10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-31387

Northern States Power Company

(Exact Name of Registrant as Specified in its Charter)

Minnesota	41-1967505
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

414 Nicollet Mall	Minneapolis	Minnesota	55401
(Address of Principal Executive Offices)			(Zip Code)

	(612)	330-5500
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at April 27, 2023
Common Stock, $0.01 par value	1,000,000 shares

Northern States Power Company meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to such Form 10-Q.

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION
Item 1 —	Financial Statements (Unaudited)	4
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Cash Flows	6
	Consolidated Balance Sheets	7
	Consolidated Statements of Common Stockholder’s Equity	8
	Notes to Consolidated Financial Statements	9
Item 2 —	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 4 —	Controls and Procedures	21
PART II	OTHER INFORMATION
Item 1 —	Legal Proceedings	21
Item 1A —	Risk Factors	21
Item 6 —	Exhibits	22
SIGNATURES		23

This Form 10-Q is filed by NSP-Minnesota. NSP-Minnesota is a wholly owned subsidiary of Xcel Energy Inc. Additional information on Xcel Energy is available in various filings with the SEC. This report should be read in its entirety.

Definitions of Abbreviations

Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)
NSP-Minnesota	Northern States Power Company, a Minnesota corporation
NSP System	The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota
NSP-Wisconsin	Northern States Power Company, a Wisconsin corporation
PSCo	Public Service Company of Colorado
SPS	Southwestern Public Service Company
Utility subsidiaries	NSP-Minnesota, NSP-Wisconsin, PSCo and SPS
Xcel Energy	Xcel Energy Inc. and its subsidiaries
Federal and State Regulatory Agencies
D.C. Circuit	United States Court of Appeals for the District of Columbia Circuit
DOC	Minnesota Department of Commerce
EPA	United States Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
MPUC	Minnesota Public Utilities Commission
OAG	Minnesota Office of Attorney General
SEC	Securities and Exchange Commission
Other
ALJ	Administrative Law Judge
AMT	Alternative minimum tax
C&I	Commercial and Industrial
CCR	Coal combustion residuals
CCR Rule	Final rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as nonhazardous waste
CEO	Chief executive officer
CERCLA	Comprehensive Environmental Response, Compensation, and Liability Act
CFO	Chief financial officer
CSPV	Crystalline Silicon Photovoltaic
CUB	Citizens Utility Board
ETR	Effective tax rate
FTR	Financial transmission right
GAAP	United States generally accepted accounting principles
GE	General Electric Company
IPP	Independent power producing entity
IRA	Inflation Reduction Act
MGP	Manufactured gas plant
MISO	Midcontinent Independent System Operator, Inc.
NAV	Net asset value
NOx	Nitrogen Oxides
O&M	Operating and maintenance
PFAS	Per- and Polyfluoroalkyl Substances
PPA	Power purchase agreement
PTC	Production tax credit
RFP	Request for proposal
ROE	Return on equity
RTO	Regional Transmission Organization
SMMPA	Southern Minnesota Municipal Power Agency
TOs	Transmission owners
Measurements
MW	Megawatts

Forward-Looking Statements

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, and expected impact on our results of operations, financial condition and cash flows of resettlement calculations and credit losses relating to certain energy transactions, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in NSP-Minnesota’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2022, and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of NSP-Minnesota to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

NSP-MINNESOTA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in millions)

	Three Months Ended March 31
	2023		2022
Operating revenues
Electric, non-affiliates	$	1,131	$	1,125
Electric, affiliates	125		129
Natural gas	400		434
Other	10		10
Total operating revenues	1,666		1,698
Operating expenses
Electric fuel and purchased power	505		529
Cost of natural gas sold and transported	297		336
Cost of sales — other	7		5
Operating and maintenance expenses	325		306
Conservation program expenses	31		49
Depreciation and amortization	262		252
Taxes (other than income taxes)	78		73
Total operating expenses	1,505		1,550
Operating income	161		148
Allowance for funds used during construction — equity	8		6
Interest charges and financing costs
Interest charges — includes other financing costs of $2	77		69
Allowance for funds used during construction — debt	(5)		(2)
Total interest charges and financing costs	72		67
Income before income taxes	97		87
Income tax benefit	(42)		(40)
Net income	$	139	$	127

See Notes to Consolidated Financial Statements

4

NSP-MINNESOTA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(amounts in millions)

	Three Months Ended March 31
	2023		2022
Net income	$	139	$	127
Other comprehensive income
Derivative instruments:
Net fair value decrease net of tax of $(1) and $—, respectively	(3)		—
Total other comprehensive loss	(3)		—
Total comprehensive income	$	136	$	127

See Notes to Consolidated Financial Statements

5

NSP-MINNESOTA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in millions)

	Three Months Ended March 31
	2023		2022
Operating activities
Net income	$	139	$	127
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	264		252
Nuclear fuel amortization	29		30
Deferred income taxes	(30)		(76)
Allowance for equity funds used during construction	(8)		(6)
Provision for bad debts	8		7
Changes in operating assets and liabilities:
Accounts receivable	(18)		(67)
Accrued unbilled revenues	112		64
Inventories	68		53
Other current assets	(29)		(5)
Accounts payable	(133)		(25)
Net regulatory assets and liabilities	157		168
Other current liabilities	44		65
Pension and other employee benefit obligations	(22)		(6)
Other, net	6		(7)
Net cash provided by operating activities	587		574
Investing activities
Capital/construction expenditures	(532)		(341)
Purchase of investment securities	(236)		(156)
Proceeds from the sale of investment securities	228		147
Investments in utility money pool arrangement	(5)		(538)
Repayments from utility money pool arrangement	—		443
Other, net	(2)		(1)
Net cash used in investing activities	(547)		(446)
Financing activities
Repayments of short-term borrowings, net	(87)		—
Capital contributions from parent	151		(7)
Dividends paid to parent	(122)		(146)
Net cash used in financing activities	(58)		(153)
Net change in cash, cash equivalents and restricted cash	(18)		(25)
Cash, cash equivalents and restricted cash at beginning of period	65		73
Cash, cash equivalents and restricted cash at end of period	$	47	$	48
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(69)	$	(73)
Cash paid for income taxes, net	(5)		(6)
Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	$	170	$	97
Inventory transfers to property, plant and equipment	9		6
Operating lease right-of-use assets	29		4
Allowance for equity funds used during construction	8		6

See Notes to Consolidated Financial Statements

6

NSP-MINNESOTA AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in millions, except share and per share data)

	March 31, 2023		Dec. 31, 2022
Assets
Current assets
Cash and cash equivalents	$	47	$	65
Accounts receivable, net	524		534
Accounts receivable from affiliates	25		45
Investments in money pool arrangements	5		—
Accrued unbilled revenues	260		372
Inventories	307		384
Regulatory assets	350		384
Derivative instruments	33		89
Prepayments and other	82		62
Total current assets	1,633		1,935
Property, plant and equipment, net	17,744		17,478
Other assets
Nuclear decommissioning fund and other investments	3,057		2,930
Regulatory assets	768		894
Derivative instruments	75		68
Operating lease right-of-use assets	327		324
Other	25		29
Total other assets	4,252		4,245
Total assets	$	23,629	$	23,658
Liabilities and Equity
Current liabilities
Current portion of long-term debt	$	400	$	400
Short-term debt	120		207
Accounts payable	489		619
Accounts payable to affiliates	58		89
Regulatory liabilities	195		191
Taxes accrued	325		272
Accrued interest	79		79
Dividends payable to parent	133		122
Derivative instruments	37		42
Operating lease liabilities	96		98
Other	244		227
Total current liabilities	2,176		2,346
Deferred credits and other liabilities
Deferred income taxes	1,663		1,666
Deferred investment tax credits	15		15
Regulatory liabilities	1,995		1,983
Asset retirement obligations	2,763		2,727
Derivative instruments	105		102
Pension and employee benefit obligations	133		155
Operating lease liabilities	259		256
Other	27		30
Total deferred credits and other liabilities	6,960		6,934
Commitments and contingencies
Capitalization
Long-term debt	6,543		6,542
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares outstanding at Mar. 31, 2023 and Dec. 31, 2022, respectively	—		—
Additional paid in capital	5,484		5,374
Retained earnings	2,487		2,480
Accumulated other comprehensive loss	(21)		(18)
Total common stockholder's equity	7,950		7,836
Total liabilities and equity	$	23,629	$	23,658

See Notes to Consolidated Financial Statements

7

NSP-MINNESOTA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER’S EQUITY (UNAUDITED)

(amounts in millions, except share data)

	Common Stock Issued					Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Three Months Ended March. 31, 2023 and 2022
Balance at Dec. 31, 2021	1,000,000	$	—	$	5,202	$	2,391	$	(20)	$	7,573
Net income						127				127
Dividends declared to parent						(167)				(167)
Balance at Mar. 31, 2022	1,000,000	$	—	$	5,202	$	2,351	$	(20)	$	7,533
Balance Dec. 31, 2022	1,000,000	$	—	$	5,374	$	2,480	$	(18)	$	7,836
Net income						139				139
Other comprehensive income								(3)		(3)
Dividends declared to parent						(132)				(132)
Contribution of capital by parent				110						110
Balance at Mar. 31, 2023	1,000,000	$	—	$	5,484	$	2,487	$	(21)	$	7,950
See Notes to Consolidated Financial Statements

8

NSP-MINNESOTA AND SUBSIDIARIES

Notes to Consolidated Financial Statements (UNAUDITED)

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Minnesota and its subsidiaries as of March 31, 2023 and Dec. 31, 2022; the results of NSP-Minnesota’s operations, including the components of net income and comprehensive income, and changes in stockholder’s equity for the three months ended March 31, 2023 and 2022; and NSP-Minnesota’s cash flows for the three months ended March 31, 2023 and 2022.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2023 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2022 balance sheet information has been derived from the audited 2022 consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022.

Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022, filed with the SEC on Feb. 23, 2023. Due to the seasonality of NSP-Minnesota’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.

1. Summary of Significant Accounting Policies

The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

2. Accounting Pronouncements

As of March 31, 2023, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on NSP-Minnesota’s consolidated financial statements.

3. Selected Balance Sheet Data

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Accounts receivable, net
Accounts receivable	$	571	$	580
Less allowance for bad debts	(47)		(46)
Accounts receivable, net	$	524	$	534

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Inventories
Materials and supplies	$	204	$	200
Fuel	91		103
Natural gas	12		81
Total inventories	$	307	$	384

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Property, plant and equipment, net
Electric plant	$	20,402	$	20,114
Natural gas plant	2,120		2,100
Common and other property	1,174		1,156
Plant to be retired (a)	632		646
Construction work in progress	799		907
Total property, plant and equipment	25,127		24,923
Less accumulated depreciation	(7,729)		(7,734)
Nuclear fuel	3,266		3,183
Less accumulated amortization	(2,920)		(2,894)
Property, plant and equipment, net	$	17,744	$	17,478

(a)Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King and are reported net of accumulated depreciation.

4. 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 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 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.

Money pool borrowings:

(Amounts in Millions, Except Interest Rates)	Three Months Ended March 31, 2023		Year Ended Dec. 31, 2022
Borrowing limit	$	250	$	250
Amount outstanding at period end	—		—
Average amount outstanding	—		—
Maximum amount outstanding	—		4
Weighted average interest rate, computed on a daily basis	N/A		3.87		%
Weighted average interest rate at period end	N/A		N/A

Commercial Paper — Commercial paper outstanding:

(Amounts in Millions, Except Interest Rates)	Three Months Ended March 31, 2023			Year Ended Dec. 31, 2022
Borrowing limit	$	700		$	700
Amount outstanding at period end	120			207
Average amount outstanding	230			21
Maximum amount outstanding	441			290
Weighted average interest rate, computed on a daily basis	4.75		%	4.14		%
Weighted average interest rate at period end	5.00			4.64

Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There were $15 million of letters of credit outstanding under the credit facility at March 31, 2023 and Dec. 31, 2022, respectively. Amounts approximate their fair value and are subject to fees.

9

Revolving Credit Facility — In order to issue its commercial paper, NSP-Minnesota must have a revolving credit facility equal or greater than the commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

NSP-Minnesota has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval.

At March 31, 2023, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Drawn (b)		Available
$	700	$	135	$	565

(a)Expires in September 2027.

(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 credit facility outstanding at March 31, 2023 and Dec. 31, 2022.

Bilateral Credit Agreement — In April 2023, 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 March 31, 2023, NSP-Minnesota had $53 million of outstanding letters of credit under the $75 million bilateral credit agreement.

5. Revenues

Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Minnesota’s operating revenues consisted of the following:

	Three Months Ended Mar. 31, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	358	$	207	$	9	$	574
C&I	543		173		—		716
Other	8		—		1		9
Total retail	909		380		10		1,299
Wholesale	104		—		—		104
Transmission	64		—		—		64
Interchange	125		—		—		125
Other	1		2		—		3
Total revenue from contracts with customers	1,203		382		10		1,595
Alternative revenue and other	53		18		—		71
Total revenues	$	1,256	$	400	$	10	$	1,666

	Three Months Ended Mar. 31, 2022
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	337	$	235	$	6	$	578
C&I	514		180		—		694
Other	9		—		4		13
Total retail	860		415		10		1,285
Wholesale	124		—		—		124
Transmission	61		—		—		61
Interchange	129		—		—		129
Other	6		2		—		8
Total revenue from contracts with customers	1,180		417		10		1,607
Alternative revenue and other	74		17		—		91
Total revenues	$	1,254	$	434	$	10	$	1,698

6. Income Taxes

Reconciliation between the statutory rate and ETR:

	Three Months Ended March 31
	2023		2022
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	7.0		7.0
Increases (decreases):
Wind PTCs (a)	(65.1)		(68.6)
Plant regulatory differences (b)	(6.2)		(5.7)
Other tax credits, net operating loss & tax credit allowances	(1.3)		(1.4)
Other (net)	1.3		1.7
Effective income tax rate	(43.3)	%	(46.0)	%

(a)Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.

(b)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 taxes are offset by corresponding revenue reductions.

7.    Fair Value of Financial Assets and Liabilities

Fair Value Measurements

Accounting guidance for fair value measurements and disclosures provides a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value.

•Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are actively traded instruments with observable actual trading prices.

•Level 2 — Pricing inputs are other than actual trading prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

•Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 include those valued with models requiring significant judgment or estimation.

10

Specific valuation methods include:

Investments in equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs. The investments in commingled funds may be redeemed for NAV with proper notice. Private equity commingled funds require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate commingled funds may be redeemed with proper notice, however, withdrawals may be delayed or discounted as a result of fund illiquidity.

Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities.

Interest rate derivatives — Fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts.

Commodity derivatives — Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contracts relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification.

Electric commodity derivatives held by NSP-Minnesota include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from an RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path.

The values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments. FTRs are recognized at fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction values of FTRs, these fair value measurements have been assigned a Level 3 classification.

Net congestion costs, including the impact of FTR settlements are shared through fuel and purchased energy cost recovery mechanisms. As such, the fair value of the unsettled instruments (i.e., derivative asset or liability) is offset/deferred as a regulatory asset or liability.

Non-Derivative Fair Value Measurements

The Nuclear Regulatory Commission requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning these facilities. The fund contains cash equivalents, debt securities, equity securities and other investments. NSP-Minnesota uses the MPUC approved asset allocation for the investment targets by asset class for the qualified trust.

NSP-Minnesota recognizes the costs of funding the decommissioning over the lives of the nuclear plants, assuming rate recovery of all costs. Realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota’s regulatory asset for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund are deferred as a component of the regulatory asset.

Unrealized gains for the nuclear decommissioning fund were $1 billion as of March 31, 2023 and Dec. 31, 2022, and unrealized losses were $61 million and $90 million as of March 31, 2023 and Dec. 31, 2022, respectively.

Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:

	March 31, 2023
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		NAV		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	44	$	44	$	—	$	—	$	—	$	44
Commingled funds	743		—		—		—		1,076		1,076
Debt securities	751		—		707		7		—		714
Equity securities	507		1,172		2		—		—		1,174
Total	$	2,045	$	1,216	$	709	$	7	$	1,076	$	3,008

(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $49 million of other investments, including the rabbi trust.

	Dec. 31, 2022
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		NAV		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	29	$	29	$	—	$	—	$	—	$	29
Commingled funds	803		—		—		—		1,178		1,178
Debt securities	738		—		669		6		—		675
Equity securities	406		999		1		—		—		1,000
Total	$	1,976	$	1,028	$	670	$	6	$	1,178	$	2,882

(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $48 million of other investments, including the rabbi trust.

For the three months ended March 31, 2023 and 2022, there were immaterial Level 3 nuclear decommissioning fund investments or transfer of amounts between levels.

Contractual maturity dates of debt securities in the nuclear decommissioning fund as of March 31, 2023:

	Final Contractual Maturity
(Millions of Dollars)	Due in 1 year or Less		Due in 1 to 5 Years		Due in 5 to 10 Years		Due after 10 Years		Total
Debt securities	$	1	$	220	$	254	$	239	$	714

Derivative Activities and Fair Value Measurements

NSP-Minnesota enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices.

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Interest Rate Derivatives — NSP-Minnesota enters into contracts that effectively fix the interest rate on a specified principal amount of a hypothetical future debt issuance. These financial swaps net settle based on changes in a specified benchmark interest rate, acting as a hedge of changes in market interest rates that will impact specified anticipated debt issuances. These derivative instruments are designated as cash flow hedges for accounting purposes, with changes in fair value prior to occurrence of the hedged transactions recorded as other comprehensive income.

At March 31, 2023, accumulated other comprehensive loss related to interest rate derivatives included $1 million of net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of March 31, 2023, NSP-Minnesota had unsettled interest swaps outstanding with a notional amount of $275 million.

For the financial impact of qualifying interest rate cash flow hedges on NSP-Minnesota’s accumulated other comprehensive loss included in the consolidated statements of common stockholder’s equity and in the consolidated statements of comprehensive income, see Note 10.

Wholesale and Commodity Trading — NSP-Minnesota conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy, energy-related instruments and natural gas-related instruments, including derivatives. NSP-Minnesota is allowed to conduct these activities within guidelines and limitations as approved by its risk management committee, comprised of management personnel not directly involved in the activities governed by this policy.

Results of derivative instrument transactions entered into for trading purposes are presented in the consolidated statements of income as electric revenues, net of any sharing with customers. These activities are not intended to mitigate commodity price risk associated with regulated electric and natural gas operations. Sharing of these margins is determined through state regulatory proceedings as well as the operation of the FERC-approved joint operating agreement.

Commodity Derivatives — NSP-Minnesota enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale and FTRs.

The most significant derivative positions outstanding at March 31, 2023 for this purpose relate to FTR instruments administered by MISO. These instruments are intended to offset the impacts of transmission system congestion. Higher congestion costs in recent years have led to an increase in the fair value of FTRs. Settlements of FTRs are shared with electric customers through fuel and purchased energy cost-recovery mechanisms.

When NSP-Minnesota enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers, the instruments are not typically designated as qualifying hedging transactions. The classification of unrealized losses or gains on these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms. As of March 31, 2023, NSP-Minnesota had no commodity contracts designated as cash flow hedges.

Gross notional amounts of commodity forwards, options and FTRs:

(Amounts in Millions) (a)(b)	March 31, 2023	Dec. 31, 2022
Megawatt hours of electricity	30	44
Million British thermal units of natural gas	79	88

(a)Not reflective of net positions in the underlying commodities.

(b)Notional amounts for options included on a gross basis, but are weighted for the probability of exercise.

Consideration of Credit Risk and Concentrations — NSP-Minnesota continuously monitors the creditworthiness of counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the consolidated balance sheets. NSP-Minnesota’s most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities.

As of March 31, 2023, six of NSP-Minnesota’s ten most significant counterparties for these activities, comprising $30 million, or 26%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings.

Three of the ten most significant counterparties, comprising $28 million, or 25%, of this credit exposure, were not rated by these external ratings agencies, but based on NSP-Minnesota’s internal analysis, had credit quality consistent with investment grade.

One of these significant counterparties, comprising $55 million or 49% of this credit exposure, had credit quality less than investment grade, based on internal analysis. Five of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities.

Credit Related Contingent Features — Contract provisions for derivative instruments that the utility subsidiaries enter, including those accounted for as normal purchase and normal sale contracts and therefore not reflected on the consolidated balance sheets, may require the posting of collateral or settlement of the contracts for various reasons, including if the applicable utility subsidiary’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies. As of March 31, 2023 and Dec. 31, 2022, there were $8 million and $4 million, respectively, of derivative liabilities with such underlying contract provisions, respectively.

Certain contracts also contain cross default provisions that may require the posting of collateral or settlement of the contracts if there was a failure under other financing arrangements related to payment terms or other covenants.

As of March 31, 2023 and Dec. 31, 2022, there were approximately $84 million and $76 million of derivative liabilities with such underlying contract provisions, respectively.

Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that a given utility subsidiary’s ability to fulfill its contractual obligations is reasonably expected to be impaired. Xcel Energy had no collateral posted related to adequate assurance clauses in derivative contracts as of March 31, 2023 and Dec. 31, 2022.

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Recurring Derivative Fair Value Measurements

Impact of derivative activity:

	Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)	Accumulated Other Comprehensive Loss			Regulatory Assets and Liabilities
Three Months Ended March 31, 2023
Derivatives designated as cash flow hedges:
Interest rate	$	(4)	(a)	$	—
Total	$	(4)		$	—
Other derivative instruments:
Electric commodity	$	—		$	(17)
Natural gas commodity	—			2
Total	$	—		$	(15)
Three Months Ended March 31, 2022
Other derivative instruments:
Natural gas commodity	$	—		$	2
Total	$	—		$	2

(a)Recorded to interest charges.

	Pre-Tax Losses (Gains) Reclassified into Income During the Period from:
(Millions of Dollars)	Regulatory Assets and Liabilities			Pre-Tax Gains (Losses) Recognized During the Period in Income
Three Months Ended March 31, 2023
Other derivative instruments:
Commodity trading	$	—		$	(1)	(a)
Electric commodity	14		(b)	—
Natural gas commodity	—			(5)		(c)(d)
Total	$	14		$	(6)
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)

(a)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.

(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. 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.

(c)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.

NSP-Minnesota had no derivative instruments designated as fair value hedges during the three months ended March 31, 2023 and 2022.

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Derivative assets and liabilities measured at fair value on a recurring basis were as follows:

	March 31, 2023												Dec. 31, 2022
	Fair Value						Fair Value Total		Netting (a)		Total		Fair Value						Fair Value Total		Netting (a)		Total
(Millions of Dollars)	Level 1		Level 2		Level 3								Level 1		Level 2		Level 3
Current derivative assets
Other derivative instruments:
Commodity trading	$	5	$	27	$	22	$	54	$	(32)	$	22	$	15	$	38	$	33	$	86	$	(58)	$	28
Electric commodity	—		—		12		12		(1)		11		—		—		58		58		(2)		56
Natural gas commodity	—		—		—		—		—		—		—		5		—		5		—		5
Total current derivative assets	$	5	$	27	$	34	$	66	$	(33)	$	33	$	15	$	43	$	91	$	149	$	(60)	$	89
Noncurrent derivative assets
Other derivative instruments:
Commodity trading	$	16	$	40	$	67	$	123	$	(48)	$	75	$	21	$	40	$	66	$	127	$	(59)	$	68
Total noncurrent derivative assets	$	16	$	40	$	67	$	123	$	(48)	$	75	$	21	$	40	$	66	$	127	$	(59)	$	68

	March 31, 2023												Dec. 31, 2022
	Fair Value						Fair Value Total		Netting (a)		Total		Fair Value						Fair Value Total		Netting (a)		Total
(Millions of Dollars)	Level 1		Level 2		Level 3								Level 1		Level 2		Level 3
Current derivative liabilities
Derivatives designated as cash flow hedges:
Interest rate	—		4		—		4		—		4		—		—		—		—		—		—
Other derivative instruments:
Commodity trading	$	7	$	46	$	4	$	57	$	(37)	$	20	$	23	$	60	$	6	$	89	$	(63)	$	26
Electric commodity	—		—		1		1		(1)		—		—		—		2		2		(2)		—
Natural gas commodity	—		—		—		—		—		—		—		2		—		2		—		2
Total current derivative liabilities	$	7	$	50	$	5	$	62	$	(38)	24		$	23	$	62	$	8	$	93	$	(65)	28
PPAs (b)											13												14
Current derivative instruments											$	37											$	42
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading	$	26	$	50	$	50	$	126	$	(48)	$	78	$	37	$	55	$	42	$	134	$	(60)	$	74
Total noncurrent derivative liabilities	$	26	$	50	$	50	$	126	$	(48)	78		$	37	$	55	$	42	$	134	$	(60)	74
PPAs (b)											27												28
Noncurrent derivative instruments											$	105											$	102

(a)NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At March 31, 2023 and Dec. 31, 2022, derivatives include no obligations to return cash collateral, respectively. At March 31, 2023 and Dec. 31, 2022 derivative assets and liabilities include rights to reclaim cash collateral of $5 million and $6 million, respectively. Counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

(b)NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

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Changes in Level 3 commodity derivatives:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Balance at Jan. 1	$	107	$	56
Settlements (a)	(13)		(19)
Net transactions recorded during the period:
(Losses) gains recognized in earnings (b)	(14)		49
Net (losses) recognized as regulatory assets and liabilities (a)	(34)		(10)
Balance at March 31	$	46	$	76

(a)Relates primarily to FTR instruments administered by MISO.

(b)Relates to commodity trading and is subject to offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.

Fair Value of Long-Term Debt

As of March 31, 2023, other financial instruments for which the carrying amount did not equal fair value:

	March 31, 2023				Dec. 31, 2022
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	6,943	$	6,142	$	6,942	$	5,995

Fair value of NSP-Minnesota’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of March 31, 2023 and Dec. 31, 2022 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.

8. Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost

	Three Months Ended March 31
	2023		2022		2023		2022
(Millions of Dollars)	Pension Benefits				Postretirement Health Care Benefits
Service cost	$	5	$	7	$	—	$	—
Interest cost (a)	9		6		1		1
Expected return on plan assets (a)	(11)		(12)		—		—
Amortization of prior service credit (a)	—		—		—		(1)
Amortization of net loss (a)	3		6		—		—
Settlement charge (b)	—		(1)		—		—
Net periodic benefit cost	6		6		1		—
Effects of regulation	1		1		—		—
Net benefit cost recognized for financial reporting	$	7	$	7	$	1	$	—

(a)The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

(b)In the first quarter of 2022, Xcel Energy recognized $1 million in settlement charge true-ups related to the fourth quarter of 2021.

In January 2023, contributions totaling $50 million were made across Xcel Energy’s pension plans, of which $23 million was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2023.

9. Commitments and Contingencies

Legal

NSP-Minnesota is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories.

In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Legal fees are generally expensed as incurred.

Rate Matters and Other

NSP-Minnesota is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the consolidated financial statements.

Sherco — In 2018, NSP-Minnesota and SMMPA (Co-owner of Sherco Unit 3) reached a settlement with GE related to a 2011 incident, which damaged the turbine at Sherco Unit 3 and resulted in an extended outage for repair. NSP-Minnesota notified the MPUC of its proposal to refund settlement proceeds to customers through the fuel clause adjustment.

In March 2019, the MPUC approved NSP-Minnesota’s settlement refund proposal. Additionally, the MPUC decided to withhold any decision as to NSP-Minnesota’s prudence in connection with the incident at Sherco Unit 3 until after conclusion of an appeal pending between GE and NSP-Minnesota’s insurers. In February 2020, the Minnesota Court of Appeals affirmed the district court’s judgment in favor of GE. In March 2020, NSP-Minnesota’s insurers filed a petition seeking additional review by the Minnesota Supreme Court.

In April 2020, the Minnesota Supreme Court denied the insurers’ petition for further review, ending the litigation.

In January 2021, the OAG and DOC recommended that NSP-Minnesota refund approximately $17 million of replacement power costs previously recovered through the fuel clause adjustment. NSP-Minnesota subsequently filed its response, asserting that it acted prudently in connection with the Sherco Unit 3 outage, the MPUC has previously disallowed $22 million of related costs and no additional refund or disallowance is appropriate.

In July 2022, the MPUC referred the matter to the Office of Administrative Hearings to conduct a contested case on the prudence of the replacement power costs incurred by NSP-Minnesota. A final decision by the MPUC is expected in mid-2023. A loss related to this matter is deemed remote.

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MISO ROE Complaints — In November 2013 and February 2015, customer groups filed two ROE complaints against MISO TOs, which includes NSP-Minnesota and NSP-Wisconsin. The first complaint requested a reduction in base ROE transmission formula rates from 12.38% to 9.15% for the time period of Nov. 12, 2013 to Feb. 11, 2015, and removal of ROE adders (including those for RTO membership). The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38% to 8.67%.

The FERC subsequently issued various related orders (including Opinion Nos. 569, 569A and 569B) related to ROE methodology/calculations and timing. NSP-Minnesota has processed refunds to customers for applicable complaint periods based on the ROE in the most recent applicable opinions.

The MISO TOs and various other parties have filed petitions for review of the FERC’s most recent applicable opinions at the D.C. Circuit. In August 2022, the D.C. Circuit ruled that FERC had not adequately supported its conclusions, vacated FERC’s related orders, and remanded the issue back to FERC for further proceedings, which remain pending.

Environmental

MGP, Landfill and Disposal Sites

NSP-Minnesota is investigating, remediating or performing post-closure actions at five MGP, landfill or other disposal sites across its service territories.

NSP-Minnesota has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

Environmental Requirements — Water and Waste

Coal Ash Regulation — NSP-Minnesota’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste. Under the CCR Rule, utilities are required to complete groundwater sampling around their CCR landfills and surface impoundments. Currently, NSP-Minnesota has three regulated ash units in operation.

NSP-Minnesota is conducting groundwater sampling and monitoring and implementing assessment of corrective measures at certain CCR landfills and surface impoundments. No results above the groundwater protection standards in the rule were identified.

Federal Clean Water Act Section 316(b) — The Federal Clean Water Act requires the EPA to regulate cooling water intake structures to assure they reflect the best technology available for minimizing impingement and entrainment of aquatic species. NSP-Minnesota estimates capital expenditures of approximately $40 million may be required to comply with the requirements. NSP-Minnesota anticipates these costs will be recoverable through regulatory mechanisms.

Monticello Tritium — Monticello regularly monitors onsite tritium levels (a weak radioactive isotope that is a byproduct of plant operations) from releases in groundwater monitoring wells onsite. In late 2022, Xcel Energy detected a release of tritium to groundwater and reported the event to the NRC and the State of Minnesota. Xcel Energy has completed repairs, replaced the source of the release and is extracting the impacted groundwater. Xcel Energy anticipates costs to extract and contain the impacted groundwater from this release to be immaterial. The water is fully contained on-site and has not been detected in any drinking water. The release does not represent a risk to human health or the environment.

Leases

NSP-Minnesota evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset.

Components of lease expense:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Operating leases
PPA capacity payments	$	25	$	24
Other operating leases (a)	4		3
Total operating lease expense (b)	$	29	$	27

(a)Includes immaterial short-term lease expense for 2023 and 2022.

(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.

Commitments under operating leases as of March 31, 2023:

(Millions of Dollars)	PPA Operating Leases		Other Operating Leases		Total Operating Leases
Total minimum obligation	$	293	$	133	$	426
Interest component of obligation	(16)		(55)		(71)
Present value of minimum obligation	$	277	$	78	355
Less current portion					(96)
Noncurrent operating lease liabilities					$	259

Variable Interest Entities

Under certain PPAs, NSP-Minnesota purchases power from IPPs for which NSP-Minnesota is required to reimburse fuel costs, or to participate in tolling arrangements under which NSP-Minnesota procures the natural gas required to produce the energy that they purchase. These specific PPAs create a variable interest in the IPP.

NSP-Minnesota had approximately 1,347 MW and 1,322 MW of capacity under long-term PPAs at March 31, 2023 and Dec. 31, 2022, respectively, with entities that have been determined to be variable interest entities. NSP-Minnesota concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. The PPAs have expiration dates through 2039.

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10. Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), net of tax:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
(Millions of Dollars)	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total		Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total
Accumulated other comprehensive loss at Jan. 1	$	(16)	$	(2)	$	(18)	$	(17)	$	(3)	$	(20)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)	(3)		—		(3)		—		—		—
Accumulated other comprehensive loss at Mar. 31	$	(19)	$	(2)	$	(21)	$	(17)	$	(3)	$	(20)

(a)Included in interest charges.

11. Segment Information

NSP-Minnesota evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.

NSP-Minnesota has the following reportable segments:

•Regulated Electric — The regulated electric utility segment generates electricity which is transmitted and distributed in Minnesota, North Dakota and South Dakota. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes NSP-Minnesota’s wholesale commodity and trading operations.

•Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Minnesota and North Dakota.

NSP-Minnesota also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments primarily include appliance repair services, non-utility real estate activities and revenues associated with processing solid waste into refuse-derived fuel.

Asset and capital expenditure information is not provided for NSP-Minnesota’s reportable segments. As an integrated electric and natural gas utility, NSP-Minnesota operates significant assets that are not dedicated to a specific business segment. Reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

NSP-Minnesota’s segment information:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Regulated Electric
Total revenues (a)	$	1,256	$	1,254
Net income	111		98
Regulated Natural Gas
Operating revenues (b)	$	400	$	434
Intersegment revenue	1		—
Total revenues	$	401	$	434
Net income	30		29
All Other
Total revenues	$	10	$	10
Net loss	(2)		—
Consolidated Total
Operating revenues (a)(b)	$	1,667	$	1,698
Reconciling eliminations	(1)		—
Total revenues	$	1,666	$	1,698
Net income	139		127

(a)    Operating revenues include $125 million and $129 million of affiliate electric revenue for the three months ended March 31, 2023 and 2022.

(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2023 and 2022.

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ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Discussion of financial condition and liquidity for NSP-Minnesota is omitted per conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q for wholly owned subsidiaries. It is replaced with management’s narrative analysis of the results of operations set forth in General Instruction H(2)(a) of Form 10-Q for wholly owned subsidiaries (reduced disclosure format).

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with GAAP, as well as certain non-GAAP financial measures such as ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts measures calculated and presented in accordance with GAAP.

NSP-Minnesota’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation, and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Earnings Adjusted for Certain Items (Ongoing Earnings)

Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items.

We use this non-GAAP financial measure to evaluate and provide details of NSP-Minnesota’s core earnings and underlying performance. We believe this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of NSP-Minnesota. For the three months ended March 31, 2023 and 2022, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings.

Results of Operations

NSP-Mnnesota’s net income was approximately $139 million for the three months ended March 31, 2023 compared with approximately $127 million for the prior year. The increase is primarily due to recovery of electric infrastructure investment, partially offset by increased O&M expenses and depreciation.

Electric Margin

Electric margin is presented as electric revenues less electric fuel and purchased power expenses. Expenses incurred for electric fuel and purchased power are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.

Electric revenues and fuel and purchased power expenses are impacted by fluctuations in the price of natural gas, coal and uranium. However, these price fluctuations generally have minimal earnings impact due to fuel recovery mechanisms. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes.

Electric revenues, fuel and purchased power and margin:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Electric revenues	$	1,256	$	1,254
Electric fuel and purchased power	(505)		(529)
Electric margin	$	751	$	725

(Millions of Dollars)	Three Months Ended March 31, 2023 vs. 2022
Regulatory rate outcome (Minnesota)	$	29
Non-fuel riders	10
Sales and demand (net) (a)	4
Wholesale transmission (net)	4
Conservation and demand side revenues (offset in expense)	(16)
PTCs flowed back to customers (offset by lower ETR)	(5)
Total increase	$	26

(a)    Sales excludes weather impact, net of proposed decoupling mechanism in Minnesota.

Natural Gas Margin

Natural gas margin is presented as natural gas revenues less the cost of natural gas sold and transported. Expenses incurred for the cost of natural gas sold are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.

Natural gas expense varies with changing sales and the cost of natural gas. However, fluctuations in the cost of natural gas generally have minimal earnings impact due to cost recovery mechanisms.

Natural gas revenues, cost of natural gas sold and transported and margin:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Natural gas revenues	$	400	$	434
Cost of natural gas sold and transported	(297)		(336)
Natural gas margin	$	103	$	98

(Millions of Dollars)	Three Months Ended March 31, 2023 vs. 2022
Infrastructure and integrity riders	$	2
Estimated impact of weather	(5)
Other (net)	8
Total increase	$	5

Non-Fuel Operating Expenses and Other Items

O&M Expenses — O&M expenses increased $19 million year-to-date. The increase is due to generation outage timing and emergent work, higher bad debt expenses, inflationary pressures, including labor increases, and investments in electric vehicle programs and other customer programs.

Depreciation and Amortization — Depreciation and amortization expense increased $10 million year-to-date. The increase was primarily driven by normal system expansion and the implementation of new depreciation rates.

Interest Charges — Interest charges increased $8 million year-to-date, largely due to higher interest rates and increased long-term debt levels to fund capital investments.

18

Public Utility Regulation and Other

The FERC and various state and local regulatory commissions regulate NSP-Minnesota. NSP-Minnesota is subject to rate regulation by state utility regulatory agencies, which have jurisdiction with respect to the rates of electric and natural gas distribution companies in Minnesota, North Dakota and South Dakota.

Rates are designed to recover plant investment, operating costs and an allowed return on investment. NSP-Minnesota requests changes in utility rates through commission filings. Changes in operating costs can affect NSP-Minnesota’s financial results, depending on the timing of rate cases and implementation of final rates. Other factors affecting rate filings are new investments, sales, conservation and demand side management efforts, and the cost of capital.

In addition, the regulatory commissions authorize the ROE, capital structure and depreciation rates in rate proceedings. Decisions by these regulators can significantly impact NSP-Minnesota’s results of operations.

Except to the extent noted below, the circumstances set forth in Public Utility Regulation included in Item 7 of NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2022 appropriately represent, in all material respects, the current status of public utility regulation and are incorporated herein by reference.

Pending and Recently Concluded Regulatory Proceedings

2022 Minnesota Electric Rate Case — In October 2021, NSP-Minnesota filed a three-year electric rate case with the MPUC. The rate case is based on a requested ROE of 10.2%, a 52.5% equity ratio and forward test years.

In December 2021, the MPUC approved interim rates, subject to refund, of $247 million, effective Jan. 1, 2022. In November 2022, NSP-Minnesota revised its rate request to $498 million over three years.

On March 31, 2023, the ALJ’s report was issued. NSP-Minnesota estimates that the ALJ recommendation would result in a rate increase of approximately $386 million over three years from 2022-2024, based on a ROE of 9.87% and an equity ratio of 52.5%. In addition, it also reflects rate reductions associated with certain wind and nuclear generation life extensions and MISO capacity revenues and related tracker, as proposed in NSP-Minnesota’s revised rate request. A MPUC order is expected by June 30, 2023.

Proposed ALJ modifications to NSP-Minnesota’s request were as follows:

(Millions of Dollars)	2022		2023		2024
NSP-Minnesota’s revised revenue request	$	234	$	328	$	498
ALJ recommended adjustments:
PTC forecast	(28)		(2)		(1)
Impact of ROE change	(27)		(29)		(30)
O&M expenses	(15)		(17)		(18)
Property tax	—		(11)		(23)
Sherco 3 and A.S. King remaining life	—		—		(35)
Other, net	3		(9)		(5)
Total adjustments	(67)		(68)		(112)
Total proposed revenue change	$	167	$	260	$	386

2022 Minnesota Natural Gas Rate Case — In November 2021, NSP-Minnesota filed a request with the MPUC for an annual natural gas rate increase of $36 million, or 6.6%. The filing is based on a 2022 forecast test year and includes a requested ROE of 10.5%, an equity ratio of 52.5% and a rate base of $934 million. In December 2021, the MPUC approved an interim rate increase of $25 million, subject to refund, effective Jan. 1, 2022.

In March 2023, the MPUC approved a settlement between NSP-Minnesota and various parties, which includes the following key terms:

•Base rate revenue increase of $21 million, with a true up to weather normalized actual sales for 2022.

•Revenue decoupling mechanism.

•Symmetrical property tax true-up.

•ROE of 9.57%.

•Equity ratio of 52.5%.

2022 South Dakota Electric Rate Case — In June 2022, NSP-Minnesota filed a South Dakota electric rate case (first since 2014) seeking a revenue increase of approximately $44 million. The filing was based on a 2021 historic test year adjusted for certain known and measurable changes for 2022 and 2023, a requested ROE of 10.75%, rate base of approximately $947 million and an equity ratio of 53%. A commission decision is expected later this year.

Wind Repowering — In January 2021, the MPUC approved NSP-Minnesota’s request for the repowering of 651 MW of owned wind projects. Two of the four repowering projects, where construction has not yet begun (in-service dates in 2025), now expect costs in excess of the original approval. While the capital costs have increased, the passage of the IRA and other changes result in a levelized cost of energy that is approximately 30% lower than the original approval.

In March 2023, the MPUC approved the revised projects.

2022 Upper Midwest RFP — In August 2022, NSP-Minnesota launched a RFP for 900 MW of solar or solar-plus-storage hybrid resources to come online by the end of 2025, including up to 300 MW of capacity to reuse the Sherco Unit 2 interconnection rights when the coal facility retires at the end of 2023.

NSP-Minnesota completed its bid evaluation process in December 2022 and will file for approval of selected projects in the second quarter of 2023.

2022 Minnesota Electric Vehicle Proposal — In August 2022, NSP-Minnesota filed a request with the MPUC for approval of approximately $320 million of capital investments (2022 through 2026) to support a public charging network, electric school bus pilot, and other expansions and modifications to its residential and commercial electric vehicle programs.

In February 2023, other parties to the contested proceeding filed their direct testimony ranging in levels of support/opposition to the proposals. In March 2023, the ALJ granted NSP-Minnesota’s request for a 60-day stay in the case so that the parties could pursue potential settlement. An evidentiary hearing has not been scheduled but is expected in June 2023. A MPUC decision is expected in late 2023.

19

Nuclear Power Operations

NSP-Minnesota owns two nuclear generating plants: the Monticello plant and the Prairie Island plant. See Note 10 to the consolidated financial statements of NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2022 for further information. The circumstances set forth in Nuclear Power Operations included in Item 7 of NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2022, appropriately represent, in all material respects, the current status of nuclear power operations, and are incorporated by reference.

Other

Supply Chain

NSP-Minnesota’s ability to meet customer energy requirements, respond to storm-related disruptions and execute our capital expenditure program are dependent on maintaining an efficient supply chain. Manufacturing processes have experienced disruptions related to scarcity of certain raw materials and interruptions in production and shipping. These disruptions have been further exacerbated by inflationary pressures, labor shortages and the impact of international conflicts/issues. NSP-Minnesota continues to monitor the situation as it remains fluid and seeks to mitigate the impacts by securing alternative suppliers, modifying design standards, and adjusting the timing of work.

Electric Meters and Transformers

Supply chain issues associated with semi-conductors have delayed the availability of advanced infrastructure meters, which led to a reduced number of meters deployed in 2022. While we have seen improvements in the 2023 deployment plan, the supply chain challenges persist. Full 2023 impacts and mitigation plans are currently being evaluated.

Additionally, the availability of certain transformers is an industry-wide issue that has significantly impacted and, in some cases, may result in delays in projects and new customer connections. Proposed governmental actions related to transformer efficiency standards may compound these delays in the future. NSP-Minnesota continues to seek alternative suppliers and prioritize work plans to mitigate impacts of supply constraints.

Solar Resources

In April 2022, the U.S. Department of Commerce initiated an anti-circumvention investigation that would subject CSPV solar panels and cells imported from Malaysia, Vietnam, Thailand, and Cambodia with potential incremental tariffs ranging from 50% to 250%. These countries account for more than 80% of CSPV panel imports.

An interim stay on tariffs has been issued and many significant solar projects have resumed with modified costs and projected in-service dates, including the Sherco Solar facility in Minnesota. Further policy action, a change in the interim stay of tariffs, or other restrictions on solar imports (i.e., as a result of implementation of the Uyghur Forced Labor Protection Act) could impact project timelines and costs.

MISO Capacity Credits

The NSP System offered 1,500 MW of excess capacity into the MISO planning resource auction for June 2022 through May 2023. Due to a projected overall capacity shortfall in the MISO region, the 1,500 MWs offered cleared the auction at maximum pricing and is expected to generate revenues of approximately $90 million in 2022 and approximately $60 million in 2023. During the three months ended March 31, 2023, the NSP System received approximately $40 million of capacity credits. These amounts will primarily be used to mitigate customer rate increases or returned through earnings sharing or other mechanisms.

Environmental

Clean Air Act

NOx Allowance Allocations — In March 2023, after disapproving state implementation plans, the EPA released a prepublication version of the final regulations under the "Good Neighbor" provisions of the Clean Air Act. The final rule applies to generation facilities in Minnesota and Wisconsin, as well as other states outside of our service territory. The rule establishes an allowance trading program for NOx that will impact NSP System fossil fuel-fired electric generating facilities in the states within our service territory. Applicable facilities will have to secure additional allowances, install NOx controls and/or develop a strategy of operations that utilizes the existing allowance allocations. Guidelines are also established for allowance banking and emission limit backstops.

While the financial impacts of the final rule are uncertain and dependent on market forces and anticipated generation, NSP-Minnesota anticipates the annual costs could be significant, but would be recoverable through regulatory mechanisms.

NSP-Minnesota has joined other impacted companies in litigation challenging the EPA’ disapproval of Minnesota’s state implementation plan.

GHG Emissions Limits — It is anticipated the EPA will propose rules to limit GHG emissions from new fossil fuel-fired electric generating units and natural gas-fired stationary combustion units under Clean Air Act Section 111(b) as well as emission guidelines under Clean Air Act Section 111(d) to limit GHG emissions from existing fossil fuel-fired electric generating units in 2023.

If any new rules require additional investment, NSP-Minnesota believes that the cost of these initiatives or replacement generation would be recoverable through rates based on prior state commission practices.

Coal Ash Regulation

In February 2023, the EPA entered into a Consent Decree committing the agency to either issue new proposed rules by May 5, 2023, to regulate inactive CCR landfills under the CCR Rule for the first time or to determine no such rules are necessary by that date.

If proposed rules are issued, the EPA has committed to a May 2024 effective date for those new rules. It is also anticipated that the EPA may issue other CCR proposed rules in 2023 that further expand the scope of the CCR Rule. Until proposed rules are issued, it is not certain what the impact will be on NSP-Minnesota.

20

Emerging Contaminants of Concern

PFAS are man-made chemicals that are widely used in consumer products and can persist and bio-accumulate in the environment. NSP-Minnesota does not manufacture PFAS but because PFAS are so ubiquitous in products and the environment, it may impact our operations.

In September 2022, the EPA proposed to designate two types of PFAS as “hazardous substances” under the CERCLA.

In March 2023, the EPA published a proposed rule that would establish enforceable drinking water standards for certain PFAS chemicals.

The proposed rules could result in new obligations for investigation and cleanup. NSP-Minnesota is monitoring changes to state laws addressing PFAS. The impact of these proposed regulations is uncertain.

Effluent Limitation Guidelines

In March 2023, the EPA released a proposed rule under the Clean Water Act, setting forth proposed Effluent Limitations Guidelines and Standards for steam generating coal plants. This proposed rule establishes more stringent wastewater discharge standards for bottom ash transport water, flue-gas desulfurization wastewater, and combustion residuals leachate from steam electric power plants, particularly coal-fired power plants. Comments to the proposed regulations are due May 30, 2023. The impacts of these proposed regulations is uncertain.

Nuclear Fuel Supply

NSP-Minnesota has contracted for its 2023, 2024 and 2025 enriched nuclear material requirements, which are in various stages of processing in Canada, Europe and the United States. NSP-Minnesota is scheduled to take delivery of approximately 26% of its average enriched nuclear material requirements from Russia through 2030. Given the evolving situation in Ukraine and its global impacts, we have entered into additional new contracts that cover potential supply interruptions of nuclear material from Russia.

ITEM 4 — CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

NSP-Minnesota maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

In addition, the disclosure controls and procedures ensure that information required to be disclosed is accumulated and communicated to management, including the CEO and CFO, allowing timely decisions regarding required disclosure.

As of March 31, 2023, based on an evaluation carried out under the supervision and with the participation of NSP-Minnesota’s management, including the CEO and CFO, of the effectiveness of its disclosure controls and procedures, the CEO and CFO have concluded that NSP-Minnesota’s disclosure controls and procedures were effective.

Internal Control Over Financial Reporting

No changes in NSP-Minnesota’s internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, NSP-Minnesota’s internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1 — LEGAL PROCEEDINGS

NSP-Minnesota is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation.

Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to, when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss.

For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Legal fees are generally expensed as incurred.

See Note 9 to the consolidated financial statements and Part I Item 2 for further information.

ITEM 1A — RISK FACTORS

NSP-Minnesota’s risk factors are documented in Item 1A of Part I of its Annual Report on Form 10-K for the year ended Dec. 31, 2022, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the Form 10-K.

21

ITEM 6 — EXHIBITS

* Indicates incorporation by reference

Exhibit Number	Description	Report or Registration Statement	Exhibit Reference
3.01*	Articles of Incorporation and Amendments of Northern Power Corp. (renamed NSP-Minnesota on Aug. 21, 2000)	NSP-Minnesota Form 10-12G dated Oct. 5, 2000	3.01
3.02*	Amended and Restated Bylaws of NSP-Minnesota, dated Jan. 25, 2019	NSP-Minnesota Form 10-K for the year ended Dec. 31, 2018	3.02
31.01	Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Schema
101.CAL	Inline XBRL Calculation
101.DEF	Inline XBRL Definition
101.LAB	Inline XBRL Label
101.PRE	Inline XBRL Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Northern States Power Company (a Minnesota corporation)
4/27/2023	By:	/s/ BRIAN J. VAN ABEL
		Brian J. Van Abel
		Executive Vice President, Chief Financial Officer
		(Principal Accounting Officer and Principal Financial Officer)

23

EX-31.01

Exhibit 31.01

CERTIFICATION

I, Robert C. Frenzel, certify that:

1.I have reviewed this report on Form 10-Q of Northern States Power Company (a Minnesota corporation);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 4/27/2023

/s/ ROBERT C. FRENZEL

Robert C. Frenzel

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

1

EX-31.02

Exhibit 31.02

CERTIFICATION

I, Brian J. Van Abel, certify that:

1.I have reviewed this report on Form 10-Q of Northern States Power Company (a Minnesota corporation);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 4/27/2023

/s/ BRIAN J. VAN ABEL

Brian J. Van Abel

Executive Vice President, Chief Financial Officer and Director

(Principal Accounting Officer and Principal Financial Officer)

2

EX-32.01

Exhibit 32.01

OFFICER CERTIFICATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Northern States Power Company, a Minnesota corporation (NSP-Minnesota) on Form 10-Q for the quarter ended March 31, 2023, as filed with the SEC on the date hereof (Form 10-Q), each of the undersigned officers of NSP-Minnesota certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(1)The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NSP-Minnesota as of the dates and for the periods expressed in the Form 10-Q.

Date: 4/27/2023

/s/ ROBERT C. FRENZEL

Robert C. Frenzel

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

/s/ BRIAN J. VAN ABEL

Brian J. Van Abel

Executive Vice President, Chief Financial Officer and Director

(Principal Accounting Officer and Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to NSP-Minnesota and will be retained by NSP-Minnesota and furnished to the SEC or its staff upon request.

1

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Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 27, 2023
Cover [Abstract]
Entity Registrant Name	NORTHERN STATES POWER CO
Entity Central Index Key	0001123852
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Type	10-Q
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Entity File Number	001-31387
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1967505
Entity Address, Address Line One	414 Nicollet Mall
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55401
City Area Code	(612)
Local Phone Number	330-5500
Entity Current Reporting Status	Yes
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Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating revenues
Electric, non-affiliates	$ 1,131	$ 1,125
Electric, affiliates	125	129
Natural gas	400	434
Other	10	10
Total operating revenues	1,666	1,698
Operating expenses
Electric fuel and purchased power	505	529
Cost of natural gas sold and transported	297	336
Cost of sales — other	7	5
Operating and maintenance expenses	325	306
Conservation program expenses	31	49
Depreciation and amortization	262	252
Taxes (other than income taxes)	78	73
Total operating expenses	1,505	1,550
Operating income	161	148
Allowance for funds used during construction — equity	8	6
Interest charges and financing costs
Interest charges — includes other financing costs of $2	77	69
Allowance for funds used during construction — debt	(5)	(2)
Total interest charges and financing costs	72	67
Income before income taxes	97	87
Income tax benefit	(42)	(40)
Net income	139	127
Other financing costs	$ 2	$ 2

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Other financing costs	$ 2	$ 2

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Comprehensive income:
Net income	$ 139	$ 127
Derivative instruments:
Net fair value decrease net of tax of $(1) and $—, respectively	3	0
Total other comprehensive loss	(3)	0
Total comprehensive income	$ 136	$ 127

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Reclassification of losses on derivatives to net income, tax	$ (1)	$ 0

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income	$ 139	$ 127
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	264	252
Nuclear fuel amortization	29	30
Deferred income taxes	(30)	(76)
Allowance for equity funds used during construction	(8)	(6)
Provision for bad debts	8	7
Changes in operating assets and liabilities:
Accounts receivable	(18)	(67)
Accrued unbilled revenues	112	64
Inventories	68	53
Other current assets	(29)	(5)
Accounts payable	(133)	(25)
Net regulatory assets and liabilities	157	168
Other current liabilities	44	65
Pension and other employee benefit obligations	(22)	(6)
Other, net	6	(7)
Net cash provided by operating activities	587	574
Investing activities
Capital/construction expenditures	(532)	(341)
Purchase of investment securities	(236)	(156)
Proceeds from the sale of investment securities	228	147
Investments in utility money pool arrangement	(5)	(538)
Repayments from utility money pool arrangement	0	443
Other, net	(2)	(1)
Net cash used in investing activities	(547)	(446)
Financing activities
Repayments of short-term borrowings, net	(87)	0
Capital contributions from parent	151	(7)
Dividends paid to parent	(122)	(146)
Net cash used in financing activities	(58)	(153)
Net change in cash, cash equivalents and restricted cash	(18)	(25)
Cash, cash equivalents and restricted cash at beginning of period	65	73
Cash, cash equivalents and restricted cash at end of period	47	48
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	(69)	(73)
Cash paid for income taxes, net	(5)	(6)
Other Noncash Investing and Financing Items [Abstract]
Accrued property, plant and equipment additions	170	97
Inventory transfers to property, plant and equipment	9	6
Allowance for equity funds used during construction	8	6
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 29	$ 4

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash, cash equivalents and restricted cash at beginning of period	$ 47	$ 65
Accounts receivable, net	524	534
Accounts receivable from affiliates	25	45
Investments in money pool arrangements	5	0
Accrued unbilled revenues	260	372
Inventories	307	384
Regulatory assets	350	384
Derivative instruments	33	89
Prepayments and other	82	62
Total current assets	1,633	1,935
Property, plant and equipment, net	17,744	17,478
Other assets
Nuclear decommissioning fund and other investments	3,057	2,930
Regulatory assets	768	894
Derivative instruments	75	68
Operating lease right-of-use assets	327	324
Other	25	29
Total other assets	4,252	4,245
Total assets	23,629	23,658
Current liabilities
Current portion of long-term debt	400	400
Short-term debt	120	207
Accounts payable	489	619
Accounts payable to affiliates	58	89
Regulatory liabilities	195	191
Taxes accrued	325	272
Accrued interest	79	79
Dividends payable to parent	133	122
Derivative instruments	37	42
Operating lease liabilities	96	98
Other	244	227
Total current liabilities	2,176	2,346
Deferred credits and other liabilities
Deferred income taxes	1,663	1,666
Deferred investment tax credits	15	15
Regulatory liabilities	1,995	1,983
Asset retirement obligations	2,763	2,727
Derivative instruments	105	102
Pension and employee benefit obligations	133	155
Operating lease liabilities	259	256
Other	27	30
Total deferred credits and other liabilities	6,960	6,934
Capitalization
Long-term debt	6,543	6,542
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares outstanding at Mar. 31, 2023 and Dec. 31, 2022, respectively	$ 0	$ 0
Common Stock, Shares Authorized	5,000,000	5,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	1,000,000	1,000,000
Additional paid in capital	$ 5,484	$ 5,374
Retained earnings	2,487	2,480
Accumulated other comprehensive loss	(21)	(18)
Total common stockholder's equity	7,950	7,836
Total liabilities and equity	$ 23,629	$ 23,658

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CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions	Total	Common Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance (in shares) at Dec. 31, 2021		1,000,000
Beginning balance at Dec. 31, 2021	$ 7,573	$ 0	$ 5,202	$ 2,391	$ (20)
Increase (Decrease) in Stockholders' Equity
Net income	127			127
Other comprehensive income	0
Dividends declared on common stock	(167)			(167)
Balance (in shares) at Mar. 31, 2022		1,000,000
Ending balance at Mar. 31, 2022	$ 7,533	$ 0	5,202	2,351	(20)
Balance (in shares) at Dec. 31, 2022	1,000,000	1,000,000
Beginning balance at Dec. 31, 2022	$ 7,836	$ 0	5,374	2,480	(18)
Increase (Decrease) in Stockholders' Equity
Net income	139			139
Other comprehensive income	(3)				(3)
Dividends declared on common stock	(132)			(132)
Contribution of capital by parent	$ 110		110
Balance (in shares) at Mar. 31, 2023	1,000,000	1,000,000
Ending balance at Mar. 31, 2023	$ 7,950	$ 0	$ 5,484	$ 2,487	$ (21)

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Management's Opinion

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Management's Opinion

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Minnesota and its subsidiaries as of March 31, 2023 and Dec. 31, 2022; the results of NSP-Minnesota’s operations, including the components of net income and comprehensive income, and changes in stockholder’s equity for the three months ended March 31, 2023 and 2022; and NSP-Minnesota’s cash flows for the three months ended March 31, 2023 and 2022.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2023 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2022 balance sheet information has been derived from the audited 2022 consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022.

Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022, filed with the SEC on Feb. 23, 2023. Due to the seasonality of NSP-Minnesota’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.

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Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

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Accounting Pronouncements	3 Months Ended
	Mar. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Pronouncements	As of March 31, 2023, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on NSP-Minnesota’s consolidated financial statements.

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Selected Balance Sheet Data

3 Months Ended

Mar. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Selected Balance Sheet Data

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Accounts receivable, net
Accounts receivable	$	571	$	580
Less allowance for bad debts	(47)		(46)
Accounts receivable, net	$	524	$	534

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Inventories
Materials and supplies	$	204	$	200
Fuel	91		103
Natural gas	12		81
Total inventories	$	307	$	384

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Property, plant and equipment, net
Electric plant	$	20,402	$	20,114
Natural gas plant	2,120		2,100
Common and other property	1,174		1,156
Plant to be retired (a)	632		646
Construction work in progress	799		907
Total property, plant and equipment	25,127		24,923
Less accumulated depreciation	(7,729)		(7,734)
Nuclear fuel	3,266		3,183
Less accumulated amortization	(2,920)		(2,894)
Property, plant and equipment, net	$	17,744	$	17,478

(a)Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King and are reported net of accumulated depreciation.

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Borrowings and Other Financing Instruments

3 Months Ended

Mar. 31, 2023

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 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 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.

Money pool borrowings:

(Amounts in Millions, Except Interest Rates)	Three Months Ended March 31, 2023		Year Ended Dec. 31, 2022
Borrowing limit	$	250	$	250
Amount outstanding at period end	—		—
Average amount outstanding	—		—
Maximum amount outstanding	—		4
Weighted average interest rate, computed on a daily basis	N/A		3.87		%
Weighted average interest rate at period end	N/A		N/A

Commercial Paper — Commercial paper outstanding:

(Amounts in Millions, Except Interest Rates)	Three Months Ended March 31, 2023			Year Ended Dec. 31, 2022
Borrowing limit	$	700		$	700
Amount outstanding at period end	120			207
Average amount outstanding	230			21
Maximum amount outstanding	441			290
Weighted average interest rate, computed on a daily basis	4.75		%	4.14		%
Weighted average interest rate at period end	5.00			4.64

Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There were $15 million of letters of credit outstanding under the credit facility at March 31, 2023 and Dec. 31, 2022, respectively. Amounts approximate their fair value and are subject to fees.

Revolving Credit Facility — In order to issue its commercial paper, NSP-Minnesota must have a revolving credit facility equal or greater than the commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

NSP-Minnesota has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval.

At March 31, 2023, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Drawn (b)		Available
$	700	$	135	$	565

(a)Expires in September 2027.

(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 credit facility outstanding at March 31, 2023 and Dec. 31, 2022.

Bilateral Credit Agreement — In April 2023, 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 March 31, 2023, NSP-Minnesota had $53 million of outstanding letters of credit under the $75 million bilateral credit agreement.

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Revenues

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenues

Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Minnesota’s operating revenues consisted of the following:

	Three Months Ended Mar. 31, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	358	$	207	$	9	$	574
C&I	543		173		—		716
Other	8		—		1		9
Total retail	909		380		10		1,299
Wholesale	104		—		—		104
Transmission	64		—		—		64
Interchange	125		—		—		125
Other	1		2		—		3
Total revenue from contracts with customers	1,203		382		10		1,595
Alternative revenue and other	53		18		—		71
Total revenues	$	1,256	$	400	$	10	$	1,666

	Three Months Ended Mar. 31, 2022
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	337	$	235	$	6	$	578
C&I	514		180		—		694
Other	9		—		4		13
Total retail	860		415		10		1,285
Wholesale	124		—		—		124
Transmission	61		—		—		61
Interchange	129		—		—		129
Other	6		2		—		8
Total revenue from contracts with customers	1,180		417		10		1,607
Alternative revenue and other	74		17		—		91
Total revenues	$	1,254	$	434	$	10	$	1,698

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

Reconciliation between the statutory rate and ETR:

	Three Months Ended March 31
	2023		2022
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	7.0		7.0
Increases (decreases):
Wind PTCs (a)	(65.1)		(68.6)
Plant regulatory differences (b)	(6.2)		(5.7)
Other tax credits, net operating loss & tax credit allowances	(1.3)		(1.4)
Other (net)	1.3		1.7
Effective income tax rate	(43.3)	%	(46.0)	%

(a)Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.

(b)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 taxes are offset by corresponding revenue reductions.

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Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

Fair Value Measurements

Accounting guidance for fair value measurements and disclosures provides a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value.

•Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are actively traded instruments with observable actual trading prices.

•Level 2 — Pricing inputs are other than actual trading prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

•Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 include those valued with models requiring significant judgment or estimation.

Specific valuation methods include:

Investments in equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs. The investments in commingled funds may be redeemed for NAV with proper notice. Private equity commingled funds require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate commingled funds may be redeemed with proper notice, however, withdrawals may be delayed or discounted as a result of fund illiquidity.

Fair Value of Long-Term Debt

As of March 31, 2023, other financial instruments for which the carrying amount did not equal fair value:

	March 31, 2023				Dec. 31, 2022
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	6,943	$	6,142	$	6,942	$	5,995

Fair value of NSP-Minnesota’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of March 31, 2023 and Dec. 31, 2022 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.

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Benefit Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost

	Three Months Ended March 31
	2023		2022		2023		2022
(Millions of Dollars)	Pension Benefits				Postretirement Health Care Benefits
Service cost	$	5	$	7	$	—	$	—
Interest cost (a)	9		6		1		1
Expected return on plan assets (a)	(11)		(12)		—		—
Amortization of prior service credit (a)	—		—		—		(1)
Amortization of net loss (a)	3		6		—		—
Settlement charge (b)	—		(1)		—		—
Net periodic benefit cost	6		6		1		—
Effects of regulation	1		1		—		—
Net benefit cost recognized for financial reporting	$	7	$	7	$	1	$	—

(a)The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

(b)In the first quarter of 2022, Xcel Energy recognized $1 million in settlement charge true-ups related to the fourth quarter of 2021.

In January 2023, contributions totaling $50 million were made across Xcel Energy’s pension plans, of which $23 million was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2023.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Legal

NSP-Minnesota is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories.

In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Legal fees are generally expensed as incurred.

Rate Matters and Other

NSP-Minnesota is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the consolidated financial statements.

Sherco — In 2018, NSP-Minnesota and SMMPA (Co-owner of Sherco Unit 3) reached a settlement with GE related to a 2011 incident, which damaged the turbine at Sherco Unit 3 and resulted in an extended outage for repair. NSP-Minnesota notified the MPUC of its proposal to refund settlement proceeds to customers through the fuel clause adjustment.

In March 2019, the MPUC approved NSP-Minnesota’s settlement refund proposal. Additionally, the MPUC decided to withhold any decision as to NSP-Minnesota’s prudence in connection with the incident at Sherco Unit 3 until after conclusion of an appeal pending between GE and NSP-Minnesota’s insurers. In February 2020, the Minnesota Court of Appeals affirmed the district court’s judgment in favor of GE. In March 2020, NSP-Minnesota’s insurers filed a petition seeking additional review by the Minnesota Supreme Court.

In April 2020, the Minnesota Supreme Court denied the insurers’ petition for further review, ending the litigation.

In January 2021, the OAG and DOC recommended that NSP-Minnesota refund approximately $17 million of replacement power costs previously recovered through the fuel clause adjustment. NSP-Minnesota subsequently filed its response, asserting that it acted prudently in connection with the Sherco Unit 3 outage, the MPUC has previously disallowed $22 million of related costs and no additional refund or disallowance is appropriate.

In July 2022, the MPUC referred the matter to the Office of Administrative Hearings to conduct a contested case on the prudence of the replacement power costs incurred by NSP-Minnesota. A final decision by the MPUC is expected in mid-2023. A loss related to this matter is deemed remote.

MISO ROE Complaints — In November 2013 and February 2015, customer groups filed two ROE complaints against MISO TOs, which includes NSP-Minnesota and NSP-Wisconsin. The first complaint requested a reduction in base ROE transmission formula rates from 12.38% to 9.15% for the time period of Nov. 12, 2013 to Feb. 11, 2015, and removal of ROE adders (including those for RTO membership). The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38% to 8.67%.

Environmental

MGP, Landfill and Disposal Sites

NSP-Minnesota is investigating, remediating or performing post-closure actions at five MGP, landfill or other disposal sites across its service territories.

NSP-Minnesota has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

Environmental Requirements — Water and Waste

Coal Ash Regulation — NSP-Minnesota’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste. Under the CCR Rule, utilities are required to complete groundwater sampling around their CCR landfills and surface impoundments. Currently, NSP-Minnesota has three regulated ash units in operation.

NSP-Minnesota is conducting groundwater sampling and monitoring and implementing assessment of corrective measures at certain CCR landfills and surface impoundments. No results above the groundwater protection standards in the rule were identified.

Federal Clean Water Act Section 316(b) — The Federal Clean Water Act requires the EPA to regulate cooling water intake structures to assure they reflect the best technology available for minimizing impingement and entrainment of aquatic species. NSP-Minnesota estimates capital expenditures of approximately $40 million may be required to comply with the requirements. NSP-Minnesota anticipates these costs will be recoverable through regulatory mechanisms.

Monticello Tritium — Monticello regularly monitors onsite tritium levels (a weak radioactive isotope that is a byproduct of plant operations) from releases in groundwater monitoring wells onsite. In late 2022, Xcel Energy detected a release of tritium to groundwater and reported the event to the NRC and the State of Minnesota. Xcel Energy has completed repairs, replaced the source of the release and is extracting the impacted groundwater. Xcel Energy anticipates costs to extract and contain the impacted groundwater from this release to be immaterial. The water is fully contained on-site and has not been detected in any drinking water. The release does not represent a risk to human health or the environment.

Leases

NSP-Minnesota evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset.

Components of lease expense:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Operating leases
PPA capacity payments	$	25	$	24
Other operating leases (a)	4		3
Total operating lease expense (b)	$	29	$	27

(a)Includes immaterial short-term lease expense for 2023 and 2022.

(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.

Commitments under operating leases as of March 31, 2023:

(Millions of Dollars)	PPA Operating Leases		Other Operating Leases		Total Operating Leases
Total minimum obligation	$	293	$	133	$	426
Interest component of obligation	(16)		(55)		(71)
Present value of minimum obligation	$	277	$	78	355
Less current portion					(96)
Noncurrent operating lease liabilities					$	259

Variable Interest Entities

Under certain PPAs, NSP-Minnesota purchases power from IPPs for which NSP-Minnesota is required to reimburse fuel costs, or to participate in tolling arrangements under which NSP-Minnesota procures the natural gas required to produce the energy that they purchase. These specific PPAs create a variable interest in the IPP.

NSP-Minnesota had approximately 1,347 MW and 1,322 MW of capacity under long-term PPAs at March 31, 2023 and Dec. 31, 2022, respectively, with entities that have been determined to be variable interest entities. NSP-Minnesota concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. The PPAs have expiration dates through 2039.

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Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), net of tax:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
(Millions of Dollars)	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total		Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total
Accumulated other comprehensive loss at Jan. 1	$	(16)	$	(2)	$	(18)	$	(17)	$	(3)	$	(20)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)	(3)		—		(3)		—		—		—
Accumulated other comprehensive loss at Mar. 31	$	(19)	$	(2)	$	(21)	$	(17)	$	(3)	$	(20)

(a)Included in interest charges.

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Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

NSP-Minnesota evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.

NSP-Minnesota has the following reportable segments:

•Regulated Electric — The regulated electric utility segment generates electricity which is transmitted and distributed in Minnesota, North Dakota and South Dakota. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes NSP-Minnesota’s wholesale commodity and trading operations.

•Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Minnesota and North Dakota.

NSP-Minnesota also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments primarily include appliance repair services, non-utility real estate activities and revenues associated with processing solid waste into refuse-derived fuel.

Asset and capital expenditure information is not provided for NSP-Minnesota’s reportable segments. As an integrated electric and natural gas utility, NSP-Minnesota operates significant assets that are not dedicated to a specific business segment. Reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

NSP-Minnesota’s segment information:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Regulated Electric
Total revenues (a)	$	1,256	$	1,254
Net income	111		98
Regulated Natural Gas
Operating revenues (b)	$	400	$	434
Intersegment revenue	1		—
Total revenues	$	401	$	434
Net income	30		29
All Other
Total revenues	$	10	$	10
Net loss	(2)		—
Consolidated Total
Operating revenues (a)(b)	$	1,667	$	1,698
Reconciling eliminations	(1)		—
Total revenues	$	1,666	$	1,698
Net income	139		127

(a)    Operating revenues include $125 million and $129 million of affiliate electric revenue for the three months ended March 31, 2023 and 2022.

(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2023 and 2022.

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Selected Balance Sheet Data (Tables)

3 Months Ended

Mar. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Accounts receivable, net
Accounts receivable	$	571	$	580
Less allowance for bad debts	(47)		(46)
Accounts receivable, net	$	524	$	534

Inventories

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Inventories
Materials and supplies	$	204	$	200
Fuel	91		103
Natural gas	12		81
Total inventories	$	307	$	384

Property, plant and equipment, net

(Millions of Dollars)	March 31, 2023		Dec. 31, 2022
Property, plant and equipment, net
Electric plant	$	20,402	$	20,114
Natural gas plant	2,120		2,100
Common and other property	1,174		1,156
Plant to be retired (a)	632		646
Construction work in progress	799		907
Total property, plant and equipment	25,127		24,923
Less accumulated depreciation	(7,729)		(7,734)
Nuclear fuel	3,266		3,183
Less accumulated amortization	(2,920)		(2,894)
Property, plant and equipment, net	$	17,744	$	17,478

(a)Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King and are reported net of accumulated depreciation.

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Borrowings and Other Financing Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Borrowings and Other Financing Instruments [Abstract]

Credit Facilities

At March 31, 2023, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Drawn (b)		Available
$	700	$	135	$	565

(a)Expires in September 2027.

(b)Includes outstanding commercial paper and letters of credit.

Money Pool

Borrowings and Other Financing Instruments [Abstract]

Short-Term Borrowings

Money pool borrowings:

(Amounts in Millions, Except Interest Rates)	Three Months Ended March 31, 2023		Year Ended Dec. 31, 2022
Borrowing limit	$	250	$	250
Amount outstanding at period end	—		—
Average amount outstanding	—		—
Maximum amount outstanding	—		4
Weighted average interest rate, computed on a daily basis	N/A		3.87		%
Weighted average interest rate at period end	N/A		N/A

Commercial Paper

Borrowings and Other Financing Instruments [Abstract]

Short-Term Borrowings

Commercial paper outstanding:

(Amounts in Millions, Except Interest Rates)	Three Months Ended March 31, 2023			Year Ended Dec. 31, 2022
Borrowing limit	$	700		$	700
Amount outstanding at period end	120			207
Average amount outstanding	230			21
Maximum amount outstanding	441			290
Weighted average interest rate, computed on a daily basis	4.75		%	4.14		%
Weighted average interest rate at period end	5.00			4.64

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Revenues (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

NSP-Minnesota’s operating revenues consisted of the following:

	Three Months Ended Mar. 31, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	358	$	207	$	9	$	574
C&I	543		173		—		716
Other	8		—		1		9
Total retail	909		380		10		1,299
Wholesale	104		—		—		104
Transmission	64		—		—		64
Interchange	125		—		—		125
Other	1		2		—		3
Total revenue from contracts with customers	1,203		382		10		1,595
Alternative revenue and other	53		18		—		71
Total revenues	$	1,256	$	400	$	10	$	1,666

	Three Months Ended Mar. 31, 2022
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	337	$	235	$	6	$	578
C&I	514		180		—		694
Other	9		—		4		13
Total retail	860		415		10		1,285
Wholesale	124		—		—		124
Transmission	61		—		—		61
Interchange	129		—		—		129
Other	6		2		—		8
Total revenue from contracts with customers	1,180		417		10		1,607
Alternative revenue and other	74		17		—		91
Total revenues	$	1,254	$	434	$	10	$	1,698

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Reconciliation between the statutory rate and ETR:

	Three Months Ended March 31
	2023		2022
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	7.0		7.0
Increases (decreases):
Wind PTCs (a)	(65.1)		(68.6)
Plant regulatory differences (b)	(6.2)		(5.7)
Other tax credits, net operating loss & tax credit allowances	(1.3)		(1.4)
Other (net)	1.3		1.7
Effective income tax rate	(43.3)	%	(46.0)	%

(a)Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.

(b)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 taxes are offset by corresponding revenue reductions.

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Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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, 2023:

	Final Contractual Maturity
(Millions of Dollars)	Due in 1 year or Less		Due in 1 to 5 Years		Due in 5 to 10 Years		Due after 10 Years		Total
Debt securities	$	1	$	220	$	254	$	239	$	714

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, 2023	Dec. 31, 2022
Megawatt hours of electricity	30	44
Million British thermal units of natural gas	79	88

(a)Not reflective of net positions in the underlying commodities.

(b)Notional amounts for options 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)	Accumulated Other Comprehensive Loss			Regulatory Assets and Liabilities
Three Months Ended March 31, 2023
Derivatives designated as cash flow hedges:
Interest rate	$	(4)	(a)	$	—
Total	$	(4)		$	—
Other derivative instruments:
Electric commodity	$	—		$	(17)
Natural gas commodity	—			2
Total	$	—		$	(15)
Three Months Ended March 31, 2022
Other derivative instruments:
Natural gas commodity	$	—		$	2
Total	$	—		$	2

(a)Recorded to interest charges.

	Pre-Tax Losses (Gains) Reclassified into Income During the Period from:
(Millions of Dollars)	Regulatory Assets and Liabilities			Pre-Tax Gains (Losses) Recognized During the Period in Income
Three Months Ended March 31, 2023
Other derivative instruments:
Commodity trading	$	—		$	(1)	(a)
Electric commodity	14		(b)	—
Natural gas commodity	—			(5)		(c)(d)
Total	$	14		$	(6)
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)

(a)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.

(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. 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.

(c)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.

Changes in Level 3 Commodity Derivatives

Changes in Level 3 commodity derivatives:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Balance at Jan. 1	$	107	$	56
Settlements (a)	(13)		(19)
Net transactions recorded during the period:
(Losses) gains recognized in earnings (b)	(14)		49
Net (losses) recognized as regulatory assets and liabilities (a)	(34)		(10)
Balance at March 31	$	46	$	76

(a)Relates primarily to FTR instruments administered by MISO.

(b)Relates to commodity trading and is subject to offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.

Carrying Amount and Fair Value of Long-term Debt

As of March 31, 2023, other financial instruments for which the carrying amount did not equal fair value:

	March 31, 2023				Dec. 31, 2022
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	6,943	$	6,142	$	6,942	$	5,995

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Benefit Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost (Credit)

Components of Net Periodic Benefit Cost

	Three Months Ended March 31
	2023		2022		2023		2022
(Millions of Dollars)	Pension Benefits				Postretirement Health Care Benefits
Service cost	$	5	$	7	$	—	$	—
Interest cost (a)	9		6		1		1
Expected return on plan assets (a)	(11)		(12)		—		—
Amortization of prior service credit (a)	—		—		—		(1)
Amortization of net loss (a)	3		6		—		—
Settlement charge (b)	—		(1)		—		—
Net periodic benefit cost	6		6		1		—
Effects of regulation	1		1		—		—
Net benefit cost recognized for financial reporting	$	7	$	7	$	1	$	—

(a)The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

(b)In the first quarter of 2022, Xcel Energy recognized $1 million in settlement charge true-ups related to the fourth quarter of 2021.

^[1]

[1] The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

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Commitment and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Lease, Cost

Components of lease expense:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Operating leases
PPA capacity payments	$	25	$	24
Other operating leases (a)	4		3
Total operating lease expense (b)	$	29	$	27

(a)Includes immaterial short-term lease expense for 2023 and 2022.

(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

Commitments under operating leases as of March 31, 2023:

(Millions of Dollars)	PPA Operating Leases		Other Operating Leases		Total Operating Leases
Total minimum obligation	$	293	$	133	$	426
Interest component of obligation	(16)		(55)		(71)
Present value of minimum obligation	$	277	$	78	355
Less current portion					(96)
Noncurrent operating lease liabilities					$	259

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Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax

Changes in accumulated other comprehensive income (loss), net of tax:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
(Millions of Dollars)	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total		Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total
Accumulated other comprehensive loss at Jan. 1	$	(16)	$	(2)	$	(18)	$	(17)	$	(3)	$	(20)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)	(3)		—		(3)		—		—		—
Accumulated other comprehensive loss at Mar. 31	$	(19)	$	(2)	$	(21)	$	(17)	$	(3)	$	(20)

(a)Included in interest charges.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Results from Operations by Reportable Segment

NSP-Minnesota’s segment information:

	Three Months Ended March 31
(Millions of Dollars)	2023		2022
Regulated Electric
Total revenues (a)	$	1,256	$	1,254
Net income	111		98
Regulated Natural Gas
Operating revenues (b)	$	400	$	434
Intersegment revenue	1		—
Total revenues	$	401	$	434
Net income	30		29
All Other
Total revenues	$	10	$	10
Net loss	(2)		—
Consolidated Total
Operating revenues (a)(b)	$	1,667	$	1,698
Reconciling eliminations	(1)		—
Total revenues	$	1,666	$	1,698
Net income	139		127

(a)    Operating revenues include $125 million and $129 million of affiliate electric revenue for the three months ended March 31, 2023 and 2022.

(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2023 and 2022.

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Accounts Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Accounts Receivable	$ 571	$ 580
Less allowance for bad debts	(47)	(46)
Accounts receivable, net	$ 524	$ 534

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Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Public Utilities, Inventory [Line Items]
Inventories	$ 307	$ 384
Materials and supplies
Public Utilities, Inventory [Line Items]
Inventories	204	200
Fuel
Public Utilities, Inventory [Line Items]
Inventories	91	103
Natural Gas
Public Utilities, Inventory [Line Items]
Inventories	$ 12	$ 81

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Property, Plant and Equipment (Details) - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 25,127	$ 24,923
Accumulated depreciation and amortization		(7,729)	(7,734)
Property, plant and equipment, net		17,744	17,478
Electric plant
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		20,402	20,114
Natural gas plant
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		2,120	2,100
Common and other property
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		1,174	1,156
Plant to be Retired (a)
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	[1]	632	646
Construction work in progress
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		799	907
Nuclear fuel
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		3,266	3,183
Accumulated depreciation and amortization		$ (2,920)	$ (2,894)

[1] Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King and are reported net of accumulated depreciation.

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Money Pool (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Amount outstanding at period end	$ 120	$ 207
Money Pool
Short-term Debt [Line Items]
Borrowing limit	250	250
Amount outstanding at period end	0	0
Average amount outstanding	0	0
Maximum amount outstanding	$ 0	$ 4
Weighted average interest rate, computed on a daily basis		3.87%

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Borrowings and Other Financing Instruments Commercial Paper (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Amount outstanding at period end	$ 120	$ 207
Commercial Paper
Short-term Debt [Line Items]
Borrowing limit	700	700
Amount outstanding at period end	120	207
Average amount outstanding	230	21
Maximum amount outstanding	$ 441	$ 290
Weighted average interest rate, computed on a daily basis	4.75%	4.14%
Weighted average interest rate at period end	5.00%	4.64%

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Letters of Credit (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Amount outstanding at period end	$ 120	$ 207
Letter of Credit
Line of Credit Facility [Line Items]
Direct advances on the credit facility outstanding	$ 15	$ 15

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Credit Facility (Details) $ in Millions		3 Months Ended
		Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Amount outstanding at period end		$ 120	$ 207
Credit Facility
Line of Credit Facility [Line Items]
Borrowing limit	[1]	700
Amount outstanding at period end	[2]	$ 135
Number of extension you can request		2
Available		$ 565
Direct advances on the credit facility outstanding		$ 0	$ 0

[1] Expires in September 2027.

[2] Includes outstanding commercial paper and letters of credit.

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Bilateral Credit Agreement (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Amount outstanding at period end	$ 120	$ 207
Letter of Credit | Bilateral Credit Agreement
Short-term Debt [Line Items]
Borrowing Limit	75
Amount outstanding at period end	$ 53
Letter of Credit | Bilateral Credit Agreement | NSP Minnesota [Member]
Short-term Debt [Line Items]
Debt Instrument, Term	1 year

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Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,666	$ 1,698
Regulated Electric | Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	1,256	1,254
Regulated Natural Gas | Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	400	434
All Other | Total revenues
Disaggregation of Revenue [Line Items]
Total revenues	10	10
Retail
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,299	1,285
Retail | Residential
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	574	578
Retail | C&I
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	716	694
Retail | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	9	13
Retail | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	909	860
Retail | Regulated Electric | Residential
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	358	337
Retail | Regulated Electric | C&I
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	543	514
Retail | Regulated Electric | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	8	9
Retail | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	380	415
Retail | Regulated Natural Gas | Residential
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	207	235
Retail | Regulated Natural Gas | C&I
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	173	180
Retail | Regulated Natural Gas | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Retail | All Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	10	10
Retail | All Other | Residential
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	9	6
Retail | All Other | C&I
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Retail | All Other | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1	4
Wholesale
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	104	124
Wholesale | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	104	124
Wholesale | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Wholesale | All Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Transmission
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	64	61
Transmission | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	64	61
Transmission | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Transmission | All Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Interchange
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	125	129
Interchange | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	125	129
Interchange | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Interchange | All Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	3	8
Other | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1	6
Other | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	2	2
Other | All Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Total revenue from contracts with customers
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,595	1,607
Total revenue from contracts with customers | Regulated Electric
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,203	1,180
Total revenue from contracts with customers | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	382	417
Total revenue from contracts with customers | All Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	10	10
Alternative revenue and other
Disaggregation of Revenue [Line Items]
Alternative revenue and other	71	91
Alternative revenue and other | Regulated Electric
Disaggregation of Revenue [Line Items]
Alternative revenue and other	53	74
Alternative revenue and other | Regulated Natural Gas
Disaggregation of Revenue [Line Items]
Alternative revenue and other	18	17
Alternative revenue and other | All Other
Disaggregation of Revenue [Line Items]
Alternative revenue and other	$ 0	$ 0

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Income Taxes (Details)		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Federal statutory rate		21.00%	21.00%
State tax (net of federal tax effect)		7.00%	7.00%
Wind PTCs	[1]	(65.10%)	(68.60%)
Plant regulatory differences	[2]	(6.20%)	(5.70%)
Other tax credits, net operating loss & tax credit allowances		(1.30%)	(1.40%)
Other (net)		1.30%	1.70%
Effective income tax rate		(43.30%)	(46.00%)

[1] Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income

[2] 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 taxes are offset by corresponding revenue reductions.

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Non-Derivative Fair Value Measurements (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023		Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Miscellaneous investments	$ 49		$ 48
Debt Securities, Available-for-sale, Unrealized Gain	1,000		1,000
Debt Securities, Available-for-sale, Unrealized Loss	61		90
Final Contractual Maturity [Abstract]
Due in 1 Year or Less	1
Due in 1 to 5 Years	220
Due in 5 to 10 Years	254
Due after 10 Years	239
Total	714
Fair Value Measured on a Recurring Basis | Cost | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	751	[1]	738	[2]
Fair Value Measured on a Recurring Basis | Fair Value | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	714	[1]	675	[2]
NAV	0	[1]	0	[2]
Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	0	[1]	0	[2]
Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	707	[1]	669	[2]
Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	7	[1]	6	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,045	[1]	1,976	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	44	[1]	29	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Commingled funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commingled funds	743	[1]	803	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	507	[1]	406	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,008	[1]	2,882	[2]
NAV	1,076	[1]	1,178	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	44	[1]	29	[2]
NAV	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Commingled funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commingled funds	1,076	[1]	1,178	[2]
NAV	1,076	[1]	1,178	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	1,174	[1]	1,000	[2]
NAV	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,216	[1]	1,028	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	44	[1]	29	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Commingled funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commingled funds	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	1,172	[1]	999	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	709	[1]	670	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Commingled funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commingled funds	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	2	[1]	1	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	7	[1]	6	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Commingled funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commingled funds	0	[1]	0	[2]
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	$ 0	[1]	$ 0	[2]

[1] Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $49 million of other investments, including the rabbi trust.

[2] Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $48 million of other investments, including the rabbi trust.

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Interest Rate Derivative (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Other Derivative Instruments
Interest Rate Derivatives [Abstract]
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)		$ 14	$ 0
Pre-tax gains (losses) recognized during the period in income		(6)	(4)
Interest Rate Derivatives
Interest Rate Derivatives [Abstract]
Amount or interest rate derivatives expected to be reclassified		1
Derivative Liability, Notional Amount		275
Commodity Trading Contract | Other Derivative Instruments
Interest Rate Derivatives [Abstract]
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)		0	0
Pre-tax gains (losses) recognized during the period in income	[1]	(1)	1
Electric Commodity | Other Derivative Instruments
Interest Rate Derivatives [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		0
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)	[2]	(14)	(1)
Pre-tax gains (losses) recognized during the period in income		0	0
Natural Gas Commodity | Other Derivative Instruments
Interest Rate Derivatives [Abstract]
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)		0	(1)	[3]
Pre-tax gains (losses) recognized during the period in income	[3],[4]	$ (5)	$ (5)

[1] Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.

[2] 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. 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.

[3] 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.

[4] Relates primarily to option premium amortization.

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Commodity Derivatives (Details) MWh in Millions, MMBTU in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2023 USD ($) MWh MMBTU	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) MWh MMBTU
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Miscellaneous investments		$ 49		$ 48
Other Derivative Instruments
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss		0	$ 0
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		(15)	2
Cash flow hedge commodity
Derivative [Line Items]
Commodity contracts designated as cash flow hedges		$ 0
Electric commodity
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Derivative, Nonmonetary Notional amount | MWh	[1],[2]	30		44
Electric commodity | Other Derivative Instruments
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		$ (17)
Natural Gas Commodity
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Derivative, Nonmonetary Notional amount | MMBTU	[1],[2]	79		88
Electric Commodity | Other Derivative Instruments
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		$ 0
Interest Rate Risk | Other Derivative Instruments
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss	[3]	(4)
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		0
Natural gas commodity | Other Derivative Instruments
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract]
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss		0	0
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		$ 2	$ 2

[1] Not reflective of net positions in the underlying commodities.

[2] Notional amounts for options included on a gross basis, but are weighted for the probability of exercise.

[3] Recorded to interest charges.

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Consideration of Credit Risk and Concentrations (Details) $ in Millions		3 Months Ended
		Mar. 31, 2023 USD ($) Counterparty	Mar. 31, 2022 USD ($)		Dec. 31, 2023 Counterparty
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Fair Value Hedges, Net		$ 0	$ 0
Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		(15)	2
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities)		(14)	0
Pre-tax gains (losses) recognized during the period in income		(6)	(4)
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss		0	0
Commodity Trading Contract | Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities)		0	0
Pre-tax gains (losses) recognized during the period in income	[1]	(1)	1
Electric Commodity | Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss		0
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities)	[2]	14	1
Pre-tax gains (losses) recognized during the period in income		0	0
Natural Gas Commodity | Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities)		0	1	[3]
Pre-tax gains (losses) recognized during the period in income	[3],[4]	(5)	(5)
Natural gas commodity | Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		2	2
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss		0	$ 0
Electric commodity | Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		(17)
Interest Rate Risk | Other Derivative Instruments
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		0
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss	[5]	$ (4)
Credit Concentration Risk
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		10
Credit Concentration Risk | Municipal or Cooperative Entities or Other Utilities [Member]
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		5
Credit Concentration Risk | External Credit Rating, Investment Grade [Member]
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		6
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties		$ 30
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties		26.00%
Credit Concentration Risk | Internal Investment Grade [Member]
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		3
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties		$ 28
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties		25.00%
Credit Concentration Risk | External Credit Rating, Non Investment Grade [Member]
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty					1
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties		$ 55
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties		49.00%

[1] Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.

[2] 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. 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.

[3] 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.

[4] Relates primarily to option premium amortization.

[5] Recorded to interest charges.

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Credit Related Contingent Features (Details) $ in Millions		3 Months Ended
		Mar. 31, 2023 USD ($) Counterparty	Mar. 31, 2022 USD ($)		Dec. 31, 2023 Counterparty	Dec. 31, 2022 USD ($)
Fair Value Disclosures [Abstract]
Derivative instruments in a gross liability position		$ 8				$ 4
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value		84				76
Collateral posted related to adequate assurance clauses in derivative contracts		0				0
Derivative [Line Items]
Fair Value Hedges, Net		0	$ 0
Derivative instruments in a gross liability position		8				4
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value		84				76
Collateral Already Posted Adequate Assurance Clauses Aggregate Fair Value		$ 0				$ 0
Credit Concentration Risk
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		10
Credit Concentration Risk | Municipal or Cooperative Entities or Other Utilities [Member]
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		5
External Credit Rating, Investment Grade [Member] | Credit Concentration Risk
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		6
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties		$ 30
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties		26.00%
Internal Investment Grade [Member] | Credit Concentration Risk
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty		3
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties		$ 28
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties		25.00%
External Credit Rating, Non Investment Grade [Member] | Credit Concentration Risk
Derivative [Line Items]
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty					1
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties		$ 55
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties		49.00%
Other Derivative Instruments
Derivative [Line Items]
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)		$ 14	0
Pre-tax gains (losses) recognized during the period in income		(6)	(4)
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		(15)	2
Commodity Trading Contract | Other Derivative Instruments
Derivative [Line Items]
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)		0	0
Pre-tax gains (losses) recognized during the period in income	[1]	(1)	1
Electric Commodity | Other Derivative Instruments
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		0
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)	[2]	(14)	(1)
Pre-tax gains (losses) recognized during the period in income		0	0
Natural Gas Commodity | Other Derivative Instruments
Derivative [Line Items]
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities)		0	(1)	[3]
Pre-tax gains (losses) recognized during the period in income	[3],[4]	(5)	(5)
Natural gas commodity | Other Derivative Instruments
Derivative [Line Items]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		2	$ 2
Electric commodity | Other Derivative Instruments
Derivative [Line Items]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities		$ (17)

[1] Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.

[2] 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. 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.

[3] 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.

[4] Relates primarily to option premium amortization.

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Recurring Fair Value Measurements (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative liability		$ 37		$ 42
Derivative Liability, Noncurrent		105		102
Obligation to return cash		0		0
Right to reclaim cash		5		6
Commodity Trading
Changes in Level 3 Commodity Derivatives [Roll Forward]
Balance at beginning of period		107	$ 56
Settlements	[1]	(13)	(19)
(Losses) gains recognized in earnings (b)	[2]	(14)	49
Net (losses) recognized as regulatory assets and liabilities (a)	[1]	(34)	(10)
Balance at end of period		46	$ 76
Fair Value Measured on a Recurring Basis
Derivatives, Fair Value [Line Items]
Derivative asset, gross		66		149
Netting, asset	[3]	(33)		(60)
Derivative Asset, Noncurrent		75		68
Derivative liability, gross		62		93
Netting, liability	[3]	(38)		(65)
Derivative liability		24		28
Derivative Liability, Noncurrent		78		74
Changes in Level 3 Commodity Derivatives [Roll Forward]
Derivative Asset, Current		33		89
Fair Value Measured on a Recurring Basis | Level 1
Derivatives, Fair Value [Line Items]
Derivative asset, gross		5		15
Derivative liability, gross		7		23
Fair Value Measured on a Recurring Basis | Level 2
Derivatives, Fair Value [Line Items]
Derivative asset, gross		27		43
Derivative liability, gross		50		62
Fair Value Measured on a Recurring Basis | Level 3
Derivatives, Fair Value [Line Items]
Derivative asset, gross		34		91
Derivative liability, gross		5		8
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		54		86
Netting, asset	[3]	(32)		(58)
Derivative Asset, Noncurrent		75		68
Derivative liability, gross		57		89
Netting, liability	[3]	(37)		(63)
Derivative liability		20		26
Derivative Liability, Noncurrent		78		74
Changes in Level 3 Commodity Derivatives [Roll Forward]
Derivative Asset, Current		22		28
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Electric Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		12		58
Netting, asset	[3]	(1)		(2)
Derivative liability, gross		1		2
Netting, liability	[3]	(1)		(2)
Derivative liability		0		0
Changes in Level 3 Commodity Derivatives [Roll Forward]
Derivative Asset, Current		11		56
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		0		5
Netting, asset	[3]	0		0
Derivative liability, gross		0		2
Netting, liability	[3]	0		0
Derivative liability		0		2
Changes in Level 3 Commodity Derivatives [Roll Forward]
Derivative Asset, Current		0		5
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		5		15
Derivative liability, gross		7		23
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Electric Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		0		0
Derivative liability, gross		0		0
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		0		0
Derivative liability, gross		0		0
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		27		38
Derivative liability, gross		46		60
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Electric Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		0		0
Derivative liability, gross		0		0
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		0		5
Derivative liability, gross		0		2
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		22		33
Derivative liability, gross		4		6
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Electric Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		12		58
Derivative liability, gross		1		2
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative asset, gross		0		0
Derivative liability, gross		0		0
Fair Value Measured on a Recurring Basis | Designated as Hedging Instrument [Member] | Interest Rate Derivatives | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Derivative liability		4		0
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets
Derivatives, Fair Value [Line Items]
Derivative asset, gross		123		127
Netting, asset	[3]	(48)		(59)
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 1
Derivatives, Fair Value [Line Items]
Derivative asset, gross		16		21
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 2
Derivatives, Fair Value [Line Items]
Derivative asset, gross		40		40
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 3
Derivatives, Fair Value [Line Items]
Derivative asset, gross		67		66
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		123		127
Netting, asset	[3]	(48)		(59)
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 1 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		16		21
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 2 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		40		40
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 3 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative asset, gross		67		66
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument [Member] | Interest Rate Derivatives
Derivatives, Fair Value [Line Items]
Netting, liability	[3]	0		0
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument [Member] | Interest Rate Derivatives | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Derivative liability, gross		4
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument [Member] | Level 1 | Interest Rate Derivatives | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Derivative liability, gross		0		0
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument [Member] | Level 2 | Interest Rate Derivatives | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Derivative liability, gross		4
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument [Member] | Level 3 | Interest Rate Derivatives | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Derivative liability, gross		0		0
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, gross		126		134
Netting, liability	[3]	(48)		(60)
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 1
Derivatives, Fair Value [Line Items]
Derivative liability, gross		26		37
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 2
Derivatives, Fair Value [Line Items]
Derivative liability, gross		50		55
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 3
Derivatives, Fair Value [Line Items]
Derivative liability, gross		50		42
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative liability, gross		126		134
Netting, liability	[3]	(48)		(60)
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 1 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative liability, gross		26		37
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 2 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative liability, gross		50		55
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 3 | Commodity Trading
Derivatives, Fair Value [Line Items]
Derivative liability, gross		50		42
Fair Value, Measurements, Nonrecurring | PPAs
Derivatives, Fair Value [Line Items]
Derivative liability	[4]	13		14
Derivative Liability, Noncurrent	[4]	$ 27		$ 28

[1] Relates primarily to FTR instruments administered by MISO.

[2] Relates to commodity trading and is subject to offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.

[3] NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At March 31, 2023 and Dec. 31, 2022, derivatives include no obligations to return cash collateral, respectively. At March 31, 2023 and Dec. 31, 2022 derivative assets and liabilities include rights to reclaim cash collateral of $5 million and $6 million, respectively. Counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

[4] NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

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Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	$ 6,943	$ 6,942
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 6,142	$ 5,995

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Benefit Plans and Other Postretirement Benefits (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
		Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Pension Plan [Member]
Components of Net Periodic Benefit Cost [Abstract]
Service Cost			$ 5	$ 7
Interest cost (a)	[1]		9	6
Expected return on plan assets (a)	[1]		(11)	(12)
Amortization of prior service credit (a)	[1]		0	0
Amortization of net loss (a)	[1]		3	6
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement	[2]		0	(1)
Net periodic benefit cost			6	6
Effects of regulation			1	1
Net benefit cost recognized for financial reporting			7	7
Total contributions to the pension plans during the period		$ 23
Pension Plan [Member] | Xcel Energy Inc.
Components of Net Periodic Benefit Cost [Abstract]
Total contributions to the pension plans during the period		$ 50
Other Postretirement Benefits Plan [Member]
Components of Net Periodic Benefit Cost [Abstract]
Service Cost			0	0
Interest cost (a)	[1]		1	1
Expected return on plan assets (a)	[1]		0	0
Amortization of prior service credit (a)	[1]		0	(1)
Amortization of net loss (a)	[1]		0	0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement	[2]		0	0
Net periodic benefit cost			1	0
Effects of regulation			0	0
Net benefit cost recognized for financial reporting			$ 1	$ 0

[1] The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

[2] In the first quarter of 2022, Xcel Energy recognized $1 million in settlement charge true-ups related to the fourth quarter of 2021.

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Commitments and Contingencies - Sherco (Details) $ in Millions	1 Months Ended
	Jan. 31, 2021 USD ($)
Rate Matters [Abstract]
Customer refund of previously recovered purchased power costs	$ 17
Amount MPUC previously disallowed related to Sherco outage	$ 22

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Commitments and Contingencies - MISO ROE Complaints (Details) - Federal Energy Regulatory Commission (FERC) - FERC Proceeding, MISO ROE Complaint - NSP Minnesota and NSP Wisconsin [Member] [Member]	1 Months Ended
	Feb. 28, 2015	Nov. 30, 2013
Public Utilities, General Disclosures [Line Items]
Public Utilities, Base Return On Equity Charged To Customers Through Transmission Formula Rates	12.38%	12.38%
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Recommended By Third Parties	8.67%	9.15%

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Commitments and Contingencies - Environmental, MGP, Landfill or Disposal Sites (Details)	Mar. 31, 2023
Other MGP, Landfill, or Disposal Sites
Site Contingency [Line Items]
Number of identified MGP, landfill, or disposal sites under current investigation and/or remediation	5

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Commitments and Contingencies - Environmental Requirements - Water and Waste (Details) $ in Millions	Mar. 31, 2023 USD ($)
Federal Coal Ash Regulation
Site Contingency [Line Items]
Number of sites where regulated ash units will still be in operation at a specified date	3
Federal Clean Water Act Section 316 (b) | Capital Addition Purchase Commitments
Site Contingency [Line Items]
Liability for estimated cost to comply with regulation	$ 40

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Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Operating Lease, Cost	[1]	$ 29	$ 27
Lessee, Operating Lease, Liability, to be Paid		426
Lessee, Operating Lease, Liability, Undiscounted Excess Amount		(71)
Operating Lease, Liability		355
Operating Lease, Liability, Current		(96)		$ (98)
Operating lease liabilities		259		$ 256
Purchased Power Agreements
Lessee, Lease, Description [Line Items]
Operating Lease, Cost		25	24
Lessee, Operating Lease, Liability, to be Paid		293
Lessee, Operating Lease, Liability, Undiscounted Excess Amount		(16)
Operating Lease, Liability		277
Property, Plant and Equipment, Other Types
Lessee, Lease, Description [Line Items]
Operating Lease, Cost	[2]	4	$ 3
Lessee, Operating Lease, Liability, to be Paid		133
Lessee, Operating Lease, Liability, Undiscounted Excess Amount		(55)
Operating Lease, Liability		$ 78

[1] 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.

[2] Includes immaterial short-term lease expense for 2023 and 2022.

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Commitments and Contingencies - Variable Interest Entities (Details) - MW	Mar. 31, 2023	Dec. 31, 2022
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Variable Interest Entity [Line Items]
Generating capacity under long term purchased power agreements	1,347	1,322

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Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income at beginning of period		$ 7,836
Accumulated other comprehensive (loss) income at end of period		7,950
Income Tax Expense (Benefit)		(42)	$ (40)
Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income at beginning of period		(16)	(17)
Accumulated other comprehensive (loss) income at end of period		(19)	(17)
Gains and Losses on Cash Flow Hedges | Interest Rate Swap [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	[1]	(3)	0
Defined Benefit Pension and Postretirement Items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income at beginning of period		(2)	(3)
Accumulated other comprehensive (loss) income at end of period		(2)	(3)
Defined Benefit Pension and Postretirement Items | Interest Rate Swap [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	[1]	0	0
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive (loss) income at beginning of period		(18)	(20)
Accumulated other comprehensive (loss) income at end of period		(21)	(20)
Total | Interest Rate Swap [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	[1]	$ (3)	$ 0

[1] Included in interest charges

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Segment Information (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Net income		$ 139	$ 127
Natural gas		400	434
Other		10	10
Regulated and Unregulated Operating Revenue		1,666	1,698
Affiliate Revenue		125	129
Total revenues
Segment Reporting Information [Line Items]
Regulated and Unregulated Operating Revenue	[1],[2]	1,667	1,698
Intersegment Eliminations
Segment Reporting Information [Line Items]
Regulated and Unregulated Operating Revenue		(1)	0
Regulated Electric
Segment Reporting Information [Line Items]
Net income		111	98
Revenues Including Intersegment Revenues		1,256	1,254
Regulated Natural Gas
Segment Reporting Information [Line Items]
Net income		30	29
Revenues Including Intersegment Revenues		401	434
Regulated Natural Gas | Total revenues
Segment Reporting Information [Line Items]
Natural gas	[2]	400	434
Regulated Natural Gas | Intersegment Eliminations
Segment Reporting Information [Line Items]
Natural gas		1	0
All Other
Segment Reporting Information [Line Items]
Net income		(2)	0
All Other | Total revenues
Segment Reporting Information [Line Items]
Other		$ 10	$ 10

[1] Operating revenues include $125 million and $129 million of affiliate electric revenue for the three months ended March 31, 2023 and 2022.

[2] Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2023 and 2022.