Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | NORTHERN STATES POWER CO | |
Entity Central Index Key | 0001123852 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-31387 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1967505 | |
Entity Address, Address Line One | 414 Nicollet Mall | |
Entity Address, City or Town | Minneapolis | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55401 | |
City Area Code | 612 | |
Local Phone Number | 330-5500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating revenues | ||
Electric, non-affiliates | $ 1,024 | $ 925 |
Electric, affiliates | 115 | 110 |
Natural gas | 204 | 206 |
Other | 9 | 9 |
Total operating revenues | 1,352 | 1,250 |
Operating expenses | ||
Electric fuel and purchased power | 433 | 364 |
Cost of natural gas sold and transported | 125 | 125 |
Cost of sales — other | 5 | 6 |
Operating and maintenance expenses | 298 | 296 |
Conservation program expenses | 34 | 31 |
Depreciation and amortization | 221 | 202 |
Taxes (other than income taxes) | 69 | 69 |
Total operating expenses | 1,185 | 1,093 |
Operating income | 167 | 157 |
Other income (expense), net | 2 | (5) |
Allowance for funds used during construction — equity | 7 | 7 |
Interest charges and financing costs | ||
Interest charges — includes other financing costs of $2 and $2, respectively | 63 | 61 |
Allowance for funds used during construction — debt | (3) | (3) |
Total interest charges and financing costs | 60 | 58 |
Income before income taxes | 116 | 101 |
Income tax benefit | (12) | (6) |
Net income | $ 128 | $ 107 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Other financing costs | $ 2 | $ 2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Comprehensive income: | ||
Net income | $ 128 | $ 107 |
Derivative instruments: | ||
Reclassification of losses to net income, net of tax of $— and $—, respectively | 1 | 0 |
Total other comprehensive income | 1 | 0 |
Total comprehensive income | $ 129 | $ 107 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Reclassification of losses on derivatives to net income, tax | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income | $ 128 | $ 107 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 223 | 204 |
Nuclear fuel amortization | 30 | 33 |
Deferred income taxes | (8) | (15) |
Allowance for equity funds used during construction | (7) | (7) |
Provision for bad debts | 6 | 5 |
Net realized and unrealized hedging and derivatives transactions | (6) | 9 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (12) | 3 |
Accrued unbilled revenues | 43 | 52 |
Inventories | 38 | 20 |
Accounts payable | (38) | (43) |
Net regulatory assets and liabilities | (268) | 33 |
Other current liabilities | 26 | (4) |
Pension and other employee benefit obligations | (36) | (48) |
Other, net | (2) | (8) |
Net cash provided by operating activities | 117 | 341 |
Investing activities | ||
Capital/construction expenditures | (474) | (274) |
Purchase of investment securities | (199) | (835) |
Proceeds from the sale of investment securities | 194 | 830 |
Investments in utility money pool arrangement | 0 | (305) |
Repayments from utility money pool arrangement | 0 | 257 |
Other, net | (2) | 1 |
Net cash used in investing activities | (481) | (326) |
Financing activities | ||
Repayments of short-term borrowings, net | (179) | (30) |
Borrowings under utility money pool arrangement | 434 | 118 |
Repayments under utility money pool arrangement | (434) | (118) |
Proceeds from issuance of long-term debt | 836 | 0 |
Capital contributions from parent | 424 | 114 |
Dividends paid to parent | (106) | (94) |
Other, net | 0 | (4) |
Net cash provided by (used in) financing activities | 975 | (14) |
Net change in cash, cash equivalents and restricted cash | 611 | 1 |
Cash, cash equivalents and restricted cash at beginning of period | 46 | 126 |
Cash, cash equivalents and restricted cash at end of period | 657 | 127 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (72) | (75) |
Cash received (paid) for income taxes, net | 1 | (6) |
Other Noncash Investing and Financing Items [Abstract] | ||
Accrued property, plant and equipment additions | 222 | 67 |
Inventory transfers to property, plant and equipment | 5 | 4 |
Allowance for equity funds used during construction | $ 7 | $ 7 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash, cash equivalents and restricted cash at beginning of period | $ 657 | $ 46 |
Accounts receivable, net | 385 | 392 |
Accounts receivable from affiliates | 20 | 32 |
Accrued unbilled revenues | 205 | 248 |
Inventories | 253 | 295 |
Regulatory assets | 554 | 411 |
Derivative instruments | 8 | 17 |
Prepayments and other | 47 | 50 |
Total current assets | 2,129 | 1,491 |
Property, plant and equipment, net | 15,679 | 15,308 |
Other assets | ||
Nuclear decommissioning fund and other investments | 2,881 | 2,830 |
Regulatory assets | 1,047 | 924 |
Derivative instruments | 26 | 5 |
Operating lease right-of-use assets | 469 | 488 |
Other | 19 | 14 |
Total other assets | 4,442 | 4,261 |
Total assets | 22,250 | 21,060 |
Current liabilities | ||
Short-term debt | 0 | 179 |
Accounts payable | 461 | 438 |
Accounts payable to affiliates | 43 | 66 |
Regulatory liabilities | 115 | 123 |
Taxes accrued | 314 | 263 |
Accrued interest | 58 | 72 |
Dividends payable to parent | 108 | 106 |
Derivative instruments | 15 | 22 |
Operating Lease, Liability, Current | 91 | 85 |
Other | 177 | 154 |
Total current liabilities | 1,382 | 1,508 |
Deferred credits and other liabilities | ||
Deferred Income Tax Liabilities, Net | 1,854 | 1,840 |
Deferred investment tax credits | 18 | 18 |
Regulatory liabilities | 1,899 | 1,896 |
Asset retirement obligations | 2,440 | 2,350 |
Derivative instruments | 84 | 71 |
Pension and employee benefit obligations | 155 | 192 |
Operating lease liabilities | 416 | 443 |
Other | 71 | 69 |
Total deferred credits and other liabilities | 6,937 | 6,879 |
Capitalization | ||
Long-term debt | 6,741 | 5,904 |
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares outstanding at March 31, 2021 and Dec. 31, 2020, respectively | $ 0 | $ 0 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding | 1,000,000 | 1,000,000 |
Additional paid in capital | $ 4,985 | $ 4,585 |
Retained earnings | 2,226 | 2,206 |
Accumulated other comprehensive loss | (21) | (22) |
Total common stockholder's equity | 7,190 | 6,769 |
Total liabilities and equity | $ 22,250 | $ 21,060 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2019 | 1,000,000 | ||||
Beginning balance at Dec. 31, 2019 | $ 6,082 | $ 0 | $ 4,068 | $ 2,036 | $ (22) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 107 | 107 | |||
Other comprehensive income | 0 | ||||
Dividends declared on common stock | (100) | (100) | |||
Contribution of capital by parent | 80 | 80 | |||
Balance (in shares) at Mar. 31, 2020 | 1,000,000 | ||||
Ending balance at Mar. 31, 2020 | $ 6,169 | $ 0 | 4,148 | 2,043 | (22) |
Balance (in shares) at Dec. 31, 2020 | 1,000,000 | 1,000,000 | |||
Beginning balance at Dec. 31, 2020 | $ 6,769 | $ 0 | 4,585 | 2,206 | (22) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 128 | 128 | |||
Other comprehensive income | 1 | 1 | |||
Dividends declared on common stock | (108) | (108) | |||
Contribution of capital by parent | $ 400 | 400 | |||
Balance (in shares) at Mar. 31, 2021 | 1,000,000 | 1,000,000 | |||
Ending balance at Mar. 31, 2021 | $ 7,190 | $ 0 | $ 4,985 | $ 2,226 | $ (21) |
Management's Opinion
Management's Opinion | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Opinion | 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 March 31, 2021 and Dec. 31, 2020; the results of operations, including the components of net income, comprehensive income, cash flows and changes in stockholder’s equity for the three months ended March 31, 2021 and 2020. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2021 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, 2020 balance sheet information has been derived from the audited 2020 consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2020. These 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, 2020, filed with the SEC on Feb. 17, 2021. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
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, 2020, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | Recently Adopted Credit Losses — In 2016, the FASB issued Financial Instruments - Credit Losses, Topic 326 (ASC Topic 326), which changes how entities account for losses on receivables and certain other assets. The guidance requires use of a current expected credit loss model, which may result in earlier recognition of credit losses than under previous accounting standards. NSP-Minnesota implemented the guidance using a modified-retrospective approach, recognizing a cumulative effect charge o f $1 million (aft |
Selected Balance Sheet Data
Selected Balance Sheet Data | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Accounts receivable, net Accounts receivable $ 422 $ 425 Less allowance for bad debts (37) (33) Accounts receivable, net $ 385 $ 392 (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Inventories Materials and supplies $ 181 $ 178 Fuel 66 90 Natural gas 6 27 Total inventories $ 253 $ 295 (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Property, plant and equipment, net Electric plant $ 19,647 $ 18,948 Natural gas plant 1,720 1,707 Common and other property 969 955 Plant to be retired (a) 127 136 Construction work in progress 965 1,150 Total property, plant and equipment 23,428 22,896 Less accumulated depreciation (8,106) (7,898) Nuclear fuel 3,047 2,970 Less accumulated amortization (2,690) (2,660) Property, plant and equipment, net $ 15,679 $ 15,308 (a) Includes regulator-approved retirements of Sherco Units 1 and 2. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
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 Inc. 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 Inc. 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 Inc. Money pool borrowings for NSP-Minnesota were as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 250 $ 250 Amount outstanding at period end — — Average amount outstanding 24 3 Maximum amount outstanding 236 116 Weighted average interest rate, computed on a daily basis 0.07 % 1.53 % Weighted average interest rate at period end N/A N/A Commercial Paper — Commercial paper outstanding for NSP-Minnesota was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 500 $ 500 Amount outstanding at period end — 179 Average amount outstanding 104 10 Maximum amount outstanding 317 179 Weighted average interest rate, computed on a daily basis 0.18 % 1.25 % Weighted average interest rate at period end N/A 0.18 Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At March 31, 2021 and Dec. 31, 2020, there we re $10 million of letters of credit outstanding under the credit facility. Amounts approximate their fair value and are subject to fees. Revolving Credit Facility — In order to issue its commercial paper, NSP-Minnesota must have a revolving credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. 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 March 31, 2021, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 500 $ 10 $ 490 (a) Expires in June 2024. (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 ha d no direct advances on the credit facility outstanding at March 31, 2021 and Dec. 31, 2020. Bilateral Credit Agreement — In April 2021, the 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 March 31, 2021, NSP-Minnesota’s outstanding letters of credit under the Bilateral Credit Agreement were as follows: (Millions of Dollars) Limit Amount Outstanding Available NSP-Minnesota $ 75 $ 49 $ 26 Long-Term Borrowings During the three months ended March 31, 2021, NSP-Minnesota issued $425 million of 2.25% first mortgage bonds due April 1, 2031 and $425 million of 3.20% first mortgage bonds due April 1, 2052. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
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 March 31, 2021 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 326 $ 114 $ 7 $ 447 C&I 416 79 — 495 Other 8 — 2 10 Total retail 750 193 9 952 Wholesale 98 — — 98 Transmission 57 — — 57 Interchange 115 — — 115 Other 2 — — 2 Total revenue from contracts with customers 1,022 193 9 1,224 Alternative revenue and other 117 11 — 128 Total revenues $ 1,139 $ 204 $ 9 $ 1,352 Three Months Ended March 31, 2020 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 300 $ 114 $ 7 $ 421 C&I 445 82 — 527 Other 7 — 2 9 Total retail 752 196 9 957 Wholesale 45 — — 45 Transmission 56 — — 56 Interchange 110 — — 110 Other 2 1 — 3 Total revenue from contracts with customers 965 197 9 1,171 Alternative revenue and other 70 9 — 79 Total revenues $ 1,035 $ 206 $ 9 $ 1,250 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Note 7 to the consolidated financial statements included in NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2020 represents, in all material respects, the current status of other income tax matters except to the extent noted below, and are incorporated herein by reference. The following table reconciles the difference between the statutory rate and the ETR: Three Months Ended March 31 2021 2020 (a) Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 7.0 7.1 Increases (decreases) in tax from: Wind PTCs (30.4) (24.8) Plant regulatory differences (b) (7.8) (8.3) Other tax credits, net NOL & tax credit allowances (1.3) (1.5) Other (net) 1.2 0.6 Effective income tax rate (10.3) % (5.9) % (a) Prior periods have been restated to conform to current year presentation. (b) 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 credits are offset by corresponding revenue reduction. Federal Audits — NSP-Minnesota is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows: Tax Years Expiration 2014 - 2016 January 2022 2017 September 2021 Additionally, the statute of limitations related to a federal tax loss carryback claim filed in 2020 has been extended. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is unknown . State Audits — NSP-Minnesota is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of March 31, 2021, NSP-Minnesota’s earliest open tax year subject to examination by state taxing authorities under applicable statutes of limitations is 2013. In July 2020, Minnesota began a review of tax years 2015-2018. In February 2021, Minnesota concluded its review and commenced an audit of the same tax years. As of March 31, 2021, no material adjustments have been proposed. Unrecognized Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment to the taxing authority to an earlier period. Unrecognized tax benefits — permanent vs. temporary: (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Unrecognized tax benefit — Permanent tax positions $ 21 $ 21 Unrecognized tax benefit — Temporary tax positions 3 3 Total unrecognized tax benefit $ 24 $ 24 Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) March 31, 2021 Dec. 31, 2020 NOL and tax credit carryforwards $ (11) $ (11) As IRS audits resume and the state audit progresses, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $15 million in the next 12 months. Payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. Interest payable related to unrecognized tax benefits: (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Payable for interest related to unrecognized tax benefits at beginning of period $ (2) $ (2) Interest expense related to unrecognized tax benefits — — Payable for interest related to unrecognized tax benefits at end of period $ (2) $ (2) No a mounts were accrued for penalties related to unrecognized tax benefits as of March 31, 2021 or Dec. 31, 2020. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
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. • Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices. • Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. • Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include: 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 investments require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate commingled funds’ investments may be redeemed with proper notice, however, 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-party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The 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 settlements 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 forecasts of forward prices and volatilities 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 a 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 value of an FTR is derived from, and designed to offset, the cost 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 an FTR. If forecasted costs of electric transmission congestion increase or decrease for a given FTR path, the value of that particular FTR instrument will likewise increase or decrease. Given the limited observability of certain inputs to the value of FTRs between auction processes, including expected plant operating schedules and retail and wholesale demand, fair value measurements for FTRs have been assigned a Level 3. Non-trading monthly FTR settlements are included in fuel and purchased energy cost recovery mechanisms, and therefore changes in the fair value of the yet to be settled portions of most FTRs are deferred as a regulatory asset or liability. Given this regulatory treatment and the limited magnitude of NSP-Minnesota’s FTRs relative to its electric utility operations, the numerous unobservable quantitative inputs pertinent to the value of FTRs are immaterial to the consolidated financial statements of NSP-Minnesota. 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 escrow and investment targets by asset class for both the escrow and 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 $1 billion and $981 million as of March 31, 2021 and Dec. 31, 2020, respectively, and unrealized losses were $8 million and $5 million as of March 31, 2021 and Dec. 31, 2020, respectively. Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund: March 31, 2021 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 NAV Total Nuclear decommissioning fund (a) Cash equivalents $ 32 $ 32 $ — $ — $ — $ 32 Commingled funds 795 — — — 1,052 1,052 Debt securities 562 — 573 13 — 586 Equity securities 444 1,153 2 — — 1,155 Total $ 1,833 $ 1,185 $ 575 $ 13 $ 1,052 $ 2,825 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $56 million of rabbi trust assets and miscellaneous investments. Dec. 31, 2020 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 NAV Total Nuclear decommissioning fund (a) Cash equivalents $ 40 $ 40 $ — $ — $ — $ 40 Commingled funds 787 — — — 1,041 1,041 Debt securities 528 — 572 13 — 585 Equity securities 446 1,109 2 — — 1,111 Total $ 1,801 $ 1,149 $ 574 $ 13 $ 1,041 $ 2,777 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $53 million of rabbi trust assets and miscellaneous investments. For the three months ended March 31, 2021 and 2020, 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 March 31, 2021: Final Contractual Maturity (Millions of Dollars) Due in 1 year or Less Due in 1 to 5 Years Due in 5 to 10 Years Due after 10 Years Total Debt securities $ 3 $ 133 $ 202 $ 248 $ 586 Rabbi Trusts NSP-Minnesota has established a rabbi trust to provide partial funding for future deferred compensation plan distributions. Cost and fair value of assets held in rabbi trusts: March 31, 2021 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 Total Rabbi Trusts (a) Cash equivalents $ 6 $ 6 $ — $ — $ 6 Mutual funds 10 12 — — 12 Total $ 16 $ 18 $ — $ — $ 18 Dec. 31, 2020 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 Total Rabbi Trusts (a) Cash equivalents $ 1 $ 1 $ — $ — $ 1 Mutual funds 14 16 — — 16 Total $ 15 $ 17 $ — $ — $ 17 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets. Derivative Instruments 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, utility commodity prices and vehicle fuel prices. Interest Rate Derivatives — NSP-Minnesota enters into various instruments that effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes, with changes in fair value prior to settlement recorded as other comprehensive income. At March 31, 2021, accumulated other comprehensive loss related to settled 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 March 31, 2021, NSP-Minnesota had no unsettled interest rate derivatives. 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 activities governed by this policy. Sharing of any margins is determined through state regulatory proceedings as well as the operation of the FERC 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. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale, FTRs, vehicle fuel, and weather derivatives. At March 31, 2021, NSP-Minnesota had no commodity contracts designated as cash flow hedges. NSP-Minnesota may enter into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers, but may not be designated as qualifying hedging transactions. The classification as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms. 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) March 31, 2021 Dec. 31, 2020 Megawatt hours of electricity 49 65 Million British thermal units of natural gas 77 83 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. 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. As of March 31, 2021, six of NSP-Minnesota’s ten most significant counterparties for these activities, comprising $26 million, or 52%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Three of the ten most significant counterparties, comprising $10 million, or 20%, of this credit exposure, were not rated by these external agencies, but based on NSP-Minnesota’s internal analysis, had credit quality consistent with investment grade. One of these significant counterparties, comprising $8 million or 16% of this credit exposure, had credit quality less than investment grade, based on internal analysis. Eight of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities. The impact of derivative activity: Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: (Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Three Months Ended March 31, 2021 Other derivative instruments Natural gas commodity $ — $ 1 Total $ — $ 1 As of March 31, 2020, NSP-Minnesota had no activity for electric and natural gas commodity derivatives that were recognized in regulatory (assets) and liabilities. 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 Loss Regulatory Assets and (Liabilities) Three Months Ended March 31, 2021 Other derivative instruments Commodity trading $ — $ — $ 31 (a) Electric commodity — (1) (b) — Natural gas commodity — 1 (c) (3) (c) Total $ — $ — $ 28 Pre-Tax (Gains) Losses Reclassified Pre-Tax Gains (Losses) (Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory Three Months Ended March 31, 2020 Other derivative instruments Commodity trading $ — $ — $ 4 (a) Electric commodity — (1) (b) — Natural gas commodity — 1 (c) (2) (c) Total $ — $ — $ 2 (a) Amounts are 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. (b) Amounts are 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. (c) Amounts are recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. NSP-Minnesota had no derivative instruments designated as fair value hedges during the three months ended March 31, 2021 and 2020. 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 both March 31, 2021 and Dec. 31, 2020, there were $4 million 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 March 31, 2021 and Dec. 31, 2020, there were approximately $29 million and $14 million, respectively, of derivative liabilities with such underlying contract provisions. Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. 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 March 31, 2021 and Dec. 31, 2020. Recurring Fair Value Measurements — NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis: March 31, 2021 Dec. 31, 2020 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Commodity trading $ 1 $ 23 $ — $ 24 $ (21) $ 3 $ 1 $ 26 $ — $ 27 $ (25) $ 2 Electric commodity — — 6 6 (1) 5 — — 13 13 (1) 12 Natural gas commodity — — — — — — — 3 — 3 — 3 Total current derivative assets $ 1 $ 23 $ 6 $ 30 $ (22) $ 8 $ 1 $ 29 $ 13 $ 43 $ (26) $ 17 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 5 $ 33 $ 28 $ 66 $ (40) $ 26 $ 7 $ 39 $ — $ 46 $ (41) $ 5 Total noncurrent derivative assets $ 5 $ 33 $ 28 $ 66 $ (40) $ 26 $ 7 $ 39 $ — $ 46 $ (41) $ 5 March 31, 2021 Dec. 31, 2020 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative liabilities Other derivative instruments: Commodity trading $ 4 $ 22 $ 5 $ 31 $ (29) $ 2 $ 3 $ 18 $ 10 $ 31 $ (25) $ 6 Electric commodity — — — — — — — — 1 1 (1) — Natural gas commodity — — — — — — — 2 — 2 — 2 Total current derivative liabilities $ 4 $ 22 $ 5 $ 31 $ (29) 2 $ 3 $ 20 $ 11 $ 34 $ (26) 8 PPAs (b) 13 14 Current derivative instruments $ 15 $ 22 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 2 $ 50 $ 17 $ 69 $ (30) $ 39 $ 2 $ 35 $ 13 $ 50 $ (27) $ 23 Total noncurrent derivative liabilities $ 2 $ 50 $ 17 $ 69 $ (30) 39 $ 2 $ 35 $ 13 $ 50 $ (27) 23 PPAs (b) 45 48 Noncurrent derivative instruments $ 84 $ 71 (a) NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2021 and Dec. 31, 2020. At both March 31, 2021 and Dec. 31, 2020, derivative assets and liabilities include $15 million of obligations to return cash collateral. At March 31, 2021 and Dec. 31, 2020 derivative assets and liabilities include rights to reclaim cash collateral of $11 million and $1 million, respectively. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. Changes in Level 3 commodity derivatives for the three months ended March 31, 2021 and 2020: Three Months Ended March 31 (Millions of Dollars) 2021 2020 Balance at Jan. 1 $ (11) $ 5 Settlements (7) (12) Net transactions recorded during the period: Gains recognized in earnings (a) 30 6 Net gains recognized as regulatory assets and liabilities — 3 Balance at March 31 $ 12 $ 2 (a) Level 3 gains recognized in earnings are subject to offsetting losses of derivative instruments categorized as levels 1 and 2 in the income statement. Fair Value of Long-Term Debt Other financial instruments for which the carrying amount did not equal fair value: March 31, 2021 Dec. 31, 2020 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 6,741 $ 7,491 $ 5,904 $ 7,391 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 March 31, 2021 and Dec. 31, 2020 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Components of Net Periodic Benefit Cost Three Months Ended March 31 2021 2020 2021 2020 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 7 $ 7 $ — $ — Interest cost (a) 6 8 1 1 Expected return on plan assets (a) (13) (14) — — Amortization of prior service credit (a) — — (1) (1) Amortization of net loss (a) 9 8 — — Net periodic benefit cost 9 9 — — Effects of regulation (1) (1) — — Net benefit cost recognized for financial reporting $ 8 $ 8 $ — $ — (a) The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. In January 2021, contributions of $125 million were made across four of Xcel Energy’s pension plans, of which $33 was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 of such matters, including a possible eventual loss. For current proceedings not specifically reported, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. Rate Matters and Other 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 FCA. In March 2019, the MPUC approved NSP-Minnesota’s 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 accordance with a prior MPUC order, NSP-Minnesota made a compliance filing in August 2020 detailing all costs that resulted from the outage and all insurance recoveries received by NSP-Minnesota in connection with the outage. In January 2021, the Minnesota Office of the Attorney General and DOC filed comments recommending that NSP-Minnesota refund approximately $17 million of replacement power costs previously recovered through the FCA. On Jan. 27, 2021, NSP-Minnesota 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. A final decision by the MPUC is pending. A loss related to this matter is deemed remote. Westmoreland Arbitration — In November 2014, insurers for Westmoreland Coal Company filed an arbitration demand against NSP-Minnesota, SMMPA and Western Fuels Association, seeking recovery of alleged business losses due to a turbine failure at Sherco Unit 3. The Westmoreland insurers claim NSP-Minnesota’s invocation of the force majeure clause to stop the supply of coal was improper because the incident was allegedly caused by NSP-Minnesota’s failure to conform to industry maintenance standards. Westmoreland’s insurers quantified their losses as approximately $36 million. Arbitration was delayed pending resolution of a separate lawsuit brought by NSP-Minnesota, SMMPA, and their insurers against various GE entities based on the inspection and maintenance advice GE provided for Sherco Unit 3. In July 2020, following the conclusion of the appeal that fully resolved the GE litigation, Westmoreland’s insurers served notice, which triggered the arbitration to resume. NSP-Minnesota denies the claims asserted by the Westmoreland insurers and believes it properly stopped the supply of coal based upon the force majeure provision. It is uncertain when a final resolution will occur, but it is unlikely an arbitration hearing will take place before the fourth quarter 2021. At this stage of the proceeding, a reasonable estimate of damages or range of damages cannot be determined. MISO ROE Complaints — In 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%. In September 2016, the FERC issued an order (Opinion No. 551) granting a 10.32% base ROE effective for the first complaint period of Nov. 12, 2013 to Feb. 11, 2015 and subsequent to the date of the order. The D.C Circuit subsequently vacated and remanded Opinion No. 551. In November 2019, the FERC issued an order (Opinion No. 569), which set the MISO base ROE at 9.88%, effective Sept. 28, 2016 and for the first complaint period. The FERC also dismissed the second complaint. In December 2019, MISO TOs filed a request for rehearing regarding the new ROE methodology announced in Opinion No. 569. Customers also filed requests for rehearing claiming, among other points, that the FERC erred by dismissing the second complaint without refunds. In May 2020, the FERC issued an order (Opinion No. 569-A) which granted rehearing in part to Opinion 569 and further refined the FERC’s ROE methodology, most significantly to incorporate the risk premium model (in addition to the discounted cash flow and capital asset pricing models), resulting in a new base ROE of 10.02%, effective Sept. 28, 2016 and for the first complaint period. The FERC also affirmed its decision in Opinion No. 569 to dismiss the second complaint. In November 2020, the FERC issued an order (Opinion No. 569-B) in response to rehearing requests. The FERC corrected certain inputs to its ROE calculation model, did not change the ROE effective Sept. 28, 2016, and for the first MISO complaint period and upheld its decision to deny refunds for the second complaint period. NSP-Minnesota has recognized a liability for its best estimate of final refunds to customers. Each 10 basis point reduction in ROE for the first complaint period, second complaint period, and subsequent period relative to amounts accrued would reduce Xcel Energy’s net income by $1 million, $1 million, and $2 million, respectively. The MISO TOs and various parties have filed petitions for review of Opinion Nos. 569, 569-A and 569-B at the D.C. Circuit with initial briefs filed in March 2021. FERC NOPR on ROE Incentive Adders — In April 2021, the FERC issued a NOPR proposing to limit collection of ROE incentive adders for RTO membership to the first three years after an entity begins participation in an RTO. If adopted as a final rule, following a comment period expected to be complete by the end of 2021 or 2022, NSP-Minnesota, NSP-Wisconsin and SPS would prospectively discontinue charging their current 0.5% ROE incentive adders. Amounts related to a discontinuance of the adder would ultimately be offset by an increase in retail rates. Environmental MGP, Landfill and Disposal Sites NSP-Minnesota is currently 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 that will result from final resolution of these issues, however, the outcome and timing is 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 CCR 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. Until NSP-Minnesota completes its assessment, it is uncertain what impact, if any, there will be on the operations, financial condition or cash flows. In August 2020, the EPA published its final rule to implement a cease receipt and initiate a closure date of April 2021 for all CCR impoundments affected by the August 2018 D.C. Circuit ruling. The D.C. Circuit concluded that the EPA cannot allow utilities to continue to use unlined impoundments (including clay lined impoundments) for the storage or disposal of coal ash. This final rule required Xcel Energy to expedite closure plans for one impoundment. In October 2020, NSP-Minnesota completed construction and placed in service a new impoundment to replace the clay lined impoundment at a cost of $9 million. With the new ash pond in service, NSP-Minnesota has initiated closure activities for the existing ash pond at an estimated cost of $4 million. NSP-Minnesota has five years to complete closure activities. 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 March 31 (Millions of Dollars) 2021 2020 Operating leases PPA capacity payments $ 19 $ 21 Other operating leases (a) 2 2 Total operating lease expense (b) $ 21 $ 23 (a) Includes immaterial short-term lease expense for 2021 and 2020, respectively. (a) 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 March 31, 2021: (Millions of Dollars) PPA Operating Other Operating Leases Total Leases Total minimum obligation $ 485 $ 79 $ 564 Interest component of obligation (43) (14) (57) Present value of minimum obligation $ 442 $ 65 507 Less current portion (91) Noncurrent operating lease liabilities $ 416 VIEs 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 it purchases. These specific PPAs create a variable interest in the IPP. NSP-Minnesota had approximately 1,347 MW of capacity under long-term PPAs at both March 31, 2021 and Dec. 31, 2020 with entities that have been determined to be VIEs. NSP-Minnesota concluded that these entities are not required to be consolidated in its consolidated 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 . |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income (Loss) | 10. Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Millions of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Accumulated other comprehensive loss at Jan. 1 $ (19) $ (3) $ (22) $ (19) $ (3) $ (22) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives, net of tax of $— and $—, respectively (a) 1 — 1 — — — Accumulated other comprehensive loss at March 31 $ (18) $ (3) $ (21) $ (19) $ (3) $ (22) (a) Included in interest charges. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
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 March 31 (Millions of Dollars) 2021 2020 Regulated Electric Total revenues (a) $ 1,139 $ 1,035 Net income 107 86 Regulated Natural Gas Total revenues (b) $ 204 $ 206 Net income 20 23 All Other Total revenues $ 9 $ 9 Net income (loss) 1 (2) Consolidated Total Total revenues (a)(b) $ 1,352 $ 1,250 Net income 128 107 (a) Total revenues include $115 million and $110 million of affiliate electric revenue for the three months ended March 31, 2021 and 2020. (b) Total revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2021 and 2020. |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Accounts receivable, net Accounts receivable $ 422 $ 425 Less allowance for bad debts (37) (33) Accounts receivable, net $ 385 $ 392 |
Inventories | (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Inventories Materials and supplies $ 181 $ 178 Fuel 66 90 Natural gas 6 27 Total inventories $ 253 $ 295 |
Property, plant and equipment, net | (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Property, plant and equipment, net Electric plant $ 19,647 $ 18,948 Natural gas plant 1,720 1,707 Common and other property 969 955 Plant to be retired (a) 127 136 Construction work in progress 965 1,150 Total property, plant and equipment 23,428 22,896 Less accumulated depreciation (8,106) (7,898) Nuclear fuel 3,047 2,970 Less accumulated amortization (2,690) (2,660) Property, plant and equipment, net $ 15,679 $ 15,308 (a) Includes regulator-approved retirements of Sherco Units 1 and 2. |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | At March 31, 2021, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 500 $ 10 $ 490 (a) Expires in June 2024. (b) Includes outstanding commercial paper and letters of credit. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings for NSP-Minnesota were as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 250 $ 250 Amount outstanding at period end — — Average amount outstanding 24 3 Maximum amount outstanding 236 116 Weighted average interest rate, computed on a daily basis 0.07 % 1.53 % Weighted average interest rate at period end N/A N/A |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for NSP-Minnesota was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 500 $ 500 Amount outstanding at period end — 179 Average amount outstanding 104 10 Maximum amount outstanding 317 179 Weighted average interest rate, computed on a daily basis 0.18 % 1.25 % Weighted average interest rate at period end N/A 0.18 |
Bilateral Credit Agreement | Letter of Credit | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | As of March 31, 2021, NSP-Minnesota’s outstanding letters of credit under the Bilateral Credit Agreement were as follows: (Millions of Dollars) Limit Amount Outstanding Available NSP-Minnesota $ 75 $ 49 $ 26 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | NSP-Minnesota’s operating revenues consisted of the following: Three Months Ended March 31, 2021 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 326 $ 114 $ 7 $ 447 C&I 416 79 — 495 Other 8 — 2 10 Total retail 750 193 9 952 Wholesale 98 — — 98 Transmission 57 — — 57 Interchange 115 — — 115 Other 2 — — 2 Total revenue from contracts with customers 1,022 193 9 1,224 Alternative revenue and other 117 11 — 128 Total revenues $ 1,139 $ 204 $ 9 $ 1,352 Three Months Ended March 31, 2020 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 300 $ 114 $ 7 $ 421 C&I 445 82 — 527 Other 7 — 2 9 Total retail 752 196 9 957 Wholesale 45 — — 45 Transmission 56 — — 56 Interchange 110 — — 110 Other 2 1 — 3 Total revenue from contracts with customers 965 197 9 1,171 Alternative revenue and other 70 9 — 79 Total revenues $ 1,035 $ 206 $ 9 $ 1,250 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles the difference between the statutory rate and the ETR: Three Months Ended March 31 2021 2020 (a) Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 7.0 7.1 Increases (decreases) in tax from: Wind PTCs (30.4) (24.8) Plant regulatory differences (b) (7.8) (8.3) Other tax credits, net NOL & tax credit allowances (1.3) (1.5) Other (net) 1.2 0.6 Effective income tax rate (10.3) % (5.9) % (a) Prior periods have been restated to conform to current year presentation. (b) 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 credits are offset by corresponding revenue reduction. |
Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block] | Federal Audits — NSP-Minnesota is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows: Tax Years Expiration 2014 - 2016 January 2022 2017 September 2021 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized tax benefits — permanent vs. temporary: (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Unrecognized tax benefit — Permanent tax positions $ 21 $ 21 Unrecognized tax benefit — Temporary tax positions 3 3 Total unrecognized tax benefit $ 24 $ 24 |
Tax Benefits Associated with NOL and Tax Credit Carryforwards | Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) March 31, 2021 Dec. 31, 2020 NOL and tax credit carryforwards $ (11) $ (11) |
Interest Payable related to Unrecognized Tax Benefits [Table Text Block] | Interest payable related to unrecognized tax benefits: (Millions of Dollars) March 31, 2021 Dec. 31, 2020 Payable for interest related to unrecognized tax benefits at beginning of period $ (2) $ (2) Interest expense related to unrecognized tax benefits — — Payable for interest related to unrecognized tax benefits at end of period $ (2) $ (2) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Cost and Fair Value of Nuclear Decommissioning Fund Investments | Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund: March 31, 2021 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 NAV Total Nuclear decommissioning fund (a) Cash equivalents $ 32 $ 32 $ — $ — $ — $ 32 Commingled funds 795 — — — 1,052 1,052 Debt securities 562 — 573 13 — 586 Equity securities 444 1,153 2 — — 1,155 Total $ 1,833 $ 1,185 $ 575 $ 13 $ 1,052 $ 2,825 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $56 million of rabbi trust assets and miscellaneous investments. Dec. 31, 2020 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 NAV Total Nuclear decommissioning fund (a) Cash equivalents $ 40 $ 40 $ — $ — $ — $ 40 Commingled funds 787 — — — 1,041 1,041 Debt securities 528 — 572 13 — 585 Equity securities 446 1,109 2 — — 1,111 Total $ 1,801 $ 1,149 $ 574 $ 13 $ 1,041 $ 2,777 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $53 million of rabbi trust assets and miscellaneous investments. |
Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class | Contractual maturity dates of debt securities in the nuclear decommissioning fund as of March 31, 2021: Final Contractual Maturity (Millions of Dollars) Due in 1 year or Less Due in 1 to 5 Years Due in 5 to 10 Years Due after 10 Years Total Debt securities $ 3 $ 133 $ 202 $ 248 $ 586 |
Rabbi Trust Securities Amortized Cost and Fair Value Measured on Recurrring Basis [Table Text Block] | Cost and fair value of assets held in rabbi trusts: March 31, 2021 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 Total Rabbi Trusts (a) Cash equivalents $ 6 $ 6 $ — $ — $ 6 Mutual funds 10 12 — — 12 Total $ 16 $ 18 $ — $ — $ 18 Dec. 31, 2020 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 Total Rabbi Trusts (a) Cash equivalents $ 1 $ 1 $ — $ — $ 1 Mutual funds 14 16 — — 16 Total $ 15 $ 17 $ — $ — $ 17 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets. |
Gross Notional Amounts of Commodity Forwards, Options, and FTRs | Gross notional amounts of commodity forwards, options and FTRs: (Amounts in Millions) (a)(b) March 31, 2021 Dec. 31, 2020 Megawatt hours of electricity 49 65 Million British thermal units of natural gas 77 83 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income | The impact of derivative activity: Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: (Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Three Months Ended March 31, 2021 Other derivative instruments Natural gas commodity $ — $ 1 Total $ — $ 1 As of March 31, 2020, NSP-Minnesota had no activity for electric and natural gas commodity derivatives that were recognized in regulatory (assets) and liabilities. 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 Loss Regulatory Assets and (Liabilities) Three Months Ended March 31, 2021 Other derivative instruments Commodity trading $ — $ — $ 31 (a) Electric commodity — (1) (b) — Natural gas commodity — 1 (c) (3) (c) Total $ — $ — $ 28 Pre-Tax (Gains) Losses Reclassified Pre-Tax Gains (Losses) (Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory Three Months Ended March 31, 2020 Other derivative instruments Commodity trading $ — $ — $ 4 (a) Electric commodity — (1) (b) — Natural gas commodity — 1 (c) (2) (c) Total $ — $ — $ 2 (a) Amounts are 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. (b) Amounts are 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. (c) Amounts are recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Recurring Fair Value Measurements — NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis: March 31, 2021 Dec. 31, 2020 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Commodity trading $ 1 $ 23 $ — $ 24 $ (21) $ 3 $ 1 $ 26 $ — $ 27 $ (25) $ 2 Electric commodity — — 6 6 (1) 5 — — 13 13 (1) 12 Natural gas commodity — — — — — — — 3 — 3 — 3 Total current derivative assets $ 1 $ 23 $ 6 $ 30 $ (22) $ 8 $ 1 $ 29 $ 13 $ 43 $ (26) $ 17 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 5 $ 33 $ 28 $ 66 $ (40) $ 26 $ 7 $ 39 $ — $ 46 $ (41) $ 5 Total noncurrent derivative assets $ 5 $ 33 $ 28 $ 66 $ (40) $ 26 $ 7 $ 39 $ — $ 46 $ (41) $ 5 March 31, 2021 Dec. 31, 2020 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative liabilities Other derivative instruments: Commodity trading $ 4 $ 22 $ 5 $ 31 $ (29) $ 2 $ 3 $ 18 $ 10 $ 31 $ (25) $ 6 Electric commodity — — — — — — — — 1 1 (1) — Natural gas commodity — — — — — — — 2 — 2 — 2 Total current derivative liabilities $ 4 $ 22 $ 5 $ 31 $ (29) 2 $ 3 $ 20 $ 11 $ 34 $ (26) 8 PPAs (b) 13 14 Current derivative instruments $ 15 $ 22 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 2 $ 50 $ 17 $ 69 $ (30) $ 39 $ 2 $ 35 $ 13 $ 50 $ (27) $ 23 Total noncurrent derivative liabilities $ 2 $ 50 $ 17 $ 69 $ (30) 39 $ 2 $ 35 $ 13 $ 50 $ (27) 23 PPAs (b) 45 48 Noncurrent derivative instruments $ 84 $ 71 (a) NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2021 and Dec. 31, 2020. At both March 31, 2021 and Dec. 31, 2020, derivative assets and liabilities include $15 million of obligations to return cash collateral. At March 31, 2021 and Dec. 31, 2020 derivative assets and liabilities include rights to reclaim cash collateral of $11 million and $1 million, respectively. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Changes in Level 3 Commodity Derivatives | Changes in Level 3 commodity derivatives for the three months ended March 31, 2021 and 2020: Three Months Ended March 31 (Millions of Dollars) 2021 2020 Balance at Jan. 1 $ (11) $ 5 Settlements (7) (12) Net transactions recorded during the period: Gains recognized in earnings (a) 30 6 Net gains recognized as regulatory assets and liabilities — 3 Balance at March 31 $ 12 $ 2 (a) Level 3 gains recognized in earnings are subject to offsetting losses of derivative instruments categorized as levels 1 and 2 in the income statement. |
Carrying Amount and Fair Value of Long-term Debt | Other financial instruments for which the carrying amount did not equal fair value: March 31, 2021 Dec. 31, 2020 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 6,741 $ 7,491 $ 5,904 $ 7,391 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 3 Months Ended | |
Mar. 31, 2021 | ||
Retirement Benefits [Abstract] | ||
Components of Net Periodic Benefit Cost (Credit) | Components of Net Periodic Benefit Cost Three Months Ended March 31 2021 2020 2021 2020 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 7 $ 7 $ — $ — Interest cost (a) 6 8 1 1 Expected return on plan assets (a) (13) (14) — — Amortization of prior service credit (a) — — (1) (1) Amortization of net loss (a) 9 8 — — Net periodic benefit cost 9 9 — — Effects of regulation (1) (1) — — Net benefit cost recognized for financial reporting $ 8 $ 8 $ — $ — (a) The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. | [1] |
[1] | The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Components of lease expense: Three Months Ended March 31 (Millions of Dollars) 2021 2020 Operating leases PPA capacity payments $ 19 $ 21 Other operating leases (a) 2 2 Total operating lease expense (b) $ 21 $ 23 (a) Includes immaterial short-term lease expense for 2021 and 2020, respectively. |
Lessee, Operating Lease, Liability, Maturity | Commitments under operating leases as of March 31, 2021: (Millions of Dollars) PPA Operating Other Operating Leases Total Leases Total minimum obligation $ 485 $ 79 $ 564 Interest component of obligation (43) (14) (57) Present value of minimum obligation $ 442 $ 65 507 Less current portion (91) Noncurrent operating lease liabilities $ 416 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | Changes in accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Millions of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Accumulated other comprehensive loss at Jan. 1 $ (19) $ (3) $ (22) $ (19) $ (3) $ (22) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives, net of tax of $— and $—, respectively (a) 1 — 1 — — — Accumulated other comprehensive loss at March 31 $ (18) $ (3) $ (21) $ (19) $ (3) $ (22) (a) Included in interest charges. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Results from Operations by Reportable Segment | NSP-Minnesota’s segment information: Three Months Ended March 31 (Millions of Dollars) 2021 2020 Regulated Electric Total revenues (a) $ 1,139 $ 1,035 Net income 107 86 Regulated Natural Gas Total revenues (b) $ 204 $ 206 Net income 20 23 All Other Total revenues $ 9 $ 9 Net income (loss) 1 (2) Consolidated Total Total revenues (a)(b) $ 1,352 $ 1,250 Net income 128 107 (a) Total revenues include $115 million and $110 million of affiliate electric revenue for the three months ended March 31, 2021 and 2020. |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) $ in Millions | Jan. 01, 2020USD ($) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Credit Losses, Topic 326 (ASC Topic 326) | $ 1 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable | $ 422 | $ 425 |
Less allowance for bad debts | (37) | (33) |
Accounts receivable, net | $ 385 | $ 392 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 253 | $ 295 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 181 | 178 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 66 | 90 |
Natural Gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 6 | $ 27 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 23,428 | $ 22,896 | |
Accumulated depreciation and amortization | (8,106) | (7,898) | |
Property, plant and equipment, net | 15,679 | 15,308 | |
Electric plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 19,647 | 18,948 | |
Natural gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,720 | 1,707 | |
Common and other property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 969 | 955 | |
Plant to be Retired (a) | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | [1] | 127 | 136 |
Construction work in progress | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 965 | 1,150 | |
Nuclear fuel | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,047 | 2,970 | |
Accumulated depreciation and amortization | $ (2,690) | $ (2,660) | |
[1] | Includes regulator-approved retirements of Sherco Units 1 and 2. |
Money Pool (Details)
Money Pool (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 179 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 250 | 250 |
Amount outstanding at period end | 0 | 0 |
Average amount outstanding | 24 | 3 |
Maximum amount outstanding | $ 236 | $ 116 |
Weighted average interest rate, computed on a daily basis | 0.07% | 1.53% |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments Commercial Paper (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 179 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 500 | 500 |
Amount outstanding at period end | 0 | 179 |
Average amount outstanding | 104 | 10 |
Maximum amount outstanding | $ 317 | $ 179 |
Weighted average interest rate, computed on a daily basis | 0.18% | 1.25% |
Weighted average interest rate at period end | 0.18% |
Letters of Credit (Details)
Letters of Credit (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 179 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Direct advances on the credit facility outstanding | $ 10 | $ 10 |
Credit Facility (Details)
Credit Facility (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | ||
Line of Credit Facility [Line Items] | |||
Amount outstanding at period end | $ 0 | $ 179 | |
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Borrowing limit | [1] | 500 | |
Amount outstanding at period end | [2] | $ 10 | |
Number of extension you can request | 2 | ||
Available | $ 490 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1] | Expires in June 2024. | ||
[2] | Includes outstanding commercial paper and letters of credit. |
Bilateral Credit Agreement (Det
Bilateral Credit Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 179 |
Letter of Credit | Bilateral Credit Agreement | ||
Short-term Debt [Line Items] | ||
Borrowing Limit | 75 | |
Amount outstanding at period end | 49 | |
Available | $ 26 | |
Letter of Credit | Bilateral Credit Agreement | NSP Minnesota [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Term | 1 year |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments (Details) - Bonds [Member] - NSP Minnesota [Member] | Mar. 30, 2021USD ($) |
Series Due April 1, 2031 | |
Debt Disclosure [Abstract] | |
Debt Instrument, Interest Rate, Stated Percentage | 2.25% |
Debt Instrument, Face Amount | $ 425,000,000 |
Short-term Debt [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 2.25% |
Debt Instrument, Face Amount | $ 425,000,000 |
Series Due April 1, 2052 | |
Debt Disclosure [Abstract] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% |
Debt Instrument, Face Amount | $ 425,000,000 |
Short-term Debt [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% |
Debt Instrument, Face Amount | $ 425,000,000 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 1,352 | $ 1,250 |
Regulated Electric | Total revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,139 | 1,035 |
Regulated Natural Gas | Total revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 204 | 206 |
All Other | Total revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9 | 9 |
Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 952 | 957 |
Retail | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 447 | 421 |
Retail | C&I | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 495 | 527 |
Retail | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 10 | 9 |
Retail | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 750 | 752 |
Retail | Regulated Electric | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 326 | 300 |
Retail | Regulated Electric | C&I | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 416 | 445 |
Retail | Regulated Electric | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 8 | 7 |
Retail | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 193 | 196 |
Retail | Regulated Natural Gas | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 114 | 114 |
Retail | Regulated Natural Gas | C&I | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 79 | 82 |
Retail | Regulated Natural Gas | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Retail | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 9 | 9 |
Retail | All Other | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 7 | 7 |
Retail | All Other | C&I | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Retail | All Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2 | 2 |
Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 98 | 45 |
Wholesale | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 98 | 45 |
Wholesale | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Wholesale | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 57 | 56 |
Transmission | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 57 | 56 |
Transmission | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Transmission | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Interchange | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 115 | 110 |
Interchange | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 115 | 110 |
Interchange | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Interchange | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2 | 3 |
Other | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2 | 2 |
Other | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 1 |
Other | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Total revenue from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,224 | 1,171 |
Total revenue from contracts with customers | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,022 | 965 |
Total revenue from contracts with customers | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 193 | 197 |
Total revenue from contracts with customers | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 9 | 9 |
Alternative revenue and other | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue and other | 128 | 79 |
Alternative revenue and other | Regulated Electric | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue and other | 117 | 70 |
Alternative revenue and other | Regulated Natural Gas | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue and other | 11 | 9 |
Alternative revenue and other | All Other | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue and other | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | [1] | ||
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | ||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 7.00% | 7.10% | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (30.40%) | (24.80%) | ||
Plant regulatory differences | [2] | (7.80%) | (8.30%) | |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (1.30%) | (1.50%) | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 1.20% | 0.60% | ||
Effective Income Tax Rate Reconciliation, Percent, Total | (10.30%) | (5.90%) | ||
[1] | Prior periods have been restated to conform to current year presentation. | |||
[2] | 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 credits are offset by corresponding revenue reduction. |
Income Taxes Federal Audits (De
Income Taxes Federal Audits (Details) $ in Millions | Mar. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
State income tax adjustment | $ 0 |
Income Taxes Unrecognized Benef
Income Taxes Unrecognized Benefits (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ (2,000,000) | $ (2,000,000) | $ (2,000,000) | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 21,000,000 | 21,000,000 | ||
Unrecognized Tax Benefits That Would Not Impact Effective Tax Rate | 3,000,000 | 3,000,000 | ||
Unrecognized Tax Benefits | 24,000,000 | 24,000,000 | ||
Tax Benefits Associated With Nol And Tax Credit Carryforwards | 11,000,000 | 11,000,000 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 15,000,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 0 | $ 0 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 0 | $ 0 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Non-Derivative Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized Gain on Securities | $ 1,000 | $ 981 | ||
Unrealized Loss on Securities | 8 | 5 | ||
Nuclear Decommissioning Fund [Abstract] | ||||
Miscellaneous investments | 56 | 53 | ||
Final Contractual Maturity [Abstract] | ||||
Due in 1 Year or Less | 3 | |||
Due in 1 to 5 Years | 133 | |||
Due in 5 to 10 Years | 202 | |||
Due after 10 Years | 248 | |||
Total | 586 | |||
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Total | 1,833 | [1] | 1,801 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Cash equivalents | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Cash equivalents | 32 | [1] | 40 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Commingled Funds [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Commingled funds | 795 | [1] | 787 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Debt Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Debt securities | 562 | [1] | 528 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Equity Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Equity securities | 444 | [1] | 446 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
NAV | 1,052 | [1] | 1,041 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Cash equivalents | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Cash equivalents | 32 | [1] | 40 | [2] |
NAV | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Commingled Funds [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Commingled funds | 1,052 | [1] | 1,041 | [2] |
NAV | 1,052 | [1] | 1,041 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Debt Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Debt securities | 586 | [1] | 585 | [2] |
NAV | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Equity Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Equity securities | 1,155 | [1] | 1,111 | [2] |
NAV | 0 | [1] | 0 | [2] |
Total | 2,825 | [1] | 2,777 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Total | 1,185 | [1] | 1,149 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Cash equivalents | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Cash equivalents | 32 | [1] | 40 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Commingled Funds [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Commingled funds | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Debt Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Debt securities | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Equity Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Equity securities | 1,153 | [1] | 1,109 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Total | 575 | [1] | 574 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Cash equivalents | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Cash equivalents | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Commingled Funds [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Commingled funds | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Debt Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Debt securities | 573 | [1] | 572 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Equity Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Equity securities | 2 | [1] | 2 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Total | 13 | [1] | 13 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Cash equivalents | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Cash equivalents | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Commingled Funds [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Commingled funds | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Debt Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Debt securities | 13 | [1] | 13 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Equity Securities [Member] | ||||
Nuclear Decommissioning Fund [Abstract] | ||||
Equity securities | $ 0 | [1] | $ 0 | [2] |
[1] | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $56 million of rabbi trust assets and miscellaneous investments. | |||
[2] | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $53 million of rabbi trust assets and miscellaneous investments. |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Rabbi Trust (Details) - Rabbi Trust [Member] - Fair Value Measured on a Recurring Basis - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Cost | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | $ 16 | $ 15 |
Cost | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 6 | 1 |
Cost | Mutual Fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mutual funds | [1] | 10 | 14 |
Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | 18 | 17 |
Fair Value | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 6 | 1 |
Fair Value | Mutual Fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mutual funds | [1] | 12 | 16 |
Fair Value | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | 18 | 17 |
Fair Value | Level 1 | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 6 | 1 |
Fair Value | Level 1 | Mutual Fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mutual funds | [1] | 12 | 16 |
Fair Value | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | 0 | 0 |
Fair Value | Level 2 | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 0 | 0 |
Fair Value | Level 2 | Mutual Fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mutual funds | [1] | 0 | 0 |
Fair Value | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | 0 | 0 |
Fair Value | Level 3 | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 0 | 0 |
Fair Value | Level 3 | Mutual Fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mutual funds | [1] | $ 0 | $ 0 |
[1] | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets. |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Interest Rate Derivative (Details) - Interest Rate Derivatives $ in Millions | Mar. 31, 2021USD ($) |
Interest Rate Derivatives [Abstract] | |
Amount or interest rate derivatives expected to be reclassified | $ (1) |
Derivative Liability, Notional Amount | $ 0 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Commodity Derivatives (Details) MWh in Millions, MMBTU in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)MMBTUMWh | Mar. 31, 2020USD ($) | Dec. 31, 2020MMBTUMWh | ||
Other Derivative Instruments | ||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | $ 0 | |||
Cash flow hedge commodity | ||||
Derivative [Line Items] | ||||
Commodity contracts designated as cash flow hedges | $ 0 | |||
Electric commodity | ||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||
Derivative, Nonmonetary Notional amount | MWh | [1],[2] | 49 | 65 | |
Natural gas commodity | ||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 77 | 83 | |
Natural Gas Commodity | Other Derivative Instruments | ||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | $ 0 | $ 0 | ||
[1] | Amounts are not reflective of net positions in the underlying commodities. | |||
[2] | Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Consideration of Credit Risk and Concentrations (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)Counterparty | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | ||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Fair Value Hedges, Net | $ 0 | $ 0 | ||
Derivative instruments in a gross liability position | 4 | $ 4 | ||
Other Derivative Instruments | ||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | |||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 1 | |||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | ||
Pre-tax gains (losses) recognized during the period in income | 28 | 2 | ||
Commodity Trading Contract | Other Derivative Instruments | ||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | ||
Pre-tax gains (losses) recognized during the period in income | [1] | 31 | 4 | |
Natural Gas Commodity | Other Derivative Instruments | ||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | ||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 1 | |||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [2] | 1 | 1 | |
Pre-tax gains (losses) recognized during the period in income | [2] | (3) | (2) | |
Electric Commodity | Other Derivative Instruments | ||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [3] | 1 | (1) | |
Pre-tax gains (losses) recognized during the period in income | $ 0 | $ 0 | ||
Credit Concentration Risk | ||||
Derivative [Line Items] | ||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 10 | |||
Credit Concentration Risk | Municipal or Cooperative Entities or Other Utilities [Member] | ||||
Derivative [Line Items] | ||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 8 | |||
Credit Concentration Risk | External Credit Rating, Investment Grade [Member] | ||||
Derivative [Line Items] | ||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 6 | |||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 26 | |||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 52.00% | |||
Credit Concentration Risk | Internal Investment Grade [Member] | ||||
Derivative [Line Items] | ||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 3 | |||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 10 | |||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 20.00% | |||
Credit Concentration Risk | External Credit Rating, Non Investment Grade [Member] | ||||
Derivative [Line Items] | ||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 1 | |||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 8 | |||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 16.00% | |||
[1] | Amounts are 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. | |||
[2] | Amounts are recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. | |||
[3] | Amounts are 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. |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities - Credit Related Contingent Features (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Derivative instruments in a gross liability position | $ 4 | $ 4 |
Collateral posted related to adequate assurance clauses in derivative contracts | 0 | 0 |
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value | $ 29 | $ 14 |
Fair Value of Financial Asset_9
Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Derivatives, Fair Value [Line Items] | ||||
Obligation to return cash | $ 15 | $ 15 | ||
Right to reclaim cash | 11 | 1 | ||
Commodity Trading | ||||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||
Balance at beginning of period | (11) | $ 5 | ||
Settlements | (7) | (12) | ||
Gains (losses) recognized in earnings | [1] | 30 | 6 | |
Net gains (losses) recognized as regulatory assets and liabilities | 0 | 3 | ||
Balance at end of period | 12 | 2 | ||
Other Current Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 15 | 22 | ||
Other Noncurrent Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | 84 | 71 | ||
Fair Value Measured on a Recurring Basis | Level 3 | ||||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||
Transfers level 3, net | 0 | $ 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 30 | 43 | ||
Netting, asset | [2] | (22) | (26) | |
Derivative asset | 8 | 17 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 1 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 1 | 1 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 23 | 29 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 3 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 6 | 13 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 24 | 27 | ||
Netting, asset | [2] | (21) | (25) | |
Derivative asset | 3 | 2 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 6 | 13 | ||
Netting, asset | [2] | (1) | (1) | |
Derivative asset | 5 | 12 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 3 | ||
Netting, asset | [2] | 0 | 0 | |
Derivative asset | 0 | 3 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 1 | 1 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 23 | 26 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 3 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 6 | 13 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 66 | 46 | ||
Netting, asset | [2] | (40) | (41) | |
Derivative asset | 26 | 5 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 1 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 5 | 7 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 33 | 39 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 3 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 28 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 66 | 46 | ||
Netting, asset | [2] | (40) | (41) | |
Derivative asset | 26 | 5 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 1 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 5 | 7 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 2 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 33 | 39 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 3 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset, gross | 28 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 31 | 34 | ||
Netting, liability | [2] | (29) | (26) | |
Derivative liability | 2 | 8 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 1 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 4 | 3 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 22 | 20 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 3 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 5 | 11 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 31 | 31 | ||
Netting, liability | [2] | (29) | (25) | |
Derivative liability | 2 | 6 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 1 | ||
Netting, liability | [2] | 0 | (1) | |
Derivative liability | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 2 | ||
Netting, liability | [2] | 0 | 0 | |
Derivative liability | 0 | 2 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 4 | 3 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 22 | 18 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 2 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 5 | 10 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Electric Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 1 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Natural Gas Commodity | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 69 | 50 | ||
Netting, liability | [2] | (30) | (27) | |
Derivative liability | 39 | 23 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 1 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 2 | 2 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 50 | 35 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 3 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 17 | 13 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 69 | 50 | ||
Netting, liability | [2] | (30) | (27) | |
Derivative liability | 39 | 23 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 1 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 2 | 2 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 2 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 50 | 35 | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 3 | Commodity Trading | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, gross | 17 | 13 | ||
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | PPAs | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | [3] | 13 | 14 | |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | PPAs | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability | [3] | $ 45 | $ 48 | |
[1] | Level 3 gains recognized in earnings are subject to offsetting losses of derivative instruments categorized as levels 1 and 2 in the income statement. | |||
[2] | NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2021 and Dec. 31, 2020. At both March 31, 2021 and Dec. 31, 2020, derivative assets and liabilities include $15 million of obligations to return cash collateral. At March 31, 2021 and Dec. 31, 2020 derivative assets and liabilities include rights to reclaim cash collateral of $11 million and $1 million, respectively. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. | |||
[3] | During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Fair Value of Financial Asse_10
Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying amount | $ 6,741 | $ 5,904 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 7,491 | $ 7,391 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021USD ($)Plan | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | ||
Pension Plan [Member] | ||||
Components of Net Periodic Benefit Cost [Abstract] | ||||
Service Cost | $ 7 | $ 7 | ||
Interest cost (a) | [1] | 6 | 8 | |
Expected return on plan assets (a) | [1] | (13) | (14) | |
Amortization of prior service credit (a) | [1] | 0 | 0 | |
Amortization of net loss (a) | [1] | 9 | 8 | |
Net periodic benefit cost | 9 | 9 | ||
Effects of regulation | (1) | (1) | ||
Net benefit cost recognized for financial reporting | 8 | 8 | ||
Total contributions to the pension plans during the period | $ 33 | |||
Pension Plan [Member] | Xcel Energy Inc. | ||||
Components of Net Periodic Benefit Cost [Abstract] | ||||
Total contributions to the pension plans during the period | $ 125 | |||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 | |||
Other Postretirement Benefits Plan [Member] | ||||
Components of Net Periodic Benefit Cost [Abstract] | ||||
Service Cost | 0 | 0 | ||
Interest cost (a) | [1] | 1 | 1 | |
Expected return on plan assets (a) | [1] | 0 | 0 | |
Amortization of prior service credit (a) | [1] | (1) | (1) | |
Amortization of net loss (a) | [1] | 0 | 0 | |
Net periodic benefit cost | 0 | 0 | ||
Effects of regulation | 0 | 0 | ||
Net benefit cost recognized for financial reporting | $ 0 | $ 0 | ||
[1] | The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Commitments and Contingencies -
Commitments and Contingencies - Sherco (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jan. 31, 2021 | Jan. 27, 2021 | |
Rate Matters [Abstract] | ||
Customer refund of previously recovered purchased power costs | $ 17 | |
Amount MPUC previously disallowed related to Sherco outage | $ 22 |
Commitments and Contingencies_2
Commitments and Contingencies - Westmoreland Arbitration (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Gain (Loss) Related to Litigation Settlement | $ 36 |
Commitments and Contingencies_3
Commitments and Contingencies - MISO ROE Complaints (Details) - Federal Energy Regulatory Commission (FERC) - FERC Proceeding, MISO ROE Complaint - NSP Minnesota and NSP Wisconsin [Member] [Member] | 1 Months Ended | 3 Months Ended | 7 Months Ended | 10 Months Ended | 11 Months Ended | 17 Months Ended | |
Feb. 28, 2015 | Nov. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | |
Public Utilities, General Disclosures [Line Items] | |||||||
Public Utilities, Base Return On Equity Charged To Customers Through Transmission Formula Rates | 12.38% | 12.38% | |||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Recommended By Third Parties | 8.67% | 9.15% | |||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Approved | 10.32% | ||||||
Public Utilities, ROE developed with new approach | 9.88% | ||||||
Public Utilities, ROE New Base, Complaint Number 1 | 10.02% | ||||||
Basis Point Reduction | 1000.00% | ||||||
Basis Point Reduction - First Complaint | 100000000.00% | ||||||
Basis Point Reduction - Second Complaint | 100000000.00% | ||||||
Basis Point Reduction - Third Complaint | 200000000.00% |
Commitments and Contingencies_4
Commitments and Contingencies - FERC NOPR on ROE Incentive Adders (Details) | Mar. 31, 2021 |
Federal Energy Regulatory Commission (FERC) | NSP Minnesota, NSP Wisconsin and SPS | |
Public Utilities, General Disclosures [Line Items] | |
ROE incentive adders related to FERC NOPR | 50.00% |
Commitments and Contingencies_5
Commitments and Contingencies - Environmental, MGP, Landfill or Disposal Sites (Details) | Mar. 31, 2021 |
Other MGP, Landfill, or Disposal Sites | |
Site Contingency [Line Items] | |
Number of identified MGP, landfill, or disposal sites under current investigation and/or remediation | 7 |
Commitments and Contingencies_6
Commitments and Contingencies - Environmental Requirements - Water and Waste (Details) - Federal Coal Ash Regulation $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Site Contingency [Line Items] | |
Number of sites where regulated ash units will still be in operation at a specified date | 3 |
Number of sites where statistically significant increases over established groundwater standards exist | 0 |
Number of impoundments where closure plans will be expedited | 1 |
Cost of construction of a new impoundment | $ 9 |
Estimated cost of closure of an impoundment | $ 4 |
Time period of existing ash pond closure completion in accordance with the CCR rule | 5 years |
Commitments and Contingencies_7
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Cost | [1] | $ 21 | $ 23 | |
Lessee, Operating Lease, Liability, to be Paid | 564 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (57) | |||
Operating Lease, Liability | 507 | |||
Operating Lease, Liability, Current | (91) | $ (85) | ||
Operating lease liabilities | 416 | $ 443 | ||
Purchased Power Agreements | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Cost | 19 | 21 | ||
Lessee, Operating Lease, Liability, to be Paid | 485 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (43) | |||
Operating Lease, Liability | 442 | |||
Property, Plant and Equipment, Other Types | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Cost | [2] | 2 | $ 2 | |
Lessee, Operating Lease, Liability, to be Paid | 79 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (14) | |||
Operating Lease, Liability | $ 65 | |||
[1] | 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. | |||
[2] | Includes immaterial short-term lease expense for 2021 and 2020, respectively. |
Commitments and Contingencies_8
Commitments and Contingencies - Variable Interest Entities (Details) - MW | Mar. 31, 2021 | Dec. 31, 2020 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Variable Interest Entity [Line Items] | ||
Generating capacity under long term purchased power agreements | 1,347 | 1,347 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive (loss) income at beginning of period | $ 6,769 | |||
Accumulated other comprehensive (loss) income at end of period | 7,190 | |||
Income Tax Expense (Benefit) | (12) | $ (6) | ||
Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive (loss) income at beginning of period | (19) | (19) | ||
Accumulated other comprehensive (loss) income at end of period | (18) | (19) | ||
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Income Tax Expense (Benefit) | 0 | [1] | 0 | |
Gains and Losses on Cash Flow Hedges | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | 1 | 0 | |
Defined Benefit Pension and Postretirement Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive (loss) income at beginning of period | (3) | (3) | ||
Accumulated other comprehensive (loss) income at end of period | (3) | (3) | ||
Defined Benefit Pension and Postretirement Items | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | 0 | 0 | |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive (loss) income at beginning of period | (22) | (22) | ||
Accumulated other comprehensive (loss) income at end of period | (21) | (22) | ||
Total | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | $ 1 | $ 0 | |
[1] | Included in interest charges. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||
Net income | $ 128 | $ 107 | |
Natural gas | 204 | 206 | |
Other | 9 | 9 | |
Regulated and Unregulated Operating Revenue | 1,352 | 1,250 | |
Affiliate Revenue | 115 | 110 | |
Total revenues | |||
Segment Reporting Information [Line Items] | |||
Regulated and Unregulated Operating Revenue | [1],[2] | 1,352 | 1,250 |
Regulated Electric | |||
Segment Reporting Information [Line Items] | |||
Net income | 107 | 86 | |
Regulated Electric | Total revenues | |||
Segment Reporting Information [Line Items] | |||
Regulated Operating Revenue, Electric | [1] | 1,139 | 1,035 |
Regulated Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Net income | 20 | 23 | |
Regulated Natural Gas | Total revenues | |||
Segment Reporting Information [Line Items] | |||
Natural gas | [2] | 204 | 206 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Net income | 1 | (2) | |
All Other | Total revenues | |||
Segment Reporting Information [Line Items] | |||
Other | $ 9 | $ 9 | |
[1] | Total revenues include $115 million and $110 million of affiliate electric revenue for the three months ended March 31, 2021 and 2020. | ||
[2] | Total revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2021 and 2020. |