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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block] NSP-Minnesota is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:
Tax Year(s)Expiration
2014 - 2016December 2022
2018September 2022
Reconciliation of Unrecognized Tax Benefits
Unrecognized tax benefits - permanent vs temporary:
(Millions of Dollars)Dec. 31, 2021Dec. 31, 2020
Unrecognized tax benefit — Permanent tax positions$23 $21 
Unrecognized tax benefit — Temporary tax positions3 3 
Total unrecognized tax benefit$26 $24 
Changes in unrecognized tax benefits:
(Millions of Dollars)202120202019
Balance at Jan. 1$24 $20 $17 
Additions based on tax positions related to the current year2 2 3 
Reductions based on tax positions related to the current year— — (1)
Additions for tax positions of prior years— 16 1 
Reductions for tax positions of prior years— (14)— 
Balance at Dec. 31$26 $24 $20 
Tax Benefits Associated with NOL and Tax Credit Carryforwards Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:
(Millions of Dollars)Dec. 31, 2021Dec. 31, 2020
NOL and tax credit carryforwards$(13)$(11)
Interest Payable related to Unrecognized Tax Benefits
Interest payable related to unrecognized tax benefits:
(Millions of Dollars)202120202019
Payable for interest related to unrecognized tax benefits at Jan. 1$(2)$(2)$(1)
Interest expense related to unrecognized tax benefits— — (1)
Payable for interest related to unrecognized tax benefits at Dec. 31$(2)$(2)$(2)
NOL and Tax Credit Carryforwards NOL amounts represent the tax loss that is carried forward and tax credits represent the deferred tax asset. NOL and tax credit carryforwards as of Dec. 31 were as follows:
(Millions of Dollars)20212020
Federal NOL carryforward$77 $— 
Federal tax credit carryforwards704 543 
State NOL carryforwards344 151 
Valuation allowances for state NOL carryforwards(1)(1)
State tax credit carryforwards, net of federal detriment (a)
78 71 
Valuation allowances for state credit carryforwards, net of federal benefit (b)
(64)(59)
(a)State tax credit carryforwards are net of federal detriment of $21 million and $19 million as of Dec. 31, 2021 and 2020, respectively.
(b)Valuation allowances for state tax credit carryforwards were net of federal benefit of $17 million and $16 million as of Dec. 31, 2021 and 2020, respectively.
Schedule of Effective Income Tax Rate Reconciliation Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense.
Effective income tax rate for years ended Dec. 31:
202120202019
Federal statutory rate21.0 %21.0 %21.0 %
State income tax on pretax income, net of federal tax effect7.0 7.0 7.1 
Increases (decreases) in tax from:
Wind PTCs(27.8)(19.3)(11.8)
Plant regulatory differences (a)
(8.1)(7.2)(7.4)
Other tax credits, net NOL & tax credit allowances(1.4)(1.2)(1.5)
Change in unrecognized tax benefits0.5 1.0 0.5 
NOL Carryback— (2.1)— 
Other, net0.2 (0.2)0.1 
Effective income tax rate(8.6)%(1.0)%8.0 %
(a)Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions
Schedule of Components of Income Tax Expense (Benefit)
Components of income tax expense for years ended Dec. 31:
(Millions of Dollars)202120202019
Current federal tax (benefit) expense$(10)$41 $80 
Current state tax (benefit) expense(1)12 8 
Current change in unrecognized tax expense (benefit)1 9 (1)
Deferred federal tax benefit(87)(102)(86)
Deferred state tax expense49 38 43 
Deferred change in unrecognized tax expense (benefit)2 (3)4 
Deferred ITCs(2)(1)(1)
Total income tax (benefit) expense$(48)$(6)$47 
Components of deferred income tax expense as of Dec. 31:
(Millions of Dollars)202120202019
Deferred tax expense excluding items below$109 $61 97 
Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities(145)(127)(135)
Tax expense allocated to other comprehensive income, adoption of ASC Topic 326, and other— (1)(1)
Deferred tax benefit$(36)$(67)$(39)
Schedule of Deferred Tax Assets and Liabilities
Components of the net deferred tax liability as of Dec. 31:
(Millions of Dollars)2021
2020 (a)
Deferred tax liabilities:
Differences between book and tax bases of property$2,679 $2,482 
Regulatory assets260 270 
Operating lease assets123 147 
Deferred fuel costs92 7 
Pension expense73 72 
Other13 7 
Total deferred tax liabilities$3,240 $2,985 
Deferred tax assets:
Tax credit carryforward$782 $614 
Regulatory Liabilities325 349 
Operating lease liabilities123 147 
NOL and tax credit valuation allowances(64)(59)
Other employee benefits32 38 
NOL carryforward43 12 
Deferred ITCs5 5 
Other45 39 
Total deferred tax assets$1,291 $1,145 
Net deferred tax liability$1,949 $1,840 
(a)Prior periods have been reclassified to conform to current year presentation.