8-KOther EventsExhibits & Filings

XCEL ENERGY INC 8-K Report, Corporate Update (Aug 8, 2007)

Filed August 8, 2007For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) filed an 8-K on August 8, 2007, to update its previously filed 2006 Form 10-K. The primary purpose of this filing is to retrospectively present PSR Investments, Inc. (PSRI), a subsidiary of Public Service Company of Colorado, as a discontinued operation. This change is a result of a settlement in principle with the U.S. government and Xcel Energy's decision to surrender all corporate-owned life insurance (COLI) policies, following the government's acceptance of the offer. This reclassification impacts several sections of the 2006 Form 10-K, including Selected Financial Data, Management's Discussion and Analysis (MD&A), Market Risk Disclosures, and Financial Statements. Importantly, Xcel Energy states that this retrospective adjustment has no impact on the reported net income for any period. Investors should note that this filing primarily addresses historical financial presentation and should be read in conjunction with the original 10-K and subsequent 10-Q filings.

Key Highlights

  • 1Xcel Energy is retrospectively reclassifying PSR Investments, Inc. (PSRI) as a discontinued operation in its 2006 Form 10-K.
  • 2The reclassification is driven by a settlement in principle with the U.S. government and the surrender of corporate-owned life insurance (COLI) policies.
  • 3Revised financial information, including Selected Financial Data, MD&A, Market Risk, and Financial Statements, are being filed as exhibits.
  • 4This change affects the presentation of PSRI within the consolidated financial statements for all periods presented.
  • 5Xcel Energy explicitly states that this adjustment has no impact on reported net income.
  • 6The filing serves to update historical financial data and should be reviewed alongside the original 10-K and subsequent 10-Q filings.

Frequently Asked Questions

This 8-K filing is to update Xcel Energy's 2006 Form 10-K to present PSR Investments, Inc. (PSRI) as a discontinued operation. This change is due to a settlement with the U.S. government and the company's decision to surrender corporate-owned life insurance policies.

No, Xcel Energy explicitly states that this retrospective adjustment to present PSRI as a discontinued operation has no effect on the company's reported net income for any reporting period.

The filing indicates that the following sections of the 2006 Form 10-K are being adjusted retrospectively: Item 6 (Selected Financial Data), Item 7 (Management’s Discussion and Analysis), Item 7A (Quantitative and Qualitative Disclosures About Market Risk), and Item 8 (Financial Statements and Supplementary Data). The Statement of Computation of Ratio of Earnings to Fixed Charges (Exhibit 12.01) is also revised.

Discontinued operations refer to a component of an entity that has been disposed of or is classified as held for sale. PSRI is being classified as a discontinued operation because Xcel Energy has reached a settlement in principle with the U.S. government and decided to surrender corporate-owned life insurance policies related to it, signaling a clear intent to cease operations associated with this subsidiary.