UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
BEGINNING JANUARY 1, 2001 AND ENDING DECEMBER 31, 2001
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
XCEL ENERGY SERVICES INC.
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
----------
("Mutual" or "Subsidiary")
Date of Incorporation April 2, 1997
-------------
State or Sovereign Power under which Incorporated or Organized: Delaware
Location of Principal Executive Offices of Reporting Company: Minneapolis, MN
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
David E. Ripka Vice President and Controller 800 Nicollet Mall
Minneapolis, MN 55402
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
XCEL ENERGY INC.
Page 1
INSTRUCTIONS FOR USE OF FORM U-13-60
1. TIME OF FILING. --Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding pursuant
to Rule 88, and every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instructions for that
form.
2. NUMBER OF COPIES. --Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. PERIOD COVERED BY REPORT. --The first report filed by any company shall cover
the period from the date the Uniform System of Accounts was required to be made
effective as to that company under Rules 82 and 93 to the end of that calendar
year. Subsequent reports should cover a calendar year.
4. REPORT FORMAT. --Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form or
folded to each size.
5. MONEY AMOUNTS DISPLAYED. --All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of dollars
or in hundred thousands of dollars, as appropriate and subject to provisions of
Regulation S-X (210.3-01(b)).
6. DEFICITS DISPLAYED. --Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X,210.3-01(c))
7. MAJOR AMENDMENTS OR CORRECTIONS. --Any company desiring to amend or correct a
major omission or error in a report after it has been filed with the Commission
shall submit an amended report including only those pages, schedules, and
entries that are to be amended or corrected. A cover letter shall be submitted
requesting the Commission to incorporate the amended report changes and shall be
signed by a duly authorized officer of the company.
8. DEFINITIONS. --Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. ORGANIZATION CHART. --The service company shall submit with each annual
report a copy of its current organization chart.
10. METHODS OF ALLOCATION. --The service company shall submit with each annual
report a listing of the currently effective methods of allocation being used by
the service company and on file with the Securities and Exchange Commission
pursuant to the Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED. --The service
company shall submit with each annual report a copy of the annual statement
supplied to each associate company in support of the amount of compensation for
use of capital billed during the calendar year.
Page 2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
------------------------------------- -------------- ------
Comparative Balance Sheets Schedule I 3-4
Service Company Property Schedule II 5
Accumulated Provision for Depreciation and Amortization
of Service Company Property Schedule III 6
Investments Schedule IV 7
Accounts Receivable from Associate Companies Schedule V 8-8a
Fuel Stock Expenses Undistributed Schedule VI 9
Stores Expense Undistributed Schedule VII 9
Miscellaneous Current and Accrued Assets Schedule VIII 10
Miscellaneous Deferred Debits Schedule IX 10
Research, Development, or Demonstration Expenditures Schedule X 10
Proprietary Capital Schedule XI 11
Long-Term Debt Schedule XII 12
Current and Accrued Liabilities Schedule XIII 13
Notes to Financial Statements Schedule XIV 14-14d
Comparative Income Statement Schedule XV 15-15c
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Nonassociate Companies Account 458 17
Analysis of Charges for Service - Associate and
Nonassociate Companies Schedule XVI 18
Schedule of Expense by Department or Service Function Schedule XVII 19-19f
Departmental Analysis of Salaries Account 920 20
Outside Services Employed Account 923 21-21g
Employee Pensions and Benefits Account 926 22
General Advertising Expenses Account 930.1 23
Page 2a
Schedule or Page
Description of Schedules and Accounts Account Number Number
------------------------------------- -------------- ------
Miscellaneous General Expenses Account 930.2 23a
Rents Account 931 23a
Taxes Other Than Income Taxes Account 408 24
Donations Account 426.1 25-25a
Other Deductions Account 426.5 26
Notes to Statements of Income Schedule XVIII 27
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Organization Chart 28
Methods of Allocation 29-29a
Annual Statement of Compensation for Use of Capital Billed 30
Signature Clause 31
Page 3
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
SCHEDULE I--COMPARATIVE BALANCE SHEET
(thousands of dollars)
Give balance sheet of the Company as of December 31 of the current and prior
year.
AS OF DECEMBER 31,
ACCOUNT ASSETS AND OTHER DEBITS 2001 2000
------- ----------------------- ----- ----
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $ - $ -
107 Construction work in progress (Schedule II) 13 8,249
------------------ ------------------
Total Property 13 8,249
------------------ ------------------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) - -
------------------ ------------------
Net Service Company Property 13 8,249
------------------ ------------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 3,860 -
------------------ ------------------
Total Investments 3,860 -
------------------ ------------------
CURRENT AND ACCRUED ASSETS
131 Cash 1,880 2,918
134 Special deposits - -
135 Working funds 15 10
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 455 281
144 Accumulated provision for uncollectable accounts - -
146 Accounts receivable from associate companies (Schedule V) 120,536 86,284
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 53,618 58,054
174 Miscellaneous current and accrued assets (Schedule VIII) - -
------------------ ------------------
Total Current and Accrued Assets 176,504 147,547
------------------ ------------------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts 1,007 633
186 Miscellaneous deferred debits (Schedule IX) 22,520 6,520
188 Research, development, or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes - -
------------------ ------------------
Total Deferred Debits 23,527 7,153
------------------ ------------------
TOTAL ASSETS AND OTHER DEBITS $ 203,904 $ 162,949
================== ==================
Page 4
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
SCHEDULE I--COMPARATIVE BALANCE SHEET
(thousands of dollars)
AS OF DECEMBER 31,
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL 2001 2000
------- ----------------------------------- ----- ----
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ - $ -
211 Miscellaneous paid-in-capital (Schedule XI) 13 1
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
------------------ -----------------
Total Proprietary Capital 13 1
------------------ -----------------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
------------------ -----------------
Total Long-Term Debt - -
------------------ -----------------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 47 -
232 Accounts payable 143,859 66,547
233 Notes payable to associate companies (Schedule XIII) 10,265 35,125
234 Accounts payable to associate companies (Schedule XIII) - -
236 Taxes accrued 2,473 1,246
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 3,840 1,813
242 Miscellaneous current and accrued liabilities (Schedule XIII) (69) 30,420
------------------ -----------------
Total Current and Accrued Liabilities 160,415 135,151
------------------ -----------------
DEFERRED CREDITS AND OTHER NON-CURRENT LIABILITIES
228 Accumulated provision for pension and benefits 3,019 8,473
253 Other deferred credits 30,704 13,793
255 Accumulated deferred investment tax credits - -
------------------ -----------------
Total Deferred Credits and Other Non-Current Liabilities 33,723 22,266
------------------ -----------------
283 ACCUMULATED DEFERRED INCOME TAXES 9,753 5,531
------------------ -----------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 203,904 $ 162,949
================== =================
Page 5
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE II--SERVICE COMPANY PROPERTY
(thousands of dollars)
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING OR CHANGES AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES (1), (4) OF YEAR
----------- ------------- ----------- ------------- ----------- ----------
SERVICE COMPANY PROPERTY
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous intangible plant - - - - -
304 Land and land rights - - - - -
305 Structures and improvements - - - - -
306 Leasehold improvements - - - - -
307 Equipment (2) - - - - -
308 Office furniture and equipment - - - - -
309 Automobiles, other vehicles and - - - - -
related garage equipment - - - - -
310 Aircraft and airport equipment - - - - -
311 Other service company property (3) - - - - -
------- ------- -------- ------- -------
SUB-TOTAL - - - - -
107 Construction work in progress (4) 8,249 (8,236) - 13
------- ------- -------- ------- -------
TOTAL $ 8,249 $ - $ (8,236) $ - $ 13
======= ======= ======== ======= =======
(1) Provide an explanation of those changes considered material: Learjet 45 was
sold and leased-back.
(2) Subaccounts are required for each class of equipment owned. The service
company shall provide a listing by subaccount of equipment additions during
the year and the balance at the close of the year: None
(3) Describe other service company property: None
(4) Describe construction work in progress: The balance at 12-31-01 represents
the purchase of a hydraulic power unit for aircraft maintenance.
Page 6
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE III--ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY PROPERTY
(thousands of dollars)
BALANCE AT ADDITIONS RETIREMENTS OTHER BALANCE
BEGINNING TO ACCOUNT OR CHANGES AT CLOSE
DESCRIPTION OF YEAR 403 SALES (1) OF YEAR
----------- ------------ ------------- -------------- --------- ----------
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous intangible plant - - - - -
304 Land and land rights - - - - -
305 Structures and improvements - - - - -
306 Leasehold improvements - - - - -
307 Equipment - - - - -
308 Office furniture and fixtures - - - - -
309 Automobiles, other vehicles and
related garage equipment - - - - -
310 Aircraft and airport equipment - - - - -
311 Other service company property - - - - -
--------- --------- --------- ---------- ---------
TOTAL $ - $ - $ - $ - $ -
========= ========= ========= ========== =========
(1) Provide an explanation of those changes considered material: None
Page 7
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE IV--INVESTMENTS
(thousands of dollars)
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment separately, with
description, including the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment
separately.
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT ASSETS AND OTHER DEBITS OF YEAR OF YEAR
------- ----------------------- ---------------- ----------------
123 Investment in associate companies $ - $ -
124 Other investments:
Pacific Life Insurance Co.; Key Man Life Insurance - 3,402
US Bancorp; Rabbi Trust - 458
136 Temporary cash investments - -
---------------- ----------------
TOTAL $ - $ 3,860
================ ================
Page 8
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE V--ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
(thousands of dollars)
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------- ----------------- -----------------
Account 146 -- Accounts Receivable from Associate Companies
Xcel Energy Inc. $ 17,970 $ 6,953
Xcel Energy-Cadence, Inc. - 2
Cheyenne Light, Fuel and Power Company 319 370
1480 Welton, Inc. 41 42
Public Service Company of Colorado 17,480 53,362
P.S.R. Investments, Inc. 30 18
e prime, inc. 270 119
Xcel Energy International Inc. 1,507 71
Natural Station Equipment LLC 482 -
Fuel Resources Development Co., a dissolved corporation 1 -
PS Colorado Credit Corporation 50 56
WestGas InterState, Inc. 11 1
Utility Engineering Corporation 6,733 2,210
Quixx Corporation 531 533
Quixx Power Services, Inc. 124 -
Southwestern Public Service Company 9,703 14,929
The Planergy Group, Inc. 1,293 60
Xcel Energy Communications Group Inc. 8 -
Xcel Energy Retail Holdings Inc. - 82
Xcel Energy Wyco Inc. 61 3
Wyco Development LLC (36) 5
NRG Energy, Inc. (547) 816
Viking Gas Transmission Company 92 74
Eloigne Company 99 7
First Midwest Auto Park, Inc. (21) (10)
United Power & Land Company 1 29
Seren Innovations, Inc. 311 160
Ultra Power Technologies, Inc. 1 (3)
Energy Masters International, Inc. 165 -
Black Mountain Gas Company 96 51
Natrogas, Incorporated 88 120
Northern States Power Company (Minnesota) 23,092 35,829
Northern States Power Company (Wisconsin) 5,575 3,907
Xcel Energy-Centrus, Inc. 754 9
Reddy Killowatt Corp. - 1
XERS Inc. - 728
NCE Communications, Inc. - 2
---------------------------------------
TOTAL $ 86,284 $ 120,536
================= =================
Page 8a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE V--ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
(thousands of dollars)
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
TOTAL
PAYMENTS
-------------------
Analysis of Convenience or Accommodation Payments:
Public Service Company of Colorado $ 80,454
Southwestern Public Service Company 17,369
Xcel Energy Inc. 9,806
Cheyenne Light, Fuel and Power Company 8,701
Xcel Energy-Centrus, Inc. 235
XERS Inc. 23
NCE Communications, Inc. 33
Xcel Energy International Inc. 35
-------------------
TOTAL PAYMENTS $ 116,656
===================
The majority of convenience payments relate to insurance, employee
benefits, computer and facility services.
Page 9
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE VI--FUEL STOCK EXPENSES UNDISTRIBUTED
(thousands of dollars)
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" list below give an overall
report of the fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSE TOTAL
----------- ------------------ ------------------- ------------------
Account 152 -- Fuel Stock Expenses Undistributed $ - $ - $ -
------------------ ------------------- ------------------
TOTAL $ - $ - $ -
================== =================== ==================
Summary: None
SCHEDULE VII--STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expenses during the year and indicate amount attributable to each
associate company.
DESCRIPTION LABOR EXPENSE TOTAL
----------- ------------------ ------------------- ------------------
Account 163 -- Stores Expenses Undistributed $ - $ - $ -
------------------ ------------------- ------------------
TOTAL $ - $ - $ -
================== =================== ==================
Page 10
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE VIII--MISCELLANEOUS CURRENT AND ACCRUED ASSETS
(thousands of dollars)
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------- ----------------------- -----------------------
Account 174 -- Miscellaneous Current and Accrued Assets $ - $ -
----------------------- -----------------------
TOTAL $ - $ -
======================= =======================
SCHEDULE IX--MISCELLANEOUS DEFERRED DEBITS
(thousands of dollars)
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------- ----------------------- -----------------------
Account 186 -- Miscellaneous Deferred Debits
Prepaid pension 6,520 22,520
----------------------- -----------------------
TOTAL $ 6,520 $ 22,520
======================= =======================
SCHEDULE X--RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
(thousands of dollars)
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service corporation during the
year.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------- ----------------------- -----------------------
Account 188 -- Research, Development, or Demonstration
Expenditures $ - $ -
----------------------- -----------------------
TOTAL $ - $ -
======================= =======================
Page 11
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XI--PROPRIETARY CAPITAL
(thousands of dollars, except per share data)
OUTSTANDING AT
PAR OR CLOSE OF PERIOD
NUMBER OF STATED ---------------
ACCOUNT SHARES VALUE NUMBER TOTAL
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE OF SHARES AMOUNT
------ -------------- ---------- --------- --------- ------
201 Common Stock Issued 1,000 $0.01 1,000 $ -
INSTRUCTIONS: Classify amounts in each account with a brief explanation,
disclosing the general nature of transactions which give rise to the amounts.
DESCRIPTION AMOUNT
----------- -------------
Account 211 -- Miscellaneous Paid-In Capital $ 1
--Accumulated Other Comprehensive Income:
unrealized investments gains $ 12
Account 215 -- Appropriated Retained Earnings -
-------------
TOTAL $ 13
=============
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owned or net loss
remaining from servicing nonassociates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
BALANCE AT BALANCE
BEGINNING NET INCOME DIVIDENDS AT CLOSE
DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
----------- ------- --------- ---- -------
Account 216 -- Unappropriated
Retained Earnings $ - $ - $ - $ -
------------ ------------ ------------- --------------
TOTAL $ - $ - $ - $ -
============ ============ ============= ==============
Page 12
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XII--LONG-TERM DEBT
(thousands of dollars)
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes and advances on open accounts. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 - Other long-term debt provide the
name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
TERM OF OBLIGATION BALANCE AT BALANCE
CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING DEDUCTIONS AT CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS (1) OF YEAR
----------------------- ------------------ --------- -------- ------------ ---------- ----------- ----------- -----------
Account 223 -
Advances From
Associate Companies: $ - $ - $ - $ - $ -
Account 224 -
Other Long-Term Debt: - - - - -
------------ ---------- ----------- ----------- -----------
TOTAL $ - $ - $ - $ - $ -
============ ========== =========== =========== ===========
(1) Give an explanation of deductions: None
Page 13
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XIII--CURRENT AND ACCRUED LIABILITIES
(thousands of dollars)
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of items
in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
----------- -------------------- --------------------
Account 233 -- Notes Payable to Associate Companies
Notes Payable - Xcel Energy Inc. $ 35,125 $ 10,265
-------------------- --------------------
TOTAL $ 35,125 $ 10,265
==================== ====================
Account 234 -- Accounts Payable to Associate Companies $ - $ -
-------------------- --------------------
TOTAL $ - $ -
==================== ====================
Account 242 -- Miscellaneous Current and Accrued Liabilities
Accrued Vacation Liability $ 11,900 $ -
Supplemental Executive Retirement Plan 852 0
Payroll 1,053 -
Current Liability - Outstanding Accounts Payable checks 16,615 -
Current Liability - Suspense account (billed out in January 2002) - (69)
-------------------- --------------------
TOTAL $ 30,420 $ (69)
==================== ====================
Page 14
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars as to any
significant contingent assets or liabilities existing at the end of the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND FINANCIAL STATEMENT PRESENTATION
Xcel Energy Services Inc. (XES or the Company) is a wholly owned
subsidiary of Xcel Energy Inc. (Xcel Energy). XES is the service company for
Xcel Energy and its subsidiaries and began its operations effective August 1,
2000. XES provides various administrative, management, environmental and other
support services to Xcel Energy and its subsidiaries, at cost, pursuant to
service agreements approved by the Securities and Exchange Commission (SEC)
under the Public Utility Holding Company Act of 1935 (PUHCA). The majority of
the services performed by XES for Xcel Energy and its subsidiaries are provided
to Xcel Energy's four major operating utilities, Northern States Power Company,
a Minnesota corporation (NSP-Minnesota), Northern States Power Company, a
Wisconsin corporation (NSP-Wisconsin), Public Service Company of Colorado and
Southwestern Public Service Company.
On August 18, 2000, New Century Energies, Inc. (NCE) and Northern
States Power Company (NSP) merged and formed Xcel Energy. Each share of NCE
common stock was exchanged for 1.55 shares of Xcel Energy common stock. NSP
shares became Xcel Energy shares on a one-for-one basis. The merger was
structured as a tax-free, stock-for-stock exchange for shareholders of both
companies (except for fractional shares), and accounted for as a
pooling-of-interests. Pursuant to the merger agreement, NCE was merged with and
into NSP. NSP, as the surviving legal corporation, changed its name to Xcel
Energy.
REGULATION
XES is subject to regulation by the SEC under the PUHCA. XES'
accounting policies conform to accounting principles generally accepted in the
United States of America. XES maintains its accounts in accordance with the
Uniform System of Accounts Prescribed for Public Utilities and Licensees subject
to the Provisions of the Federal Power Act promulgated by the Federal Energy
Regulatory Commission.
USE OF ESTIMATES
The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States of America, requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amount of financial instruments approximates fair value.
Fair values have been determined through information obtained from market
sources and management estimates.
Page 14a
INCOME TAXES
The Company's operations are included in the consolidated Federal
income tax return of Xcel Energy. The allocation of income tax consequences to
the Company, including alternative minimum tax, is calculated under a parent
company policy which provides that benefits or liabilities created by the
Company, computed on a separate return basis, will be allocated to (and paid to
or by) the Company to the extent the benefits are usable or additional
liabilities are incurred in Xcel Energy's consolidated tax returns. Deferred
taxes are provided on temporary differences between the financial accounting and
tax bases of assets and liabilities using the tax rates that are in effect at
the balance sheet date (see Note 6).
STOCK-BASED COMPENSATION
The Company uses the intrinsic value based method of accounting for its
stock-based compensation plan.
2. COMMON STOCK
XES is authorized to issue 1,000 shares of Common Stock at a par value
of one cent ($0.01) per share. As of December 31, 2001, all shares of common
stock were issued and held by Xcel Energy.
3. SHORT-TERM BORROWINGS
At December 31, 2001, Xcel Energy had $800 million in credit facilities
with several banks.
PERIOD BEGINNING TERM CREDIT LINE
November 2001 364 days $ 400 million
November 2000 5 years $ 400 million
The Board of Directors has authorized the Company to borrow directly
from Xcel Energy. At December 31, intercompany borrowings outstanding and
weighted average interest rate were as follows (dollars in thousands):
2001 2000
Intercompany borrowings................. $10,265 $35,125
Weighted average interest rate.......... 2.74% 6.99%
4. COMMITMENTS AND CONTINGENCIES
LEASING PROGRAMS
The Company made payments for leases of various facilities used in the
normal course of business. The majority of the operating leases are under a
leasing program that has initial noncancelable terms of one year, while the
remaining leases have various terms. These leases may be renewed or replaced. No
material restrictions exist in these leasing agreements concerning dividends,
additional debt, or further leasing. Rental expense for the year ended December
31, 2001 and for the five months ended December 31, 2000 was approximately $7.4
million and $4.4 million, respectively.
Estimated future minimum lease payments at December 31, 2001 are as
follows (Thousands of dollars):
2002.................... $ 9,119
2003.................... 8,640
2004.................... 8,168
2005.................... 7,420
2006.................... 6,156
All years thereafter.... 4,872
Page 14b
TECHNOLOGY AGREEMENT
XES has a service agreement that extends through 2011 with
International Business Machines Corporation (IBM) to manage most of XES's
information technology systems and network infrastructure. This service
agreement provides the Company with flexibility as to the amount, type and
quality of service provided by IBM. The contract is cancelable at our option,
although there are financial penalties for early termination. For the year ended
December 31, 2001 and for the five months ended December 31, 2000, XES payments
to IBM were approximately $130 million and $51 million, respectively. The
contract also commits us to pay a minimal amount each year from 2002 through
2011.
5. BENEFIT PLANS AND OTHER POSTRETIREMENT BENEFITS
PENSIONS
The Company participates in various tax qualified noncontributory
defined benefit pension plans, which cover substantially all Xcel Energy
employees. At December 31, 2001, there were 16,340 Xcel Energy employees
(including 2,977 Company employees) participating in these plans. Xcel Energy,
as the plan sponsor, has overall responsibility for directly allocating such
costs of each individual plan to each of the participating employers. The plans'
actuary determined this allocation based on benefit obligations for active
participants. Benefits are based on a combination of years of service, the
employee's average pay and Social Security benefits.
Xcel Energy's policy is to fully fund into an external trust the
actuarially determined pension costs recognized for ratemaking and financial
reporting purposes, subject to the limitations of applicable employee benefit
and tax laws. Plan assets principally consist of the common stock of public
companies, corporate bonds and U.S. government securities.
Summary information of the actuarially computed benefit obligation,
plan assets, funded status and prepaid pension asset for the Xcel Energy plans
at December 31, 2001 and 2000, is presented in the following table (in
thousands):
2001 2000
---- ----
Benefit obligation......................................... $ 2,409,186 $ 2,254,138
Fair value of plan assets.................................. 3,267,586 3,689,157
------------ ------------
Funded status: Plan assets exceed benefit obligations...... $ 858,400 $ 1,435,019
============ ============
Xcel Energy prepaid pension asset.......................... $ 378,825 $ 225,134
============ ============
The Company's net periodic pension credit for the year ended December
31, 2001 and for the five months ended December 31, 2000 was $15,903,000 and
$2,894,000, respectively. Significant assumptions used by the Company's actuary
in the determination of these amounts are presented in the following table:
2001 2000
---- ----
Significant assumptions:
Discount rate for year-end valuation.................... 7.25% 7.75%
Expected long-term increase in compensation level....... 4.5% 4.5%
Expected average long-term rate of return on assets..... 9.5% 8.5-10.0%
Page 14c
DEFINED CONTRIBUTION PLANS
The Company participates in various defined contribution plans, which
cover substantially all Xcel Energy employees. Total contributions to these
plans by Xcel Energy were approximately $29 million and $23 million in 2001 and
2000, respectively.
Xcel Energy has a leveraged employee stock ownership plan (ESOP) that
covers substantially all employees of the former NSP. Xcel Energy makes
contributions to this noncontributory, defined contribution plan to the extent
we realize a tax savings from dividends paid on certain ESOP shares. ESOP
contributions have no material effect on Xcel Energy earnings because the
contributions are essentially offset by the tax savings provided by the
dividends paid on ESOP shares. Xcel Energy allocates leveraged ESOP shares to
participants when it repays ESOP loans with dividends on stock held by the ESOP.
POSTRETIREMENT HEALTH CARE BENEFITS
The Company participates in various health and welfare plans
administered by Xcel Energy. Xcel Energy has contributory health and welfare
benefit plans that provide health care and death benefits to most Xcel Energy
retirees. The NSP plan was terminated for nonbargaining employees retiring after
1998 and for bargaining employees after 1999. In conjunction with the 1993
adoption of Statement of Financial Accounting Standards No. 106 - "Employers'
Accounting for Postretirement Benefits Other Than Pensions," Xcel Energy elected
to amortize the unrecognized accumulated postretirement benefit obligation
(APBO) on a straight-line basis over 20 years. Plan assets are held in external
funding trusts and principally consist of investments in equity mutual funds,
fixed income securities and cash equivalents.
Summary information of the actuarially computed benefit obligation,
plan assets, funded status and accrued benefit cost for the Xcel Energy plans at
December 31 is presented in the following table (in thousands):
2001 2000
---- ----
Benefit obligation......................................... $ 687,455 $ 576,727
Fair value of plan assets.................................. 242,803 223,266
------------ ------------
Funded status: Plan obligations exceed assets.............. $ 444,652 $ 353,461
============ ============
Xcel Energy accrued benefit liability recorded............. $ 137,140 $ 153,253
============ ============
The Company's net periodic postretirement benefit cost for the year
ended December 31, 2001 and for the five months ended December 31, 2000 was
$2,120,000 and $601,000, respectively. Significant assumptions used by the
Company's actuary in the determination of these amounts are presented in the
following table:
2001 2000
---- ----
Significant assumptions:
Discount rate for year-end valuation..................... 7.25% 7.75%
Expected average long-term rate of return on assets...... 9.0% 8.0-9.5%
The assumed health care cost trend rate in 2001 is approximately 8.0
percent, decreasing gradually to 5.5 percent in 2007 and remaining level
thereafter. A 1-percent increase in the assumed health care cost trend rate
would increase the Company's total accumulated benefit obligation by
approximately $3,716,000 and the service and interest cost components of net
periodic postretirement benefit costs by approximately $ 338,000. A 1-percent
decrease in the assumed health care cost trend rate will decrease the Company's
total accumulated benefit obligation by approximately $ 3,066,000 and the
service and interest cost components of net periodic postretirement benefit
costs by approximately $ 274,000.
Page 14d
6. INCOME TAXES
The provision for income taxes for the year ended December 31, 2001 and
for the five months ended December 31, 2000 consist of the following (in
thousands of dollars):
2001 2000
---- ----
Current income taxes:
Federal.................................. $ (3,614) $ (1,312)
State.................................... (405) 81
--------------- --------------
Total current income taxes............... (4,019) (1,231)
--------------- ---------------
Deferred income taxes:
Federal.................................. 3,792 1,317
State.................................... 430 209
-------------- --------------
Total deferred income taxes............ 4,222 1,526
-------------- --------------
Total provision for income taxes............ $ 203 $ 295
============== ==============
A reconciliation of the statutory U.S. income tax rate and the
effective tax rates for the year ended December 31, 2001 and for the five months
ended December 31, 2000 follows (dollars in thousands):
2001 2000
---- ----
Tax computed at U.S. statutory rate on pre-tax
accounting income........................ $ 71 35% $ 103 35%
Increase (decrease) in tax from:
State income taxes, net of Federal income tax
benefit.................................. 16 8 189 64
Non-deductible business meals............... 116 57 168 57
Other....................................... - - (165) (56)
--------- --------- --------- ----------
Total income taxes.......................... $ 203 100% $ 295 100%
========= ========== ========= ==========
The tax effects of significant temporary differences representing
deferred tax liabilities and assets are as follows (in thousands):
2001 2000
---- ----
Deferred income tax liabilities:
Information systems charges.............. $ 6,575 $ 8,614
Pension related costs.................... 2,566 -
Rent adjustments......................... 1,438 1,438
Incentive compensation................... 413 413
Other.................................... - 59
------------ ------------
Total.................................. $ 10,992 $ 10,524
----------- -----------
Deferred income tax assets:
Postretirement benefit costs............. $ 1,200 $ 3,815
Pension related costs.................... - 1,139
Vacation liability....................... 39 39
------------ ------------
Total.................................. $ 1,239 $ 4,993
----------- -----------
Net deferred income tax liability........... $ 9,753 $ 5,531
============ ============
Page 15
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XV--STATEMENT OF INCOME
(thousands of dollars)
CURRENT PRIOR
ACCOUNT DESCRIPTION YEAR YEAR (5 MOS)
------- ----------- ---- ------------
INCOME
457 Services rendered to associate companies $ 663,190 $ 197,973
458 Services rendered to nonassociate companies - -
421 Miscellaneous income and loss - -
------------------ ----------------
TOTAL INCOME 663,190 197,973
------------------ ----------------
EXPENSES
500 Operation supervision and engineering - 668
501 Fuel - 8
502 Steam expenses - 177
505 Electric expenses - 2
506 Miscellaneous steam power expenses - 3,134
510 Maintenance supervision and engineering - 646
511 Maintenance of structures - 1
512 Maintenance of boiler plant - 34
513 Maintenance of electric plant - 98
514 Maintenance of miscellaneous steam plant - 108
517 Supervision and engineering-nuclear power generation - 5
520 Steam expenses-nuclear power generation - 7
524 Nuclear power expenses - 248
528 Maintenance and supervision-nuclear power generation - 75
530 Maintenance of reactor-nuclear power generation - 29
531 Nuclear power generation-electric plant - 14
535 Operation supervision and engineering - 5
537 Hydraulic expenses - 3
538 Electric expenses - 1
539 Miscellaneous hydraulic power generation expenses - 81
541 Maintenance supervision and engineering - 3
543 Maintenance of reservoirs, dams and waterways - 1
545 Maintenance of miscellaneous hydro plant - 7
546 Operation supervision and engineering - 20
548 Generation expenses - 67
549 Miscellaneous other power generation expenses - 92
551 Maintenance supervision and engineering - 34
553 Maintenance of generating and electric plant - 21
554 Maintenance of miscellaneous power generation plant - 1
556 System control and load dispatching - 64
557 Miscellaneous production expenses - 1,997
560 Operation supervision and engineering - 251
561 Load dispatching - 827
562 Station expenses - 21
563 Overhead line expenses - 170
Page 15a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XV--COMPARATIVE INCOME STATEMENT
(thousands of dollars)
CURRENT PRIOR
ACCOUNT DESCRIPTION YEAR YEAR (5 mos)
------- ----------- ---- ------------
566 Miscellaneous transmission expenses - 351
568 Maintenance supervision and engineering - 33
571 Maintenance of overhead lines - 87
572 Maintenance of underground lines-electric transmission - 3
573 Maintenance of miscellaneous transmission plant - 39
580 Operation supervision and engineering - 324
581 Load dispatching - 79
582 Station expenses - 182
583 Overhead line expenses - 16
584 Underground line expenses - 29
585 Street lighting and signal system expenses - 1
586 Meter expenses - 112
587 Customer installation expenses - 30
588 Miscellaneous distribution expenses - 1,745
590 Maintenance supervision and engineering - 38
592 Maintenance of station equipment - 36
593 Maintenance of overhead lines - 109
594 Maintenance of underground lines - 4
595 Maintenance of line transformers - 2
596 Maintenance of street lighting and signal systems - 2
597 Maintenance of meters - 1
598 Maintenance of miscellaneous distribution plant - 54
710 Supervision-gas manufactured - 7
807 Purchased gas expenses - 152
813 Other gas supply expenses - 334
814 Operation supervision and engineering - 5
818 Compressor station expenses - 6
820 Measuring and regulating station expenses - 4
824 Other expenses - 6
840 Supervision and engineering-other storage expense - 2
841 Other storage expenses - 7
850 Operation supervision and engineering - 52
851 System control and load dispatching - 384
852 Communication system expenses - 71
853 Compressor station labor and expenses - 7
856 Mains expenses - 31
857 Measuring and regulating station expenses - 2
859 Other expenses - 64
861 Maintenance supervision and engineering - 5
864 Maintenance of compressor station equipment - 2
865 Maintenance of measuring and regulating station equipment - 1
870 Operation supervision and engineering - 145
Page 15b
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XV--COMPARATIVE INCOME STATEMENT
(thousands of dollars)
CURRENT PRIOR
ACCOUNT DESCRIPTION YEAR YEAR (5 mos)
------- ----------- ---- ------------
871 Distribution load dispatching - 246
874 Mains and services expenses - 70
875 Measuring and regulating station expenses - general - 7
877 Measuring and regulating station expenses - city gate - 5
878 Meter and house regulator expenses - 3
879 Customer installation expenses - 20
880 Other expenses - 752
885 Maintenance supervision and engineering - 47
887 Maintenance of mains - 6
892 Maintenance of services - 6
893 Maintenance of meters and house regulators - 15
894 Maintenance of other equipment - 4
901 Supervision - 883
902 Meter reading expenses - 422
903 Customer records and collection expenses - 14,626
904 Uncollectible accounts - 2
905 Miscellaneous customer accounts expenses - 132
907 Supervision - 337
908 Customer assistance expenses - 1,644
909 Informational and instructional advertising expenses - 112
910 Miscellaneous customer service and informational expenses - 848
911 Supervision - 126
912 Demonstrating and selling expenses - 7,567
913 Advertising expense-sales - 14
916 Miscellaneous sales expense - 88
920 Salaries and wages 182,460 42,104
921 Office supplies and expenses 295,794 73,083
922 Administrative expenses transferred - credit 5,414 2,044
923 Outside services employed 73,114 6,165
924 Property insurance (573) -
925 Injuries and damages 3,528 702
926 Employee pensions and benefits 52,339 14,141
928 Regulatory commission expenses - 96
930.1 General advertising expenses 8,917 672
930.2 Miscellaneous general expenses 3,226 1,293
931 Rents 6,698 4,364
932 Maintenance of structures and equipment - 1
935 Maintenance of general plant - 40
Page 15c
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XV--COMPARATIVE INCOME STATEMENT
(thousands of dollars)
CURRENT PRIOR
ACCOUNT DESCRIPTION YEAR YEAR (5 mos)
------- ----------- ---- ------------
403 Depreciation and amortization expense - -
408 Taxes other than income taxes 13,034 3,987
409 Income taxes (4,019) (1,231)
410 Provision for deferred income taxes 4,222 3,585
411 Provision for deferred income taxes - credit - (2,059)
411.5 Investment tax credit - -
416 Expense from merchandise jobbing and contract work - 179
417.1 Expenses of nonutility operations - 1,639
426.1 Donations 5,753 2,293
426.5 Other deductions 10,962 1,324
427 Interest on long-term debt - -
430 Interest on debt to associate companies 2,310 2,085
431 Other interest expense 11 -
------------------ ----------------
TOTAL EXPENSE 663,190 197,973
------------------ ----------------
NET INCOME OR (LOSS)$ - $ -
================== ================
Page 16
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
ANALYSIS OF BILLING
ASSOCIATE COMPANIES--ACCOUNT 457
(thousands of dollars)
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
---------------------------------------------------- ------------- ------------- -------------- -------------
457-1 457-2 457-3
Public Service Company of Colorado 180,831 51,080 1,115 233,026
Southwestern Public Service Company 52,527 19,732 253 72,512
Cheyenne Light, Fuel and Power Company 2,463 1,210 27 3,700
1480 Welton, Inc. 6 334 - 340
e prime, inc. 890 402 8 1,300
PS Colorado Credit Corporation 43 423 1 467
P.S.R. Investments, Inc. 45 140 - 185
WestGas InterState, Inc. 28 4 - 32
Utility Engineering Corporation 2,660 1,293 159 4,112
Xcel Energy Inc. 7,265 3,346 49 10,660
Natural Station Equipment LLC 51 (51) 51 51
Xcel Energy International Inc. 708 103 5 816
Xcel Energy-Cadence, Inc. 6 1 - 7
Public Service Company of Co. (Hayden) 362 17 - 379
The Planergy Group, Inc. 596 155 224 975
Xcel Energy-Centrus, Inc. 2,429 35 46 2,510
Fuel Resources Development, Co. (dissolved) 1 - - 1
Public Service Company of Co. (Tri-State) 165 - - 165
Xcel Energy WYCO Inc. 12 16 2 30
Xcel Energy Retail Holdings Inc. 83 - - 83
NCE Communications, Inc. 28 21 - 49
XERS Inc. 1,779 70 3 1,852
Northern States Power (Minnesota) 238,000 51,097 313 289,410
Northern States Power (Wisconsin) 20,025 8,791 37 28,853
NRG Energy, Inc. 818 6,005 9 6,832
Viking Gas Transmission Company 347 428 1 776
Eloigne Company 22 76 1 99
First Midwest Auto Park, Inc. 14 18 - 32
Reddy Kilowatt Corporation 4 8 - 12
United Power and Land Company 185 23 - 208
Seren Innovations, Inc. 510 876 3 1,389
Ultra Power Technologies, Inc. 29 4 - 33
Energy Masters International, Inc. 687 546 1 1,234
Black Mountain Gas Company 226 183 1 410
Natrogas, Incorporated 248 401 1 650
---------------------------------------------------------------------
TOTAL 514,093 146,787 2,310 663,190
=====================================================================
Page 17
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES--ACCOUNT 458
(thousands of dollars)
INSTRUCTIONS: Provide a brief description of the services rendered to each
nonassociate company:
NAME OF DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NONASSOCIATE COSTS COSTS FOR USE TOTAL OR AMOUNT
COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
-------------- ---------------- ---------------- ----------------- ----------- -------------- ----------
458-1 458-2 458-3 458-4
None
Page 18
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVI--ANALYSIS OF CHARGES FOR SERVICE--ASSOCIATE AND
NONASSOCIATE COMPANIES
(thousands of dollars)
INSTRUCTIONS: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis of billing
schedules.
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES
------------------------- ----------------------------
DIRECT INDIRECT
ACCOUNT DESCRIPTION OF ITEMS COST COST TOTAL (NONE)
------- -------------------- ----------- ------------ -----------
920 Salaries and wages 153,167 29,293 182,460
921 Office supplies and expenses 243,666 52,128 295,794
922 Administrative expense transferred - credit 5,414 - 5,414
923 Outside services employed 54,331 18,783 73,114
924 Property insurance (573) - (573)
925 Injuries and damages 3,749 (221) 3,528
926 Employee pensions and benefits 43,123 9,216 52,339
928 Regulatory commission expense - - -
930.1 General advertising expenses 1,909 7,008 8,917
930.2 Miscellaneous general expense 990 2,236 3,226
931 Rents 4,734 1,964 6,698
932 Maintenance of structures and equipment - - -
403 Depreciation and amortization expense - - -
408 Taxes other than income taxes 10,630 2,404 13,034
409 Income taxes (4,019) - (4,019)
410 Provision for deferred income taxes 4,222 - 4,222
411 Provision for deferred income taxes-credit - - -
411.5 Investment tax credit -
426.1 Donations 5,643 110 5,753
426.5 Other deductions 9,492 1,470 10,962
427 Interest on long-term debt - - -
431 Other interest expense 11 - 11
---------------------------------------
TOTAL EXPENSES 536,489 124,391 660,880
---------------------------------------
Compensation for use of equity capital - - -
430 Interest on debt to associate companies 2,310 2,310
---------------------------------------
TOTAL COST OF SERVICE $ 538,799 $ 124,391 $ 663,190
=======================================
Page 19
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------
TOTAL EXECUTIVE INVESTOR INTERNAL
ACCOUNT DESCRIPTION OF ITEMS AMOUNT OVERHEAD MGMT SRVS RELATIONS AUDIT LEGAL
------- -------------------- ------ --------- ---------- ---------- ------- -----
920 Salaries and wages 182,460 - 2,525 602 1,551 3,596
921 Office supplies and expenses 295,794 - 6,726 2,669 155 2,667
922 Administrative expense transferred - credit 5,414 - - - - -
923 Outside services employed 73,114 - 32 630 39 954
924 Property insurance (573) - - - - -
925 Injuries and damages 3,528 - 24 5 13 32
926 Employee pensions and benefits 52,339 - 724 177 456 1,048
928 Regulatory commission expense - - - - - -
930.1 General advertising expenses 8,917 - - - - -
930.2 Miscellaneous general expense 3,226 - 1,755 1 - -
931 Rents 6,698 - 133 61 67 160
932 Maintenance of structures and equipment - - - - - -
935 Maintenance of general plant - - - - - -
403 Depreciation and amortization expense - - - - - -
408 Taxes other than income taxes 13,034 - 201 41 110 258
409 Income taxes (4,019) - - - - -
410 Provision for deferred income taxes 4,222 - - - - -
411 Provision for deferred income taxes-credit - - - - - -
411.5 Investment tax credit - - - - - -
426.1 Donations 5,753 - 8 6 - -
426.5 Other deductions 10,962 - 22 338 - 7
427 Interest on long-term debt - - - - - -
430 Interest on debt to associate companies 2,310 - - - - -
431 Other interest expense 11 - - - - -
-------------------------------------------------------------------------
TOTAL EXPENSES $ 663,190 $ - $ 12,150 $ 4,530 $ 2,391 $ 8,722
=========================================================================
Page 19a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------
CORP
CLAIMS CORPORATE EMPLOYEE STRATEGY & GOVERNMENT
ACCOUNT DESCRIPTION OF ITEMS SERVICES COMMUNICATIONS COMMUNICATIONS BUS DEVELOP AFFAIRS
------- -------------------- -------- -------------- -------------- ----------- -------
920 Salaries and wages 546 3,231 - 3,308 862
921 Office supplies and expenses 138 7,805 404 4,032 728
922 Administrative expense transferred - credit - - - - -
923 Outside services employed 44 3,873 - 5,397 96
924 Property insurance - - - - -
925 Injuries and damages 17 23 - 28 8
926 Employee pensions and benefits 160 900 - 896 256
928 Regulatory commission expense - - - - -
930.1 General advertising expenses - 8,806 - - -
930.2 Miscellaneous general expense - - - 5 138
931 Rents 27 134 - 533 71
932 Maintenance of structures and equipment - - - - -
935 Maintenance of general plant - - - - -
403 Depreciation and amortization expense - - - - -
408 Taxes other than income taxes 40 188 - 219 60
409 Income taxes - - - - -
410 Provision for deferred income taxes - - - - -
411 Provision for deferred income taxes-credit - - - - -
411.5 Investment tax credit - - - - -
426.1 Donations - 5,450 - - 16
426.5 Other deductions - (36) - - 2,810
427 Interest on long-term debt - - - - -
430 Interest on debt to associate companies - - - - -
431 Other interest expense - - - - -
-----------------------------------------------------------------------------
TOTAL EXPENSES $ 972 $ 30,374 $ 404 $ 14,418 $ 5,045
=============================================================================
19b
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------
FACILITIES SUPPLY CHAIN
FACILITIES & ADMINISTRATIVE SUPPLY SPECIAL HUMAN FINANCE &
ACCOUNT DESCRIPTION OF ITEMS REAL ESTATE SERVICES CHAIN PROGRAMS RESOURCES TREASURY
------- -------------------- ----------- -------- ----- -------- --------- --------
920 Salaries and wages 2,024 1,593 5,542 329 12,889 2,333
921 Office supplies and expenses 2,671 2,023 10,488 574 16,175 1,926
922 Administrative expense transferred - credit (309) (25) - - - -
923 Outside services employed 2,583 3,496 6,100 12 8,915 606
924 Property insurance - 2 - - 6 (591)
925 Injuries and damages 16 13 53 3 156 72
926 Employee pensions and benefits 586 609 2,145 123 3,543 654
928 Regulatory commission expense - - - - - -
930.1 General advertising expenses - - 27 - - -
930.2 Miscellaneous general expense - - 96 - 2 -
931 Rents 868 112 375 17 608 105
932 Maintenance of structures and equipment - - - - - -
935 Maintenance of general plant - - - - - -
403 Depreciation and amortization expense - - - - - -
408 Taxes other than income taxes 149 109 453 26 924 150
409 Income taxes - - - - - -
410 Provision for deferred income taxes - - - - - -
411 Provision for deferred income taxes-credit - - - - - -
411.5 Investment tax credit - - - - - -
426.1 Donations - - 2 - 1 1
426.5 Other deductions 2 1 - - - 1
427 Interest on long-term debt - - - - - -
430 Interest on debt to associate companies - - - - - -
431 Other interest expense - - - - - -
-----------------------------------------------------------------------------
TOTAL EXPENSES $ 8,590 $ 7,933 $ 25,281 $ 1,084 $ 43,219 $ 5,257
=============================================================================
19c
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
----------------------------------------------------------------------
ACCOUNTING BUSINESS UNIT
FINANCIAL RPTG ACCOUNTING PAYMENT & RECEIPTS
ACCOUNT DESCRIPTION OF ITEMS AND TAXES AND BUDGETING REPORTING PROCESSING PAYROLL
------- -------------------- --------- ------------- --------- ---------- -------
920 Salaries and wages 9,123 14,701 1,484 441 808
921 Office supplies and expenses 19,991 61,696 243 52 419
922 Administrative expense transferred - credit (454) 3 - - (154)
923 Outside services employed 3,409 4,566 505 107 370
924 Property insurance 10 - - - -
925 Injuries and damages 1,858 357 12 3 7
926 Employee pensions and benefits 1,605 3,047 422 107 226
928 Regulatory commission expense - - - - -
930.1 General advertising expenses - - - - -
930.2 Miscellaneous general expense 518 467 - - -
931 Rents 2,070 900 78 15 39
932 Maintenance of structures and equipment - - - - -
935 Maintenance of general plant - - - - -
403 Depreciation and amortization expense - - - - -
408 Taxes other than income taxes 1,067 781 111 29 59
409 Income taxes (4,019) - - - -
410 Provision for deferred income taxes 4,222 - - - -
411 Provision for deferred income taxes-credit - - - - -
411.5 Investment tax credit - - - - -
426.1 Donations 1 251 - - -
426.5 Other deductions 6,032 29 - - 528
427 Interest on long-term debt - - - - -
430 Interest on debt to associate companies 2,310 - - - -
431 Other interest expense - - - - -
----------------------------------------------------------------------
TOTAL EXPENSES $ 47,743 $ 86,798 $ 2,855 $ 754 $ 2,302
======================================================================
19d
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
----------------------------------------------------------------------
ENERGY SUPPLY ENERGY SUPPLY ENERGY MARKETS
RATES & ENGINEERING & BUSINESS REGULATED TRADING
ACCOUNT DESCRIPTION OF ITEMS REGULATION ENVIRONMENTAL RESOURCES AND MARKETING
------- -------------------- ---------- ------------- --------- -------------
920 Salaries and wages 5,610 4,295 9,280 10,129
921 Office supplies and expenses 1,603 1,574 3,755 3,984
922 Administrative expense transferred - credit - - - -
923 Outside services employed 516 1,205 1,634 1,056
924 Property insurance - - - -
925 Injuries and damages 49 38 78 92
926 Employee pensions and benefits 1,601 1,236 2,578 2,906
928 Regulatory commission expense - - - -
930.1 General advertising expenses - - - 1
930.2 Miscellaneous general expense - 79 4 15
931 Rents 325 239 464 516
932 Maintenance of structures and equipment - - - -
935 Maintenance of general plant - - - -
403 Depreciation and amortization expense - - - -
408 Taxes other than income taxes 412 320 700 757
409 Income taxes - - - -
410 Provision for deferred income taxes - - - -
411 Provision for deferred income taxes-credit - - - -
411.5 Investment tax credit - - - -
426.1 Donations - 11 - -
426.5 Other deductions 9 - - -
427 Interest on long-term debt - - - -
430 Interest on debt to associate companies - - - -
431 Other interest expense - - - -
-------------------------------------------------------------------
TOTAL EXPENSES $ 10,125 $ 8,997 $ 18,493 $ 19,456
===================================================================
19e
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------------------------------------
ENERGY ENERGY DELIVERY ENERGY DELIVERY
ENERGY MARKETS DELIVERY CONSTRUCTION ENGINEERING/
ACCOUNT DESCRIPTION OF ITEMS FUEL PROCUREMENT MARKETING OPERATION & MTCE DESIGN
------- -------------------- ---------------- --------- ---------------- ------
920 Salaries and wages 2,390 2,408 7,745 15,995
921 Office supplies and expenses 620 1,248 2,723 6,422
922 Administrative expense transferred - credit - - - -
923 Outside services employed 604 167 296 1,235
924 Property insurance - - - -
925 Injuries and damages 22 22 68 45
926 Employee pensions and benefits 688 754 2,208 4,616
928 Regulatory commission expense - - - -
930.1 General advertising expenses - 2 - -
930.2 Miscellaneous general expense 139 1 - 1
931 Rents 125 126 385 1,512
932 Maintenance of structures and equipment - - - -
935 Maintenance of general plant - - - -
403 Depreciation and amortization expense - - - -
408 Taxes other than income taxes 184 187 559 1,229
409 Income taxes - - - -
410 Provision for deferred income taxes - - - -
411 Provision for deferred income taxes-credit - - - -
411.5 Investment tax credit - - - -
426.1 Donations - - - -
426.5 Other deductions - - 1 1,194
427 Interest on long-term debt - - - -
430 Interest on debt to associate companies - - - -
431 Other interest expense - - - -
--------------------------------------------------------------------------
TOTAL EXPENSES $ 4,772 $ 4,915 $ 13,985 $ 32,249
==========================================================================
19f
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
SCHEDULE XVII--SCHEDULE OF EXPENSE
BY DEPARTMENT OR SERVICE FUNCTION
(thousands of dollars)
INSTRUCTIONS: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
-------------------------------------------------------------------
MARKETING CUSTOMER INFORMATION AVIATION
ACCOUNT DESCRIPTION OF ITEMS AND SALES SERVICE TECHNOLOGY SERVICES FLEET
------- -------------------- --------- ------- ---------- -------- -----
920 Salaries and wages 16,476 30,853 8,050 1,075 666
921 Office supplies and expenses 6,848 34,573 86,739 336 3,787
922 Administrative expense transferred - credit - (6) (581) 6,940 -
923 Outside services employed 9,086 8,210 7,371 - -
924 Property insurance - - - - -
925 Injuries and damages 115 265 28 - 6
926 Employee pensions and benefits 4,727 8,409 4,069 604 259
928 Regulatory commission expense - - - - -
930.1 General advertising expenses 21 53 7 - -
930.2 Miscellaneous general expense 3 - 2 - -
931 Rents 964 1,790 1,322 (7,517) 74
932 Maintenance of structures and equipment - - - - -
935 Maintenance of general plant - - - - -
403 Depreciation and amortization expense - - - - -
408 Taxes other than income taxes 1,077 2,227 348 3 56
409 Income taxes - - - - -
410 Provision for deferred income taxes - - - - -
411 Provision for deferred income taxes-credit - - - - -
411.5 Investment tax credit - - - - -
426.1 Donations 5 1 - - -
426.5 Other deductions 23 1 - - -
427 Interest on long-term debt - - - - -
430 Interest on debt to associate companies - - - - -
431 Other interest expense - - - 11 -
-------------------------------------------------------------------
TOTAL EXPENSES $ 39,345 $ 86,376 $ 107,355 $ 1,452 $ 4,848
===================================================================
Page 20
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
DEPARTMENTAL ANALYSIS OF SALARIES--ACCOUNT 920
(thousands of dollars)
DEPARTMENTAL SALARY EXPENSE
------------------------------------------------------------------------
INCLUDED IN AMOUNTS BILLED TO:
------------------------------
NUMBER OF
NAME OF DEPARTMENT TOTAL PARENT OTHER NON- PERSONNEL
OR SERVICE FUNCTION AMOUNT COMPANY ASSOCIATES ASSOCIATES END OF YEAR
------------------- ------- -------- ---------- ---------- -----------
Executive Management Services $ 2,525 $ 132 $ 2,393 $ - 10
Internal Audit 1,551 34 1,517 - 25
Aviation 1,075 - 1,075 - 16
Government Affairs 862 12 850 - 15
Corporate and Employee Communications 3,231 67 3,164 - 41
Legal 3,596 96 3,500 - 34
Claims Services 546 - 546 - 12
Corporate Strategy and Business Development 3,308 248 3,060 - 26
Energy Supply Business Resources 9,280 - 9,280 - 148
Energy Markets Regulated Trading & Marketing 10,129 - 10,129 - 133
Energy Supply Engineering & Environmental 4,295 - 4,295 - 70
Energy Markets Fuel Procurement 2,390 - 2,390 - 42
Information Technology 8,050 - 8,050 - 129
Supply Chain 5,542 - 5,542 - 102
Supply Chain Special Programs 329 - 329 - 9
Investor Relations 602 33 569 - 7
Payment & Reporting 1,484 - 1,484 - 40
Human Resources 12,889 - 12,889 - 213
Payroll 808 - 808 - 15
Rates and Regulation 5,610 32 5,578 - 71
Accounting, Financial Reporting and Taxes 9,123 183 8,940 - 127
Energy Delivery Engineering/Design 15,995 - 15,995 - 341
Energy Delivery Construction, Oper & Maint 7,745 - 7,745 - 145
Fleet 666 - 666 - 14
Energy Delivery Marketing 2,408 - 2,408 - 23
Customer Service 30,853 - 30,853 - 822
Marketing and Sales 16,476 - 16,476 - 245
Facilities & Real Estate 2,024 - 2,024 - 32
Facilities Administrative Services 1,593 38 1,555 - 39
Finance & Treasury 2,333 93 2,240 - 30
Business Unit Accounting and Budgeting 14,701 1 14,700 - 123
Receipts Processing 441 - 441 - 9
------------------------------------------------------------------------
TOTAL $ 182,460 $ 969 $ 181,491 $ - 3,108
========================================================================
Page 21
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Legal Services
--------------
Co-Counsel Inc. Legal Services NA 49
Dorsey & Whitney LLP Legal Services NA 33
Gardner, Carton & Douglass Legal Services NA 199
H Zinder & Associates Legal Services NA 57
Jones, Day, Reavis & Pouge Legal Services NA 410
Law Offices of John Robert Holland PC Legal Services NA 50
Merchant & Gould Legal Services NA 30
Morgan, Lewis & Bockius Legal Services NA 53
-------------
Total Legal Services 881
-------------
Auditing, Tax, Consulting and Accounting Services
-------------------------------------------------
Arthur Andersen LLP Auditing, Tax and Other Services NA 1,897
CDR Systems Auditing, Tax and Other Services NA 26
Deloitte & Touche LLP Auditing, Tax and Other Services NA 1,588
Miller & Chevalier Auditing, Tax and Other Services NA 45
Pacilio Companie Accounting Services NA 152
Price Waterhouse Coopers Auditing, Tax and Other Services NA 32
-------------
Total Auditing, Tax, Consulting and Other Services 3,740
-------------
Temporary Personnel
-------------------
Accountants On Call Temporary Personnel NA 170
Adecco Employment Service Temporary Personnel NA 1,193
All Bases Covered Temporary Personnel NA 496
Analysts International Corp. Temporary Personnel NA 190
Aquent Temporary Personnel NA 86
Cook Systems International Temporary Personnel NA 128
Crystal G Manik Temporary Personnel NA 37
Dennhardt & Associates Temporary Personnel NA 95
Entegee/Advance Possis Tech Svcs Inc. Temporary Personnel NA 408
Express Personnel Services Temporary Personnel NA 54
Indicon Inc. Temporary Personnel NA 34
Jeane Thorne, Inc. Temporary Personnel NA 544
Keane Inc. Temporary Personnel NA 742
Kelly Services Inc. Temporary Personnel NA 95
Manpower Temporary Services Temporary Personnel NA 647
Officeteam Temporary Personnel NA 50
Parsons Group Temporary Personnel NA 149
Precision Resources Temporary Personnel A 386
Pro Staff Personnel Service Temporary Personnel NA 224
Rainier Technology Temporary Personnel NA 602
Ranstad Temporary Personnel NA 38
Page 21a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Robert Half Temporary Personnel NA 56
Shared Resource Management Temporary Personnel NA 543
Tek Systems Inc Temporary Personnel NA 49
The Maxim Group Temporary Personnel NA 496
-------------
Total Temporary Personnel NA 7,512
-------------
Consulting Services
-------------------
3 Rivers Community Action Marketing Consulting NA 71
Abeln Magy & Associates HR Consulting NA 40
Adee Ltd. Marketing Consulting NA 76
Alan W Burgess, MD HR Consulting NA 53
American Lung Association Marketing Consulting NA 275
Answerthink Consulting Computer Services Consulting NA 38
AOC Employee Placement Services NA 40
Arundel Street Consulting Market Research Consulting NA 244
Aspect Communications Worforce Management Consulting NA 160
Barbara Nelson Training Services NA 25
Beacon Consulting Group Financial Systems Consulting NA 26
Black Diamond Computer Services Consulting NA 81
Blackstone Strategic Consulting NA 722
Boice Dunham Group Business Development Consulting NA 121
Brio Software Supply Chain Computer Services Consulting NA 509
Business Wire Financial Systems Consulting NA 55
Cambridge Energy Research Association Energy Markets Consulting NA 61
Cannon Technologies Computer Services Consulting NA 99
CCBN.com Investor Relations Website Consulting NA 54
Charan Associates Inc. Business Development Consulting NA 139
Christensen Associates Computer Services Consulting NA 60
Citigate Dewe Rogerson Inc. Market Research Consulting NA 29
Coherent Solutions Computer Services Consulting NA 250
Compaq Computer Services Consulting NA 60
Compucom Computer Services Consulting NA 246
Compuware Computer Services Consulting NA 261
Comquest Research LLC Market Research Consulting NA 52
Connect the Knowledge Energy Markets Consulting NA 34
Dakota County CDA Marketing Consulting NA 41
Decision Analyst Inc Marketing Consulting NA 34
Deloitte & Touche LLP Retail Consulting NA 3,128
Dynegy Energy Services Marketing Consulting NA 438
Earth Tech Environmental Services NA 26
Eckhoff Services Inc. Marketing Consulting NA 236
Efficiency Engineering Computer Services Consulting NA 61
Page 21b
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Emergingsoft Corp. Computer Services Consulting NA 50
Employee/Mgmt Involve Business Development Consulting NA 41
Eric Alexander Consulting Energy Markets Consulting NA 46
Excel Energy Technologies Inc. Marketing Consulting NA 99
Fieldstone Private Capital Group Financial Consulting NA 64
Freelance Creative Communications Consulting NA 202
Freemarkets Inc. Marketing Consulting NA 36
G.A. Wright Marketing Consulting NA 49
Gallup Organization Brand Consulting NA 408
Gedulig & Ferguson Inc. Communications Consulting NA 123
Henry Wurst Inc. Communications Consulting NA 57
High Energy Consulting Marketing Consulting NA 112
Hoeft Appliance Center Marketing Consulting NA 342
Indus International Supply Chain Computer Services Consulting NA 3,640
Insights Unlimited Marketing Consulting NA 128
Intermat Inc. Computer Services Consulting NA 435
Intervoice Brite Call Center System Consulting NA 1,411
Johnson Management Consulting Training Services NA 36
Korn/Ferry International HR Consulting NA 116
L E Peabody & Associates Consulting Services NA 380
Lambert, Magill Thomas Consulting Services NA 47
Lehman Brothers Inc. Electric Deregulation Consulting NA 310
Liaison Creative Services Communications Consulting NA 78
Lindberg Consulting Training Services NA 106
Management Systems Inc. Training Services NA 869
Matt Myers Marketing Consulting NA 59
McClain Finlon Advertising Consulting NA 1,513
McPherson Group Market Development Consulting NA 98
Media Mosaic Communications Consulting NA 766
Melodie Regan Marketing Consulting NA 25
Message Factors Market Research Consulting NA 175
Midwest Research Institute IRP Process Consulting NA 42
Mikon Corp. Energy Markets Consulting NA 57
Minneapolis Consulting Group Energy Markets Consulting NA 105
National Economic Research IRP Process Consulting NA 92
Nationwide Advertising Service Communications Consulting NA 201
Navigant Consulting Inc. Business Development Consulting NA 35
New Harbor Inc. Business Development Consulting NA 81
Opus 21 Management Solutions Facilities Consulting NA 98
PA Consulting Group IRP Process Consulting NA 66
Padilla Speer Beardsly Communications Consulting NA 44
Perry E Smith Supply Chain Computer Services Consulting NA 108
Page 21c
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Peter Imlay Assoc. Investor Relations Consulting NA 26
Pira Energy Group Energy Markets Consulting NA 69
Powerplan Consultants Financial Systems Consulting NA 890
Prosource Chippewa Environmental Services NA 81
Ramsey Action Programs Marketing Consulting NA 295
Randal E Kreus Rates & Regulatory Consulting NA 92
Regional Economic Research Inc Rates & Regulatory Consulting NA 302
RNL Solutions Marketing Consulting NA 79
Save More Resources Inc. Marketing Development Services NA 1,410
Scient Consulting Services NA 606
Scientech Inc. Supply Chain Computer Services Consulting NA 64
Scott, Madden & Associates Benefits Consulting NA 92
Seacrest Group Environmental Services NA 25
Securien Inc. IT Consulting NA 43
Simpson Partnership HR Consulting NA 109
Soft Link Inc. Payroll Computer Services NA 684
Softscape Inc. Supply Chain Computer Services Consulting NA 362
Sterling Group Marketing Consulting NA 187
Stratplans Inc. Marketing Development Services NA 141
Summit Blue Consulting Marketing Consulting NA 387
Sustainable Resources Marketing Consulting NA 29
TB Industries Computer Services Consulting NA 67
The Maris Group Marketing Consulting NA 557
The Market Solutions Group Marketing Consulting NA 78
Toeroek Associates Inc. Environmental Services NA 31
Tony J Dib Retail Consulting NA 37
Towers Perrin Benefits Consulting NA 877
Triangle Economic Research Rates & Regulatory Consulting NA 50
United Systems Integrator Corp. Facilities Consulting NA 58
Universal Network Solutions IT Consulting NA 734
University of Minnesota Retail Product Development Consulting NA 70
Verint Systems Call Center System Consulting NA 1,046
Visimetrix Inc. Facilities Computer System Consulting NA 103
Ware Consulting LLC Computer Services Consulting NA 608
Watson Wyatt & Co. Benefits Consulting NA 26
Weatherline Inc. Advertising Consulting NA 93
Wynedge Software Inc. Software Consulting NA 49
Yamamoto Moss Brand Consulting NA 179
Zechmann & Associates Energy Supply Computer Consulting NA 261
----------
Total Consulting 31,492
----------
Page 21d
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Outside Services
----------------
Affiliated Credit Services Inc. Collection Agency NA 656
Air Pollution Testing Inc. Environmental Services NA 52
Amerex Power Ltd. Brokerage Fees NA 47
Anco Engineers Inc. Engineering Services NA 50
APB Energy Inc. Brokerage Fees NA 71
ASU Risk Management Benefits Administration NA 470
Audio Visual & Film Group Communications Services NA 138
AVI Systems Facilities Maintenance NA 40
Bank of New York Transfer Agent Fee NA 185
Barr Engineering Co. Engineering Services NA 166
Benco Messenger Service Inc. Courrier Services NA 302
Blue Cross & Blue Shield Benefits Administration NA 202
Bolger Printing Printing Services NA 29
Bonded Collection Service Collection Agency NA 116
Burnes & McDonnell Wind Audit NA 33
Business Intelligence Source Market Research NA 51
Carbon Steel Inspection Inspection Services NA 42
Center for Occupational Medicine Drug Testing NA 65
Change Management Inc. Training Services NA 182
Chicago Title of Colorado Title Services NA 42
Chroma Copy Printing Services NA 29
Community Action of Minneapolis Home Energy Savings Program NA 106
Concentra Medical Centers Drug Testing/Flu Shots NA 31
Copeland Trucking Inc. Facility Moving Service NA 75
Custom Compliance Solutions Training Services NA 656
Custom Environmental Services Environmental Services NA 35
Custom TBT LLC Training Services NA 52
D & D Environmental Environmental Services NA 31
Dammann Construction Inc. Engineering Services NA 84
Douglas Brandon Environmental Services NA 56
Easi Document Integration LP Staffing Services NA 48
Easy i Inc. Training Services NA 108
Emergency Outfitters Training Services NA 38
Energy Services Group Energy Audits NA 30
Enervision Residential Energy Audits NA 38
Equifax Credit Information Credit Reporting Agency NA 263
Erin Engineering & Research Engineering Services NA 237
Eurasia Business Service Communications Services NA 374
Evelyn Logan Consulting Residential Energy Audits NA 42
Federal Express Mailing Services NA 26
First Revenue Assurance Collection Agency NA 133
Gab Robins North America Claims Services NA 45
Page 21e
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
GE Young Benefits Administration NA 1,091
Goldstein's Printing Services NA 154
Hartford Life & Annuity Benefits Administration NA 386
Health Promotion Management Wellness Program NA 240
Holly D Neel Facilities Management NA 52
Honeywell Inc. Security Services NA 91
Hotchkiss Inc. Printing Services NA 224
Human Voice Answering Service NA 29
IBM Corp Computer Services NA 461
Ikon Office Solutions Printing Services NA 132
Information Management Specialist Computer Services NA 122
Information Reporting Services Personnel Security Screening Services NA 34
Innovative Research Inc. Boiler Services NA 34
Instrument Manufacturing Cable Testing NA 126
Iota Development Corporation Training Services NA 184
J.D. Power & Associates Market Research NA 120
Market Strategies Inc. Market Research NA 419
Marsh USA Benefits Administration NA 39
Mary E Miura Training Services NA 62
Mass Mutual Benefits Administration NA 25
Master Lee Energy Services Inspection Services NA 63
Menttium Corporation Training Services NA 210
Merrill Communications Printing Services NA 50
Metropolitan Mechanical Engineering Services NA 30
Microsoft Corp. Computer Services NA 137
Mulvigil Turbine Consultants LLC Turbine Services NA 30
Munchiando Excavating Environmental Services NA 136
Nantech Consulting Customer Service Project Management NA 292
Natsource LLC Brokerage Fees NA 82
NFO USA Marketing Inc. Market Research NA 57
NS/I Mechanical Contracting Co. Engineering Services NA 34
Occupational Health Services Drug Testing NA 64
Office Plan Inc. Facilities Services NA 33
Olav & Co Computer Services NA 91
Output Technology Solutions Printing Services NA 550
Pacific Life Benefits Administration NA 518
Paradigm Learning Inc. Training Services NA 34
Park Printing Printing Services NA 33
Personnel Decisions International Training Services NA 40
Platts Energy News Service NA 138
Plus Relocation Benefits Administration NA 36
Power Controls Inc. Turbine Services NA 42
Power System Engineering Inc. Engineering Services NA 42
Page 21f
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Powerhouse Rigging Inc. Training Services NA 223
Powerplus Engineering LLC. Engineering Services NA 29
Prebon Energy Inc. Brokerage Fees NA 136
Prevention Plus Inc. HR Safety Services NA 40
Primedia-Workplace Learning Training Services NA 148
R & J Service Inc. Training Services NA 103
Resolution Inc. Training Services NA 329
Rick Souther Photography Communications Services NA 63
Right Management Consulting Outplacement Services NA 33
Risk Management Alternatives Inc. Collection Agency NA 82
RSM Enterprises Benefits Administration NA 30
Safety Kleen Corp. Environmental Services NA 126
Sam Stewart & Associates Engineering Services NA 90
Security Fence & Construction Security Services NA 101
Sonic Systems Environmental Services NA 26
Southeastern ND Community Residential Energy Audits NA 27
Spectrum Services Inc. Environmental Services NA 28
St Paul Companies Inc. Benefits Administration NA 1,066
St Paul Neighborhood Energy Residential Energy Audits NA 43
Staubach Management Facilities Management NA 1,812
Tension Envelope Billing Services NA 47
TFS Energy LLC Brokerage Fees NA 53
The Affiliated Group Credit Reporting Agency NA 29
The Apogee Group Inc. Management Training NA 221
The Marathon Group Facilities Services NA 136
The Wackenhut Corp Security Services NA 136
Thinkshop Market Research NA 35
Total Research Corporation Market Research NA 68
Trafton Printing Inc. Printing Services NA 28
Trans Alarm Security Services NA 1,260
Travelers Express Customer Pay Agent Fees NA 140
Trippler & Associates Inc Travel Services NA 35
United Business Mail Mailing Services NA 57
United Parcel Service Mailing Services NA 47
Universal Utility Service Energy Supply Lab Services A 51
University of St.Thomas Training Services NA 32
US Postal Service Mailing Services NA 30
Utility Engineering Engineering Services A 314
Vanguard Communications Communications Services NA 172
Vanguard Fiduciary Trust Co. Benefits Administration NA 150
Verifications Inc. Personnel Security Screening Services NA 217
Waste Management Environmental Services NA 160
Weatherdata Inc. Energy Markets Weather Information NA 43
Western Union Financial Services Customer Pay Agent Fees NA 459
Page 21g
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OUTSIDE SERVICES EMPLOYED--ACCOUNT 923
(thousands of dollars)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the aggregate
amounts paid to any one payee and included within one category is less than
$25,000, only the aggregate number and amount of all such payments included
within the subaccounts need be shown. Provide a subtotal for each type of
service.
RELATIONSHIP
SERVICES A'=ASSOCIATED
FROM WHOM PURCHASED PROVIDED "NA"=NONASSOCIATED AMOUNT
------------------- -------- ------------------ ------
Willa Inc. Environmental Services NA 31
Wilson Learning Training Services NA 51
Xelco Collections Collection Agency NA 179
Xerox Corporation Printing Services NA 131
Zamba Solutions Market Research NA 559
Other (1125) Various NA 7,840
------------
Total Outside Services 29,489
------------
TOTAL OUTSIDE SERVICES EMPLOYED $ 73,114
============
Page 22
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
EMPLOYEE PENSION AND BENEFITS--ACCOUNT 926
(thousands of dollars)
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited to $25,000.
DESCRIPTION AMOUNT
----------- --------------
Incentive Plan $ 17,670
Pensions (4,363)
Pension, Insurance and Taxes 5,622
Supplemental Executive Retirement Plan 4,451
Employee Savings Plans (401K) 4,867
Post Retirement Health Care 2,006
Post Employment Benefits (491)
Managed Health Care 25,034
Dental Care 559
Life Insurance 111
Vacation 1,787
Bonus/Service Awards 41
Other (4,955)
----------------
TOTAL $ 52,339
================
Page 23
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
GENERAL ADVERTISING EXPENSE--ACCOUNT 930.1
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to the nature of
the advertising and as defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
----------- ------------- ------
Ad Agency/Advertising/Printing McClain Finlon Advertising Inc. 6,475
Advertising Pepsi Center 519
Advertising State Bank of West Fargo 265
Advertising TMP Worldwide 180
Advertising Weatherline Inc. 152
Advertising Minntertainment Co. 125
Advertising - Sponsorship Downtown Denver Partnership 106
Advertising - Research Gallup Organization 237
Mailing Postmaster 84
Advertising Home Builders Assoc. 83
Printing Output Technology Solutions 83
Advertising Geduldig & Ferguson Inc. 68
Advertising KUSA TV 62
Advertising - Research Customer Link 56
Advertising The Axiom Group Inc. 55
Advertising Cactus Marketing Communications 50
Office Expense IBM Global Services 40
Advertising - Sponsorship University of MN 38
Printing Hotchkiss Inc. 28
Advertising - Sponsorship Asian/Hispanic Mktg Conference 15
Advertising Minority Business News 13
Advertising - Sponsorship PPI Sports 11
Advertising - Sponsorship Minnesota Thunder 10
Advertising - Sponsorship US Hockey Hall of Fame 9
Advertising Maris Group LLC 8
Printing Shapco Printing Inc. 8
Advertising Encompass Marketing 7
Advertising Materials & Supplies Reddy Store 7
Advertising MPMA Journal 6
Advertising Qwest 6
Advertising Colorado Press 6
Printing Pyramid Print & Graphics 4
Advertising Citizens Communications 4
Miscellaneous Advertising Various (111) 97
-----------------
TOTAL $ 8,917
=================
Page 23a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
MISCELLANEOUS GENERAL EXPENSES--ACCOUNT 930.2
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses" classifying such expenses according to their
nature. Payments and expenses permitted by Section 321 (b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. 441
(b)(2)) shall be separately classified.
DESCRIPTION NAME OF PAYEE AMOUNT
----------- ------------- ------
Utility Association Dues Various $ 1,468
Board of Director Fees and Expenses Various 1,758
---------------
TOTAL $ 3,226
===============
RENTS--ACCOUNT 931
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents",
classifying such expenses by major groupings of property, as defined in the
account definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
---------------- ------
Rents - Office Space $ 6,698
---------------
TOTAL $ 6,698
===============
Page 24
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
TAXES OTHER THAN INCOME TAXES--ACCOUNT 408
(thousands of dollars)
INSTRUCTIONS: Provide an analysis of Account 408 "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U.S. Government
taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes
and show the amounts thereof. Provide a subtotal for each class of tax.
KIND OF TAX AMOUNT
----------- ------
Other Than U.S. Government Taxes:
State Unemployment Taxes $ 203
Denver City Tax 43
Franchise Tax - Texas, Kansas, Delaware, Ohio and New Mexico 296
Other - various 115
--------------
SUBTOTAL 657
--------------
U.S. Government Taxes:
Social Security Taxes 12,189
Federal Unemployment Taxes 188
--------------
SUBTOTAL 12,377
--------------
TOTAL $ 13,034
==============
Page 25
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
DONATIONS--ACCOUNT 426.1
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
----------------- ------------------- ------
Annual Fund - South Dakota Symphony Contribution to support community assistance 3
Center for Ethical Business Contribution to support community assistance 8
City of Tea Contribution to support community assistance 4
City of Tracy Contribution to support community assistance 5
Campaign Consultant Program Contribution to support community assistance 19
Community Violence Intervention Contribution to support community assistance 5
Corporate State Sponsorship Contribution to support community assistance 25
Denver Metro Chamber of Commerce Contribution to support community assistance 108
Dinner Honoring A Hirschfeld Contribution to support community assistance 10
Donation Contribution to support community assistance 3
Gold Sponsorship of Technology Contribution to support community assistance 4
Hotchkiss Contribution to support community assistance 13
Habitat for Humanities Contribution to support community assistance 4
American Century Golf Classic Contribution to support community assistance 5
Leadership Forum Contribution to support community assistance 5
Legislative Speaker and Programs Contribution to support community assistance 4
Lennox Gold Community Contribution to support community assistance 3
Minnesota Public Radio Contribution to support community assistance 3
Minnesota State Society Contribution to support community assistance 3
Minnesotans for a Fair Contribution to support community assistance 5
Minnesota Environmental Initiative Contribution to support community assistance 8
NCSL CO 2002 Fund - Sponsorship Contribution to support community assistance 7
LAEF Gala Contribution to support community assistance 5
Output Technology Solutions Contribution to support community assistance 19
Pueblo Chamber of Commerce Contribution to support community assistance 3
Printing and Graphics Contribution to support community assistance 13
Ready Store Contribution to support community assistance 10
Sioux Falls Area Community Contribution to support community assistance 5
Support North Valley Art Contribution to support community assistance 5
Timberwolves Donation Contribution to support community assistance 3
Urban League of Metro Denver Contribution to support community assistance 15
Washington Pavilion Contribution to support community assistance 10
Western Fantasy, Corporate Tab Contribution to support community assistance 5
Women's Conference 2001 Contribution to support community assistance 5
PorterCare Foundation Contribution to support health 3
ALTRU Health Foundation Contribution to support health 6
John Nasseff Heart Hospital Contribution to support health 3
Turning Point Contribution to support health 9
Minnesota Scholarships Contribution to support education 20
Colorado Scholarships Contribution to support education 26
Texas Scholarships Contribution to support education 10
Wisconsin Scholarships Contribution to support education 5
ND and SD Scholarships Contribution to support education 5
Golden Buffalo Scholarship Fund Contribution to support education 5
Page 25a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
DONATIONS--ACCOUNT 426.1
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
----------------- ------------------- ------
South Dakota State University Contribution to support education 7
Energy Share of North Dakota Contribution to support low income 20
CEAF Contribution to support low income 35
United Way Contribution to support United Way 4
Denver Kids, Inc. Contribution to support young people 3
Indianhead Scouting Contribution to support young people 3
Girl Scouts - Mile High Council Contribution to support young people 4
South Dakota 4-H Assoc. Contribution to support young people 4
Children's Hospital Gala Contribution to support young people 5
Xcel Foundation Contributions to support activities in the organization 5,150
Other (232) 74
--------
TOTAL $ 5,753
========
Page 26
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
OTHER DEDUCTIONS--ACCOUNT 426.5
(thousands of dollars)
INSTRUCTIONS: Provide a listing of the amount include in Account 426.5, "Other
Deductions", classifying such expenses according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
----------- ------------- ------
Expenditures for Certain Civic, Company employee, administrative costs
Political & Related Activities for civic, political and related activities; employee
severance (1,508 items) $ 10,962
---------------
TOTAL $ 10,962
===============
Page 27
ANNUAL REPORT OF XCEL ENERGY SERVICES, INC.
For the Year Ended December 31, 2001
SCHEDULE XVIII--NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as to any
significant increases and services rendered or expenses incurred during the
year. Notes related to financial statements shown elsewhere in this report may
be indicated here by reference.
The December 31, 2001 Statement of Income and related detailed schedules
includes accounts as specified by the Uniform System of Accounts for Mutual
Service Companies instead of the Federal Energy Regulatory Commission ("FERC")
accounts.
Also, see Notes to Financial Statements on pages 14-14d, for additional Notes to
Statement of Income.
Page 28
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
For the Year Ended December 31, 2001
ORGANIZATION CHART (SUMMARY LEVEL)
ORGANIZATION CHART SERVICE FUNCTION
------------------ ----------------
Chairman Executive Management Services
President, CEO Executive Management Services
Financial and Support Services-CFO Accounting, Fin Reporting, Taxes
Accounting Accounting, Fin Reporting, Taxes
Accounts Payable Payment & Reporting
Payroll Payroll
Internal Audit Internal Audit
Investor/Shareholder Services Investor Relations
Finance and Treasury Finance and Treasury
Receipts Processing Receipts Processing
General Counsel Legal
Claims Services Claims Services
Regulatory and Governmental Affairs - Vice-President Rates and Regulation
Regulatory Administration Rates and Regulation
Government Affairs Government Affairs
Shared Services - Chief Administration Officer Executive Management Services
Human Resources Human Resources
Communications Corporate and Employee Communications
Supply Chain Supply Chain and S. Chain Special Programs
Facilities and Real Estate Facilities and Real Estate
Aviation Aviation
Energy Markets - President Energy Mkts Reg Trading & Mktg
Energy Markets Regulated Trading & Marketing Energy Mkts Reg Trading & Mktg
Energy Markets Fuel Procurement Energy Markets Fuel Procurement
Energy Markets - Vice-President/CFO Business Unit Acctg & Budgeting
Energy Supply - President Business Unit Acctg & Budgeting
Energy Supply Business Resources Business Unit Acctg & Budgeting
Energy Supply Engineering & Environmental Energy Supply Engineering & Environmental
Delivery - President Business Unit Acctg & Budgeting
Energy Delivery Asset Management Business Unit Acctg & Budgeting
Energy Delivery Engineering/Design Energy Delivery Engineering/Design
Energy Delivery Construction, Oper & Maint Energy Delivery Constr, Oper & Maint
Fleet Fleet
Energy Delivery Marketing Energy Delivery Marketing
Retail - President Business Unit Acctg & Budgeting
Retail - Controller Business Unit Acctg & Budgeting
Marketing and Sales Marketing and Sales
Customer Service Customer Sales
Enterprises - President Corp Strategy & Business Development
Corporate Strategy and Business Development Corp Strategy & Business Development
Information Technology Information Technology
Page 29
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
METHODS OF ALLOCATION
Revenue Ratio - Based on the sum of the monthly revenue amounts for the
prior year ending December 31, the numerator of which is for an
applicable Operating Company or affiliate company and the denominator
of which is for all applicable Operating Companies and affiliate
companies. This ratio will be determined annually, or at such time as
may be required due to significant changes.
Employee Ratio - Based on the number of employees at the end of the
prior year ending December 31, the numerator of which is for an
applicable Operating Company or affiliate company and the denominator
of which is for all applicable Operating Companies and affiliate
companies. This ratio will be determined annually, or at such time as
may be required due to significant changes.
Total Assets Ratio, with 15 Percent of Assets assigned to Xcel Energy
Inc. - Based on the total assets as of December 31 for the prior year,
the numerator of which is for an applicable Operating Company or
affiliate company and the denominator of which is for all applicable
Operating Companies and affiliate companies. Xcel Energy Inc. will be
assigned fifteen percent of the total assets. This ratio will be
determined annually, or at such time as may be required due to
significant changes.
Total Assets Ratio - Based on the total assets as of December 31 for
the prior year, the numerator of which is for an applicable Operating
Company or affiliate company and the denominator of which is for all
applicable Operating Companies and affiliate companies. This ratio will
be determined annually, or at such time as may be required due to
significant changes.
Square Footage Ratio - Based on the total square footage as of December
31 for the prior year, the numerator of which is for an applicable
Operating Company or affiliate company and the denominator of which is
for all applicable Operating Companies and affiliate companies. This
ratio will be determined annually, or at such time as may be required
due to significant changes.
Invoice Transaction Ratio - Based on the sum of the monthly number of
invoice transactions processed for the prior year ending December 31,
the numerator of which is for an applicable Operating Company or
affiliate company and the denominator of which is for all applicable
Operating Companies and affiliate companies. This ratio will be
determined annually, or at such time as may be required due to
significant changes.
Customer Bills Ratio - Based on the average of the monthly total number
of customer bills issued during the prior year ending December 31, the
numerator of which is for an applicable Operating Company or affiliate
company and the denominator of which is for all applicable Operating
Companies and affiliate companies. This ratio will be determined
annually, or at such a time as may be required due to significant
changes.
MWh Generation Ratio - Based on the sum of the monthly electric MWh
generated during the prior year ending December 31, the numerator of
which is for an applicable Operating Company and the denominator of
which is for all applicable Operating Companies. This ratio will be
determined annually, or at such time as may be required due to
significant changes.
Page 29a
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
METHODS OF ALLOCATION
Total MWh Sales Ratio - Based on the sum of the monthly electric MWh
hours sold during the prior year ending December 31, the numerator of
which is for an applicable Operating Company and the denominator of
which is for all applicable Operating Companies. This includes sales to
ultimate customers, wholesale customers, and non-requirement sales for
resale. This ratio will be determined annually, or at such time as may
be required due to significant changes.
Customers Ratio - Based on the average of the monthly total electric
customers (and/or gas customers, or residential, business and large
commercial and industrial customers where applicable) for the prior
year ending December 31, the numerator of which is for an applicable
Operating Company or affiliate company and the denominator of which is
for all applicable Operating Companies and affiliate companies. This
ratio will be determined annually, or at such time as may be required
due to significant changes.
Labor Dollars Ratio - Based on the XES department (performing center)
labor dollars charged to Operating companies and other affiliates for
the month. The numerator of which is the labor dollars charged to an
Operating Company or affiliate company and the denominator of which is
for all Operating Companies and affiliate companies charged by the
department for the month.
Delivery Services Gross Plant Ratio - Based on transmission and
distribution gross plant for the Delivery Business unit, both electric
and gas for the prior year ending December 31, the numerator of which
is an applicable Operating Company and the denominator of which is for
all applicable Operating Companies. This ratio will be determined
annually, or at such time as may be required due to significant
changes.
Page 30
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
For the Period Ended December 31, 2001
The following annual statement was supplied to each associate company
in support of the amount of compensation for use of capital billed during 2001:
In accordance with Instruction 01-12 of the Securities and Exchange
Commission's Uniform System of Accounts for Mutual Service Companies and
Subsidiary Service Companies, Xcel Energy Services Inc. (XES) submits the
following information on the billing of interest on borrowed funds to associated
companies for the year 2001:
A. Amount of interest billed to associate companies is contained
on page 16, Analysis of Billing.
B. Amount of interest XES pays Xcel Energy Inc. is based on Xcel
Energy's weighted cost of debt adjusted for their commitment
(facilities) fees. Interest is billed to associate companies
based on each company's Accounts Receivable balance weighted
with other significant Service Company assets in which the
benefits can be directly assigned to specific companies.
Companies with outstanding Accounts Receivable balances
greater than 30 days and more than $1000 are charged a 1%
penalty on the outstanding balance in addition to their
monthly interest expense. The penalty amounts reduce the
monthly interest amount allocated based on total Accounts
Receivable balances.
Page 31
ANNUAL REPORT OF XCEL ENERGY SERVICES INC.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
Xcel Energy Services Inc.
----------------------------------------------
(Name of Reporting Company)
By: /s/ David E. Ripka
----------------------------------------------
(Signature of Signing Officer)
David E. Ripka, Vice President and Controller
----------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 30, 2002