Borrowings and Other Financing Instruments

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowings and Other Financing Instruments

4. Borrowings and Other Financing Instruments

Short-Term Borrowings

Short-Term Debt — Xcel Energy Inc. and its utility subsidiaries meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under their credit facilities and term loan agreements.

Commercial paper and term loan borrowings outstanding for Xcel Energy:

(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2023			Year Ended Dec. 31, 2022
Borrowing limit	$	3,550		$	3,550
Amount outstanding at period end	—			813
Average amount outstanding	190			552
Maximum amount outstanding	613			1,357
Weighted average interest rate, computed on a daily basis	5.35		%	1.47		%
Weighted average interest rate at period end	N/A			4.66

Letters of Credit — Xcel Energy Inc. and its utility subsidiaries use letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There were $46 million and $43 million of letters of credit outstanding under the credit facilities at both Sept. 30, 2023 and Dec. 31, 2022. Amounts approximate their fair value and are subject to fees.

Revolving Credit Facilities — In order to issue commercial paper, Xcel Energy Inc. and its utility subsidiaries must have revolving credit facilities equal to or greater than the commercial paper borrowing limits and cannot issue commercial paper exceeding available credit facility capacity. The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

As of Sept. 30, 2023, Xcel Energy Inc. and its utility subsidiaries had the following committed revolving credit facilities available:

(Millions of Dollars)	Credit Facility (a)		Drawn (b)		Available
Xcel Energy Inc.	$	1,500	$	—	$	1,500
PSCo	700		29		671
NSP-Minnesota	700		15		685
SPS	500		2		498
NSP-Wisconsin	150		—		150
Total	$	3,550	$	46	$	3,504

(a)Expires in September 2027.

(b)Includes outstanding commercial paper and letters of credit.

Xcel Energy Inc., NSP-Minnesota, PSCo, and SPS each have the right to request an extension of the credit facility termination date for two additional one-year periods. NSP-Wisconsin has the right to request an extension of the credit facility termination date for an additional one-year period. All extension requests are subject to majority bank group approval.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity of the credit facility. Xcel Energy Inc. and its utility subsidiaries had no direct advances on the credit facilities outstanding as of Sept. 30, 2023 and Dec. 31, 2022.

Bilateral Credit Agreement

In April 2023, NSP-Minnesota’s uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit.

As of Sept. 30, 2023, NSP-Minnesota had $56 million of outstanding letters of credit under the $75 million bilateral credit agreement.

Long-Term Borrowings and Other Financing Instruments

During the nine months ended Sept. 30, 2023, Xcel Energy Inc. and its utility subsidiaries issued the following:

•Xcel Energy Inc. issued $800 million of 5.45% Senior Notes due August 15, 2033.

•PSCo issued $850 million of 5.25% first mortgage bonds due April 1, 2053.

•NSP-Minnesota issued $800 million of 5.10% first mortgage bonds due May 15, 2053.

•NSP-Wisconsin issued $125 million of 5.30% first mortgage bonds due June 15, 2053.

•SPS issued $100 million of 6.00% first mortgage bonds due September 15, 2053.

ATM Equity Offering — In November 2021, Xcel Energy Inc. filed a prospectus supplement under which it may sell up to $800 million of its common stock through an ATM program. In 2021, 5.33 million shares were issued (approximately $350 million in net proceeds and $3 million in transaction fees paid). In 2022, 4.30 million shares of common stock were issued (approximately $300 million in net proceeds and $3 million in transaction fees paid). In the nine months ended Sept. 30, 2023, 0.9 million shares were issued (approximately $62 million in net proceeds and $1 million in transaction fees paid). No shares were issued under the ATM program during the quarter ended Sept. 30, 2023. As of Sept. 30, 2023, approximately $88 million remained available for sale under the ATM program. Xcel Energy Inc. plans to file a new ATM program in 2023.

Equity through DRIP and Benefits Program — Xcel Energy issued $78 million and $59 million of equity through the DRIP and benefits programs during the nine months ended Sept. 30, 2023 and 2022, respectively. The programs allow shareholders to reinvest their dividends directly in Xcel Energy Inc. common stock.