30, 2009 Three Months Ended June30, 2008 (Amountsinthousands,exceptpersharedata) Income Shares Per Share Amount Income Shares Per Share Amount Net income $ 117,107 $ 105,572 Less: Dividend requirements on preferred stock (1,060 ) (1,060 ) Basic earnings per share: Earnings available to common shareholders 116,047 456,307 $ 0.25 104,512 430,811 $ 0.24 Effect of dilutive securities: Convertible senior notes 802 4,663 401(k)equity awards 459 364 Stock options 30 Diluted earnings per share: Earnings available to common shareholders and assumed conversions $ 116,047 456,766 $ 0.25 $ 105,314 435,868 $ 0.24 Six Months Ended June30, 2009 Six Months Ended June30, 2008 (Amountsinthousands,exceptpersharedata) Income Shares Per Share Amount Income Shares Per Share Amount Net income $ 291,174 $ 258,690 Less: Dividend requirements on preferred stock (2,120 ) (2,120 ) Basic earnings per share: Earnings available to common shareholders 289,054 455,753 $ 0.63 256,570 430,187 $ 0.60 Effect of dilutive securities: Convertible senior notes 1,582 4,663 401(k)equity awards 609 481 Stock options 29 Diluted earnings per share: Earnings available to common shareholders and assumed conversions $ 289,054 456,362 $ 0.63 $ 258,152 435,360 $ 0.59

Benefit Plans and Other Postret

Benefit Plans and Other Postretirement Benefits
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Consolidated Financial Statements
Benefit Plans and Other Postretirement Benefits	16. Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost (Credit) Three Months Ended June30, 2009 2008 2009 2008 (ThousandsofDollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 16,744 $ 14,929 $ 1,057 $ 1,211 Interest cost 43,046 44,677 13,050 12,894 Expected return on plan assets (64,909 ) (68,697 ) (5,993 ) (8,425 ) Amortization of transition obligation 3,726 3,644 Amortization of prior service cost (credit) 6,154 5,166 (711 ) (544 ) Amortization of net loss 3,299 3,511 4,779 3,031 Net periodic benefit cost (credit) 4,334 (414 ) 15,908 11,811 (Cost) credits not recognized and additional cost recognized due to theeffects of regulation (959 ) 1,925 973 973 Net benefit cost recognized for financial reporting $ 3,375 $ 1,511 $ 16,881 $ 12,784 Six Months Ended June30, 2009 2008 2009 2008 (ThousandsofDollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 32,730 $ 31,702 $ 2,333 $ 2,675 Interest cost 84,895 85,260 25,206 25,440 Expected return on plan assets (128,269 ) (137,169 ) (11,388 ) (15,925 ) Amortization of transition obligation 7,222 7,288 Amortization of prior service cost (credit) 12,309 10,332 (1,363 ) (1,088 ) Amortization of net loss 6,228 6,370 9,665 5,749 Net periodic benefit cost (credit) 7,893 (3,505 ) 31,675 24,139 (Cost) credits not recognized and additional cost recognized due to the effects of regulation (1,446 ) 4,517 1,946 1,946 Net benefit cost recognized for financial reporting $ 6,447 $ 1,012 $ 33,621 $ 26,085

Document and Entity Information

Document and Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 17, 2009	Jun. 30, 2008
Document and Entity Information
Entity Registrant Name	XCEL ENERGY INC
Entity Central Index Key	0000072903
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$8,648,495,720
Entity Common Stock, Shares Outstanding		455,725,244