Xcel Energy Second Quarter 2022 Earnings Report
- Second quarter GAAP diluted earnings per share were $0.60 in 2022 compared with $0.58 in 2021.
- Xcel Energy reaffirms 2022 EPS earnings guidance range of $3.10 to $3.20.
MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy Inc. (NASDAQ: XEL) today reported 2022 second quarter GAAP and ongoing earnings of $328 million, or $0.60 per share, compared with $311 million, or $0.58 per share in the same period in 2021.
Earnings reflect capital investment recovery and other regulatory outcomes, partially offset by higher depreciation, interest expense and operating and maintenance (O&M) expenses.
“We had a solid quarter and as a result we are reaffirming our 2022 earnings guidance of $3.10 to $3.20 per share,” said Bob Frenzel, chairman, president and CEO of Xcel Energy. “We achieved a significant regulatory milestone with approval of our Colorado Electric Resource Plan. Executing this plan and our Power Pathway transmission project will secure affordable, resilient, clean energy for our customers, reducing carbon emissions 85% in the state by 2030, generating 80% of electricity from renewable sources by the same year and retiring all coal generation in the state by Jan. 1, 2031.”
“Xcel Energy was also recently honored with several leadership awards, being inducted into the Climate Leadership Hall of Fame and receiving the Hubert H. Humphrey Public Leadership Award for groundbreaking sustainability goals.”
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: |
(800) 289-0720 |
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International Dial-In: |
(400) 120-9264 |
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Conference ID: |
4087867 |
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 Investors under Company. If you are unable to participate in the live event, the call will be available for replay from 12:00 p.m. CDT on July 28 through 12:00 p.m. CDT on July 31.
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Replay Numbers |
|
|
US Dial-In: |
(888) 203-1112 |
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International Dial-In: |
(719) 457-0820 |
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Access Code: |
4087867 |
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 those relating to 2022 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, and expected impact on our results of operations, financial condition and cash flows of resettlement calculations and credit losses relating to certain energy transactions, 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, 2021 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, including potential workforce impacts resulting from vaccination requirements, quarantine policies or government restrictions, and sales volatility; operational safety, including our nuclear generation facilities and other utility operations; 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; violations of our Codes of Conduct; 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, supply chain constraints and their impact on capital expenditures and/or 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; costs of potential regulatory penalties; and regulatory changes and/or limitations related to the use of natural gas as an energy source.
This information is not given in connection with any sale, offer for sale or offer to buy any security.
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XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions, except per share data)
|
||||||||||||||||
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Operating revenues |
|
|
|
|
|
|
|
|
||||||||
|
Electric |
|
$ |
2,923 |
|
|
$ |
2,597 |
|
|
$ |
5,556 |
|
|
$ |
5,467 |
|
|
Natural gas |
|
|
476 |
|
|
|
449 |
|
|
|
1,566 |
|
|
|
1,096 |
|
|
Other |
|
|
25 |
|
|
|
22 |
|
|
|
53 |
|
|
|
46 |
|
|
Total operating revenues |
|
|
3,424 |
|
|
|
3,068 |
|
|
|
7,175 |
|
|
|
6,609 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
|
Electric fuel and purchased power |
|
|
1,181 |
|
|
|
1,047 |
|
|
|
2,275 |
|
|
|
2,433 |
|
|
Cost of natural gas sold and transported |
|
|
251 |
|
|
|
218 |
|
|
|
961 |
|
|
|
517 |
|
|
Cost of sales — other |
|
|
11 |
|
|
|
9 |
|
|
|
21 |
|
|
|
17 |
|
|
O&M expenses |
|
|
614 |
|
|
|
600 |
|
|
|
1,216 |
|
|
|
1,184 |
|
|
Conservation and demand side management expenses |
|
|
81 |
|
|
|
71 |
|
|
|
173 |
|
|
|
144 |
|
|
Depreciation and amortization |
|
|
638 |
|
|
|
528 |
|
|
|
1,200 |
|
|
|
1,049 |
|
|
Taxes (other than income taxes) |
|
|
179 |
|
|
|
157 |
|
|
|
350 |
|
|
|
320 |
|
|
Total operating expenses |
|
|
2,955 |
|
|
|
2,630 |
|
|
|
6,196 |
|
|
|
5,664 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
469 |
|
|
|
438 |
|
|
|
979 |
|
|
|
945 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other (expense) income, net |
|
|
(6 |
) |
|
|
3 |
|
|
|
(5 |
) |
|
|
8 |
|
|
Earnings from equity method investments |
|
|
11 |
|
|
|
20 |
|
|
|
26 |
|
|
|
34 |
|
|
Allowance for funds used during construction — equity |
|
|
20 |
|
|
|
18 |
|
|
|
33 |
|
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest charges and financing costs |
|
|
|
|
|
|
|
|
||||||||
|
Interest charges — includes other financing costs of $8, $7, $15 and $14, respectively |
|
|
247 |
|
|
|
212 |
|
|
|
461 |
|
|
|
417 |
|
|
Allowance for funds used during construction — debt |
|
|
(7 |
) |
|
|
(6 |
) |
|
|
(12 |
) |
|
|
(11 |
) |
|
Total interest charges and financing costs |
|
|
240 |
|
|
|
206 |
|
|
|
449 |
|
|
|
406 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes |
|
|
254 |
|
|
|
273 |
|
|
|
584 |
|
|
|
613 |
|
|
Income tax benefit |
|
|
(74 |
) |
|
|
(38 |
) |
|
|
(124 |
) |
|
|
(60 |
) |
|
Net income |
|
$ |
328 |
|
|
$ |
311 |
|
|
$ |
708 |
|
|
$ |
673 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
546 |
|
|
|
539 |
|
|
|
545 |
|
|
|
539 |
|
|
Diluted |
|
|
546 |
|
|
|
539 |
|
|
|
546 |
|
|
|
539 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per average common share: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
0.60 |
|
|
$ |
0.58 |
|
|
$ |
1.30 |
|
|
$ |
1.25 |
|
|
Diluted |
|
|
0.60 |
|
|
|
0.58 |
|
|
|
1.30 |
|
|
|
1.25 |
|
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), 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 adjusts 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.
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 for Xcel Energy is calculated by dividing net income or loss, 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 for 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 six months ended June 30, 2022 and 2021, 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 second quarter diluted earnings were $0.60 per share in 2022, compared with $0.58 per share in 2021. The increase was driven by regulatory recovery of capital investment, partially offset by higher depreciation, interest expense and O&M expenses. Costs for natural gas sold and transported significantly increased in 2022 primarily due to market price fluctuations. However, fluctuations in electric and natural gas revenues associated with changes in fuel and purchased power and/or natural gas sold and transported generally do not significantly impact earnings (changes in costs are offset by the related variation in revenues).
Summarized diluted EPS for Xcel Energy:
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||
|
Diluted Earnings (Loss) Per Share |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
PSCo |
|
$ |
0.24 |
|
|
$ |
0.25 |
|
|
$ |
0.56 |
|
|
$ |
0.56 |
|
|
NSP-Minnesota |
|
|
0.22 |
|
|
|
0.21 |
|
|
|
0.45 |
|
|
|
0.45 |
|
|
SPS |
|
|
0.17 |
|
|
|
0.13 |
|
|
|
0.27 |
|
|
|
0.23 |
|
|
NSP-Wisconsin |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.11 |
|
|
|
0.09 |
|
|
Earnings from equity method investments — WYCO |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
Regulated utility (a) |
|
|
0.67 |
|
|
|
0.62 |
|
|
|
1.41 |
|
|
|
1.35 |
|
|
Xcel Energy Inc. and Other |
|
|
(0.07 |
) |
|
|
(0.04 |
) |
|
|
(0.11 |
) |
|
|
(0.10 |
) |
|
Total (a) |
|
$ |
0.60 |
|
|
$ |
0.58 |
|
|
$ |
1.30 |
|
|
$ |
1.25 |
|
|
(a) |
Amounts may not add due to rounding. |
PSCo — Earnings decreased $0.01 per share for the second quarter of 2022 and were flat year-to-date. Year-to-date earnings reflect a Winter Storm Uri cost disallowance (see Note 5) and unrecovered incremental purchased power costs due to the Comanche Unit 3 outage (see Note 4).
NSP-Minnesota — Earnings increased $0.01 per share for the second quarter of 2022 and were flat year-to-date, as regulatory recovery of capital investment was offset by increased depreciation and interest expense.
SPS — Earnings increased $0.04 per share for the second quarter of 2022 and year-to-date, primarily due to regulatory outcomes, strong sales growth and favorable weather.
NSP-Wisconsin — Earnings were flat for the second quarter of 2022 and increased $0.02 per share year-to-date. The year-to-date increase reflects the impact of regulatory rate outcomes, sales growth and favorable weather, partially offset by higher depreciation and O&M expenses.
Xcel Energy Inc. and Other — Primarily includes financing costs at the holding company and earnings from Energy Impact Partners (EIP) funds equity method investments.
Components significantly contributing to changes in 2022 EPS compared to 2021:
|
Diluted Earnings (Loss) Per Share |
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||
|
GAAP and ongoing diluted EPS — 2021 |
|
$ |
0.58 |
|
|
$ |
1.25 |
|
|
|
|
|
|
|
||||
|
Components of change – 2022 vs. 2021 |
|
|
|
|
||||
|
Higher electric revenues, net of electric fuel and purchased power |
|
|
0.26 |
|
|
|
0.34 |
|
|
Lower effective tax rate (ETR) (a) |
|
|
0.06 |
|
|
|
0.10 |
|
|
(Lower) higher natural gas revenues, net of cost of natural gas sold and transported |
|
|
(0.01 |
) |
|
|
0.04 |
|
|
Higher depreciation and amortization |
|
|
(0.15 |
) |
|
|
(0.21 |
) |
|
Higher interest charges |
|
|
(0.05 |
) |
|
|
(0.06 |
) |
|
Higher taxes (other than income taxes) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
|
Higher O&M expenses |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
Lower other (expense) income |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
Other, net |
|
|
(0.03 |
) |
|
|
(0.06 |
) |
|
GAAP and ongoing diluted EPS — 2022 |
|
$ |
0.60 |
|
|
$ |
1.30 |
|
|
(a) |
Includes production tax credits (PTCs) and plant regulatory amounts, which are primarily offset as a reduction to electric revenues. |
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. However, decoupling mechanisms in Colorado and proposed sales true-up mechanisms in Minnesota predominately mitigate the positive and adverse impacts of weather for the electric utility.
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.
Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions:
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||||||||||
|
|
2022 vs. Normal |
|
2021 vs. Normal |
|
2022 vs. 2021 |
|
2022 vs. Normal |
|
2021 vs. Normal |
|
2022 vs. 2021 |
||||||||||||
|
Retail electric |
$ |
0.028 |
|
|
$ |
0.056 |
|
|
$ |
(0.028 |
) |
|
$ |
0.049 |
|
|
$ |
0.055 |
|
|
$ |
(0.006 |
) |
|
Decoupling and sales true-up |
|
(0.013 |
) |
|
|
(0.044 |
) |
|
|
0.031 |
|
|
|
(0.023 |
) |
|
|
(0.041 |
) |
|
|
0.018 |
|
|
Electric total |
$ |
0.015 |
|
|
$ |
0.012 |
|
|
$ |
0.003 |
|
|
$ |
0.026 |
|
|
$ |
0.014 |
|
|
$ |
0.012 |
|
|
Firm natural gas |
|
0.003 |
|
|
|
0.002 |
|
|
|
0.001 |
|
|
|
0.019 |
|
|
|
0.005 |
|
|
|
0.014 |
|
|
Total |
$ |
0.018 |
|
|
$ |
0.014 |
|
|
$ |
0.004 |
|
|
$ |
0.045 |
|
|
$ |
0.019 |
|
|
$ |
0.026 |
|
Sales — Sales growth (decline) for actual and weather-normalized sales in 2022 compared to 2021:
|
|
|
Three Months Ended June 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Actual |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(6.3 |
) % |
|
(5.9 |
) % |
|
6.5 |
% |
|
(3.0 |
) % |
|
(4.2 |
) % |
|
Electric C&I |
|
(1.1 |
) |
|
0.6 |
|
|
11.7 |
|
|
2.5 |
|
|
3.2 |
|
|
Total retail electric sales |
|
(2.8 |
) |
|
(1.4 |
) |
|
10.8 |
|
|
0.9 |
|
|
1.2 |
|
|
Firm natural gas sales |
|
(9.6 |
) |
|
27.3 |
|
|
N/A |
|
|
22.5 |
|
|
2.2 |
|
|
|
|
Three Months Ended June 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(5.0 |
) % |
|
0.9 |
% |
|
(1.6 |
) % |
|
1.3 |
% |
|
(1.7 |
) % |
|
Electric C&I |
|
(0.6 |
) |
|
2.4 |
|
|
10.8 |
|
|
3.7 |
|
|
3.9 |
|
|
Total retail electric sales |
|
(2.1 |
) |
|
2.0 |
|
|
8.6 |
|
|
3.0 |
|
|
2.3 |
|
|
Firm natural gas sales |
|
(6.0 |
) |
|
12.7 |
|
|
N/A |
|
|
11.4 |
|
|
0.2 |
|
|
|
|
Six Months Ended June 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Actual |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(3.7 |
) % |
|
(0.6 |
) % |
|
3.2 |
% |
|
2.0 |
% |
|
(1.0 |
) % |
|
Electric C&I |
|
0.8 |
|
|
3.5 |
|
|
11.0 |
|
|
3.6 |
|
|
4.7 |
|
|
Total retail electric sales |
|
(0.8 |
) |
|
2.2 |
|
|
9.4 |
|
|
3.1 |
|
|
3.0 |
|
|
Firm natural gas sales |
|
(3.6 |
) |
|
22.1 |
|
|
N/A |
|
|
22.2 |
|
|
5.6 |
|
|
|
|
Six Months Ended June 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(3.2 |
) % |
|
0.7 |
% |
|
(0.8 |
) % |
|
1.0 |
% |
|
(1.0 |
) % |
|
Electric C&I |
|
1.0 |
|
|
4.1 |
|
|
10.4 |
|
|
3.9 |
|
|
4.8 |
|
|
Total retail electric sales |
|
(0.4 |
) |
|
3.0 |
|
|
8.2 |
|
|
3.0 |
|
|
3.1 |
|
|
Firm natural gas sales |
|
(2.5 |
) |
|
6.9 |
|
|
N/A |
|
|
8.3 |
|
|
1.2 |
|
Weather-normalized electric sales growth (decline) — year-to-date
- PSCo — Residential sales declined due to decreased use per customer, partially offset by a 1.1% increase in customers. The growth in C&I sales was due to a 1.1% increase in customers, primarily in the professional services and retail sectors.
- NSP-Minnesota — Residential sales growth reflects a 1.2% increase in customers, partially offset by decreased use per customer. The growth in C&I sales was primarily due to higher use per customer, particularly in the manufacturing, real estate and leasing, and food service sectors.
- SPS — Residential sales declined due to a lower use per customer, partially offset by a 1.0% increase in customers. C&I sales increased due to higher use per customer, primarily driven by the energy sector.
- NSP-Wisconsin — Residential sales growth was driven by a 0.7% increase in customers. C&I sales growth was primarily due to higher use per customer, primarily from increases in the manufacturing and transportation sectors.
Weather-normalized natural gas sales growth (decline) — year-to-date
- Natural gas sales reflect a higher customer use, primarily in NSP-Minnesota and NSP-Wisconsin, as well as a 1.2% increase in residential customers and a 0.5% increase in C&I customers.
Electric Margin — Electric margin is presented as electric revenues less electric fuel and purchased power expenses. Expenses incurred for electric fuel and purchased power are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.
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 generally have minimal earnings impact due to fuel recovery mechanisms that recover fuel expenses. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes.
Electric revenues, fuel and purchased power and margin and explanation of the changes are listed as follows:
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||
|
(Millions of Dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Electric revenues |
|
$ |
2,923 |
|
|
$ |
2,597 |
|
|
$ |
5,556 |
|
|
$ |
5,467 |
|
|
Electric fuel and purchased power |
|
|
(1,181 |
) |
|
|
(1,047 |
) |
|
|
(2,275 |
) |
|
|
(2,433 |
) |
|
Electric margin |
|
$ |
1,742 |
|
|
$ |
1,550 |
|
|
$ |
3,281 |
|
|
$ |
3,034 |
|
|
(Millions of Dollars) |
|
Three Months Ended June 30, 2022 vs. 2021 |
|
Six Months Ended June 30, 2022 vs. 2021 |
||||
|
Regulatory rate outcomes (Minnesota, Colorado, Texas, New Mexico and Wisconsin) |
|
$ |
124 |
|
|
$ |
187 |
|
|
Revenue recognition for the Texas rate case surcharge (a) |
|
|
85 |
|
|
|
85 |
|
|
Sales and demand (b) |
|
|
38 |
|
|
|
60 |
|
|
Non-fuel riders |
|
|
7 |
|
|
|
41 |
|
|
Conservation and demand side management (offset in expense) |
|
|
9 |
|
|
|
22 |
|
|
Estimated impact of weather (net of decoupling/sales true-up) |
|
|
2 |
|
|
|
9 |
|
|
PTCs flowed back to customers (offset by lower ETR) |
|
|
(50 |
) |
|
|
(103 |
) |
|
Proprietary commodity trading, net of sharing (c) |
|
|
(8 |
) |
|
|
(33 |
) |
|
Comanche Unit 3 outage unrecovered purchased power cost (see Note 4) |
|
|
(8 |
) |
|
|
(18 |
) |
|
Other (net) |
|
|
(7 |
) |
|
|
(3 |
) |
|
Total increase |
|
$ |
192 |
|
|
$ |
247 |
|
|
(a) |
Recognition of revenue from the Texas rate case outcome is largely offset by recognition of previously deferred costs. See Note 4 for additional information. |
|
(b) |
Sales excludes weather impact, net of decoupling in Colorado and proposed sales true-up mechanism in Minnesota. |
|
(c) |
Includes $27 million of net gains recognized in the first quarter of 2021, driven by market changes associated with Winter Storm Uri. |
Natural Gas Margin — Natural gas margin is presented as natural gas revenues less the cost of natural gas sold and transported. Expenses incurred for the cost of natural gas sold are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.
Natural gas revenues, cost of natural gas sold and transported and margin and explanation of the changes are listed as follows:
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||
|
(Millions of Dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Natural gas revenues |
|
$ |
476 |
|
|
$ |
449 |
|
|
$ |
1,566 |
|
|
$ |
1,096 |
|
|
Cost of natural gas sold and transported |
|
|
(251 |
) |
|
|
(218 |
) |
|
|
(961 |
) |
|
|
(517 |
) |
|
Natural gas margin |
|
$ |
225 |
|
|
$ |
231 |
|
|
$ |
605 |
|
|
$ |
579 |
|
|
(Millions of Dollars) |
|
Three Months Ended June 30, 2022 vs. 2021 |
|
Six Months Ended June 30, 2022 vs. 2021 |
||||
|
Regulatory rate outcomes (Minnesota, Wisconsin, North Dakota, Colorado) |
|
$ |
(3 |
) |
|
$ |
14 |
|
|
Estimated impact of weather |
|
|
1 |
|
|
|
11 |
|
|
Other (net) |
|
|
(4 |
) |
|
|
1 |
|
|
Total (decrease) increase |
|
$ |
(6 |
) |
|
$ |
26 |
|
O&M Expenses — O&M expenses increased $14 million for the second quarter and $32 million year-to-date. O&M costs increased due to recognition of previously deferred amounts related to the Texas Electric Rate Case, additional investments in technology and customer programs and higher costs for storms and vegetation management. These increases were partially offset by a reduction in employee benefit costs and timing of certain power plant overhaul costs.
Depreciation and Amortization — Depreciation and amortization increased $110 million for the second quarter and $151 million year-to-date. The increase was primarily driven by several wind farms going into service, normal system expansion and recognition of previously deferred costs related to the Texas Electric Rate Case.
Other (Expense) Income — Other (expense) income decreased $9 million for the second quarter and $13 million year-to-date, largely related to rabbi trust performance, which is primarily offset in O&M expenses (employee benefit costs).
Interest Charges — Interest charges increased $35 million for the second quarter and $44 million year-to-date, largely due to increased long-term debt levels to fund capital investments and deferred balances related to Winter Storm Uri.
Income Taxes — Effective income tax rate:
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 vs 2021 |
|
2022 |
|
2021 |
|
2022 vs 2021 |
||||||
|
Federal statutory rate |
|
21.0 |
% |
|
21.0 |
% |
|
— |
% |
|
21.0 |
% |
|
21.0 |
% |
|
— |
% |
|
State tax (net of federal tax effect) |
|
5.2 |
|
|
4.9 |
|
|
0.3 |
|
|
5.0 |
|
|
4.9 |
|
|
0.1 |
|
|
(Decreases) increases: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Wind PTCs (a) |
|
(48.3 |
) |
|
(33.1 |
) |
|
(15.2 |
) |
|
(40.4 |
) |
|
(28.4 |
) |
|
(12.0 |
) |
|
Plant regulatory differences (b) |
|
(5.5 |
) |
|
(6.6 |
) |
|
1.1 |
|
|
(5.1 |
) |
|
(6.3 |
) |
|
1.2 |
|
|
Other tax credits, net operating loss & tax credits allowances |
|
(1.4 |
) |
|
(1.0 |
) |
|
(0.4 |
) |
|
(1.5 |
) |
|
(1.1 |
) |
|
(0.4 |
) |
|
Other (net) |
|
(0.1 |
) |
|
0.9 |
|
|
(1.0 |
) |
|
(0.2 |
) |
|
0.1 |
|
|
(0.3 |
) |
|
Effective income tax rate |
|
(29.1 |
) % |
|
(13.9 |
) % |
|
(15.2 |
) % |
|
(21.2 |
) % |
|
(9.8 |
) % |
|
(11.4 |
) % |
Contacts
Paul Johnson, Vice President – Treasurer & 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
