XML 34 R25.htm IDEA: XBRL DOCUMENT v3.22.1
Fair Value of Financial Assets and Liabilities (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Cost and Fair Value of Nuclear Decommissioning Fund Investments
Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:
March 31, 2022
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Cash equivalents$80 $80 $— $— $— $80 
Commingled funds871 — — — 1,258 1,258 
Debt securities626 — 606 10 — 616 
Equity securities409 1,159 1 — — 1,160 
Total$1,986 $1,239 $607 $10 $1,258 $3,114 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $53 million of rabbi trust assets and other miscellaneous investments.
Dec. 31, 2021
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Cash equivalents$64 $64 $— $— $— $64 
Commingled funds856 — — — 1,294 1,294 
Debt securities631 — 666 9 — 675 
Equity securities411 1,222 1 — — 1,223 
Total$1,962 $1,286 $667 $9 $1,294 $3,256 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $52 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, 2022:
Final Contractual Maturity
(Millions of Dollars)Due in 1 year or LessDue in 1 to 5 YearsDue in 5 to 10 YearsDue after 10 YearsTotal
Debt securities$2 $142 $193 $279 $616 
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, 2022
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3Total
Rabbi Trusts (a)
Mutual funds$10 $12 $— $— $12 
Total$10 $12 $— $— $12 
Dec. 31, 2021
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3Total
Rabbi Trusts (a)
Mutual funds$10 $13 $— $— $13 
Total$10 $13 $— $— $13 
(a)    Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets.
Gross Notional Amounts of Commodity Forwards, Options, and FTRs
Gross notional amounts of commodity forwards, options and FTRs:
(Amounts in Millions) (a)(b)
March 31, 2022Dec. 31, 2021
Megawatt hours of electricity40 57 
Million British thermal units of natural gas86 85 
(a)Amounts are not reflective of net positions in the underlying commodities.
(b)Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income mpact of Derivative Activity —
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory (Assets) and Liabilities
Three Months Ended March 31, 2022
Other derivative instruments
Natural gas commodity$— $2 
Total$— $2 
Three Months Ended March 31, 2021
Other derivative instruments
Natural gas commodity$— $1 
Total$— $1 

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 LossRegulatory Assets and (Liabilities)
Three Months Ended March 31, 2022
Other derivative instruments
Commodity trading$— $— $1 
(a)
Electric commodity— (1)
(b)
— 
Natural gas commodity— 1 
(c)
(5)
(c)(d)
Total$— $— $(4)
Pre-Tax (Gains) Losses Reclassified
into Income During the Period from:		Pre-Tax Gains (Losses)
Recognized
During the Period in Income
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory
Assets and (Liabilities)
Three Months Ended March 31, 2021
Other derivative instruments
Commodity trading$— $— $31 
(a)
Electric commodity— (1)
(b)
— 
Natural gas commodity— 1 
(c)
(3)
(c)(d)
Total$— $— $28 
(a)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.
(b)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.
(c)Settlement losses related to natural gas operations are recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.
(d)Relates primarily to option premium amortization.
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 were as follows:
March 31, 2022Dec. 31, 2021
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative assets
Other derivative instruments:
Commodity trading$26 $76 $53 $155 $(114)$41 $9 $40 $22 $71 $(53)$18 
Electric commodity— — 10 10 — 10 — — 30 30 (1)29 
Natural gas commodity— — — — — — — 6 — 6 — 6 
Total current derivative assets$26 $76 $63 $165 $(114)51 $9 $46 $52 $107 $(54)53 
PPAs (b)
2 — 
Current derivative instruments$53 $53 
Noncurrent derivative assets
Other derivative instruments:
Commodity trading$17 $42 $63 $122 $(62)$60 $6 $34 $35 $75 $(42)$33 
Total noncurrent derivative assets$17 $42 $63 $122 $(62)$60 $6 $34 $35 $75 $(42)$33 
March 31, 2022Dec. 31, 2021
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative liabilities
Other derivative instruments:
Commodity trading$32 $113 $12 $157 $(114)$43 $13 $58 $4 $75 $(58)$17 
Electric commodity— — 1 1 (1)— — — 1 1 (1)— 
Natural gas commodity— — — — — — — 4 — 4 — 4 
Total current derivative liabilities$32 $113 $13 $158 $(115)43 $13 $62 $5 $80 $(59)21 
PPAs (b)
14 14 
Current derivative instruments$57 $35 
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading$34 $63 $37 $134 $(86)$48 $15 $48 $26 $89 $(53)$36 
Total noncurrent derivative liabilities$34 $63 $37 $134 $(86)48 $15 $48 $26 $89 $(53)36 
PPAs (b)
33 35 
Noncurrent derivative instruments$81 $71 
(a)NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets 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, 2022 and Dec. 31, 2021. At both March 31, 2022 and Dec. 31, 2021, derivative assets and liabilities include $15 million of obligations to return cash collateral. At March 31, 2022 and Dec. 31, 2021 derivative assets and liabilities include rights to reclaim cash collateral of $24 million and $16 million, respectively. 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 for the three months ended March 31, 2022 and 2021:
Three Months Ended March 31
(Millions of Dollars)20222021
Balance at Jan 1$56 $(11)
Settlements(19)(7)
Net transactions recorded during the period:
Gains recognized in earnings (a)
49 30 
Net losses recognized as regulatory assets and liabilities(10)— 
Balance at March 31$76 $12 
(a)Level 3 net gains recognized in earnings are subject to offsetting net losses of derivative instruments categorized as levels 1 and 2 in the income statement.
Carrying Amount and Fair Value of Long-term Debt
Other financial instruments for which the carrying amount did not equal fair value:
March 31, 2022Dec. 31, 2021
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$6,749 $6,984 $6,747 $7,761