Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

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

Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:

Tax Year(s)	Expiration
2014 - 2016	March 2024
2019	October 2023

State Statute of Limitations Applicable to Open Tax Years

State	Tax Year(s)	Expiration
Colorado	2014 - 2016	March 2025
Colorado	2018	September 2023
Minnesota	2014 - 2016	September 2024
Minnesota	2018	June 2023
Texas	2016	May 2023
Texas	2017	July 2025
Texas	2018	November 2023
Wisconsin	2016 - 2017	April 2023
Wisconsin	2018	October 2023

Reconciliation of Unrecognized Tax Benefits

Unrecognized tax benefits - permanent vs. temporary:

(Millions of Dollars)	Dec. 31, 2022		Dec. 31, 2021
Unrecognized tax benefit — Permanent tax positions	$	55	$	47
Unrecognized tax benefit — Temporary tax positions	12		11
Total unrecognized tax benefit	$	67	$	58

Changes in unrecognized tax benefits:

(Millions of Dollars)	2022		2021		2020
Balance at Jan. 1	$	58	$	52	$	44
Additions based on tax positions related to the current year	7		5		9
Reductions based on tax positions related to the current year	—		—		(2)
Additions for tax positions of prior years	6		2		35
Reductions for tax positions of prior years	(1)		(1)		(34)
Reductions for tax positions related to settlements with taxing authorities	(1)		—		—
Reductions for tax positions related to statute of limitations	(2)		—		—
Balance at Dec. 31	$	67	$	58	$	52

Tax Benefits Associated with NOL and Tax Credit Carryforwards

Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:

(Millions of Dollars)	Dec. 31, 2022		Dec. 31, 2021
NOL and tax credit carryforwards	$	(40)	$	(36)

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

Interest payable related to unrecognized tax benefits:

(Millions of Dollars)	2022		2021		2020
Payable for interest related to unrecognized tax benefits at Jan. 1	$	(3)	$	(3)	$	—
Interest expense related to unrecognized tax benefits	(1)		—		(3)
Payable for interest related to unrecognized tax benefits at Dec. 31	$	(4)	$	(3)	$	(3)

NOL and Tax Credit Carryforwards

NOL amounts represent the tax loss that is carried forward and tax credits represent the deferred tax asset. NOL and tax credit carryforwards as of Dec. 31:

(Millions of Dollars)	2022		2021
Federal NOL carryforward	$	20	$	765
Federal tax credit carryforwards	1,593		1,172
State NOL carryforwards	1,022		1,648
Valuation allowances for state NOL carryforwards	(3)		(3)
State tax credit carryforwards, net of federal detriment (a)	85		89
Valuation allowances for state credit carryforwards, net of federal benefit (b)	(62)		(64)

(a)State tax credit carryforwards are net of federal detriment of $23 million and $24 million as of Dec. 31, 2022 and 2021.

(b)Valuation allowances for state tax credit carryforwards were net of federal benefit of $16 million and $17 million as of Dec. 31, 2022 and 2021.

Schedule of Effective Income Tax Rate Reconciliation

Effective income tax rate for years ended Dec. 31:

	2022		2021 (a)		2020 (a)
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income tax on pretax income, net of federal tax effect	4.9		5.0		4.9
(Decreases) increases in tax from:
Wind PTCs (b)	(27.4)		(23.4)		(15.7)
Plant regulatory differences (c)	(5.5)		(6.2)		(7.6)
Other tax credits, net NOL & tax credit allowances	(1.3)		(1.1)		(1.2)
NOL Carryback	—		—		(0.9)
Other, net	(0.1)		0.1		(0.9)
Effective income tax rate	(8.4)	%	(4.6)	%	(0.4)	%

(a)Prior period amounts have been restated to conform with current year presentation.

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

(c)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 and additional prepaid pension asset amortization.

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense for years ended Dec. 31:

(Millions of Dollars)	2022		2021		2020
Current federal tax expense (benefit)	$	1	$	15	$	(13)
Current state tax expense (benefit)	3		(2)		2
Current change in unrecognized tax expense	5		1		18
Deferred federal tax benefit	(239)		(183)		(89)
Deferred state tax expense	96		99		91
Deferred change in unrecognized tax expense (benefit)	3		5		(10)
Deferred ITCs	(4)		(5)		(5)
Total income tax benefit	$	(135)	$	(70)	$	(6)

Components of deferred income tax expense as of Dec. 31:

(Millions of Dollars)	2022		2021		2020
Deferred tax (benefit) expense excluding items below	$	(138)	$	148	$	237
Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities	8		(221)		(247)
Tax (benefit) expense allocated to other comprehensive income and other	(10)		(6)		2
Deferred tax benefit	$	(140)	$	(79)	$	(8)

Schedule of Deferred Tax Assets and Liabilities

Components of net deferred tax liability as of Dec. 31:

(Millions of Dollars)	2022		2021 (a)
Deferred tax liabilities:
Differences between book and tax bases of property	$	6,442	$	6,231
Regulatory assets	508		560
Operating lease assets	325		351
Deferred fuel costs	222		262
Pension expense	159		175
Other	92		88
Total deferred tax liabilities	$	7,748	$	7,667
Deferred tax assets:
Tax credit carryforward	$	1,679	$	1,261
Regulatory liabilities	742		742
Operating lease liabilities	325		351
Other employee benefits	102		119
NOL carryforward	57		247
NOL and tax credit valuation allowances	(62)		(64)
Deferred ITCs	14		15
Other	135		102
Total deferred tax assets	$	2,992	$	2,773
Net deferred tax liability	$	4,756	$	4,894

(a)Prior periods have been reclassified to conform to current year presentation.