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Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Asset Retirement Obligations
NSP-Minnesota’s AROs were as follows:
2021
(Millions 
of Dollars)
Jan. 1, 2021
Amounts
Incurred
(a)
Accretion
Cash Flow Revisions (b)
Dec. 31, 2021 (c)
Electric
Nuclear$1,957 $— $99 $— $2,056 
Wind270 101 13 — 384 
Steam and other production67 6 2 (2)73 
Distribution16 — — — 16 
Natural gas
Transmission and distribution39 — 2 14 55 
Common
Miscellaneous1 — — — 1 
Total liability$2,350 $107 $116 $12 $2,585 
(a)Amounts incurred relate to the wind farms placed in service in 2021 (Blazing Star 2, Mower and Freeborn) and removal of a utility scale battery asset.
(b)In 2021, AROs were revised for changes in timing and estimates of cash flows. Changes in gas transmission and distribution AROs were primarily related to changes in labor rates coupled with increased gas line mileage and number of services.
(c)There were no ARO amounts settled in 2021.
2020
(Millions 
of Dollars)
Jan. 1, 2020
Amounts
Incurred
(a)
Amounts
Settled
(b)
Accretion
Cash Flow Revisions
(c)
Dec. 31, 2020
Electric
Nuclear$2,068 $— $— $105 $(216)$1,957 
Wind113 90 — 7 60 270 
Steam and other production47 — (3)2 21 67 
Distribution15 — — 1 — 16 
Miscellaneous— — — — — — 
Natural gas
Transmission and distribution36 — — 2 1 39 
Common
Miscellaneous1 — — — — 1 
Total liability$2,280 $90 $(3)$117 $(134)$2,350 
(a)Amounts incurred relate to the wind farms placed in service in 2020 (Blazing Star 1, Crowned Ridge, Jeffers and Community Wind North).
(b)Amounts settled related to closure of certain ash containment facilities.
(c)In 2020, AROs were revised for changes in timing and estimates of cash flows. Revisions in the nuclear AROs were driven by reductions in spent fuel cooling time requirements in the nuclear triennial filing coupled with decreasing interest rates. Changes in wind AROs were driven by new dismantling studies. Revisions in steam and other production AROs primarily related to changes in cost estimates for remediation of ash containment facilities.
Funded Status of Nuclear Decommissioning Obligation The following amounts were prepared on a regulatory basis and not directly recorded in the financial statements as an ARO.
Regulatory Basis
(Millions of Dollars)20212020
Estimated decommissioning cost obligation from most recently
     approved study (in 2014 dollars)
$3,012 $3,012 
Effect of escalating costs1,006 844 
Estimated decommissioning cost obligation (in current dollars)4,018 3,856 
Effect of escalating costs to payment date7,187 7,349 
Estimated future decommissioning costs (undiscounted)11,205 11,205 
Effect of discounting obligation (using average risk-free interest
    rate of 1.96% and 1.64% for 2021 and 2020, respectively)
(4,651)(4,181)
Discounted decommissioning cost obligation$6,554 $7,024 
Assets held in external decommissioning trust$3,256 $2,777 
Underfunding of external decommissioning fund compared to
     the discounted decommissioning obligation
3,298 4,247 
Reconciliation of discounted decommissioning cost obligation - regulated basis to the ARO recordfed in
Reconciliation of the discounted decommissioning cost obligation - regulated basis to the ARO recorded in accordance with GAAP:
(Millions of Dollars)20212020
Discounted decommissioning cost obligation - regulated basis$6,554 $7,024 
Differences in discount rate and market risk premium(2,209)(2,628)
O&M costs not included for GAAP(1,584)(1,734)
ARO differences between 2020 and 2014 cost studies(705)(705)
Nuclear production decommissioning ARO - GAAP$2,056 $1,957 
Nuclear Decommissioning Expenses Recognized as Result of Regulation
Decommissioning expenses recognized as a result of regulation:
(Millions of Dollars)202120202019
Annual decommissioning recorded as depreciation expense: (a) (b)
$22 $20 $20 
(a)Decommissioning expense does not include depreciation of the capitalized nuclear asset retirement costs.
(b)Decommissioning expenses in 2021, 2020 and 2019 include Minnesota’s retail jurisdiction annual funding requirement of approximately $14 million.
Assets and Liabilities, Lessee [Table Text Block]
Operating lease ROU assets:
(Millions of Dollars)Dec. 31, 2021Dec. 31, 2020
PPAs$556 $558 
Other74 74 
Gross operating lease ROU assets630 632 
Accumulated amortization(222)(144)
Net operating lease ROU assets$408 $488 
Lease, Cost [Table Text Block]
Components of lease expense:
(Millions of Dollars)202120202019
Operating leases
PPA capacity payments$96 $89 $76 
Other operating leases (a)
8 8 9 
Total operating lease expense (b)
$104 $97 $85 
(a)Includes short-term lease expense of $2 million, $2 million and $1 million for 2021, 2020 and 2019, respectively.
(b)PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power.
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
Commitments under operating leases as of Dec. 31, 2021:
(Millions of Dollars)
PPA (a) (b)
Operating
Leases
Other Operating
Leases
Total
Operating
Leases
2022$96 $9 $105 
202398 12 110 
2024100 7 107 
202580 7 87 
202640 7 47 
Thereafter— 31 31 
Total minimum obligation414 73 487 
Interest component of obligation(32)(12)(44)
Present value of minimum obligation$382 $61 443 
Less current portion(90)
Noncurrent operating lease liabilities$353 
Weighted-average remaining lease term in years8.5
(a)Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs.
(b)PPA operating leases contractually expire at various dates through 2039.
Estimated Minimum Purchases Under Fuel Contracts
Estimated minimum purchases for these contracts as of Dec. 31, 2021:
(Millions of Dollars)CoalNuclear fuelNatural gas
supply
Natural gas
storage and
transportation
2022$219 $89 $95 $128 
202379 109 — 114 
202448 82 — 108 
20251 119 — 98 
20261 29 — 97 
Thereafter1 309 — 107 
Total (a)
$349 $737 $95 $652 
(a)Includes amounts allocated to NSP-Wisconsin through intercompany charges.
Estimated Future Payments for Capacity and Energy Pursuant to Purchased Power Agreements
At Dec. 31, 2021, the estimated future payments for capacity and energy that NSP-Minnesota is obligated to purchase pursuant to these executory contracts, subject to availability, were as follows:
(Millions of Dollars)
Capacity
Energy (a)
2022$60 $165 
202361 169 
202463 174 
202526 53 
20269 10 
Thereafter10 38 
Total (b)
$229 $609 
(a)Excludes contingent energy payments for renewable energy PPAs.
(b)Includes amounts allocated to NSP-Wisconsin through intercompany charges.