XML 38 R28.htm IDEA: XBRL DOCUMENT v3.23.3
Fair Value of Financial Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Cost and Fair Value of Nuclear Decommissioning Fund Investments
Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:
Sept. 30, 2023
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Cash equivalents$27 $27 $— $— $— $27 
Commingled funds731 — — — 1,059 1,059 
Debt securities782 — 719 7 — 726 
Equity securities509 1,200 2 — — 1,202 
Total$2,049 $1,227 $721 $7 $1,059 $3,014 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $244 million of equity method investments and $135 million of rabbi trust assets and other miscellaneous investments.
Dec. 31, 2022
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Cash equivalents$29 $29 $— $— $— $29 
Commingled funds803 — — — 1,178 1,178 
Debt securities738 — 669 6 — 675 
Equity securities406 999 1 — — 1,000 
Total$1,976 $1,028 $670 $6 $1,178 $2,882 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $219 million of equity investments in unconsolidated subsidiaries and $133 million of rabbi trust assets and other 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 Sept. 30, 2023:
Final Contractual Maturity
(Millions of Dollars)Due in 1 Year or LessDue in 1 to 5 YearsDue in 5 to 10 YearsDue after 10 YearsTotal
Debt securities$10 $236 $257 $223 $726 
Gross Notional Amounts of Commodity Forwards, Options, and FTRs
Gross notional amounts of commodity forwards, options and FTRs:
(Amounts in Millions) (a)(b)
Sept. 30, 2023Dec. 31, 2022
Megawatt hours of electricity68 61 
Million British thermal units of natural gas105 131 
(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
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory Assets and Liabilities
Three Months Ended Sept. 30, 2023
Derivatives designated as cash flow hedges:
Interest rate$4 $— 
Total$4 $— 
Other derivative instruments:
Electric commodity$— $(23)
Natural gas commodity— (5)
Total$— $(28)
Nine Months Ended Sept. 30, 2023
Derivatives designated as cash flow hedges:
Interest rate$15 $— 
Total$15 $— 
Other derivative instruments:
Electric commodity$— $(134)
Natural gas commodity— (1)
Total$— $(135)
Three Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges:
Other derivative instruments:
Electric commodity$— $6 
Natural gas commodity— (6)
Total$— $— 
Nine Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges:
Interest rate$21 $— 
Total$21 $— 
Other derivative instruments:
Electric commodity$— $106 
Natural gas commodity— (3)
Total$— $103 
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 LossRegulatory Assets and Liabilities
Three Months Ended Sept. 30, 2023
Derivatives designated as cash flow hedges:
Interest rate$1 
(a)
$— $— 
Total$1 $— $— 
Other derivative instruments:
Electric commodity— 15 
(b)
— 
Total$— $15 $— 
Nine Months Ended Sept. 30, 2023
Derivatives designated as cash flow hedges:
Interest rate$4 
(a)
$— $— 
Total$4 $— $— 
Other derivative instruments:
Commodity trading$— $— $(6)
(c)
Electric commodity— 109 
(b)
— 
Natural gas commodity— 11 
(d)
(19)
(d)(e)
Total$— $120 $(25)
Three Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges:
Interest rate$1 
(a)
$— $— 
Total$1 $— $— 
Other derivative instruments:
Commodity trading$— $— $13 
(c)
Electric commodity— 6 
(b)
— 
Total$— $6 $13 
Nine Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges:
Interest rate$5 
(a)
$— $— 
Total$5 $— $— 
Other derivative instruments:
Commodity trading$— $— $21 
(c)
Electric commodity— (31)
(b)
— 
Natural gas commodity— 4 
(d)
(17)
(d)(e)
Total$— $(27)$4 
(a)Recorded to interest charges.
(b)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. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value.
(c)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.
(d)Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.
(e)Relates primarily to option premium amortization.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
Sept. 30, 2023Dec. 31, 2022
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative assets
Other derivative instruments:
Commodity trading$8 $80 $39 $127 $(86)$41 $32 $259 $33 $324 $(242)$82 
Electric commodity— — 99 99 (4)95 — — 177 177 (2)175 
Natural gas commodity— 7 — 7 — 7 — 19 — 19 — 19 
Total current derivative assets$8 $87 $138 $233 $(90)143 $32 $278 $210 $520 $(244)276 
PPAs (b)
3 3 
Current derivative instruments$146 $279 
Noncurrent derivative assets
Other derivative instruments:
Commodity trading$18 $36 $57 $111 $(40)$71 $34 $71 $74 $179 $(89)$90 
Total noncurrent derivative assets$18 $36 $57 $111 $(40)71 $34 $71 $74 $179 $(89)90 
PPAs (b)
1 3 
Noncurrent derivative instruments$72 $93 
Sept. 30, 2023Dec. 31, 2022
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative liabilities
Derivatives designated as cash flow hedges:
Interest rate$— $— $— $— $— $— $— $1 $— $1 $— $1 
Other derivative instruments:
Commodity trading$8 $117 $7 $132 $(90)$42 $29 $297 $6 $332 $(287)$45 
Electric commodity— — 4 4 (4)— — — 2 2 (2)— 
Natural gas commodity— — — — — — — 13 — 13 — 13 
Total current derivative liabilities$8 $117 $11 $136 $(94)42 $29 $311 $8 $348 $(289)59 
PPAs (b)
17 17 
Current derivative instruments$59 $76 
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading$22 $41 $42 $105 $(46)$59 $43 $97 $41 $181 $(98)$83 
Total noncurrent derivative liabilities$22 $41 $42 $105 $(46)59 $43 $97 $41 $181 $(98)83 
PPAs (b)
24 30 
Noncurrent derivative instruments$83 $113 
(a)Xcel Energy nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At Sept. 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral. At Sept. 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include rights to reclaim cash collateral of $12 million and $53 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)Xcel Energy currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are 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 Sept. 30
(Millions of Dollars)20232022
Balance at July 1$209 $485 
Purchases (a)
1 4 
Settlements (a)
(50)(106)
Net transactions recorded during the period:
Gains recognized in earnings (b)
18 16 
Net (losses) gains recognized as regulatory assets and liabilities (a)
(36)3 
Balance at Sept. 30$142 $402 
Nine Months Ended Sept. 30
(Millions of Dollars)20232022
Balance at Jan. 1$236 $19 
Purchases (a)
173 398 
Settlements (a)
(126)(286)
Net transactions recorded during the period:
Gains recognized in earnings (b)
16 136 
Net (losses) gains recognized as regulatory assets and liabilities (a)
(157)135 
Balance at Sept. 30$142 $402 
(a)Relates primarily to NSP-Minnesota and SPS FTR instruments administered by MISO and SPP.
(b)Relates to commodity trading and is subject to substantial offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.
Carrying Amount and Fair Value of Long-term Debt
Sept. 30, 2023Dec. 31, 2022
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$25,961 $21,484 $23,964 $20,897