NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Union Pacific Corporation and Subsidiary Companies For purposes of this report, unless the context otherwise requires, all references herein to the “Corporation”, “UPC”, “we”, “us”, and “our” mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which will be separately referred to herein as “UPRR” or the “Railroad”.1.
Nature of Operations Operations and Segmentation – We are a Class I railroad that operates in the U. S.  We have 31,953 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and eastern U. S.  gateways and providing several corridors to key Mexican gateways.
We serve the western two-thirds of the country and maintain coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico.
Export and import traffic is moved through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders.
The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment.
Although revenues are analyzed by commodity group, we analyze the net financial results of the Railroad as one segment due to the integrated nature of our rail network.
The following table provides revenue by commodity group:
## Table 0 ##
Although our revenues are principally derived from customers domiciled in the U. S. , the ultimate points of origination or destination for some products transported are outside the U. S.  Basis of Presentation – The Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the U. S.  (GAAP) as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).2.
Significant Accounting Policies Principles of Consolidation – The Consolidated Financial Statements include the accounts of Union Pacific Corporation and all of its subsidiaries.
Investments in affiliated companies (20% to 50% owned) are accounted for using the equity method of accounting.
All intercompany transactions are eliminated.
We currently have no less than majority-owned investments that require consolidation under variable interest entity requirements.
Cash and Cash Equivalents – Cash equivalents consist of investments with original maturities of three months or less.
Accounts Receivable – Accounts receivable includes receivables reduced by an allowance for doubtful accounts.
The allowance is based upon historical losses, credit worthiness of customers, and current economic conditions.
Receivables not expected to be collected in one year and the associated allowances are classified as other assets in our Consolidated Statements of Financial Position.
Investments – Investments represent our investments in affiliated companies (20% to 50% owned) that are accounted for under the equity method of accounting and investments in companies (less than 20% owned) accounted for under the cost method of accounting.
Arrangement Contains a Lease and SFAS No.13, Accounting for Leases.
Future commitments under operating and capital leases for continuing operations are:
## Table 1 ##
(a) Amounts not included in purchase power agreement estimated future payments above.
(b) Purchase power agreement operating leases contractually expire through 2033.
WYCO — Xcel Energy has invested approximately $128 million as of Dec.  31 2008 for construction of WYCO’s High Plains gas pipeline and the related Totem gas storage facilities.
The High Plains gas pipeline began operations in 2008 and the Totem gas storage facilities are expected to begin operations in 2009.
The gas pipeline and storage facilities will be leased under a FERC-approved agreement to Colorado Interstate Gas Company, a subsidiary of El Paso Corporation.
Technology Agreements — Xcel Energy has a contract that extends through 2015 with International Business Machines Corp.  (IBM) for information technology services.
The contract is cancelable at Xcel Energy’s option, although there are financial penalties for early termination.
In 2008, Xcel Energy paid IBM $110.8 million under the contract and $0.2 million for other project business.
The contract also has a committed minimum payment each year from 2009 through September 2015.
Payments under this obligation are $19.9 million, $19.6 million, $19.1 million, $18.9 million, $18.7 million and $32.5 million for 2009 to 2013 and thereafter, respectively.
On Aug.  1, 2008, Xcel Energy entered into a contract with Accenture for information technology services, which begins on Feb.  1, 2009 and extends through 2014.
The contract is cancelable at Xcel Energy’s option, although there are financial penalties for early termination.
The contract also has a committed minimum payment each year from 2009 through 2014.
Payments under this obligation are $11.4 million, $11.6 million, $11.6 million, $11.8 million, $12.0 million and $12.3 million for 2009 to 2013 and thereafter, respectively.
Environmental Contingencies Xcel Energy and its subsidiaries have been, or are currently involved with, the cleanup of contamination from certain hazardous substances at several sites.
In many situations, the subsidiary involved believes it will recover some portion of these costs through insurance claims.
Additionally, where applicable, the subsidiary involved is pursuing, or intends to pursue, recovery from other potentially responsible parties (PRPs) and through the rate regulatory process.
New and changing federal and state environmental mandates can also create added financial liabilities for Xcel Energy and its subsidiaries, which are normally recovered through the rate regulatory process.
To the extent any costs are not recovered through the options listed above, Xcel Energy would be required to recognize an expense.
Site Remediation — Xcel Energy must pay all or a portion of the cost to remediate sites where past activities of its subsidiaries or other parties have caused environmental contamination.
Environmental contingencies could arise from various situations, including sites of former MGPs operated by Xcel Energy subsidiaries, predecessors, or other entities; and third-party sites, such as landfills, to which Xcel Energy is alleged to be a PRP that sent hazardous materials and wastes.
At Dec.  31, 2008, the liability for the cost of remediating these sites was estimated to be $71.3 million, of which $1.5 million was considered to be a current liability.
Accordingly, the recorded amounts of estimated future removal costs are considered regulatory liabilities under SFAS No.71.
Removal costs by entity are as follows at Dec.  31:
## Table 2 ##
Nuclear Insurance NSP-Minnesota’s public liability for claims resulting from any nuclear incident is limited to $12.5 billion under the Price-Anderson amendment to the Atomic Energy Act of 1954, as amended.
NSP-Minnesota has secured $300 million of coverage for its public liability exposure with a pool of insurance companies.
The remaining $12.2 billion of exposure is funded by the Secondary Financial Protection Program, available from assessments by the federal government in case of a nuclear accident.
NSP-Minnesota is subject to assessments of up to $117.5 million per reactor per accident for each of its three licensed reactors, to be applied for public liability arising from a nuclear incident at any licensed nuclear facility in the United States.
The maximum funding requirement is $17.5 million per reactor during any one year.
These maximum assessment amounts are both subject to inflation adjustment by the NRC and state premium taxes.
The NRC’s last adjustment was effective Oct.  29, 2008.
The next adjustment is due on or before Oct.  29, 2013.
NSP-Minnesota purchases insurance for property damage and site decontamination cleanup costs from Nuclear Electric Insurance Ltd.  (NEIL).
The coverage limits are $2.3 billion for each of NSP-Minnesota’s two nuclear plant sites.
NEIL also provides business interruption insurance coverage, including the cost of replacement power obtained during certain prolonged accidental outages of nuclear generating units.
Premiums are expensed over the policy term.
All companies insured with NEIL are subject to retroactive premium adjustments if losses exceed accumulated reserve funds.
Capital has been accumulated in the reserve funds of NEIL to the extent that NSP-Minnesota would have no exposure for retroactive premium assessments in case of a single incident under the business interruption and the property damage insurance coverage.
However, in each calendar year, NSP-Minnesota could be subject to maximum assessments of approximately $16.1 million for business interruption insurance and $29.7 million for property damage insurance if losses exceed accumulated reserve funds.
Legal Contingencies Lawsuits and claims arise in the normal course of business.
Management, after consultation with legal counsel, has recorded an estimate of the probable cost of settlement or other disposition of them.
The ultimate outcome of these matters cannot presently be determined.
Accordingly, the ultimate resolution of these matters could have a material adverse effect on Xcel Energy’s financial position and results of operations.
Gas Trading Litigation e prime is a wholly owned subsidiary of Xcel Energy.
Among other things, e prime was in the business of natural gas trading and marketing.
e prime has not engaged in natural gas trading or marketing activities since 2003.
Twelve lawsuits have been commenced against e prime and Xcel Energy (and NSP-Wisconsin, in one instance), alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices.
Xcel Energy, e prime, and NSP-Wisconsin deny these allegations and will vigorously defend against these lawsuits, including seeking dismissal and summary judgment.
The initial gas-trading lawsuit, a purported class action brought by wholesale natural gas purchasers, was filed in November 2003 in the United States District Court in the Eastern District of California.
e prime is one of several defendants named in the complaint.
This case is captioned Texas-Ohio Energy vs.  CenterPoint Energy et al.
The other eleven cases arising out of the same or similar set of facts are captioned Fairhaven Power Company vs.  EnCana Corporation et al.
; Ableman Art Glass vs.  EnCana Corporation et al.
; Utility Savings and Refund Services LLP vs.  Reliant Energy Services Inc.  et al.
; Sinclair Oil Corporation vs.  e prime and Xcel Energy Inc. ; Ever-Bloom Inc.  vs.  Xcel Energy Inc.  and e prime et al.
; Learjet, Inc.  vs.  e prime and Xcel Energy Inc et al.
; J. P.  Morgan Trust Company vs.  e prime and Xcel Energy Inc.  et al.
; Breckenridge Brewery vs.  e prime and Xcel Energy Inc.  et al.
; Missouri Public Service Commission vs.  e
Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category.
Those primarily include steam revenue, appliance repair services, nonutility real estate activities, revenues associated with processing solid waste into refuse-derived fuel and investments in rental housing projects that qualify for low-income housing tax credits.
To report income from continuing operations for regulated electric and regulated natural gas utility segments, Xcel Energy must assign or allocate all costs and certain other income.
In general, costs are: ?
Directly assigned wherever applicable; ?
Allocated based on cost causation allocators wherever applicable; and ?
Allocated based on a general allocator for all other costs not assigned by the above two methods.
The accounting policies of the segments are the same as those described in Note 1 to the consolidated financial statements.
## Table 3 ##
21.
Summarized Quarterly Financial Data (Unaudited) Due to the seasonality of Xcel Energy’s electric and natural gas sales, such interim results are not necessarily an appropriate base from which to project annual results.
Summarized quarterly unaudited financial data is as follows:
## Table 4 ##
Part IV Item 15 — Exhibits, Financial Statement Schedules 1.
Consolidated Financial Statements: Management Report on Internal Controls — For the year ended Dec.  31, 2008.
Reports of Independent Registered Public Accounting Firm — For the years ended Dec.  31, 2008, 2007 and 2006.
Consolidated Statements of Income — For the three years ended Dec.  31, 2008, 2007 and 2006.
Consolidated Statements of Cash Flows — For the three years ended Dec.  31, 2008, 2007 and 2006.
Consolidated Balance Sheets — As of Dec.  31, 2008 and 2007.2.
Schedule I — Condensed Financial Information of Registrant.
Schedule II — Valuation and Qualifying Accounts and Reserves for the years ended Dec.  31, 2008, 2007 and 2006.3.
Exhibits * Indicates incorporation by reference + Executive Compensation Arrangements and Benefit Plans Covering Executive Officers and Directors
## Table 5 ##
Xcel Energy

<table><tr><td><i>Millions</i></td><td><i>2010</i></td><td><i>2009</i></td><td><i>2008</i></td></tr><tr><td>Agricultural</td><td>$3,018</td><td>$2,666</td><td>$3,174</td></tr><tr><td>Automotive</td><td>1,271</td><td>854</td><td>1,344</td></tr><tr><td>Chemicals</td><td>2,425</td><td>2,102</td><td>2,494</td></tr><tr><td>Energy</td><td>3,489</td><td>3,118</td><td>3,810</td></tr><tr><td>Industrial Products</td><td>2,639</td><td>2,147</td><td>3,273</td></tr><tr><td>Intermodal</td><td>3,227</td><td>2,486</td><td>3,023</td></tr><tr><td>Total freight revenues</td><td>$16,069</td><td>$13,373</td><td>$17,118</td></tr><tr><td>Other revenues</td><td>896</td><td>770</td><td>852</td></tr><tr><td>Total operating revenues</td><td>$16,965</td><td>$14,143</td><td>$17,970</td></tr></table>
<table><tr><td> </td><td> Other Operating Leases</td><td> Purchase Power Agreement Operating Leases<sup>(a)(b)</sup></td><td> Total Operating Leases</td><td>Capital Leases</td></tr><tr><td> </td><td colspan="4">(Millions of Dollars)</td></tr><tr><td>2009</td><td>$26.1</td><td>$160.3</td><td>$186.4</td><td>$6.0</td></tr><tr><td>2010</td><td>22.9</td><td>157.4</td><td>180.3</td><td>5.8</td></tr><tr><td>2011</td><td>20.3</td><td>147.6</td><td>167.9</td><td>5.7</td></tr><tr><td>2012</td><td>17.2</td><td>144.4</td><td>161.6</td><td>5.5</td></tr><tr><td>2013</td><td>16.7</td><td>148.1</td><td>164.8</td><td>5.3</td></tr><tr><td>Thereafter</td><td>38.1</td><td>2,322.0</td><td>2,360.1</td><td>51.5</td></tr><tr><td>Total minimum obligation</td><td></td><td></td><td></td><td>79.8</td></tr><tr><td>Interest component of obligation</td><td></td><td></td><td></td><td>-36.4</td></tr><tr><td>Present value of minimum obligation</td><td></td><td></td><td></td><td>$43.4</td></tr></table>
<table><tr><td> </td><td> 2008</td><td> 2007</td></tr><tr><td> </td><td colspan="2"> (Millions of Dollars) </td></tr><tr><td>NSP-Minnesota</td><td>$354</td><td>$342</td></tr><tr><td>NSP-Wisconsin</td><td>96</td><td>94</td></tr><tr><td>PSCo</td><td>379</td><td>374</td></tr><tr><td>SPS</td><td>96</td><td>96</td></tr><tr><td>Total Xcel Energy</td><td>$925</td><td>$906</td></tr></table>
<table><tr><td> </td><td> Regulated Electric</td><td> Regulated Natural Gas</td><td>All Other</td><td>Reconciling Eliminations</td><td> Consolidated Total</td></tr><tr><td> </td><td colspan="5"> (Thousands of Dollars) </td></tr><tr><td> 2008</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues from external customers</td><td>$8,682,993</td><td>$2,442,988</td><td>$77,175</td><td>$—</td><td>$11,203,156</td></tr><tr><td>Intersegment revenues</td><td>973</td><td>6,793</td><td>—</td><td>-7,766</td><td>—</td></tr><tr><td>Total revenues</td><td>$8,683,966</td><td>$2,449,781</td><td>$77,175</td><td>$-7,766</td><td>$11,203,156</td></tr><tr><td>Depreciation and amortization</td><td>$715,695</td><td>$99,306</td><td>$13,378</td><td>$—</td><td>$828,379</td></tr><tr><td>Interest charges and financing costs</td><td>352,083</td><td>45,819</td><td>131,371</td><td>-15,392</td><td>513,881</td></tr><tr><td>Income tax expense (benefit)</td><td>345,543</td><td>73,647</td><td>-80,504</td><td>—</td><td>338,686</td></tr><tr><td>Income (loss) from continuing operations</td><td>$552,300</td><td>$129,298</td><td>$27,346</td><td>$-63,224</td><td>$645,720</td></tr><tr><td> 2007</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues from external customers</td><td>$7,847,992</td><td>$2,111,732</td><td>$74,446</td><td>$—</td><td>$10,034,170</td></tr><tr><td>Intersegment revenues</td><td>1,000</td><td>16,680</td><td>—</td><td>-17,680</td><td>—</td></tr><tr><td>Total revenues</td><td>$7,848,992</td><td>$2,128,412</td><td>$74,446</td><td>$-17,680</td><td>$10,034,170</td></tr><tr><td>Depreciation and amortization</td><td>$695,571</td><td>$96,323</td><td>$13,837</td><td>$—</td><td>$805,731</td></tr><tr><td>Interest charges and financing costs</td><td>318,937</td><td>43,985</td><td>180,757</td><td>-14,834</td><td>528,845</td></tr><tr><td>Income tax expense (benefit)</td><td>343,184</td><td>50,150</td><td>-98,850</td><td>—</td><td>294,484</td></tr><tr><td>Income (loss) from continuing operations</td><td>$554,670</td><td>$108,054</td><td>$-22,583</td><td>$-64,242</td><td>$575,899</td></tr><tr><td> 2006</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues from external customers</td><td>$7,608,018</td><td>$2,155,999</td><td>$76,287</td><td>$—</td><td>$9,840,304</td></tr><tr><td>Intersegment revenues</td><td>820</td><td>12,296</td><td>—</td><td>-13,116</td><td>—</td></tr><tr><td>Total revenues</td><td>$7,608,838</td><td>$2,168,295</td><td>$76,287</td><td>$-13,116</td><td>$9,840,304</td></tr><tr><td>Depreciation and amortization</td><td>$695,321</td><td>$91,965</td><td>$15,612</td><td>$—</td><td>$802,898</td></tr><tr><td>Interest charges and financing costs</td><td>302,114</td><td>44,965</td><td>133,558</td><td>-24,605</td><td>456,032</td></tr><tr><td>Income tax expense (benefit)</td><td>283,552</td><td>37,656</td><td>-139,797</td><td>—</td><td>181,411</td></tr><tr><td>Income (loss) from continuing operations</td><td>$503,119</td><td>$70,609</td><td>$51,570</td><td>$-56,617</td><td>$568,681</td></tr></table>
<table><tr><td> </td><td colspan="4"> Quarter Ended</td></tr><tr><td> </td><td>March 31, 2008</td><td> June 30, 2008</td><td> Sept. 30, 2008</td><td> Dec. 31, 2008</td></tr><tr><td> </td><td colspan="4"> (Thousands of Dollars, except per share amounts) </td></tr><tr><td>Operating revenues</td><td>$3,028,388</td><td>$2,615,515</td><td>$2,851,680</td><td>$2,707,573</td></tr><tr><td>Operating income</td><td>330,118</td><td>259,836</td><td>447,994</td><td>352,843</td></tr><tr><td>Income from continuing operations</td><td>153,994</td><td>105,473</td><td>222,695</td><td>163,558</td></tr><tr><td>Discontinued operations — income (loss)</td><td>-877</td><td>99</td><td>94</td><td>518</td></tr><tr><td>Net income</td><td>153,117</td><td>105,572</td><td>222,789</td><td>164,076</td></tr><tr><td>Earnings available to common shareholders</td><td>152,057</td><td>104,512</td><td>221,729</td><td>163,015</td></tr><tr><td>Earnings per share total — basic</td><td>$0.35</td><td>$0.24</td><td>$0.51</td><td>$0.36</td></tr><tr><td>Earnings per share total — diluted</td><td>0.35</td><td>0.24</td><td>0.51</td><td>0.36</td></tr></table>
<table><tr><td>1.</td><td>Consolidated Financial Statements:</td></tr><tr><td></td><td>Management Report on Internal Controls — For the year ended Dec. 31, 2008.</td></tr><tr><td></td><td>Reports of Independent Registered Public Accounting Firm — For the years ended Dec. 31, 2008, 2007 and 2006.</td></tr><tr><td></td><td>Consolidated Statements of Income — For the three years ended Dec. 31, 2008, 2007 and 2006.</td></tr><tr><td></td><td>Consolidated Statements of Cash Flows — For the three years ended Dec. 31, 2008, 2007 and 2006.</td></tr><tr><td></td><td>Consolidated Balance Sheets — As of Dec. 31, 2008 and 2007.</td></tr><tr><td>2.</td><td>Schedule I — Condensed Financial Information of Registrant.</td></tr><tr><td></td><td>Schedule II — Valuation and Qualifying Accounts and Reserves for the years ended Dec. 31, 2008, 2007 and 2006.</td></tr><tr><td>3.</td><td>Exhibits</td></tr></table>

Question: As As the chart 3 shows,which year is the value of Total revenues for Regulated Natural Gas the highest?
Answer: 2008