Benefit Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Benefit Plans and Other Postretirement Benefits [Abstract]

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost

	Pension Benefits						Postretirement Benefits
(Millions of Dollars)	2019			2018			2019			2018
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	1,447		$	1,633		$	95		$	116
Prior service credit	(15		)	(20		)	(23		)	(33		)
Total	$	1,432		$	1,613		$	72		$	83
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	78		$	94		$	—		$	—
Noncurrent regulatory assets	1,285			1,446			80			89
Current regulatory liabilities	—			—			(1		)	(1		)
Noncurrent regulatory liabilities	—			—			(12		)	(10		)
Deferred income taxes	18			19			1			1
Net-of-tax accumulated other comprehensive income	51			54			4			4
Total	$	1,432		$	1,613		$	72		$	83

Components of Net Periodic Benefit Costs

Net Periodic Benefit Cost (Credit) — Net periodic benefit cost (credit), other than the service cost component, is included in other income in the consolidated statements of income.

Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income and regulatory assets and liabilities:

	Pension Benefits									Postretirement Benefits
(Millions of Dollars)	2019			2018			2017			2019			2018			2017
Service cost	$	86		$	94		$	94		$	2		$	2		$	2
Interest cost	145			133			147			22			22			24
Expected return on plan assets	(203		)	(209		)	(209		)	(21		)	(26		)	(25		)
Amortization of prior service credit	(5		)	(5		)	(2		)	(10		)	(11		)	(11		)
Amortization of net loss	87			111			107			5			8			7
Settlement charge (a)	6			91			81			—			—			—
Net periodic pension cost (credit)	116			215			218			(2		)	(5		)	(3		)
Costs not recognized due to effects of regulation	(1		)	(75		)	(79		)	1			2			—
Net benefit cost (credit) recognized for financial reporting	$	115		$	140		$	139		$	(1	)	$	(3	)	$	(3	)
Significant Assumptions Used to Measure Costs:
Discount rate	4.31		%	3.63		%	4.13		%	4.32		%	3.62		%	4.13		%
Expected average long-term increase in compensation level	3.75			3.75			3.75			—			—			—
Expected average long-term rate of return on assets	6.87			6.87			6.87			4.50			5.30			5.80

^(a) 

A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2019 and 2018, as a result of lump-sum distributions during the 2019 and 2018 plan years, Xcel Energy recorded a total pension settlement charge of $6 million in 2019 and $91 million in 2018, the majority of which was not recognized due to the effects of regulation. A total of $1 million and $11 million was recorded in the consolidated statements of income in 2019 and 2018, respectively.

Target Asset Allocations and Plan Assets Measured at Fair Value

.

Targeted asset allocations:

	Pension Benefits				Postretirement Benefits
	2019		2018		2019		2018
Domestic and international equity securities	37	%	36	%	15	%	18	%
Long-duration fixed income securities	30		30		—		—
Short-to-intermediate fixed income securities	14		17		72		70
Alternative investments	17		15		9		8
Cash	2		2		4		4
Total	100	%	100	%	100	%	100	%

or each of the fair value hierarchy levels, Xcel Energy’s pension plan assets measured at fair value:

	Dec. 31, 2019 (a)													Dec. 31, 2018 (a)
(Millions of Dollars)	Level 1			Level 2		Level 3		Measured at NAV			Total			Level 1		Level 2		Level 3		Measured at NAV			Total
Cash equivalents	$	145		$	—	$	—	$	—		$	145		$	137	$	—	$	—	$	—		$	137
Commingled funds	1,408			—		—		1,031			2,439			914		—		—		987			1,901
Debt securities	—			645		4		—			649			—		621		—		—			621
Equity securities	86			—		—		—			86			106		—		—		—			106
Other	(120		)	5		—		(20		)	(135		)	2		5		—		(30		)	(23		)
Total	$	1,519		$	650	$	4	$	1,011		$	3,184		$	1,159	$	626	$	—	$	957		$	2,742

^(a)  See Note 10 for further information regarding fair value measurement inputs and methods.

For each of the fair value hierarchy levels, Xcel Energy’s postretirement benefit plan assets that were measured at fair value:

	Dec. 31, 2019 (a)										Dec. 31, 2018 (a)
(Millions of Dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total		Level 1		Level 2		Level 3		Measured at NAV		Total
Cash equivalents	$	23	$	—	$	—	$	—	$	23	$	19	$	—	$	—	$	—	$	19
Insurance contracts	—		51		—		—		51		—		45		—		—		45
Commingled funds	69		—		—		76		145		133		—		—		40		173
Debt securities	—		228		1		—		229		—		179		—		—		179
Other	—		1		—		—		1		—		1		—		—		1
Total	$	92	$	280	$	1	$	76	$	449	$	152	$	225	$	—	$	40	$	417

^(a) 

See Note 10 for further information on fair value measurement inputs and methods.

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]

Funded Status — Comparisons of the actuarially computed benefit obligation, changes in plan assets and funded status of the pension and postretirement health care plans for Xcel Energy are as follows:

	Pension Benefits						Postretirement Benefits
(Millions of Dollars)	2019			2018			2019			2018
Change in Benefit Obligation:
Obligation at Jan. 1	$	3,477		$	3,828		$	542		$	621
Service cost	86			94			2			2
Interest cost	145			133			22			22
Plan amendments	1			—			—			—
Actuarial loss (gain)	273			(224		)	19			(62		)
Plan participants’ contributions	—			—			8			8
Medicare subsidy reimbursements	—			—			1			1
Benefit payments (a)	(281		)	(354		)	(47		)	(50		)
Obligation at Dec. 31	$	3,701		$	3,477		$	547		$	542
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	2,742		$	3,088		$	417		$	461
Actual return on plan assets	568			(142		)	56			(13		)
Employer contributions	155			150			15			11
Plan participants’ contributions	—			—			8			8
Benefit payments	(281		)	(354		)	(47		)	(50		)
Fair value of plan assets at Dec. 31	$	3,184		$	2,742		$	449		$	417
Funded status of plans at Dec. 31	$	(517	)	$	(735	)	$	(98	)	$	(125	)
Amounts recognized in the Consolidated Balance Sheet at Dec. 31:
Noncurrent assets	$	—		$	—		$	21		$	—
Current liabilities	—			—			(6		)	(7		)
Noncurrent liabilities	(517		)	(735		)	(113		)	(118		)
Net amounts recognized	$	(517	)	$	(735	)	$	(98	)	$	(125	)

^(a) 

Includes approximately $20 million in 2019 and $198 million in 2018 of lump-sum benefit payments used in the determination of a settlement charge.

Projected Benefit Payments for the Pension and Postretirement Benefit Plans

Xcel Energy’s projected benefit payments:

(Millions of Dollars)	Projected Pension Benefit Payments		Gross Projected Postretirement Health Care Benefit Payments		Expected Medicare Part D Subsidies		Net Projected Postretirement Health Care Benefit Payments
2020	$	278	$	44	$	2	$	42
2021	263		43		2		41
2022	262		42		2		40
2023	260		41		2		39
2024	255		40		2		38
2025-2029	1,205		181		13		168