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Fair Value of Financial Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 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:
June 30, 2022
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Cash equivalents$53 $53 $— $— $— $53 
Commingled funds835 — — — 1,209 1,209 
Debt securities668 — 615 6 — 621 
Equity securities407 971 1 — — 972 
Total$1,963 $1,024 $616 $6 $1,209 $2,855 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $50 million of other investments, including the rabbi trust.
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 other investments, including the rabbi trust.
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 June 30, 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$3 $190 $232 $196 $621 
Gross Notional Amounts of Commodity Forwards, Options, and FTRs
Gross notional amounts of commodity forwards, options and FTRs:
(Amounts in Millions) (a)(b)
June 30, 2022Dec. 31, 2021
Megawatt hours of electricity76 57 
Million British thermal units of natural gas106 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
Impact of Derivative Activity —
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)Regulatory (Assets) and Liabilities
Three Months Ended June 30, 2022
Other derivative instruments
Electric commodity$7 
Natural gas commodity$(1)
Total$6 
Six Months Ended June 30, 2022
Other derivative instruments
Electric commodity$6 
Natural gas commodity2 
Total$8 
Three Months Ended June 30, 2021
Other derivative instruments
Electric commodity$3 
Natural gas commodity$1 
Total$4 
Six Months Ended June 30, 2021
Other derivative instruments
Electric commodity$3 
Natural gas commodity2 
Total$5 

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 June 30, 2022
Other derivative instruments
Commodity trading$— $— $5 
(b)
Electric commodity— (1)
(c)
— 
Total$— $(1)$5 
Six Months Ended June 30, 2022
Other derivative instruments
Commodity trading$— $— $6 
(b)
Electric commodity— (3)
(c)
— 
Natural gas commodity— 2 
(d)
(5)
(d)(e)
Total$— $(1)$1 
Pre-Tax (Gains) Losses Reclassified
into Income During the Period from:		Pre-Tax Gains (Losses)
Recognized
During the Period in Income
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory
Assets and (Liabilities)
Three Months Ended June 30, 2021
Other derivative instruments
Commodity trading$— $— $2 
(b)
Electric commodity— (1)
(c)
— 
Total$— $(1)$2 
Six Months Ended June 30, 2021
Derivatives designated as cash flow hedges
Interest rate$1 
(a)
$— $— 
Total$1 $— $— 
Other derivative instruments
Commodity trading$— $— $33 
(b)
Electric commodity— (12)
(c)
— 
Natural gas commodity— 1 
(d)
(3)
(d)(e)
Total$— $(11)$30 
(a)Recorded to interest charges.
(b)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)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. All FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value.
(d)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.
(e)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:
June 30, 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$32 $128 $61 $221 $(160)$61 $9 $40 $22 $71 $(53)$18 
Electric commodity (b)
— — 144 144 (3)141 — — 30 30 (1)29 
Natural gas commodity— — — — — — — 6 — 6 — 6 
Total current derivative assets$32 $128 $205 $365 $(163)202 $9 $46 $52 $107 $(54)53 
PPAs (c)
2 — 
Current derivative instruments$204 $53 
Noncurrent derivative assets
Other derivative instruments:
Commodity trading$26 $49 $79 $154 $(81)$73 $6 $34 $35 $75 $(42)$33 
Total noncurrent derivative assets$26 $49 $79 $154 $(81)$73 $6 $34 $35 $75 $(42)$33 
June 30, 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$35 $172 $11 $218 $(134)$84 $13 $58 $4 $75 $(58)$17 
Electric commodity— — 3 3 (3)— — — 1 1 (1)— 
Natural gas commodity— 1 — 1 — 1 — 4 — 4 — 4 
Total current derivative liabilities$35 $173 $14 $222 $(137)85 $13 $62 $5 $80 $(59)21 
PPAs (c)
14 14 
Current derivative instruments$99 $35 
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading$47 $77 $40 $164 $(93)$71 $15 $48 $26 $89 $(53)$36 
Total noncurrent derivative liabilities$47 $77 $40 $164 $(93)71 $15 $48 $26 $89 $(53)36 
PPAs (c)
32 35 
Noncurrent derivative instruments$103 $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 June 30, 2022 and Dec. 31, 2021. At both June 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include no obligations to return cash collateral. At June 30, 2022 and Dec. 31, 2021 derivative assets and liabilities include rights to reclaim cash collateral of $12 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)Amounts relate to FTR instruments administered by MISO (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income.
(c)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 and six months ended June 30, 2022 and 2021:
Three Months Ended June 30
(Millions of Dollars)20222021
Balance at April 1$76 $12 
Purchases/Issuances (a)
158 54 
Settlements (a)
(73)(19)
Net transactions recorded during the period:
Gains recognized in earnings (b)
41 33 
Net gains recognized as regulatory assets and liabilities (a)
28 12 
Balance at June 30$230 $92 
Six Months Ended June 30
(Millions of Dollars)20222021
Balance at Jan. 1$56 $(11)
Purchases/Issuances (a)
157 54 
Settlements (a)
(92)(26)
Net transactions recorded during the period:
Gains recognized in earnings (b)
91 63 
Net gains recognized as regulatory assets and liabilities (a)
18 12 
Balance at June 30$230 $92 
(a)Relates primarily to FTR instruments administered by MISO (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income.
(b)Relates to commodity trading and is subject to offsetting losses of derivative instruments categorized as levels 1 and 2 in the consolidated income statement.
Carrying Amount and Fair Value of Long-term Debt
Other financial instruments for which the carrying amount did not equal fair value:
June 30, 2022Dec. 31, 2021
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$6,940 $6,984 $6,747 $7,761