Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating revenues | ||||
Electric, non-affiliates | $ 1,076 | $ 1,191 | $ 2,207 | $ 2,316 |
Electric, affiliates | 113 | 133 | 238 | 262 |
Natural gas | 98 | 167 | 498 | 601 |
Other | 12 | 11 | 22 | 21 |
Total operating revenues | 1,299 | 1,502 | 2,965 | 3,200 |
Operating expenses | ||||
Electric fuel and purchased power | 518 | 578 | 1,023 | 1,107 |
Cost of natural gas sold and transported | 45 | 109 | 342 | 445 |
Cost of sales — other | 7 | 7 | 14 | 12 |
Operating and maintenance expenses | 326 | 304 | 651 | 610 |
Conservation program expenses | 25 | 41 | 56 | 90 |
Depreciation and amortization | 202 | 251 | 464 | 503 |
Taxes (other than income taxes) | 32 | 68 | 110 | 141 |
Total operating expenses | 1,155 | 1,358 | 2,660 | 2,908 |
Operating income | 144 | 144 | 305 | 292 |
Other income (expense), net | 2 | (5) | 2 | (5) |
Allowance for funds used during construction — equity | 9 | 6 | 17 | 12 |
Interest charges and financing costs | ||||
Interest charges — includes other financing costs of $2, $2, $4 and $4, respectively | 83 | 72 | 160 | 141 |
Allowance for funds used during construction — debt | (5) | (3) | (10) | (5) |
Total interest charges and financing costs | 78 | 69 | 150 | 136 |
Income before income taxes | 77 | 76 | 174 | 163 |
Income tax benefit | (50) | (42) | (92) | (82) |
Net income | $ 127 | $ 118 | $ 266 | $ 245 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Other financing costs | $ 2 | $ 2 | $ 4 | $ 4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Comprehensive income: | ||||
Net income | $ 127 | $ 118 | $ 266 | $ 245 |
Derivative instruments: | ||||
Net fair value increase net of tax of $2, $—, $1 and $— respectively | (6) | 0 | (3) | 0 |
Total other comprehensive income | 6 | 0 | 3 | 0 |
Total comprehensive income | $ 133 | $ 118 | $ 269 | $ 245 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification of losses on derivatives to net income, tax | $ 2 | $ 0 | $ 1 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income | $ 266 | $ 245 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 466 | 507 |
Nuclear fuel amortization | 53 | 61 |
Deferred income taxes | (65) | (144) |
Allowance for equity funds used during construction | (17) | (12) |
Provision for bad debts | 13 | 9 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 43 | (16) |
Accrued unbilled revenues | 81 | 13 |
Inventories | 35 | (28) |
Other current assets | 2 | 1 |
Accounts payable | (81) | 50 |
Net regulatory assets and liabilities | 192 | 258 |
Other current liabilities | 95 | 12 |
Pension and other employee benefit obligations | (19) | (7) |
Other, net | 9 | 20 |
Net cash provided by operating activities | 1,073 | 969 |
Investing activities | ||
Capital/construction expenditures | (1,103) | (752) |
Purchase of investment securities | (416) | (787) |
Proceeds from the sale of investment securities | 398 | 769 |
Investments in utility money pool arrangement | (69) | (856) |
Repayments from utility money pool arrangement | 5 | 855 |
Other, net | (2) | 2 |
Net cash used in investing activities | (1,187) | (769) |
Financing activities | ||
Repayments of short-term borrowings, net | (207) | 0 |
Borrowings under utility money pool arrangement | 189 | 0 |
Repayments under utility money pool arrangement | (189) | 0 |
Proceeds from issuance of long-term debt | 783 | 489 |
Repayment of long-term debt | (400) | (300) |
Capital contributions from parent | 251 | (7) |
Dividends paid to parent | (254) | (263) |
Net cash provided by (used) in financing activities | 173 | (81) |
Net change in cash, cash equivalents and restricted cash | 59 | 119 |
Cash, cash equivalents and restricted cash at beginning of period | 65 | 73 |
Cash, cash equivalents and restricted cash at end of period | 124 | 192 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (137) | (129) |
Cash received from (paid for) income taxes, net | 43 | (25) |
Other Noncash Investing and Financing Items [Abstract] | ||
Accrued property, plant and equipment additions | 158 | 148 |
Inventory transfers to property, plant and equipment | 26 | 9 |
Allowance for equity funds used during construction | 17 | 12 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 29 | $ 4 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash, cash equivalents and restricted cash at beginning of period | $ 124 | $ 65 |
Accounts receivable, net | 465 | 534 |
Investments in money pool arrangements | 64 | 0 |
Accrued unbilled revenues | 291 | 372 |
Inventories | 323 | 384 |
Regulatory assets | 310 | 384 |
Derivative instruments | 110 | 89 |
Prepayments and other | 69 | 62 |
Total current assets | 1,775 | 1,935 |
Property, plant and equipment, net | 17,967 | 17,478 |
Other assets | ||
Nuclear decommissioning fund and other investments | 3,127 | 2,930 |
Regulatory assets | 751 | 894 |
Derivative instruments | 61 | 68 |
Operating lease right-of-use assets | 306 | 324 |
Other | 24 | 29 |
Total other assets | 4,269 | 4,245 |
Total assets | 24,011 | 23,658 |
Current liabilities | ||
Current portion of long-term debt | 0 | 400 |
Short-term debt | 0 | 207 |
Regulatory liabilities | 244 | 191 |
Taxes accrued | 247 | 272 |
Accrued interest | 84 | 79 |
Dividends payable to parent | 112 | 122 |
Derivative instruments | 44 | 42 |
Operating lease liabilities | 97 | 98 |
Other | 364 | 227 |
Total current liabilities | 1,779 | 2,346 |
Deferred credits and other liabilities | ||
Deferred income taxes | 1,652 | 1,666 |
Deferred investment tax credits | 15 | 15 |
Regulatory liabilities | 2,045 | 1,983 |
Asset retirement obligations | 2,628 | 2,727 |
Derivative instruments | 91 | 102 |
Pension and employee benefit obligations | 136 | 155 |
Operating lease liabilities | 235 | 256 |
Other | 30 | 30 |
Total deferred credits and other liabilities | 6,832 | 6,934 |
Capitalization | ||
Long-term debt | 7,328 | 6,542 |
Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares outstanding at June 30, 2023 and Dec. 31, 2022, respectively | $ 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 | $ 5,585 | $ 5,374 |
Retained earnings | 2,502 | 2,480 |
Accumulated other comprehensive loss | (15) | (18) |
Total common stockholder's equity | 8,072 | 7,836 |
Total liabilities and equity | 24,011 | 23,658 |
Nonrelated Party | ||
Current assets | ||
Accounts receivable, net | 465 | 534 |
Current liabilities | ||
Accounts payable | 501 | 619 |
Related Party | ||
Current assets | ||
Accounts receivable, net | 19 | 45 |
Current liabilities | ||
Accounts payable | $ 86 | $ 89 |
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, 2021 | 1,000,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 7,573 | $ 0 | $ 5,202 | $ 2,391 | $ (20) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 245 | 245 | |||
Other comprehensive income | 0 | ||||
Dividends declared on common stock | (281) | (281) | |||
Contribution of capital by parent | 11 | 11 | |||
Balance (in shares) at Jun. 30, 2022 | 1,000,000 | ||||
Ending balance at Jun. 30, 2022 | 7,548 | $ 0 | 5,213 | 2,355 | (20) |
Balance (in shares) at Mar. 31, 2022 | 1,000,000 | ||||
Beginning balance at Mar. 31, 2022 | 7,533 | $ 0 | 5,202 | 2,351 | (20) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 118 | 118 | |||
Other comprehensive income | 0 | ||||
Dividends declared on common stock | (114) | (114) | |||
Contribution of capital by parent | 11 | 11 | |||
Balance (in shares) at Jun. 30, 2022 | 1,000,000 | ||||
Ending balance at Jun. 30, 2022 | $ 7,548 | $ 0 | 5,213 | 2,355 | (20) |
Balance (in shares) at Dec. 31, 2022 | 1,000,000 | 1,000,000 | |||
Beginning balance at Dec. 31, 2022 | $ 7,836 | $ 0 | 5,374 | 2,480 | (18) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 266 | 266 | |||
Other comprehensive income | 3 | 3 | |||
Dividends declared on common stock | (244) | (244) | |||
Contribution of capital by parent | $ 211 | 211 | |||
Balance (in shares) at Jun. 30, 2023 | 1,000,000 | 1,000,000 | |||
Ending balance at Jun. 30, 2023 | $ 8,072 | $ 0 | 5,585 | 2,502 | (15) |
Balance (in shares) at Mar. 31, 2023 | 1,000,000 | ||||
Beginning balance at Mar. 31, 2023 | 7,950 | $ 0 | 5,484 | 2,487 | (21) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 127 | 127 | |||
Other comprehensive income | 6 | 6 | |||
Dividends declared on common stock | (112) | (112) | |||
Contribution of capital by parent | $ 101 | 101 | |||
Balance (in shares) at Jun. 30, 2023 | 1,000,000 | 1,000,000 | |||
Ending balance at Jun. 30, 2023 | $ 8,072 | $ 0 | $ 5,585 | $ 2,502 | $ (15) |
Management's Opinion
Management's Opinion | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and Dec. 31, 2022; the results of NSP-Minnesota’s operations, including the components of net income and comprehensive income, and changes in stockholder’s equity for the three and six months ended June 30, 2023 and 2022; and NSP-Minnesota’s cash flows for the six months ended June 30, 2023 and 2022. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2023 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, 2022 balance sheet information has been derived from the audited 2022 consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022. Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2022, filed with the SEC on Feb. 23, 2023. Due to the seasonality of NSP-Minnesota’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | As of June 30, 2023, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on NSP-Minnesota’s consolidated financial statements. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 6 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | (Millions of Dollars) June 30, 2023 Dec. 31, 2022 Accounts receivable, net Accounts receivable $ 509 $ 580 Less allowance for bad debts (44) (46) Accounts receivable, net $ 465 $ 534 (Millions of Dollars) June 30, 2023 Dec. 31, 2022 Inventories Materials and supplies $ 209 $ 200 Fuel 103 103 Natural gas 11 81 Total inventories $ 323 $ 384 (Millions of Dollars) June 30, 2023 Dec. 31, 2022 Property, plant and equipment, net Electric plant $ 20,492 $ 20,114 Natural gas plant 2,154 2,100 Common and other property 1,229 1,156 Plant to be retired (a) 624 646 Construction work in progress 973 907 Total property, plant and equipment 25,472 24,923 Less accumulated depreciation (7,838) (7,734) Nuclear fuel 3,278 3,183 Less accumulated amortization (2,945) (2,894) Property, plant and equipment, net $ 17,967 $ 17,478 (a) Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King. Amounts are reported net of accumulated depreciation. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 6 Months Ended |
Jun. 30, 2023 | |
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 and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy. Money pool borrowings: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 250 $ 250 Amount outstanding at period end — — Average amount outstanding 49 — Maximum amount outstanding 135 4 Weighted average interest rate, computed on a daily basis 4.81 % 3.87 % Weighted average interest rate at period end N/A N/A Commercial Paper — Commercial paper outstanding: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 207 Average amount outstanding 30 21 Maximum amount outstanding 150 290 Weighted average interest rate, computed on a daily basis 4.99 % 4.14 % Weighted average interest rate at period end N/A 4.64 Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There w ere $15 million of letters of credit outstanding under the credit facility at both June 30, 2023 and Dec. 31, 2022. 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 equal to or greater than the commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. 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 June 30, 2023, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 15 $ 685 (a) Expires in September 2027. (b) Includes outstanding commercial paper and letters of credit. All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Minnesota h ad no d irect advances on the credit facility outstanding at June 30, 2023 and Dec. 31, 2022. Bilateral Credit Agreement — In April 2023, NSP-Minnesota’s uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit. As of June 30, 2023, NSP-Minnesota had $57 million of outstanding letters of credit under the $75 million bilateral credit agreement. Long-Term Borrowings During the six months ended June 30, 2023, NSP-Minnesota issued $800 million of 5.10% first mortgage bonds due May 15, 2053. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 317 $ 42 $ 10 $ 369 C&I 517 40 — 557 Other 9 — 2 11 Total retail 843 82 12 937 Wholesale 80 — — 80 Transmission 66 — — 66 Interchange and other 108 3 — 111 Total revenue from contracts with customers 1,097 85 12 1,194 Alternative revenue and other 92 13 — 105 Total revenues $ 1,189 $ 98 $ 12 $ 1,299 Three Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 338 $ 76 $ 3 $ 417 C&I 588 76 — 664 Other 10 — 8 18 Total retail 936 152 11 1,099 Wholesale 138 — — 138 Transmission 63 — — 63 Interchange and other 128 3 — 131 Total revenue from contracts with customers 1,265 155 11 1,431 Alternative revenue and other 59 12 — 71 Total revenues $ 1,324 $ 167 $ 11 $ 1,502 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Reconciliation between the statutory rate and ETR: Six Months Ended June 30 2023 2022 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 7.0 7.0 (Decreases) increases: Wind PTCs (a) (74.7) (71.7) Plant regulatory differences (b) (6.7) (6.2) Other tax credits, net operating loss & tax credit allowances (1.5) (1.5) Other (net) 2.0 1.1 Effective income tax rate (52.9) % (50.3) % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b) Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit are offset by corresponding revenue reductions. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 7. Fair Value of Financial Assets and Liabilities Fair Value Measurements Accounting guidance for fair value measurements and disclosures provides a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value. • Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are actively traded instruments with observable actual trading prices. • Level 2 — Pricing inputs are other than actual trading prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. • Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 include those valued with models requiring significant judgment or estimation. Specific valuation methods include: 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 funds 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 may be redeemed with proper notice, however, withdrawals may be delayed or discounted as a result of fund illiquidity. Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. Interest rate derivatives — Fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contracts relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification. Electric commodity derivatives held by NSP-Minnesota include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from an RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path. The values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments. FTRs are recognized at fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction values of FTRs, these fair value measurements have been assigned a Level 3 classification . Net congestion costs, including the impact of FTR settlements are shared through fuel and purchased energy cost recovery mechanisms. As such, the fair value of the unsettled instruments (i.e., derivative asset or liability) is offset/deferred as a regulatory asset or liability. Non-Derivative Fair Value Measurements The Nuclear Regulatory Commission requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning these facilities. The fund contains cash equivalents, debt securities, equity securities and other investments. NSP-Minnesota uses the MPUC approved asset allocation for the investment targets by asset class for the qualified trust. NSP-Minnesota recognizes the costs of funding the decommissioning over the lives of the nuclear plants, assuming rate recovery of all costs. Realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota’s regulatory asset for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund are deferred as a component of the regulatory asset. Unrealized gains for the nuclear decommissioning fund were $1 billion as of June 30, 2023 and Dec. 31, 2022, and unrealized losses were $68 million and $90 million as of June 30, 2023 and Dec. 31, 2022, respectively. Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund: June 30, 2023 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 NAV Total Nuclear decommissioning fund (a) Cash equivalents $ 35 $ 35 $ — $ — $ — $ 35 Commingled funds 736 — — — 1,061 1,061 Debt securities 780 — 724 8 — 732 Equity securities 508 1,248 2 — — 1,250 Total $ 2,059 $ 1,283 $ 726 $ 8 $ 1,061 $ 3,078 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $49 million of other investments, including the rabbi trust. Dec. 31, 2022 Fair Value (Millions of Dollars) Cost Level 1 Level 2 Level 3 NAV Total Nuclear decommissioning fund (a) Cash equivalents $ 29 $ 29 $ — $ — $ — $ 29 Commingled funds 803 — — — 1,178 1,178 Debt securities 738 — 669 6 — 675 Equity securities 406 999 1 — — 1,000 Total $ 1,976 $ 1,028 $ 670 $ 6 $ 1,178 $ 2,882 (a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $48 million of other investments, including the rabbi trust. For the three and six months ended June 30, 2023 and 2022, there were immaterial Level 3 nuclear decommissioning fund investments or transfer of amounts between levels. Contractual maturity dates of debt securities in the nuclear decommissioning fund as of June 30, 2023: 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 $ 4 $ 229 $ 259 $ 240 $ 732 Derivative Activities and Fair Value Measurements NSP-Minnesota enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices. Interest Rate Derivatives — NSP-Minnesota enters into contracts that effectively fix the interest rate on a specified principal amount of a hypothetical future debt issuance. These financial swaps net settle based on changes in a specified benchmark interest rate, acting as a hedge of changes in market interest rates that will impact specified anticipated debt issuances. These derivative instruments are designated as cash flow hedges for accounting purposes, with changes in fair value prior to occurrence of the hedged transactions recorded as other comprehensive income. As of June 30, 2023, accumulated other comprehensive loss related to interest rate derivatives included $1 million of net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of June 30, 2023, NSP-Minnesota had no unsettled interest rate derivatives. See Note 10 for the financial impact of qualifying interest rate cash flow hedges on NSP-Minnesota’s accumulated other comprehensive loss included in the consolidated statements of common stockholder’s equity and in the consolidated statements of comprehensive income. Wholesale and Commodity Trading — NSP-Minnesota conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy, energy-related instruments and natural gas-related instruments, including derivatives. NSP-Minnesota is allowed to conduct these activities within guidelines and limitations as approved by its risk management committee, comprised of management personnel not directly involved in the activities governed by this policy. Results of derivative instrument transactions entered into for trading purposes are presented in the consolidated statements of income as electric revenues, net of any sharing with customers. These activities are not intended to mitigate commodity price risk associated with regulated electric and natural gas operations. Sharing of these 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. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale and FTRs. The most significant derivative positions outstanding at June 30, 2023 for this purpose relate to FTR instruments administered by MISO. These instruments are intended to offset the impacts of transmission system congestion. Higher congestion costs in recent years have led to an increase in the fair value of FTRs. Settlements of FTRs are shared with electric customers through fuel and purchased energy cost-recovery mechanisms. When NSP-Minnesota enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers, the instruments are not typically designated as qualifying hedging transactions. The classification of unrealized losses or gains on these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms. As of June 30, 2023, NSP-Minnesota had no commodity contracts designated as cash flow hedges. Gross notional amounts of commodity forwards, options and FTRs: (Amounts in Millions) (a)(b) June 30, 2023 Dec. 31, 2022 Megawatt hours of electricity 70 44 Million British thermal units of natural gas 78 88 (a) Not reflective of net positions in the underlying commodities. (b) Notional amounts for options included on a gross basis but weighted for the probability of exercise. 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 June 30, 2023, six of NSP-Minnesota’s nine most significant counterparties for these activities, comprising $36 million, or 32%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Two of the nine most significant counterparties, comprising $24 million, or 22%, of this credit exposure, were not rated by these external ratings agencies, but based on NSP-Minnesota’s internal analysis, had credit quality consistent with investment grade. One of these significant counterparties, comprising $49 million or 44% of this credit exposure, had credit quality less than investment grade, based on internal analysis. Five of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities. Credit Related Contingent Features — Contract provisions for derivative instruments that the utility subsidiaries enter, including those accounted for as normal purchase and normal sale contracts and therefore not reflected on the consolidated balance sheets, may require the posting of collateral or settlement of the contracts for various reasons, including if the applicable utility subsidiary’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies. As of June 30, 2023 and Dec. 31, 2022, there were $10 million and $4 million, respectively, of derivative liabilities with such underlying contract provisions, respectively. Certain contracts also contain cross default provisions that may require the posting of collateral or settlement of the contracts if there was a failure under other financing arrangements related to payment terms or other covenants. As of June 30, 2023 and Dec. 31, 2022, there were approximately $88 million and $76 million of derivative liabilities with such underlying contract provisions, respectively. Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that a given utility subsidiary’s ability to fulfill its contractual obligations is reasonably expected to be impaired. NSP-Minnesota had no collateral posted related to adequate assurance clauses in derivative contracts as of June 30, 2023 and Dec. 31, 2022. Recurring Derivative Fair Value Measurements Impact of derivative activity: 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 June 30, 2023 Derivatives designated as cash flow hedges: Interest rate $ 8 $ — Total $ 8 $ — Other derivative instruments: Electric commodity $ — $ (11) Total $ — $ (11) Six Months Ended June 30, 2023 Derivatives designated as cash flow hedges: Interest rate $ 4 $ — Total $ 4 $ — Other derivative instruments: Electric commodity $ — $ (28) Natural gas commodity — 2 Total $ — $ (26) Three Months Ended June 30, 2022 Other derivative instruments: Electric commodity $ — $ 7 Natural gas commodity $ — $ (1) Total $ — $ 6 Six Months Ended June 30, 2022 Other derivative instruments: Electric commodity $ — $ 6 Natural gas commodity $ — $ 2 Total $ — $ 8 . Pre-Tax (Gains) Losses Reclassified into Income During the Period from: Pre-Tax Gains (Losses) Recognized During the Period in Income (Millions of Dollars) Regulatory Assets and Liabilities Three Months Ended June 30, 2023 Other derivative instruments: Electric commodity 7 (a) — Total $ 7 $ — Six Months Ended June 30, 2023 Other derivative instruments: Commodity trading $ — $ (1) (b) Electric commodity 21 (a) — Natural gas commodity — (5) (c)(d) Total $ 21 $ (6) Three Months Ended June 30, 2022 Other derivative instruments: Commodity trading $ — $ 5 (b) Electric commodity (1) (a) — Total $ (1) $ 5 Six Months Ended June 30, 2022 Other derivative instruments: Commodity trading $ — $ 6 (b) Electric commodity (3) (a) — Natural gas commodity 2 (c) (5) (c)(d) Total $ (1) $ 1 (a) Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value (b) Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers. (c) Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate. (d) Relates primarily to option premium amortization. NSP-Minnesota had no derivative instruments designated as fair value hedges during the six months ended June 30, 2023 and 2022. Derivative assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2023 Dec. 31, 2022 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 $ 5 $ 46 $ 34 $ 85 $ (51) $ 34 $ 15 $ 38 $ 33 $ 86 $ (58) $ 28 Electric commodity — — 75 75 (2) 73 — — 58 58 (2) 56 Natural gas commodity — 3 — 3 — 3 — 5 — 5 — 5 Total current derivative assets $ 5 $ 49 $ 109 $ 163 $ (53) $ 110 $ 15 $ 43 $ 91 $ 149 $ (60) $ 89 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 12 $ 38 $ 57 $ 107 $ (46) $ 61 $ 21 $ 40 $ 66 $ 127 $ (59) $ 68 Total noncurrent derivative assets $ 12 $ 38 $ 57 $ 107 $ (46) $ 61 $ 21 $ 40 $ 66 $ 127 $ (59) $ 68 June 30, 2023 Dec. 31, 2022 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 $ 8 $ 74 $ 5 $ 87 $ (57) $ 30 $ 23 $ 60 $ 6 $ 89 $ (63) $ 26 Electric commodity — — 2 2 (2) — — — 2 2 (2) — Natural gas commodity — — — — — — — 2 — 2 — 2 Total current derivative liabilities $ 8 $ 74 $ 7 $ 89 $ (59) 30 $ 23 $ 62 $ 8 $ 93 $ (65) 28 PPAs (b) 14 14 Current derivative instruments $ 44 $ 42 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 19 $ 51 $ 42 $ 112 $ (46) $ 66 $ 37 $ 55 $ 42 $ 134 $ (60) $ 74 Total noncurrent derivative liabilities $ 19 $ 51 $ 42 $ 112 $ (46) 66 $ 37 $ 55 $ 42 $ 134 $ (60) 74 PPAs (b) 25 28 Noncurrent derivative instruments $ 91 $ 102 (a) NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At June 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral. At both June 30, 2023 and Dec. 31, 2022 derivative assets and liabilities include rights to reclaim cash collateral of $6 million. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. Changes in Level 3 commodity derivatives: Three Months Ended June 30 (Millions of Dollars) 2023 2022 Balance at April 1 $ 46 $ 76 Purchases (a) 97 158 Settlements (a) (15) (73) Net transactions recorded during the period: Gains recognized in earnings (b) 12 41 Net (losses) gains recognized as regulatory assets and liabilities (a) (23) 28 Balance at June 30 $ 117 $ 230 Six Months Ended June 30 (Millions of Dollars) 2023 2022 Balance at Jan. 1 $ 107 $ 56 Purchases (a) 97 157 Settlements (a) (28) (92) Net transactions recorded during the period: (Losses) gains recognized in earnings (b) (2) 91 Net (losses) gains recognized as regulatory assets and liabilities (a) (57) 18 Balance at June 30 $ 117 $ 230 (a) Relates primarily to FTR instruments administered by MISO. (b) Relates to commodity trading and is subject to substantial offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses. Fair Value of Long-Term Debt As of June 30, 2023, other financial instruments for which the carrying amount did not equal fair value: June 30, 2023 Dec. 31, 2022 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 7,328 $ 6,368 $ 6,942 $ 5,995 Fair value of NSP-Minnesota’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of June 30, 2023 and Dec. 31, 2022, 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 | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Components of Net Periodic Benefit Cost Three Months Ended June 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 5 $ 7 $ — $ — Interest cost (a) 9 6 1 — Expected return on plan assets (a) (11) (12) — — Amortization of net loss (a) 3 6 — — Net periodic benefit cost 6 7 1 — Effects of regulation 3 — — — Net benefit cost recognized for financial reporting $ 9 $ 7 $ 1 $ — Six Months Ended June 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 10 $ 14 $ — $ — Interest cost (a) 18 12 1 1 Expected return on plan assets (a) (23) (24) — — Amortization of prior service credit (a) — — — (1) Amortization of net loss (a) 6 12 — — Settlement charge (b) — (1) — — Net periodic benefit cost 11 13 1 — Effects of regulation 5 1 — — Net benefit cost recognized for financial reporting $ 16 $ 14 $ 1 $ — (a) The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. (b) In the six months ended June 30, 2022, Xcel Energy recognized $1 million in settlement charge true-ups related to the fourth quarter of 2021. In January 2023, contributions totaling $50 million were made across Xcel Energy’s pension plans, of which $23 million was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2023. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Minnesota’s consolidated financial statements. Legal fees are generally expensed as incurred. Rate Matters and Other NSP-Minnesota is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the consolidated financial statements. Sherco — In 2018, NSP-Minnesota and SMMPA (Co-owner of Sherco Unit 3) reached a settlement with GE related to a 2011 incident, which damaged the turbine at Sherco Unit 3 and resulted in an extended outage for repair. NSP-Minnesota notified the MPUC of its proposal to refund settlement proceeds to customers through the fuel clause adjustment. In March 2019, the MPUC approved NSP-Minnesota’s settlement refund proposal. Additionally, the MPUC decided to withhold any decision as to NSP-Minnesota’s prudence in connection with the incident at Sherco Unit 3 until after conclusion of an appeal pending between GE and NSP-Minnesota’s insurers. In February 2020, the Minnesota Court of Appeals affirmed the district court’s judgment in favor of GE. In March 2020, NSP-Minnesota’s insurers filed a petition seeking additional review by the Minnesota Supreme Court. In April 2020, the Minnesota Supreme Court denied the insurers’ petition for further review, ending the litigation. In January 2021, the OAG and DOC recommended that NSP-Minnesota refund approximately $17 million of replacement power costs previously recovered through the fuel clause adjustment. NSP-Minnesota subsequently filed its response, asserting that it acted prudently in connection with the Sherco Unit 3 outage, the MPUC has previously disallowed $22 million of related costs and no additional refund or disallowance is appropriate. In July 2022, the MPUC referred the matter to the Office of Administrative Hearings to conduct a contested case on the prudence of the replacement power costs incurred by NSP-Minnesota. In June 2023, NSP-Minnesota and the DOC filed direct testimony. The DOC changed its recommendation to a refund of either $58 million or $72 million based on methodologies that do not account for prior disallowances or other amounts returned to customers plus interest. No other party filed direct testimony. A final decision by the MPUC is expected in mid-2024. A loss related to this matter is deemed remote. 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%. The FERC subsequently issued various related orders (including Opinion Nos. 569, 569A and 569B) related to ROE methodology/calculations and timing. NSP-Minnesota has processed refunds to customers for applicable complaint periods based on the ROE in the most recent applicable opinions. The MISO TOs and various other parties have filed petitions for review of the FERC’s most recent applicable opinions at the D.C. Circuit. In August 2022, the D.C. Circuit ruled that FERC had not adequately supported its conclusions, vacated FERC’s related orders, and remanded the issue back to FERC for further proceedings, which remain pending. Additional exposure, if any related to this matter is expected to be immaterial. Environmental MGP, Landfill and Disposal Sites NSP-Minnesota is investigating, remediating or performing post-closure actions at seven MGP, landfill or other disposal sites across its service territories. NSP-Minnesota has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. Environmental Requirements — Water and Waste Coal Ash Regulation — NSP-Minnesota’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste. Under the CCR Rule, utilities are required to complete groundwater sampling around their applicable 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. Federal Clean Water Act Section 316(b) — The Federal Clean Water Act requires the EPA to regulate cooling water intake structures to assure they reflect the best technology available for minimizing impingement and entrainment of aquatic species. NSP-Minnesota estimates capital expenditures of approximately $45 million may be required to comply with the requirements. NSP-Minnesota anticipates these costs will be recoverable through regulatory mechanisms. Monticello Tritium — Monticello regularly monitors onsite tritium levels (a weak radioactive isotope that is a byproduct of plant operations) from releases in groundwater monitoring wells onsite. In late 2022, Xcel Energy detected a release of tritium to groundwater and reported the event to the NRC and the State of Minnesota. Xcel Energy has completed repairs, replaced the source of the release and is in the process of mitigating the impact to groundwater, while continuing to monitor onsite wells and evaluating potential future actions for additional containment. The release does not represent a risk to human health or the environment. Environmental Requirements — Air Clean Air Act NOx Allowance Allocations — In June 2023, after disapproving state implementation plans, the EPA published final regulations under the "Good Neighbor" provisions of the Clean Air Act. The final rule applies to generation facilities in Minnesota, as well as other states outside of our service territory. The rule establishes an allowance trading program for NOx that will impact NSP-Minnesota’s fossil fuel-fired electric generating facilities. Applicable facilities will have to secure additional allowances, install NOx controls and/or develop a strategy of operations that utilizes the existing allowance allocations. Guidelines are also established for allowance banking and emission limit backstops. While the financial impacts of the final rule are uncertain and dependent on market forces and anticipated generation, NSP-Minnesota anticipates the annual costs could be significant, but would be recoverable through regulatory mechanisms. NSP-Minnesota has joined other impacted companies in litigation challenging the EPA’s disapproval of Minnesota’s state implementation plan. Currently, the regulation is under a judicial stay for Minnesota and not applicable to NSP-Minnesota until litigation concludes. 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 June 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 24 $ 24 Other operating leases (a) 5 2 Total operating lease expense (b) $ 29 $ 26 (a) Includes short-term lease expense of $2 million and $1 million for 2023 and 2022, respectively. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Six Months Ended June 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 49 $ 49 Other operating leases (a) 9 4 Total operating lease expense (b) $ 58 $ 53 (a) Includes short-term lease expense of $3 million and $1 million for 2023 and 2022, respectively. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Commitments under operating leases as of June 30, 2023: (Millions of Dollars) PPA Operating Other Operating Leases Total Leases Total minimum obligation $ 269 $ 131 $ 400 Interest component of obligation (14) (54) (68) Present value of minimum obligation $ 255 $ 77 332 Less current portion (97) Noncurrent operating lease liabilities $ 235 Variable Interest Entities Under certain PPAs, NSP-Minnesota purchases power from IPPs for which NSP-Minnesota is required to reimburse fuel costs, or to participate in tolling arrangements under which NSP-Minnesota procures the natural gas required to produce the energy that they purchase . These specific PPAs create a variable interest in the IPP. NSP-Minnesota had approximately 1,347 MW and 1,322 MW of capacity under long-term PPAs at June 30, 2023 and Dec. 31, 2022, respectively, with entities that have been determined to be variable interest entities. NSP-Minnesota concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the ent ities’ economic performance. The PPAs have expiration dates through 2039. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss, net of tax: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (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 April 1 $ (19) $ (2) $ (21) $ (17) $ (3) $ (20) Other comprehensive gain before reclassifications 6 — 6 — — — Accumulated other comprehensive loss at June 30 $ (13) $ (2) $ (15) $ (17) $ (3) $ (20) Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (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 $ (16) $ (2) $ (18) $ (17) $ (3) $ (20) Other comprehensive gain before reclassifications 3 — 3 — — — Accumulated other comprehensive loss at June 30 $ (13) $ (2) $ (15) $ (17) $ (3) $ (20) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues (a) $ 1,189 $ 1,324 Net income 134 113 Regulated Natural Gas Operating revenues (b) $ 98 $ 167 Intersegment revenue — 1 Total revenues $ 98 $ 168 Net (loss) income (9) 4 All Other Total revenues $ 12 $ 11 Net loss 2 1 Consolidated Total Operating revenues (a)(b) $ 1,299 $ 1,503 Reconciling eliminations — (1) Total operating revenues $ 1,299 $ 1,502 Net income 127 118 (a) Operating revenues include $113 million and $133 million of affiliate electric revenue for the three months ended June 30, 2023 and 2022. (b) Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended June 30, 2023 and 2022. Six Months Ended June 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues (a) $ 2,445 $ 2,578 Net income 245 211 Regulated Natural Gas Operating revenues (b) $ 498 $ 601 Intersegment revenue 1 1 Total revenues $ 499 $ 602 Net income 21 33 All Other Total revenues $ 22 $ 21 Net income — 1 Consolidated Total Operating revenues (a)(b) $ 2,966 $ 3,201 Reconciling eliminations (1) (1) Total operating revenues $ 2,965 $ 3,200 Net income 266 245 |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of Dollars) June 30, 2023 Dec. 31, 2022 Accounts receivable, net Accounts receivable $ 509 $ 580 Less allowance for bad debts (44) (46) Accounts receivable, net $ 465 $ 534 |
Inventories | (Millions of Dollars) June 30, 2023 Dec. 31, 2022 Inventories Materials and supplies $ 209 $ 200 Fuel 103 103 Natural gas 11 81 Total inventories $ 323 $ 384 |
Property, plant and equipment, net | (Millions of Dollars) June 30, 2023 Dec. 31, 2022 Property, plant and equipment, net Electric plant $ 20,492 $ 20,114 Natural gas plant 2,154 2,100 Common and other property 1,229 1,156 Plant to be retired (a) 624 646 Construction work in progress 973 907 Total property, plant and equipment 25,472 24,923 Less accumulated depreciation (7,838) (7,734) Nuclear fuel 3,278 3,183 Less accumulated amortization (2,945) (2,894) Property, plant and equipment, net $ 17,967 $ 17,478 (a) Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King. Amounts are reported net of accumulated depreciation. |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | At June 30, 2023, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 15 $ 685 (a) Expires in September 2027. (b) Includes outstanding commercial paper and letters of credit. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 250 $ 250 Amount outstanding at period end — — Average amount outstanding 49 — Maximum amount outstanding 135 4 Weighted average interest rate, computed on a daily basis 4.81 % 3.87 % 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: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 207 Average amount outstanding 30 21 Maximum amount outstanding 150 290 Weighted average interest rate, computed on a daily basis 4.99 % 4.14 % Weighted average interest rate at period end N/A 4.64 |
Series Due May 15, 2053 | Bonds [Member] | |
Borrowings and Other Financing Instruments [Abstract] | |
Debt Instrument, Face Amount | $ 800 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | NSP-Minnesota’s operating revenues consisted of the following: Three Months Ended June 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 317 $ 42 $ 10 $ 369 C&I 517 40 — 557 Other 9 — 2 11 Total retail 843 82 12 937 Wholesale 80 — — 80 Transmission 66 — — 66 Interchange and other 108 3 — 111 Total revenue from contracts with customers 1,097 85 12 1,194 Alternative revenue and other 92 13 — 105 Total revenues $ 1,189 $ 98 $ 12 $ 1,299 Three Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 338 $ 76 $ 3 $ 417 C&I 588 76 — 664 Other 10 — 8 18 Total retail 936 152 11 1,099 Wholesale 138 — — 138 Transmission 63 — — 63 Interchange and other 128 3 — 131 Total revenue from contracts with customers 1,265 155 11 1,431 Alternative revenue and other 59 12 — 71 Total revenues $ 1,324 $ 167 $ 11 $ 1,502 Six Months Ended June 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 675 $ 249 $ 19 $ 943 C&I 1,060 213 — 1,273 Other 17 — 3 20 Total retail 1,752 462 22 2,236 Wholesale 184 — — 184 Transmission 130 — — 130 Interchange and other 234 5 — 239 Total revenue from contracts with customers 2,300 467 22 2,789 Alternative revenue and other 145 31 — 176 Total revenues $ 2,445 $ 498 $ 22 $ 2,965 Six Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 675 $ 311 $ 9 $ 995 C&I 1,102 256 — 1,358 Other 19 — 12 31 Total retail 1,796 567 21 2,384 Wholesale 263 — — 263 Transmission 124 — — 124 Interchange and other 263 5 — 268 Total revenue from contracts with customers 2,446 572 21 3,039 Alternative revenue and other 132 29 — 161 Total revenues $ 2,578 $ 601 $ 21 $ 3,200 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory rate and ETR: Six Months Ended June 30 2023 2022 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 7.0 7.0 (Decreases) increases: Wind PTCs (a) (74.7) (71.7) Plant regulatory differences (b) (6.7) (6.2) Other tax credits, net operating loss & tax credit allowances (1.5) (1.5) Other (net) 2.0 1.1 Effective income tax rate (52.9) % (50.3) % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b) Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit are offset by corresponding revenue reductions. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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 June 30, 2023: 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 $ 4 $ 229 $ 259 $ 240 $ 732 |
Gross Notional Amounts of Commodity Forwards, Options, and FTRs | Gross notional amounts of commodity forwards, options and FTRs: (Amounts in Millions) (a)(b) June 30, 2023 Dec. 31, 2022 Megawatt hours of electricity 70 44 Million British thermal units of natural gas 78 88 (a) Not reflective of net positions in the underlying commodities. (b) Notional amounts for options included on a gross basis but weighted for the probability of exercise. |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income | 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 June 30, 2023 Derivatives designated as cash flow hedges: Interest rate $ 8 $ — Total $ 8 $ — Other derivative instruments: Electric commodity $ — $ (11) Total $ — $ (11) Six Months Ended June 30, 2023 Derivatives designated as cash flow hedges: Interest rate $ 4 $ — Total $ 4 $ — Other derivative instruments: Electric commodity $ — $ (28) Natural gas commodity — 2 Total $ — $ (26) Three Months Ended June 30, 2022 Other derivative instruments: Electric commodity $ — $ 7 Natural gas commodity $ — $ (1) Total $ — $ 6 Six Months Ended June 30, 2022 Other derivative instruments: Electric commodity $ — $ 6 Natural gas commodity $ — $ 2 Total $ — $ 8 . Pre-Tax (Gains) Losses Reclassified into Income During the Period from: Pre-Tax Gains (Losses) Recognized During the Period in Income (Millions of Dollars) Regulatory Assets and Liabilities Three Months Ended June 30, 2023 Other derivative instruments: Electric commodity 7 (a) — Total $ 7 $ — Six Months Ended June 30, 2023 Other derivative instruments: Commodity trading $ — $ (1) (b) Electric commodity 21 (a) — Natural gas commodity — (5) (c)(d) Total $ 21 $ (6) Three Months Ended June 30, 2022 Other derivative instruments: Commodity trading $ — $ 5 (b) Electric commodity (1) (a) — Total $ (1) $ 5 Six Months Ended June 30, 2022 Other derivative instruments: Commodity trading $ — $ 6 (b) Electric commodity (3) (a) — Natural gas commodity 2 (c) (5) (c)(d) Total $ (1) $ 1 (a) Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value (b) Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers. (c) Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate. (d) Relates primarily to option premium amortization. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | June 30, 2023 Dec. 31, 2022 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 $ 5 $ 46 $ 34 $ 85 $ (51) $ 34 $ 15 $ 38 $ 33 $ 86 $ (58) $ 28 Electric commodity — — 75 75 (2) 73 — — 58 58 (2) 56 Natural gas commodity — 3 — 3 — 3 — 5 — 5 — 5 Total current derivative assets $ 5 $ 49 $ 109 $ 163 $ (53) $ 110 $ 15 $ 43 $ 91 $ 149 $ (60) $ 89 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 12 $ 38 $ 57 $ 107 $ (46) $ 61 $ 21 $ 40 $ 66 $ 127 $ (59) $ 68 Total noncurrent derivative assets $ 12 $ 38 $ 57 $ 107 $ (46) $ 61 $ 21 $ 40 $ 66 $ 127 $ (59) $ 68 June 30, 2023 Dec. 31, 2022 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 $ 8 $ 74 $ 5 $ 87 $ (57) $ 30 $ 23 $ 60 $ 6 $ 89 $ (63) $ 26 Electric commodity — — 2 2 (2) — — — 2 2 (2) — Natural gas commodity — — — — — — — 2 — 2 — 2 Total current derivative liabilities $ 8 $ 74 $ 7 $ 89 $ (59) 30 $ 23 $ 62 $ 8 $ 93 $ (65) 28 PPAs (b) 14 14 Current derivative instruments $ 44 $ 42 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 19 $ 51 $ 42 $ 112 $ (46) $ 66 $ 37 $ 55 $ 42 $ 134 $ (60) $ 74 Total noncurrent derivative liabilities $ 19 $ 51 $ 42 $ 112 $ (46) 66 $ 37 $ 55 $ 42 $ 134 $ (60) 74 PPAs (b) 25 28 Noncurrent derivative instruments $ 91 $ 102 (a) NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At June 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral. At both June 30, 2023 and Dec. 31, 2022 derivative assets and liabilities include rights to reclaim cash collateral of $6 million. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Changes in Level 3 Commodity Derivatives | Changes in Level 3 commodity derivatives: Three Months Ended June 30 (Millions of Dollars) 2023 2022 Balance at April 1 $ 46 $ 76 Purchases (a) 97 158 Settlements (a) (15) (73) Net transactions recorded during the period: Gains recognized in earnings (b) 12 41 Net (losses) gains recognized as regulatory assets and liabilities (a) (23) 28 Balance at June 30 $ 117 $ 230 Six Months Ended June 30 (Millions of Dollars) 2023 2022 Balance at Jan. 1 $ 107 $ 56 Purchases (a) 97 157 Settlements (a) (28) (92) Net transactions recorded during the period: (Losses) gains recognized in earnings (b) (2) 91 Net (losses) gains recognized as regulatory assets and liabilities (a) (57) 18 Balance at June 30 $ 117 $ 230 (a) Relates primarily to FTR instruments administered by MISO. |
Carrying Amount and Fair Value of Long-term Debt | As of June 30, 2023, other financial instruments for which the carrying amount did not equal fair value: June 30, 2023 Dec. 31, 2022 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 7,328 $ 6,368 $ 6,942 $ 5,995 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 6 Months Ended | |
Jun. 30, 2023 | ||
Retirement Benefits [Abstract] | ||
Components of Net Periodic Benefit Cost (Credit) | Components of Net Periodic Benefit Cost Three Months Ended June 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 5 $ 7 $ — $ — Interest cost (a) 9 6 1 — Expected return on plan assets (a) (11) (12) — — Amortization of net loss (a) 3 6 — — Net periodic benefit cost 6 7 1 — Effects of regulation 3 — — — Net benefit cost recognized for financial reporting $ 9 $ 7 $ 1 $ — Six Months Ended June 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 10 $ 14 $ — $ — Interest cost (a) 18 12 1 1 Expected return on plan assets (a) (23) (24) — — Amortization of prior service credit (a) — — — (1) Amortization of net loss (a) 6 12 — — Settlement charge (b) — (1) — — Net periodic benefit cost 11 13 1 — Effects of regulation 5 1 — — Net benefit cost recognized for financial reporting $ 16 $ 14 $ 1 $ — (a) The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. | [1] |
[1]The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease, Cost | Components of lease expense: Three Months Ended June 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 24 $ 24 Other operating leases (a) 5 2 Total operating lease expense (b) $ 29 $ 26 (a) Includes short-term lease expense of $2 million and $1 million for 2023 and 2022, respectively. | Six Months Ended June 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 49 $ 49 Other operating leases (a) 9 4 Total operating lease expense (b) $ 58 $ 53 |
Lessee, Operating Lease, Liability, Maturity | Commitments under operating leases as of June 30, 2023: (Millions of Dollars) PPA Operating Other Operating Leases Total Leases Total minimum obligation $ 269 $ 131 $ 400 Interest component of obligation (14) (54) (68) Present value of minimum obligation $ 255 $ 77 332 Less current portion (97) Noncurrent operating lease liabilities $ 235 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | Changes in accumulated other comprehensive loss, net of tax: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (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 April 1 $ (19) $ (2) $ (21) $ (17) $ (3) $ (20) Other comprehensive gain before reclassifications 6 — 6 — — — Accumulated other comprehensive loss at June 30 $ (13) $ (2) $ (15) $ (17) $ (3) $ (20) Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (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 $ (16) $ (2) $ (18) $ (17) $ (3) $ (20) Other comprehensive gain before reclassifications 3 — 3 — — — Accumulated other comprehensive loss at June 30 $ (13) $ (2) $ (15) $ (17) $ (3) $ (20) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Results from Operations by Reportable Segment | NSP-Minnesota’s segment information: Three Months Ended June 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues (a) $ 1,189 $ 1,324 Net income 134 113 Regulated Natural Gas Operating revenues (b) $ 98 $ 167 Intersegment revenue — 1 Total revenues $ 98 $ 168 Net (loss) income (9) 4 All Other Total revenues $ 12 $ 11 Net loss 2 1 Consolidated Total Operating revenues (a)(b) $ 1,299 $ 1,503 Reconciling eliminations — (1) Total operating revenues $ 1,299 $ 1,502 Net income 127 118 (a) Operating revenues include $113 million and $133 million of affiliate electric revenue for the three months ended June 30, 2023 and 2022. (b) Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended June 30, 2023 and 2022. Six Months Ended June 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues (a) $ 2,445 $ 2,578 Net income 245 211 Regulated Natural Gas Operating revenues (b) $ 498 $ 601 Intersegment revenue 1 1 Total revenues $ 499 $ 602 Net income 21 33 All Other Total revenues $ 22 $ 21 Net income — 1 Consolidated Total Operating revenues (a)(b) $ 2,966 $ 3,201 Reconciling eliminations (1) (1) Total operating revenues $ 2,965 $ 3,200 Net income 266 245 (a) Operating revenues include $238 million and $262 million of affiliate electric revenue for the six months ended June 30, 2023 and 2022. (b) Operating revenues include an immaterial amount of affiliate gas revenue for the six months ended June 30, 2023 and 2022. |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable | $ 509 | $ 580 |
Less allowance for bad debts | (44) | (46) |
Accounts receivable, net | $ 465 | $ 534 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 323 | $ 384 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 209 | 200 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 103 | 103 |
Natural Gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 11 | $ 81 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 25,472 | $ 24,923 | |
Accumulated depreciation and amortization | (7,838) | (7,734) | |
Property, plant and equipment, net | 17,967 | 17,478 | |
Electric plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 20,492 | 20,114 | |
Natural gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,154 | 2,100 | |
Common and other property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,229 | 1,156 | |
Plant to be Retired (a) | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | [1] | 624 | 646 |
Construction work in progress | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 973 | 907 | |
Nuclear fuel | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,278 | 3,183 | |
Accumulated depreciation and amortization | $ (2,945) | $ (2,894) | |
[1]Amounts include regulator-approved retirements of Sherco Units 1, 2, 3 and A.S. King. Amounts are reported net of accumulated depreciation. |
Other Selected Balance Sheet Da
Other Selected Balance Sheet Data (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Public Utilities, General Disclosures [Line Items] | ||
Provision for Rate Refund | $ 223 | $ 67 |
Money Pool (Details)
Money Pool (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 207 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 250 | 250 |
Amount outstanding at period end | 0 | 0 |
Average amount outstanding | 49 | 0 |
Maximum amount outstanding | $ 135 | $ 4 |
Weighted average interest rate, computed on a daily basis | 4.81% | 3.87% |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments Commercial Paper (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 207 |
Series Due May 15, 2053 | Bonds [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Face Amount | $ 800 | |
Series Due May 15, 2023 | Bonds [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 700 | 700 |
Amount outstanding at period end | 0 | 207 |
Average amount outstanding | 30 | 21 |
Maximum amount outstanding | $ 150 | $ 290 |
Weighted average interest rate, computed on a daily basis | 4.99% | 4.14% |
Weighted average interest rate at period end | 4.64% |
Letters of Credit (Details)
Letters of Credit (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 207 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Direct advances on the credit facility outstanding | $ 15 | $ 15 |
Credit Facility (Details)
Credit Facility (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Line of Credit Facility [Line Items] | |||
Amount outstanding at period end | $ 0 | $ 207 | |
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Borrowing limit | [1] | 700 | |
Amount outstanding at period end | [2] | $ 15 | |
Number of extension you can request | 2 | ||
Available | $ 685 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1]Expires in September 2027.[2]Includes outstanding commercial paper and letters of credit. |
Bilateral Credit Agreement (Det
Bilateral Credit Agreement (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 207 |
Letter of Credit | Bilateral Credit Agreement | ||
Short-term Debt [Line Items] | ||
Borrowing Limit | 75 | |
Amount outstanding at period end | $ 57 | |
Letter of Credit | Bilateral Credit Agreement | NSP Minnesota [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Term | 1 year |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 1,299 | $ 1,502 | $ 2,965 | $ 3,200 |
Regulated Electric | Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,189 | 1,324 | 2,445 | 2,578 |
Regulated Natural Gas | Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 98 | 167 | 498 | 601 |
All Other | Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12 | 11 | 22 | 21 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 937 | 1,099 | 2,236 | 2,384 |
Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 369 | 417 | 943 | 995 |
Retail | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 557 | 664 | 1,273 | 1,358 |
Retail | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 11 | 18 | 20 | 31 |
Retail | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 843 | 936 | 1,752 | 1,796 |
Retail | Regulated Electric | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 317 | 338 | 675 | 675 |
Retail | Regulated Electric | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 517 | 588 | 1,060 | 1,102 |
Retail | Regulated Electric | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 9 | 10 | 17 | 19 |
Retail | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 82 | 152 | 462 | 567 |
Retail | Regulated Natural Gas | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 42 | 76 | 249 | 311 |
Retail | Regulated Natural Gas | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 40 | 76 | 213 | 256 |
Retail | Regulated Natural Gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Retail | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 12 | 11 | 22 | 21 |
Retail | All Other | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10 | 3 | 19 | 9 |
Retail | All Other | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Retail | All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2 | 8 | 3 | 12 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 80 | 138 | 184 | 263 |
Wholesale | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 80 | 138 | 184 | 263 |
Wholesale | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Wholesale | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 66 | 63 | 130 | 124 |
Transmission | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 66 | 63 | 130 | 124 |
Transmission | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Transmission | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Interchange | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 111 | 131 | ||
Interchange | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 108 | 128 | ||
Interchange | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 3 | 3 | ||
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 | 239 | 268 | ||
Other | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 234 | 263 | ||
Other | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 5 | 5 | ||
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 | 1,194 | 1,431 | 2,789 | 3,039 |
Total revenue from contracts with customers | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,097 | 1,265 | 2,300 | 2,446 |
Total revenue from contracts with customers | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 85 | 155 | 467 | 572 |
Total revenue from contracts with customers | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 12 | 11 | 22 | 21 |
Alternative revenue and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 105 | 71 | 176 | 161 |
Alternative revenue and other | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 92 | 59 | 145 | 132 |
Alternative revenue and other | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 13 | 12 | 31 | 29 |
Alternative revenue and other | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | |
State tax (net of federal tax effect) | 7% | 7% | |
Wind PTCs | [1] | (74.70%) | (71.70%) |
Plant regulatory differences | [2] | (6.70%) | (6.20%) |
Other tax credits, net operating loss & tax credit allowances | (1.50%) | (1.50%) | |
Other (net) | 2% | 1.10% | |
Effective income tax rate | (52.90%) | (50.30%) | |
[1]Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income[2]Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit are offset by corresponding revenue reductions. |
Non-Derivative Fair Value Measu
Non-Derivative Fair Value Measurements (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Miscellaneous investments | $ 49 | $ 48 | ||
Debt Securities, Available-for-sale, Unrealized Gain | 1,000 | 1,000 | ||
Debt Securities, Available-for-sale, Unrealized Loss | 68 | 90 | ||
Final Contractual Maturity [Abstract] | ||||
Due in 1 Year or Less | 4 | |||
Due in 1 to 5 Years | 229 | |||
Due in 5 to 10 Years | 259 | |||
Due after 10 Years | 240 | |||
Total | 732 | |||
Fair Value Measured on a Recurring Basis | Cost | Debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | 780 | [1] | 738 | [2] |
Fair Value Measured on a Recurring Basis | Fair Value | Debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | 732 | [1] | 675 | [2] |
NAV | 0 | [1] | 0 | [2] |
Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | 0 | [1] | 0 | [2] |
Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | 724 | [1] | 669 | [2] |
Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities | 8 | [1] | 6 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 2,059 | [1] | 1,976 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Cash equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 35 | [1] | 29 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Commingled funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commingled funds | 736 | [1] | 803 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Cost | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 508 | [1] | 406 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 3,078 | [1] | 2,882 | [2] |
NAV | 1,061 | [1] | 1,178 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Cash equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 35 | [1] | 29 | [2] |
NAV | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Commingled funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commingled funds | 1,061 | [1] | 1,178 | [2] |
NAV | 1,061 | [1] | 1,178 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 1,250 | [1] | 1,000 | [2] |
NAV | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 1,283 | [1] | 1,028 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Cash equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 35 | [1] | 29 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Commingled funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commingled funds | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 1 | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 1,248 | [1] | 999 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 726 | [1] | 670 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Cash equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Commingled funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commingled funds | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 2 | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | 2 | [1] | 1 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 8 | [1] | 6 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Cash equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Commingled funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commingled funds | 0 | [1] | 0 | [2] |
Nuclear Decommissioning Fund | Fair Value Measured on a Recurring Basis | Fair Value | Level 3 | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities | $ 0 | [1] | $ 0 | [2] |
[1]Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $49 million of other investments, including the rabbi trust.[2]Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $48 million of other investments, including the rabbi trust. |
Interest Rate Derivative (Detai
Interest Rate Derivative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Other Derivative Instruments | ||||||
Interest Rate Derivatives [Abstract] | ||||||
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | $ 7 | $ (1) | $ 21 | $ (1) | ||
Pre-tax gains (losses) recognized during the period in income | 0 | 5 | (6) | 1 | ||
Interest Rate Derivatives | ||||||
Interest Rate Derivatives [Abstract] | ||||||
Amount or interest rate derivatives expected to be reclassified | 1 | 1 | ||||
Derivative Liability, Notional Amount | 0 | 0 | ||||
Commodity Trading Contract | Other Derivative Instruments | ||||||
Interest Rate Derivatives [Abstract] | ||||||
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] | 5 | (1) | 6 | ||
Electric Commodity | Other Derivative Instruments | ||||||
Interest Rate Derivatives [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 | ||
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | [2] | (7) | 1 | 21 | (3) | |
Pre-tax gains (losses) recognized during the period in income | $ 0 | $ 0 | 0 | |||
Natural Gas Commodity | Other Derivative Instruments | ||||||
Interest Rate Derivatives [Abstract] | ||||||
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | $ 0 | (2) | [3] | |||
Pre-tax gains (losses) recognized during the period in income | [3],[4] | $ (5) | ||||
[1]Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.[2]Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value[3]Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate[4]Relates primarily to option premium amortization |
Commodity Derivatives (Details)
Commodity Derivatives (Details) MWh in Millions, MMBTU in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) MMBTU MWh | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) MMBTU MWh | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) MMBTU MWh | ||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||||
Miscellaneous investments | $ 49 | $ 49 | $ 48 | |||
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 | 0 | $ 0 | ||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (11) | 6 | (26) | 8 | ||
Cash flow hedge commodity | ||||||
Derivative [Line Items] | ||||||
Commodity contracts designated as cash flow hedges | $ 0 | $ 0 | ||||
Electric commodity | ||||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||||
Derivative, Nonmonetary Notional amount | MWh | [1],[2] | 70 | 70 | 44 | ||
Electric 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 regulatory (assets) and liabilities | $ (11) | 7 | $ (28) | 6 | ||
Natural Gas Commodity | ||||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 78 | 78 | 88 | ||
Electric Commodity | Other Derivative Instruments | ||||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | 0 | $ 0 | 0 | ||
Interest Rate Risk | 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 | 8 | 4 | ||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | $ 0 | 0 | ||||
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 | ||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | $ (1) | $ 2 | $ 2 | |||
[1]Not reflective of net positions in the underlying commodities.[2]Notional amounts for options included on a gross basis but weighted for the probability of exercise. |
Consideration of Credit Risk an
Consideration of Credit Risk and Concentrations (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) Counterparty | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Counterparty | Jun. 30, 2022 USD ($) | |||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||||
Fair Value Hedges, Net | $ 0 | $ 0 | $ 0 | $ 0 | ||
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 regulatory (assets) and liabilities | (11) | 6 | (26) | 8 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | (7) | 1 | (21) | 1 | ||
Pre-tax gains (losses) recognized during the period in income | 0 | 5 | (6) | 1 | ||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||
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 regulatory assets and (liabilities) | 0 | 0 | ||||
Pre-tax gains (losses) recognized during the period in income | [1] | 5 | (1) | 6 | ||
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 | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [2] | 7 | (1) | (21) | 3 | |
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | 0 | |||
Natural Gas 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 regulatory assets and (liabilities) | 0 | 2 | [3] | |||
Pre-tax gains (losses) recognized during the period in income | [3],[4] | (5) | ||||
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 regulatory (assets) and liabilities | (1) | 2 | 2 | |||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | ||||
Electric 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 regulatory (assets) and liabilities | (11) | $ 7 | (28) | $ 6 | ||
Interest Rate Risk | 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 regulatory (assets) and liabilities | 0 | 0 | ||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | $ 8 | $ 4 | ||||
Credit Concentration Risk | ||||||
Derivative [Line Items] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 9 | 9 | ||||
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 | 5 | 5 | ||||
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 | 6 | ||||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 36 | $ 36 | ||||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 32% | 32% | ||||
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 | 2 | 2 | ||||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 24 | $ 24 | ||||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 22% | 22% | ||||
Credit Concentration Risk | Internal Investment Grade [Member] | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 1 | 1 | ||||
Credit Concentration Risk | External Credit Rating, Non Investment Grade [Member] | ||||||
Derivative [Line Items] | ||||||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 49 | $ 49 | ||||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 44% | 44% | ||||
[1]Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.[2]Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value[3]Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate[4]Relates primarily to option premium amortization |
Credit Related Contingent Featu
Credit Related Contingent Features (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) Counterparty | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Counterparty | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |||
Fair Value Disclosures [Abstract] | |||||||
Derivative instruments in a gross liability position | $ 10 | $ 10 | $ 4 | ||||
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value | 88 | 88 | 76 | ||||
Collateral posted related to adequate assurance clauses in derivative contracts | 0 | 0 | 0 | ||||
Derivative [Line Items] | |||||||
Fair Value Hedges, Net | 0 | $ 0 | 0 | $ 0 | |||
Derivative instruments in a gross liability position | 10 | 10 | 4 | ||||
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value | 88 | 88 | 76 | ||||
Collateral Already Posted Adequate Assurance Clauses Aggregate Fair Value | $ 0 | $ 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 | 9 | 9 | |||||
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 | 5 | 5 | |||||
External Credit Rating, Investment Grade [Member] | Credit Concentration Risk | |||||||
Derivative [Line Items] | |||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 6 | 6 | |||||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 36 | $ 36 | |||||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 32% | 32% | |||||
Internal Investment Grade [Member] | Credit Concentration Risk | |||||||
Derivative [Line Items] | |||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 2 | 2 | |||||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 24 | $ 24 | |||||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 22% | 22% | |||||
External Credit Rating, Non Investment Grade [Member] | Credit Concentration Risk | |||||||
Derivative [Line Items] | |||||||
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ 49 | $ 49 | |||||
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 44% | 44% | |||||
Other Derivative Instruments | |||||||
Derivative [Line Items] | |||||||
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | $ 7 | (1) | $ 21 | (1) | |||
Pre-tax gains (losses) recognized during the period in income | 0 | 5 | (6) | 1 | |||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (11) | 6 | (26) | 8 | |||
Commodity Trading Contract | Other Derivative Instruments | |||||||
Derivative [Line Items] | |||||||
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] | 5 | (1) | 6 | |||
Electric Commodity | Other Derivative Instruments | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 | |||
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | [2] | (7) | 1 | 21 | (3) | ||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | 0 | ||||
Natural Gas Commodity | Other Derivative Instruments | |||||||
Derivative [Line Items] | |||||||
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | 0 | (2) | [3] | ||||
Pre-tax gains (losses) recognized during the period in income | [3],[4] | (5) | |||||
Natural gas commodity | Other Derivative Instruments | |||||||
Derivative [Line Items] | |||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (1) | 2 | 2 | ||||
Electric commodity | Other Derivative Instruments | |||||||
Derivative [Line Items] | |||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | $ (11) | $ 7 | $ (28) | $ 6 | |||
[1]Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.[2]Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value[3]Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate[4]Relates primarily to option premium amortization |
Recurring Fair Value Measuremen
Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability | $ 44 | $ 44 | $ 42 | |||
Derivative Liability, Noncurrent | 91 | 91 | 102 | |||
Obligation to return cash | 0 | 0 | 0 | |||
Right to reclaim cash | 6 | 6 | ||||
Commodity Trading | ||||||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||||
Balance at beginning of period | 46 | $ 76 | 107 | $ 56 | ||
Settlements | [1] | (15) | (73) | (28) | (92) | |
Gains recognized in earnings (b) | [2] | 12 | 41 | (2) | 91 | |
Net (losses) gains recognized as regulatory assets and liabilities (a) | [1] | (23) | 28 | (57) | 18 | |
Balance at end of period | 117 | 230 | 117 | 230 | ||
Purchases (a) | [1] | 97 | $ 158 | 97 | $ 157 | |
Fair Value Measured on a Recurring Basis | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 163 | 163 | 149 | |||
Netting, asset | [3] | (53) | (53) | (60) | ||
Derivative Asset, Noncurrent | 61 | 61 | 68 | |||
Derivative liability, gross | 89 | 89 | 93 | |||
Netting, liability | [3] | (59) | (59) | (65) | ||
Derivative liability | 30 | 30 | 28 | |||
Derivative Liability, Noncurrent | 66 | 66 | 74 | |||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||||
Derivative Asset, Current | 110 | 110 | 89 | |||
Fair Value Measured on a Recurring Basis | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 5 | 5 | 15 | |||
Derivative liability, gross | 8 | 8 | 23 | |||
Fair Value Measured on a Recurring Basis | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 49 | 49 | 43 | |||
Derivative liability, gross | 74 | 74 | 62 | |||
Fair Value Measured on a Recurring Basis | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 109 | 109 | 91 | |||
Derivative liability, gross | 7 | 7 | 8 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 85 | 85 | 86 | |||
Netting, asset | [3] | (51) | (51) | (58) | ||
Derivative Asset, Noncurrent | 61 | 61 | 68 | |||
Derivative liability, gross | 87 | 87 | 89 | |||
Netting, liability | [3] | (57) | (57) | (63) | ||
Derivative liability | 30 | 30 | 26 | |||
Derivative Liability, Noncurrent | 66 | 66 | 74 | |||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||||
Derivative Asset, Current | 34 | 34 | 28 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Electric Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 75 | 75 | 58 | |||
Netting, asset | [3] | (2) | (2) | (2) | ||
Derivative liability, gross | 2 | 2 | 2 | |||
Netting, liability | [3] | (2) | (2) | (2) | ||
Derivative liability | 0 | 0 | 0 | |||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||||
Derivative Asset, Current | 73 | 73 | 56 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 3 | 3 | 5 | |||
Netting, asset | [3] | 0 | 0 | 0 | ||
Derivative liability, gross | 0 | 0 | 2 | |||
Netting, liability | [3] | 0 | 0 | 0 | ||
Derivative liability | 0 | 0 | 2 | |||
Changes in Level 3 Commodity Derivatives [Roll Forward] | ||||||
Derivative Asset, Current | 3 | 3 | 5 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 5 | 5 | 15 | |||
Derivative liability, gross | 8 | 8 | 23 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Electric Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 0 | 0 | 0 | |||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 0 | 0 | 0 | |||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 46 | 46 | 38 | |||
Derivative liability, gross | 74 | 74 | 60 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Electric Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 0 | 0 | 0 | |||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 3 | 3 | 5 | |||
Derivative liability, gross | 0 | 0 | 2 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 34 | 34 | 33 | |||
Derivative liability, gross | 5 | 5 | 6 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Electric Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 75 | 75 | 58 | |||
Derivative liability, gross | 2 | 2 | 2 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 0 | 0 | 0 | |||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 107 | 107 | 127 | |||
Netting, asset | [3] | (46) | (46) | (59) | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 12 | 12 | 21 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 38 | 38 | 40 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 57 | 57 | 66 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative asset, gross | 107 | 107 | 127 | |||
Netting, asset | [3] | (46) | (46) | (59) | ||
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 | 12 | 12 | 21 | |||
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 | 38 | 38 | 40 | |||
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 | 57 | 57 | 66 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, gross | 112 | 112 | 134 | |||
Netting, liability | [3] | (46) | (46) | (60) | ||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, gross | 19 | 19 | 37 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, gross | 51 | 51 | 55 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, gross | 42 | 42 | 42 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, gross | 112 | 112 | 134 | |||
Netting, liability | [3] | (46) | (46) | (60) | ||
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 | 19 | 19 | 37 | |||
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 | 51 | 51 | 55 | |||
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 | 42 | 42 | 42 | |||
Fair Value, Measurements, Nonrecurring | PPAs | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability | [4] | 14 | 14 | 14 | ||
Derivative Liability, Noncurrent | [4] | $ 25 | $ 25 | $ 28 | ||
[1]Relates primarily to FTR instruments administered by MISO.[2]Relates to commodity trading and is subject to substantial offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.[3]NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At June 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral. At both June 30, 2023 and Dec. 31, 2022 derivative assets and liabilities include rights to reclaim cash collateral of $6 million. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.[4]NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Fair Value of Long-Term Debt (D
Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying amount | $ 7,328 | $ 6,942 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 6,368 | $ 5,995 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Pension Plan [Member] | ||||||
Components of Net Periodic Benefit Cost [Abstract] | ||||||
Service Cost | $ 5 | $ 7 | $ 10 | $ 14 | ||
Interest cost (a) | [1] | 9 | 6 | 18 | 12 | |
Expected return on plan assets (a) | [1] | (11) | (12) | (23) | (24) | |
Amortization of prior service credit (a) | [1] | 0 | 0 | |||
Amortization of net loss (a) | [1] | 3 | 6 | 6 | 12 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | [2] | 0 | (1) | |||
Net periodic benefit cost | 6 | 7 | 11 | 13 | ||
Effects of regulation | 3 | 0 | 5 | 1 | ||
Net benefit cost recognized for financial reporting | 9 | 7 | 16 | 14 | ||
Total contributions to the pension plans during the period | $ 23 | |||||
Settlement Charge True-Ups | 1 | |||||
Pension Plan [Member] | Xcel Energy Inc. | ||||||
Components of Net Periodic Benefit Cost [Abstract] | ||||||
Total contributions to the pension plans during the period | $ 50 | |||||
Other Postretirement Benefits Plan [Member] | ||||||
Components of Net Periodic Benefit Cost [Abstract] | ||||||
Service Cost | 0 | 0 | 0 | 0 | ||
Interest cost (a) | [1] | 1 | 0 | 1 | 1 | |
Expected return on plan assets (a) | [1] | 0 | 0 | 0 | 0 | |
Amortization of prior service credit (a) | [1] | 0 | (1) | |||
Amortization of net loss (a) | [1] | 0 | 0 | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | [2] | 0 | 0 | |||
Net periodic benefit cost | 1 | 0 | 1 | 0 | ||
Effects of regulation | 0 | 0 | 0 | 0 | ||
Net benefit cost recognized for financial reporting | $ 1 | $ 0 | $ 1 | $ 0 | ||
[1]The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.[2]In the six months ended June 30, 2022, Xcel Energy recognized $1 million in settlement charge true-ups related to the fourth quarter of 2021. |
Commitments and Contingencies -
Commitments and Contingencies - Sherco (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jan. 31, 2021 | Jun. 16, 2023 | |
Rate Matters [Abstract] | ||
Customer refund of previously recovered purchased power costs | $ 17 | |
Amount MPUC previously disallowed related to Sherco outage | $ 22 | |
NSP Minnesota [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
DOC Recommendation Based on Xcel's GE Litigation Loss of Use | $ 58 | |
DOC Recommendation Based on Xcel's AAA Reported Outage Cost | $ 72 |
Commitments and Contingencies_2
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 | |
Feb. 28, 2015 | Nov. 30, 2013 | |
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% |
Commitments and Contingencies_3
Commitments and Contingencies - Environmental, MGP, Landfill or Disposal Sites (Details) | Jun. 30, 2023 |
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_4
Commitments and Contingencies - Environmental Requirements - Water and Waste (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Federal Coal Ash Regulation | |
Site Contingency [Line Items] | |
Number of sites where regulated ash units will still be in operation at a specified date | 3 |
Federal Clean Water Act Section 316 (b) | Capital Addition Purchase Commitments | |
Site Contingency [Line Items] | |
Liability for estimated cost to comply with regulation | $ 45 |
Commitments and Contingencies_5
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | $ 29 | [1] | $ 26 | [1] | $ 58 | [2] | $ 53 | [2] | |
Lessee, Operating Lease, Liability, to be Paid | 400 | 400 | |||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (68) | (68) | |||||||
Operating Lease, Liability | 332 | 332 | |||||||
Operating Lease, Liability, Current | (97) | (97) | $ (98) | ||||||
Operating lease liabilities | 235 | 235 | $ 256 | ||||||
Purchased Power Agreements | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | 24 | 24 | 49 | 49 | |||||
Lessee, Operating Lease, Liability, to be Paid | 269 | 269 | |||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (14) | (14) | |||||||
Operating Lease, Liability | 255 | 255 | |||||||
Property, Plant and Equipment, Other Types | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | 5 | [3] | $ 2 | [3] | 9 | [4] | $ 4 | [4] | |
Lessee, Operating Lease, Liability, to be Paid | 131 | 131 | |||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (54) | (54) | |||||||
Operating Lease, Liability | $ 77 | $ 77 | |||||||
[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]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.[3] Includes short-term lease expense of $2 million and $1 million for 2023 and 2022, respectively. Includes short-term lease expense of $3 million and $1 million for 2023 and 2022, respectively. |
Commitments and Contingencies_6
Commitments and Contingencies - Variable Interest Entities (Details) - MW | Jun. 30, 2023 | Dec. 31, 2022 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Variable Interest Entity [Line Items] | ||
Generating capacity under long term purchased power agreements | 1,347 | 1,322 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive (loss) income at beginning of period | $ 7,836 | |||
Accumulated other comprehensive (loss) income at end of period | $ 8,072 | 8,072 | ||
Income Tax Expense (Benefit) | (50) | $ (42) | (92) | $ (82) |
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) | (17) | (16) | |
Accumulated other comprehensive (loss) income at end of period | (13) | (17) | (13) | (17) |
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 | 6 | 0 | 3 | 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 | (2) | (3) | (2) | |
Accumulated other comprehensive (loss) income at end of period | (2) | (3) | (2) | (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 | 0 | 0 | 0 | 0 |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive (loss) income at beginning of period | (21) | (20) | (18) | |
Accumulated other comprehensive (loss) income at end of period | (15) | (20) | (15) | (20) |
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 | $ 6 | $ 0 | $ 3 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||||
Segment Reporting Information [Line Items] | ||||||||
Net income | $ 127 | $ 118 | $ 266 | $ 245 | ||||
Natural gas | 98 | 167 | 498 | 601 | ||||
Other | 12 | 11 | 22 | 21 | ||||
Regulated and Unregulated Operating Revenue | 1,299 | 1,502 | 2,965 | 3,200 | ||||
Affiliate Revenue | 113 | 133 | 238 | 262 | ||||
Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Regulated and Unregulated Operating Revenue | 1,299 | [1],[2] | 1,503 | [1],[2] | 2,966 | [3],[4] | 3,201 | [3],[4] |
Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income | (1) | (1) | ||||||
Regulated and Unregulated Operating Revenue | 0 | (1) | ||||||
Regulated Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income | 134 | 113 | 245 | 211 | ||||
Revenues Including Intersegment Revenues | 1,189 | [1] | 1,324 | [1] | 2,445 | [3] | 2,578 | [3] |
Regulated Natural Gas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income | (9) | 4 | 21 | 33 | ||||
Revenues Including Intersegment Revenues | 98 | 168 | 499 | 602 | ||||
Regulated Natural Gas | Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Natural gas | 98 | [2] | 167 | [2] | 498 | [4] | 601 | [4] |
Regulated Natural Gas | Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Natural gas | 0 | 1 | 1 | 1 | ||||
All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income | 2 | 1 | 0 | 1 | ||||
All Other | Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Other | $ 12 | $ 11 | $ 22 | $ 21 | ||||
[1]Operating revenues include $113 million and $133 million of affiliate electric revenue for the three months ended June 30, 2023 and 2022.[2]Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended June 30, 2023 and 2022.[3]Operating revenues include $238 million and $262 million of affiliate electric revenue for the six months ended June 30, 2023 and 2022.[4]Operating revenues include an immaterial amount of affiliate gas revenue for the six months ended June 30, 2023 and 2022. |
Uncategorized Items - nspm-2023
Label | Element | Value |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | $ (3,000,000) |
AOCI Attributable to Parent [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | (20,000,000) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | $ (17,000,000) |