XceI Energy. FERC account The first of the two summary reports provides the expenses recorded

Transcription

1 VARIANCE EXPLANATIONS

2 XceI Energy Variance Explanations This section contains explanations for significant changes between the 2012 actual and 2014 budget operating and maintenance expenses shown by FERC account for the NSPM Company electric utility The explanations are aggregated to include each business areas activities that contributed variance within the specific FERC account of at least $ and at least 5% over the two-year period These explanations cover the variances shown in Schedule of the budget documentation The first report within this section is titled Summary Report This high-level report summarizes the NSPM Company electric utilitys operating and maintenance expenses by FERC account function This report subtotals the expenses recorded within the functional FERC accounts Production and Power Supply Transmission Regional Market and Distribution and also subtotals the expenses recorded to Customer Sales and Administrative and General accounts The report includes the respective change and the percentage change over the two-year period for each of the account groups Two additional summary reports provide the operating and maintenance expenses by FERC account The first of the two summary reports provides the expenses recorded within the functional FERC accounts The second report provides summary of the expenses recorded within the Customer Sales and Administrative and General FERC accounts Together these two reports summarize the total NSPM Company electric utility expenses by account for the 2012 actual and 2014 budget periods The two reports also include the respective change and the percentage change over the two-year period for the accounts Variance explanation reference numbers have been included on the two summary reports to be used as key to the respective accounts variance explanations respective variance explanation report follows each of the two additional summary reports within this section The variance explanation reports include the variance explanations reference number the FERC account number the variance explanation and the two-year variance amount In addition offsetting variance amounts that have been budgeted to other FERC accounts are indicated on this report Finally the net remaining variance amount reflected under the FERC account being explained is identified

3 Summary Report 2012 Actual vs 2014 Budget and Maintenance by FERC Operating Account NSP-MN Electric Electric OM Customer Sales AG Expenses Summary of 2014 Budget versus 2012 Actuals Production and Power Supply Expenses Actuals 2012 Budget 2014 Change Change % Transmission Expenses % Regional Market Expenses Distribution Expenses Total Electric Functional OM % % % Total Customer Sales Expense Total Administrative General Expenses Total Customer Sales Administrative General % % % Total %

4 Functional FERC Variance Explanations Actual Budget 2012 vs 2014 Operating and Maintenance by FERC Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals 2012 Actuals Change Change Ref Steam Power Generation Operation Supervision Engineering 17.7% Stm Gen Fuel -50.2% Steam Expenses 40.1% Steam from Other 0.0% Sources Steam Transferred-Cr 0.0% Electric Expenses -41.4% Misc Steam Power Expenses % Rents % Steam Oper Supplies Expense 0.0% Allowances 0.0% Maintenance Supervision Engineering 0.5% Maintenance of Structures -56.6% Maintenance of Boiler Plant 16.5% Maintenance of Electric Plant -50.9% Maintenance of Misc Steam 8.3% Plant Steam Maintenance of Steam Prod 0.0% Plant Total Steam Power Generation % Expenses Nuclear Power Generation 517 Nuc Oper Super Eng 519 Nuclear coolants Wtr % % Nuclear Steam Expense 523 Nuclear Electric Expense % % Nuclear Power Misc Exp % Nuclear Gee Rents % 528 Nuc Maint Super Eng 529 Nuc Maint of Structures 530 Nuc Mtc React PIt Equip of % % % Nuc Maint of Elect Plant 532 Nuc Mtc Misc Nuc Plant of % % Total Nuclear Power Generation Expenses % Hydraulic Power Generation Operation Supervision Engineering % 17 Water for Power 17 Hydraulic Expenses % Electric Expenses % Misc Hydraulic % Power Generation Expenses Rents % Maintenance % of Supervision Engineering Maintenance of Structures Maintenance of Reservoirs Dams Waterways % Maintenance of Electric Plant % Maintenance of Misc Hydraulic % Plant Total Hydraulic Power Generation Expenses % Other Power Generation Operation Supervision Engineering % th Oper Fuel Generation Expenses % Misc Other Power Generation Expenses % Rents % Maintenance Supervision Engineering % Maintenance of Structures % Maintenance of Generating Electric Plant % 554 Maintenance of Misc Other Power Generation % Plant Totat Other Power Generation Expenses % Other Power Supply Expenses 556 System Control Load Dispatching % 557 Other Expenses % 24 Total Other Power Supply Expenses % Total Power Production Expenses % Page of

5 FERC-Based Electric OM Analysis Functional FERC Variance Explanations 2012 Actual vs 2014 Budget Operating and Maintenance by FERC Account NSP-MN Electric 2014 Budget versus 2012 Actuals 2012 Actuals 2014 Budciet Change %Change Ref Transmission Expenses 560 Operation Supervision Engineering % Load Dispatching 0.0% Load Dispatch-Reliability % Load Dispatch-Monitor and Operate Transmission System % Load Dispatch-Transmission Service Scheduling % Scheduling System control Dispatching Services 0.0% Reliability Planning and Standard Development % Transmission Service Studies % Generation Interconnection Studies % Rel/Plan/Standards Development Services 562 Station Expenses 563 Overhead Lines Expense % -15.1% 4.2% Underground Lines Expense 565 Transmission of Electricity by Others 566 Misc Transmission Expenses % Rents 568 Maintenance Supervision Engineering 569 Maintenance of Structures 570 Maintenance of Station Equipment % -36.6% 42.1% Maintenance of Overhead Lines % Maintenance of Underground Lines % 573 Maintenance of Misc Transmission Plant % 35 Total Transmission Expenses % Regional Market Expenses Operation Supervision Day-Ahead Real-Time Market Admin Transmission Rights Market Admin Ancillary Mkt Admin Serv Mkt Monitoring/Compliance % -9.8% -14.6% -19.7% -6.4% Market Administration Monitoring Compi Srvc 0.0% Rents % Total Regional Market Expenses % Distribution Expenses 580 Operation Supervision Engineering Dispatching 581 Load % 10.0% Station Expenses % Overhead Lines Expense 584 Underground Lines Expense % 35.9% Street Lighting Signal System Expenses 586 Meter Expenses % 33.9% Customer Installations Expenses % Misc Expenses % Rents % 590 Maintenance Supervision Engineering % Maintenance of Structures 0.0% 592 Maintenance of Station Equipment 593 Maintenance of Overhead Lines % 15.9% Maintenance of Underground Lines % Maintenance of Line Transformers 596 Maintenance of Street Lighting Signal Systems % -5.9% Maintenance of Meters 598 Maintenance of Misc Distribution Plant % -83.0% Total Distribution Expenses Total Electric Functional OM % % Page2of2

6 Variance Explanations 2012 Actual vs 2014 Budget and Maintenance by FERC Operating Account NSP-MN Electric FERC-Bssed Electric OM Analysis 2014 Budget versus 2012 Actusls Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance 500 Operation Supervision Engineering The 2014 budgel includes $476K for obsolete inventory write-offs in FERC 500 but actual writeoffs are charged to specific FERC accounts when they occur Increased headcount at ASKing advance hire for retirements $272K and an increase in budgeted costs for the 499 4g9 Plant Engineering and Technical Services group This group was formed in 2011 and was in transition during 2012 and has additional funding for training and headcount increases advance hire for retirements and additional staff needed for environmental compliance $227K Other Total 500 Operation Supervision Engineering Steam Expenses in Increase chemical based as average which was higher than 2012 $1.3M increase lime and mercury sorbent year historical in on usage at Sherco due to overhaul and turbine failure 2011 which resulted less usage in 2012 $3.3M Unit in in higher lime usage and prices at Red Wing $24gK Increased labor costs in the 2014 budget as FERC 502 is used to budget labor associated with steam generation operations activities although actual labor may be incurred in other FERC accounts such as FERC 505 $2.5M and increased air emission fees at Black Dog and King of $551 which are offset in FERC 921 Prior to environmental services reorganization these fees were charged to FERC 921 but now they are part of the plant budgets and charged to their respective FERC accounts such as FERC and 549 Other gi gi Total 502 Steam Expenses Electric Expenses Net $2.5M decrease which is offset in FERC 502 where labor is budgeted associated with steam generation operationa The $2.5M net decrease consists of two items Labor Non-Company Labor Consulting and Contract Outside Vendor coats decreased $7M from 2012 to the 2014 budget due to differences in the FERC account used for actual coats compared to budget and additional Sherco coats related to Unit This coat decreaae is offaet by coat increase due to $4.5M credit in 2012 for an insurance reimbursement for various Sherco Unt OM costa incurred in this account and other FERC accounts Increase for sulfuric acid at Sherco in the 2014 budget related to Unit being down in 2012 $501K Other Total 505 Electric Expenses Misc Steam Power Expenses Higher labor non-company labor and material coats at Sherco due to change in scope of work in 2014 with in being in higher more maintenance performed 2012 which offset FERCa $1.4M Black Dog is by through labor coats are budgeted to FERC 506 offset actuala coming FERC 512 and 513 $1.4M Increase in training and additional headcount for Plant Engineering and Technical Services which was formed in and was in transition during 2012 $873K operations work at King in 2014 $629K and increase in utility costa of $565K Electric and Gas usage sewer maintenance primarily due to increased generiion expected in 2014 These coat increases are offset by the 2012 King reclamation write-off of $2.4M Other Total 506 Misc Steam Power Expenses Maintenance of Structures Decrease in costs in the 2014 budget is due to change in scope of work between years at AS King with an offset FERC 512 $1.IM The change scope of work at Sherco between maintenance and in in is operations type activities with offsets in FERCa 502 and 506 $1 am and special construction change in scope of work between years with primary offset in FERC 512 $1.1M at Reduction Sherco due to the unit overhaul in 2012 of $500K Other Total 511 Maintenance of Structures Maintenance of Boiler Plant Variance due to A.S King increased overhaul work scope $7.4M including $1.5M for 10 year generator sgoo inspection Increase in base labor coats in the 2014 budget due to differences in FERC account for budget as partially to actual compared in FERC Sit 513 and 514 $1.7M $800K turbine expenses see offsetting impact overhaul for unit at Red Wing in the 20t4 budget by lower scope These increases are offset of unit in unit in to Finally overhaul at Black Dog than 2012 and no overhaul 2014 compared 2012 $1 SM reduced unit in to unit in scope overhaul of Sherco 2014 compared overhaul 2012 reduces coat $2.SM Other Total 512 Maintenance of Structures Maintenance of Electric Plant Decrease overhaul costs at in AS King as 2014 overhauls are budgeted to FERC 5t2 although certain overhaul related coats 2012 were charged to FERC 513 $0.7M Reduced scope and no overhaul at Black in unit unit in Dog 2014 budget $i.3m No Sherco unit overhaul in 2014 budget $3.iM Other Total 513 Maintenance of Electric Plant Page of

7 Variance Explanations 2012 Actual vs 2014 Budget Operating and Maintenance by FERC Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance 514 Maintenance of Misc Steam Plant Increase in 2014 budget Sherco related costs due to unit being down in 2012 slim and higher maintenance costs than in 2012 $568k Other 284 Total 514 Maintenance of Misc Steam Plant Nuc Oper Super Enci Decrease due to lower annual incentive costs due to the 2014 budget reflecting 100% target levels vs actuals being accrued at higher than target levels $1.6M partially offset by higher restricted stock unit $475K performance share plan $193K and employee performance recognition costs $41K Business System cost decrease was driven by July Dec 2012 Application Development and Maintenance ADM and Distributed Systems Support DSS and network costs being allocated following Xcel Energy labor and beginning January 2013 costs are charged to application-specific work orders which are then allocated to the operating companies using each application Net decrease is offset by FERC 921 increase Nuclear Non-Outage cost increase of $3.431M due to $4.6M due to higher labor costs resulting from increased headcounts staff the and help excellence 155 higher in 2014 than the 2012 to fully average in total plants merit increase achieve the and increased performance OM vs capital work program $2.1M lower contractor/consulting Island P1 craft labor costs due to forced outages at Monticello MT in fourth of 2012 and Prairie quarter moving to company labor in late 2012 offset by higher inspection preparatio costs security and ISI-ANII as well as Pathway 2014 the lower costs are somewhat offset other completion in contractor/consulting in total FERC accounts and 530 $0.3M due to planned 2014 System Health Reporting $170K software purchase partially offset by 2012 purchase for WedEOC $90K software 1K higher software maintenance $21 programs at lower employee expenses offset P1 5139K FERCs 524 and 530 costs for number of software in $675K increase due to higher fees primarily EPRI and BWROG Nuclear Outage $1.657M Higher outage amortization costs at both P1 and MT due to the extended outages in 1657 late 2012/early 2013 at P1 spring 2013 EPU and MT and fall 2013 SGR at P Other Total 517 Nuc Oper Super Eng Nuclear Coolants Water Nuclear Non-Outage $902K Due to 5500K of increased labor costs resulting from increased headcounts to staff average plants and merit increases help achieve and increased the performance OM excellence vs program work $400K 155 higher in 2014 the 2012 costs offset in the than capital higher contract/consulting FERC accounts and 532 $200K decreased chemical costs at MT 5230K increase due to higher fees at P1 Nuclear Outage $367K Higher outage amortization costs at both P1 and MT due to the extended outages in late EPU and MT and 2013 SGR at P1 2012/early 2013 at P1 spring fall Other Total 519 Nuclear Coolants Water Nuclear Steam Expense Nuclear Non-Outage $4.195M $4.2 higher labor costs resulting from increased headcounts to fully staff the plants and help achieve the 321 initiative 155 higher in 2014 than the 2012 average merit increases and increased OM vs capital work $1.2M lower contractor/consulting costs due to forced outages MT at in the fourth quarter of 2012 and P1 craft labor moving to company labor in late 2012 partially offset by higher inspection preparation costs security and ISI-ANII as well Pathway completion in 2014 the lower total contractor/consulting costs are somewhat offset in other FERC accounts and 530 $700K higher material costs offset in other FERC accounts and 532 $1 49K lower rent expense at P1 primarily due to Praxair Hydrogen costs assumed to 2014 due and Rad Waste Luhman eliminated to purchase storage in planned capital be rental in no anticipated in costs 2012 with additional costs 2014 Nuclear Outage $5631 Higher outage amortization costs at both P1 and MT due to the extended outages in late 2012/early 2013 at P1 spring 2013 EPU and MT and fall 2013 SGR at P1 Business System cost decrease was driven by July Dec 2012 Application Development and Maintenance ADM and Distributed Systems Support DSS and network costs being allocated following Xcel Energy labor and beginning January 2013 costs charged to application-specific work orders which are then allocated to are the operating companies using application Net is offset by 921 increase each decrease FERC Other Nuclear Generation Total 520 Nuclear Steam Expense Nuclear Electric Expense Nuclear Non-Outage cost increased due to due to labor costs from increased headcounts 155 higher 2014 than $688K the 2012 $0.9M average in higher total merit increase and resulting increased OM vs capital 200 in work $0.2M lower contractor/consulting costs due 102 forced outages at MT in 4012 and craft labor moving P1 to company labor late 2012 partially offset by higher inspection prep costs security and ISI-ANII as well as in Pathway completion in 2014 the total lower contractor/consulting costs are offset in other somewhat FERC accounts and 530 Other Total 523 Nuclear Electric Expense Page of

8 Variance Explanations 2012 Actual vs 2014 Budget Operating and Maintenance by FERC Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance 524 Nuclear Power Misc Exp Increased labor and employee expenses in Human Resources due to additional Nuclear Support which specializes in recruiting nuclear employees creating more inclusive and engaged workforce and developing management to reduce turnover Nuclear cost increased $ M due to due to labor costs from increased headcounts Non-Outage 155 higher 2014 than the 2012 $8.2M average in total higher merit increase and increased resulting OM capital in vs work $4.4M higher contractor/consulting costs offset other FERC accounts and 532 in $0.8M material costs offset other FERC accounts and 532 $266K software higher higher in 531 license costs due to the purchase of the Devonway software license purchases $218K primarily higher software maintenance costs primarily due to cost related to number of different software programs at P1 $1.1M higher employee expenses primarily due to higher relocation costs higher per diems associated with outage support at other sites P1 has outage vs outages and higher costs related to the additional headcounts $442K lower rent costs due to reduced printer/copier needs resulting from the completion of the EPU project $2.9M due to higher dues donations and fees primarily FEMNEP INPO and NEI Nuclear Outage $2.839M- Higher outage amortization costs at both P1 and MT due to the extended outages in late /early 2013 at P1 spring 2013 EPU and MT and fall 2013 SGR at P1 Other Total 524 Nuclear Power Misc Exp Nuclear Maint of Structures Nuclear Non-Outage costs decreased $51 OK due to $161 lower contractor/consulting costs due to forced outages at MT in 4012 and P1 craft labor moving to labor in late 2012 offset higher inspection company partially by in 2014 the total lower prep costs security and ISI-ANII as well as Pathway completion contractor/consulting tower materials costs are somewhat offset in other FERC accounts and 530 $318K due to costs related number of 2012 maintenance at P1 not to reoccur 2014 primarily to projects anticipated in Nuclear FERC Outage costs decreased $129K The lower outage amortization costs are offset by higher costs in other sccounts 14 Other Total 529 Nuclear Maint of Structures Nuclear Mtc of React PIt Equip Nuclear Non-Outage cost increased $2.024M due to $2.OM due to higher labor costs resulting from increased headcounts 155 higher 2014 than the 2012 average in total merit increase and increased OM capital in vs work $1 80K higher contractor/consulting costs offset other FERC accounts and 532 in $1 90K lower material costs primarily related to number of 2012 maintenance projects at not anticipated to P1 reoccur in 2014 Nuclear Outage costs increased $13.418M due to higher outage amortization costs at both P1 and MT due to the extended outages in late 201 2/early 2013 at P1 spring 2013 EPU and MT and fall 2013 SGR at P1 Business System cost decrease was driven by July Dec2012 Application Development and Maintenance ADM and Distributed and network costs allocated Xcel Systems Support DSS being following Energy labor and beginning January 2013 costs charged to application-specific work orders which are are then allocated to the operating companies using application Net is offset by 921 increase each decrease FERC Other Total 530 Nuclear Mtc of React Pit Equip Nuclear Maint of Elect Plant Nuclear Non-Outage cost decreased $1 228M due to $461 lower contractor/consulting costs due to forced outages at MT in 4012 and P1 craft labor moving to company labor in late 2012 partially offset by higher inspection prep costs security and ISI-ANII as well as Pathway completion in 2014 the total lower contractor/consulting costs are somewhat offset in other FERC accounts and 530 $739K due to lower materials costs primarily related to number of 2012 maintenance projects at P1 not anticipated to reoccur in 2014 Nuclear Outage costs increased $822K due to higher outage amortization costs at both P1 and MT due to the EPU and MT and 2013 SGR at P1 fall extended outages in late 2012/early 2013 at P1 spring Other Total 531 Nuclear Mtc of Elect Plant Nuclear Mtc of Misc Nuc Plant Nuclear Non-Outage costs increased $982K due to $3.9M due to labor costs from increased headcounts 155 higher in 2014 than higher the 2012 average in total merit increase and resulting increased OM capital vs work $1.9M lower contractor/consulting costs due to forced outages at MT in 4Q12 and craft labor moving P1 to company labor late 2012 partially offset by higher inspection prep Costs security and ISI-ANII as well as in completion in total offset in other Pathway 2014 the lower contractor/consulting costs are somewhat FERC accounts and 530 $1.3M due to lower material costs primarily related to number of 2012 maintenance at P1 not to reoccur 2014 lower costs somewhat offset projects anticipated in total the are in other FERC accounts 520 and 524 $222K in higher software maintenance costs for number of P1 related software Nuclear Outage costs increased $8.457M due to higher outage amortization costs at both P1 and MT due to the extended outages in late 2012/early 2013 at P1 spring 2013 EPU and MT and fall 2013 SGR at P1 Other Total 532 Nuclear Mtc of Misc Nuc Plant Page of

9 18 Variance Explanations Actual Budget 2012 vs 2014 Operating and Maintenance by FERC Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance 546 Operation Supervision Engineering Increased 2014 budgeted costs for the Plant Engineering and Technical Services for training and headcount increases advance hire for retirements and additional needed for environmental compliance $288K The 2014 budget also includes $1 94K in expenses for obsolete inventory wnte-offs in FERC 546 but actual writeoffs are charged to specific FERC accounts when they occur It also includes higher labor for Riverside but the actuals for 2012 were incurred in other FERCs primarily in FERC 548 $335K Other Total 546 Operation Supervision Engineering Generation Expenses Primarily due to increase in labor and non-labor costs at Angus Anson Black Dog and High Bridge driven by actual costs in 2012 being incurred in different FERC accounts FERC 552 and 553 than budgeted and Riverside and Nobles actuals incurred FERC 548 but budgeted FERCa 546 and 554 in primarily in 19 Other Total 548 Total Generation Expenses Misc Other Power Generation Expenses Increase due to higher maintenance and repair Costs with the Nobles warranty period ending $403K High Bridge budgeted more operations work in 2014 compared to higher maintenance work in in other 754 FERCs $290K Riverside has higher budgeted operations spending than 2012 which is offset in other FERCs and maintenance FERCs $464K is shift There between FERC 549/920 to 557 for total labor This is due to switch to Owned aseta from Purchased Power for agreements our resource plans less expense associated Legal costs decreased due to with employee and corporate related matters FCC litigation licensing general estate contract reviews real and Offset FERC 920 in Other 20 Total 549 Misc Other Power Generation Expenses Maintenance of Structures to Decrease primarily due certain costs budgeted in different FERC account in 2014 than 2012 actuals see offsets in FERC5 548 and 553 Other Total 552 Maintenance of Structures Maintenance of Generating Electric Plant Decrease primarily due to budget in FERC 548 for Black Dog and High Bridge but actuals come through FERC $1.9M and Grand Meadows actuals coming through FERC 549 budgeted in FERC 553 $376k Other Total 553 Maintenance of Generating Electric Plant Maintenance of Misc Other Power Generation Plant Increase due to Nobles Wind maintenance materials and off warranty inspection costs included in 2014 budget were incurred 2012 so in $1.5M These costs were previously covered by warranty not Other Total 554 Maintenance of Misc Other Power Generation Plant Other Expenses shift between FERC 549/920 to 557 for total labor due to switch to Owned assets from Purchased Power agreements for our resource plans The supplemental incentive plan costs for the trading group within Commercial Operations was reduced by $593K from 2012 to 2014 Other Total 557 Other Expenses Operation Supervision Engineering Decrease due to tower annual incentive costs due to the 2014 budget reflecting 100% actuals being accrued at higher than target levels target levels vs Shifts between FERC accounts as result of changing charge-out of various ADM DSS and network costs following labor for part of 2012 to specific allocations for each application based on usage Net decrease is offset by FERC 921 increase Transmission business area costs increased $1003 due to the following $270K increase in studies for planning and compliance $522K headcount and craft employee increases Field voltage regulation merit in Operations to meet maintenance inspection and compliance requirements and further support capital construction $429K Engineering labor increases for System Communication function and increases for System Protection Engineering consulting Engineering $285K increased System Protection for FERC Order 754 Data in Request system performance following loss of single bulk electric system element compliance audit follow-up NERC from 2013 and Computer-Aided Protection Engineering CAPE Relay checking $362K increased headcount for common and address NERC $178K System Sustainability to support vulnerability system increased requirements increase for consulting for Transmission VP for business process improvements $431 reduction due to labor reclassification in Substation Operations and Maintanance from FERC 560 in to FERC $639K reduction due to labor reclassification System Operations from FERC 560 in 2012 FERC in 2014 Other Total 560 Operation Supervision Engineering Page of

10 Variance Explanations Actual Budget 2012 vs 2014 Operating and Maintenance by FERC Account NSP.MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuate Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance Load Dispatch-Monitor and Operate Transmission System Transmission System Operations reclassified costs from FERC 560 to more accurately reflect the business function of the control center plus increased costs for training and compliance Business System cost increase driven by two years of 4% contractual increases on existing software agreements increased demand due to enterprise system upgrades and replacement projects requiring software maintenance Also there was staff augmentation for three projects in 2014 Critical Infrastructure Perimeter Integrated Energy Management and Spectrum System enhancement Other Total Load Dispatch-Monitor and Operate Transmission System Reliability Planning and Standard Development and travel costs for FERC Order 1000 Consulting which has new requirements for regional planning and inter regional planning and competition $75K Merit increases for Transmission Planning and Business Relations $26K Other Total Reliability Planning and Standard Development Transmission Service Studies Non-recurring service studies for Engineering in 2012 $41K reduction to Generation interconnection studies that were reclassified to FERC in 2014 from FERC in 2012 $81K 28 Other Total Transmission Service Studies Generation Interconnection Studies Generation Interconnection studies were reclassified to FERC in 2014 from FERC in 2012 due to better alignment with the FERC account definition of the costs These reimbursable costs were also estimated higher than the 2012 levels which were lower than expected Other 29 Total Generation Interconnection Studies Station Expenses Non-recurring Substation activities and reclassification to FERC 570 in 2014 from FERC 562 in Other Total 562 Station Expenses Overhead Lines Expense $181 for License Fees and Permits for StreeuRailroad permits/dot Permits/Trust indenture/land managemenuland sales which is driven by cumulative system growth Merit increases for Siting and Land Rights Other Total 563 Overhead Lines Expense Misc Transmission Expenses Increase in the transmission Interchange Agreement I/A billing from NSPW to NSPM The I/A is FERC approved tariff that provides for the inter-company sharing of production and transmission costs of NSPM and NSPW The increased billing to NSPM is driven by increased NSPW transmission plant investment and business area expenses Other Total 566 Misc Transmission Expenses Maintenance of Station Equipment Substation Operations and Maintenance reclassified costs from FERC 560 and FERC 582 in 2012 to FERC 570 in and added additional costs due to system to maintain NERC compliance the bulk electric expansion on the system increased apprenticeship program to ensure compliance on expanding system and perpetuate knowledge of highly skilled Relay Technicians Other Total 570 Maintenance of Station Equipment Maintenance of Overhead Lines in Decreae Vegetation Management Transmission line clearance costs $153K Other Total 571 Maintenance of Overhead Lines Maintenance of Misc Transmission Plant Field Operations reclassified costs from FERC 595 in FERC 573 in Other 35 Total 573 Maintenance of Misc Transmission Plant Page of

11 Variance Explanations 2012 Actual vs 2014 Budget Operating and Maintenance by FERC Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance 580 Operation Supervision Engineering Incorrect set-up of an engineering and supervision work order in Actuals 2012 which led the charges to go to FERC 580 however the correction has been made in the 2014 Budget and the charges went correctly to FERC partially by increases $1 581 $641 offset 3% merit 58K Substation Operations and Maintenance reclassified costs from FERC 580 in 2012 to FERC 570 in 2014 Budget due to expanded NERC North American Electric Reliability Corporation compliance requirements Business Systems cost decrease was primarily driven by July-December 2012 application development and 238 ADM and Distributed Systems Support DSS and network maintenance costs being allocated following Xcel 238 Energy labor and beginning January 2013 costs are charged to application-specific work orders which are then allocated to the operating companies using each application Net decrease is offset by FERC 921 increase 36 Other Total 580 Operation Supervision Engineering Load Dispatching Increase due to Engineering Supervision work orders set up incorrectly to FERC 580 instead of FERC 581 in in correctly 2012 the correction has been made the 2014 Budget and the charges went to FERC 581 $641 and 3% merit increases $163K 37 Other Total 581 Load Dispatching Station Expenses Substation Operations and Maintenance reclassified costs from FERC 582 in 2012 to FERC 570 in Other Total 582 Station Expenses Overhead Lines Expense Increase due to network upgrade and protector maintenance $330K 4kV Conversions $90K and increase in Vegetation Management spend to keep up on cycle counts $387K Reduced meter/transformer install credits in 2014 also contributed $336K to the increase Other Total 583 Overhead Lines Expense Underground Lines Expense Increase due to Damage Prevention ticket volume assumptions including an increase of 19% for South Dakota % for North Dakota and 12% for Minnesota Reduced meter/transformer install credits in 2014 also contributed to the increase $183K Other Total 584 Underground Lines Expense Meter Expenses Increase due to shift in work for seven metering employees from FERC 588 to FERC 586 $11 OK Increased headcount in Distribution Business Operations to specifically support metering functions $616K Reduced meter/transformer install credits in 2014 based on planned purchase of meters/transformrers based on inventory strategy anticipated demand $247K Other Total 586 Meter Expenses Customer Installations Expenses Increased headcount Distribution in Business Operations to specifically support metering functions $332K years of merit increase for Distribution Operations NSPM $130K and in 2012 $1 17K non-gratuitous revenue of was recorded to this FERC account rather than revenue Other Total 587 Customer Installations Expenses Misc Expenses Business Systems cost decrease was driven by July Dec 2012 application development and maintenance ADM Distributed Systems Support DSS and Network were allocated following Xcel Energy labor and beginning Jan 2013 costs are charged to application-specific work orders operating companies using each application Net decrease is offset by FERC 921 increase which are then allocated to the Increase due to shift in materials from FERC 921 to FERC 588 for VP Distribution Operations $356K years of merit increase $275K safety recognition moved from FERC 580 to FERC 588 $300K small tools moved from various FERCs to FERC 588 $21 3K and MN Sales Tax Credit for materials in 2012 that wasnt budgeted for in 2014 $125K partially offfset by decrease due to shift in work for seven metering employees from FERC 588 to FERC 586 $1IOK Other Total 588 Misc Expenses Maintenance Supervision Engineering Reclassified costs from FERC 590 in 2012 to FERC 592 in 2014 due to specfic Distribution Substation maintenance requirements for reliability focus 44 Other Total 590 Maintenance Supervision Engineering Page of

12 Variance Explanations 2012 Actual vs 2014 Budget Operating and Maintenance by FERC Account NSP.MN Electric FERC.Based Electric OM Analysis 2014 Budget versus 2012 Actuals Budget Offset In Other Ref Electric OM Variance FERC Accounts Remaining Variance 592 Maintenance of Station Equipment Increase in Substation Operations and Maintenance increase in Distribution Substation maintenance requirements for reliability focus Reclassified costs from FERC 590 in 2012 to FERC 592 in Other Total 592 Maintenance of Station Equipment Maintenance of Overhead Lines Increase due to CenturyLink pole transfers $31 3K Avian Protection $225K Osmose Poles $281K increase in lighting partially by outdoor at offset storm normalization of $250K 5700K Other Total 593 Maintenance of Overhead Lines Maintenance of Underground Lines Increase due to network upgrade and protector maintenance $830K Other Total 594 Maintenance of Underground Lines Maintenance of Line Transformers Field Operations reclassified costs from FERC 595 in FERC 573 in 2014 $254 Substation Operations and Maintenance due expected maintenance due reduced materials to reduction of corrective to increased preventive maintenance $97K 48 Other Total 595 Maintenance of Line Transformers Page of

13 Customer Sales and Administrative and General FERC Variance Explanations 2012 Actual vs 2014 Budget and Maintenance by FERC Operating Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals 2012 Actuals 2014 Budget Change Change Ref Customer Accounts Expenses 901 Supervision % 902 Meter Reading Expenses % 903 Customer Records Collection Expenses % 904 Uncollectible Accounts % 905 Misc CustomerAccounts Expenses % Customer Service Informational Expenses Supervision % 908 Customer Assistance Expenses % 909 Informational Instructional Expenses % 910 Misc Customer Service Informational 0.0% Expenses Sales Expenses Supervision % 912 Demonstrating Selling Expenses % 913 Advertising Expenses 0.0% 916 Misc Sales 0.0% Expenses Total Customers Sales Expenses % AG Expenses 920 Administrative General Salaries 921 Office Expenses Supplies 922 Administrative Expenses Transferred-Credit 923 Outside Services Employed 924 Property Insurance 925 Injuries Damages 926 Employee Pension Benefits 927 Franchise Requirements 928 Regulatory Commission Expenses 929 Duplicate Charges-Credit Advertising Expenses General Expenses Misc General 931 Rents 935 Maintenance of General Plant Total AG Total Customers Sales AG % 35.9% 69.4% 28.9% 17.4% -42% 8.3% 0.0% -20.3% 28.3% 69.1% 30.1% 29.2% 107.3% 11.0% %

14 Customer and Administrative and General FERC Variance Explanations 2012 Actual vs 2014 Budget Operting and Maintenance Expense by FERC Account NSP-MN Electric FERC-Based Electric OM Analysis 2014 Budget versus 2012 Actuals Budget In Offset Other Ref Electric OM Variance FERC Accounts Remaining Variance 902 Meter Reading Expenses Customer Care Costs increased $1.548M with $1.1 Mat the increase primarily due to decrease in expected OM credits from CeilNet due to less manual reads needed as result of meter reading automation In addition $1M increase in outside services consists of $0.8M increase due to anticipated 2.1% escalator in CellNet contract and $0.2M increase primarily due to annual meter population growth of approximately 1% These increases were offset by $486K decrease in labor from the anticipated release of meter readers as result of meter reading automation as well as the retirement of Credit Collectors These positions will be augmented with seasonal non-benefit employees in 2014 Business System cost decreased ofy $186K was driven by July Dec 2012 Application Development and Maintenance ADM and Distributed Systems Support DSS and network costs being allocated following Xcel Energy labor and beginning January 2013 costs are charged to application-specific work orders which are then allocated to the operating companies using each application Net decrease is offset by FERC 921 increase Other Total 902 Meter Reading Expenses Customer Records and Collection Expenses Benefit costs decreased $759K due primarily to lower annual incentive costs due to the 2014 budget reflecting % vs 2012 accwed at higher target Ievels$721 target levels actuals being than Business System costs were reduced by $491 The decrease was driven primarily by Distributed Systems Support DSS and network costs being allocated following Xcel Energy labor and beginning January costs 2013 are charged to application-specific work orders which are then allocated to the operating companies using each application net offset by 921 increase The decrease FERTC is Other Total 903 Customer Records and Collections Expenses Uncollectible Accounts For the 2014 budget the company used 2-month average of actual net write-off percentages to billed commodity revenue from April 2012 through March 2013 This resulted 0.36% compared to 2012 actual in bad debt to revenue of 0.32% commodity revenues increased $430M an increase ratio Billed resulting commodity bad debt expense of $1.320M The percent variance of bad debt expense of.04% results in rate variance of $1.537M Remaining $14K due increase non-commodity bad debt expense is to in In 2012 Commercial Operations reduced the reserve for bad debt because insurance was expected to cover any material loss and therefore the reserve was not required The 2014 budget does not include for Commercial Operations bad debt any budgeted cost Other Total 904 Uncollectible Accounts Informational Instructional Expenses Shift to brand/image advertising focus from conservation advertising anticipated in 2014 see FERC for offset Other Total 909 Informational Instructional Expenses Administrative General Salaries Increase mainly due to higher performance share plan $3.4M and restricted stock unit costs $1.6M offset by lower annual incentive $2.8M mainly due to budgeting at 100% of target level in 2014 vs accruing higher than target in levels 2012 Additional headcount to improve data security and disaster recovery results $400K in-sourcing program in averaging statistic managers Oct 2013 $240K YOY merit increase 3% $390K number of computers April shifting support updated with Nuclear assets 2012 more Business Systems costs to NSPM $337K in the OM $340K and vacancies 16 at the end of 2012 higher than the attrition rate $493K Human Resource merit increases and an increase in headcount to deliver the appropriate service level while executing the HR Strategy which is focused on talent acquisition performance management and developing current and future leaders Financial Operations labor increase primarily for merit salary escalations Revenue Group costs decreased due to non-recurring severance payments $234K budgeted attrition $182K the reduction of an executive position within the Revenue Group $267K and updated labor splits between electric and gas General Counsel costs increased due to the addition of 31 employees new positions or vacancies filled between the two periods labor splits between operating companies and the cumulative effect of merit increases Planned internal labor increases are offset by external labor decreases where appropriate see FERC 923 Other Total 920 Administrative General Salaries Page of

15 Customer and Administrative and General FERC Variance Explanations 2012 Actual vs 2014 Budget Operting and Maintenance Expense by FERC Account NSP-MN Electric 921 Office Supplies Expenses the Decreased due BMO to accrual which accounta for timing differences in expensing employee credit card to business This is not additional driver is the Service charges each area $810K expense budgeted An Company allocations to the operating companies for the impact of permanent income tax differences related to non-deductible expenses $227K Business System cost increase was driven by Two years of 4% contractual increases on existing software agreements increased demand due to enterprise system upgrades and replacement projects requiring software maintenance $4.OM addition maintenance costs on the Ricoh copier/printers $730Kand shifts between In FERC accounts as result of changing charge-out of various ADM DSS and Network costs to use application the from FERC 517 and 520 $4.6M Network and Network specific allocations including shift Strategy Transformation initiatives $1.9M System growth Driven demand and speed and by circuit requirement project growth $1.5M Storage contractual Increases $0.4M Storage Increases $0.8M Network contractual Increases $0.4M Increase in Workforce Admin expenses for background screening drug and alcohol screening for new employees and contractors Supply Energy costs decreased due to reorganization of the environmental in 2013 Environmental permit group fees for emissions which were recorded FERC 921 are now of FERC air previously in part plant budgets in accounts and Marketing Communications cost increase for additional education and outreach to support events designed to improve customer engagement and stakeholder involvement Reduced market research in 2012 Increased Safety Business Services material costs for additional aircraft fuel resulting from an increase in flight hours and safety maintenance and replacement of equipment such as climbing belts hand tools etc Other Total 921 Office Supplies Expenses Administrative Expenses Transferred-Credit Corporate Other costs decreased primarily due to increased Miscellaneous OM credits to offset the AG billed to party partners project expenses allowable per contract that are 3rd for the CapX 2020 $1.1M AG applied to other capital projects is increased as well $132K NSPM electric FERC 931 increased by $5.8M from 2012 actuals to the 2014 budget primarily due to an increase in total Xcel Energy network equipment capital additions Capital additons in this asset class are primarily tied to replacing our aging infrastructure and enhancing our communication capabilities Because much of the capital addlions are assets of NSPM NSPM electric is also receiving larger credit in FERC 922 $1 DiM which offsets the FERC 931 increase The net change related to network equipment shared assets is actually $4.3M decrease from 2012 actuals to the 2014 budget Decrease due to change in Shared Asset Calculation driven by 414 Nicollet plant addition in 2013 of $9.2M for backup generator $91 8K and amortized leasehold improvements over the remaining life of the Marquette Plaza lease ending in 6/2016 $229K Decrease due to higher SMMPA credit in 2014 related to sharing of costs for the Unit overhaul The Sherco Unit plant was down in 2012 due to the catastrophic failure that occurred in 2011 Other Total 922 Administrative Expenses Transferred-Credit Outside Services Emptoyed Business System costs increased due to anticipated application maintenance demands due to increase in project spend in 2014 $728K Enhancements to data security and disaster support multiple capital projects $2.1M recovery incidents $494K OM consulting to Financial Operations contract labor increases by $148K to support the implementation of new financial systems Accounting consulting increases for external audits by $268K for internal audit co-source support by $126K for studies required periodically by $232K nuclear decommissioning and required cost studies and for accounting pronouncements revenue recognition lease derivative accounting by and and $95K Increase due to spend associated with the franchise agreement planned Minneapolis $750K Outside legal costs decreased due to increased staffing reflected in FERC account 920 In addition there are less expenses associated with employee and corporate related matters FCC licensing general contract reviews real estate and litigation Other Total 923 Outside Services Employed Property Insurance Property insurance increases by $1 244K due to firming market escalating valuations and recent company losses Auto insurance increases $125K based on loss activity Nuclear insurance increases include liability by industry and interruption by $12K property by $483K driven by large losses within the Other Total 924 Property Insurance Injuries and Damages Lower FAS 112 workers compensation expense and lower premiums General Liability insurance decreased due to the operating company allocation based on the most recent 3-year loss history of claims $815K Excess insurance increased by $778K due to industry losses and market Nuclear $357K firming insurance includes an increase of for insurance with coverage levels liability established by the U.S Congress and expected additional Industry Credit Plan ICRP reserve premium Rating refunds $1 14K Other insurance increased $75K 10 Other Total 925 Injuries and Damages Page of

16 11 Customer and Administrative and General FERC Variance Explanations 2012 Actual vs 2014 Budget Operting and Maintenance Expense by FERC Account NSP-MN Electric 926 Employee Pension Benefits Increase mainly due to higher active healthcare $7.OM qualified pension $4.5M and 401k match costs $569K offset by FAS 88 settlement expense in 2012 vs none in 2014 $2.9M and to lower retiree medical $2.1M and FAS 112 long-term disability costs $462K Other Total 926 Employee Pension Benefits Regulatory Commission Expenses Regulatory fees and wnte-offs are expected to decrease by $41 7K for Minnesota by $1 75K for North Dakota and by $367K for South Dakota based on the timing of rate case filings 12 Other Total 928 Regulatory Commission Expenses Duplicate Charges-Credit Increased company use credits for utility service used by company owned facilities Other Total 929 Duplicate Charges-Credit General Advertising Expenses Increase in advertising expenses for Nuclear recruitment Shift to brand/image advertising focus from conservation advertising anticipated in 2014 see FERC 909 for escalation assumptions the Wild escalator offset spending highlighted by Sponsorship and MN Brand Increased due to planned spend associated with the Minneapolis franchise agreement $750K This is by expiration offset the of brand sponsorship commitments across the company $150K Other 14 Total General Advertising Expenses Misc General Expenses $1 03K is increase in dues for Electric Power Research Institute and $79K is increase in dues for Midwest Energy Association Increase in Utility Water Action Group dues ass result of new regulations on effluent limit guidelines Increases due to external consulting expenses needed to fill vacancy Director Fees on the Board of Directors as well as Other Total Misc General Expenses Rents NSPM electric FERC 931 increased by $5.8M from 2012 actuals to the 2014 budget primarily due to an increase in total Xcel Energy network equipment capital additions Capital additons in this asset class are primarily tied to replacing our aging infrastructure and enhancing our communication capabilities Because much of the capital addtions are assets of NSPM NSPM electric also receiving larger credit in FERC 922 $10.1M which offsets is $4.3M the FERC 931 increase The net change related to network equipment shared assets is actually decrease from 2012 actuals to the 2014 budget Other Total 931 Rents Maintenance of General Plant The cost increase is due to the 2012 corporate aircraft maintenance costs being low as result of credit adjustment aircraft late in in refinancing associated with the refurbishment 201 The costs were included the flight with Bank of America Also an increase the expected number of hours aircraft maintenance plan in impacts cost Other Total 935 Maintenance of General Plant Page of

17 SUPPORTING SCHEDULES

18 XceI Energy Supporting Schedules The following budget schedules are included for each business area Schedule Analysis of Billings This schedule summarizes business area total operating and maintenance expenses by Operating Company direct billed Service Company direct billed and Service Company allocated charges The purpose of this schedule is to provide breakdown of the amount of budgeted operating and maintenance expenses of each business area that originated in the operating company the amount directly assigned to the operating company from the Service Company and the amount that was assigned to the operating company from the Service Company through an allocation Note The Service Company total on Schedule equals the NSPM total from Schedule Service Company Billings Schedule Service Company Billings Only This schedule summarizes the amount of billings from each business area that manages Service Company costs to NSPM and the other Xcel Energy subsidiaries This schedule is intended to provide the amount of budgeted billings from each business area that manages Service Company costs how much of those costs are billed to each Xcel Energy utility legal entity and the amount billed to other non-regulated subsidiaries of Xcel Energy Note The NSPM total from Schedule Service Company Billings equals the Service Company total on Schedule Schedule NSPM OM by Object Account All Utilities The purpose of this schedule is to provide comparison of actual operating and maintenance expenses recorded in 2012 by cost object account to the 2014 expense budget for the total NSPM Company and by business area This schedule summarizes and compares the operating and maintenance expenses by cost object account for the total NSPM Company combining the costs of all utilities The first report set aggregates the expenses over all business areas The second report set provides this comparison separated and subtotaled for each business area including the grand total amount for the NSPM Company Schedule 3A NSPM OM by Object Account By Utility This schedule summarizes and compares the 2012 actual and 2014 budget operating and maintenance expenses by cost object account for the total NSPM Company separately by each utility e.g electric gas and non-utility The first report set aggregates the expenses over all business areas The second report set provides this the NSPM comparison separated and subtotaled for each business area including Company utility subtotals followed by the grand total amount for the NSPM Company

19 XcelEnergy Supporting Schedules continued Schedule NSPM OM by FERC Account All Utilities The purpose of this schedule is to provide comparison of actual operating and maintenance expenses recorded in 2012 by FERC account to the 2014 expense budget for the total NSPM Company and by business area This schedule summarizes and compares the operating and maintenance expenses by FERC account for the total NSPM Company combining the costs of all utilities The first report set aggregates the expenses over all business areas The second report set provides this comparison separated and subtotaled for each business area including the grand total amount for the NSPM Company Schedule 4A NSPM OM by FERC Account By Utility This schedule summarizes and compares the 2012 actual and 2014 budget operating and maintenance expenses by FERC account for the total NSPM Company separately by each utility e.g electric gas and non-utility The first report set aggregates the expenses over all business areas The second report set provides this comparison separated and subtotaled for each business area including the NSPM Company utility subtotals followed by the grand total amount for the NSPM Company Schedule NSPM 2014 Capital Budget All Utilities The purpose of this schedule is to provide listing of the NSPM capital projects by business area and the amounts that are included in the 2014 capital expenditure budget This schedule is not applicable for all business areas If business area has no capital expenditures budgeted for 2014 there is no Schedule included Schedule 5A NSPM 2014 Capital Budget By Utility This schedule categorizes NSPM capital expenditures by utility e.g electric gas and common by business area and the amounts that are included in the 2014 capital expenditure budget This schedule is not applicable for all business areas If business area has no capital expenditures budgeted for 2014 there is no Schedule 5A included

20 SCHEDULE Analysis of Billings

21 Analysis of Billings 2014 Budget Schedule Northern States Power MN Business Area Op Co Direct Svc Co Direct Svc Co Alloc Svc Co Subtotal Total Benefits Loadings Chief ExecutiveOfficer Corporate Other Corporate Services Distribution Operations Energy Supply Financial Operations Gas Systems General Counsel NuclearAn-iortzOther Nuclear Generation Bus Area Operations Services Public Policy/External Affairs Revenue Group Transmission Total Page of November 2013

22 Service SCHEDULE Company Billings

23 Service Company Billings Only 2014 Budget Schedule Northern States Power MN Business Area NSP MN Other Subs Grand Total Benefits Loadings Chief Executive Officer Corporate Other Corporate Services Distribution Operations Energy Supply Financial Operations Gas Systems General Counsel Nuclear Amortz Other Nuclear Generation Bus Area Operations Services Public Policy/External Affairs Revenue Group Transmission Total Page of November4 2013

24 SCHEDULE OM by Object Account

25 Total Company All Utilities

26 Schedule OM by Object Account Total Company All Utilities Account 2012 Actual 2014 Budget Variance Var Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % NMC Consult Professnl Fees % Contract LT Outside Vendor % Cntrct Outside Vend-DCM % Outside Srvcs-Cust Care % Consulting/Prof Svcs-Legal % Partner Invoicing CapX-OM % Consult/Legal Regulatory % Consulting/Prof Svcs-Acctg % RTO Trans Stud Exp FERC % Materials % Materials-S % MS Inventory Adj-Obsolete Mat % Chemicals Other Chemicals % Chemicals Lime % Chemicals Mercury Sorbent % Chemicals -Ammonia % Chemicals Sulfuric Acid % Print/Copy-Other % Print/Copy-Other-S Print/Copy-SEC Filings % Legal-Other % Equipment Maintenance % Equip Maint-Cust Care % IT Hardware Maintenance % IT Hardware Purchases % Software Purchases % Software-prepetual lic purch % Software term lic purch % Software Maintenance % Personal Communication Devices % Network Services % Network Voice % Network Data % Network Telecom % Network Radio/Pgr/MW % Mainframe Services % Distributed Systems Services % App Dev Maint % 7l5830ProjectOffice % 7lS900Software-ASP % Employee Expenses % Office Supplies % fficeSupplies-S % Workforce Admin Expense % Safety Recognition % Safety Recognition S % 72l8lOLifeEvents % Life Events Employee Performance Recogntn % Employee Performance Recogn S Non-Recoverable Recognition Non-Recoverable Recognition Transportation Fleet Cost % Page of November 2013

27 Schedule OM by Object Account Total Company All Utilities Account 2012 Actual 2014 Budget Variance Var% Transportation Fleet Cost % Facility Costs % Utilty Costs % Uncollectible Accounts % Rents % Postage % Cust Billing Srvcs to Other 100.0% Injuries Damages % Insurance Premiums % Advertising % Donations Dues and Fees % Environmental Reserves Trans Interchange Expense % Nuclear Outage Cost Amort % MeterlTransf Install-OM Crdts % Miscellaneous OM Credits % Rebates % Non-Recover Const Waiver-Gas % Shared Asset Costs % Shared Assets-Owning Co Cr % Other % Online Information Services % Operating Co Overheads % Grand Total % Page of November 2013

28 Total Company By Business Area All Utilities

29 Schedule OM by Object Account Total Company All Utilities By Business Area $0005 BusinessArea Account 2Ol2Actual 2Ol4Budget Variance Var% Benefits Loadings Company Labor % Employee Performance Recogntn % Employee Performance Recogn S % Non-Recoverable Recognition Non-Recoverable Recognition % Benefits Loadings Total % Chief Executive Officer Company Labor % Consulting/Prof Svcs-Other % Materials 3.8% Print/Copy-Other 1.6% Personal Communication Devices -15.4% 72l000EmployeeExpenses 3.1% Office Supplies 9.7% 72l8lOLifeEvents 513.1% Postage -10.3% Donations Dues and Fees % Other Online Information Services 7.0% Chief Executive Officer Total % Corporate Other Non-Company Labor Consulting/Prof Svcs-Other Consulting/Prof Svcs-Legal Materials % Employee Expenses % Safety Recognition % Utilty Costs Uncollectible Accounts Donations Dues and Fees Trans Interchange Expense % Meter/Transf Install-OM Crdts % Miscellaneous OM Credits % Shared Asset Costs % Shared Assets-Owning Co Cr % Other % Operating Co Overheads % Corporate OtherTotsl % Corporate Services Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor % Outside Srvcs-Cust Care % Consulting/Prof Svcs-Legal Materials % Materials-S Print/Copy-Other % Print/Copy-SEC Filings Equipment Maintenance % Equip Maint-Cust Care % IT Hardware Maintenance % IT Hardware Purchases % Software Purchases % Software-prepetual lic purch % Software-term ic purch % Software Maintenance % Personal Communication Devices % Network Services % Network Voice % Network Data % Network Telecom % Network Radio/Pgr/MW % Mainframe Services % Distributed Systems Services % App Dev Maint % Project Office % Software ASP % Employee Expenses % Office Supplies % WorkforceAdmin Expense % Safety Recognition 8.1% Life Events % Transportation Fleet Cost % Facility Costs % Utilty Costs % Uncollectible Accounts % Rents % Postage % Cust Billing Srvcs to Other 100.0% Page of November 2013

30 Schedule OM by Object Account Budget 2012 Actuals vs 2014 Company All Utilities By Business Total Area Business Area Account 2012 Actual 2014 Budget Variance Var% % Insurance Premiums Advertising % Donations Dues and Fees % Miscellaneous OM Credits % Shared Asset Costs % Shared Assets-Owning Co Cr % Other % Online Information Services % Corporate Services Total % Distribution Operations Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LI Outside Vendor % Outside Srvcs-Cust Care Svcs-Legal -4 Consulting/Prof Materials % MS Inventory Adj-Obsolete Mat % Print/Copy-Other % IT Hardware Purchases Software Purchases 100.0% Personal Communication Devices % Network Voice Distributed Systems Services 100.0% Employee Expenses % Office Supplies % Safety Recognition % Life Events 53.4% Transportation Fleet Cost % Costs % Uncollectible % Accounts Rents % Postage % 7234BOlnjunesDamages % Advertising Donations Dues and Fees % Other % Distribution Operations Total % Energy Supply Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LI Outside Vendor % Materials % Materials-S % Chemicals Other Chemicals % Chemicals Lime % Chemicals Mercury Sorbent % Chemicals-Ammonia % Chemicals Sulfuric Acid % Print/Copy-Other % Print/Copy-Other-S Legal-Other Hardware Purchases Software Purchases Software-prepetual lic purch 100.0% Personal Communication Devices 3.3% Network Services % Employee Expenses % Office Supplies % Office Supplies % -S Safety Recognition % Safety Recognition % S Life Events % Life Events Transportation Fleet Cost % Transportation Fleet Cost % Facility Costs % Utilty Costs % Rents % Postage % Insurance -3 Premiums Advertising Donations Dues and Fees % Environmental Reserves Miscellaneous OM Credits % Other % Online Information Services % Page of November 2013

31 Schedule OM by Object Account Budget 2012 Actuals vs 2014 Company All Utilities By Business Total Area Business Ares laccount 2012 Actual 2014 Budget Variance Var Energy Supply Total % Financial Operations Company Labor % 7l2lOONon-CompanyLabor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor Consulting/Prof Svcs-Legal Consulting/Prof Svcs-Acctg % Materials % Print/Copy-Other % Print/Copy-SEC % Filings Personal Communication % Devices App Dev Maint % Employee Expenses % 72l5000fficeSuppIies % Safety Recognition 72l8lOLifeEvents 84.2% Transportation Fleet Cost 60.4% Utilty Costs % Rents Postage % Insurance Premiums % Advertising % Donations Dues and Fees % Miscellaneous OM Credits % Other % Online Information Services % Financial Operations Total % Gas Systems Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor % Materials % Print/Copy-Other % Personal Communication Devices % Employee Expenses % Office Supplies % Workforce Admin Expense % Safety Recognition % Life Events 310.1% Transportation Fleet Cost % Utilty Costs % Rents % Postage % Injuries Damages % Donations Dues and Fees % Other % Online Information Services % Gas Systems Total % General Counsel Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor % Consulting/Prof Svcs-Legal % Consult/Legal Regulatory % Materials % Print/Copy-Other % Legal-Other % Equipment Maintenance 100.0% Software-prepetual lic purch 100.0% Personal Communication Devices % Distributed Systems Services 48.5% Employee Expenses % Office Supplies % Safety Recognition % Life Events 558.0% Transportation Fleet Cost 294.2% Utilty Costs 31.8% Rents -8.7% Postage 89.9% Insurance Premiums % Advertising 100.0% Donations Dues and Fees % Other % Online Information Services % General Counsel Total % Nuclear Amortz Other Nuclear Outage Cost Amort % Other % Page of November 2013

32 Schedule OM by Object Account Total Company All Utilities By Business Area Business Area laccount 2012 Actual 2014 Budget Variance Var Nuclear Amortz Other Total % Nuclear Generation Bus Area Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % NMC Consult Professnl Fees Contract LT Outside Vendor % Cntrct Outside Vend-DCM 00.0% Outside Srvcs-Cust Care % Svcs-Legal Consulting/Prof Consult/Legal Regulatory 100.0% Consulting/Prof Svcs-Acctg Materials % Chemicals Other Chemicals % Print/Copy-Other % Equipment Maintenance % IT Hardware Maintenance % IT Hardware Purchases % Software Purchases % Softwsre-prepetual lic purch 100.0% Software-term lic purch % Software Maintenance % Personal Communication Devices % Network Data % Network Telecom Network Radio/Pgr/MW % Employee Expenses % Office Supplies % Safety Recognition 5.7% Life Events Transportation Fleet Cost % Utilty Costs % Rents % Postage % Injuries Damages % Donations Dues and Fees % Miscellaneous OM Credits % Other % Online Information Services % Nuclear Generation Bus Area Total % Operations Services Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor % Consulting/Prof Svcs-Legal RTO Trans Stud Exp FERC % Materials % Materials-S Print/Copy-Other 15.0% Software-prepetual lic purch 83.6% Software Maintenance 100.0% Personal Communication Devices % Network Voice 72l000EmployeeExpenses % Office Supplies % Workforce Admin Expense % Safety Recognition -40.9% Life Events 48.2% Life Events Transportation Fleet Cost % Utilty Costs % Uncollectible Accounts Rents 169.8% Postage % Advertising % Donations Duesand Fees % Miscellaneous OM Credits % Other % Online Information Services % Operations Services Total % Public Policy/External Affairs Company Labor % Non-Company Labor Consulting/Prof Svcs-Other Contract LT Outside Vendor Svcs-Legal Consulting/Prof Materials Print/Copy-Other Print/Copy-SEC Filings % % % % % Page of November 2013

33 Schedule OM by Object Account Company All Utilities By Business Total Area Business Area Account 2012 Actual 2014 Budget Variance Var % Equipment Maintenance Software-prepetual lic purch Personal Communication Devices % Employee Expenses % Office Supplies % 72l8lOLifeEvents 127.9% Transportation -92.6% Fleet Cost Costs % Rents % Postage % Advertising % Donations Dues and Fees % Miscellaneous OM Credits Other 216.4% Online % Information Services -3 Public Policy/External Affairs Total % Revenue Group Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor % Outside Srvcs-Cust Care % Materials % Print/Copy-Other % Equipment Maintenance IT Hardware Purchases Personal Communication -6.1% Devices Employee Expenses % Office Supplies % Safety Recognition 3.6% Life Events 57.6% Transportation Fleet Cost -2.6% Costs -46.9% Utilty Uncollectible % Accounts Rents 1.8% Postage % Advertising % Donations Dues and Fees % Rebates % Non-Recover Coast Waiver-Gas % Other % Online Information Services -12.9% Revenue Group Total % Transmission Company Labor % Non-Company Labor % Consulting/Prof Svcs-Other % Contract LT Outside Vendor % Svcs-Legal Consulting/Prof Partner Invoicing CapX-OM % Svcs-Acctg Consulting/Prof Materials % Materials-S MS Inventory Adj-Obsolete Mat % Print/Copy-Other % Personal Communication Devices % Employee Expenses % Office % Supplies WorkforceAdmin Expense Safety Recognition -10.3% Life Events 142.4% Transportation % Fleet Cost Transportation Fleet Cost % Costs % Uncollectible % Accounts Rents % Postage % Advertising Donations Dues and Fees % Miscellaneous OM Credits % Other % Online % Information Services Transmission Total % Grand Total % PageS of November 2013

34 Total Company Schedule By Utility 3A