Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

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

Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. The following reconciles such differences:



	Three Months Ended March 31
	2018		2017
Federal statutory rate	21.0	%	35.0	%
State tax, net of federal tax effect	4.9	%	4.0	%
Increases (decreases) in tax from:
Wind production tax credits	(6.0	)	(4.0	)
Regulatory differences - ARAM^(a)	(5.8	)	(0.1	)
Regulatory differences - ARAM deferral ^(b)	5.4		—
Regulatory differences - other utility plant items	(1.0	)	(0.5	)
Other, net	(1.6	)	(1.5	)
Effective income tax rate	16.9	%	32.9	%


^(a)	The average rate assumption method (ARAM); a method to flow back excess deferred taxes to customers.


^(b)	As we receive direction from our regulatory commissions regarding the return of excess deferred taxes (to our customers resulting from the TCJA), the ARAM deferral may decrease during the year, which would result in a reduction to tax expense with a corresponding reduction to revenue.

Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block]

Xcel Energy files a consolidated federal income tax return. The statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows:



Tax Year(s)		Expiration
2009 - 2011		December 2018
2012 - 2013		October 2018
2014		September 2018
2015		September 2019
2016		September 2020

Earliest Open Tax Years Subject to Examination by State Taxing Authorities in the Major Operating Jurisdictions

State Audits — Xcel Energy files consolidated state tax returns based on income in its major operating jurisdictions of Colorado, Minnesota, Texas, and Wisconsin, and various other state income-based tax returns. As of March 31, 2018, Xcel Energy’s earliest open tax years that are subject to examination by state taxing authorities in its major operating jurisdictions were as follows:



State		Year
Colorado		2009
Minnesota		2009
Texas		2009
Wisconsin		2012

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the amount of unrecognized tax benefit is as follows:



(Millions of Dollars)	March 31, 2018		Dec. 31, 2017
Unrecognized tax benefit — Permanent tax positions	$	21	$	20
Unrecognized tax benefit — Temporary tax positions	19		19
Total unrecognized tax benefit	$	40	$	39

Tax Benefits Associated with NOL and Tax Credit Carryforwards

The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows:



(Millions of Dollars)	March 31, 2018			Dec. 31, 2017
NOL and tax credit carryforwards	$	(32	)	$	(31	)

Interest Payable related to Unrecognized Tax Benefits [Table Text Block]

The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. The payables for interest related to unrecognized tax benefits at March 31, 2018 and Dec. 31, 2017 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of March 31, 2018 or Dec. 31, 2017.