Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value of Financial Assets and Liabilities [Abstract]

Cost and Fair Value of Nuclear Decommissioning Fund Investments

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 March 31, 2012 and Dec. 31, 2011:

	March 31, 2012
			Fair Value

(Thousands of Dollars)	Cost		Level 1		Level 2		Level 3		Total
Nuclear decommissioning fund (a)
Cash equivalents	$	12,383	$	8,023	$	4,360	$	-	$	12,383
Commingled funds		374,523		-		371,078		-		371,078
International equity funds		65,712		-		67,183		-		67,183
Private equity investments		19,358		-		-		20,068		20,068
Real estate		26,265		-		-		27,905		27,905
Debt securities:
Government securities		131,152		-		131,401		-		131,401
U.S. corporate bonds		156,602		-		163,851		-		163,851
International corporate bonds		25,187		-		26,351		-		26,351
Municipal bonds		53,895		-		56,862		-		56,862
Asset-backed securities		16,515		-		-		16,547		16,547
Mortgage-backed securities		65,803		-		-		68,671		68,671
Equity securities:
Common stock		410,729		447,205		-		-		447,205
Total	$	1,358,124	$	455,228	$	821,086	$	133,191	$	1,409,505

(a)	Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $92.3 million of equity investments in unconsolidated subsidiaries and $35.7 million of miscellaneous investments.

	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.

Changes in Level 3 Nuclear Decommissioning Fund Assets

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

(Thousands of Dollars)		Jan. 1, 2012		Purchases		Settlements			Gains (Losses) Recognized as Regulatory Assets and Liabilities			March 31, 2012
Asset-backed securities	$	16,501	$	-	$	(1	)	$	47		$	16,547
Mortgage-backed securities		78,664		6,904		(16,728	)		(169	)		68,671
Real estate		26,395		1,636		(1,766	)		1,640			27,905
Private equity investments		9,203		10,155		-			710			20,068
Total	$	130,763	$	18,695	$	(18,495	)	$	2,228		$	133,191

(Thousands of Dollars)		Jan. 1, 2011		Purchases		Settlements			Losses Recognized as Regulatory Assets			March 31, 2011
Asset-backed securities	$	33,174	$	756	$	(7,910	)	$	-		$	26,020
Mortgage-backed securities		72,589		46,113		(19,873	)		(462	)		98,367
Total	$	105,763	$	46,869	$	(27,783	)	$	(462	)	$	124,387

Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class

The following table summarizes the final contractual maturity dates of the debt securities in the nuclear decommissioning fund, by asset class at March 31, 2012:

	Final Contractual Maturity
	Due in 1 Year or Less		Due in 1 to 5 Years		Due in 5 to 10 Years		Due after 10 Years
(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	$	113,004	$	701	$	17,696	$	-	$	131,401
U.S. corporate bonds		-		37,556		112,103		14,192		163,851
International corporate bonds		-		8,162		18,186		3		26,351
Municipal bonds		-		-		27,039		29,823		56,862
Asset-backed securities		-		13,269		3,278		-		16,547
Mortgage-backed securities		-		-		959		67,712		68,671
Debt securities	$	113,004	$	59,688	$	179,261	$	111,730	$	463,683

Gross Notional Amounts of Commodity Forwards, Options, and FTRs

The following table details the gross notional amounts of commodity forwards, options and FTRs at March 31, 2012 and Dec. 31, 2011:

(Amounts in Thousands) (a)(b)	March 31, 2012		Dec. 31, 2011
Megawatt hours (MWh) of electricity		23,385	38,822
MMBtu of natural gas		-	40,736
Gallons of vehicle fuel		550	600

(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.

Impact of Derivative Activity on OCI, Regulatory Assets and Liabilities, and Income

The following tables detail the impact of derivative activity during the three months ended March 31, 2012 and 2011, on OCI, regulatory assets and liabilities, and income:

	Three Months Ended March 31, 2012
	Fair Value Changes Recognized					Pre-Tax Amounts Reclassified into
	During the Period in:					Income During the Period from:
	Accumulated Other		Regulatory			Accumulated Other				Regulatory				Pre-Tax Gains (Losses) 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	$	41,704	$	-		$	389		(a)	$	-			$	-
Vehicle fuel and other commodity		179		-			(52	)	(e)		-				-
Total	$	41,883	$	-		$	337			$	-			$	-

Other derivative instruments
Trading commodity	$	-	$	-		$	-			$	-			$	1,723		(b)
Electric commodity		-		1,582			-				(7,972	)	(c)		-
Natural gas commodity		-		(10,783	)		-				80,939		(d)		(109	)	(b)
Total	$	-	$	(9,201	)	$	-			$	72,967			$	1,614

	Three Months Ended March 31, 2011
	Fair Value Changes Recognized					Pre-Tax Amounts Reclassified into
	During the Period in:					Income During the Period from:
	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	$	-	$	-		$	337		(a)	$	-			$	-
Vehicle fuel and other commodity		389		-			(32	)	(e)		-				-
Total	$	389	$	-		$	305			$	-			$	-

Other derivative instruments
Trading commodity	$	-	$	-		$	-			$	-			$	5,600	(b)
Electric commodity		-		8,846			-				(8,888	)	(c)		-
Natural gas commodity		-		(7,615	)		-				57,387		(d)		-
Total	$	-	$	1,231		$	-			$	48,499			$	5,600

(a)	Recorded to interest charges.

(b)	Recorded to electric operating revenues. Portions of these 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.

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level

Recurring Fair Value Measurements - The following tables present for each of the hierarchy levels, Xcel Energy's derivative assets and liabilities that are measured at fair value on a recurring basis at March 31, 2012:

	March 31, 2012
	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:
Interest rate	$	-	$	306	$	-	$	306	$	-		$	306
Vehicle fuel and other commodity		-		208		-		208		-			208
Other derivative instruments:
Trading commodity		-		39,483		-		39,483		(16,195	)		23,288
Electric commodity		-		-		5,898		5,898		(570	)		5,328
Total current derivative assets	$	-	$	39,997	$	5,898	$	45,895	$	(16,765	)		29,130
Purchased power agreements (a)													32,841
Current derivative instruments												$	61,971
Noncurrent derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity	$	-	$	209	$	-	$	209	$	(115	)	$	94
Other derivative instruments:
Trading commodity		-		38,214		-		38,214		(5,470	)		32,744
Total noncurrent derivative assets	$	-	$	38,423	$	-	$	38,423	$	(5,585	)		32,838
Purchased power agreements (a)													113,600
Noncurrent derivative instruments												$	146,438

	March 31, 2012
	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	$	-	$	16,352	$	-	$	16,352	$	-		$	16,352
Other derivative instruments:
Trading commodity		-		34,130		4		34,134		(17,272	)		16,862
Electric commodity		-		-		570		570		(570	)		-
Total current derivative liabilities	$	-	$	50,482	$	574	$	51,056	$	(17,842	)		33,214
Purchased power agreements (a)													22,918
Current derivative instruments												$	56,132
Noncurrent derivative liabilities
Other derivative instruments:
Trading commodity	$	-	$	22,918	$	-	$	22,918	$	(5,585	)	$	17,333
Total noncurrent derivative liabilities	$	-	$	22,918	$	-	$	22,918	$	(5,585	)		17,333
Purchased power agreements (a)													242,819
Noncurrent derivative instruments												$	260,152

(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 tables present 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)

(b)

Changes in Recurring Fair Value Measurements of Derivative Assets and Liabilities Unobservable Input Reconciliation

The following table presents the changes in Level 3 commodity derivatives for the three months ended March 31, 2012 and 2011:

	Three Months Ended March 31
(Thousands of Dollars)	2012			2011
Balance at Jan. 1	$	12,417		$	2,392
Settlements		(8,884	)		(7,790	)
Net transactions recorded during the period:
(Losses) gains recognized in earnings (a)		(9	)		68
Gains recognized as regulatory liabilities		1,800			7,662
Balance at March 31	$	5,324		$	2,332

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

Carrying Amount and Fair Value of Long-term Debt

As of March 31, 2012 and Dec. 31, 2011, other financial instruments for which the carrying amount did not equal fair value were as follows:

	March 31, 2012				Dec. 31, 2011
	Carrying				Carrying
(Thousands of Dollars)	Amount		Fair Value		Amount		Fair Value
Long-term debt, including current portion	$	9,908,044	$	11,414,894	$	9,908,435	$	11,734,798

- Definition

This element represents the disclosure related to assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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