Xcel Energy (XEL) 10-Q 30 Apr 10 2010 Q1 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating revenues
Electric	$1,995,592	$1,886,557
Natural gas	790,150	788,676
Other	21,720	20,309
Total operating revenues	2,807,462	2,695,542
Operating expenses
Electric fuel and purchased power	988,478	924,748
Cost of natural gas sold and transported	581,113	591,765
Cost of sales - other	7,692	5,366
Other operating and maintenance expenses	480,973	471,894
Conservation and demand side management program expenses	58,039	45,219
Depreciation and amortization	206,126	208,715
Taxes (other than income taxes)	81,376	77,038
Total operating expenses	2,403,797	2,324,745
Operating income	403,665	370,797
Other income, net	975	2,352
Equity earnings of unconsolidated subsidiaries	7,401	3,142
Allowance for funds used during construction - equity	13,290	18,227
Interest charges and financing costs
Interest charges - includes other financing costs of $5,011 and $5,038, respectively	143,830	141,803
Allowance for funds used during construction - debt	(7,737)	(10,228)
Total interest charges and financing costs	136,093	131,575
Income from continuing operations before income taxes	289,238	262,943
Income taxes	121,898	87,125
Income from continuing operations	167,340	175,818
Loss from discontinued operations, net of tax	(222)	(1,751)
Net income	167,118	174,067
Dividend requirements on preferred stock	1,060	1,060
Earnings available to common shareholders	$166,058	$173,007
Weighted average common shares outstanding:
Basic (in shares)	458,918	455,192
Diluted (in shares)	459,697	455,952
Earnings per average common share:
Basic (in dollars per share)	0.36	0.38
Diluted (in dollars per share)	0.36	0.38
Cash dividends declared per common share	0.25	0.24

1_CONSOLIDATED STATEMENTS OF IN

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF INCOME
Financing costs	$5,011	$5,038

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating activities
Net income	$167,118	$174,067
Remove loss from discontinued operations	222	1,751
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	210,481	213,102
Conservation and demand side management program expenses	7,757	6,826
Nuclear fuel amortization	25,980	19,290
Deferred income taxes	77,163	44,638
Amortization of investment tax credits	(1,594)	(1,738)
Allowance for equity funds used during construction	(13,290)	(18,227)
Equity earnings of unconsolidated subsidiaries	(7,401)	(3,142)
Dividends from equity method investees	7,855	6,015
Share-based compensation expense	7,129	9,337
Net realized and unrealized hedging and derivative transactions	(14,875)	37,097
Changes in operating assets and liabilities:
Accounts receivable	(7,222)	114,182
Accrued unbilled revenues	172,732	223,906
Inventories	113,784	215,901
Recoverable purchased natural gas and electric energy costs	(8,109)	7,988
Other current assets	26,368	(5,207)
Accounts payable	(199,311)	(239,175)
Net regulatory assets and liabilities	34,138	28,376
Other current liabilities	283	28,107
Change in other noncurrent assets	(3,038)	192
Change in other noncurrent liabilities	(10,730)	(19,609)
Operating cash flows used in discontinued operations	(29,901)	(31,129)
Net cash provided by operating activities	555,539	812,548
Investing activities
Utility capital/construction expenditures	(481,242)	(477,838)
Allowance for equity funds used during construction	13,290	18,227
Purchase of investments in external decommissioning fund	(910,889)	(396,527)
Proceeds from the sale of investments in external decommissioning fund	916,541	395,815
Investment in WYCO Development LLC	(1,237)	(14,170)
Change in restricted cash	(168)
Other investments	3,593	1,249
Net cash used in investing activities	(460,112)	(473,244)
Financing activities
Proceeds (repayment) of short-term borrowings, net	7,000	(17,235)
Repayment of long-term debt, including reacquisition premiums	(25,355)	(167,905)
Proceeds from issuance of common stock	2,589	1,270
Dividends paid	(105,965)	(101,744)
Net cash used in financing activities	(121,731)	(285,614)
Net increase (decrease) in cash and cash equivalents	(26,304)	53,690
Net decrease in cash and cash equivalents - discontinued operations	(1,981)	(1,573)
Cash and cash equivalents at beginning of period	107,789	249,198
Cash and cash equivalents at end of period	79,504	301,315
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	(132,578)	(152,517)
Cash paid for income taxes, net	(393)	(2,761)
Supplemental disclosure of non-cash investing transactions:
Property, plant and equipment additions in accounts payable	27,396	30,008
Supplemental disclosure of non-cash financing transactions:
Issuance of common stock for reinvested dividends and 401(k) plans	$17,010	$26,973

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current assets
Cash and cash equivalents	$79,504	$107,789
Accounts receivable, net	748,058	729,409
Accrued unbilled revenues	521,317	694,049
Inventories	452,421	566,205
Recoverable purchased natural gas and electric energy costs	64,853	56,744
Derivative instruments valuation	56,984	97,700
Prepayments and other	289,276	359,560
Current assets related to discontinued operations	131,881	151,955
Total current assets	2,344,294	2,763,411
Property, plant and equipment, net	18,744,541	18,508,296
Other assets
Nuclear decommissioning fund and other investments	1,418,665	1,381,791
Regulatory assets	2,259,844	2,287,636
Derivative instruments valuation	275,124	289,530
Other	147,531	140,367
Noncurrent assets related to discontinued operations	144,502	117,397
Total other assets	4,245,666	4,216,721
Total assets	25,334,501	25,488,428
Current liabilities
Current portion of long-term debt	544,356	543,814
Short-term debt	466,000	459,000
Accounts payable	842,794	1,083,127
Taxes accrued	302,256	232,964
Accrued interest	153,069	157,253
Dividends payable	113,566	113,147
Derivative instruments valuation	46,972	46,554
Other	286,621	350,318
Current liabilities related to discontinued operations	4,204	29,080
Total current liabilities	2,759,838	3,015,257
Deferred credits and other liabilities
Deferred income taxes	3,386,149	3,336,354
Deferred investment tax credits	97,696	99,290
Regulatory liabilities	1,192,487	1,222,833
Asset retirement obligations	895,718	881,479
Derivative instruments valuation	306,028	307,770
Customer advances	286,733	295,470
Pension and employee benefit obligations	832,779	838,067
Other	249,698	211,666
Noncurrent liabilities related to discontinued operations	3,636	3,389
Total deferred credits and other liabilities	7,250,924	7,196,318
Commitments and contingent liabilities
Capitalization
Long-term debt	7,862,888	7,888,628
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: March 31, 2010 - 459,215,241; Dec. 31, 2009 - 457,509,263	7,355,871	7,283,245
Total liabilities and equity	$25,334,501	$25,488,428

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
	Mar. 31, 2010	Dec. 31, 2009
CONSOLIDATED BALANCE SHEETS
Preferred Stock, shares authorized	7,000,000	7,000,000
Preferred Stock, par value (in dollars per share)	$100	$100
Preferred Stock, shares outstanding	1,049,800	1,049,800
Common Stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, par value (in dollars per share)	2.5	2.5
Common Stock issued	459,215,241	457,509,263

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
Balance at Dec. 31, 2008	$1,134,480	$4,695,019	$1,187,911	($53,669)	$6,963,741
Shares, balance at Dec. 31, 2008	453,792
Increase (Decrease) in Common Stockholders' Equity
Net income			174,067		174,067
Changes in unrecognized amounts of pension and retiree medical benefits, net of tax of $254 for the three months ended March 31, 2009; and $295 for the three months ended March 31, 2010				369	369
Net derivative instrument fair value changes during the period, net of tax of $801 for the three months ended March 31, 2009; and $460 for the three months ended March 31, 2010				1,200	1,200
Unrealized gain (loss) - marketable securities, net of tax of $(64) for the three months ended March 31, 2009; and $8 for the three months ended March 31, 2010				(96)	(96)
Comprehensive income for the period					175,540
Dividends declared:
Cumulative preferred stock			(1,060)		(1,060)
Common stock			(108,447)		(108,447)
Issuances of common stock	3,661	8,718			12,379
Issuances of common stock - shares	1,464
Share-based compensation		6,929			6,929
Balance at Mar. 31, 2009	1,138,141	4,710,666	1,252,471	(52,196)	7,049,082
Shares, balance at Mar. 31, 2009	455,256
Balance at Dec. 31, 2009	1,143,773	4,769,980	1,419,201	(49,709)	7,283,245
Shares, balance at Dec. 31, 2009	457,509				457,509
Increase (Decrease) in Common Stockholders' Equity
Net income			167,118		167,118
Changes in unrecognized amounts of pension and retiree medical benefits, net of tax of $254 for the three months ended March 31, 2009; and $295 for the three months ended March 31, 2010				419	419
Net derivative instrument fair value changes during the period, net of tax of $801 for the three months ended March 31, 2009; and $460 for the three months ended March 31, 2010				652	652
Unrealized gain (loss) - marketable securities, net of tax of $(64) for the three months ended March 31, 2009; and $8 for the three months ended March 31, 2010				11	11
Comprehensive income for the period					168,200
Dividends declared:
Cumulative preferred stock			(1,060)		(1,060)
Common stock			(112,951)		(112,951)
Issuances of common stock	4,265	8,379			12,644
Issuances of common stock - shares	1,706
Share-based compensation		5,793			5,793
Balance at Mar. 31, 2010	$1,148,038	$4,784,152	$1,472,308	($48,627)	$7,355,871
Shares, balance at Mar. 31, 2010	459,215				459,215

2_CONSOLIDATED STATEMENTS OF CO

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (Parenthetical) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME
Changes in unrecognized amounts of pension and retiree medical benefits, tax	$295	$254
Net derivative instrument fair value changes during the period, tax	460	801
Unrealized gain (loss) - marketable securities, tax	$8	($64)

Managements' Opinion

Managements' Opinion
	3 Months Ended Mar. 31, 2010
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 March31, 2010 and Dec.31, 2009; the results of its operations and changes in stockholders equity for the three months ended March31, 2010 and 2009; and its cash flows for the three months ended March31, 2010 and 2009. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March31, 2010 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec.31, 2009 balance sheet information has been derived from the audited 2009 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, 2009, filed with the SEC on Feb.26, 2010. 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
	3 Months Ended Mar. 31, 2010
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, 2009, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. Reclassifications Conservation and demand side management program expenses for the three months ended March31, 2009 were reclassified as a separate item from depreciation and amortization expenses within the consolidated statements of cash flows. The reclassification did not have an impact on net cash provided by operating activities.

Accounting Pronouncements

Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Accounting Pronouncements	2. Accounting Pronouncements Recently Adopted Consolidation of Variable Interest Entities In June2009, the Financial Accounting Standards Board (FASB) issued new guidance on consolidation of variable interest entities. The guidance affects various elements of consolidation, including the determination of whether an entity is a variable interest entity and whether an enterprise is a variable interest entitys primary beneficiary. These updates to the FASB Accounting Standards Codification (ASC or Codification) are effective for interim and annual periods beginning after Nov.15, 2009. Xcel Energy implemented the guidance on Jan.1, 2010, and the implementation did not have a material impact on its consolidated financial statements. For further information and required disclosures regarding variable interest entities, see Note 7 to the consolidated financial statements. Fair Value Measurement Disclosures In January2010, the FASB issued Fair Value Measurements and Disclosures (Topic820) Improving Disclosures about Fair Value Measurements (Accounting Standards Update (ASU) No.2010-06), which updates the Codification to require new disclosures for assets and liabilities measured at fair value. The requirements include expanded disclosure of valuation methodologies for fair value measurements, transfers between levels of the fair value hierarchy, and gross rather than net presentation of certain changes in Level3 fair value measurements. The updates to the Codification contained in ASU No.2010-06 were effective for interim and annual periods beginning after Dec.15, 2009, except for requirements related to gross presentation of certain changes in Level3 fair value measurements, which are effective for interim and annual periods beginning after Dec.15, 2010. Xcel Energy implemented the portions of the guidance required on Jan.1, 2010, and the implementation did not have a material impact on its consolidated financial statements. For further information and required disclosures, see Note 10 to the consolidated financial statements.

Selected Balance Sheet Data

Selected Balance Sheet Data
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Selected Balance Sheet Data	3. Selected Balance Sheet Data (ThousandsofDollars) March31,2010 Dec.31,2009 Accounts receivable, net Accounts receivable $ 801,490 $ 785,512 Less allowance for bad debts (53,432 ) (56,103 ) $ 748,058 $ 729,409 Inventories Materials and supplies $ 180,771 $ 172,993 Fuel 188,926 221,457 Natural gas 82,724 171,755 $ 452,421 $ 566,205 Property, plant and equipment, net Electric plant $ 22,724,754 $ 22,589,071 Natural gas plant 3,305,785 3,269,934 Common and other property 1,507,366 1,492,463 Construction work in progress 1,971,997 1,769,545 Total property, plant and equipment 29,509,902 29,121,013 Less accumulated depreciation (11,057,241 ) (10,914,509 ) Nuclear fuel 1,753,537 1,737,469 Less accumulated amortization (1,461,657 ) (1,435,677 ) $ 18,744,541 $ 18,508,296

Discontinued Operations

Discontinued Operations
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Discontinued Operations	4. Discontinued Operations Results of operations for divested businesses are reported, for all periods presented, as discontinued operations. 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 related to discontinued operations are as follows: (ThousandsofDollars) March31, 2010 Dec.31,2009 Cash $ 5,878 $ 7,859 Deferred income tax benefits 63,395 106,770 Other current assets 62,608 37,326 Current assets related to discontinued operations $ 131,881 $ 151,955 Deferred income tax benefits $ 121,956 $ 95,424 Other noncurrent assets 22,546 21,973 Noncurrent assets related to discontinued operations $ 144,502 $ 117,397 Accounts payable $ 373 $ 445 Other current liabilities 3,831 28,635 Current liabilities related to discontinued operations $ 4,204 $ 29,080 Noncurrent liabilities related to discontinued operations $ 3,636 $ 3,389

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Income Taxes	5. Income Taxes Corporate Owned Life Insurance (COLI) In 2007, XcelEnergy and the U.S.government settled an ongoing dispute regarding PSCos right to deduct interest expense on policy loans related to its COLI program that insured lives of certain PSCo employees. These COLI policies were owned and managed by P.S.R. Investments,Inc. (PSRI), a wholly owned subsidiary of PSCo. XcelEnergy paid the U. S. government a total of $64.4million in settlement of the U. S. governments claims for tax, penalty, and interest for tax years 1993 through 2007. XcelEnergy surrendered the policies to its insurer on Oct.31, 2007, without recognizing a taxable gain. As a result of the settlement, the lawsuit filed by XcelEnergy in the United States District Court has been dismissed and the Tax Court proceedings are in the process of being dismissed. As part of the Tax Court proceedings, during the first quarter of 2010, Xcel Energy and the IRS (Internal Revenue Service) reached an agreement in principle after a two year financial reconciliation of Xcel Energys statements of account, dating back to tax year 1993. This tax and interest analysis required a comprehensive review of all of Xcel Energys tax filings since 1993. Upon completion of this review, PSRI recorded a net non-recurring adjustment of approximately $10 million (including $7.7 million tax expense and $2.3 million interest expense, net of tax), or $0.02 per share during the current period. XcelEnergy anticipates that the Tax Court proceedings will be dismissed in 2010. Medicare PartD Subsidy Reimbursements In March2010, the Patient Protection and Affordable Care Act was signed into law. The law includes provisions to generate tax revenue to help offset the cost of the new legislation. One of these provisions reduces the deductibility of retiree health care costs to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare PartD coverage, beginning in 2013. Based on this provision, Xcel Energy is subject to additional taxes and is required to reverse previously recorded tax benefits in the period of enactment. Xcel Energy expensed approximately $17 million, or $0.04 per share, of previously recognized tax benefits relating to Medicare PartD subsidies during the first quarter of 2010. Xcel Energy does not expect the $17 million of additional tax expense to recur in future periods. The 2010 effective tax rate will increase due to additional tax expense of approximately $4 million associated with current year retiree health care accruals. Federal Audit XcelEnergy filesa consolidated federal income tax return. In the first quarter of 2010, the IRS completed an examination of XcelEnergys federal income tax returns of tax years 2006 and 2007. The IRS did not propose any material adjustments for those tax years. The statute of limitations applicable to XcelEnergys 2006 federal income tax return expires on Aug.28, 2010. State Audits XcelEnergy files consolidated state tax returns based on income in its major operating jurisdictions of Colorado, Minnesota, Texas, and Wisconsin, and various other state income-based tax re

Rate Matters

Rate Matters
	3 Months Ended Mar. 31, 2010
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, 2009 appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. NSP-Minnesota Pending and Recently Concluded Regulatory Proceedings Minnesota Public Utilities Commission (MPUC) Base Rate NSP-Minnesota Gas Rate Case In November2009, NSP-Minnesota filed a request with the MPUC to increase Minnesota natural gas rates by $16.2million for 2010, which represents a 2.8percent overall increase in customer bills. The overall request seeks an additional $3.45 million, effective Jan.1, 2011, for recovery of pension funding costs necessary to comply with federal law. In December2009, the MPUC voted to approve an interim rate increase of $11.1million, subject to refund. Interim rates went into effect on Jan.11, 2010. (Millions of Dollars) Request Rate increase $ 16.2 Additional recovery of pension funding costs 3.45 Return on equity 11.0 % Equity ratio 52.46 Gas rate base $ 441 The procedural schedule is listed below and a decision is expected in the fall of 2010. Intervenor direct testimony on May3, 2010; NSP-Minnesota rebuttal testimony on June2, 2010; Surrebuttal testimony on June15, 2010; Evidentiary hearings on June21 through 25, 2010; Initial briefs on July27, 2010; Reply briefs and proposed findings on Aug.19, 2010; and Administrative law judge (ALJ) report on Oct.1, 2010. Electric, Purchased Gas and Resource Adjustment Clauses Transmission Cost Recovery (TCR) Rider The MPUC has approved a TCR rider, which allows annual adjustments to retail electric rates to provide recovery of incremental transmission investments between rate cases. On April1, 2010, the MPUC approved the 2010 TCR rider resulting in approximately $10.8 million in revenue, including initial costs associated with three of the four CapX 2020 transmission projects. The MPUC did not allow 2010 recovery of $1.2 million in costs associated with the Brookings, S.D. transmission line because of uncertainty in cost allocation among utilities as the result of Midwest Independent Transmission System Operator,Inc. (MISO) tariff changes currently under development for filing with the Federal Energy Regulatory Commission (FERC) in July2010. The MPUC also expressed a desire to limit recovery based on initial project estimates and make adjustments in a rate case after a project is placed in service. This approach to rider administration will not impact the 2010 TCR request. Renewable Energy Standard (RES) Rider The MPUC has approved a rider to recover the costs for utility-owned projects implemented in compliance with the Minnesota RES. On April1, 2010, the MPUC approved the 2010 RES rider that will result in $45.6 million in revenue. As noted with the TCR rider above, the MPUC also expressed a desire to limit recovery based on initial project estimates and make adjustments in a rate case after a project is placed

Commitments and Contingent Liab

Commitments and Contingent Liabilities
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Commitments and Contingent Liabilities	7. Commitments and Contingent Liabilities Except to the extent noted below and in Note 6 to the consolidated financial statements in this Quarterly Report on Form10-Q, 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, 2009, 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. Commitments Variable Interest Entities Effective Jan.1, 2010, Xcel Energy adopted new guidance on consolidation of variable interest entities contained in ASC 810 Consolidation. The guidance requires enterprises to consider the activities that most significantly impact an entitys financial performance, and power to direct those activities, when determining whether an entity is a variable interest entity and whether an enterprise is a variable interest entitys primary beneficiary. Purchased Power Agreements The utility subsidiaries of Xcel Energy have entered into agreements with other utilities and energy suppliers for purchased power to meet system load and energy requirements, replace generation from company-owned units under maintenance or during outages, and meet operating reserve obligations. NSP-Minnesota, PSCo and SPS have various pay-for-performance contracts with expiration dates through the year 2034. In general, these contracts provide for energy payments based on actual power taken under the contracts as well as capacity payments. Capacity payments are typically contingent on the independent power producing entity meeting certain contract obligations, including plant availability requirements. Certain contractual payments are adjusted based on market indices; however, the effects of price adjustments are mitigated through purchased energy cost recovery mechanisms. Xcel Energy is not subject to risk of loss from the operations of these entities, and no significant financial support has been, or is in the future required to be provided other than contractual payments for energy and capacity set forth in purchased power agreements. Certain natural gas and biomass fueled purchased power agreements that either reimburse the independent power producing entities for fuel costs, or contain tolling arrangements under which Xcel Energy procures the fuel required to produce the energy it purchases, have been determined to be variable interest entities. Xcel Energy has evaluated each of these variable interest entities for possible consolidation, including review of qualitative factors such as the length and terms of the contract, control over operations and maintenance, historical and estimated future fuel and electricity prices, and financing activities; including the maintenance of debt to equity financing ratios. Xcel Energy has concluded that these entities are not required to be consolidated in its consolidated

Short-Term Borrowings and Other

Short-Term Borrowings and Other Financing Instruments
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Short-Term Borrowings and Other Financing Instruments	8. Short-Term Borrowings and Other Financing Instruments Commercial Paper The following table presents commercial paper outstanding for Xcel Energy: (Millions ofDollars) March31, 2010 Dec.31, 2009 Commercial paper outstanding $ 466 $ 459 Weighted average interest rate 0.34 % 0.36 % Commercial paper available for issuance $ 2,250 $ 2,250 Credit Facility Bank Borrowings Xcel Energy and its subsidiaries had no credit facility bank borrowings at March31, 2010 and Dec.31, 2009. Money Pool Xcel Energy and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings from the utilities between each other. The holding company may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in the holding company. The money pool investments and borrowings are eliminated upon consolidation. The following table presents the money pool investments and borrowings outstanding: (Millions ofDollars) March31, 2010 Dec.31, 2009 Money pool outstanding $ 7 $ 84 Weighted average interest rate 0.30 % 0.36 %

Long-Term Borrowings and Other

Long-Term Borrowings and Other Financing Instruments
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Long-Term Borrowings and Other Financing Instruments	9. Long-Term Borrowings and Other Financing Instruments In February2010, SPS redeemed its $25.0million pollution control obligations, securing pollution control revenue bonds, due July1, 2016.

Derivative Instruments and Fair

Derivative Instruments and Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Derivative Instruments and Fair Value Measurements	10. Derivative Instruments and Fair Value Measurements 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, as well as variances in forecasted weather. Short-Term Wholesale and Commodity Trading Risk Xcel Energys utility subsidiaries conduct various short-term wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy and energy-related instruments. Xcel Energys risk management policy allows management to conduct these activities within guidelines and limitations as approved by its risk management committee, which is made up of management personnel not directly involved in the activities governed by this policy. 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 generally designated as cash flow hedges for accounting purposes. At March31, 2010, accumulated other comprehensive income related to interest rate derivatives included $1.6 million of net gains expected to be reclassified into earnings during the next 12months as the related hedged interest rate transactions impact 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 March31, 2010, Xcel Energy had various 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 non-trading commodity derivative instruments are recorded in other comprehensive income (OCI) or deferred as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Xcel Energy recorded immaterial amounts to income related to the ineffectiveness of cash flow hedges for the three months ended March31, 2010. At March31, 2010, accumulated OCI related to commodity derivative cash flow hedges included $2.1 of net losses expected to be reclassified into earnings during the next 12months as the hedged transactions occur. Additionally, Xcel Energys utility subsidiaries enter into commodity derivative instruments for trading purposes not directly related to commodity price risks associated with serving their electric and natural gas customers. Changes in the fair value

Financial Instruments

Financial Instruments
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Financial Instruments	11. Financial Instruments The estimated fair values of Xcel Energys recorded financial instruments are as follows: March31, 2010 Dec.31, 2009 Carrying Carrying (ThousandsofDollars) Amount Fair Value Amount Fair Value Nuclear decommissioning fund $ 1,287,148 $ 1,287,148 $ 1,248,739 $ 1,248,739 Other investments 9,201 9,201 9,649 9,649 Long-term debt, including current portion 8,407,244 9,033,190 8,432,442 9,026,257 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 March31, 2010 and Dec.31, 2009. 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. In addition, Xcel Energy provides indemnity protection for bonds issued for itself and its subsidiaries. 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. The following table presents guarantees issued and outstanding for Xcel Energy: (Millions ofDollars) March31, 2010 Dec.31, 2009 Guarantees issued and outstanding $ 72.7 $ 76.4 Known exposure under these guarantees 18.0 18.0 Bonds with indemnity protection 30.0 29.9 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 March31, 2010 and Dec.31, 2009, there were $21.7 million and $22.2 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.

Other Income, Net

Other Income, Net
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Other Income, Net	12. Other Income, Net Other income (expense), net, consisted of the following: Three Months Ended March31, (ThousandsofDollars) 2010 2009 Interest income $ 2,051 $ 2,926 Other nonoperating income 584 499 Insurance policy expenses (1,660 ) (972 ) Other nonoperating expenses (101 ) Other income, net $ 975 $ 2,352

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Segment Information	13. Segment Information Xcel Energy has the following reportable segments: regulated electric utility, regulated natural gas utility and all other. Commodity trading operations performed by regulated operating companies are not a reportable segment and are included in the regulated electric segment. Regulated Regulated All Reconciling Consolidated (ThousandsofDollars) Electric NaturalGas Other Eliminations Total Three Months Ended March31, 2010 Operating revenues from external customers $ 1,995,592 $ 790,150 $ 21,720 $ $ 2,807,462 Intersegment revenues 1,138 1,703 (2,841 ) Total revenues $ 1,996,730 $ 791,853 $ 21,720 $ (2,841 ) $ 2,807,462 Income (loss) from continuing operations $ 115,182 $ 63,026 $ 1,268 $ (12,136 ) $ 167,340 Three Months Ended March31, 2009 Operating revenues from external customers $ 1,886,557 $ 788,676 $ 20,309 $ $ 2,695,542 Intersegment revenues 257 1,294 (1,551 ) Total revenues $ 1,886,814 $ 789,970 $ 20,309 $ (1,551 ) $ 2,695,542 Income (loss) from continuing operations $ 121,442 $ 60,274 $ 8,196 $ (14,094 ) $ 175,818

Common Stock and Equivalents

Common Stock and Equivalents
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Common Stock and Equivalents	14. 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 March31, 2010 and 2009, Xcel Energy had approximately 6.6 million and 7.7 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 months ended March31, 2010 and 2009: Three Months Ended March31, 2010 Three Months Ended March31, 2009 (Amountsinthousands,exceptpersharedata) Income Shares Per Share Amount Income Shares Per Share Amount Net income $ 167,118 $ 174,067 Less: Dividend requirements on preferred stock (1,060 ) (1,060 ) Basic earnings per share: Earnings available to common shareholders 166,058 458,918 $ 0.36 173,007 455,192 $ 0.38 Effect of dilutive securities: 401(k)equity awards 779 760 Diluted earnings per share: Earnings available to common shareholders $ 166,058 459,697 $ 0.36 $ 173,007 455,952 $ 0.38

Benefit Plans and Other Postret

Benefit Plans and Other Postretirement Benefits
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Benefit Plans and Other Postretirement Benefits	15. Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost Three Months Ended March31, 2010 2009 2010 2009 Postretirement Health (ThousandsofDollars) Pension Benefits Care Benefits Service cost $ 17,618 $ 15,986 $ 1,038 $ 1,276 Interest cost 40,652 41,849 10,529 12,156 Expected return on plan assets (58,124 ) (63,360 ) (7,134 ) (5,394 ) Amortization of transition obligation 3,611 3,496 Amortization of prior service cost (credit) 5,164 6,155 (1,233 ) (652 ) Amortization of net loss 11,024 2,929 2,709 4,885 Net periodic pension cost 16,334 3,559 9,520 15,767 Costs not recognized and additional cost recognized due to theeffects of regulation (7,326 ) (487 ) 973 973 Net benefit cost recognized for financial reporting $ 9,008 $ 3,072 $ 10,493 $ 16,740

Subsequent Event

Subsequent Event
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Subsequent Event	16. Subsequent Event In April2010, PSCo reached an agreement with Riverside Energy Center LLC and Calpine Development Holdings,Inc. to purchase the Rocky Mountain Energy Center and Blue Spruce Energy Center natural gas generation assets for $739 million. The acquisition is expected to close in December2010. The acquisition is subject to state and federal regulatory approvals including cost recovery. The acquisition developed out of the 2007 resource plan in which the assets were offered as part of the CPUC competitive bidding process. The offer was the least cost option for thermal resources to be acquired under the plan. The Rocky Mountain Energy Center is a 621 MW combined cycle natural gas-fired power plant that began commercial operations in 2004. The Blue Spruce Energy Center is a 310 MW simple cycle natural gas-fired power plant that began commercial operations in 2003. Both power plants currently provide energy and capacity to PSCo under power purchase agreements, which were set to expire in 2013 and 2014.

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 26, 2010
Document and Entity Information
Entity Registrant Name	XCEL ENERGY INC
Entity Central Index Key	0000072903
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		459,565,063
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1