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Xcel Energy Third Quarter 2020 Earnings Report

  • GAAP 2020 third quarter diluted EPS was $1.14 compared with $1.01 per share in 2019.
  • Xcel Energy narrows its 2020 EPS guidance range to $2.75 to $2.81 from $2.73 to $2.83 per share.
  • Xcel Energy initiates 2021 EPS guidance of $2.90 to $3.00.

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy Inc. (NASDAQ: XEL) today reported 2020 third quarter GAAP and ongoing earnings of $603 million, or $1.14 per share, compared with $527 million, or $1.01 per share in the same period in 2019.


Xcel Energy achieved strong third quarter results despite the ongoing pandemic and has launched important new initiatives to support our customers, employees and communities through these challenging times. As a result, we are narrowing our 2020 earnings guidance to $2.75 to $2.81 per share. In addition, we are initiating 2021 earnings guidance of $2.90 to $3.00 per share, which is consistent with our long-term growth objective,” said Ben Fowke, chairman and CEO of Xcel Energy.

Over the next five years, we plan to invest $22.6 billion in base capital. We also have proposed to invest an incremental $1.4 billion related to requests from Minnesota to help address the economic impacts of COVID-19. Our proposal, which includes grid investment, solar facilities and modernizing aging wind farms, would create 5,000 jobs and expand our renewable portfolio, all while keeping customer bills low. It also outlines a 10-year vision to power 1.5 million electric vehicles, saving customers $1 billion on fueling costs and cutting carbon emissions by nearly 5 million tons annually by 2030.”

At 9:00 a.m. CDT today, Xcel Energy will host a conference call to review financial results. To participate in the call, please dial in 5 to 10 minutes prior to the start and follow the operator’s instructions.

US Dial-In:

(866) 575-6539

International Dial-In:

(400) 120-9101

Conference ID:

9230440

The conference call also will be simultaneously broadcast and archived on Xcel Energy’s website at www.xcelenergy.com. To access the presentation, click on Investor Relations. If you are unable to participate in the live event, the call will be available for replay from 12:00 p.m. CDT on Oct. 29 through 12:00 p.m. CDT on Nov. 1.

Replay Numbers

 

US Dial-In:

(888) 203-1112

International Dial-In:

(719) 457-0820

Access Code:

9230440

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2020 earnings per share (EPS) guidance, 2021 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future bad debt expense, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, and expectations regarding regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety, including our nuclear generation facilities; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs, changes in regulation and subsidiaries’ ability to recover costs from customers; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

This information is not given in connection with any sale, offer for sale or offer to buy any security.

XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in millions, except per share data)

 

 

 

Three Months Ended Sept. 30

 

Nine Months Ended Sept. 30

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating revenues

 

 

 

 

 

 

 

 

Electric

 

$

2,941

 

 

 

$

2,771

 

 

 

$

7,430

 

 

 

$

7,345

 

 

Natural gas

 

219

 

 

 

222

 

 

 

1,082

 

 

 

1,324

 

 

Other

 

22

 

 

 

20

 

 

 

67

 

 

 

62

 

 

Total operating revenues

 

3,182

 

 

 

3,013

 

 

 

8,579

 

 

 

8,731

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Electric fuel and purchased power

 

981

 

 

 

952

 

 

 

2,611

 

 

 

2,679

 

 

Cost of natural gas sold and transported

 

54

 

 

 

55

 

 

 

425

 

 

 

646

 

 

Cost of sales — other

 

11

 

 

 

9

 

 

 

28

 

 

 

28

 

 

Operating and maintenance expenses

 

579

 

 

 

580

 

 

 

1,708

 

 

 

1,764

 

 

Conservation and demand side management expenses

 

73

 

 

 

75

 

 

 

215

 

 

 

212

 

 

Depreciation and amortization

 

513

 

 

 

447

 

 

 

1,449

 

 

 

1,319

 

 

Taxes (other than income taxes)

 

158

 

 

 

137

 

 

 

453

 

 

 

429

 

 

Total operating expenses

 

2,369

 

 

 

2,255

 

 

 

6,889

 

 

 

7,077

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

813

 

 

 

758

 

 

 

1,690

 

 

 

1,654

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

1

 

 

 

8

 

 

 

(6

)

 

 

14

 

 

Equity earnings of unconsolidated subsidiaries

 

12

 

 

 

10

 

 

 

29

 

 

 

29

 

 

Allowance for funds used during construction — equity

 

30

 

 

 

15

 

 

 

91

 

 

 

55

 

 

 

 

 

 

 

 

 

 

 

Interest charges and financing costs

 

 

 

 

 

 

 

 

Interest charges — includes other financing costs of $7, $6, $21 and $19, respectively

 

221

 

 

 

199

 

 

 

628

 

 

 

578

 

 

Allowance for funds used during construction — debt

 

(11

)

 

 

(7

)

 

 

(33

)

 

 

(27

)

 

Total interest charges and financing costs

 

210

 

 

 

192

 

 

 

595

 

 

 

551

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

646

 

 

 

599

 

 

 

1,209

 

 

 

1,201

 

 

Income tax expense

 

43

 

 

 

72

 

 

 

24

 

 

 

121

 

 

Net income

 

$

603

 

 

 

$

527

 

 

 

$

1,185

 

 

 

$

1,080

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

526

 

 

519

 

 

526

 

 

517

 

Diluted

 

528

 

 

521

 

 

527

 

 

518

 

 

 

 

 

 

 

 

 

 

Earnings per average common share:

 

 

 

 

 

 

 

 

Basic

 

$

1.15

 

 

 

$

1.02

 

 

 

$

2.25

 

 

 

$

2.09

 

 

Diluted

 

1.14

 

 

 

1.01

 

 

 

2.25

 

 

 

2.08

 

 

XCEL ENERGY INC. AND SUBSIDIARIES
Notes to Investor Relations Earnings Release (Unaudited)

Due to the seasonality of Xcel Energy’s operating results, quarterly financial results are not an appropriate base from which to project annual results.

Non-GAAP Financial Measures

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

Ongoing ROE

Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity. We use these non-GAAP financial measures to evaluate and provide details of earnings results.

Electric and Natural Gas Margins

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

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

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

We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. For the three and nine months ended Sept. 30, 2020 and 2019, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings for these periods.

Note 1. Earnings Per Share Summary

Xcel Energy’s 2020 third quarter earnings were $1.14 per share compared to $1.01 per share in 2019, primarily reflecting higher electric margin (largely due to capital investment recovery) and allowance for funds used during construction (AFUDC), which offset increased depreciation and declining sales due to the impacts of COVID-19. Third quarter sales declined on a weather-adjusted basis, but exceeded our previous assumptions. There continues to be uncertainty related to the impact of the pandemic on the remainder of the year.

All companies were negatively impacted by the pandemic starting in March 2020 and continuing into the third quarter. See Note 5 for further information regarding COVID-19, including estimated impact on weather-adjusted electric sales.

Summarized diluted EPS for Xcel Energy:

 

 

Three Months Ended Sept. 30

 

Nine Months Ended Sept. 30

Diluted Earnings (Loss) Per Share

 

2020

 

 

2019

 

 

2020

 

 

2019

 

NSP-Minnesota

 

$

0.46

 

 

 

$

0.40

 

 

 

$

0.89

 

 

 

$

0.81

 

 

PSCo

 

0.42

 

 

 

0.39

 

 

 

0.87

 

 

 

0.86

 

 

SPS

 

0.24

 

 

 

0.20

 

 

 

0.46

 

 

 

0.42

 

 

NSP-Wisconsin

 

0.08

 

 

 

0.06

 

 

 

0.16

 

 

 

0.12

 

 

Equity earnings of unconsolidated subsidiaries

 

0.01

 

 

 

0.01

 

 

 

0.04

 

 

 

0.04

 

 

Regulated utility (a)

 

1.21

 

 

 

1.06

 

 

 

2.42

 

 

 

2.24

 

 

Xcel Energy Inc. and Other

 

(0.07

)

 

 

(0.05

)

 

 

(0.17

)

 

 

(0.16

)

 

Total (a)

 

$

1.14

 

 

 

$

1.01

 

 

 

$

2.25

 

 

 

$

2.08

 

 

 

(a) Amounts may not add due to rounding.

NSP-Minnesota — Earnings increased $0.06 per share for the third quarter of 2020 and $0.08 per share year-to-date. Year-to-date results reflect lower O&M expenses and higher electric margin (regulatory outcomes offset lower sales primarily due to COVID-19), partially offset by increased depreciation and lower natural gas margin.

PSCo — Earnings increased $0.03 per share for the third quarter of 2020 and $0.01 per share year-to date. The increase in year-to-date earnings was driven by higher electric margin (regulatory outcomes offset lower sales due to COVID-19), increased AFUDC and reduced O&M expenses, partially offset by higher depreciation, interest expense and taxes (other than income taxes).

SPS — Earnings increased $0.04 per share for the third quarter of 2020 and $0.04 per share year-to-date. Year-to-date results reflect higher electric margin (regulatory outcomes offset lower sales due to COVID-19) and lower O&M expenses, partially offset by increased depreciation, interest expense and taxes (other than income taxes).

NSP-Wisconsin — Earnings increased $0.02 per share for the third quarter of 2020 and $0.04 per share year-to-date. The increase in year-to-date earnings was driven by higher electric margin (2020 Wisconsin Fuel Settlement offset lower sales due to COVID-19) and AFUDC, as well as lower O&M expenses. These items were partially offset by increased depreciation and lower natural gas margin.

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

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

Diluted Earnings (Loss) Per Share

 

Three Months
Ended Sept. 30

 

Nine Months Ended
Sept. 30

GAAP and ongoing diluted EPS - 2019

 

$

1.01

 

 

 

$

2.08

 

 

 

 

 

 

 

Components of change - 2020 vs. 2019

 

 

 

 

Higher electric margin (a)

 

0.20

 

 

 

0.22

 

 

Lower ETR (b)

 

0.07

 

 

 

0.17

 

 

Lower O&M

 

 

 

 

0.08

 

 

Higher AFUDC

 

0.03

 

 

 

0.07

 

 

Higher depreciation and amortization

 

(0.09

)

 

 

(0.19

)

 

Higher interest charges

 

(0.03

)

 

 

(0.07

)

 

Lower natural gas margins

 

 

 

 

(0.03

)

 

Lower other income (expense), net

 

(0.01

)

 

 

(0.03

)

 

Other (net)

 

(0.04

)

 

 

(0.05

)

 

GAAP and ongoing diluted EPS - 2020

 

$

1.14

 

 

 

$

2.25

 

 

(a) Period-over-period change in electric margin was negatively impacted by reductions in sales and demand due to COVID-19 as follows:

Diluted Earnings (Loss) Per Share

 

Three Months
Ended Sept. 30

 

Nine Months
Ended Sept. 30

Electric margin (excluding reductions in sales and demand)

 

$

0.21

 

 

 

$

0.30

 

 

Reductions in sales and demand (*)

 

(0.01

)

 

 

(0.08

)

 

Higher electric margins

 

$

0.20

 

 

 

$

0.22

 

 

 

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

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

Note 2. Regulated Utility Results

Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance.

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

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

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

 

Three Months Ended Sept. 30

 

Nine Months Ended Sept. 30

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

HDD

48.4

%

 

(64.0)

%

 

251.2

%

 

(2.8)

%

 

10.7

%

 

(11.2)

%

CDD

20.7

 

 

27.4

 

 

1.3

 

 

21.2

 

 

6.4

 

 

21.3

 

THI

4.6

 

 

(2.6)

 

 

8.3

 

 

7.0

 

 

(8.2)

 

 

18.3

 

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

 

Three Months Ended Sept. 30

 

Nine Months Ended Sept. 30

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

 

2020 vs.
Normal

 

2019 vs.
Normal

 

2020 vs. 2019

Retail electric

$

0.079

 

 

$

0.040

 

 

$

0.039

 

 

$

0.096

 

 

$

0.035

 

 

$

0.061

 

Decoupling and sales true-up

(0.035)

 

 

 

 

(0.035)

 

 

(0.044)

 

 

 

0.001

 

 

(0.045)

 

Electric total

$

0.044

 

 

$

0.040

 

 

$

0.004

 

 

$

0.052

 

 

$

0.036

 

 

$

0.016

 

Firm natural gas

 

 

(0.001)

 

 

0.001

 

 

(0.005)

 

 

0.021

 

 

(0.026)

 

Total

$

0.044

 

 

$

0.039

 

 

$

0.005

 

 

$

0.047

 

 

$

0.057

 

 

$

(0.010)

 

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

 

 

Three Months Ended Sept. 30

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Actual (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

8.7

 %

 

11.8

 %

 

4.4

 %

 

6.6

 %

 

9.1

 %

Electric C&I

 

(4.5

)

 

 

(5.2

)

 

 

(5.5

)

 

 

(4.1

)

 

 

(5.0

)

 

Total retail electric sales

 

(0.1

)

 

 

0.1

 

 

 

(3.5

)

 

 

(1.2

)

 

 

(0.9

)

 

Firm natural gas sales

 

1.1

 

 

 

2.1

 

 

 

N/A

 

 

 

11.2

 

 

 

2.0

 

 

 

 

Three Months Ended Sept. 30

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Weather-Normalized (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

3.8

 %

 

4.3

 %

 

2.2

 %

 

2.0

 %

 

3.7

 %

Electric C&I

 

(4.2

)

 

 

(5.3

)

 

 

(5.0

)

 

 

(4.6

)

 

 

(4.8

)

 

Total retail electric sales

 

(1.6

)

 

 

(2.3

)

 

 

(3.5

)

 

 

(2.7

)

 

 

(2.4

)

 

Firm natural gas sales

 

(4.8

)

 

 

(1.8

)

 

 

N/A

 

 

 

6.6

 

 

 

(3.3

)

 

 

 

Nine Months Ended Sept. 30

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Actual (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

6.9

 %

 

5.6

 

5.0

 %

 

2.9

 %

 

5.8

 %

Electric C&I

 

(4.2

)

 

 

(7.3

)

 

 

(3.4

)

 

 

(5.6

)

 

 

(5.2

)

 

Total retail electric sales

 

(0.7

)

 

 

(3.4

)

 

 

(2.0

)

 

 

(3.2

)

 

 

(2.2

)

 

Firm natural gas sales

 

(7.3

)

 

 

(9.3

)

 

 

N/A

 

 

 

(9.9

)

 

 

(8.1

)

 

 

 

Nine Months Ended Sept. 30

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Weather-Normalized (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

3.5

 %

 

3.3

 %

 

2.0

 

2.7

 

3.2

 %

Electric C&I

 

(4.7

)

 

 

(7.5

)

 

 

(3.5

)

 

 

(5.8

)

 

 

(5.5

)

 

Total retail electric sales

 

(2.1

)

 

 

(4.2

)

 

 

(2.6

)

 

 

(3.4

)

 

 

(3.1

)

 

Firm natural gas sales

 

(1.7

)

 

 

2.2

 

 

 

N/A

 

 

 

3.6

 

 

 

(0.2

)

 

 

 

Nine Months Ended Sept. 30 (Leap Year Adjusted)

 

 

PSCo

 

NSP-Minnesota

 

SPS

 

NSP-Wisconsin

 

Xcel Energy

Weather-Normalized (a)

 

 

 

 

 

 

 

 

 

 

Electric residential

 

3.2

 

3.0

 %

 

1.6

 %

 

2.3

 %

 

2.8

 %

Electric C&I

 

(5.1

)

 

 

(7.8

)

 

 

(3.9

)

 

 

(6.2

)

 

 

(5.8

)

 

Total retail electric sales

 

(2.5

)

 

 

(4.6

)

 

 

(3.0

)

 

 

(3.8

)

 

 

(3.5

)

 

Firm natural gas sales

 

(2.5

)

 

 

1.4

 

 

 

N/A

 

 

 

2.8

 

 

 

(1.0

)

 

(a) Higher residential sales and lower commercial and industrial (C&I) sales were primarily attributable to COVID-19.

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

  • PSCo — Residential sales rose based on higher use per customer from increased working from home and an increased number of customers. The decline in C&I sales was primarily due to the economic contraction from COVID-19, particularly noted within the manufacturing and service industries.
  • NSP-Minnesota — Residential sales growth reflects higher use per customer from increased working from home and an increase in customers. Decrease in C&I sales were driven by the energy, manufacturing and services sectors, primarily related to COVID-19.
  • SPS — Residential sales increased due to customer growth and higher use per customer from increased working from home. The decline in C&I sales was driven by shutdowns of the economy from COVID-19, primarily within the energy and manufacturing sectors.
  • NSP-Wisconsin — Residential sales growth was attributable to higher use per customer from increased working from home and customer additions. The decline in C&I sales was largely related to COVID-19, specifically decreased sales to the manufacturing sector.

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

  • Natural gas sales reflect primarily lower C&I customer use due to the economic contraction from COVID-19, partially offset by an increase in number of residential and C&I customers.

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

Electric revenues and margin:

 

 

Three Months Ended Sept. 30

 

Nine Months Ended Sept. 30

(Millions of Dollars)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Electric revenues

 

$

2,941

 

 

 

$

2,771

 

 

 

$

7,430

 

 

 

$

7,345

 

 

Electric fuel and purchased power

 

(981

)

 

 

(952

)

 

 

(2,611

)

 

 

(2,679

)

 

Electric margin

 

$

1,960

 

 

 

$

1,819

 

 

 

$

4,819

 

 

 

$

4,666

 

 

Changes in electric margin:

(Millions of Dollars)

 

Three Months
Ended Sept. 30,
2020 vs. 2019

 

Nine Months
Ended Sept. 30,
2020 vs. 2019

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

 

$

123

 

 

 

$

158

 

 

Non-fuel riders

 

19

 

 

 

43

 

 

Wholesale transmission revenue (net)

 

10

 

 

 

35

 

 

MEC purchased capacity costs (b)

 

4

 

 

 

35

 

 

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

 

4

 

 

 

12

 

 

PTCs flowed back to customers (offset by lower ETR)

 

(28

)

 

 

(81

)

 

Sales and demand (c)

 

(9

)

 

 

(56

)

 

Other (net)

 

18

 

 

 

7

 

 

Total increase in electric margin

 

$

141

 

 

 

$

153

 

 


Contacts

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

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

Xcel Energy website address: www.xcelenergy.com


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