UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended Sept.June 30, 20222023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number: 001-31387
Northern States Power Company
(Exact Name of Registrant as Specified in its Charter)
Minnesota41-1967505
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
414 Nicollet MallMinneapolisMinnesota55401
(Address of Principal Executive Offices)(Zip Code)
(612)330-5500
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
N/AN/AN/A
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class Outstanding at Oct.July 27, 20222023
Common Stock, $0.01 par value 1,000,000 shares
Northern States Power Company meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to such Form 10-Q.



TABLE OF CONTENTS
PART IFINANCIAL INFORMATION
Item 1 —
Item 2 —
Item 4 —
PART IIOTHER INFORMATION
Item 1 —
Item 1A —
Item 5 —
Item 6 —
This Form 10-Q is filed by NSP-Minnesota. NSP-Minnesota is a wholly owned subsidiary of Xcel Energy Inc. Additional information on Xcel Energy is available in various filings with the SEC. This report should be read in its entirety.



Definitions of Abbreviations
Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)
NSP-MinnesotaNorthern States Power Company, a Minnesota corporation
NSP SystemThe electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota
NSP-WisconsinNorthern States Power Company, a Wisconsin corporation
PSCoPublic Service Company of Colorado
SPSSouthwestern Public Service Company
Utility subsidiariesNSP-Minnesota, NSP-Wisconsin, PSCo and SPS
Xcel EnergyXcel Energy Inc. and its subsidiaries
Federal and State Regulatory Agencies
D.C. CircuitUnited States Court of Appeals for the District of Columbia Circuit
DOCMinnesota Department of Commerce
EPAUnited States Environmental Protection Agency
FERCFederal Energy Regulatory Commission
MPUCMinnesota Public Utilities Commission
NDPSCNorth Dakota Public Service Commission
OAGMinnesota Office of Attorney General
SECSecurities and Exchange Commission
Electric, Purchased Gas and Resource Adjustment Clauses
GUICSDPUCGas utility infrastructure cost rider
RESRenewable energy standard
TCRTransmission cost recovery adjustmentSouth Dakota Public Utilities Commission
Other
ACEAffordable Clean Energy
ALJAdministrative Law Judge
AMTAlternative minimum tax
C&ICommercial and Industrial
CCRCoal combustion residuals
CCR RuleFinal rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as nonhazardous waste.waste
CEOChief executive officer
CERCLAComprehensive Environmental Response, Compensation, and Liability Act
CFOChief financial officer
CSPVCrystalline Silicon Photovoltaic
CUBCitizens Utility Board
ETREffective tax rate
FTRFinancial transmission right
GAAPUnited States generally accepted accounting principles
GEGeneral Electric Company
IPPIndependent power producing entity
IRAInflation Reduction Act
ITCInvestment tax credit
JSCJust Solar Coalition
MGPManufactured gas plant
MISOMidcontinent Independent System Operator, Inc.
NAVNet asset value
NOxNitrogen Oxides
O&MOperating and maintenance
PFASPer- and PolyFluoroAlkylPolyfluoroalkyl Substances
PPAPower purchase agreement
PTCProduction tax credit
RFPRequest for proposal
ROEReturn on equity
RTORegional Transmission Organization
SMMPASouthern Minnesota Municipal Power Agency
TOsTransmission owners
XLIXcel Large Industrial Customers
Measurements
MWMegawatts

Forward-Looking Statements
Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, and expected impact on our results of operations, financial condition and cash flows of resettlement calculations and credit losses relating to certain energy transactions, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in NSP-Minnesota’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2021,2022, and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic, including potential workforce impacts resulting from vaccination requirements, quarantine policies or government restrictions, and sales volatility; operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of NSP-Minnesota and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather;weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties;penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.



Table of Contents
PART I FINANCIAL INFORMATION
ITEM 1 — FINANCIAL STATEMENTS

NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(amounts in millions)
Three Months Ended Sept. 30Nine Months Ended Sept. 30Three Months Ended June 30Six Months Ended June 30
20222021202220212023202220232022
Operating revenuesOperating revenuesOperating revenues
Electric, non-affiliatesElectric, non-affiliates$1,598 $1,350 $3,914 $3,469 Electric, non-affiliates$1,076 $1,191 $2,207 $2,316 
Electric, affiliatesElectric, affiliates132 127 394 373 Electric, affiliates113 133 238 262 
Natural gasNatural gas102 70 703 353 Natural gas98 167 498 601 
OtherOther12 10 33 29 Other12 11 22 21 
Total operating revenuesTotal operating revenues1,844 1,557 5,044 4,224 Total operating revenues1,299 1,502 2,965 3,200 
Operating expensesOperating expensesOperating expenses
Electric fuel and purchased powerElectric fuel and purchased power750 574 1,857 1,494 Electric fuel and purchased power518 578 1,023 1,107 
Cost of natural gas sold and transportedCost of natural gas sold and transported65 30 510 187 Cost of natural gas sold and transported45 109 342 445 
Cost of sales — otherCost of sales — other19 16 Cost of sales — other14 12 
O&M expenses305 287 915 899 
Operating and maintenance expensesOperating and maintenance expenses326 304 651 610 
Conservation program expensesConservation program expenses45 35 135 101 Conservation program expenses25 41 56 90 
Depreciation and amortizationDepreciation and amortization256 239 759 689 Depreciation and amortization202 251 464 503 
Taxes (other than income taxes)Taxes (other than income taxes)69 65 210 200 Taxes (other than income taxes)32 68 110 141 
Total operating expensesTotal operating expenses1,497 1,236 4,405 3,586 Total operating expenses1,155 1,358 2,660 2,908 
Operating incomeOperating income347 321 639 638 Operating income144 144 305 292 
Other (expense) income, net(4)— (9)
Other income (expense), netOther income (expense), net(5)(5)
Allowance for funds used during construction — equityAllowance for funds used during construction — equity21 23 Allowance for funds used during construction — equity17 12 
Interest charges and financing costsInterest charges and financing costsInterest charges and financing costs
Interest charges — includes other financing costs of $2, $2, $6 and $6, respectively75 69 216 202 
Interest charges — includes other financing costs of $2, $2, $4 and $4, respectivelyInterest charges — includes other financing costs of $2, $2, $4 and $4, respectively83 72 160 141 
Allowance for funds used during construction — debtAllowance for funds used during construction — debt(4)(3)(9)(9)Allowance for funds used during construction — debt(5)(3)(10)(5)
Total interest charges and financing costsTotal interest charges and financing costs71 66 207 193 Total interest charges and financing costs78 69 150 136 
Income before income taxesIncome before income taxes281 263 444 472 Income before income taxes77 76 174 163 
Income tax expense (benefit)12 15 (70)(17)
Income tax benefitIncome tax benefit(50)(42)(92)(82)
Net incomeNet income$269 $248 $514 $489 Net income$127 $118 $266 $245 

See Notes to Consolidated Financial Statements
4

Table of Contents
NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(amounts in millions)
Three Months Ended Sept. 30Nine Months Ended Sept. 30Three Months Ended June 30Six Months Ended June 30
20222021202220212023202220232022
Net incomeNet income$269 $248 $514 $489 Net income$127 $118 $266 $245 
Other comprehensive incomeOther comprehensive incomeOther comprehensive income
Derivative instruments:Derivative instruments:Derivative instruments:
Reclassification of losses to net income, net of tax of $—, $—, $— and $—, respectively— — — 
Net fair value increase net of tax of $2, $—, $1 and $— respectivelyNet fair value increase net of tax of $2, $—, $1 and $— respectively— — 
Total other comprehensive incomeTotal other comprehensive income— — — Total other comprehensive income— — 
Total comprehensive incomeTotal comprehensive income$269 $248 $514 $490 Total comprehensive income$133 $118 $269 $245 

See Notes to Consolidated Financial Statements
5

Table of Contents
NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(amounts in millions)
Nine Months Ended Sept. 30Six Months Ended June 30
2022202120232022
Operating activitiesOperating activitiesOperating activities
Net incomeNet income$514 $489 Net income$266 $245 
Adjustments to reconcile net income to cash provided by operating activities:Adjustments to reconcile net income to cash provided by operating activities:Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortizationDepreciation and amortization765 694 Depreciation and amortization466 507 
Nuclear fuel amortizationNuclear fuel amortization91 86 Nuclear fuel amortization53 61 
Deferred income taxesDeferred income taxes(167)(2)Deferred income taxes(65)(144)
Allowance for equity funds used during constructionAllowance for equity funds used during construction(21)(23)Allowance for equity funds used during construction(17)(12)
Provision for bad debtsProvision for bad debts10 17 Provision for bad debts13 
Net realized and unrealized hedging and derivatives transactions23 (27)
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Accounts receivableAccounts receivable(56)(55)Accounts receivable43 (16)
Accrued unbilled revenuesAccrued unbilled revenues40 21 Accrued unbilled revenues81 13 
InventoriesInventories(107)(1)Inventories35 (28)
Other current assetsOther current assetsOther current assets
Accounts payableAccounts payable57 81 Accounts payable(81)50 
Net regulatory assets and liabilitiesNet regulatory assets and liabilities325 (312)Net regulatory assets and liabilities192 258 
Other current liabilitiesOther current liabilities88 15 Other current liabilities95 12 
Pension and other employee benefit obligationsPension and other employee benefit obligations(9)(38)Pension and other employee benefit obligations(19)(7)
Other, netOther, net(24)Other, net20 
Net cash provided by operating activitiesNet cash provided by operating activities1,567 922 Net cash provided by operating activities1,073 969 
Investing activitiesInvesting activitiesInvesting activities
Capital/construction expendituresCapital/construction expenditures(1,293)(1,368)Capital/construction expenditures(1,103)(752)
Purchase of investment securitiesPurchase of investment securities(1,055)(540)Purchase of investment securities(416)(787)
Proceeds from the sale of investment securitiesProceeds from the sale of investment securities1,029 531 Proceeds from the sale of investment securities398 769 
Investments in utility money pool arrangementInvestments in utility money pool arrangement(1,426)(464)Investments in utility money pool arrangement(69)(856)
Repayments from utility money pool arrangementRepayments from utility money pool arrangement1,408 394 Repayments from utility money pool arrangement855 
Other, netOther, netOther, net(2)
Net cash used in investing activitiesNet cash used in investing activities(1,332)(1,444)Net cash used in investing activities(1,187)(769)
Financing activitiesFinancing activitiesFinancing activities
Repayments of short-term borrowings, netRepayments of short-term borrowings, net— (179)Repayments of short-term borrowings, net(207)— 
Borrowings under utility money pool arrangementBorrowings under utility money pool arrangement— 434 Borrowings under utility money pool arrangement189 — 
Repayments under utility money pool arrangementRepayments under utility money pool arrangement— (434)Repayments under utility money pool arrangement(189)— 
Proceeds from issuance of long-term debtProceeds from issuance of long-term debt489 836 Proceeds from issuance of long-term debt783 489 
Repayment of long-term debtRepayment of long-term debt(300)— Repayment of long-term debt(400)(300)
Capital contributions from parentCapital contributions from parent644 Capital contributions from parent251 (7)
Dividends paid to parentDividends paid to parent(442)(322)Dividends paid to parent(254)(263)
Net cash (used in) provided by financing activities(249)979 
Net cash provided by (used) in financing activitiesNet cash provided by (used) in financing activities173 (81)
Net change in cash, cash equivalents and restricted cashNet change in cash, cash equivalents and restricted cash(14)457 Net change in cash, cash equivalents and restricted cash59 119 
Cash, cash equivalents and restricted cash at beginning of periodCash, cash equivalents and restricted cash at beginning of period73 46 Cash, cash equivalents and restricted cash at beginning of period65 73 
Cash, cash equivalents and restricted cash at end of periodCash, cash equivalents and restricted cash at end of period$59 $503 Cash, cash equivalents and restricted cash at end of period$124 $192 
Supplemental disclosure of cash flow information:Supplemental disclosure of cash flow information:Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)Cash paid for interest (net of amounts capitalized)$(198)$(189)Cash paid for interest (net of amounts capitalized)$(137)$(129)
Cash (paid) received for income taxes, net(53)
Cash received from (paid for) income taxes, netCash received from (paid for) income taxes, net43 (25)
Supplemental disclosure of non-cash investing and financing transactions:Supplemental disclosure of non-cash investing and financing transactions:Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additionsAccrued property, plant and equipment additions$162 $233 Accrued property, plant and equipment additions$158 $148 
Inventory transfers to property, plant and equipmentInventory transfers to property, plant and equipmentInventory transfers to property, plant and equipment26 
Operating lease right-of-use assetsOperating lease right-of-use assets— Operating lease right-of-use assets29 
Allowance for equity funds used during constructionAllowance for equity funds used during construction21 23 Allowance for equity funds used during construction17 12 

See Notes to Consolidated Financial Statements
6

Table of Contents
NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(amounts in millions, except share and per share data)
Sept. 30, 2022Dec. 31, 2021June 30, 2023Dec. 31, 2022
AssetsAssetsAssets
Current assetsCurrent assetsCurrent assets
Cash and cash equivalentsCash and cash equivalents$59 $73 Cash and cash equivalents$124 $65 
Accounts receivable, netAccounts receivable, net495 429 Accounts receivable, net465 534 
Accounts receivable from affiliatesAccounts receivable from affiliates16 29 Accounts receivable from affiliates19 45 
Investments in money pool arrangementsInvestments in money pool arrangements109 91 Investments in money pool arrangements64 — 
Accrued unbilled revenuesAccrued unbilled revenues279 319 Accrued unbilled revenues291 372 
InventoriesInventories407 309 Inventories323 384 
Regulatory assetsRegulatory assets436 527 Regulatory assets310 384 
Derivative instrumentsDerivative instruments168 53 Derivative instruments110 89 
Prepayments and otherPrepayments and other42 46 Prepayments and other69 62 
Total current assetsTotal current assets2,011 1,876 Total current assets1,775 1,935 
Property, plant and equipment, netProperty, plant and equipment, net17,070 16,430 Property, plant and equipment, net17,967 17,478 
Other assetsOther assetsOther assets
Nuclear decommissioning fund and other investmentsNuclear decommissioning fund and other investments2,789 3,308 Nuclear decommissioning fund and other investments3,127 2,930 
Regulatory assetsRegulatory assets953 718 Regulatory assets751 894 
Derivative instrumentsDerivative instruments74 33 Derivative instruments61 68 
Operating lease right-of-use assetsOperating lease right-of-use assets346 408 Operating lease right-of-use assets306 324 
OtherOther29 36 Other24 29 
Total other assetsTotal other assets4,191 4,503 Total other assets4,269 4,245 
Total assetsTotal assets$23,272 $22,809 Total assets$24,011 $23,658 
Liabilities and EquityLiabilities and EquityLiabilities and Equity
Current liabilitiesCurrent liabilitiesCurrent liabilities
Current portion of long-term debtCurrent portion of long-term debt$400 $300 Current portion of long-term debt$— $400 
Short-term debtShort-term debt— 207 
Accounts payableAccounts payable586 522 Accounts payable501 619 
Accounts payable to affiliatesAccounts payable to affiliates89 63 Accounts payable to affiliates86 89 
Regulatory liabilitiesRegulatory liabilities250 117 Regulatory liabilities244 191 
Taxes accruedTaxes accrued311 260 Taxes accrued247 272 
Accrued interestAccrued interest80 78 Accrued interest84 79 
Dividends payable to parentDividends payable to parent117 96 Dividends payable to parent112 122 
Derivative instrumentsDerivative instruments58 35 Derivative instruments44 42 
Operating lease liabilitiesOperating lease liabilities97 90 Operating lease liabilities97 98 
OtherOther233 166 Other364 227 
Total current liabilitiesTotal current liabilities2,221 1,727 Total current liabilities1,779 2,346 
Deferred credits and other liabilitiesDeferred credits and other liabilitiesDeferred credits and other liabilities
Deferred income taxesDeferred income taxes1,667 1,949 Deferred income taxes1,652 1,666 
Deferred investment tax creditsDeferred investment tax credits16 17 Deferred investment tax credits15 15 
Regulatory liabilitiesRegulatory liabilities1,976 1,927 Regulatory liabilities2,045 1,983 
Asset retirement obligationsAsset retirement obligations2,699 2,585 Asset retirement obligations2,628 2,727 
Derivative instrumentsDerivative instruments103 71 Derivative instruments91 102 
Pension and employee benefit obligationsPension and employee benefit obligations105 112 Pension and employee benefit obligations136 155 
Operating lease liabilitiesOperating lease liabilities280 353 Operating lease liabilities235 256 
OtherOther29 48 Other30 30 
Total deferred credits and other liabilitiesTotal deferred credits and other liabilities6,875 7,062 Total deferred credits and other liabilities6,832 6,934 
Commitments and contingenciesCommitments and contingenciesCommitments and contingencies
CapitalizationCapitalizationCapitalization
Long-term debtLong-term debt6,541 6,447 Long-term debt7,328 6,542 
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares
outstanding at Sept. 30, 2022 and Dec. 31, 2021, respectively
— — 
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares
outstanding at June 30, 2023 and Dec. 31, 2022, respectively
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares
outstanding at June 30, 2023 and Dec. 31, 2022, respectively
— — 
Additional paid in capitalAdditional paid in capital5,213 5,202 Additional paid in capital5,585 5,374 
Retained earningsRetained earnings2,442 2,391 Retained earnings2,502 2,480 
Accumulated other comprehensive lossAccumulated other comprehensive loss(20)(20)Accumulated other comprehensive loss(15)(18)
Total common stockholder's equityTotal common stockholder's equity7,635 7,573 Total common stockholder's equity8,072 7,836 
Total liabilities and equityTotal liabilities and equity$23,272 $22,809 Total liabilities and equity$24,011 $23,658 
See Notes to Consolidated Financial Statements
7

Table of Contents
NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER’S EQUITY (UNAUDITED)
(amounts in millions, except share data)
Common Stock IssuedRetained EarningsAccumulated Other Comprehensive Loss Total Common Stockholder's EquityCommon Stock IssuedRetained EarningsAccumulated Other Comprehensive Loss Total Common Stockholder's Equity
SharesPar ValueAdditional Paid
In Capital
SharesPar ValueAdditional Paid
In Capital
Three Months Ended Sept. 30, 2022 and 2021
Balance at June 30, 20211,000,000 $— $5,185 $2,231 $(21)$7,395 
Three Months Ended June 30, 2023 and 2022Three Months Ended June 30, 2023 and 2022
Balance at March 31, 2022Balance at March 31, 20221,000,000 $— $5,202 $2,351 $(20)$7,533 
Net incomeNet income248 248 Net income118 118 
Dividends declared to parentDividends declared to parent(109)(109)Dividends declared to parent(114)(114)
Contribution of capital by parentContribution of capital by parent24 24 Contribution of capital by parent11 11 
Balance at Sept. 30, 20211,000,000 $— $5,209 $2,370 $(21)$7,558 
Balance at June 30, 2022Balance at June 30, 20221,000,000 $— $5,213 $2,355 $(20)$7,548 
Balance June 30, 20221,000,000 $— $5,213 $2,355 $(20)$7,548 
Net income269 269 
Dividends declared to parent(182)(182)
Balance at Sept. 30, 20221,000,000 $— $5,213 $2,442 $(20)$7,635 
Common Stock IssuedRetained EarningsAccumulated Other Comprehensive LossTotal Common Stockholder's Equity
SharesPar ValueAdditional Paid
In Capital
Nine Months Ended Sept. 30, 2022 and 2021
Balance at Dec. 31, 20201,000,000 $— $4,585 $2,206 $(22)$6,769 
Balance at March 31, 2023Balance at March 31, 20231,000,000 $— $5,484 $2,487 $(21)$7,950 
Net incomeNet income489 489 Net income127 127 
Other comprehensive incomeOther comprehensive incomeOther comprehensive income
Dividends declared to parentDividends declared to parent(325)(325)Dividends declared to parent(112)(112)
Contribution of capital by parentContribution of capital by parent624 624 Contribution of capital by parent101 101 
Balance at June 30, 2023Balance at June 30, 20231,000,000 $— $5,585 $2,502 $(15)$8,072 
Balance at Sept. 30, 20211,000,000 $— $5,209 $2,370 $(21)$7,558 
Common Stock IssuedRetained EarningsAccumulated Other Comprehensive LossTotal Common Stockholder's Equity
SharesPar ValueAdditional Paid
In Capital
Six Months Ended June 30, 2023 and 2022Six Months Ended June 30, 2023 and 2022
Balance at Dec. 31, 2021Balance at Dec. 31, 20211,000,000 $— $5,202 $2,391 $(20)$7,573 Balance at Dec. 31, 20211,000,000 $— $5,202 $2,391 $(20)$7,573 
Net incomeNet income514 514 Net income245 245 
Dividends declared to parentDividends declared to parent(463)(463)Dividends declared to parent(281)(281)
Contribution of capital by parentContribution of capital by parent11 11 Contribution of capital by parent11 11 
Balance at Sept. 30, 20221,000,000$— $5,213 $2,442 $(20)$7,635 
Balance at June 30, 2022Balance at June 30, 20221,000,000 $— $5,213 $2,355 $(20)$7,548 
Balance at Dec. 31, 2022Balance at Dec. 31, 20221,000,000 $— $5,374 $2,480 $(18)$7,836 
Net incomeNet income266 266 
Other comprehensive incomeOther comprehensive income
Dividends declared to parentDividends declared to parent(244)(244)
Contribution of capital by parentContribution of capital by parent211 211 
Balance at June 30, 2023Balance at June 30, 20231,000,000$— $5,585 $2,502 $(15)$8,072 
See Notes to Consolidated Financial StatementsSee Notes to Consolidated Financial StatementsSee Notes to Consolidated Financial Statements

8

Table of Contents

NSP-MINNESOTA AND SUBSIDIARIES
Notes to Consolidated Financial Statements (UNAUDITED)
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Minnesota and its subsidiaries as of Sept.June 30, 20222023 and Dec. 31, 2021;2022; the results of NSP-Minnesota’s operations, including the components of net income and comprehensive income, and changes in stockholder’s equity for the three and ninesix months ended Sept.June 30, 20222023 and 2021;2022; and NSP-Minnesota’s cash flows for the ninesix months ended Sept.June 30, 20222023 and 2021.2022.
All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept.June 30, 20222023 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 20212022 balance sheet information has been derived from the audited 20212022 consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2021.2022.
Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2021,2022, filed with the SEC on Feb. 23, 2022.2023. Due to the seasonality of NSP-Minnesota’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.
1. Summary of Significant Accounting Policies
The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 20212022 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.
2. Accounting Pronouncements
As of Sept.June 30, 2022,2023, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on NSP-Minnesota’s consolidated financial statements.
3. Selected Balance Sheet Data
(Millions of Dollars)(Millions of Dollars)Sept. 30, 2022Dec. 31, 2021(Millions of Dollars)June 30, 2023Dec. 31, 2022
Accounts receivable, netAccounts receivable, netAccounts receivable, net
Accounts receivableAccounts receivable$538 $474 Accounts receivable$509 $580 
Less allowance for bad debtsLess allowance for bad debts(43)(45)Less allowance for bad debts(44)(46)
Accounts receivable, netAccounts receivable, net$495 $429 Accounts receivable, net$465 $534 
(Millions of Dollars)(Millions of Dollars)Sept. 30, 2022Dec. 31, 2021(Millions of Dollars)June 30, 2023Dec. 31, 2022
InventoriesInventoriesInventories
Materials and suppliesMaterials and supplies$197 $181 Materials and supplies$209 $200 
FuelFuel117 81 Fuel103 103 
Natural gasNatural gas93 47 Natural gas11 81 
Total inventoriesTotal inventories$407 $309 Total inventories$323 $384 
(Millions of Dollars)(Millions of Dollars)Sept. 30, 2022Dec. 31, 2021(Millions of Dollars)June 30, 2023Dec. 31, 2022
Property, plant and equipment, netProperty, plant and equipment, netProperty, plant and equipment, net
Electric plantElectric plant$20,044 $19,154 Electric plant$20,492 $20,114 
Natural gas plantNatural gas plant1,993 1,864 Natural gas plant2,154 2,100 
Common and other propertyCommon and other property1,091 1,007 Common and other property1,229 1,156 
Plant to be retired (a)
Plant to be retired (a)
682 719 
Plant to be retired (a)
624 646 
Construction work in progressConstruction work in progress1,102 984 Construction work in progress973 907 
Total property, plant and equipmentTotal property, plant and equipment24,912 23,728 Total property, plant and equipment25,472 24,923 
Less accumulated depreciationLess accumulated depreciation(8,083)(7,606)Less accumulated depreciation(7,838)(7,734)
Nuclear fuelNuclear fuel3,105 3,081 Nuclear fuel3,278 3,183 
Less accumulated amortizationLess accumulated amortization(2,864)(2,773)Less accumulated amortization(2,945)(2,894)
Property, plant and equipment, netProperty, plant and equipment, net$17,070 $16,430 Property, plant and equipment, net$17,967 $17,478 
(a)Amounts include regulator-approved retirements of Sherco Units 1, 2, and 3 and A.S. King andKing. Amounts are reported net of accumulated depreciation.
Revenue subject to refund of $223 million and $67 million as of June 30, 2023 and Dec. 31, 2022, respectively, is included in other current liabilities.
4. Borrowings and Other Financing Instruments
Short-Term Borrowings
NSP-Minnesota meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool.
Money Pool — Xcel Energy and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy.
Money pool borrowings for NSP-Minnesota:borrowings:
(Amounts in Millions, Except Interest Rates)(Amounts in Millions, Except Interest Rates)Three Months Ended Sept. 30, 2022Year Ended Dec. 31, 2021(Amounts in Millions, Except Interest Rates)Three Months Ended June 30, 2023Year Ended Dec. 31, 2022
Borrowing limitBorrowing limit$250 $250 Borrowing limit$250 $250 
Amount outstanding at period endAmount outstanding at period end— — Amount outstanding at period end— — 
Average amount outstandingAverage amount outstanding— Average amount outstanding49 — 
Maximum amount outstandingMaximum amount outstanding— 236 Maximum amount outstanding135 
Weighted average interest rate, computed on a daily basisWeighted average interest rate, computed on a daily basisN/A0.07 %Weighted average interest rate, computed on a daily basis4.81 %3.87 %
Weighted average interest rate at period endWeighted average interest rate at period endN/AN/AWeighted average interest rate at period endN/AN/A
Commercial Paper — Commercial paper outstanding for NSP-Minnesota:outstanding:
(Amounts in Millions, Except Interest Rates)(Amounts in Millions, Except Interest Rates)Three Months Ended Sept. 30, 2022Year Ended Dec. 31, 2021(Amounts in Millions, Except Interest Rates)Three Months Ended June 30, 2023Year Ended Dec. 31, 2022
Borrowing limitBorrowing limit$700 $500 Borrowing limit$700 $700 
Amount outstanding at period endAmount outstanding at period end— — Amount outstanding at period end— 207 
Average amount outstandingAverage amount outstanding— 26 Average amount outstanding30 21 
Maximum amount outstandingMaximum amount outstanding— 317 Maximum amount outstanding150 290 
Weighted average interest rate, computed on a daily basisWeighted average interest rate, computed on a daily basisN/A0.18 %Weighted average interest rate, computed on a daily basis4.99 %4.14 %
Weighted average interest rate at period endWeighted average interest rate at period endN/AN/AWeighted average interest rate at period endN/A4.64 
Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There were $1115 million and $9 million of letters of credit outstanding under the credit facility at Sept.both June 30, 20222023 and Dec. 31, 2021, respectively.2022. Amounts approximate their fair value and are subject to fees.
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Revolving Credit Facility — In order to issue its commercial paper, NSP-Minnesota must have a revolving credit facility in place at least equal to or greater than the amount of its commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.
In September 2022, NSP-Minnesota entered into an amended five-year credit agreement with a syndicate of banks, with substantially the same terms and conditions as the prior credit agreements. The borrowing limit for NSP-Minnesota was increased from $500 million to $700 million, and the maturity was extended from June 2024 to September 2027.
NSP-Minnesota has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval.
At Sept.June 30, 2022,2023, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars):
Credit Facility (a)
Credit Facility (a)
Drawn (b)
Available
Credit Facility (a)
Drawn (b)
Available
$700 $11 $689 700 $15 $685 
(a)Expires in September 2027.
(b)Includes outstanding commercial paper and letters of credit.
All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Minnesota had no direct advances on the credit facility outstanding at Sept.June 30, 20222023 and Dec. 31, 2021.2022.
Bilateral Credit Agreement In April 2022,2023, 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.June 30, 2022,2023, NSP-Minnesota had $50$57 million of outstanding letters of credit under the $75 million bilateral credit agreement.
Long-Term Borrowings
During the ninesix months ended SeptemberJune 30, 2022,2023, NSP-Minnesota issued $500$800 million of 4.50%5.10% first mortgage bonds due June 1, 2052.May 15, 2053.
5. Revenues
Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Minnesota’s operating revenues consisted of the following:
Three Months Ended Sept. 30, 2022Three Months Ended June 30, 2023
(Millions of Dollars)(Millions of Dollars)ElectricNatural GasAll OtherTotal(Millions of Dollars)ElectricNatural GasAll OtherTotal
Major revenue typesMajor revenue typesMajor revenue types
Revenue from contracts with customers:Revenue from contracts with customers:Revenue from contracts with customers:
ResidentialResidential$441 $37 $10 $488 Residential$317 $42 $10 $369 
C&IC&I714 43 — 757 C&I517 40 — 557 
OtherOther10 — 12 Other— 11 
Total retailTotal retail1,165 80 12 1,257 Total retail843 82 12 937 
WholesaleWholesale242 — — 242 Wholesale80 — — 80 
TransmissionTransmission101 — — 101 Transmission66 — — 66 
Interchange132 — — 132 
Other10 — 18 
Interchange and otherInterchange and other108 — 111 
Total revenue from contracts with customersTotal revenue from contracts with customers1,648 90 12 1,750 Total revenue from contracts with customers1,097 85 12 1,194 
Alternative revenue and otherAlternative revenue and other82 12 — 94 Alternative revenue and other92 13 — 105 
Total revenuesTotal revenues$1,730 $102 $12 $1,844 Total revenues$1,189 $98 $12 $1,299 
Three Months Ended Sept. 30, 2021Three Months Ended June 30, 2022
(Millions of Dollars)(Millions of Dollars)ElectricNatural GasAll OtherTotal(Millions of Dollars)ElectricNatural GasAll OtherTotal
Major revenue typesMajor revenue typesMajor revenue types
Revenue from contracts with customers:Revenue from contracts with customers:Revenue from contracts with customers:
ResidentialResidential$414 $27 $$450 Residential$338 $76 $$417 
C&IC&I638 26 — 664 C&I588 76 — 664 
OtherOther— 10 Other10 — 18 
Total retailTotal retail1,061 53 10 1,124 Total retail936 152 11 1,099 
WholesaleWholesale120 — — 120 Wholesale138 — — 138 
TransmissionTransmission69 — — 69 Transmission63 — — 63 
Interchange127 — — 127 
Other— — 
Interchange and otherInterchange and other128 — 131 
Total revenue from contracts with customersTotal revenue from contracts with customers1,377 59 10 1,446 Total revenue from contracts with customers1,265 155 11 1,431 
Alternative revenue and otherAlternative revenue and other100 11 — 111 Alternative revenue and other59 12 — 71 
Total revenuesTotal revenues$1,477 $70 $10 $1,557 Total revenues$1,324 $167 $11 $1,502 

Six Months Ended June 30, 2023
(Millions of Dollars)ElectricNatural GasAll OtherTotal
Major revenue types
Revenue from contracts with customers:
Residential$675 $249 $19 $943 
C&I1,060 213 — 1,273 
Other17 — 20 
Total retail1,752 462 22 2,236 
Wholesale184 — — 184 
Transmission130 — — 130 
Interchange and other234 — 239 
Total revenue from contracts with customers2,300 467 22 2,789 
Alternative revenue and other145 31 — 176 
Total revenues$2,445 $498 $22 $2,965 
Nine Months Ended Sept. 30, 2022
(Millions of Dollars)ElectricNatural GasAll OtherTotal
Major revenue types
Revenue from contracts with customers:
Residential$1,116 $348 $19 $1,483 
C&I1,816 299 — 2,115 
Other29 — 14 43 
Total retail2,961 647 33 3,641 
Wholesale505 — — 505 
Transmission225 — — 225 
Interchange394 — — 394 
Other15 — 24 
Total revenue from contracts with customers4,094 662 33 4,789 
Alternative revenue and other214 41 — 255 
Total revenues$4,308 $703 $33 $5,044 
Nine Months Ended Sept. 30, 2021Six Months Ended June 30, 2022
(Millions of Dollars)(Millions of Dollars)ElectricNatural GasAll OtherTotal(Millions of Dollars)ElectricNatural GasAll OtherTotal
Major revenue typesMajor revenue typesMajor revenue types
Revenue from contracts with customers:Revenue from contracts with customers:Revenue from contracts with customers:
ResidentialResidential$1,074 $179 $24 $1,277 Residential$675 $311 $$995 
C&IC&I1,601 134 — 1,735 C&I1,102 256 — 1,358 
OtherOther25 — 30 Other19 — 12 31 
Total retailTotal retail2,700 313 29 3,042 Total retail1,796 567 21 2,384 
WholesaleWholesale287 — — 287 Wholesale263 — — 263 
TransmissionTransmission184 — — 184 Transmission124 — — 124 
Interchange373 — — 373 
Other— 14 
Interchange and otherInterchange and other263 — 268 
Total revenue from contracts with customersTotal revenue from contracts with customers3,549 322 29 3,900 Total revenue from contracts with customers2,446 572 21 3,039 
Alternative revenue and otherAlternative revenue and other293 31 — 324 Alternative revenue and other132 29 — 161 
Total revenuesTotal revenues$3,842 $353 $29 $4,224 Total revenues$2,578 $601 $21 $3,200 
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6. Income Taxes
Reconciliation between the statutory rate and ETR:
Nine Months Ended Sept. 30Six Months Ended June 30
2022202120232022
Federal statutory rateFederal statutory rate21.0 %21.0 %Federal statutory rate21.0 %21.0 %
State tax (net of federal tax effect)State tax (net of federal tax effect)7.0 7.0 State tax (net of federal tax effect)7.0 7.0 
Increases (decreases):
(Decreases) increases:(Decreases) increases:
Wind PTCs (a)
Wind PTCs (a)
(35.9)(22.8)
Wind PTCs (a)
(74.7)(71.7)
Plant regulatory differences (b)
Plant regulatory differences (b)
(7.0)(8.0)
Plant regulatory differences (b)
(6.7)(6.2)
Other tax credits, net operating loss & tax credit allowancesOther tax credits, net operating loss & tax credit allowances(1.3)(1.2)Other tax credits, net operating loss & tax credit allowances(1.5)(1.5)
Other (net)Other (net)0.4 0.4 Other (net)2.0 1.1 
Effective income tax rateEffective income tax rate(15.8)%(3.6)%Effective income tax rate(52.9)%(50.3)%
(a)Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.
(b)RegulatoryPlant 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.
7.    Fair Value of Financial Assets and Liabilities
Fair Value Measurements
Accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance.value.
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 quotedobservable actual trading prices.
Level 2 — Pricing inputs are other than quotedactual trading 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 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 areinclude those valued with models requiring significant management judgment or estimation.
Specific valuation methods include:
Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted NAV.
Investments in equity securities and other funds Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs. The investments in commingled funds may be redeemed for NAV with proper notice. Private equity commingled fund investmentsfunds 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 commingled funds’ investmentsfunds may be redeemed with proper notice, however, withdrawals may be delayed or discounted as a result of fund illiquidity.
Investments in debt securities Fair values for debt securities are determined by a third-partythird party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities.
Interest rate derivativesThe fairFair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts.
Commodity derivatives Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification.
When contractual settlementscontracts relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges, or quoted by brokers, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification.
Electric commodity derivatives held by NSP-Minnesota include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from aan RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path.
The values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments. FTRs are recognized at fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction values of FTRs, these fair value measurements have been assigned a Level 3.3 classification.
If costs of electric transmission congestion increase or decrease for a given path, the value of that particular instrument will likewise increase or decrease. Net congestion costs, including the impact of FTR settlements are shared through fuel and purchased energy cost recovery mechanisms. As such, the fair value of the unsettled instruments (i.e., derivative asset or liability) is offset/deferred as a regulatory asset or liability.
Non-Derivative Fair Value Measurements
The Nuclear Regulatory Commission requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning these facilities. The fund contains cash equivalents, debt securities, equity securities and other investments. NSP-Minnesota uses the MPUC approved asset allocation for the investment targets by asset class for the qualified trust.
NSP-Minnesota recognizes the costs of funding the decommissioning over the lives of the nuclear plants, assuming rate recovery of all costs. 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 are deferred as a component of the regulatory asset.
Unrealized gains for the nuclear decommissioning fund were $900 million and $1.3$1 billion as of Sept.June 30, 20222023 and Dec. 31, 2021, respectively,2022, and unrealized losses were $133$68 million and $7$90 million as of Sept.June 30, 20222023 and Dec. 31, 2021,2022, respectively.
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Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:
Sept. 30, 2022June 30, 2023
Fair ValueFair Value
(Millions of Dollars)(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Nuclear decommissioning fund (a)
Nuclear decommissioning fund (a)
Cash equivalentsCash equivalents$37 $37 $— $— $— $37 Cash equivalents$35 $35 $— $— $— $35 
Commingled fundsCommingled funds832 — — — 1,167 1,167 Commingled funds736 — — — 1,061 1,061 
Debt securitiesDebt securities696 — 611 — 620 Debt securities780 — 724 — 732 
Equity securitiesEquity securities409 918 — — 919 Equity securities508 1,248 — — 1,250 
TotalTotal$1,974 $955 $612 $$1,167 $2,743 Total$2,059 $1,283 $726 $$1,061 $3,078 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $46$49 million of other investments, including the rabbi trust.
Dec. 31, 2021
Fair Value
(Millions of Dollars)CostLevel 1Level 2Level 3NAVTotal
Nuclear decommissioning fund (a)
Cash equivalents$64 $64 $— $— $— $64 
Commingled funds856 — — — 1,294 1,294 
Debt securities631 — 666 — 675 
Equity securities411 1,222 — — 1,223 
Total$1,962 $1,286 $667 $$1,294 $3,256 
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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 — 675 
Equity securities406 999 — — 1,000 
Total$1,976 $1,028 $670 $$1,178 $2,882 
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $52$48 million of other investments, including the rabbi trust.
For the three and ninesix months ended Sept.June 30, 20222023 and 2021,2022, there were immaterial Level 3 nuclear decommissioning fund investments or transfer of amounts between levels.
Contractual maturity dates of debt securities in the nuclear decommissioning fund as of Sept.June 30, 2022:2023:
Final Contractual MaturityFinal Contractual Maturity
(Millions of Dollars)(Millions of Dollars)Due in 1 year or LessDue in 1 to 5 YearsDue in 5 to 10 YearsDue after 10 YearsTotal(Millions of Dollars)Due in 1 Year or LessDue in 1 to 5 YearsDue in 5 to 10 YearsDue after 10 YearsTotal
Debt securitiesDebt securities$$190 $227 $198 $620 Debt securities$$229 $259 $240 $732 
Derivative InstrumentsActivities and Fair Value Measurements
NSP-Minnesota enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices and vehicle fuel prices.
Interest Rate Derivatives — NSP-Minnesota enters into various instrumentscontracts that effectively fix the yield or priceinterest rate on a specified principal amount of a hypothetical future debt issuance. These financial swaps net settle based on changes in a specified benchmark interest rate, for anacting as a hedge of changes in market interest rates that will impact specified anticipated debt issuance for a specific period.issuances. These derivative instruments are generally designated as cash flow hedges for accounting purposes, with changes in fair value prior to settlementoccurrence of the hedged transactions recorded as other comprehensive income.
At Sept.As of June 30, 2022,2023, accumulated other comprehensive loss related to interest rate derivatives included $1 million of net losses expected to be reclassified into earnings during the next 12 months as the hedged interest rate transactions impact earnings. As of Sept.June 30, 2022,2023, NSP-Minnesota had no unsettled interest rate derivatives.
See Note 10 for the financial impact of qualifying interest rate cash flow hedges on NSP-Minnesota’s accumulated other comprehensive loss included in the consolidated statements of common stockholder’s equity and in the consolidated statements of comprehensive income.
Wholesale and Commodity Trading Risk — NSP-Minnesota conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy, energy-related instruments and natural gas-related instruments, including derivatives. NSP-Minnesota is allowed to conduct these activities within guidelines and limitations as approved by its risk management committee, comprised of management personnel not directly involved in the activities governed by this policy.
Results of derivative instrument transactions entered into for trading purposes are presented in the consolidated statements of income as electric revenues, net of any sharing with customers. These activities are not intended to mitigate commodity price risk associated with regulated electric and natural gas operations. Sharing of anythese margins is determined through state regulatory proceedings as well as the operation of the FERC approvedFERC-approved joint operating agreement.
Commodity Derivatives — NSP-Minnesota 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.operations. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale and FTRs.
The most significant derivative positions outstanding at June 30, 2023 for this purpose relate to FTR instruments administered by MISO. These instruments are intended to offset the impacts of transmission system congestion. Higher congestion costs in recent years have led to an increase in the fair value of FTRs. Settlements of FTRs vehicleare shared with electric customers through fuel and weather derivatives.purchased energy cost-recovery mechanisms.
When NSP-Minnesota may enterenters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers, but maythe instruments are not betypically designated as qualifying hedging transactions. The classification of unrealized losses or gains or losses foron these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms.
As of Sept.June 30, 2022,2023, NSP-Minnesota had no commodity contracts designated as cash flow hedges.
NSP-Minnesota also 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.
Gross notional amounts of commodity forwards, options and FTRs:
(Amounts in Millions) (a)(b)
(Amounts in Millions) (a)(b)
Sept. 30, 2022Dec. 31, 2021
(Amounts in Millions) (a)(b)
June 30, 2023Dec. 31, 2022
Megawatt hours of electricityMegawatt hours of electricity59 57 Megawatt hours of electricity70 44 
Million British thermal units of natural gasMillion British thermal units of natural gas99 85 Million British thermal units of natural gas78 88 
(a)Amounts are notNot 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.
Consideration of Credit Risk and Concentrations — NSP-Minnesota continuously monitors the creditworthiness of counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the consolidated balance sheets.
NSP-Minnesota’s most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities.
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As of Sept.June 30, 2022, eight2023, six of NSP-Minnesota’s tennine most significant counterparties for these activities, comprising $45$36 million, or 35%32%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. One
Two of the tennine most significant counterparties, comprising $29$24 million, or 22%, of this credit exposure, were not rated by these external ratings agencies, but based on NSP-Minnesota’s internal analysis, had credit quality consistent with investment grade.
One of these significant counterparties, comprising $55$49 million or 42%44% of this credit exposure, had credit quality less than investment grade, based on internal analysis. FourFive of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities.
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Credit Related Contingent Features — Contract provisions for derivative instruments that the utility subsidiaries enter, including those accounted for as normal purchase and normal sale contracts and therefore not reflected on the consolidated balance sheets, may require the posting of collateral or settlement of the contracts for various reasons, including if the applicable utility subsidiary’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies.
As of June 30, 2023 and Dec. 31, 2022, there were $10 million and $4 million, respectively, of derivative liabilities with such underlying contract provisions, respectively.
Certain contracts also contain cross default provisions that may require the posting of collateral or settlement of the contracts if there was a failure under other financing arrangements related to payment terms or other covenants.
As of June 30, 2023 and Dec. 31, 2022, there were approximately $88 million and $76 million of derivative liabilities with such underlying contract provisions, respectively.
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. NSP-Minnesota had no collateral posted related to adequate assurance clauses in derivative contracts as of June 30, 2023 and Dec. 31, 2022.
Recurring Derivative Fair Value Measurements
Impact of Derivative Activity derivative activity:
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory (Assets)Assets and Liabilities
Three Months Ended Sept.June 30, 20222023
Derivatives designated as cash flow hedges:
Interest rate$$— 
Total$$— 
Other derivative instrumentsinstruments:
Electric commodity$20 
Natural gas commodity$(2)
Total$18 
Nine Months Ended Sept. 30, 2022
Other derivative instruments
Electric commodity$26 (11)
Total$— $26 (11)
Three Months Ended Sept. 30, 2021
Other derivative instruments
Natural gas commoditySix Months Ended June 30, 2023
Derivatives designated as cash flow hedges:
Interest rate$$16 
Total$$16 
Nine Months Ended Sept. 30, 2021
Other derivative instrumentsinstruments:
Electric commodity$— $(28)
Natural gas commodity— 182 
Total$— $21(26)
Three Months Ended June 30, 2022
Other derivative instruments:
Electric commodity$— $
Natural gas commodity$— $(1)
Total$— $
Six Months Ended June 30, 2022
Other derivative instruments:
Electric commodity$— $
Natural gas commodity$— $
Total$— $8 

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, 2022
Other derivative instruments
Commodity trading$— $— $11 (b)
Electric commodity— (2)(c)— 
Total$— $(2)$11 
Nine Months Ended Sept. 30, 2022
Other derivative instruments
Commodity trading$— $— $17 (b)
Electric commodity— (5)(c)— 
Natural gas commodity— (d)(5)(d)(e)
Total$— $(3)$12 

.
Pre-Tax (Gains) Losses Reclassified
into Income During the Period from:
Pre-Tax Gains (Losses)
Recognized
During the Period in Income
Pre-Tax (Gains) Losses Reclassified into Income During the Period from:Pre-Tax Gains (Losses) Recognized During the Period in Income
(Millions of Dollars)(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory
Assets and (Liabilities)
(Millions of Dollars)Regulatory Assets and Liabilities
Three Months Ended Sept. 30, 2021
Three Months Ended June 30, 2023Three Months Ended June 30, 2023
Other derivative instruments
Commodity trading$— $— $(10)(b)
Other derivative instruments:Other derivative instruments:
Electric commodityElectric commodity(a)— 
TotalTotal$— $— $(10)Total$$— 
Nine Months Ended Sept. 30, 2021
Derivatives designated as cash flow hedges
Interest rate$(a)$— $— 
Total$$— $— 
Other derivative instruments
Six Months Ended June 30, 2023Six Months Ended June 30, 2023
Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$— $— $23 (b)Commodity trading$— $(1)(b)
Electric commodityElectric commodity— (12)(c)— Electric commodity21 (a)— 
Natural gas commodityNatural gas commodity— (d)(3)(d)(e)Natural gas commodity— (5)(c)(d)
TotalTotal$— $(11)$20 Total$21 $(6)
Three Months Ended June 30, 2022Three Months Ended June 30, 2022
Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$— $(b)
Electric commodityElectric commodity(1)(a)— 
TotalTotal$(1)$
Six Months Ended June 30, 2022Six Months Ended June 30, 2022
Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$— $(b)
Electric commodityElectric commodity(3)(a)— 
Natural gas commodityNatural gas commodity(c)(5)(c)(d)
TotalTotal$(1)$
(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. All 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.value
(d)(b)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.
(c)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)(d)Relates primarily to option premium amortization.
NSP-Minnesota had no derivative instruments designated as fair value hedges during the three and ninesix months ended Sept.June 30, 20222023 and 2021.
Credit Related Contingent Features — Contract provisions for derivative instruments that NSP-Minnesota enters into, including those accounted for as normal purchase-normal sale contracts and therefore not reflected on the consolidated balance sheets, may require the posting of collateral or settlement of the contracts for various reasons, including if NSP-Minnesota’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies.
As of Sept. 30, 2022 and Dec. 31, 2021, there were $5 million and $3 million, respectively, of derivative liabilities with such underlying contract provisions. Certain contracts also contain cross default provisions that may require the posting of collateral or settlement of the contracts if there was a failure under the other financing arrangements related to payment terms or other covenants. As of Sept. 30, 2022 and Dec. 31, 2021, there were approximately $88 million and $48 million, respectively, of derivative liabilities with such underlying contract provisions.
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 NSP-Minnesota’s ability to fulfill its contractual obligations is reasonably expected to be impaired. NSP-Minnesota had no collateral posted related to adequate assurance clauses in derivative contracts as of Sept. 30, 2022 and Dec. 31, 2021.2022.
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Recurring Fair Value Measurements — NSP-Minnesota’s derivativeDerivative assets and liabilities measured at fair value on a recurring basis were as follows:
Sept. 30, 2022Dec. 31, 2021June 30, 2023Dec. 31, 2022
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative assetsCurrent derivative assetsCurrent derivative assets
Other derivative instruments:Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$25 $68 $47 $140 $(98)$42 $$40 $22 $71 $(53)$18 Commodity trading$$46 $34 $85 $(51)$34 $15 $38 $33 $86 $(58)$28 
Electric commodity (b)
Electric commodity (b)
— — 124 124 (4)120 — — 30 30 (1)29 
Electric commodity (b)
— — 75 75 (2)73 — — 58 58 (2)56 
Natural gas commodityNatural gas commodity— — — — — — Natural gas commodity— — — — — — 
Total current derivative assetsTotal current derivative assets$25 $74 $171 $270 $(102)$168 $$46 $52 $107 $(54)$53 Total current derivative assets$$49 $109 $163 $(53)$110 $15 $43 $91 $149 $(60)$89 
Noncurrent derivative assetsNoncurrent derivative assetsNoncurrent derivative assets
Other derivative instruments:Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$30 $42 $76 $148 $(74)$74 $$34 $35 $75 $(42)$33 Commodity trading$12 $38 $57 $107 $(46)$61 $21 $40 $66 $127 $(59)$68 
Total noncurrent derivative assetsTotal noncurrent derivative assets$30 $42 $76 $148 $(74)$74 $$34 $35 $75 $(42)$33 Total noncurrent derivative assets$12 $38 $57 $107 $(46)$61 $21 $40 $66 $127 $(59)$68 
Sept. 30, 2022Dec. 31, 2021June 30, 2023Dec. 31, 2022
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative liabilitiesCurrent derivative liabilitiesCurrent derivative liabilities
Other derivative instruments:Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$33 $99 $$141 $(100)$41 $13 $58 $$75 $(58)$17 Commodity trading$$74 $$87 $(57)$30 $23 $60 $$89 $(63)$26 
Electric commodity (b)
— — (4)— — — (1)— 
Electric commodityElectric commodity— — (2)— — — (2)— 
Natural gas commodityNatural gas commodity— — — — — — Natural gas commodity— — — — — — — — — 
Total current derivative liabilitiesTotal current derivative liabilities$33 $102 $13 $148 $(104)44 $13 $62 $$80 $(59)21 Total current derivative liabilities$$74 $$89 $(59)30 $23 $62 $$93 $(65)28 
PPAs (c)
14 14 
PPAs (b)
PPAs (b)
14 14 
Current derivative instrumentsCurrent derivative instruments$58 $35 Current derivative instruments$44 $42 
Noncurrent derivative liabilitiesNoncurrent derivative liabilitiesNoncurrent derivative liabilities
Other derivative instruments:Other derivative instruments:Other derivative instruments:
Commodity tradingCommodity trading$50 $61 $42 $153 $(80)$73 $15 $48 $26 $89 $(53)$36 Commodity trading$19 $51 $42 $112 $(46)$66 $37 $55 $42 $134 $(60)$74 
Total noncurrent derivative liabilitiesTotal noncurrent derivative liabilities$50 $61 $42 $153 $(80)73 $15 $48 $26 $89 $(53)36 Total noncurrent derivative liabilities$19 $51 $42 $112 $(46)66 $37 $55 $42 $134 $(60)74 
PPAs (c)
30 35 
PPAs (b)
PPAs (b)
25 28 
Noncurrent derivative instrumentsNoncurrent derivative instruments$103 $71 Noncurrent derivative instruments$91 $102 
(a)NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At Sept.June 30, 20222023 and Dec. 31, 2021, derivatives2022, derivative assets and liabilities include $2 million and no obligations to return cash collateral, respectively.collateral. At Sept.both June 30, 20222023 and Dec. 31, 20212022 derivative assets and liabilities include rights to reclaim cash collateral of $9 million and $16 million, respectively.$6 million. Counterparty netting excludesamounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
(b)Amounts relate to FTR instruments administered by MISO (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, fair values for FTRs are offset/deferred as a regulatory asset or liability and do not have a material impact on net income.
(c)During 2006, Xcel Energy qualified these contracts underNSP-Minnesota currently applies the normal purchase exception. Based on this qualification, theexception to qualifying PPAs. Balance relates to specific contracts are no longer adjusted tothat were previously recognized at fair value prior to applying the normal purchase exception, and the previous carrying value of these contracts will beare being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.
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Changes in Level 3 commodity derivatives for the three and nine months ended Sept. 30, 2022 and 2021:derivatives:
Three Months Ended Sept. 30Three Months Ended June 30
(Millions of Dollars)(Millions of Dollars)20222021(Millions of Dollars)20232022
Balance at July 1$230 $92 
Purchases/Issuances (a)
— — 
Balance at April 1Balance at April 1$46 $76 
Purchases (a)
Purchases (a)
97 158 
Settlements (a)
Settlements (a)
(88)(40)
Settlements (a)
(15)(73)
Net transactions recorded during the period:Net transactions recorded during the period:Net transactions recorded during the period:
Gains recognized in earnings (b)
Gains recognized in earnings (b)
15 23 
Gains recognized in earnings (b)
12 41 
Net gains recognized as regulatory assets and liabilities (a)
35 15 
Balance at Sept. 30$192 $90 
Net (losses) gains recognized as regulatory assets and liabilities (a)
Net (losses) gains recognized as regulatory assets and liabilities (a)
(23)28 
Balance at June 30Balance at June 30$117 $230 
Nine Months Ended Sept. 30Six Months Ended June 30
(Millions of Dollars)(Millions of Dollars)20222021(Millions of Dollars)20232022
Balance at Jan. 1Balance at Jan. 1$56 $(11)Balance at Jan. 1$107 $56 
Purchases/Issuances (a)
157 54 
Purchases (a)
Purchases (a)
97 157 
Settlements (a)
Settlements (a)
(180)(66)
Settlements (a)
(28)(92)
Net transactions recorded during the period:Net transactions recorded during the period:Net transactions recorded during the period:
Gains recognized in earnings (b)
106 86 
Net gains recognized as regulatory assets and liabilities (a)
53 27 
Balance at Sept. 30$192 $90 
(Losses) gains recognized in earnings (b)
(Losses) gains recognized in earnings (b)
(2)91 
Net (losses) gains recognized as regulatory assets and liabilities (a)
Net (losses) gains recognized as regulatory assets and liabilities (a)
(57)18 
Balance at June 30Balance at June 30$117 $230 
(a)Relates primarily to FTR instruments administered by MISO (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income.MISO.
(b)Relates to commodity trading and is subject to substantial offsetting losses ofand gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement.
NSP-Minnesota recognizes transfers between levels as of the beginning of each period. There were no transfers of amounts between levels for derivative instruments See above tables for the nine months ended Sept. 30, 2022income statement impact of derivative activity, including commodity trading gains and 2021.losses.
Fair Value of Long-Term Debt
OtherAs of June 30, 2023, other financial instruments for which the carrying amount did not equal fair value:
Sept. 30, 2022Dec. 31, 2021June 30, 2023Dec. 31, 2022
(Millions of Dollars)(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portionLong-term debt, including current portion$6,941 $5,881 $6,747 $7,761 Long-term debt, including current portion$7,328 $6,368 $6,942 $5,995 
Fair value of NSP-Minnesota’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of Sept.June 30, 20222023 and Dec. 31, 20212022, and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.
8. Benefit Plans and Other Postretirement Benefits
Components of Net Periodic Benefit Cost
Three Months Ended Sept. 30Three Months Ended June 30
20222021202220212023202220232022
(Millions of Dollars)(Millions of Dollars)Pension BenefitsPostretirement Health
Care Benefits
(Millions of Dollars)Pension BenefitsPostretirement Health
Care Benefits
Service costService cost$$$— $— Service cost$$$— $— 
Interest cost (a)
Interest cost (a)
— — 
Interest cost (a)
— 
Expected return on plan assets (a)
Expected return on plan assets (a)
(12)(13)— — 
Expected return on plan assets (a)
(11)(12)— — 
Amortization of prior service credit (a)
— — (1)— 
Amortization of net loss (a)
Amortization of net loss (a)
— 
Amortization of net loss (a)
— — 
Settlement charge (b)
29 23 — — 
Net periodic benefit costNet periodic benefit cost36 33 — — Net periodic benefit cost— 
Effects of regulationEffects of regulation(32)(28)— — Effects of regulation— — — 
Net benefit cost recognized for financial reportingNet benefit cost recognized for financial reporting$$$— $— Net benefit cost recognized for financial reporting$$$$— 
Nine Months Ended Sept. 30Six Months Ended June 30
20222021202220212023202220232022
(Millions of Dollars)(Millions of Dollars)Pension BenefitsPostretirement Health
Care Benefits
(Millions of Dollars)Pension BenefitsPostretirement Health
Care Benefits
Service costService cost$20 $22 $— $— Service cost$10 $14 $— $— 
Interest cost (a)
Interest cost (a)
19 19 
Interest cost (a)
18 12 
Expected return on plan assets (a)
Expected return on plan assets (a)
(36)(39)— — 
Expected return on plan assets (a)
(23)(24)— — 
Amortization of prior service credit (a)
Amortization of prior service credit (a)
— — (2)(2)
Amortization of prior service credit (a)
— — — (1)
Amortization of net loss (a)
Amortization of net loss (a)
18 26 
Amortization of net loss (a)
12 — — 
Settlement charge (b)
Settlement charge (b)
28 23 — — 
Settlement charge (b)
— (1)— — 
Net periodic benefit costNet periodic benefit cost49 51 — — Net periodic benefit cost11 13 — 
Effects of regulationEffects of regulation(31)(30)— — Effects of regulation— — 
Net benefit cost recognized for financial reportingNet benefit cost recognized for financial reporting$18 $21 $— $— Net benefit cost recognized for financial reporting$16 $14 $$— 
(a)The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.
(b)AIn the six months ended June 30, 2022, Xcel Energy recognized $1 million in settlement charge is required whentrue-ups related to the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In the thirdfourth quarter of 2022 and 2021 as a result of lump-sum distributions during the 2022 and 2021 plan years, NSP-Minnesota recorded pension settlement charges of $29 million and $23 million, respectively, which were not recognized in earnings due to the effects of rate making.2021.
In January 2022,2023, contributions oftotaling $50 million were made across four of Xcel Energy’s pension plans, of which $5$23 million was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2022.2023.

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9. Commitments and Contingencies
The following includes commitments, contingencies and unresolved contingencies that are material to NSP-Minnesota’s financial position.
Legal
NSP-Minnesota is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories.
In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Legal fees are generally expensed as incurred.
Rate Matters and Other
NSP-Minnesota is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the consolidated financial statements.
Sherco In 2018, NSP-Minnesota and SMMPA (Co-owner of Sherco Unit 3) reached a settlement with GE related to a 2011 incident, which damaged the turbine at Sherco Unit 3 and resulted in an extended outage for repair. NSP-Minnesota notified the MPUC of its proposal to refund settlement proceeds to customers through the fuel clause adjustment.
In March 2019, the MPUC approved NSP-Minnesota’s settlement refund proposal. Additionally, the MPUC decided to withhold any decision as to NSP-Minnesota’s prudence in connection with the incident at Sherco Unit 3 until after conclusion of an appeal pending between GE and NSP-Minnesota’s insurers. In February 2020, the Minnesota Court of Appeals affirmed the district court’s judgment in favor of GE. In March 2020, NSP-Minnesota’s insurers filed a petition seeking additional review by the Minnesota Supreme Court.
In April 2020, the Minnesota Supreme Court denied the insurers’ petition for further review, ending the litigation.
In January 2021, the OAG and DOC recommended that NSP-Minnesota refund approximately $17 million of replacement power costs previously recovered through the fuel clause adjustment. NSP-Minnesota subsequently filed its response, asserting that it acted prudently in connection with the Sherco Unit 3 outage, the MPUC has previously disallowed $22 million of related costs and no additional refund or disallowance is appropriate.
In July 2022, the MPUC referred the matter to the Office of Administrative Hearings to conduct a contested case on the prudence of the replacement power costs incurred by NSP-Minnesota. In June 2023, NSP-Minnesota and the DOC filed direct testimony. The DOC changed its recommendation to a refund of either $58 million or $72 million based on methodologies that do not account for prior disallowances or other amounts returned to customers plus interest. No other party filed direct testimony. A final decision by the MPUC is expected in mid-2023.mid-2024. A loss related to this matter is deemed remote.
MISO ROE ComplaintsIn November 2013 and February 2015, customer groups filed two ROE complaints against MISO TOs, which includes NSP-Minnesota and NSP-Wisconsin. The first complaint requested a reduction in base ROE transmission formula rates from 12.38% to 9.15% for the time period of Nov. 12, 2013 to Feb. 11, 2015, and removal of ROE adders (including those for RTO membership). The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38% to 8.67%.
The FERC subsequently issued various related orders (including Opinion Nos. 569, 569A and 569B) related to ROE methodology/calculations and timing. NSP-Minnesota has processed refunds to customers for applicable complaint periods based on the ROE in the most recent applicable opinions.
The MISO TOs and various other parties have filed petitions for review of the FERC’s most recent applicable opinions at the D.C. Circuit. In August 2022, the D.C. Circuit ruled that FERC had not adequately supported its conclusions, vacated FERC’s related orders, and remanded the issue back to FERC for further proceedings, which remain pending. Additional exposure, if any related to this matter is expected to be immaterial.
Environmental
MGP, Landfill and Disposal Sites
NSP-Minnesota is investigating, remediating or performing post-closure actions at seven MGP, landfill or other disposal sites across its service territories.
NSP-Minnesota has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.
Environmental Requirements — Water and Waste
Coal Ash Regulation NSP-Minnesota’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste. Under the CCR Rule, utilities are required to complete groundwater sampling around their CCRapplicable landfills and surface impoundments. Currently, NSP-Minnesota has three regulated ash units in operation.
NSP-Minnesota is conducting groundwater sampling and monitoring and implementing assessment of corrective measures at certain CCR landfills and surface impoundments. No results above the groundwater protection standards in the rule were identified.
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Federal Clean Water Act Section 316(b) — The Federal Clean Water Act requires the EPA to regulate cooling water intake structures to assure they reflect the best technology available for minimizing impingement and entrainment of aquatic species. NSP-Minnesota estimates capital expenditures of approximately $36$45 million may be required to comply with the requirements. NSP-Minnesota anticipates these costs will be recoverable through regulatory mechanisms.
Monticello Tritium — Monticello regularly monitors onsite tritium levels (a weak radioactive isotope that is a byproduct of plant operations) from releases in groundwater monitoring wells onsite. In late 2022, Xcel Energy detected a release of tritium to groundwater and reported the event to the NRC and the State of Minnesota. Xcel Energy has completed repairs, replaced the source of the release and is in the process of mitigating the impact to groundwater, while continuing to monitor onsite wells and evaluating potential future actions for additional containment. The release does not represent a risk to human health or the environment.
Environmental Requirements — Air
Clean Air Act NOx Allowance Allocations —In June 2023, after disapproving state implementation plans, the EPA published final regulations under the "Good Neighbor" provisions of the Clean Air Act. The final rule applies to generation facilities in Minnesota, as well as other states outside of our service territory. The rule establishes an allowance trading program for NOx that will impact NSP-Minnesota’s fossil fuel-fired electric generating facilities. Applicable facilities will have to secure additional allowances, install NOx controls and/or develop a strategy of operations that utilizes the existing allowance allocations. Guidelines are also established for allowance banking and emission limit backstops.
16While the financial impacts of the final rule are uncertain and dependent on market forces and anticipated generation, NSP-Minnesota anticipates the annual costs could be significant, but would be recoverable through regulatory mechanisms.
NSP-Minnesota has joined other impacted companies in litigation challenging the EPA’s disapproval of Minnesota’s state implementation plan. Currently, the regulation is under a judicial stay for Minnesota and not applicable to NSP-Minnesota until litigation concludes.


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Leases
NSP-Minnesota evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset.
Components of lease expense:
Three Months Ended Sept. 30Three Months Ended June 30
(Millions of Dollars)(Millions of Dollars)20222021(Millions of Dollars)20232022
Operating leasesOperating leasesOperating leases
PPA capacity paymentsPPA capacity payments$25 $17 PPA capacity payments$24 $24 
Other operating leases (a)
Other operating leases (a)
21
Other operating leases (a)
52
Total operating lease expense (b)
Total operating lease expense (b)
$27 $18 
Total operating lease expense (b)
$29 $26 
(a)Includes $1 million and $0 million of short-term lease expense of $2 million and $1 million for 20222023 and 2021,2022, respectively.
(b)PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power.

Nine Months Ended Sept. 30Six Months Ended June 30
(Millions of Dollars)(Millions of Dollars)20222021(Millions of Dollars)20232022
Operating leasesOperating leasesOperating leases
PPA capacity paymentsPPA capacity payments$74 $53 PPA capacity payments$49 $49 
Other operating leases (a)
Other operating leases (a)
66
Other operating leases (a)
94
Total operating lease expense (b)
Total operating lease expense (b)
$80 $59 
Total operating lease expense (b)
$58 $53 
(a)Includesshort-term lease expenseexpense of $2$3 million for 2022 and $1 million for 2021.2023 and 2022, respectively.
(b)PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power.
Commitments under operating leases as of Sept.June 30, 2022:2023:
(Millions of Dollars)(Millions of Dollars)PPA Operating
Leases
Other Operating
Leases
Total
Operating
Leases
(Millions of Dollars)PPA Operating
Leases
Other Operating
Leases
Total
Operating
Leases
Total minimum obligationTotal minimum obligation$342 $67 $409 Total minimum obligation$269 $131 $400 
Interest component of obligationInterest component of obligation(22)(10)(32)Interest component of obligation(14)(54)(68)
Present value of minimum obligationPresent value of minimum obligation$320 $57 377 Present value of minimum obligation$255 $77 332 
Less current portionLess current portion(97)Less current portion(97)
Noncurrent operating lease liabilitiesNoncurrent operating lease liabilities$280 Noncurrent operating lease liabilities$235 
Variable Interest Entities
Under certain PPAs, NSP-Minnesota purchases power from IPPs for which NSP-Minnesota is required to reimburse fuel costs, or to participate in tolling arrangements under which NSP-Minnesota procures the natural gas required to produce the energy that they purchase. These specific PPAs create a variable interest in the IPP.
NSP-Minnesota had approximately 1,322 MW1,347 MW and 1,3471,322 MW of capacity under long-term PPAs at Sept.June 30, 20222023 and Dec. 31, 2021,2022, respectively, with entities that have been determined to be variable interest entities. NSP-Minnesota concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. The PPAs have expiration dates through 2039.

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10. Other Comprehensive Income (Loss)Loss
Changes in accumulated other comprehensive income (loss),loss, net of tax, for the three and nine months ended Sept. 30, 2022 and 2021:tax:
Three Months Ended Sept. 30, 2022Three Months Ended Sept. 30, 2021
(Millions of Dollars)Gains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotalGains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotal
Accumulated other comprehensive loss at July 1$(17)$(3)$(20)$(18)$(3)$(21)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)
— — — — — — 
Accumulated other comprehensive loss at Sept. 30$(17)$(3)$(20)$(18)$(3)$(21)
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
(Millions of Dollars)Gains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotalGains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotal
Accumulated other comprehensive loss at April 1$(19)$(2)$(21)$(17)$(3)$(20)
Other comprehensive gain before reclassifications— — — — 
Accumulated other comprehensive loss at June 30$(13)$(2)$(15)$(17)$(3)$(20)
Nine Months Ended Sept. 30, 2022Nine Months Ended Sept. 30, 2021
(Millions of Dollars)Gains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotalGains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotal
Accumulated other comprehensive loss at Jan. 1$(17)$(3)$(20)$(19)$(3)$(22)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)
— — — — 
Accumulated other comprehensive loss at Sept. 30$(17)$(3)$(20)$(18)$(3)$(21)
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
(Millions of Dollars)Gains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotalGains and Losses on Cash Flow HedgesDefined Benefit Pension and Postretirement ItemsTotal
Accumulated other comprehensive loss at Jan. 1$(16)$(2)$(18)$(17)$(3)$(20)
Other comprehensive gain before reclassifications— — — — 
Accumulated other comprehensive loss at June 30$(13)$(2)$(15)$(17)$(3)$(20)
(a)Included in interest charges.
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11. Segment Information
NSP-Minnesota evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.
NSP-Minnesota has the following reportable segments:
Regulated Electric — The regulated electric utility segment generates electricity which is transmitted and distributed in Minnesota, North Dakota and South Dakota. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes NSP-Minnesota’s wholesale commodity and trading operations.
Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Minnesota and North Dakota.
NSP-Minnesota also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments primarily include appliance repair services, non-utility real estate activities and revenues associated with processing solid waste into refuse-derived fuel.
Asset and capital expenditure information is not provided for NSP-Minnesota’s reportable segments. As an integrated electric and natural gas utility, NSP-Minnesota operates significant assets that are not dedicated to a specific business segment. Reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.
Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.
NSP-Minnesota’s segment information:
Three Months Ended Sept. 30
(Millions of Dollars)20222021
Regulated Electric
Total revenues (a)
$1,730 $1,477 
Net income275 245 
Regulated Natural Gas
Operating revenues (b)
$102 $70 
 Intersegment revenue— 
   Total revenues$102 $71 
Net loss(12)(2)
All Other
Total revenues$12 $10 
Net income
Consolidated Total
Operating revenues (a)(b)
$1,844 $1,558 
Reconciling eliminations— (1)
   Total revenues$1,844 $1,557 
Net income269 248 
Three Months Ended June 30
(Millions of Dollars)20232022
Regulated Electric
Total revenues (a)
$1,189 $1,324 
Net income134 113 
Regulated Natural Gas
Operating revenues (b)
$98 $167 
 Intersegment revenue— 
Total revenues$98 $168 
Net (loss) income(9)
All Other
Total revenues$12 $11 
Net loss
Consolidated Total
Operating revenues (a)(b)
$1,299 $1,503 
Reconciling eliminations— (1)
Total operating revenues$1,299 $1,502 
Net income127 118 
(a)    Operating revenues include $132$113 million and $127$133 million of affiliate electric revenue for the three months ended Sept.June 30, 20222023 and 2021.2022.
(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended Sept.June 30, 20222023 and 2021.2022.
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Nine Months Ended Sept. 30Six Months Ended June 30
(Millions of Dollars)(Millions of Dollars)20222021(Millions of Dollars)20232022
Regulated ElectricRegulated ElectricRegulated Electric
Total revenues (a)
Total revenues (a)
$4,308 $3,842 
Total revenues (a)
$2,445 $2,578 
Net incomeNet income486 464 Net income245 211 
Regulated Natural GasRegulated Natural GasRegulated Natural Gas
Operating revenues (b)
Operating revenues (b)
$703 $353 
Operating revenues (b)
$498 $601 
Intersegment revenue Intersegment revenue Intersegment revenue
Total revenuesTotal revenues$704 $354 Total revenues$499 $602 
Net incomeNet income21 18 Net income21 33 
All OtherAll OtherAll Other
Total operating revenues$33 $29 
Total revenuesTotal revenues$22 $21 
Net incomeNet incomeNet income— 
Consolidated TotalConsolidated TotalConsolidated Total
Operating revenues (a)(b)
Operating revenues (a)(b)
$5,045 $4,225 
Operating revenues (a)(b)
$2,966 $3,201 
Reconciling eliminationsReconciling eliminations(1)(1)Reconciling eliminations(1)(1)
Total operating revenuesTotal operating revenues$5,044 $4,224 Total operating revenues$2,965 $3,200 
Net incomeNet income514 489 Net income266 245 
(a)    Operating revenues include $394$238 million and $373$262 million of affiliate electric revenue for the ninesix months ended Sept.June 30, 20222023 and 2021.2022.
(b)    Operating revenues include an immaterial amount of affiliate gas revenue for the ninesix months ended Sept.June 30, 20222023 and 2021.2022.
ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Discussion of financial condition and liquidity for NSP-Minnesota is omitted per conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q for wholly owned subsidiaries. It is replaced with management’s narrative analysis of the results of operations set forth in General Instruction H(2)(a) of Form 10-Q for wholly owned subsidiaries (reduced disclosure format).
Non-GAAP Financial Measures
The following discussion includes financial information prepared in accordance with GAAP, as well as certain non-GAAP financial measures such as ongoing earnings.earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are adjusted fromadjusts measures calculated and presented in accordance with GAAP.
NSP-Minnesota’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation, and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.
Earnings Adjusted for Certain Items (Ongoing Earnings)
Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items.
We use this non-GAAP financial measure to evaluate and provide details of NSP-Minnesota’s core earnings and underlying performance. We believe this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of NSP-Minnesota. For the three and ninesix months ended Sept.June 30, 20222023 and 2021,2022, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings.
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Results of Operations
NSP-Minnesota’s net income was approximately $514$266 million for the ninesix months ended Sept.June 30, 20222023 compared with approximately $489$245 million for the prior year. The increase is primarily due to regulatory rate outcomes, partially offsetdriven by increased depreciation, O&M expenses and a Winter Storm Uri cost disallowance.electric infrastructure investment (non-fuel riders).
Electric Margin
Electric margin is presented as electric revenues less electric fuel and purchased power expenses. Expenses incurred for electric fuel and purchased power are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.
Electric revenues and fuel and purchased power expenses are impacted by fluctuations in the price of natural gas, coal and uranium. However, these price fluctuations generally have minimal earnings impact on earnings due to fuel recovery mechanisms. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes.
Electric revenues, fuel and purchased power and electric margin and explanation of the changes are listed as follows:margin:
Nine Months Ended Sept. 30Six Months Ended June 30
(Millions of Dollars)(Millions of Dollars)20222021(Millions of Dollars)20232022
Electric revenuesElectric revenues$4,308 $3,842 Electric revenues$2,445 $2,578 
Electric fuel and purchased powerElectric fuel and purchased power(1,857)(1,494)Electric fuel and purchased power(1,023)(1,107)
Electric marginElectric margin$2,451 $2,348 Electric margin$1,422 $1,471 
(Millions of Dollars)NineSix Months Ended Sept.June 30, 20222023 vs. 20212022
Regulatory rate outcome (Minnesota)$125 
Non-fuel riders27 
Conservation and demand side revenues (offset in expense)27 $
Wholesale transmission (net)(31)23 
PTCs flowed back to customers (offset by lower ETR)(82)(18)
Proprietary commodity trading, net of sharingRegulatory rate outcomes (Minnesota, South Dakota) (b)
(15)
Interchange agreement billings with NSP-Wisconsin(12)
Non-fuel riders24 
Sales and demand (net) (a)
(16)15 
Other (net)(1)(12)
Total increasedecrease$103 (49)
(a)Includes $12Sales excludes weather impact, net of sales true-up mechanism in Minnesota.
(b)Decrease primarily relates to the Minnesota Electric Rate Case (approximately $60 million of trading— see Public Utility Regulation). Reduced electric margin recognizedwas offset by corresponding reductions in the first quarter of 2021, driven by market changes associated with Winter Storm Uri.depreciation expense, taxes (other than income taxes) and other items.
Natural Gas Margin
Natural gas margin is presented as natural gas revenues less the cost of natural gas sold and transported. Expenses incurred for the cost of natural gas sold are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are generally offset in operating revenues.
Natural gas expense varies with changing sales and the cost of natural gas. However, fluctuations in the cost of natural gas generally have minimal earnings impact due to cost recovery mechanisms.
Natural gas revenues, cost of natural gas sold and transported and margin and explanationmargin:
Six Months Ended June 30
(Millions of Dollars)20232022
Natural gas revenues$498 $601 
Cost of natural gas sold and transported(342)(445)
Natural gas margin$156 $156 
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Table of the changes are listed as follows:
Nine Months Ended Sept. 30
(Millions of Dollars)20222021
Natural gas revenues$703 $353 
Cost of natural gas sold and transported(510)(187)
Natural gas margin$193 $166 
Contents
(Millions of Dollars)NineSix Months Ended Sept.June 30, 20222023 vs. 20212022
Regulatory rate outcomes (Minnesota, North Dakota)$19 
Estimated impact of weather$
Conservation revenue (offset by expenses)(7)
Infrastructure and integrity riders64 
Winter Storm Uri disallowance(16)
Other (net)13 
Total increase$27 
Non-Fuel Operating Expenses and Other Items
O&M Expenses — O&M expenses increased $16$41 million year-to-date. The increase is primarily due to generation outages; additional investments in technologybad debt expenses; and customer programs, higher costs for vegetation management, storms and inflation. These increases were partially offset by a reduction in employee benefit costs.the impact of inflationary pressures, including labor increases.
Depreciation and Amortization Depreciation and amortization expense increased $70decreased $39 million year-to-date. The increasedecrease was primarily drivendue to depreciation life extensions implemented in the Minnesota Electric Rate Case ($48 million), partially offset by several wind farms going into service and normal system expansion.
Other (Expense)Taxes (other than Income Taxes) — Other (expense) incomeTaxes decreased $13$31 million year-to-date, largelyyear-to-date. The decrease is primarily associated with $25 million of deferrals related to rabbi trust performance, which is primarily offset in O&M expenses (employee benefit costs).the Minnesota Electric Rate Case.
Interest Charges — Interest charges increased $14$19 million year-to-date, largely due to higher interest rates and increased long-term debt levels to fund capital investments.
Income TaxesIncome tax benefit increased $53 million year-to-date. The increase was primarily driven by increased wind PTCs due to several new wind farms going into service and greater production at existing wind farms. Wind PTCs are credited to customers (recorded as a reduction to revenue) and do not have a material impact on net income.
See Note 6 to the consolidated financial statements for further information.
Public Utility Regulation and Other
The FERC and various state and local regulatory commissions regulate NSP-Minnesota. NSP-Minnesota is subject to rate regulation by state utility regulatory agencies, which have jurisdiction with respect to the rates of electric and natural gas distribution companies in Minnesota, North Dakota and South Dakota.
Rates are designed to recover plant investment, operating costs and an allowed return on investment. NSP-Minnesota requests changes in utility rates through commission filings. Changes in operating costs can affect NSP-Minnesota’s financial results, depending on the timing of rate cases and implementation of final rates. Other factors affecting rate filings are new investments, sales, conservation and demand side management efforts, and the cost of capital.
In addition, the regulatory commissions authorize the ROE, capital structure and depreciation rates in rate proceedings. Decisions by these regulators can significantly impact NSP-Minnesota’s results of operations.
Except to the extent noted below, the circumstances set forth in Public Utility Regulation included in Item 7 of NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 20212022 appropriately represent, in all material respects, the current status of public utility regulation and are incorporated herein by reference.


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Pending and Recently Concluded Regulatory Proceedings
2022 Minnesota Electric Rate Case — InIn October 2021, NSP-Minnesota filed a three-year electric rate case with the MPUC.Minnesota Public Utilities Commission (MPUC). The rate case is based on a requested ROE of 10.2%, a 52.5% equity ratio and forward test years.
The request is detailed as follows:
(Amounts in Millions, Except Percentages)202220232024Total
Annual rate increase requested$396 $150 $131 $677 
Increase percentage12.2 %4.8 %4.2 %21.2 %
Rate base$10,931 $11,446 $11,918 N/A
In December 2021, the MPUC approved interim rates, subject to refund, of $247 million, effective Jan. 1, 2022. On Sept. 30,In November 2022, NSP-Minnesota requested an incremental increaserevised its rate request to interim rates of $122$498 million effective Jan. 1, 2023. On Oct. 21, 2022, intervening parties to the rate case filed comments recommending the MPUC deny NSP-Minnesota’s request. A MPUC decision is expected in late 2022.
In October 2022, nine parties filed testimony. The DOC, OAG, XLI, CUB and JSC were the only parties to quantify recommended financial adjustments. XLI recommended $112 million in proposed adjustments, based on reducing ROE, reducing recovery of incentive compensation and not including the prepaid pension asset in rate base. CUB recommended adjustments based on reducing ROE. Other parties provided specific issue recommendations.
Proposed DOC modifications to NSP-Minnesota’s request:
(Millions of Dollars)202220232024
NSP-Minnesota’s filed base revenue request$396 $546 $677 
Recommended adjustments:
Rate base and rate of return (a)
(71)(58)(57)
MISO capacity credits(55)(94)(94)
Monticello and wind farm life extension(21)(54)(51)
PTC and ND ITC forecast(28)(40)(43)
Property tax(14)(22)(32)
Prepaid pension asset and liability(13)(21)(32)
O&M expenses(18)(26)(29)
Other, net(48)(57)(65)
Total adjustments(268)(372)(403)
Total proposed revenue change$128 $174 $274 
(a)Included in the rate base and rate of return adjustments is an annual proposed increase in the cost of debt.
Positions on NSP-Minnesota’s filed rate request:
Recommended PositionDOCXLICUBJSC
ROE9.25 %9.17 %8.80-9.00 %9.06 %
Equity52.5 %N/AN/AN/A
Next steps in the procedural schedule are expected to be as follows:
Rebuttal testimony: Nov. 8, 2022.over three years.
In March 2023, the ALJ’s report was issued, which included an estimatedHearing: Dec. 13-16, 2022.
ALJ Report: March 31, 2023.
MPUC Order: June 30, 2023.
2022 Minnesota Natural Gas Rate CaseIn November 2021, NSP-Minnesota filed a request with the MPUC for an annual natural gas rate increase of $36approximately $386 million or 6.6%. The filing isover three years from 2022-2024, based on a 2022 forecast test year and includes a requested ROE of 10.5%,9.87% and an equity ratio of 52.5% and a rate base of $934 million. .
In December 2021,July 2023, the MPUC approved an interima three-year rate increase of $25approximately $311 million subject to refund, effective Jan. 1, 2022.
In October 2022, NSP-Minnesota and various parties filed an uncontested settlement, which includes the following key terms:
Base rate revenue increase of $21 million, with a true up to weather normalized actual sales for 2022.
Revenue decoupling mechanism.
Symmetrical property tax true-up.
ROE of 9.57%.
Equity ratio of 52.5%.
A hearing is scheduled for the fourth quarter of 2022 and a MPUC order is expected in the first half of 2023.
2021 North Dakota Natural Gas Rate Case — In September 2021, NSP-Minnesota filed a request with the NDPSC for a natural gas rate increase of $7 million, or 10.5%. The filing is2022-2024, based on a requested ROE of 10.5%,9.25% and an equity ratio of 52.54%,52.5%. The MPUC also approved a 2022 forecast test year and a rate basecontinuation of $124 million. Interim ratesthe sales true-up mechanism.
NSP-Minnesota plans to file for reconsideration of $7 million, subjectthe decision in August 2023. The MPUC will have 60 days to refund,respond to the reconsideration request.
Modifications to NSP-Minnesota’s request were implemented on Nov. 1, 2021.as follows:
In May 2022, NSP-Minnesota and NDPSC Staff reached a natural gas settlement, which reflects a rate increase of $5 million, based on a 9.8% ROE and 52.54% equity ratio. A NDPSC decision is pending.
(Millions of Dollars)202220232024
NSP-Minnesota’s revised revenue request$233 $328 $498 
Sherco 3 and A.S. King moved to new docket— — (35)
New property tax forecast— (11)(23)
NSP-Minnesota’s revised revenue request at Oral Arguments233 317 440 
Impact of ROE change(77)(82)(85)
Operating & maintenance expenses(27)(29)(32)
Production tax credit forecast update with tracker(28)(1)(1)
Prepaid and accrued pension(9)(10)(11)
Other, net(5)— 
Total proposed revenue change$101 $190 $311 
Annual incremental revenue change$101 $89 $121 
Annual percentage increase3.1 %2.7 %3.7 %
2022 South Dakota Electric Rate Case In June 2022, NSP-Minnesota filed a South Dakota electric rate case (first since 2014) seeking a revenue increase of approximately $44 million. The filing iswas based on a 2021 historic test year adjusted for certain known and measurable changes, for 2022 and 2023, a requested ROEreturn on equity of 10.75%, rate base of approximately $947 million and an equity ratio of 53%. Final
In June 2023, SDPUC Staff approved an uncontested settlement agreement. Key terms of the decision include:
rates are expectedIncrease in base rate and infrastructure rider revenue of $14 million.
Decreases in depreciation expense of $7 million (change in depreciable lives) and nuclear decommissioning expense of $5 million from NSP-Minnesota’s rate request.
Confidential equity ratio and ROE.
2022 Upper Midwest RFP — In August 2022, NSP-Minnesota launched a RFP for 900 MW of solar or solar-plus-storage hybrid resources to be effective income online by the first quarterend of 2025, including up to 300 MW of capacity to reuse the Sherco Unit 2 interconnection rights when the coal facility retires at the end of 2023.
Wind RepoweringNSP-Minnesota completed its bid evaluation process in December 2022. In January 2021, the MPUC approved NSP-Minnesota’s request for the repowering of 651 MW of owned wind projects. Two of the four repowering projects, where construction has not yet begun (in-service dates in 2025), now expect costs in excess of the original approval. While the capital costs have increased, the passage of the IRA and other changes result in a levelized cost of energy that is approximately 30% lower than the original approval. In October 2022,May 2023, NSP-Minnesota filed a request withrecommended portfolio, which proposed an additional 250 MW of self-build solar generation at the MPUC seeking approvalsite of our retiring Sherco coal units and a 100 MW solar PPA located in Wisconsin as part of the higher capital costs for these repowering projects.
Wind PPA Buyout — In July 2022, NSP-Minnesota requested approval from theresource plan RFP. A MPUC for updated agreements with ALLETE Clean Energy to purchase the repowered 100 MW Northern Wind Facility and 22 MW Rock Aetna Facility. In October 2022, the MPUC approved NSP-Minnesota’s updated acquisition agreements, which included an increase in the purchase price. The price increasedecision is more than offset by the passage of the IRA, resulting in greater savings for customers than the original approval.expected later this year.

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2022 Minnesota Electric Vehicle Proposal — In August 2022, NSP-Minnesota filed a request with the MPUC for approval of approximately $320 million of capital investments (2022 through 2026) to support a public charging network, electric school bus pilot, and other expansions and modifications to its residential and commercial electric vehicle programs. A MPUC decision is expected
In February 2023, other parties to the contested proceeding filed their direct testimony ranging in 2023.levels of support/opposition to the proposals. In March 2023, the ALJ granted NSP-Minnesota’s request for a 60-day stay in the case so that the parties could pursue potential settlement.
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Sherco Solar Proposal
In September 2022, the MPUC approved NSP-Minnesota’s proposal to add 460 MW of solar facilities at the Sherco site. The project is expected to cost approximately $690 million (two phases to be completed in 2024 and 2025). As a result of the IRA, the levelized cost of the project is expected to be approximately 30% lower than previously estimated.
2022 RES Electric Rider — In November 2021,June 2023, NSP-Minnesota filed the RES Rider. In September 2022, thea request to withdraw its request, which is pending MPUC approved the requested amount of $264 million, which includes a true-up (2020 and 2021 riders) of $154 million and the 2022 requested amount of $110 million.approval.
2022 GUIC Natural Gas Rider — In October 2021, NSP-Minnesota filed the GUIC Rider for an amount of $27 million. A MPUC decision is pending.
2021 GUIC Natural Gas Rider — In October 2020, NSP-Minnesota filed the GUIC Rider for an amount of $27 million. A MPUC decision is pending.
2022 TCR Electric Rider — In November 2021, NSP-Minnesota filed the TCR Rider for an amount of $105 million. A MPUC decision is pending.
Nuclear Power Operations
NSP-Minnesota owns two nuclear generating plants: the Monticello plant and the Prairie Island plant. See Note 10 to the consolidated financial statements of NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 20212022 for further information. The circumstances set forth in Nuclear Power Operations included in Item 7 of NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2021,2022, appropriately represent, in all material respects, the current status of nuclear power operations, and are incorporated by reference.operations.
Other
Supply Chain
NSP-Minnesota’s ability to meet customer energy requirements, respond to storm-related disruptions and execute our capital expenditure program are dependent on maintaining an efficient supply chain. Manufacturing processes have experienced disruptions related to scarcity of certain raw materials and interruptions in production and shipping. For example, availability of certain types of transformers has been significantly impacted and in some cases may result in delays in new customer connections as we work to address the shortage. These disruptions have been further exacerbated by inflationary pressures, labor shortages and the impact of international conflicts/issues. NSP-Minnesota continues to monitor the situation as it remains fluid and seeks to mitigate the impacts by securing alternative suppliers, modifying design standards, and adjusting the timing of work.
Advanced Metering Infrastructure ImplementationElectric Meters and Transformers
Supply chain issues associated with semi-conductors have delayed the availability of advanced infrastructure electric meters, which has led to a reduced number of meters deployed in 2022. Impacts toWhile there have been improvements in the 2023 deployment schedule are currently being evaluated.
plan, the supply chain challenges persist. As a result of delays, NSP-Minnesota projects impacts to deployment schedules into 2025.
Additionally, the availability of certain transformers is an industry-wide issue that has significantly impacted and in some cases may result in delays in projects and new customer connections. Proposed governmental actions related to transformer efficiency standards may compound these delays in the future. NSP-Minnesota continues to seek alternative suppliers and prioritize work plans to mitigate impacts of supply constraints.
Solar Resources
In April 2022, the U.S. Department of Commerce initiated an anti-circumvention investigation that would subject CSPV solar panels and cells imported from Malaysia, Vietnam, Thailand, and Cambodia with potential incremental tariffs ranging from 50% to 250%. These countries account for more than 80% of CSPV panel imports.
Since that time, anAn interim stay on tariffs has been issued and many significant solar projects have resumed with modified costs and projected in-service dates, including the Sherco Solar facility in Minnesota which was recently approved by the MPUC.
MISO Capacity Credits
The NSP System offered 1,500 MW of excess capacity into the MISO planning resource auction for June 2022 through May 2023. Due tofacility. Further policy action, a projected overall capacity shortfallchange in the MISO region, the 1,500 MWs offered cleared the auction at maximum pricing and is expected to generate revenuesinterim stay of approximately $90 million in 2022 and approximately $60 million in 2023. During the three and nine months ended Sept. 30, 2022, the NSP System received approximately $40 million and $50 million, respectively, of capacity credits. These amounts will primarily be used to mitigate customer rate increases or returned through earnings sharingtariffs, or other mechanisms.
Inflation Reduction Act — In August 2022, the IRA was signed into law.
Key provisions impacting NSP-Minnesota include:
Extends current PTC and ITC for renewable technologies (e.g.restrictions on solar imports (i.e., wind and solar).
Restores full value of the PTC and ITC for qualifying facilities placed in-service after 2021.
Creates a PTC for solar, clean hydrogen and nuclear.
Establishes an ITC for energy storage, microgrids, interconnection facilities, etc.
Allows companies to monetize or sell credits to unrelated parties.
NSP-Minnesota anticipates the IRA will drive significant customer savings for both new and existing Company owned renewable projects, assuming appropriate regulatory mechanisms and development of a market for the sale of tax credits. The IRA is expected to allow NSP-Minnesota to monetize tax credits more efficiently with the incremental benefits passed through to customers.
The IRA creates a nuclear PTC beginning in 2024 that may also provide additional savings to NSP System customers, depending on locational marginal pricing, as well as constructive U.S. Treasury guidance regarding computation of the credits.
In addition, the IRA created a new corporate AMT. NSP-Minnesota does not anticipate AMT having a material cash impact based on current estimates and our interpretation of AMT application.
Winter Storm Uri
In February 2021, the United States experienced Winter Storm Uri. Extreme cold temperatures impacted certain operational assets as well as the availability of renewable generation. The cold weather also affected the country’s supply and demand for natural gas. These factors contributed to extremely high market prices for natural gas and electricity. As a result of implementation of the extremely high market prices, NSP-Minnesota incurred net natural gas, fuelUyghur Forced Labor Protection Act) or disruptions in solar imports from key suppliers could impact project timelines and purchased energy costs of approximately $230 million (largely deferred as regulatory assets).
costs.
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In 2021, the MPUC allowed recovery of $179 million of costs (with no financing charge) starting in September 2021, pending a prudency review. The C&I class ($82 million) will be recovered over 27 months and the residential class ($97 million) will be recovered over a 63-month recovery period.
In May 2022, the ALJs found the Winter Storm Uri fuel costs were prudently incurred and recommended no disallowances. In August 2022, the MPUC approved recovery of Uri storm costs with a $19 million disallowance.
Environmental
Clean Air Act
Power Plant Greenhouse Gas RegulationsIn April 2022May 2023, the EPA published proposed rules addressing control of CO2 emissions from the power sector. The rule proposed regulations for new natural gas generating units under the "Good Neighbor" provisions of the Clean Air Act.Act Section 111(b) and emission guidelines for existing coal and certain natural gas generation under Clean Air Action Section 111(d). The proposed rules impose a Federal Implementation Plancreate subcategories of coal units based on planned retirement date and subcategories of natural gas combustion turbines and combined cycle units based on utilization. The CO2 control requirements vary by subcategory. Until final rules are issued, it is not certain what the impact will be on NSP-Minnesota. NSP-Minnesota believes that establishes an allowance trading programthe cost of these initiatives or replacement generation would be recoverable through rates based on prior state commission practices.
Coal Ash Regulation
In May 2023, the EPA published proposed rules to regulate legacy CCR surface impoundments at inactive facilities and previously exempt areas where CCR was placed directly on land at regulated CCR facilities under the CCR Rule for NOx, potentially impacting NSP-Minnesota generating facilities. Facilities without NOx controls will havethe first time. The proposed rule would subject these areas to secure additional allowances, install NOx controls, or develop a strategythe CCR Rule requirements, including groundwater monitoring, corrective action, closure, and post-closure care requirements, among other requirements, with several of operations that utilizes the existing allowance allocations. deadlines accelerated.
The EPA has indicatedcommitted to a May 2024 effective date for those new rules. It is also anticipated that it intends for the rule to be final byEPA may issue other CCR proposed rules in 2023 that further expand the end of 2022 with initial applicability for the 2023 ozone season. While the financial impactsscope of the proposed regulationCCR Rule. Until final rules are uncertain,issued, it is not certain what the impact will be on NSP-Minnesota. NSP-Minnesota anticipatesbelieves that costs willthe cost of these initiatives would be recoverable through regulatory mechanisms.rates based on prior state commission practices.
CERCLAEmerging Contaminants of Concern
PFAS are man-made chemicals that are widely used in consumer products and can persist and bio-accumulate in the environment. NSP-Minnesota does not manufacture PFAS but because PFAS are so ubiquitous in products and the environment, it may impact our operations.
In September 2022, the EPA proposed to designate two types of PFAS as “hazardous substances” under the CERCLA, specifically perfluorooctanoic acid and perfluorooctanesulfonic acid. ThisCERCLA.
In March 2023, the EPA published a proposed rule that would establish enforceable drinking water standards for certain PFAS chemicals.
NSP-Minnesota provided comments related to both efforts described above through its regulatory coalitions. Final rules are expected in 2024. Costs are uncertain until a final rule is published.
The proposed rules could result in new obligations for investigation and cleanup wherever PFAS are foundcleanup. NSP-Minnesota is monitoring changes to be present.state laws addressing PFAS. The impact of these proposed regulations is uncertain.
Effluent Limitation Guidelines
In March 2023, the EPA released a proposed rule under the Clean Water Act, setting forth proposed Effluent Limitations Guidelines and Standards for steam generating coal plants. This proposed rule establishes more stringent wastewater discharge standards for bottom ash transport water, flue-gas desulfurization wastewater, and combustion residuals leachate from steam electric power plants, particularly coal-fired power plants. Comments to the proposed regulation may haveregulations were submitted on electric and gas utilitiesMay 30, 2023. The impact of these proposed regulations is currently uncertain.uncertain until a final rule is published
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Nuclear Fuel Supply
NSP-Minnesota has contracted for its 2023, 2024 and has its 2022 and 20232025 enriched nuclear material requirements, which are in various stages of processing in Canada, Europe and the United States. We will continue to monitor the evolving situation in Ukraine and its global impacts and will take necessary actions to ensure a secure supply of enriched nuclear material. NSP-Minnesota is scheduled to take delivery of approximately 30%26% of its average enriched nuclear material requirements from Russia through 2030. Given the evolving situation in Ukraine and its global impacts, NSP-Minnesota has entered into additional new contracts that cover potential supply interruptions of nuclear material from Russia.
ITEM 4 CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
NSP-Minnesota maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.
In addition, the disclosure controls and procedures ensure that information required to be disclosed is accumulated and communicated to management, including the CEO and CFO, allowing timely decisions regarding required disclosure.
As of Sept.June 30, 2022,2023, based on an evaluation carried out under the supervision and with the participation of NSP-Minnesota’s management, including the CEO and CFO, of the effectiveness of its disclosure controls and procedures, the CEO and CFO have concluded that NSP-Minnesota’s disclosure controls and procedures were effective.
Internal Control Over Financial Reporting
No changes in NSP-Minnesota’s internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, NSP-Minnesota’s internal control over financial reporting.
PART IIOTHER INFORMATION
ITEM 1 — LEGAL PROCEEDINGS
NSP-Minnesota is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation.
Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to, when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss.
For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Legal fees are generally expensed as incurred.
See Note 9 to the consolidated financial statements and Part I Item 2 for further information.
ITEM 1A — RISK FACTORS
NSP-Minnesota’s risk factors are documented in Item 1A of Part I of its Annual Report on Form 10-K for the year ended Dec. 31, 2021,2022, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the Form 10-K.
ITEM 5 — OTHER INFORMATION
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None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended June 30, 2023.

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ITEM 6 — EXHIBITS
* Indicates incorporation by reference
Exhibit NumberDescriptionReport or Registration StatementExhibit Reference
NSP-Minnesota Form 10-12G dated Oct. 5, 20003.01
NSP-Minnesota Form 10-K for the year ended Dec. 31, 20183.02
Xcel Energy Inc.NSP-Minnesota Form 8-K dated September 19, 2022May 8, 202399.024.01
101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.document
101.SCHInline XBRL Schema
101.CALInline XBRL Calculation
101.DEFInline XBRL Definition
101.LABInline XBRL Label
101.PREInline XBRL Presentation
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Northern States Power Company (a Minnesota corporation)
10/7/27/20222023By:/s/ BRIAN J. VAN ABEL
Brian J. Van Abel
Executive Vice President, Chief Financial Officer
(Duly AuthorizedPrincipal Accounting Officer and Principal Financial Officer)
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