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Borrowings and Other Financing Instruments
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings and Other Financing Instruments
Short-Term Borrowings
NSP-Minnesota meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool.
Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc.
Money pool borrowings:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2021Year Ended Dec. 31
202120202019
Borrowing limit$250 $250 $250 $250 
Amount outstanding at period end— — — — 
Average amount outstanding— 6 3 32 
Maximum amount outstanding— 236 116 250 
Weighted average interest rate, computed on a daily basisN/A0.07 %1.53 %2.05 %
Weighted average interest rate at period endN/AN/AN/AN/A
Commercial Paper — Commercial paper outstanding:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2021Year Ended Dec. 31
202120202019
Borrowing limit$500 $500 $500 $500 
Amount outstanding at period end— — 179 30 
Average amount outstanding— 26 10 71 
Maximum amount outstanding13 317 179 317 
Weighted average interest rate, computed on a daily basis0.15 %0.18 %1.25 %2.59 %
Weighted average interest rate at end of periodN/AN/A0.18 2.05 
Letters of Credit — NSP-Minnesota uses letters of credit, typically with terms of one year, to provide financial guarantees for certain operating obligations. At Dec. 31, 2021 and 2020, there were $9 million and $10 million of letters of credit outstanding under the credit facility, respectively. The contract amounts of these letters of credit approximate their fair value and are subject to fees.
Credit Facility — In order to use commercial paper programs to fulfill short-term funding needs, NSP-Minnesota must have revolving credit facilities in place at least equal to the amount of their respective commercial paper borrowing limits and cannot issue commercial paper exceeding available capacity under these credit facilities. The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.
Features of NSP-Minnesota’s credit facility:
Debt-to-Total Capitalization Ratio (a)
Amount Facility May Be Increased (millions of dollars)
Additional Periods for Which a One-Year Extension May Be Requested (b)
20212020
47 %47 %$100 2 
(a)    The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%.
(b)    All extension requests are subject to majority bank group approval.
The credit facility has a cross-default provision that NSP-Minnesota would be in default on its borrowings under the facility if it or any of its subsidiaries whose total assets exceed 15% of NSP-Minnesota’s consolidated total assets, default on indebtedness in an aggregate principal amount exceeding $75 million.
If NSP-Minnesota does not comply with the covenant, an event of default may be declared, and if not remedied, any outstanding amounts due under the facility can be declared due by the lender. As of Dec. 31, 2021, NSP-Minnesota was in compliance with all financial covenants on its debt agreements.
NSP-Minnesota had the following committed credit facility available as of Dec. 31, 2021 (in millions of dollars):
Credit Facility (a)
Drawn (b)
Available
$500 $9 $491 
(a)This credit facility matures in June 2024.
(b)Includes outstanding commercial paper and letters of credit.
All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Minnesota had no direct advances on the facility outstanding at Dec. 31, 2021 and 2020.
Bilateral Credit Agreement — In April 2021, NSP-Minnesota’s uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit.
As of Dec. 31, 2021, NSP-Minnesota had $45 million outstanding letters of credit under the $75 million Bilateral Credit Agreement.
Long-Term Borrowings and Other Financing Instruments
Generally, all property of NSP-Minnesota is subject to the lien of its first mortgage indenture. Debt premiums, discounts and expenses are amortized over the life of the related debt. The premiums, discounts and expenses for refinanced debt are deferred and amortized over the life of the new issuance.
Long term debt obligations for NSP-Minnesota as of Dec. 31 (in millions of dollars):
Financing InstrumentInterest RateMaturity Date20212020
First mortgage bonds2.15 %Aug. 15, 2022$300 $300 
First mortgage bonds2.60 May 15, 2023400 400 
First mortgage bonds7.125 July 1, 2025250 250 
First mortgage bonds6.50 March 1, 2028150 150 
First mortgage bonds (a)
2.25 April 1, 2031425 — 
First mortgage bonds5.25 July 15, 2035250 250 
First mortgage bonds6.25 June 1, 2036400 400 
First mortgage bonds6.20 July 1, 2037350 350 
First mortgage bonds5.35 Nov. 1, 2039300 300 
First mortgage bonds4.85 Aug. 15, 2040250 250 
First mortgage bonds3.40 Aug. 15, 2042500 500 
First mortgage bonds4.125 May 15, 2044300 300 
First mortgage bonds4.00 Aug. 15, 2045300 300 
First mortgage bonds3.60 May 15, 2046350 350 
First mortgage bonds3.60 Sept. 15, 2047600 600 
First mortgage bonds2.90 March 1, 2050600 600 
First mortgage bonds (b)
2.60 June 1, 2051700 700 
First mortgage bonds (a)
3.20 April 1, 2052425 — 
Other long-term debt3 — 
Unamortized discount(44)(42)
Unamortized debt issuance cost(62)(54)
Current maturities(300)— 
Total long-term debt$6,447 $5,904 
(a)2021 financing.
(b)2020 financing.
Maturities of long-term debt are as follows:
(Millions of Dollars)
2022$300 
2023400 
2024— 
2025250 
2026— 
Deferred Financing Costs — Deferred financing costs of approximately $62 million and $54 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt at Dec. 31, 2021 and 2020, respectively.
Dividend Restrictions — NSP-Minnesota’s dividends are subject to the FERC’s jurisdiction, which prohibits the payment of dividends out of capital accounts. Dividend payments are solely to be paid from retained earnings.
NSP-Minnesota’s state regulatory commissions additionally impose dividend limitations, which are more restrictive than those imposed by the FERC.
Requirements and actuals as of Dec. 31, 2021:
Equity to Total
Capitalization Ratio
Required Range 		Equity to Total Capitalization Ratio Actual
LowHigh2021
47.2 %57.6 %52.9 %
Unrestricted Retained EarningsTotal CapitalizationLimit on Total Capitalization
$1,558  million$14,321  million$15,332  million