Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 29, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | NORTHERN STATES POWER CO /WI/ | |
Entity Central Index Key | 0000072909 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-03140 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0508315 | |
Entity Address, Address Line One | 1414 West Hamilton Avenue | |
Entity Address, City or Town | Eau Claire | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 54701 | |
City Area Code | (715) | |
Local Phone Number | 737-2625 | |
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 | 933,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating revenues | ||||
Electric, non-affiliates | $ 178 | $ 158 | $ 356 | $ 329 |
Electric, affiliates | 46 | 41 | 92 | 82 |
Natural gas | 31 | 19 | 88 | 64 |
Total operating revenues | 255 | 218 | 536 | 475 |
Operating expenses | ||||
Electric fuel and purchased power, non-affiliates | 5 | 3 | 10 | 6 |
Purchased power, affiliates | 106 | 91 | 206 | 186 |
Cost of natural sold and transported | 20 | 7 | 51 | 28 |
Operating and maintenance expenses | 50 | 45 | 99 | 94 |
Conservation program expenses | 3 | 3 | 6 | 6 |
Depreciation and amortization | 36 | 39 | 73 | 77 |
Taxes (other than income taxes) | 8 | 7 | 15 | 14 |
Total operating expenses | 228 | 195 | 460 | 411 |
Operating income | 27 | 23 | 76 | 64 |
Other expense, net | 0 | (2) | 0 | (4) |
Allowance for funds used during construction — equity | 1 | 1 | 2 | 3 |
Interest charges and financing costs | ||||
Interest charges | 12 | 10 | 21 | 20 |
Allowance for funds used during construction — debt | (1) | (1) | (1) | (1) |
Total interest charges and financing costs | 11 | 9 | 20 | 19 |
Income before income taxes | 17 | 13 | 58 | 44 |
Income tax expense (benefit) | 3 | 1 | 12 | (2) |
Net income | $ 14 | $ 12 | $ 46 | $ 46 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net income | $ 46 | $ 46 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 73 | 78 |
Deferred income taxes | 10 | (15) |
Allowance for equity funds used during construction | (2) | (3) |
Provision for bad debts | 2 | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10 | (4) |
Accrued unbilled revenues | 5 | 10 |
Inventories | (1) | 0 |
Other current assets | (6) | 0 |
Accounts payable | 9 | (3) |
Net regulatory assets and liabilities | (47) | 5 |
Other current liabilities | (2) | (2) |
Pension and other employee benefit obligations | (5) | (7) |
Other, net | 2 | 0 |
Net cash provided by operating activities | 94 | 108 |
Investing activities | ||
Capital/construction expenditures | (111) | (121) |
Net cash used in investing activities | (111) | (121) |
Financing activities | ||
Proceeds from short-term borrowings, net | (19) | (65) |
Borrowings under utility money pool arrangement | 186 | 0 |
Repayments under utility money pool arrangement | (153) | 0 |
Proceeds from long-term debt | 0 | 98 |
Capital contributions from parent | 40 | 37 |
Dividends paid to parent | (38) | (32) |
Other, net | 1 | 0 |
Net cash provided by financing activities | 17 | 38 |
Net change in cash, cash equivalents and restricted cash | 0 | 25 |
Cash, cash equivalents and restricted cash at beginning of period | 2 | 1 |
Cash, cash equivalents and restricted cash at end of period | 2 | 26 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (19) | (18) |
Cash paid for income taxes, net | (13) | (13) |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Accrued property, plant and equipment additions | 19 | 18 |
Inventory transfers to property, plant and equipment | 2 | 2 |
Allowance for equity funds used during construction | $ 2 | $ 3 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2 | $ 2 |
Accounts receivable, net | 61 | 70 |
Accrued unbilled revenues | 48 | 53 |
Other Receivables | 2 | 1 |
Inventories | 15 | 15 |
Regulatory assets | 47 | 19 |
Prepaid taxes | 30 | 24 |
Prepayments and other | 5 | 7 |
Total current assets | 210 | 191 |
Property, Plant and Equipment, Net [Abstract] | ||
Property, plant and equipment, net | 2,541 | 2,484 |
Other assets | ||
Regulatory assets | 216 | 215 |
Other Investments | 3 | 3 |
Other | 2 | 1 |
Total other assets | 221 | 219 |
Total assets | 2,972 | 2,894 |
Current liabilities | ||
Current portion of long-term debt | 19 | 19 |
Short-term debt | 0 | 19 |
Borrowings under utility money pool arrangement | 33 | 0 |
Accounts payable | 47 | 41 |
Accounts payable to affiliates | 29 | 15 |
Dividends payable to parent | 15 | 19 |
Regulatory liabilities | 7 | 31 |
Taxes accrued | 8 | 12 |
Environmental liabilities | 4 | 4 |
Accrued interest | 10 | 10 |
Other | 17 | 15 |
Total current liabilities | 189 | 185 |
Deferred credits and other liabilities | ||
Deferred income taxes | 321 | 307 |
Deferred investment tax credits | 6 | 0 |
Regulatory liabilities | 369 | 350 |
Environmental liabilities | 15 | 16 |
Customer advances | 21 | 20 |
Pension and employee benefit obligations | 23 | 28 |
Other | 27 | 33 |
Total deferred credits and other liabilities | 782 | 754 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | 888 | 887 |
Common Stock - 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Sept. 30, 2020 and Dec. 31, 2019, respectively | $ 93 | $ 93 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 100 | $ 100 |
Common stock, shares outstanding (in shares) | 933,000 | 933,000 |
Additional paid in capital | $ 638 | $ 605 |
Retained earnings | 382 | 370 |
Total common stockholder's equity | 1,113 | 1,068 |
Total liabilities and equity | $ 2,972 | $ 2,894 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common stock | Additional Paid In Capital | Retained Earnings |
Balance (in shares) at Dec. 31, 2019 | 933,000 | |||
Beginning Balance at Dec. 31, 2019 | $ 966 | $ 93 | $ 537 | $ 336 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 46 | |||
Common dividends declared to parent | (37) | (37) | ||
Contribution of capital by parent | 40 | 40 | ||
Balance (in shares) at Jun. 30, 2020 | 933,000 | |||
Ending Balance at Jun. 30, 2020 | 1,015 | $ 93 | 577 | 345 |
Balance (in shares) at Mar. 31, 2020 | 933,000 | |||
Beginning Balance at Mar. 31, 2020 | 993 | $ 93 | 547 | 353 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 12 | 12 | ||
Common dividends declared to parent | (20) | (20) | ||
Contribution of capital by parent | 30 | 30 | ||
Balance (in shares) at Jun. 30, 2020 | 933,000 | |||
Ending Balance at Jun. 30, 2020 | $ 1,015 | $ 93 | 577 | 345 |
Balance (in shares) at Dec. 31, 2020 | 933,000 | 933,000 | ||
Beginning Balance at Dec. 31, 2020 | $ 1,068 | $ 93 | 605 | 370 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 46 | |||
Common dividends declared to parent | (34) | (34) | ||
Contribution of capital by parent | $ 33 | 33 | ||
Balance (in shares) at Jun. 30, 2021 | 933,000 | 933,000 | ||
Ending Balance at Jun. 30, 2021 | $ 1,113 | $ 93 | 638 | 382 |
Balance (in shares) at Mar. 31, 2021 | 933,000 | |||
Beginning Balance at Mar. 31, 2021 | 1,110 | $ 93 | 635 | 382 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 14 | 14 | ||
Common dividends declared to parent | (14) | (14) | ||
Contribution of capital by parent | $ 3 | 3 | ||
Balance (in shares) at Jun. 30, 2021 | 933,000 | 933,000 | ||
Ending Balance at Jun. 30, 2021 | $ 1,113 | $ 93 | $ 638 | $ 382 |
Management's Opinion
Management's Opinion | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Opinion | In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Wisconsin and its subsidiaries as of June 30, 2021 and Dec. 31, 2020; the results of operations, including the components of net income, changes in stockholder's equity and comprehensive income for the three and six months ended June 30, 2021 and 2020; and its cash flows for the six months ended June 30, 2021 and 2020. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2021 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2020 balance sheet information has been derived from the audited 2020 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2020. 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-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2020, filed with the SEC on Feb. 17, 2021. Due to the seasonality of NSP-Wisconsin’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, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2020 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | Recently Adopted Credit Losses — In 2016, the FASB issued Financial Instruments - Credit Losses, Topic 326 (ASC Topic 326), which changes how entities account for losses on receivables and certain other assets. The guidance requires use of a current expected credit loss model, which may result in earlier recognition of credit losses than under previous accounting standards. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | (Millions of dollars) June 30, 2021 Dec. 31, 2020 Accounts receivable, net Accounts receivable $ 68 $ 78 Less allowance for bad debts (7) (8) Accounts receivable, net $ 61 $ 70 (Millions of dollars) June 30, 2021 Dec. 31, 2020 Inventories Materials and supplies $ 7 $ 7 Fuel 5 4 Natural gas 3 4 Total inventories $ 15 $ 15 (Millions of dollars) June 30, 2021 Dec. 31, 2020 Property, plant and equipment, net Electric plant $ 3,253 $ 3,197 Natural gas plant 402 391 Common and other property 224 221 Construction work in progress 99 71 Total property, plant and equipment 3,978 3,880 Less accumulated depreciation (1,437) (1,396) Property, plant and equipment, net $ 2,541 $ 2,484 |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Short-Term Borrowings NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool. Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc. Money pool borrowings for NSP-Wisconsin: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 150 $ — Amount outstanding at period end 33 — Average amount outstanding 20 — Maximum amount outstanding 41 — Weighted average interest rate, computed on a daily basis 0.04 % N/A Weighted average interest rate at period end 0.02 N/A Commercial Paper — Commercial paper outstanding for NSP-Wisconsin: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 150 $ 150 Amount outstanding at period end — 19 Average amount outstanding — 30 Maximum amount outstanding — 95 Weighted average interest rate, computed on a daily basis N/A 1.59 % Weighted average interest rate at period end N/A 0.17 Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both June 30, 2021 and Dec. 31, 2020, there were no letters of credit outstanding under the credit facility. Revolving Credit Facility — In order to issue its commercial paper, NSP-Wisconsin must have a revolving credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The 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-Wisconsin has the right to request an extension of the revolving credit facility termination date for an additional one-year period. All extension requests are subject to majority bank group approval. As of June 30, 2021, NSP-Wisconsin had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Outstanding (b) Available $ 150 $ — $ 150 (a) Expires in June 2024. (b) Includes outstanding commercial paper. All credit facility ban k borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at June 30, 2021 and Dec. 31, 2020. Other Short-Term Borrowings — As of June 30, 2021 and Dec. 31, 2020, Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, had no notes payable to Xcel Energy Inc. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Wisconsin’s operating revenues consisted of the following: Three Months Ended (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 64 $ 15 $ 79 C&I 108 15 123 Other 2 — 2 Total retail 174 30 204 Interchange 46 — 46 Other 1 1 2 Total revenue from contracts with customers 221 31 252 Alternative revenue and other 3 — 3 Total revenues $ 224 $ 31 $ 255 Three Months Ended (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 60 $ 10 $ 70 C&I 93 7 100 Other 2 — 2 Total retail 155 17 172 Interchange 41 — 41 Other — 1 1 Total revenue from contracts with customers 196 18 214 Alternative revenue and other 3 1 4 Total revenues $ 199 $ 19 $ 218 Six Months Ended June 30, 2021 (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 135 $ 46 $ 181 C&I 211 39 250 Other 3 — 3 Total retail 349 85 434 Interchange 92 — 92 Other 1 2 3 Total revenue from contracts with customers 442 87 529 Alternative revenue and other 6 1 7 Total revenues $ 448 $ 88 $ 536 Six Months Ended June 30, 2020 (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 125 $ 35 $ 160 C&I 194 26 220 Other 3 — 3 Total retail 322 61 383 Interchange 82 — 82 Other 1 2 3 Total revenue from contracts with customers 405 63 468 Alternative revenue and other 6 1 7 Total revenues $ 411 $ 64 $ 475 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Note 7 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2020 represents, in all material respects, the current status of other income tax matters except to the extent noted below, and are incorporated herein by reference. Difference between the statutory rate and ETR: Six Months Ended June 30 2021 2020 (a) Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 6.2 6.2 Increases (decreases) in tax from: Plant regulatory differences (b) (5.4) (18.4) Amortization of excess nonplant deferred taxes — (12.5) Tax credits, net of NOL & tax credit allowances (1.3) (1.7) Other (net) 0.2 0.9 Effective income tax rate 20.7 % (4.5) % (a) Prior periods have been restated to conform to current year presentation. (b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions. Federal Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows: Tax Years Expiration 2014 - 2016 January 2022 2017 September 2021 Additionally, the statute of limitations related to a federal tax loss carryback claim filed in 2020 has been extended. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is unknown . State Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of June 30, 2021, NSP-Wisconsin’s earliest open tax year subject to examination by state taxing authorities under applicable statutes of limitations is 2016. In March 2021, Wisconsin began an audit of tax years 2016 - 2019. No material adjustments have been proposed. Unrecognized Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which deductibility is highly certain, but for which there is uncertainty about the timing. A change in the timing of deductibility would not affect the ETR but would accelerate the payment to the taxing authority. Unrecognized tax benefits — permanent vs. temporary: (Millions of Dollars) June 30, 2021 Dec. 31, 2020 Unrecognized tax benefit — Permanent tax positions $ 2 $ 1 Unrecognized tax benefit — Temporary tax positions 1 1 Total unrecognized tax benefit $ 3 $ 2 Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) June 30, 2021 Dec. 31, 2020 NOL and tax credit carryforwards $ (2) $ (2) As the IRS audits resume and state audit progresses, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $1 million in the next 12 months. Payables for interest related to unrecognized tax benefits were not material and no amounts were accrued for penalties related to unrecognized tax benefits as of June 30, 2021 or Dec. 31, 2020. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
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 single definition of fair value and requires disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. • Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices. • Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. • Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include: Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset value. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contractual settlements relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification. Derivative Instruments Fair Value Measurements NSP-Wisconsin 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-Wisconsin may enter into various instruments that effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes. As of June 30, 2021 and Dec. 31, 2020, there were no interest rate derivatives designated as cash flow hedges. Commodity Derivatives — NSP-Wisconsin may enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of natural gas to generate electric energy and natural gas for resale. Consideration of Credit Risk and Concentrations — NSP-Wisconsin 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. Impact of Derivative Activities on Income — Changes in the fair value of natural gas commodity derivatives resulted in no gains or losses and $1 million in losses for the three and six months ended June 30, 2021, respectively, which were recognized as regulatory assets and liabilities. There were immaterial net losses for the three and six months ended June 30, 2020. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. During the three months ended June 30, 2021 and 2020, there were no settlement gains or losses on natural gas commodity derivatives. During the six months ended June 30, 2021 and 2020, there were $1 million of settlement losses, respectively, which were recognized subject to purchased natural gas cost recovery mechanisms, which result in reclassifications of derivative settlement gains and losses out of income to a regulatory asset or liability, as appropriate. NSP-Wisconsin had no derivative instruments designated as fair value hedges during the three and six months ended June 30, 2021 and 2020, respectively. Recurring Fair Value Measurements — As of June 30, 2021, there were immaterial derivative assets measured at fair value on a recurring basis. At Dec. 31, 2020, NSP-Wisconsin's derivative assets measured at fair value on a recurring basis were as follows: Dec. 31, 2020 Fair Value Fair Value Total Netting (a) Total (b) (Millions of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ — $ 1 $ — $ 1 $ — $ 1 (a) NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets. Fair Value of Long-Term Debt Other financial instruments for which the carrying amount did not equal fair value: June 30, 2021 Dec. 31, 2020 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 907 $ 1,067 $ 906 $ 1,124 Fair value of NSP-Wisconsin’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, 2021 and Dec. 31, 2020 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Components of Net Periodic Benefit Cost (Credit) Three Months Ended June 30 2021 2020 (Millions of Dollars) Pension Benefits Service cost $ 1 $ 1 Interest cost (a) 1 1 Expected return on plan assets (a) (2) (2) Amortization of net loss (a) 1 1 Net periodic benefit cost $ 1 $ 1 Effects of regulation — 2 Net benefit cost recognized for financial reporting $ 1 $ 3 Six Months Ended June 30 2021 2020 (Millions of Dollars) Pension Benefits Service cost $ 3 $ 2 Interest cost (a) 2 2 Expected return on plan assets (a) (4) (4) Amortization of net loss (a) 2 3 Net periodic benefit cost $ 3 $ 3 Effects of regulation — 4 Net benefit cost recognized for financial reporting $ 3 $ 7 (a) The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. In January 2021, contributions of $125 million were made across four of Xcel Energy’s pension plans, of which $5 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following includes commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position. Legal NSP-Wisconsin is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on NSP-Wisconsin’s consolidated financial statements. Legal fees are generally expensed as incurred. Gas Trading Litigation — e prime is a wholly owned subsidiary of Xcel Energy. e prime was in the business of natural gas trading and marketing but has not engaged in natural gas trading or marketing activities since 2003. Multiple lawsuits involving multiple plaintiffs seeking monetary damages were commenced against e prime and its affiliates, including Xcel Energy, between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices. Cases were all consolidated in the U.S. District Court in Nevada. Two cases remain active which include an MDL matter consisting of a Colorado purported class (Breckenridge) and a Wisconsin purported class (Arandell Corp.). Breckenridge/Colorado — In February 2019, the MDL panel remanded Breckenridge back to the U.S. District Court in Colorad o. Settlement of approximately $3 million was reached in February 2021. The parties have sought and are awaiting court approval of the settlement. A hearing was held on July 22, 2021. A decision is anticipated in Q3. Arandell Corp. — The trial has been vacated and will be rescheduled after the court rules on the pending motions for reconsideration and for class certification. Xcel Energy has concluded that a loss is remote for the remaining lawsuit. Rate Matters MISO ROE Complaints — In November 2013 and February 2015, customer groups filed two ROE complaints against MISO TOs, which includes NSP-Minnesota and NSP-Wisconsin. The first complaint requested a reduction in base ROE transmission formula rates from 12.38% to 9.15% for the time period of Nov. 12, 2013 to Feb. 11, 2015, and removal of ROE adders (including those for RTO membership). The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38% to 8.67%. In September 2016, the FERC issued an order (Opinion No. 551) granting a 10.32% base ROE effective for the first complaint period of Nov. 12, 2013 to Feb. 11, 2015 and subsequent to the date of the order. The D.C Circuit subsequently vacated and remanded Opinion No. 551. In November 2019, the FERC issued an order (Opinion No. 569), which set the MISO base ROE at 9.88%, effective Sept. 28, 2016 and for the first complaint period. The FERC also dismissed the second complaint. In December 2019, MISO TOs filed a request for rehearing regarding the new ROE methodology announced in Opinion No. 569. Customers also filed requests for rehearing claiming, among other points, that the FERC erred by dismissing the second complaint without refunds. In May 2020, the FERC issued an order (Opinion No. 569-A) which granted rehearing in part to Opinion 569 and further refined the FERC’s ROE methodology, most significantly to incorporate the risk premium model (in addition to the discounted cash flow and capital asset pricing models), resulting in a new base ROE of 10.02%, effective Sept. 28, 2016 and for the first complaint period. The FERC also affirmed its decision in Opinion No. 569 to dismiss the second complaint. In November 2020, the FERC issued an order (Opinion No. 569-B) in response to rehearing requests. The FERC corrected certain inputs to its ROE calculation model, did not change the ROE effective Sept. 28, 2016, and for the first MISO complaint period and upheld its decision to deny refunds for the second complaint period. NSP-Minnesota has recognized a liability for its best estimate of final refunds to customers. Each 10 basis point reduction in ROE for the first complaint period, second complaint period, and subsequent period relative to amounts accrued would reduce Xcel Energy’s net income by $1 million, $1 million, and $2 million, respectively. The MISO TOs and various parties have filed petitions for review of Opinion Nos. 569, 569-A and 569-B at the D.C. Circuit with initial briefs filed in March 2021 and final briefs expected in August 2021. FERC NOPR on ROE Incentive Adders — In April 2021, the FERC issued a NOPR proposing to limit collection of ROE incentive adders for RTO membership to the first three years after an entity begins participation in an RTO. If adopted as a final rule, following a comment period expected to be complete by the end of 2021 or 2022, NSP-Wisconsin would p rospectively discontinue charging their current 0.5% ROE incentive adders. Amounts related to a discontinuance of the adder would ultimately be offset by an increase in retail rates, following future rate cases. Environmental MGP, Landfill and Disposal Sites NSP-Wisconsin is currently investigating, remediating or performing post-closure actions at two MGP, landfill or other disposal sites across its service territories. NSP-Wisconsin has recognized its best estimate of costs/liabilities that will result from final resolution of these issues, however, the outcome and timing is unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NSP-Wisconsin 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-Wisconsin has the following reportable segments: • Regulated Electric — The regulated electric utility segment generates electricity, which is transmitted and distributed in Wisconsin and Michigan. • Regulated Natural Gas — The regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan. Asset and capital expenditure information is not provided for NSP-Wisconsin's reportable segments. As an integrated electric and natural gas utility, NSP-Wisconsin 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-Wisconsin's segment information: Three Months Ended June 30 (Millions of Dollars) 2021 2020 Regulated Electric Total revenues (a) $ 224 $ 199 Net income 16 16 Regulated Natural Gas Total revenues $ 31 $ 19 Net loss (2) (3) All Other Total revenues $ — $ — Net loss — (1) Consolidated Total Total revenues (a) $ 255 $ 218 Net income 14 12 (a) Total revenues include $46 million and $41 million of affiliate electric revenue for the three months ended June 30, 2021 and 2020, respectively. Six Months Ended June 30 (Millions of Dollars) 2021 2020 Regulated Electric Total revenues (a) $ 448 $ 411 Net income 40 41 Regulated Natural Gas Total revenues $ 88 $ 64 Net income 6 6 All Other Total revenues $ — $ — Net loss — (1) Consolidated Total Total revenues (a) $ 536 $ 475 Net income 46 46 (a) |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of dollars) June 30, 2021 Dec. 31, 2020 Accounts receivable, net Accounts receivable $ 68 $ 78 Less allowance for bad debts (7) (8) Accounts receivable, net $ 61 $ 70 |
Inventories | (Millions of dollars) June 30, 2021 Dec. 31, 2020 Inventories Materials and supplies $ 7 $ 7 Fuel 5 4 Natural gas 3 4 Total inventories $ 15 $ 15 |
Property, Plant and Equipment, Net | (Millions of dollars) June 30, 2021 Dec. 31, 2020 Property, plant and equipment, net Electric plant $ 3,253 $ 3,197 Natural gas plant 402 391 Common and other property 224 221 Construction work in progress 99 71 Total property, plant and equipment 3,978 3,880 Less accumulated depreciation (1,437) (1,396) Property, plant and equipment, net $ 2,541 $ 2,484 |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | As of June 30, 2021, NSP-Wisconsin had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Outstanding (b) Available $ 150 $ — $ 150 (a) Expires in June 2024. (b) Includes outstanding commercial paper. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings for NSP-Wisconsin: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 150 $ — Amount outstanding at period end 33 — Average amount outstanding 20 — Maximum amount outstanding 41 — Weighted average interest rate, computed on a daily basis 0.04 % N/A Weighted average interest rate at period end 0.02 N/A |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for NSP-Wisconsin: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2021 Year Ended Dec. 31, 2020 Borrowing limit $ 150 $ 150 Amount outstanding at period end — 19 Average amount outstanding — 30 Maximum amount outstanding — 95 Weighted average interest rate, computed on a daily basis N/A 1.59 % Weighted average interest rate at period end N/A 0.17 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | NSP-Wisconsin’s operating revenues consisted of the following: Three Months Ended (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 64 $ 15 $ 79 C&I 108 15 123 Other 2 — 2 Total retail 174 30 204 Interchange 46 — 46 Other 1 1 2 Total revenue from contracts with customers 221 31 252 Alternative revenue and other 3 — 3 Total revenues $ 224 $ 31 $ 255 Three Months Ended (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 60 $ 10 $ 70 C&I 93 7 100 Other 2 — 2 Total retail 155 17 172 Interchange 41 — 41 Other — 1 1 Total revenue from contracts with customers 196 18 214 Alternative revenue and other 3 1 4 Total revenues $ 199 $ 19 $ 218 Six Months Ended June 30, 2021 (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 135 $ 46 $ 181 C&I 211 39 250 Other 3 — 3 Total retail 349 85 434 Interchange 92 — 92 Other 1 2 3 Total revenue from contracts with customers 442 87 529 Alternative revenue and other 6 1 7 Total revenues $ 448 $ 88 $ 536 Six Months Ended June 30, 2020 (Millions of Dollars) Electric Natural Gas Total Major revenue types Revenue from contracts with customers: Residential $ 125 $ 35 $ 160 C&I 194 26 220 Other 3 — 3 Total retail 322 61 383 Interchange 82 — 82 Other 1 2 3 Total revenue from contracts with customers 405 63 468 Alternative revenue and other 6 1 7 Total revenues $ 411 $ 64 $ 475 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Difference between the statutory rate and ETR: Six Months Ended June 30 2021 2020 (a) Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 6.2 6.2 Increases (decreases) in tax from: Plant regulatory differences (b) (5.4) (18.4) Amortization of excess nonplant deferred taxes — (12.5) Tax credits, net of NOL & tax credit allowances (1.3) (1.7) Other (net) 0.2 0.9 Effective income tax rate 20.7 % (4.5) % (a) Prior periods have been restated to conform to current year presentation. |
Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block] | Federal Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows: Tax Years Expiration 2014 - 2016 January 2022 2017 September 2021 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized tax benefits — permanent vs. temporary: (Millions of Dollars) June 30, 2021 Dec. 31, 2020 Unrecognized tax benefit — Permanent tax positions $ 2 $ 1 Unrecognized tax benefit — Temporary tax positions 1 1 Total unrecognized tax benefit $ 3 $ 2 |
Tax Benefits Associated with NOL and Tax Credit Carryforwards | Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) June 30, 2021 Dec. 31, 2020 NOL and tax credit carryforwards $ (2) $ (2) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Recurring Fair Value Measurements — As of June 30, 2021, there were immaterial derivative assets measured at fair value on a recurring basis. At Dec. 31, 2020, NSP-Wisconsin's derivative assets measured at fair value on a recurring basis were as follows: Dec. 31, 2020 Fair Value Fair Value Total Netting (a) Total (b) (Millions of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ — $ 1 $ — $ 1 $ — $ 1 (a) NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets. |
Carrying Amount and Fair Value of Long-term Debt | Other financial instruments for which the carrying amount did not equal fair value: June 30, 2021 Dec. 31, 2020 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 907 $ 1,067 $ 906 $ 1,124 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 6 Months Ended | |
Jun. 30, 2021 | ||
Retirement Benefits [Abstract] | ||
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost (Credit) Three Months Ended June 30 2021 2020 (Millions of Dollars) Pension Benefits Service cost $ 1 $ 1 Interest cost (a) 1 1 Expected return on plan assets (a) (2) (2) Amortization of net loss (a) 1 1 Net periodic benefit cost $ 1 $ 1 Effects of regulation — 2 Net benefit cost recognized for financial reporting $ 1 $ 3 Six Months Ended June 30 2021 2020 (Millions of Dollars) Pension Benefits Service cost $ 3 $ 2 Interest cost (a) 2 2 Expected return on plan assets (a) (4) (4) Amortization of net loss (a) 2 3 Net periodic benefit cost $ 3 $ 3 Effects of regulation — 4 Net benefit cost recognized for financial reporting $ 3 $ 7 (a) The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. | [1] |
[1] | The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | NSP-Wisconsin's segment information: Three Months Ended June 30 (Millions of Dollars) 2021 2020 Regulated Electric Total revenues (a) $ 224 $ 199 Net income 16 16 Regulated Natural Gas Total revenues $ 31 $ 19 Net loss (2) (3) All Other Total revenues $ — $ — Net loss — (1) Consolidated Total Total revenues (a) $ 255 $ 218 Net income 14 12 (a) Total revenues include $46 million and $41 million of affiliate electric revenue for the three months ended June 30, 2021 and 2020, respectively. Six Months Ended June 30 (Millions of Dollars) 2021 2020 Regulated Electric Total revenues (a) $ 448 $ 411 Net income 40 41 Regulated Natural Gas Total revenues $ 88 $ 64 Net income 6 6 All Other Total revenues $ — $ — Net loss — (1) Consolidated Total Total revenues (a) $ 536 $ 475 Net income 46 46 (a) Total revenues include $92 million and $82 million of affiliate electric revenue for the six months ended June 30, 2021 and 2020, respectively. |
Selected Balance Sheet Data - A
Selected Balance Sheet Data - Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Receivable, Net | ||
Accounts receivable | $ 68 | $ 78 |
Less allowance for bad debts | (7) | (8) |
Accounts receivable, net | $ 61 | $ 70 |
Selected Balance Sheet Data - I
Selected Balance Sheet Data - Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Public Utilities, Inventory [Line Items] | ||
Total Inventories | $ 15 | $ 15 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 7 | 7 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 5 | 4 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 3 | $ 4 |
Selected Balance Sheet Data - P
Selected Balance Sheet Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,978 | $ 3,880 |
Less accumulated depreciation | (1,437) | (1,396) |
Property, plant and equipment, net | 2,541 | 2,484 |
Electric plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,253 | 3,197 |
Natural gas plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 402 | 391 |
Common and other property | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 224 | 221 |
Construction work in progress | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 99 | $ 71 |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments, Commercial Paper (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | ||
Short-term Debt [Line Items] | |||||
Amount outstanding at period end | $ 0 | $ 0 | $ 19,000,000 | ||
Credit Facility | |||||
Short-term Debt [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | 150,000,000 | 150,000,000 | ||
Long-term Line of Credit | 0 | 0 | 0 | ||
Payable to Affiliates | |||||
Short-term Debt [Line Items] | |||||
Notes Payable, Related Parties, Current | 0 | 0 | 0 | ||
Commercial Paper | |||||
Short-term Debt [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | 150,000,000 | 150,000,000 | ||
Amount outstanding at period end | 0 | 0 | $ 19,000,000 | ||
Average amount outstanding | $ 30,000,000 | 0 | |||
Maximum amount outstanding | $ 95,000,000 | 0 | |||
Weighted average interest rate, computed on a daily basis | 1.59% | ||||
Weighted average interest rate at period end | 0.17% | ||||
Money Pool | |||||
Short-term Debt [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | 150,000,000 | $ 0 | ||
Amount outstanding at period end | 33,000,000 | $ 33,000,000 | $ 0 | ||
Average amount outstanding | 20,000,000 | $ 0 | |||
Maximum amount outstanding | $ 41,000,000 | $ 0 | |||
Weighted average interest rate, computed on a daily basis | 0.04% | ||||
Weighted average interest rate at period end | 0.02% | 0.02% | |||
[1] | Expires in June 2024. |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Period | 1 year | |
Amount outstanding at period end | $ 0 | $ 19,000,000 |
Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | $ 0 | $ 0 |
Borrowings and Other Financin_5
Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 150,000,000 | |
Outstanding | [2] | 0 | |
Available | 150,000,000 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1] | Expires in June 2024. | ||
[2] | Includes outstanding commercial paper. |
Borrowings and Other Financin_6
Borrowings and Other Financing Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Clearwater Borrowings | $ 0 | $ 0 |
Payable to Affiliates | ||
Short-term Debt [Line Items] | ||
Notes Payable, Related Parties, Current | $ 0 | $ 0 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 255 | $ 218 | $ 536 | $ 475 |
Regulated Electric | Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 224 | 199 | 448 | 411 |
Regulated Natural Gas | Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 31 | 19 | 88 | 64 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 204 | 172 | 434 | 383 |
Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 79 | 70 | 181 | 160 |
Retail | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 123 | 100 | 250 | 220 |
Retail | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2 | 2 | 3 | 3 |
Retail | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 174 | 155 | 349 | 322 |
Retail | Regulated Electric | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 64 | 60 | 135 | 125 |
Retail | Regulated Electric | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 108 | 93 | 211 | 194 |
Retail | Regulated Electric | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2 | 2 | 3 | 3 |
Retail | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 30 | 17 | 85 | 61 |
Retail | Regulated Natural Gas | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 15 | 10 | 46 | 35 |
Retail | Regulated Natural Gas | C&I | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 15 | 7 | 39 | 26 |
Retail | Regulated Natural Gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Interchange | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 46 | 41 | 92 | 82 |
Interchange | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 46 | 41 | 92 | 82 |
Interchange | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2 | 1 | 3 | 3 |
Other | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 0 | 1 | 1 |
Other | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 1 | 2 | 2 |
Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 252 | 214 | 529 | 468 |
Total revenue from contracts with customers | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 221 | 196 | 442 | 405 |
Total revenue from contracts with customers | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 31 | 18 | 87 | 63 |
Alternative revenue and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 3 | 4 | 7 | 7 |
Alternative revenue and other | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 3 | 3 | 6 | 6 |
Alternative revenue and other | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | $ 0 | $ 1 | $ 1 | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | [1] | Dec. 31, 2020 | ||
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 0 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 6.20% | 6.20% | |||
Effective Income Tax Rate Reconciliation, Other Regulatory Items, Percent | [2] | (5.40%) | (18.40%) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amortization, Percent | 0.00% | (12.50%) | |||
Regulatory difference - tax credits and tax credit and NOL allowances (net) | (1.30%) | (1.70%) | |||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.20% | 0.90% | |||
Effective Income Tax Rate Reconciliation, Percent | 20.70% | (4.50%) | |||
[1] | Prior periods have been restated to conform to current year presentation. | ||||
[2] | Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions. |
Income Taxes Unrecognized Benef
Income Taxes Unrecognized Benefits (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Tax Benefits Associated With Nol And Tax Credit Carryforwards | $ 2,000,000 | $ 2,000,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,000,000 | 1,000,000 |
Unrecognized Tax Benefits That Would Not Impact Effective Tax Rate | 1,000,000 | 1,000,000 |
Total unrecognized tax benefit | 3,000,000 | 2,000,000 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,000,000 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 0 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Interest Rate Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 0 | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Impact of Derivative Activities on Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | ||||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 | $ 0 | $ 0 |
Other Derivative Instruments | Natural Gas Commodity | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | $ 0 | (1,000,000) | $ (1,000,000) |
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | $ 0 | $ 1,000,000 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Prepayments and other | $ 5 | $ 7 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 1 | ||
Netting | [1] | 0 | |
Derivative Asset, Net | [2] | 1 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | Level 1 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | Level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 1 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | Level 3 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | $ 0 | ||
[1] | NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2020. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. | ||
[2] | Included in prepayments and other current assets balance of $7 million at Dec. 31, 2020 on the consolidated balance sheets. |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Carrying Amount | $ 907 | $ 906 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 1,067 | $ 1,124 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) - Pension Plan [Member] $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2021USD ($)Plan | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | ||
Components of Net Periodic Benefit Cost [Abstract] | ||||||
Service cost | $ 1 | $ 1 | $ 3 | $ 2 | ||
Interest cost (a) | [1] | 1 | 1 | 2 | 2 | |
Expected return on plan assets (a) | [1] | (2) | (2) | (4) | (4) | |
Amortization of net loss (a) | [1] | 1 | 1 | 2 | 3 | |
Net periodic benefit cost | 1 | 1 | 3 | 3 | ||
Effects of regulation | 0 | 2 | 0 | 4 | ||
Net benefit cost recognized for financial reporting | $ 1 | $ 3 | $ 3 | $ 7 | ||
Contributions to pension plans | $ 5 | |||||
Parent Company [Member] | ||||||
Components of Net Periodic Benefit Cost [Abstract] | ||||||
Contributions to pension plans | $ 125 | |||||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 | |||||
[1] | The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Commitments and Contingencies G
Commitments and Contingencies Gas Trading Litigation (Details) number in Millions | Jun. 30, 2021 |
Breckenridge Litigation | |
Loss Contingencies [Line Items] | |
Loss Contingency, Pending Claims, Number | 3 |
MISO ROE Complaints (Details)
MISO ROE Complaints (Details) - Federal Energy Regulatory Commission (FERC) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 10 Months Ended | 11 Months Ended | 17 Months Ended | ||
Feb. 28, 2015 | Nov. 30, 2013 | Mar. 31, 2017 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | |
NSP Minnesota and NSP Wisconsin [Member] [Member] | FERC Proceeding, MISO ROE Complaint | ||||||||
Rate Matters [Abstract] | ||||||||
Public Utilities, Base Return On Equity Charged To Customers Through Transmission Formula Rates | 12.38% | 12.38% | ||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Recommended By Third Parties | 8.67% | 9.15% | ||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Approved | 10.32% | |||||||
Public Utilities, ROE developed with new approach | 9.88% | |||||||
Public Utilities, ROE New Base, Complaint Number 1 | 10.02% | |||||||
Basis Point Reduction - Third Complaint | 200000000.00% | |||||||
Basis Point Reduction - Second Complaint | 100000000.00% | |||||||
Basis Point Reduction - First Complaint | 100000000.00% | |||||||
Basis Point Reduction | 1000.00% | |||||||
NSP Minnesota, NSP Wisconsin and SPS | ||||||||
Rate Matters [Abstract] | ||||||||
ROE incentive adders related to FERC NOPR | 0.50% |
MGP, Landfill and Disposal Site
MGP, Landfill and Disposal Sites (Details) | Jun. 30, 2021 |
Other MGP, Landfill, or Disposal Sites [Domain] | |
Site Contingency [Line Items] | |
Number of identified MGP sites under current investigation and/or remediation | 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total revenues | ||||
Other Commitments [Line Items] | ||||
Total revenues | $ 255 | $ 218 | $ 536 | $ 475 |
Regulated Electric | Total revenues | ||||
Other Commitments [Line Items] | ||||
Total revenues | 224 | 199 | 448 | 411 |
Regulated Natural Gas | Total revenues | ||||
Other Commitments [Line Items] | ||||
Total revenues | 31 | 19 | 88 | 64 |
Retail | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 204 | 172 | 434 | 383 |
Retail | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 174 | 155 | 349 | 322 |
Retail | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 30 | 17 | 85 | 61 |
Interchange | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 46 | 41 | 92 | 82 |
Interchange | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 46 | 41 | 92 | 82 |
Interchange | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 2 | 1 | 3 | 3 |
Other | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 1 | 0 | 1 | 1 |
Other | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 1 | 1 | 2 | 2 |
Total revenue from contracts with customers | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 252 | 214 | 529 | 468 |
Total revenue from contracts with customers | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 221 | 196 | 442 | 405 |
Total revenue from contracts with customers | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 31 | 18 | 87 | 63 |
Alternative revenue and other | ||||
Other Commitments [Line Items] | ||||
Alternative revenue and other | 3 | 4 | 7 | 7 |
Alternative revenue and other | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Alternative revenue and other | 3 | 3 | 6 | 6 |
Alternative revenue and other | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Alternative revenue and other | 0 | 1 | 1 | 1 |
Residential | Retail | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 79 | 70 | 181 | 160 |
Residential | Retail | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 64 | 60 | 135 | 125 |
Residential | Retail | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 15 | 10 | 46 | 35 |
C&I | Retail | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 123 | 100 | 250 | 220 |
C&I | Retail | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 108 | 93 | 211 | 194 |
C&I | Retail | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 15 | 7 | 39 | 26 |
Other | Retail | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 2 | 2 | 3 | 3 |
Other | Retail | Regulated Electric | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | 2 | 2 | 3 | 3 |
Other | Retail | Regulated Natural Gas | ||||
Other Commitments [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net income | $ 14 | $ 12 | $ 46 | $ 46 |
Regulated and Unregulated Operating Revenue | 255 | 218 | 536 | 475 |
Affiliate Revenue | 46 | 41 | 92 | 82 |
Total revenues | ||||
Segment Reporting Information [Line Items] | ||||
Regulated and Unregulated Operating Revenue | 255 | 218 | 536 | 475 |
Regulated Electric | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 16 | 16 | 40 | 41 |
Regulated Electric | Total revenues | ||||
Segment Reporting Information [Line Items] | ||||
Regulated Operating Revenue, Electric | 224 | 199 | 448 | 411 |
Regulated Natural Gas | ||||
Segment Reporting Information [Line Items] | ||||
Net income | (2) | (3) | 6 | 6 |
Revenues Including Intersegment Revenues | 31 | 19 | 88 | 64 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 0 | (1) | 0 | (1) |
All Other | Total revenues | ||||
Segment Reporting Information [Line Items] | ||||
Other | $ 0 | $ 0 | $ 0 | $ 0 |