11. Fair Value of Financial Assets and Liabilities

Fair Value Measurements

The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchal framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices.

Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with discounted cash flow or option pricing models using highly observable inputs.

Level 3 - Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation.

Specific valuation methods include the following:

Cash equivalents - The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset values.

Investments in equity securities and other funds - Equity securities are valued using quoted prices in active markets. The fair values for commingled funds, international equity funds, private equity investments and real estate investments are measured using net asset values, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. The investments in commingled funds and international equity funds may be redeemed for net asset value. Private equity investments require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate investments may be redeemed with proper notice; however, withdrawals from real estate investments may be delayed or discounted as a result of fund illiquidity. Given the limited observability of inputs to the valuation of the underlying fund investments of the private equity and real estate investments, fair value measurements for private equity and real estate investments have been assigned a Level 3.

Investments in debt securities- Debt securities are primarily priced using recent trades and observable spreads from benchmark interest rates for similar securities, except for asset-backed and mortgage-backed securities, which also require significant, subjective risk-based adjustments to the interest rate used to discount expected future cash flows, which include estimated principal prepayments. Therefore, fair value measurements for asset-backed and mortgage-backed securities have been assigned a Level 3.

Interest rate derivatives- The fair values of interest rate derivatives are based on broker quotes utilizing current market interest rate forecasts.

Commodity derivatives- The methods utilized to measure the fair value of commodity derivatives include the use of forward prices and volatilities to value commodity forwards and options. Levels are assigned to these fair value measurements based on the significance of the use of subjective forward price and volatility forecasts for commodities and delivery locations with limited observability, or the significance of contractual settlements that extend to periods beyond those readily observable on active exchanges or quoted by brokers. Electric commodity derivatives include FTRs, for which fair value is determined using complex predictive models and inputs including forward commodity prices as well as subjective forecasts of retail and wholesale demand, generation and resulting transmission system congestion. Given the limited observability of management's forecasts for several of these inputs, fair value measurements for FTRs have been assigned a Level 3.

Xcel Energy continuously monitors the creditworthiness of the counterparties to its commodity derivative contracts and assesses each counterparty's ability to perform on the transactions set forth in the contracts. Given this assessment, as well as an assessment of the impact of Xcel Energy's own credit risk when determining the fair value of commodity derivative liabilities, the impact of considering credit risk was immaterial to the fair value of commodity derivative assets and liabilities presented in the consolidated balance sheets.

Non-Derivative Instruments Fair Value Measurements

The NRC requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Together with all accumulated earnings or losses, the assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning the Monticello and Prairie Island nuclear generating plants. The fund contains cash equivalents, debt securities, equity securities and other investments – all classified as available-for-sale. NSP-Minnesota plans to reinvest matured securities until decommissioning begins.

NSP-Minnesota recognizes the costs of funding the decommissioning of its nuclear generating plants over the lives of the plants, assuming rate recovery of all costs. Given the purpose and legal restrictions on the use of nuclear decommissioning fund assets, realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota's regulatory asset for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund, including any other-than-temporary impairments, are deferred as a component of the regulatory asset for nuclear decommissioning.

Unrealized gains for the decommissioning fund were $79.8 million and $82.5 million at Dec. 31, 2011 and Dec. 31, 2010, respectively, and unrealized losses and amounts recorded as other-than-temporary impairments were $87.5 million and $65.2 million at Dec. 31, 2011 and Dec. 31, 2010, respectively.

The following tables present the cost and fair value of Xcel Energy's non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund at Dec. 31, 2011 and 2010:

	Dec. 31, 2011
			Fair Value

(Thousands of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	26,123	$	7,103	$	19,020	$	-	$	26,123
Commingled funds		320,798		-		311,105		-		311,105
International equity funds		63,781		-		58,508		-		58,508
Private equity investments		9,203		-		-		9,203		9,203
Real estate		24,768		-		-		26,395		26,395
Debt securities:
Government securities		116,490		-		117,256		-		117,256
U.S. corporate bonds		187,083		-		193,516		-		193,516
International corporate bonds		35,198		-		35,804		-		35,804
Municipal bonds		60,469		-		64,731		-		64,731
Asset-backed securities		16,516		-		-		16,501		16,501
Mortgage-backed securities		75,627		-		-		78,664		78,664
Equity securities:
Common stock		408,122		398,625		-		-		398,625
Total	$	1,344,178	$	405,728	$	799,940	$	130,763	$	1,336,431

(a)	Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $92.7 million of equity investments in unconsolidated subsidiaries and $34.3 million of miscellaneous investments.

	Dec. 31, 2010
			Fair Value

(Thousands of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	83,837	$	76,281	$	7,556	$	-	$	83,837
Commingled funds		131,000		-		133,080		-		133,080
International equity funds		54,561		-		58,584		-		58,584
Debt securities:
Government securities		146,473		-		146,654		-		146,654
U.S. corporate bonds		279,028		-		288,304		-		288,304
International corporate bonds		1,233		-		1,581		-		1,581
Municipal bonds		100,277		-		97,557		-		97,557
Asset-backed securities		32,558		-		-		33,174		33,174
Mortgage-backed securities		68,072		-		-		72,589		72,589
Equity securities:
Common stock		436,334		435,270		-		-		435,270
Total	$	1,333,373	$	511,551	$	733,316	$	105,763	$	1,350,630

(a)	Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $97.6 million of equity investments in unconsolidated subsidiaries and $28.2 million of miscellaneous investments.

The following tables present the changes in Level 3 nuclear decommissioning fund investments:

(Thousands of Dollars)	Jan. 1, 2011		Purchases		Settlements			Gains (Losses) Recognized as Regulatory Assets and Liabilities			Dec. 31, 2011
Asset-backed securities	$	33,174	$	16,518	$	(32,560	)	$	(631	)	$	16,501
Mortgage-backed securities		72,589		168,688		(161,134	)		(1,479	)		78,664
Real estate		-		24,768		-			1,627			26,395
Private equity investments		-		9,203		-			-			9,203
Total	$	105,763	$	219,177		(193,694	)	$	(483	)	$	130,763

(Thousands of Dollars)	Jan. 1, 2010		Purchases		Settlements			GainsRecognized as Regulatory Assets and Liabilities		Dec. 31, 2010
Asset-backed securities	$	11,918	$	38,871	$	(17,878	)	$	263	$	33,174
Mortgage-backed securities		81,189		63,497		(75,701	)		3,604		72,589
Total	$	93,107	$	102,368		(93,579	)	$	3,867	$	105,763

(Thousands of Dollars)	Jan. 1, 2009		Purchases		Settlements			GainsRecognized as Regulatory Assets and Liabilities		Dec. 31, 2009
Asset-backed securities	$	10,962	$	7,271	$	(7,755	)	$	1,440	$	11,918
Mortgage-backed securities		98,461		17,943		(45,815	)		10,600		81,189
Total	$	109,423	$	25,214		(53,570	)	$	12,040	$	93,107

The following table summarizes the final contractual maturity dates of the debt securities in the nuclear decommissioning fund, by asset class, at Dec. 31, 2011:

	Final Contractual Maturity
(Thousands 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
Government securities	$	113,179	$	-	$	4,077	$	-	$	117,256
U.S. corporate bonds		304		35,437		139,880		17,895		193,516
International corporate bonds		-		8,454		23,501		3,849		35,804
Municipal bonds		-		-		40,585		24,146		64,731
Asset-backed securities		-		9,907		6,594		-		16,501
Mortgage-backed securities		-		1,731		1,041		75,892		78,664
Debt securities	$	113,483	$	55,529	$	215,678	$	121,782	$	506,472

Derivative Instruments Fair Value Measurements

Xcel Energy enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to reduce risk in connection with changes in interest rates, utility commodity prices and vehicle fuel prices, as well as variances in forecasted weather.

Interest Rate Derivatives - Xcel Energy enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes.

At Dec. 31, 2011, accumulated OCI related to interest rate derivatives included $0.9 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings.

At Dec. 31, 2011, Xcel Energy had unsettled interest rate swaps outstanding with a notional amount of $475 million. These interest rate swaps were designated as hedges, and as such, changes in fair value are recorded to OCI. In addition, Xcel Energy entered into interest rate swaps with a notional amount of $175 million during the year which were settled in conjunction with the Xcel Energy Inc. debt issuance in September 2011. See Note 4 to for further discussions of long-term borrowings.

Short-Term Wholesale and Commodity Trading Risk - Xcel Energy conducts various short-term wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy and energy-related instruments. Xcel Energy's risk management policy allows management to conduct these activities within guidelines and limitations as approved by its risk management committee, which is made up of management personnel not directly involved in the activities governed by this policy.

Commodity Derivatives - Xcel Energy enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, gas for resale and vehicle fuel.

At Dec. 31, 2011, Xcel Energy had various vehicle fuel related contracts designated as cash flow hedges extending through December 2014. Xcel Energy also enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers but are not designated as qualifying hedging transactions. Changes in the fair value of non-trading commodity derivative instruments are recorded in OCI or deferred as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Xcel Energy recorded immaterial amounts to income related to the ineffectiveness of cash flow hedges for the years ended Dec. 31, 2011 and 2010.

At Dec. 31, 2011, accumulated OCI related to commodity derivative cash flow hedges included $0.2 million of net gains expected to be reclassified into earnings during the next 12 months as the hedged transactions occur.

Additionally, Xcel Energy enters into commodity derivative instruments for trading purposes not directly related to commodity price risks associated with serving its electric and natural gas customers. Changes in the fair value of these commodity derivatives are recorded in electric operating revenues, net of amounts credited to customers under margin-sharing mechanisms.

The following table details the gross notional amounts of commodity forwards, options and FTRs at Dec. 31, 2011 and Dec. 31, 2010:

(Amounts in Thousands) (a)(b)	Dec. 31, 2011		Dec. 31, 2010
MWh of electricity		38,822		46,794
MMBtu of natural gas		40,736		75,806
Gallons of vehicle fuel		600		800

(a)	Amounts are not reflective of net positions in the underlying commodities.

(b)	Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.

Financial Impact of Qualifying Cash Flow Hedges - The impact of qualifying interest rate and vehicle fuel cash flow hedges on Xcel Energy's accumulated OCI, included in the consolidated statements of common stockholders' equity and comprehensive income, is detailed in the following table:

(Thousands of Dollars)	2011			2010			2009
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1	$	(8,094	)	$	(6,435	)	$	(13,113	)
After-tax net unrealized losses related to derivatives accounted for as hedges		(38,292	)		(4,289	)		(710	)
After-tax net realized losses on derivative transactions reclassified into earnings		648			2,630			7,388
Accumulated other comprehensive loss related to cash flow hedges at Dec. 31	$	(45,738	)	$	(8,094	)	$	(6,435	)

Xcel Energy had no derivative instruments designated as fair value hedges during the years ended Dec. 31, 2011 and Dec. 31, 2010.

The following tables detail the impact of derivative activity during the years ended Dec. 31, 2011 and Dec. 31, 2010, on OCI, regulatory assets and liabilities, and income:

	Dec. 31, 2011

	Fair Value						Pre-Tax Amounts
	Changes Recognized						Reclassified into Income								Pre-Tax Gains (Losses)
	During the Period in:						During the Period from:
	Accumulated						Accumulated
	Other			Regulatory			Other				Regulatory				Recognized
	Comprehensive			(Assets) and			Comprehensive				Assets and				During the Period
(Thousands of Dollars)	Loss			Liabilities			Loss				(Liabilities)				in Income
Derivatives designated as cash flow hedges
Interest rate	$	(63,573	)	$	-		$	1,424		(a)	$	-			$	-
Vehicle fuel and other commodity		195			-			(178	)	(e)		-				-
Total	$	(63,378	)	$	-		$	1,246			$	-			$	-

Other derivative instruments
Trading commodity	$	-		$	-		$	-			$	-			$	6,418		(b)
Electric commodity		-			49,818			-				(40,492	)	(c)		-
Natural gas commodity		-			(111,574	)		-				91,743		(d)		(382	)	(b)
Total	$	-		$	(61,756	)	$	-			$	51,251			$	6,036

	Dec. 31, 2010
	Fair Value						Pre-Tax Amounts
	Changes Recognized						Reclassified into Income
	During the Period in:						During the Period from:							Pre-Tax Gains
	Accumulated						Accumulated							Pre-Tax Gains
	Other			Regulatory			Other			Regulatory				Recognized
	Comprehensive			(Assets) and			Comprehensive			Assets and				During the Period
(Thousands of Dollars)	Loss			Liabilities			Loss			(Liabilities)				in Income
Derivatives designated as cash flow hedges
Interest rate	$	(7,210	)	$	-		$	1,107	(a)	$	-			$	-
Vehicle fuel and other commodity		(238	)		-			3,474	(e)		-				-
Total	$	(7,448	)	$	-		$	4,581		$	-			$	-

Other derivative instruments
Trading commodity	$	-		$	-		$	-		$	-			$	11,004	(b)
Electric commodity		-			3,969			-			(21,840	)	(c)		-
Natural gas commodity		-			(105,396	)		-			51,034		(d)		-
Other		-			-			-			-				135	(b)
Total	$	-		$	(101,427	)	$	-		$	29,194			$	11,139

(a)	Recorded to interest charges.

(b)	Recorded to electric operating revenues. Portions of these total 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)	Recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate.

(e)	Recorded to O&M expenses.

Credit Related Contingent Features- Contract provisions of the derivative instruments that the utility subsidiaries enter into may require the posting of collateral or settlement of the contracts for various reasons, including if the applicable utility subsidiary is unable to maintain its credit ratings. If the credit ratings of Xcel Energy Inc.'s subsidiaries were downgraded below investment grade, contracts underlying $8.3 million and $5.6 million of derivative instruments in a gross liability position at Dec. 31, 2011 and Dec. 31, 2010, respectively, would have required Xcel Energy Inc.'s subsidiaries to post collateral or settle applicable contracts, which would have resulted in payments to counterparties of $9.3 million and $9.8 million, respectively. At Dec. 31, 2011 and Dec. 31, 2010, there was no collateral posted on these specific contracts.

Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that a given utility subsidiary's ability to fulfill its contractual obligations is reasonably expected to be impaired. Xcel Energy had no collateral posted related to adequate assurance clauses in derivative contracts as of Dec. 31, 2011 and Dec. 31, 2010.

Recurring Fair Value Measurements - The following table presents for each of the hierarchy levels, Xcel Energy's derivative assets and liabilities that are measured at fair value on a recurring basis at Dec. 31, 2011:

	Dec. 31, 2011
	Fair Value
							Fair Value		Counterparty
(Thousands of Dollars)	Level 1		Level 2		Level 3		Total		Netting (b)			Total
Current derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity	$	-	$	169	$	-	$	169	$	(76	)	$	93
Other derivative instruments:
Trading commodity		-		32,682		-		32,682		(13,391	)		19,291
Electric commodity		-		-		13,333		13,333		(1,471	)		11,862
Total current derivative assets	$	-	$	32,851	$	13,333	$	46,184	$	(14,938	)		31,246
Purchased power agreements (a)													33,094
Current derivative instruments												$	64,340
Noncurrent derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity	$	-	$	107	$	-	$	107	$	(59	)	$	48
Other derivative instruments:
Trading commodity		-		36,599		-		36,599		(5,540	)		31,059
Total noncurrent derivative assets	$	-	$	36,706	$	-	$	36,706	$	(5,599	)		31,107
Purchased power agreements (a)													121,780
Noncurrent derivative instruments												$	152,887

	Dec. 31, 2011
	Fair Value
							Fair Value		Counterparty
(Thousands of Dollars)	Level 1		Level 2		Level 3		Total		Netting (b)			Total
Current derivative liabilities
Derivatives designated as cash flow hedges:
Interest rate	$	-	$	57,749	$	-	$	57,749	$	-		$	57,749
Other derivative instruments:
Trading commodity		-		27,891		-		27,891		(14,417	)		13,474
Electric commodity		-		698		916		1,614		(1,471	)		143
Natural gas commodity		418		70,119		-		70,537		(7,486	)		63,051
Total current derivative liabilities	$	418	$	156,457	$	916	$	157,791	$	(23,374	)		134,417
Purchased power agreements (a)													22,997
Current derivative instruments												$	157,414
Noncurrent derivative liabilities
Other derivative instruments:
Trading commodity	$	-	$	20,966	$	-	$	20,966	$	(5,599	)	$	15,367
Total noncurrent derivative liabilities	$	-	$	20,966	$	-	$	20,966	$	(5,599	)		15,367
Purchased power agreements (a)													248,539
Noncurrent derivative instruments												$	263,906

(a)

In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, Xcel Energy began recording several long-term purchased power agreements at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

(b)

The accounting guidance for derivatives and hedging permits the netting of receivables and payables for derivatives and related collateral amounts when a legally enforceable master netting agreement exists between Xcel Energy and a counterparty. A master netting agreement is an agreement between two parties who have multiple contracts with each other that provides for the net settlement of all contracts in the event of default on or termination of any one contract.

The following table presents for each of the hierarchy levels, Xcel Energy's derivative assets and liabilities that are measured at fair value on a recurring basis at Dec. 31, 2010:

	Dec. 31, 2010
	Fair Value
							Fair Value		Counterparty
(Thousands of Dollars)	Level 1		Level 2		Level 3		Total		Netting (b)			Total
Current derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity	$	-	$	126	$	-	$	126	$	-		$	126
Other derivative instruments:
Trading commodity		487		37,019		-		37,506		(21,352	)		16,154
Electric commodity		-		-		3,619		3,619		(1,226	)		2,393
Natural gas commodity		-		1,595		-		1,595		(1,219	)		376
Total current derivative assets	$	487	$	38,740	$	3,619	$	42,846	$	(23,797	)		19,049
Purchased power agreements (a)													35,030
Current derivative instruments												$	54,079
Noncurrent derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity	$	-	$	150	$	-	$	150	$	-		$	150
Other derivative instruments:
Trading commodity		-		32,621		-		32,621		(4,595	)		28,026
Natural gas commodity		-		1,246		-		1,246		(269	)		977
Total noncurrent derivative assets	$	-	$	34,017	$	-	$	34,017	$	(4,864	)		29,153
Purchased power agreements (a)													154,873
Noncurrent derivative instruments												$	184,026

	Dec. 31, 2010
	Fair Value
							Fair Value		Counterparty
(Thousands of Dollars)	Level 1		Level 2		Level 3		Total		Netting (b)			Total
Current derivative liabilities
Other derivative instruments:
Trading commodity	$	392	$	30,608	$	-	$	31,000	$	(24,007	)	$	6,993
Electric commodity		-		-		1,227		1,227		(1,227	)		-
Natural gas commodity		20		52,709		-		52,729		(21,169	)		31,560
Total current derivative liabilities	$	412	$	83,317	$	1,227	$	84,956	$	(46,403	)		38,553
Purchased power agreements (a)													23,192
Current derivative instruments												$	61,745
Noncurrent derivative liabilities
Other derivative instruments:
Trading commodity	$	-	$	18,878	$	-	$	18,878	$	(4,596	)	$	14,282
Natural gas commodity		-		438		-		438		(269	)		169
Total noncurrent derivative liabilities	$	-	$	19,316	$	-	$	19,316	$	(4,865	)		14,451
Purchased power agreements (a)													271,535
Noncurrent derivative instruments												$	285,986

(a)

(b)

The following table presents the changes in Level 3 commodity derivatives for the years ended Dec. 31, 2011, 2010 and 2009:

	Year Ended Dec. 31
(Thousands of Dollars)	2011			2010			2009
Balance at Jan. 1	$	2,392		$	28,042		$	23,221
Purchases		33,609			10,813			9,077
Settlements		(36,555	)		(25,261	)		(18,316	)
Transfers (out of) into Level 3		-			(13,525	)		1,280
Net transactions recorded during the period:
Gains recognized in earnings (a)		69			6,237			8,228
Gains (losses) recognized as regulatory assets and liabilities		12,902			(3,914	)		4,552
Balance at Dec. 31	$	12,417		$	2,392		$	28,042

(a)	These unrealized amounts relate to commodity derivatives held at the end of the period.

Xcel Energy recognizes transfers between levels as of the beginning of each period. There were no transfers of amounts between levels for the year ended Dec. 31, 2011. The following table presents the transfers that occurred from Level 3 to Level 2 during the year ended Dec. 31, 2010.

	Year Ended
(Thousands of Dollars)	Dec. 31, 2010
Trading commodity derivatives not designated as cash flow hedges:
Current assets	$	7,271
Noncurrent assets		26,438
Current liabilities		(4,115	)
Noncurrent liabilities		(16,069	)
Total	$	13,525

There were no transfers of amounts from Level 2 to Level 3, or any transfers to or from Level 1 for the year ended Dec. 31, 2010. The transfer of amounts from Level 3 to Level 2 in the year ended Dec. 31, 2010 was due to the valuation of certain long-term derivative contracts for which observable commodity pricing forecasts became a more significant input during the period.

Fair Value of Long-Term Debt

As of Dec. 31, 2011 and 2010, other financial instruments for which the carrying amount did not equal fair value were as follows:

	2011				2010
(Thousands of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	9,908,435	$	11,734,798	$	9,318,559	$	10,224,845

The fair value of Xcel Energy's long-term debt is estimated based on the quoted market prices for the same or similar issues, or the current rates for debt of the same remaining maturities and credit quality. The fair value estimates presented are based on information available to management as of Dec. 31, 2011 and 2010. These fair value estimates have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair values may differ significantly.