Management believes it is important for International Paper to maintain an investment-grade credit rating to facilitate access to capital markets on favorable terms.
At December 31, 2005, the Company held longterm credit ratings of BBB (negative outlook) and Baa3 (stable outlook) from Standard & Poor’s and Moody’s Investor Services, respectively.
Cash Provided By Operations Cash provided by continuing operations totaled $1.5 billion for 2005, compared with $2.1 billion in 2004 and $1.5 billion in 2003.
The major components of cash provided by continuing operations are earnings from continuing operations adjusted for non-cash income and expense items and changes in working capital.
Earnings from continuing operations adjusted for non-cash items declined by $83 million in 2005 versus 2004.
This compared with an increase of $612 million for 2004 over 2003.
Working capital, representing International Paper’s investments in accounts receivable and inventory less accounts payable and accrued liabilities, was $2.6 billion at December 31, 2005.
Cash used for working capital components increased by $591 million in 2005, compared with a $86 million increase in 2004 and an $11 million increase in 2003.
The increase in 2005 was principally due to a decline in accrued liabilities at December 31, 2005.
Investment Activities Capital spending from continuing operations was $1.2 billion in 2005, or 84% of depreciation and amortization, comparable to the $1.2 billion, or 87% of depreciation and amortization in 2004, and $1.0 billion, or 74% of depreciation and amortization in 2003.
The following table presents capital spending from continuing operations by each of our business segments for the years ended December 31, 2005, 2004 and 2003.
## Table 0 ##
We expect capital expenditures in 2006 to be about $1.2 billion, or about 80% of depreciation and amortization.
We will continue to focus our future capital spending on improving our key platform businesses in North America and on investments in geographic areas with strong growth opportunities.
Acquisitions In October 2005, International Paper acquired approximately 65% of Compagnie Marocaine des Cartons et des Papiers (CMCP), a leading Moroccan corrugated packaging company, for approximately $80 million in cash plus assumed debt of approximately $40 million.
In August 2005, pursuant to an existing agreement, International Paper purchased a 50% third-party interest in IPPM (subsequently renamed International Paper Distribution Limited) for $46 million to facilitate possible further growth in Asian markets.
In 2001, International Paper had acquired a 25% interest in this business.
The accompanying consolidated balance sheet as of December 31, 2005 includes preliminary estimates of the fair values of the assets and liabilities acquired, including approximately $50 million of goodwill.
In July 2004, International Paper acquired Box USA Holdings, Inc.  (Box USA) for approximately $400 million, including the assumption of approximately $197 million of debt, of which approximately $193 million was repaid by July 31, 2004.
Each of the above acquisitions was accounted for using the purchase method.
The operating results of these acquisitions have been included in the consolidated statement of operations from the dates of acquisition.
Financing Activities 2005: Financing activities during 2005 included debt issuances of $1.0 billion and retirements of $2.7 billion, for a net debt and preferred securities reduction of $1.7 billion.
In November and December 2005, International Paper Investments (Luxembourg) S. ar.
l. , a whollyowned subsidiary of International Paper, issued $700 million of long-term debt with an initial interest rate of LIBOR plus 40 basis points that can vary depending upon the credit rating of the Company, and a maturity date in November 2010.
Additionally, the subsidiary borrowed $70 million under a bank credit agreement with an initial interest rate of LIBOR plus 40 basis points that can vary depending upon the credit rating of the Company, and a maturity date in November 2006.
In December 2005, International Paper used proceeds from the above borrowings, and from the sale of CHH in the third quarter of 2005, to repay approximately $190 million of notes with coupon rates ranging from 3.8% to 10% and original maturities from 2008 to 2029.
The remaining proceeds from the borrowings and the CHH sale will be used for further debt reductions in the first quarter of 2006.
agreement, which are expected to provide about 16,000 MW hours per year and accompanying solar renewable energy credits beginning in 2008.
RESA — On Dec.  1, 2005, PSCo filed with the CPUC to implement a new one percent rider that would apply to each customer’s total electric bill, providing approximately $22 million in annual revenue.
The revenues collected under the RESA will be used to acquire sufficient solar resources to meet the on-site solar system requirements in the Colorado statutes.
On Feb.  14, 2006, PSCo and the other parties to the case filed a stipulation agreeing to reduce the RESA rider to 0.60 percent and to provide monthly reports.
The RESA rider was approved by the CPUC effective March 1, 2006.
Purchased Transmission Services — PSCo has contractual arrangements with regional transmission service providers to deliver power and energy to PSCo’s native load customers, which are retail and wholesale load obligations with terms of more than one year.
Fuel Supply and Costs The following table shows the delivered cost per MMBtu of each significant category of fuel consumed for electric generation, the percentage of total fuel requirements represented by each category of fuel and the total weighted average cost of all fuels.
## Table 1 ##
See additional discussion of fuel supply and costs under Factors Affecting Results of Continuing Operations in Management’s Discussion and Analysis under Item 7.
Fuel Sources — Coal inventory levels may vary widely among plants.
However, PSCo normally maintains approximately 30 days of coal inventory at each plant site.
Coal supply inventories at Dec.  31, 2006, were approximately 30 days usage, based on the maximum burn rate for all of PSCo’s coal-fired plants.
PSCo’s generation stations use low-sulfur western coal purchased primarily under longterm contracts with suppliers operating in Colorado and Wyoming.
During 2006, PSCo’s coal requirements for existing plants were approximately 10 million tons.
PSCo has contracted for coal suppliers to supply approximately 98 percent of its coal requirements in 2007, 70 percent of its coal requirements in 2008 and 60 percent of its coal requirements in 2009.
Any remaining requirements will be purchased on the spot market.
PSCo has coal transportation contracts that provide for delivery for approximately 100 percent of 2007 coal requirements, 100 percent of 2008 coal requirements and 40 percent of 2009 coal requirements.
Coal delivery may be subject to short-term interruptions or reductions due to transportation problems, weather, and availability of equipment.
PSCo uses both firm and interruptible natural gas and standby oil in combustion turbines and certain boilers.
Natural gas supplies for PSCo’s power plants are procured under short- and intermediate- term contracts.
This natural gas is transported to the plants on various interstate pipeline systems with contracts that expire in various years from 2007 through 2025.
Certain natural gas supply and transportation agreements include obligations for the purchase and/or delivery of specified volumes of natural gas or to make payments in lieu of delivery.
At Dec.  31, 2006, PSCo’s commitments related to these contracts were approximately $328 million.
Commodity Marketing Operations PSCo conducts various wholesale marketing operations, including the purchase and sale of electric capacity, energy and energy related products.
PSCo uses physical and financial instruments to minimize commodity price and credit risk and hedge supplies and purchases.
See additional discussion under Item 7A — Quantitative and Qualitative Disclosures About Market Risk.
SPS Ratemaking Principles Summary of Regulatory Agencies and Areas of Jurisdiction — The PUCT and NMPRC regulate SPS’ retail operations as an electric utility and have jurisdiction over its retail rates and services and the construction of transmission or generation in their respective states.
The municipalities in which SPS operates in Texas have jurisdiction over SPS’ rates in those communities.
The NMPRC also has jurisdiction over the issuance of securities.
SPS is subject to the jurisdiction of the FERC with respect to its wholesale electric operations, accounting practices, wholesale sales for resale and the transmission of electricity in interstate commerce.
SPS has received authorization from the FERC to make wholesale electricity sales at market-based prices, however, as discussed previously, SPS withdrew its market-based rate authority with respect to sales in its own and affiliated operating company control areas.
The capital expenditure programs of Xcel Energy are subject to continuing review and modification.
Actual utility construction expenditures may vary from the estimates due to changes in electric and natural gas projected load growth, regulatory decisions and approvals, the desired reserve margin and the availability of purchased power, as well as alternative plans for meeting Xcel Energy’s long-term energy needs.
In addition, Xcel Energy’s ongoing evaluation of restructuring requirements, compliance with future environmental requirements and renewable portfolio standards to install emission-control equipment, and merger, acquisition and divestiture opportunities to support corporate strategies may impact actual capital requirements.
Contractual Obligations and Other Commitments — Xcel Energy has contractual obligations and other commitments that will need to be funded in the future, in addition to its capital expenditure programs.
The following is a summarized table of contractual obligations and other commercial commitments at Dec.  31, 2006.
See additional discussion in the Consolidated Statements of Capitalization and Notes 3, 4, and 14 to the Consolidated Financial Statements.
## Table 2 ##
(a) Under some leases, Xcel Energy would have to sell or purchase the property that it leases if it chose to terminate before the scheduled lease expiration date.
Most of Xcel Energy’s railcar, vehicle and equipment and aircraft leases have these terms.
At Dec.  31, 2006, the amount that Xcel Energy would have to pay if it chose to terminate these leases was approximately $186.1 million.
In addition, at the end of the equipment leases’ terms, each lease must be extended, equipment purchased for the greater of the fair value or unamortized value or equipment sold to a third party with Xcel Energy making up any deficiency between the sales price and the unamortized value.
(b) Xcel Energy and its subsidiaries have contracts providing for the purchase and delivery of a significant portion of its current coal, nuclear fuel and natural gas requirements.
Additionally, the utility subsidiaries of Xcel Energy have entered into agreements with utilities and other energy suppliers for purchased power to meet system load and energy requirements, replace generation from company-owned units under maintenance and during outages, and meet operating reserve obligations.
Certain contractual purchase obligations are adjusted based on indices.
However, the effects of price changes are mitigated through cost-of-energy adjustment mechanisms.
(c) Xcel Energy also has outstanding authority under contracts and blanket purchase orders to purchase up to approximately $1.3 billion of goods and services through the year 2021, in addition to the amounts disclosed in this table and in the forecasted capital expenditures.
Common Stock Dividends — Future dividend levels will be dependent on Xcel Energy’s results of operations, financial position, cash flows and other factors, and will be evaluated by the Xcel Energy board of directors.
Xcel Energy’s objective is to increase the annual dividend in the range of 2 percent to 4 percent per year.
Xcel Energy’s dividend policy balances: ?
Projected cash generation from utility operations; ?
Projected capital investment in the utility businesses; ?
A reasonable rate of return on shareholder investment; and ?
The impact on Xcel Energy’s capital structure and credit ratings.
In addition, there are certain statutory limitations that could affect dividend levels.
Federal law places certain limits on the ability of public utilities within a holding company system to declare dividends.
Specifically, under the Federal Power Act, a public utility may not pay dividends from any funds properly included in a capital account.
The cash to pay dividends to Xcel Energy shareholders is primarily derived from dividends received from its utility subsidiaries.
The utility subsidiaries are generally limited in the amount of dividends allowed by state regulatory commissions to be paid to the holding company.
The limitation is imposed through equity ratio limitations that range from 30 percent to 60 percent.
Some utility subsidiaries must comply with bond indenture covenants or restrictions under credit agreements for debt to total capitalization ratios.
The Articles of Incorporation of Xcel Energy place restrictions on the amount of common stock dividends it can pay when preferred stock is outstanding.
Under the provisions, dividend payments may be restricted if Xcel Energy’s capitalization ratio (on a holding company basis only, not on a consolidated basis) is less than 25 percent.
For these purposes, the capitalization ratio is equal to common stock plus surplus, divided by the sum of common stock plus surplus plus long-term debt.
Based on this definition, Xcel

<table><tr><td><i>In millions</i></td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Printing Papers</td><td>$658</td><td>$590</td><td>$482</td></tr><tr><td>Industrial Packaging</td><td>187</td><td>179</td><td>165</td></tr><tr><td>Consumer Packaging</td><td>131</td><td>205</td><td>128</td></tr><tr><td>Distribution</td><td>9</td><td>5</td><td>12</td></tr><tr><td>Forest Products</td><td>121</td><td>126</td><td>121</td></tr><tr><td>Specialty Businesses and Other</td><td>31</td><td>39</td><td>31</td></tr><tr><td>Subtotal</td><td>1,137</td><td>1,144</td><td>939</td></tr><tr><td>Corporate and other</td><td>18</td><td>32</td><td>54</td></tr><tr><td>Total from continuing operations</td><td>$1,155</td><td>$1,176</td><td>$993</td></tr></table>
<table><tr><td> </td><td colspan="2">Coal</td><td colspan="2">Natural Gas</td><td rowspan="2"> Average Fuel  Cost</td></tr><tr><td> </td><td> Cost</td><td>Percent</td><td> Cost</td><td>Percent</td></tr><tr><td>2006</td><td>$1.24</td><td>85%</td><td>$6.52</td><td>15%</td><td>$2.01</td></tr><tr><td>2005</td><td>$1.01</td><td>85%</td><td>$7.56</td><td>15%</td><td>$2.00</td></tr><tr><td>2004</td><td>$0.89</td><td>87%</td><td>$5.61</td><td>13%</td><td>$1.52</td></tr></table>
<table><tr><td> </td><td colspan="5"> Payments Due by Period</td></tr><tr><td> </td><td> Total</td><td> Less than 1 Year</td><td> 1 to 3 Years</td><td> 4 to 5 Years</td><td> After 5 Years</td></tr><tr><td> </td><td colspan="5"> (Thousands of Dollars)</td></tr><tr><td>Long-term debt, principal and interest payments</td><td>$11,883,096</td><td>$759,539</td><td>$1,943,750</td><td>$1,451,972</td><td>$7,727,835</td></tr><tr><td>Capital lease obligations</td><td>92,237</td><td>6,286</td><td>12,123</td><td>11,463</td><td>62,365</td></tr><tr><td>Operating leases(a)</td><td>811,899</td><td>57,405</td><td>106,693</td><td>101,485</td><td>546,316</td></tr><tr><td>Unconditional purchase obligations(b)</td><td>13,533,315</td><td>2,239,536</td><td>3,224,813</td><td>2,491,245</td><td>5,577,721</td></tr><tr><td>Other long-term obligations — WYCO investment</td><td>145,000</td><td>47,000</td><td>98,000</td><td>—</td><td>—</td></tr><tr><td>Other long-term obligations</td><td>202,045</td><td>25,388</td><td>47,579</td><td>46,116</td><td>82,962</td></tr><tr><td>Payments to vendors in process</td><td>113,183</td><td>113,183</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Short-term debt</td><td>626,300</td><td>626,300</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total contractual cash obligations(c)</td><td>$27,407,075</td><td>$3,874,637</td><td>$5,432,958</td><td>$4,102,281</td><td>$13,997,199</td></tr></table>

Question: Which section does Long-term debt, principal and interest payments reach the largest value?
Answer: Total