Schedule I, Condensed Financial Statements of Xcel Energy Inc

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule I, Condensed Financial Information

	Year Ended Dec. 31
	2022		2021		2020
Income
Equity earnings of subsidiaries	$	1,905	$	1,744	$	1,646
Total income	1,905		1,744		1,646
Expenses and other deductions
Operating expenses	19		21		43
Other (income) expenses	(2)		3		(4)
Interest charges and financing costs	206		173		198
Total expenses and other deductions	223		197		237
Income before income taxes	1,682		1,547		1,409
Income tax benefit	(54)		(50)		(64)
Net income	$	1,736	$	1,597	$	1,473
Other Comprehensive Income
Pension and retiree medical benefits, net of tax of $ 1, $1 and $1, respectively	$	9	$	8	$	5
Derivative instruments, net of tax of $3, $(1) and $(7), respectively	21		10		(5)
Other comprehensive income	30		18		—
Comprehensive income	$	1,766	$	1,615	$	1,473
Weighted average common shares outstanding:
Basic	547		539		527
Diluted	547		540		528
Earnings per average common share:
Basic	$	3.18	$	2.96	$	2.79
Diluted	3.17		2.96		2.79
See Notes to Condensed Financial Statements

	Year Ended Dec. 31
	2022		2021		2020
Operating activities
Net cash provided by operating activities	$	1,340	$	1,147	$	2,377
Investing activities
Capital contributions to subsidiaries	(921)		(1,661)		(2,553)
Net return (investments) in the utility money pool	—		57		(18)
Other, net	—		—		(1)
Net cash used in investing activities	(921)		(1,604)		(2,572)
Financing activities
Proceeds (repayment of) from short-term borrowings, net	(407)		638		(500)
Proceeds from issuance of long-term debt	694		791		1,089
Repayment of long-term debt	—		(400)		(300)
Proceeds from issuance of common stock	322		366		727
Repurchase of common stock	—		—		(4)
Dividends paid	(1,012)		(935)		(856)
Other	(16)		(16)		(17)
Net cash provided by financing activities	(419)		444		139
Net change in cash, cash equivalents, and restricted cash	—		(13)		(56)
Cash, cash equivalents and restricted cash at beginning of period	1		14		70
Cash, cash equivalents and restricted cash at end of period	$	1	$	1	$	14
See Notes to Condensed Financial Statements

	Dec. 31
	2022		2021
Assets
Cash and cash equivalents	$	1	$	1
Accounts receivable from subsidiaries	443		430
Derivative instruments	1		—
Other current assets	7		6
Total current assets	452		437
Investment in subsidiaries	22,597		21,167
Other assets	(7)		71
Total other assets	22,590		21,238
Total assets	$	23,042	$	21,675
Liabilities and Equity
Current portion of long-term debt	500		—
Dividends payable	268		249
Short-term debt	231		638
Other current liabilities	17		29
Total current liabilities	1,016		916
Other liabilities	13		10
Total other liabilities	13		10
Commitments and contingencies
Capitalization
Long-term debt	5,338		5,137
Common stockholders' equity	16,675		15,612
Total capitalization	22,013		20,749
Total liabilities and equity	$	23,042	$	21,675
See Notes to Condensed Financial Statements

Notes to Condensed Financial Statements

Incorporated by reference are Xcel Energy’s consolidated statements of common stockholders’ equity and other comprehensive income in Part II, Item 8.

Basis of Presentation — The condensed financial information of Xcel Energy Inc. is presented to comply with Rule 12-04 of Regulation S-X. Xcel Energy Inc.’s investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in net assets of the subsidiaries are recorded in the balance sheets. The income from operations of the subsidiaries is reported on a net basis as equity in income of subsidiaries.

As a holding company with no business operations, Xcel Energy Inc.’s assets consist primarily of investments in its utility subsidiaries. Xcel Energy Inc.’s material cash inflows are only from dividends and other payments received from its utility subsidiaries and the proceeds raised from the sale of debt and equity securities. The ability of its utility subsidiaries to make dividend and other payments is subject to the availability of funds after taking into account their respective funding requirements, the terms of their respective indebtedness, the regulations of the FERC under the Federal Power Act, and applicable state laws. Management does not expect maintaining these requirements to have an impact on Xcel Energy Inc.’s ability to pay dividends at the current level in the foreseeable future. Each of its utility subsidiaries, however, is legally distinct and has no obligation, contingent or otherwise, to make funds available to Xcel Energy Inc.

Guarantees and Indemnifications

Xcel Energy Inc. provides guarantees and bond indemnities under specified agreements or transactions, which guarantee payment or performance. Xcel Energy Inc.’s exposure is based upon the net liability of the relevant subsidiary under the specified agreements or transactions. Most of the guarantees and bond indemnities issued by Xcel Energy Inc. limit the exposure to a maximum stated amount. As of Dec. 31, 2022 and 2021, Xcel Energy Inc. had no assets held as collateral related to guarantees, bond indemnities and indemnification agreements.

Guarantees and bond indemnities issued and outstanding as of Dec. 31, 2022:

(Millions of Dollars)	Guarantor	Guarantee Amount		Current Exposure	Triggering Event
Guarantee of loan for Hiawatha Collegiate High School (a)	Xcel Energy Inc.	$	1	—	(b)
Guarantee of Capital Services purchase contract for solar generating equipment. (c)	Xcel Energy Inc.	98		(d)	(b)
Guarantee performance and payment of surety bonds for Xcel Energy Inc.’s utility subsidiaries (e)	Xcel Energy Inc.	61		(f)	(g)

(a)The guarantee expires the earlier of 2024 or full repayment of the loan.

(b)Nonperformance and/or nonpayment.

(c)The guarantee expires the earlier of termination or payment of all obligations under the purchase contract.

(d)Given that the manufacturing of solar generating equipment has not yet commenced, related exposure to the payment obligations of Capital Services at Dec. 31, 2022 is immaterial.

(e)The surety bonds primarily relate to workers compensation benefits and utility projects. The workers compensation bonds are renewed annually and the project based bonds expire in conjunction with the completion of the related projects.

(f)Due to the magnitude of projects associated with the surety bonds, the total current exposure of this indemnification cannot be determined. Xcel Energy Inc. believes the exposure to be significantly less than the total amount of the outstanding bonds.

(g)Per the indemnity agreement between Xcel Energy Inc. and the various surety companies, surety companies have the discretion to demand that collateral be posted.

Indemnification Agreements

Xcel Energy Inc. provides indemnifications through contracts entered into in the normal course of business. Indemnifications are primarily against adverse litigation outcomes in connection with underwriting agreements, breaches of representations and warranties, including corporate existence, transaction authorization and certain income tax matters. Obligations under these agreements may be limited in terms of duration or amount. Maximum future payments under these indemnifications cannot be reasonably estimated as the dollar amounts are often not explicitly stated.

Related Party Transactions — Xcel Energy Inc. presents related party receivables net of payables. Accounts receivable net of payables with affiliates at Dec. 31:

(Millions of Dollars)	2022		2021
NSP-Minnesota	$	82	$	104
NSP-Wisconsin	17		25
PSCo	111		91
SPS	61		58
Xcel Energy Services Inc.	145		125
Other subsidiaries of Xcel Energy Inc.	27		27
	$	443	$	430

Dividends — Cash dividends paid to Xcel Energy Inc. by its subsidiaries were $1,503 million, $1,344 million and $2,527 million for the years ended Dec. 31, 2022, 2021 and 2020, respectively. These cash receipts are included in operating cash flows of the condensed statements of cash flows.

Money Pool — FERC approval was received to establish a utility money pool arrangement with the utility subsidiaries, subject to receipt of required state regulatory approvals. The utility money pool allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. 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 Inc.

Money pool lending for Xcel Energy Inc.:

(Amounts in Millions, Except Interest Rates)	Three Months Ended Dec. 31, 2022
Loan outstanding at period end	$	—
Average loan outstanding	1
Maximum loan outstanding	50
Weighted average interest rate, computed on a daily basis	0.01		%
Weighted average interest rate at end of period	N/A
Money pool interest income	$	—

(Amounts in Millions, Except Interest Rates)	Year Ended Dec. 31, 2022			Year Ended Dec. 31, 2021			Year Ended Dec. 31, 2020
Loan outstanding at period end	$	—		$	—		$	57
Average loan outstanding	10			16			104
Maximum loan outstanding	204			439			350
Weighted average interest rate, computed on a daily basis	0.73		%	0.08		%	0.60		%
Weighted average interest rate at end of period	N/A			N/A			0.07
Money pool interest income	$	—		$	—		$	1

See notes to the consolidated financial statements in Part II, Item 8.