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XCEL ENERGY INC 8-K Report, Material Agreement (Sep 24, 2007)

Reports
Material Agreements
Filing Date
Filed September 24, 2007
Period End
September 21, 2007
Securities
XELXELLL
In the record · 2016–202610-K1110-Q328-K247

XEL filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 247 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed September 24, 2007. Cited figures are marked; the original filing is the authoritative source.

Xcel Energy Inc. has filed an 8-K report detailing the final settlement of a significant tax dispute regarding Corporate-Owned Life Insurance (COLI) policies.

The dispute, primarily involving its subsidiary Public Service Company of Colorado (PSCo), concerned the deductibility of interest expenses on policy loans. The company has agreed to pay the U.S. government $64.4 milliona to resolve claims for tax, penalty, and interest from tax years 1993 through 2007. This settlement effectively resolves years of litigation and uncertainty for Xcel Energy.

The company will pay half of the settlement amount immediately through previously paid or deemed tax and interest, with the remaining $32.2 millionb due by October 31, 2007. Importantly, Xcel Energy will retain the disputed tax treatment for most tax years (1995-2007) and will surrender the COLI policies without recognizing taxable gain, limiting the financial impact beyond the settlement payment.

02—Key points

Key Highlights

  1. Xcel Energy has finalized a settlement with the U.S. government regarding a tax dispute over Corporate-Owned Life Insurance (COLI) policies.
  2. The total settlement amount is $64.4 million, covering tax, penalties, and interest for tax years 1993-2007.
  3. A portion of the settlement ($32.2 million) is satisfied by past tax and interest payments, with the remaining $32.2 million due by October 31, 2007.
  4. Xcel Energy will retain the disputed tax treatment for tax years 1995 through 2007.
  5. The company will surrender the COLI policies by October 31, 2007, without recognizing any taxable gain on the surrender.
  6. The settlement resolves tax litigation that had a potential exposure of approximately $583 million.

03—Questions

Frequently Asked Questions

  1. What was the main issue in this SEC filing?

    The main issue was Xcel Energy's settlement of a tax dispute with the U.S. government concerning the tax treatment of interest expenses on certain Corporate-Owned Life Insurance (COLI) policies held by its subsidiary, Public Service Company of Colorado (PSCo).

  2. How much will Xcel Energy pay to settle this dispute?

    Xcel Energy will pay a total of $64.4 million to the U.S. government to fully settle all claims for tax, penalties, and interest related to these COLI policies for the tax years 1993 through 2007.

  3. When is the settlement payment due?

    Part of the settlement amount, $32.2 million, is satisfied by amounts Xcel Energy has already paid or is deemed to have paid. The remaining $32.2 million is due on or before October 31, 2007.

  4. What happens to the COLI policies after the settlement?

    Xcel Energy is required to surrender the COLI policies to their insurer on or before October 31, 2007. A key benefit of the settlement is that the company will not have to recognize any taxable gain upon surrendering these policies.

04—Continue

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