Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Cost and Fair Value of Nuclear Decommissioning Fund Investments

	Dec. 31, 2019
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		NAV		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	33.4	$	33.4	$	—	$	—	$	—	$	33.4
Commingled funds	732.8		—		—		—		934.9		934.9
Debt securities	489.2		—		495.2		12.7		—		507.9
Equity securities	484.6		962.0		1.4		—		—		963.4
Total	$	1,740.0	$	995.4	$	496.6	$	12.7	$	934.9	$	2,439.6

^(a) 

Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $55.6 million of rabbi trust assets and miscellaneous investments.

Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:

	March 31, 2020
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		NAV		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	70.5	$	70.5	$	—	$	—	$	—	$	70.5
Commingled funds	755.8		—		—		—		843.0		843.0
Debt securities	514.4		—		488.2		13.2		—		501.4
Equity securities	435.5		726.2		1.1		—		—		727.3
Total	$	1,776.2	$	796.7	$	489.3	$	13.2	$	843.0	$	2,142.2

^(a) 

Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $54.0 million of rabbi trust assets and miscellaneous investments.

Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class

Contractual maturity dates of debt securities in the nuclear decommissioning fund as of March 31, 2020:

	Final Contractual Maturity
(Millions of Dollars)	Due in 1 Year or Less		Due in 1 to 5 Years		Due in 5 to 10 Years		Due after 10 Years		Total
Debt securities	$	11.3	$	81.2	$	205.0	$	203.9	$	501.4

Rabbi Trust Securities Amortized Cost and Fair Value Measured on Recurrring Basis [Table Text Block]

Cost and fair value of assets held in rabbi trusts:

	March 31, 2020
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Rabbi Trusts (a)
Cash equivalents	$	1.2	$	1.2	$	—	$	—	$	1.2
Mutual funds	11.4		11.2		—		—		11.2
Total	$	12.6	$	12.4	$	—	$	—	$	12.4

	Dec. 31, 2019
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Rabbi Trusts (a)
Cash equivalents	$	1.2	$	1.2	$	—	$	—	$	1.2
Mutual funds	11.4		13.1		—		—		13.1
Total	$	12.6	$	14.3	$	—	$	—	$	14.3

^(a) 

Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet.

Gross Notional Amounts of Commodity Forwards, Options, and FTRs

Gross notional amounts of commodity forwards, options and FTRs:

(Amounts in Millions) (a)(b)	March 31, 2020	Dec. 31, 2019
MWh of electricity	61.0	79.1
MMBtu of natural gas	98.5	77.8

^(a)  Amounts are not reflective of net positions in the underlying commodities.

^(b) 

Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.

Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income

mpact of derivative activity for Dec. 31, 2019, is as follows:

	Pre-Tax Fair Value Gains Recognized During the Period in:
(Millions of Dollars)	Accumulated Other Comprehensive Loss		Regulatory (Assets) and Liabilities
Three Months Ended March 31, 2019
Other derivative instruments
Electric commodity	$	—	$	5.3
Natural gas commodity	—		0.9
Total	$	—	$	6.2

	Pre-Tax (Gains) Losses Reclassified into Income During the Period from:							Pre-Tax Gains (Losses) Recognized During the Period in Income
(Millions of Dollars)	Accumulated Other Comprehensive Loss			Regulatory Assets and (Liabilities)
Three Months Ended March 31, 2020
Derivatives designated as cash flow hedges
Interest rate	$	0.3	(a)	$	—			$	—
Total	0.3			—				—
Other derivative instruments
Commodity trading	—			—				3.5			(b)
Electric commodity	—			(1.2		)	(c)	—
Natural gas commodity	—			1.1			(d)	(2.0		)	(d)
Total	—			(0.1		)		1.5
Three Months Ended March 31, 2019
Derivatives designated as cash flow hedges
Interest rate	0.3		(a)	—				—
Total	0.3			—				—
Other derivative instruments
Commodity trading	—			—				0.5			(b)
Electric commodity	—			0.7			(c)	—
Natural gas commodity	—			0.2			(d)	(1.3		)	(d)
Total	$	—		$	0.9			$	(0.8	)

^(a)  Amounts recorded to interest charges.

^(b)  Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue, as appropriate.

^(c)  Amounts are recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.

(d)

Amounts are recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level

Recurring Fair Value Measurements — NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis:

	March 31, 2020													Dec. 31, 2019
	Fair Value						Fair Value Total		Netting (a)					Fair Value						Fair Value Total		Netting (a)
(Millions of Dollars)	Level 1		Level 2		Level 3							Total		Level 1		Level 2		Level 3							Total
Current derivative assets
Other derivative instruments:
Commodity trading	$	3.0	$	48.0	$	15.8	$	66.8	$	(47.6	)	$	19.2	$	1.6	$	39.5	$	23.6	$	64.7	$	(42.1	)	$	22.6
Electric commodity	—		—		3.4		3.4		(0.3		)	3.1		—		—		8.7		8.7		(0.9		)	7.8
Natural gas commodity	—		—		—		—		—			—		—		2.1		—		2.1		—			2.1
Total current derivative assets	$	3.0	$	48.0	$	19.2	$	70.2	$	(47.9	)	$	22.3	$	1.6	$	41.6	$	32.3	$	75.5	$	(43.0	)	$	32.5
Noncurrent derivative assets
Other derivative instruments:
Commodity trading	$	9.9	$	31.2	$	21.4	$	62.5	$	(37.3	)	$	25.2	$	8.5	$	29.4	$	6.0	$	43.9	$	(34.8	)	$	9.1
Total noncurrent derivative assets	$	9.9	$	31.2	$	21.4	$	62.5	$	(37.3	)	25.2		$	8.5	$	29.4	$	6.0	$	43.9	$	(34.8	)	9.1
PPAs (b)												0.1													0.1
Noncurrent derivative instruments												$	25.3												$	9.2

	March 31, 2020													Dec. 31, 2019
	Fair Value						Fair Value Total		Netting (a)					Fair Value						Fair Value Total		Netting (a)
(Millions of Dollars)	Level 1		Level 2		Level 3							Total		Level 1		Level 2		Level 3							Total
Current derivative liabilities
Other derivative instruments:
Commodity trading	$	3.8	$	42.1	$	14.1	$	60.0	$	(47.6	)	$	12.4	$	2.2	$	42.1	$	15.0	$	59.3	$	(49.8	)	$	9.5
Electric commodity	—		—		0.3		0.3		(0.3		)	—		—		—		1.0		1.0		(1.0		)	—
Natural gas commodity	—		0.2		—		0.2		—			0.2		—		1.7		—		1.7		—			1.7
Total current derivative liabilities	$	3.8	$	42.3	$	14.4	$	60.5	$	(47.9	)	12.6		$	2.2	$	43.8	$	16.0	$	62.0	$	(50.8	)	11.2
PPAs (b)												13.8													13.8
Current derivative instruments												$	26.4												$	25.0
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading	$	2.4	$	44.1	$	23.4	$	69.9	$	(5.7	)	$	64.2	$	2.0	$	32.3	$	17.0	$	51.3	$	(3.3	)	$	48.0
Total noncurrent derivative liabilities	$	2.4	$	44.1	$	23.4	$	69.9	$	(5.7	)	64.2		$	2.0	$	32.3	$	17.0	$	51.3	$	(3.3	)	48.0
PPAs (b)												58.7													62.2
Noncurrent derivative instruments												$	122.9												$	110.2

^(a)  NSP-Minnesota nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2020 and Dec. 31, 2019. At both March 31, 2020 and Dec. 31, 2019, derivative assets and liabilities include $31.5 million of obligations to return cash collateral. At March 31, 2020, no derivative assets and liabilities include the rights to reclaim cash collateral and $7.9 million at Dec. 31, 2019. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

^(b) 

During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

Changes in Level 3 Commodity Derivatives

Changes in Level 3 commodity derivatives:

	Three Months Ended March 31
(Millions of Dollars)	2020			2019
Balance at Jan. 1	$	5.3		$	14.2
Purchases	—			—
Settlements	(11.7		)	(3.4		)
Net transactions recorded during the period:
Gains (losses) recognized in earnings (a)	6.2			(18.5		)
Net gains (losses) recognized as regulatory assets and liabilities	3.0			(2.4		)
Balance at March 31	$	2.8		$	(10.1	)

^(a) 

These amounts relate to commodity derivatives held at the end of the period.

Carrying Amount and Fair Value of Long-term Debt

Other financial instruments for which the carrying amount did not equal fair value:

	March 31, 2020				Dec. 31, 2019
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	5,522.5	$	6,264.9	$	5,521.3	$	6,296.5