Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Cost and Fair Value of Nuclear Decommissioning Fund Investments

	Dec. 31, 2019
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		NAV		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	33	$	33	$	—	$	—	$	—	$	33
Commingled funds	733		—		—		—		935		935
Debt securities	489		—		495		13		—		508
Equity securities	485		962		2		—		—		964
Total	$	1,740	$	995	$	497	$	13	$	935	$	2,440

^(a) 

Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $155 million of equity investments in unconsolidated subsidiaries and $136 million of rabbi trust assets and miscellaneous investments.

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

	March 31, 2020
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		NAV		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	71	$	71	$	—	$	—	$	—	$	71
Commingled funds	756		—		—		—		843		843
Debt securities	514		—		488		13		—		501
Equity securities	435		726		1		—		—		727
Total	$	1,776	$	797	$	489	$	13	$	843	$	2,142

 

^(a) 

Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $158 million of equity investments in unconsolidated subsidiaries and $129 million of rabbi trust assets and miscellaneous investments.

Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class

Contractual maturity dates of debt securities in the nuclear decommissioning fund as of March 31, 2020:

	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	$	11	$	81	$	205	$	204	$	501

Rabbi Trust Securities Amortized Cost and Fair Value Measured on Recurrring Basis [Table Text Block]

Cost and fair value of assets held in rabbi trusts:

	March 31, 2020
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Rabbi Trusts (a)
Cash equivalents	$	17	$	17	$	—	$	—	$	17
Mutual funds	57		56		—		—		56
Total	$	74	$	73	$	—	$	—	$	73

	Dec. 31, 2019
			Fair Value
(Millions of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Rabbi Trusts (a)
Cash equivalents	$	17	$	17	$	—	$	—	$	17
Mutual funds	57		65		—		—		65
Total	$	74	$	82	$	—	$	—	$	82

^(a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet.

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, 2020	Dec. 31, 2019
MWh of electricity	79	95
MMBtu of natural gas	149	110

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

^(b) 

Notional amounts for options included on a gross basis but 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, 2020
Derivatives designated as cash flow hedges
Interest rate	$	(13	)	$	—
Total	(13		)	—
Three Months Ended March 31, 2019
Derivatives designated as cash flow hedges
Interest rate	(9		)	—
Total	(9		)	—
Other derivative instruments
Electric commodity	—			12
Natural gas commodity	—			4
Total	$	—		$	16

	Pre-Tax (Gains) Losses Reclassified into Income During the Period from:							Pre-Tax Gains (Losses) Recognized During the Period in Income
(Millions of Dollars)	Accumulated Other Comprehensive Loss			Regulatory Assets and (Liabilities)
Three Months Ended March 31, 2020
Derivatives designated as cash flow hedges
Interest rate	$	2	(a)	$	—			$	—
Total	2			—				—
Other derivative instruments
Commodity trading	—			—				1			(b)
Electric commodity	—			(4		)	(c)	—
Natural gas commodity	—			5			(d)	(6		)	(d)
Total	—			1				(5		)
Three Months Ended March 31, 2019
Derivatives designated as cash flow hedges
Interest rate	1		(a)	—				—
Total	1			—				—
Other derivative instruments
Commodity trading	—			—				1			(b)
Electric commodity	—			1			(c)	—
Natural gas commodity	—			(1		)	(d)	(3		)	(d)
Total	$	—		$	—			$	(2	)

^(a)  Recorded to interest charges.

^(b)  Recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue, as appropriate.

^(c)  Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.

^(d)  Amounts for both the three months ended March 31, 2020 and 2019 included no settlement gains or losses on derivatives entered to mitigate natural gas price risk for electric generation recorded to electric fuel and purchased power, subject to cost-recovery mechanisms and reclassified to a regulatory asset, as appropriate. Remaining settlement losses for the three months ended March 31, 2020 and 2019 related to natural gas operations and were recorded to cost of natural gas sold and transported. These gains and losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset or liability, as appropriate.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Recurring Fair Value Measurements — Derivative assets and liabilities measured at fair value on a recurring basis:

	March 31, 2020													Dec. 31, 2019
	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	$	8	$	63	$	16	$	87	$	(63	)	$	24	$	3	$	51	$	24	$	78	$	(52	)	$	26
Electric commodity	—		—		18		18		—			18		—		—		21		21		(1		)	20
Natural gas commodity	—		—		—		—		—			—		—		6		—		6		—			6
Total current derivative assets	$	8	$	63	$	34	$	105	$	(63	)	42		$	3	$	57	$	45	$	105	$	(53	)	52
PPAs (b)												3													3
Current derivative instruments												$	45												$	55
Noncurrent derivative assets
Other derivative instruments:
Commodity trading	$	10	$	38	$	22	$	70	$	(45	)	$	25	$	9	$	38	$	7	$	54	$	(45	)	$	9
Electric commodity	—		—		2		2		—			2		—		—		—		—		—			—
Total noncurrent derivative assets	$	10	$	38	$	24	$	72	$	(45	)	27		$	9	$	38	$	7	$	54	$	(45	)	9
PPAs (b)												12													13
Noncurrent derivative instruments												$	39												$	22

	March 31, 2020													Dec. 31, 2019
	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	$	—	$	13	$	—	$	13	$	—		$	13	$	—	$	—	$	—	$	—	$	—		$	—
Other derivative instruments:
Commodity trading	$	8	$	62	$	14	$	84	$	(63	)	$	21	$	4	$	59	$	15	$	78	$	(63	)	$	15
Electric commodity	—		—		—		—		—			—		—		—		1		1		(1		)	—
Natural gas commodity	—		—		—		—		—			—		—		5		—		5		—			5
Total current derivative liabilities	$	8	$	75	$	14	$	97	$	(63	)	34		$	4	$	64	$	16	$	84	$	(64	)	20
PPAs (b)												18													18
Current derivative instruments												$	52												$	38
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading	$	3	$	89	$	39	$	131	$	(19	)	$	112	$	2	$	79	$	32	$	113	$	(13	)	$	100
Total noncurrent derivative liabilities	$	3	$	89	$	39	$	131	$	(19	)	112		$	2	$	79	$	32	$	113	$	(13	)	100
PPAs (b)												71													75
Noncurrent derivative instruments												$	183												$	175

^(a)  Xcel Energy nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2020 and Dec. 31, 2019. At both March 31, 2020 and Dec. 31, 2019, derivative assets and liabilities include $32 million of obligations to return cash collateral and rights to reclaim cash collateral of $6 million and $11 million, respectively. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

^(b)  During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, contracts are no longer adjusted to fair value and the previous carrying value of these contracts is being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

Change in Level 3 Commodity Derivative

Changes in Level 3 commodity derivatives:

	Three Months Ended March 31
(Millions of Dollars)	2020			2019
Balance at Jan. 1	$	4		$	29
Purchases	12			4
Settlements	(18		)	(11		)
Net transactions recorded during the period:
Gains (losses) recognized in earnings (a)	6			(18		)
Net gains (losses) recognized as regulatory assets and liabilities	1			(11		)
Balance at March 31	$	5		$	(7	)

^(a) 

Amounts relate to commodity derivatives held at the end of the period.

Carrying Amount and Fair Value of Long-term Debt

Other financial instruments which the carrying amount did not equal fair value:

	March 31, 2020				Dec. 31, 2019
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	18,112	$	19,864	$	18,109	$	20,227