Xcel Energy Third Quarter 2022 Earnings Report
- Third quarter GAAP diluted earnings per share were $1.18 in 2022 compared with $1.13 in 2021.
- Year-to-date GAAP diluted earnings per share for 2022 were $2.48 compared with $2.38 in 2021.
- Xcel Energy narrows its 2022 EPS guidance range to $3.14 to $3.19 from $3.10 to $3.20.
- Xcel Energy initiates 2023 EPS guidance of $3.30 to $3.40.
MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy Inc. (NASDAQ: XEL) today reported 2022 third quarter GAAP and ongoing earnings of $649 million, or $1.18 per share, compared with $609 million, or $1.13 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.
“Xcel Energy had a strong third quarter – both operationally and financially – which has allowed us to narrow our 2022 earnings guidance to $3.14 to $3.19 per share,” said Bob Frenzel, chairman, president and CEO of Xcel Energy.
“This quarter also saw the passage of the groundbreaking Inflation Reduction Act, whose clean energy provisions will provide significant customer benefit, reduce the cost of the clean energy transition and improve our liquidity through tax credit transferability. As a result of the legislation, the cost of our recently approved 460-MW Sherco Solar project will be reduced by more than 30%. It will also lower the cost of 10,000 MWs of renewables that were approved as part of our Minnesota and Colorado resource plans and further enhance Xcel Energy’s and the region’s competitive advantage due to strong wind and solar resources in our states.”
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.
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US Dial-In: |
(866) 580-3963 |
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International Dial-In: |
(400) 120-0558 |
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Conference ID: |
0230649 |
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 Oct. 27 through 12:00 p.m. CDT on Oct. 31.
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Replay Numbers |
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US Dial-In: |
1 (866) 583-1035 |
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Access Code: |
0230649# |
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 and 2023 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; our ability to recover costs, and our subsidiaries’ ability to recover costs from customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, 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; regulatory changes and/or limitations related to the use of natural gas as an energy source; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters, including as a result of evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.
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) |
||||||||||||||||
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|
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Three Months Ended Sept. 30 |
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Nine Months Ended Sept. 30 |
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|
|
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2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
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Operating revenues |
|
|
|
|
|
|
|
|
||||||||
|
Electric |
|
$ |
3,699 |
|
|
$ |
3,176 |
|
|
$ |
9,255 |
|
|
$ |
8,643 |
|
|
Natural gas |
|
|
357 |
|
|
|
268 |
|
|
|
1,923 |
|
|
|
1,364 |
|
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Other |
|
|
26 |
|
|
|
23 |
|
|
|
79 |
|
|
|
69 |
|
|
Total operating revenues |
|
|
4,082 |
|
|
|
3,467 |
|
|
|
11,257 |
|
|
|
10,076 |
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|
|
|
|
|
|
|
|
|
|
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Operating expenses |
|
|
|
|
|
|
|
|
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Electric fuel and purchased power |
|
|
1,497 |
|
|
|
1,210 |
|
|
|
3,772 |
|
|
|
3,643 |
|
|
Cost of natural gas sold and transported |
|
|
173 |
|
|
|
86 |
|
|
|
1,134 |
|
|
|
603 |
|
|
Cost of sales — other |
|
|
11 |
|
|
|
11 |
|
|
|
32 |
|
|
|
28 |
|
|
O&M expenses |
|
|
611 |
|
|
|
568 |
|
|
|
1,827 |
|
|
|
1,752 |
|
|
Conservation and demand side management expenses |
|
|
86 |
|
|
|
78 |
|
|
|
259 |
|
|
|
222 |
|
|
Depreciation and amortization |
|
|
607 |
|
|
|
537 |
|
|
|
1,807 |
|
|
|
1,586 |
|
|
Taxes (other than income taxes) |
|
|
173 |
|
|
|
152 |
|
|
|
523 |
|
|
|
472 |
|
|
Total operating expenses |
|
|
3,158 |
|
|
|
2,642 |
|
|
|
9,354 |
|
|
|
8,306 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
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Operating income |
|
|
924 |
|
|
|
825 |
|
|
|
1,903 |
|
|
|
1,770 |
|
|
|
|
|
|
|
|
|
|
|
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Other (expense) income, net |
|
|
(15 |
) |
|
|
(3 |
) |
|
|
(20 |
) |
|
|
5 |
|
|
Earnings from equity method investments |
|
|
1 |
|
|
|
13 |
|
|
|
27 |
|
|
|
47 |
|
|
Allowance for funds used during construction — equity |
|
|
20 |
|
|
|
21 |
|
|
|
53 |
|
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
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Interest charges and financing costs |
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|
|
|
|
|
|
|
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Interest charges — includes other financing costs of $8, $7, $24 and $22, respectively |
|
|
244 |
|
|
|
211 |
|
|
|
705 |
|
|
|
628 |
|
|
Allowance for funds used during construction — debt |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(19 |
) |
|
|
(18 |
) |
|
Total interest charges and financing costs |
|
|
237 |
|
|
|
204 |
|
|
|
686 |
|
|
|
610 |
|
|
|
|
|
|
|
|
|
|
|
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Income before income taxes |
|
|
693 |
|
|
|
652 |
|
|
|
1,277 |
|
|
|
1,265 |
|
|
Income tax expense (benefit) |
|
|
44 |
|
|
|
43 |
|
|
|
(80 |
) |
|
|
(17 |
) |
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Net income |
|
$ |
649 |
|
|
$ |
609 |
|
|
$ |
1,357 |
|
|
$ |
1,282 |
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|
|
|
|
|
|
|
|
|
|
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Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
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Basic |
|
|
548 |
|
|
|
539 |
|
|
|
546 |
|
|
|
539 |
|
|
Diluted |
|
|
548 |
|
|
|
539 |
|
|
|
546 |
|
|
|
539 |
|
|
|
|
|
|
|
|
|
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Earnings per average common share: |
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|
|
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|
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Basic |
|
$ |
1.19 |
|
|
$ |
1.13 |
|
|
$ |
2.48 |
|
|
$ |
2.38 |
|
|
Diluted |
|
|
1.18 |
|
|
|
1.13 |
|
|
|
2.48 |
|
|
|
2.38 |
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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 nine months ended Sept. 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 third quarter diluted earnings were $1.18 per share in 2022, compared with $1.13 per share in 2021. The increase was driven by regulatory rate outcomes, partially offset by higher depreciation, interest charges and O&M expenses. Costs for natural gas significantly increased in 2022 due to supply and demand conditions. 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:
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Three Months Ended Sept. 30 |
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Nine Months Ended Sept. 30 |
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Diluted Earnings (Loss) Per Share |
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2022 |
|
2021 |
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2022 |
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2021 |
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PSCo |
|
$ |
0.45 |
|
|
$ |
0.40 |
|
|
$ |
1.02 |
|
|
$ |
0.96 |
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NSP-Minnesota |
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|
0.49 |
|
|
|
0.46 |
|
|
|
0.94 |
|
|
|
0.91 |
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SPS |
|
|
0.25 |
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|
|
0.25 |
|
|
|
0.52 |
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|
|
0.48 |
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NSP-Wisconsin |
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|
0.07 |
|
|
|
0.07 |
|
|
|
0.19 |
|
|
|
0.15 |
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Earnings from equity method investments — WYCO |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.03 |
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Regulated utility (a) |
|
|
1.28 |
|
|
|
1.19 |
|
|
|
2.69 |
|
|
|
2.54 |
|
|
Xcel Energy Inc. and Other |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
|
|
(0.21 |
) |
|
|
(0.16 |
) |
|
Total (a) |
|
$ |
1.18 |
|
|
$ |
1.13 |
|
|
$ |
2.48 |
|
|
$ |
2.38 |
|
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(a) |
Amounts may not add due to rounding. |
PSCo — Earnings increased $0.05 per share for the third quarter of 2022 and $0.06 year-to-date. Higher year-to-date earnings reflect regulatory rate outcomes, partially offset by increased depreciation and O&M expenses.
NSP-Minnesota — Earnings increased $0.03 per share for the third quarter of 2022 and year-to-date. The year-to-date increase is primarily due to regulatory rate outcomes, partially offset by increased depreciation, O&M expenses and a Winter Storm Uri cost disallowance (see Note 5).
SPS — Earnings were flat for the third quarter of 2022 and increased $0.04 per share year-to-date. Higher year-to-date earnings largely reflect regulatory rate outcomes, strong sales growth and favorable weather, partially offset by higher depreciation, O&M expenses and interest charges.
NSP-Wisconsin — Earnings were flat for the third quarter of 2022 and increased $0.04 per share year-to-date. The year-to-date increase is due to regulatory rate outcomes and sales growth, 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. Earnings decreased $0.05 per share year-to-date, largely attributable to higher interest charges.
Components significantly contributing to changes in 2022 EPS compared to 2021:
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Diluted Earnings (Loss) Per Share |
|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
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GAAP and ongoing diluted EPS — 2021 |
|
$ |
1.13 |
|
|
$ |
2.38 |
|
|
|
|
|
|
|
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Components of change – 2022 vs. 2021 |
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Higher electric revenues, net of electric fuel and purchased power |
|
|
0.33 |
|
|
|
0.67 |
|
|
Lower effective tax rate (ETR) (a) |
|
|
0.02 |
|
|
|
0.12 |
|
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Higher natural gas revenues, net of cost of natural gas sold and transported |
|
|
— |
|
|
|
0.04 |
|
|
Higher depreciation and amortization |
|
|
(0.10 |
) |
|
|
(0.30 |
) |
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Higher O&M expenses |
|
|
(0.06 |
) |
|
|
(0.10 |
) |
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Higher interest charges |
|
|
(0.04 |
) |
|
|
(0.10 |
) |
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Higher taxes (other than income taxes) |
|
|
(0.03 |
) |
|
|
(0.07 |
) |
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Lower other (expense) income |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
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Other, net |
|
|
(0.05 |
) |
|
|
(0.13 |
) |
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GAAP and ongoing diluted EPS — 2022 |
|
$ |
1.18 |
|
|
$ |
2.48 |
|
|
(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 in those jurisdictions.
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:
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|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
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|
2022 vs. Normal |
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2021 vs. Normal |
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2022 vs. 2021 |
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2022 vs. Normal |
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2021 vs. Normal |
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2022 vs. 2021 |
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Retail electric |
$ |
0.074 |
|
|
$ |
0.067 |
|
|
$ |
0.007 |
|
$ |
0.123 |
|
|
$ |
0.122 |
|
|
$ |
0.001 |
|
Decoupling and sales true-up |
|
(0.032 |
) |
|
|
(0.035 |
) |
|
|
0.003 |
|
|
(0.055 |
) |
|
|
(0.076 |
) |
|
|
0.021 |
|
Electric total |
$ |
0.042 |
|
|
$ |
0.032 |
|
|
$ |
0.010 |
|
$ |
0.068 |
|
|
$ |
0.046 |
|
|
$ |
0.022 |
|
Firm natural gas |
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.019 |
|
|
|
0.004 |
|
|
|
0.015 |
|
Total |
$ |
0.042 |
|
|
$ |
0.032 |
|
|
$ |
0.010 |
|
$ |
0.087 |
|
|
$ |
0.050 |
|
|
$ |
0.037 |
Sales — Sales growth (decline) for actual and weather-normalized sales in 2022 compared to 2021:
|
|
|
Three Months Ended Sept. 30 |
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|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Actual |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(1.7 |
)% |
|
(2.7 |
)% |
|
7.8 |
% |
|
(0.1 |
) % |
|
(0.7 |
)% |
|
Electric C&I |
|
(2.3 |
) |
|
0.2 |
|
|
7.2 |
|
|
3.7 |
|
|
1.6 |
|
|
Total retail electric sales |
|
(2.0 |
) |
|
(0.8 |
) |
|
7.3 |
|
|
2.6 |
|
|
0.9 |
|
|
Firm natural gas sales |
|
(1.6 |
) |
|
— |
|
|
N/A |
|
|
2.3 |
|
|
(0.9 |
) |
|
|
|
Three Months Ended Sept. 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(4.6 |
)% |
|
0.5 |
% |
|
3.3 |
% |
|
(0.1 |
)% |
|
(1.1 |
)% |
|
Electric C&I |
|
(3.2 |
) |
|
0.4 |
|
|
6.4 |
|
|
3.5 |
|
|
1.2 |
|
|
Total retail electric sales |
|
(3.7 |
) |
|
0.4 |
|
|
5.9 |
|
|
2.5 |
|
|
0.5 |
|
|
Firm natural gas sales |
|
(1.5 |
) |
|
(2.2 |
) |
|
N/A |
|
|
— |
|
|
(1.6 |
) |
|
|
|
Nine Months Ended Sept. 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Actual |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(2.9 |
)% |
|
(1.4 |
)% |
|
4.9 |
% |
|
1.3 |
% |
|
(0.9 |
)% |
|
Electric C&I |
|
(0.3 |
) |
|
2.3 |
|
|
9.6 |
|
|
3.6 |
|
|
3.6 |
|
|
Total retail electric sales |
|
(1.2 |
) |
|
1.1 |
|
|
8.6 |
|
|
2.9 |
|
|
2.2 |
|
|
Firm natural gas sales |
|
(3.4 |
) |
|
19.9 |
|
|
N/A |
|
|
20.2 |
|
|
4.9 |
|
|
|
|
Nine Months Ended Sept. 30 |
|||||||||||||
|
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
|
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
|
Electric residential |
|
(3.7 |
)% |
|
0.6 |
% |
|
0.7 |
% |
|
0.6 |
% |
|
(1.0 |
)% |
|
Electric C&I |
|
(0.5 |
) |
|
2.7 |
|
|
9.0 |
|
|
3.8 |
|
|
3.5 |
|
|
Total retail electric sales |
|
(1.6 |
) |
|
2.0 |
|
|
7.4 |
|
|
2.8 |
|
|
2.2 |
|
|
Firm natural gas sales |
|
(2.4 |
) |
|
6.0 |
|
|
N/A |
|
|
7.4 |
|
|
0.9 |
|
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. C&I sales decline was attributable to decreased use per customer, primarily in the manufacturing sector (largely due to an alternative generation arrangement with a significant customer), partially offset by strong small C&I sales in the professional services and health care sectors.
- NSP-Minnesota — Residential sales growth reflects a 1.2% increase in customers, partially offset by decreased use per customer. 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 growth was primarily attributable to a 1.0% increase in customers, partially offset by lower use per customer. 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 associated with higher use per customer, experienced primarily in the transportation and manufacturing sectors.
Weather-normalized natural gas sales growth (decline) — year-to-date
- Natural gas sales reflect a higher use per customer, experienced primarily in NSP-Minnesota and NSP-Wisconsin, partially offset by a decrease in PSCo (lower residential use per customer). In addition, residential and C&I customer growth was 1.2% and 0.5%, respectively.
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 Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||
|
(Millions of Dollars) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Electric revenues |
|
$ |
3,699 |
|
|
$ |
3,176 |
|
|
$ |
9,255 |
|
|
$ |
8,643 |
|
|
Electric fuel and purchased power |
|
|
(1,497 |
) |
|
|
(1,210 |
) |
|
|
(3,772 |
) |
|
|
(3,643 |
) |
|
Electric margin |
|
$ |
2,202 |
|
|
$ |
1,966 |
|
|
$ |
5,483 |
|
|
$ |
5,000 |
|
|
(Millions of Dollars) |
|
Three Months Ended Sept. 30, 2022 vs. 2021 |
|
Nine Months Ended Sept. 30, 2022 vs. 2021 |
||||
|
Regulatory rate outcomes (Minnesota, Colorado, Texas, New Mexico and Wisconsin) |
|
$ |
165 |
|
|
$ |
361 |
|
|
Revenue recognition for the Texas rate case surcharge (a) |
|
|
— |
|
|
|
85 |
|
|
Sales and demand (b) |
|
|
24 |
|
|
|
84 |
|
|
Non-fuel riders |
|
|
8 |
|
|
|
48 |
|
|
Conservation and demand side management (offset in expenses) |
|
|
9 |
|
|
|
31 |
|
|
Wholesale transmission (net) |
|
|
19 |
|
|
|
25 |
|
|
Estimated impact of weather (net of decoupling/sales true-up) |
|
|
7 |
|
|
|
16 |
|
|
PTCs flowed back to customers (offset by lower ETR) |
|
|
(17 |
) |
|
|
(120 |
) |
|
Proprietary commodity trading, net of sharing (c) |
|
|
(1 |
) |
|
|
(33 |
) |
|
Other (net) |
|
|
22 |
|
|
|
(14 |
) |
|
Total increase |
|
$ |
236 |
|
|
$ |
483 |
|
|
(a) |
Recognition of revenue from the Texas rate case outcome is largely offset by recognition of previously deferred costs. |
|
|
(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 Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||
|
(Millions of Dollars) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Natural gas revenues |
|
$ |
357 |
|
|
$ |
268 |
|
|
$ |
1,923 |
|
|
$ |
1,364 |
|
|
Cost of natural gas sold and transported |
|
|
(173 |
) |
|
|
(86 |
) |
|
|
(1,134 |
) |
|
|
(603 |
) |
|
Natural gas margin |
|
$ |
184 |
|
|
$ |
182 |
|
|
$ |
789 |
|
|
$ |
761 |
|
|
(Millions of Dollars) |
|
Three Months Ended Sept. 30, 2022 vs. 2021 |
|
Nine Months Ended Sept. 30, 2022 vs. 2021 |
||||
|
Regulatory rate outcomes (Minnesota, Wisconsin, North Dakota, Colorado) |
|
$ |
2 |
|
|
$ |
16 |
|
|
Estimated impact of weather |
|
|
— |
|
|
|
11 |
|
|
Conservation revenue (offset in expenses) |
|
|
2 |
|
|
|
9 |
|
|
Infrastructure and integrity riders |
|
|
4 |
|
|
|
7 |
|
|
Winter Storm Uri disallowances (see Note 5) |
|
|
(7 |
) |
|
|
(20 |
) |
|
Other (net) |
|
|
1 |
|
|
|
5 |
|
|
Total increase |
|
$ |
2 |
|
|
$ |
28 |
|
O&M Expenses — O&M expenses increased $43 million for the third quarter and $75 million year-to-date. O&M costs increased due to recognition of previously deferred amounts related to the 2021 Texas Electric Rate Case, additional investments in technology and customer programs, higher costs for storms and vegetation management and inflationary impacts. These increases were partially offset by a reduction in employee benefit costs and timing of certain power plant overhaul costs.
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
