Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | PUBLIC SERVICE CO OF COLORADO | |
Entity Central Index Key | 0000081018 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-03280 | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0296600 | |
Entity Address, Address Line One | 1800 Larimer Street, Suite 1100 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | (303) | |
Local Phone Number | 571-7511 | |
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 | 100 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Operating revenues | |||||
Electric | $ 1,113 | $ 1,137 | $ 2,877 | $ 2,849 | |
Natural gas | 165 | 235 | 1,247 | 1,087 | |
Other | 12 | 11 | 41 | 39 | |
Total operating revenues | 1,290 | 1,383 | 4,165 | 3,975 | [1] |
Operating expenses | |||||
Electric fuel and purchased power | 356 | 399 | 1,055 | 1,075 | |
Cost of natural gas sold and transported | 44 | 98 | 660 | 549 | |
Cost of sales — other | 5 | 4 | 13 | 13 | |
Operating and maintenance expenses | 196 | 220 | 648 | 650 | |
Demand side management expenses | 39 | 32 | 106 | 97 | |
Depreciation and amortization | 235 | 219 | 693 | 627 | |
Taxes (other than income taxes) | 71 | 70 | 216 | 205 | |
Total operating expenses | 980 | 1,042 | 3,425 | 3,216 | |
Operating income | 310 | 341 | 740 | 759 | |
Other income (expense), net | 1 | (4) | 7 | (4) | |
Allowance for funds used during construction — equity | 12 | 8 | 25 | 22 | |
Interest charges and financing costs | |||||
Interest charges — includes other financing costs of $2, $2, $6 and $6, respectively | 79 | 70 | 228 | 199 | |
Allowance for funds used during construction — debt | (6) | (3) | (13) | (8) | |
Total interest charges and financing costs | 73 | 67 | 215 | 191 | |
Income before income taxes | 250 | 278 | 557 | 586 | |
Income tax expense | 21 | 31 | 21 | 31 | |
Net income | 229 | 247 | 536 | 555 | |
Gain (Loss) Related to Litigation Settlement | $ 34 | $ 0 | $ 34 | $ 0 | |
[1]Total revenues include $3 million and $4 million of other affiliate revenue for the nine months ended Sept. 30, 2023 and 2022. |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Financial Position [Abstract] | ||||
Other financing costs | $ 2 | $ 2 | $ 6 | $ 6 |
Gain (Loss) Related to Litigation Settlement | $ 34 | $ 0 | $ 34 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Comprehensive income: | ||||
Net income | $ 229 | $ 247 | $ 536 | $ 555 |
Pension and retiree medical benefits: | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | (1) | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (1) | (1) | (1) | (1) |
Total comprehensive income | 229 | 248 | 537 | 556 |
Total other comprehensive income | $ 0 | $ 1 | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of losses included in net periodic benefit cost, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net income | $ 536 | $ 555 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 697 | 631 |
Deferred income taxes | (122) | 16 |
Allowance for equity funds used during construction | (25) | (22) |
Provision for bad debts | 25 | 22 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 115 | (77) |
Accrued unbilled revenues | 257 | 38 |
Inventories | 48 | (130) |
Other current assets | 38 | (10) |
Accounts payable | (184) | 97 |
Net regulatory assets and liabilities | 178 | (43) |
Other current liabilities | 31 | (58) |
Pension and other employee benefit obligations | 1 | (14) |
Other, net | (54) | (74) |
Net cash provided by operating activities | 1,541 | 931 |
Investing activities | ||
Utility capital/construction expenditures | (1,631) | (1,384) |
Investments in utility money pool arrangement | (367) | (45) |
Repayments from utility money pool arrangement | 367 | 45 |
Net cash used in investing activities | (1,631) | (1,384) |
Financing activities | ||
Repayments of short-term borrowings, net | (294) | (147) |
Borrowings under utility money pool arrangement | 355 | 1,042 |
Repayments under utility money pool arrangement | (167) | (877) |
Proceeds from issuance of long-term debt | 834 | 686 |
Repayments of long-term debt | (250) | (300) |
Capital contributions from parent | 118 | 399 |
Dividends paid to parent | (507) | (365) |
Net cash provided by financing activities | 89 | 438 |
Net change in cash, cash equivalents and restricted cash | (1) | (15) |
Cash, cash equivalents and restricted cash at beginning of period | 10 | 25 |
Cash, cash equivalents and restricted cash at end of period | 9 | 10 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (197) | (195) |
Cash paid for income taxes, net | (119) | (70) |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Accrued property, plant and equipment additions | 168 | 144 |
Inventory transfers to property, plant and equipment | 17 | 15 |
Operating lease right-of-use assets | 17 | 16 |
Allowance for equity funds used during construction | $ 25 | $ 22 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash, cash equivalents and restricted cash at beginning of period | $ 9 | $ 10 |
Accrued unbilled revenues | 262 | 519 |
Inventories | 254 | 319 |
Regulatory assets | 370 | 411 |
Derivative instruments | 13 | 65 |
Prepayments and other | 75 | 103 |
Total current assets | 1,406 | 2,000 |
Property, plant and equipment, net | 20,653 | 19,652 |
Other assets | ||
Regulatory assets | 1,252 | 1,277 |
Derivative instruments | 13 | 22 |
Operating lease right-of-use assets | 388 | 437 |
Other | 305 | 231 |
Total other assets | 1,958 | 1,967 |
Total assets | 24,017 | 23,619 |
Current liabilities | ||
Current portion of long-term debt | 0 | 250 |
Borrowings under utility money pool arrangement | 188 | 0 |
Short-term debt | 0 | 294 |
Regulatory liabilities | 66 | 59 |
Taxes accrued | 195 | 242 |
Accrued interest | 69 | 59 |
Dividends payable to parent | 146 | 120 |
Derivative instruments | 9 | 30 |
Operating lease liabilities | 97 | 80 |
Other | 180 | 115 |
Total current liabilities | 1,568 | 2,088 |
Deferred credits and other liabilities | ||
Deferred income taxes | 1,902 | 1,983 |
Regulatory liabilities | 2,585 | 2,489 |
Asset retirement obligations | 492 | 476 |
Derivative instruments | 2 | 9 |
Customer advances | 129 | 144 |
Pension and employee benefit obligations | 14 | 13 |
Operating lease liabilities | 315 | 379 |
Other | 208 | 198 |
Total deferred credits and other liabilities | 5,647 | 5,691 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | $ 7,449 | $ 6,610 |
Common Stock, Shares Authorized | 100 | 100 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding | 100 | 100 |
Common stock — 100 shares authorized of $0.01 par value; 100 shares outstanding at Sept. 30, 2023 and Dec. 31, 2022, respectively | $ 0 | $ 0 |
Additional paid in capital | 7,111 | 6,992 |
Retained earnings | 2,263 | 2,260 |
Accumulated other comprehensive loss | (21) | (22) |
Total common stockholder's equity | 9,353 | 9,230 |
Total liabilities and equity | 24,017 | 23,619 |
Related Party | ||
Current assets | ||
Accounts receivable, net | 423 | 562 |
Current liabilities | ||
Accounts payable | 544 | 764 |
Affiliated Entity | ||
Current assets | ||
Accounts receivable, net | 0 | 11 |
Current liabilities | ||
Accounts payable | $ 74 | $ 75 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2021 | 100 | ||||
Beginning Balance at Dec. 31, 2021 | $ 8,444 | $ 0 | $ 6,426 | $ 2,040 | $ (22) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 555 | ||||
Total other comprehensive income | 1 | 1 | |||
Dividends declared to parent | (388) | (388) | |||
Contribution of capital by parent | 387 | 387 | |||
Balance (in shares) at Sep. 30, 2022 | 100 | ||||
Ending Balance at Sep. 30, 2022 | 8,999 | $ 0 | 6,813 | 2,207 | (21) |
Balance (in shares) at Jun. 30, 2022 | 100 | ||||
Beginning Balance at Jun. 30, 2022 | 8,688 | $ 0 | 6,623 | 2,087 | (22) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 247 | 247 | |||
Total other comprehensive income | 1 | 1 | |||
Dividends declared to parent | (127) | (127) | |||
Contribution of capital by parent | 190 | 190 | |||
Balance (in shares) at Sep. 30, 2022 | 100 | ||||
Ending Balance at Sep. 30, 2022 | $ 8,999 | $ 0 | 6,813 | 2,207 | (21) |
Balance (in shares) at Dec. 31, 2022 | 100 | 100 | |||
Beginning Balance at Dec. 31, 2022 | $ 9,230 | $ 0 | 6,992 | 2,260 | (22) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 536 | ||||
Total other comprehensive income | 1 | 1 | |||
Dividends declared to parent | (533) | (533) | |||
Contribution of capital by parent | $ 119 | 119 | |||
Balance (in shares) at Sep. 30, 2023 | 100 | 100 | |||
Ending Balance at Sep. 30, 2023 | $ 9,353 | $ 0 | 7,111 | 2,263 | (21) |
Balance (in shares) at Jun. 30, 2023 | 100 | ||||
Beginning Balance at Jun. 30, 2023 | 9,260 | $ 0 | 7,086 | 2,195 | (21) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 229 | 229 | |||
Total other comprehensive income | 0 | ||||
Dividends declared to parent | (161) | (161) | |||
Contribution of capital by parent | $ 25 | 25 | |||
Balance (in shares) at Sep. 30, 2023 | 100 | 100 | |||
Ending Balance at Sep. 30, 2023 | $ 9,353 | $ 0 | $ 7,111 | $ 2,263 | $ (21) |
Management's Opinion
Management's Opinion | 9 Months Ended |
Sep. 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 PSCo and its subsidiaries as of Sept. 30, 2023 and Dec. 31, 2022; the results of PSCo’s operations, including the components of net income, comprehensive income and changes in stockholder’s equity for the three and nine months ended Sept. 30, 2023 and 2022; and PSCo’s cash flows for the nine months ended Sept. 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 Sept. 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 PSCo 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 PSCo 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 PSCo’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 | 9 Months Ended |
Sep. 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 PSCo 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 | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | As of Sept. 30, 2023 |
Selected Balance Sheet Data
Selected Balance Sheet Data | 9 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | (Millions of Dollars) Sept. 30, 2023 Dec. 31, 2022 Accounts receivable, net Accounts receivable $ 480 $ 616 Less allowance for bad debts (57) (54) Accounts receivable, net $ 423 $ 562 (Millions of Dollars) Sept. 30, 2023 Dec. 31, 2022 Inventories Materials and supplies $ 86 $ 80 Fuel 78 68 Natural gas 90 171 Total inventories $ 254 $ 319 (Millions of Dollars) Sept. 30, 2023 Dec. 31, 2022 Property, plant and equipment, net Electric plant $ 16,343 $ 15,771 Natural gas plant 6,293 5,949 Common and other property 1,500 1,415 Plant to be retired (a) 1,242 1,305 Construction work in progress 1,288 877 Total property, plant and equipment 26,666 25,317 Less accumulated depreciation (6,013) (5,665) Property, plant and equipment, net $ 20,653 $ 19,652 |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Short-Term Borrowings PSCo 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 Sept. 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 250 $ 250 Amount outstanding at period end 188 — Average amount outstanding 27 29 Maximum amount outstanding 188 250 Weighted average interest rate, computed on a daily basis 5.26 % 1.66 % Weighted average interest rate at period end 5.30 N/A Commercial Paper — Commercial paper outstanding: (Amounts in Millions, Except Interest Rates) Three Months Ended Sept. 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 294 Average amount outstanding 5 71 Maximum amount outstanding 72 328 Weighted average interest rate, computed on a daily basis 5.45 % 2.56 % Weighted average interest rate at period end N/A 4.73 Letters of Credit — PSCo uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At Sept. 30, 2023 and Dec. 31, 2022, there were $29 million and $27 million, respectively, of letters of credit outstanding under the credit facility. Amounts approximate their f air value and are subject to fees. Revolving Credit Facility — In order to issue its commercial paper, PSCo must have a revolving credit facility equal to or greater than the amount of its commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. PSCo has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval. At Sept. 30, 2023, PSCo had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 29 $ 671 (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. PSCo had no direct advances on the credit facility outstanding at Sept. 30, 2023 and Dec. 31, 2022. Long-Term Borrowings During the nine months ended Sept. 30, 2023, PSCo issued $850 million of 5.25% first mortgage bonds due April 1, 2053. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenue is classified by the type of goods/services rendered and market/customer type. PSCo’s operating revenues consisted of the following: Three Months Ended Sept. 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 398 $ 88 $ 5 $ 491 C&I 538 44 7 589 Other 13 — — 13 Total retail 949 132 12 1,093 Wholesale 53 — — 53 Transmission 25 — — 25 Other 16 27 — 43 Total revenue from contracts with customers 1,043 159 12 1,214 Alternative revenue and other 70 6 — 76 Total revenues $ 1,113 $ 165 $ 12 $ 1,290 Three Months Ended Sept. 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 431 $ 136 $ 4 $ 571 C&I 556 64 7 627 Other 13 — — 13 Total retail 1,000 200 11 1,211 Wholesale 63 — — 63 Transmission 25 — — 25 Other 15 30 — 45 Total revenue from contracts with customers 1,103 230 11 1,344 Alternative revenue and other 34 5 — 39 Total revenues $ 1,137 $ 235 $ 11 $ 1,383 Nine Months Ended Sept. 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 1,003 $ 790 $ 14 $ 1,807 C&I 1,403 335 27 1,765 Other 40 — — 40 Total retail 2,446 1,125 41 3,612 Wholesale 170 — — 170 Transmission 68 — — 68 Other 44 99 — 143 Total revenue from contracts with customers 2,728 1,224 41 3,993 Alternative revenue and other 149 23 — 172 Total revenues $ 2,877 $ 1,247 $ 41 $ 4,165 Nine Months Ended Sept. 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 1,025 $ 686 $ 11 $ 1,722 C&I 1,383 279 16 1,678 Other 38 — — 38 Total retail 2,446 965 27 3,438 Wholesale 200 — — 200 Transmission 65 — — 65 Other 39 106 — 145 Total revenue from contracts with customers 2,750 1,071 27 3,848 Alternative revenue and other 99 16 12 127 Total revenues $ 2,849 $ 1,087 $ 39 $ 3,975 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Reconciliation between the statutory rate and ETR: Nine Months Ended Sept. 30 2023 2022 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 3.5 3.6 (Decreases) increases: Wind PTCs (a) (14.9) (14.2) Plant regulatory differences (b) (5.4) (4.4) Other tax credits, net operating loss & tax credit allowances (1.0) (1.1) Other (net) 0.6 0.4 Effective income tax rate 3.8 % 5.3 % (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 | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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: 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. Derivative Activities and Fair Value Measurements PSCo 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 — PSCo 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 Sept. 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 Sept. 30, 2023, PSCo had no unsettled interest rate derivatives. Wholesale and Commodity Trading — PSCo 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. PSCo 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 — PSCo 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 vehicle fuel. When PSCo 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 Sept. 30, 2023, PSCo had no commodity contracts designated as cash flow hedges. Gross notional amounts of commodity forwards and options: (Amounts in Millions) (a)(b) Sept. 30, 2023 Dec. 31, 2022 Megawatt hours of electricity 4 8 Million British thermal units of natural gas 28 43 (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 — PSCo 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. PSCo’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 Sept. 30, 2023, four of PSCo’s ten most significant counterparties for these activities, comprising $32 million, or 45%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Six of the ten most significant counterparties, comprising $25 million, or 35%, of this credit exposure, were not rated by these external ratings agencies, but based on PSCo’s internal analysis, had credit quality consistent with investment grade. None of these significant counterparties, had credit quality less than investment grade, based on internal analysis. Seven of these significant counterparties are independent system operators, municipal or cooperative electric entities, Regional Transmission Organizations or other utilities. Credit Related Contingent Features — Contract provisions for derivative instruments that PSCo enters into, 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 PSCo’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies. As of Sept. 30, 2023 and Dec. 31, 2022, there were no derivative liabilities position with such underlying contract provisions. Certain contracts also contain cross default provisions that may require the posting of collateral or settlement of the contracts if there was a failure under other financing arrangements related to payment terms or other covenants. As of Sept. 30, 2023 and Dec. 31, 2022, there were $1 million and no derivative instruments in a liability position 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 PSCo’s ability to fulfill its contractual obligations is reasonably expected to be impaired. PSCo had no collateral posted related to adequate assurance clauses in derivative contracts as of Sept. 30, 2023 and Dec. 31, 2022. Recurring Derivative Fair Value Measurements Changes in the fair value of natural gas commodity derivatives recognized as regulatory assets and liabilities included immaterial net gains and losses for the three and nine months ended Sept. 30, 2023 and 2022. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Pre-Tax Losses Reclassified into Income During the Period from: Pre-Tax Gains (Losses) Recognized During the Period in Income (Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory Assets and Liabilities Three Months Ended Sept. 30, 2023 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 2 (a) Total $ — $ — $ 2 Nine Months Ended Sept. 30, 2023 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ (3) (a) Natural gas commodity — 10 (c) (12) (c)(d) Total $ — $ 10 $ (15) Three Months Ended Sept. 30, 2022 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 2 (a) Total $ — $ — $ 2 Nine Months Ended Sept. 30, 2022 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 3 (a) Natural gas commodity — 2 (c) (11) (c)(d) Total $ — $ 2 $ (8) (a) Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers. (b) Recorded to interest charges. (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. PSCo had no derivative instruments designated as fair value hedges during the nine months ended Sept. 30, 2023 and 2022. Derivative assets and liabilities measured at fair value on a recurring basis were as follows: Sept. 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 $ 3 $ 42 $ 3 $ 48 $ (37) $ 11 $ 16 $ 220 $ 1 $ 237 $ (184) $ 53 Natural gas commodity — 2 — 2 — 2 — 12 — 12 — 12 Total current derivative assets $ 3 $ 44 $ 3 $ 50 $ (37) $ 13 $ 16 $ 232 $ 1 $ 249 $ (184) $ 65 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 8 $ 2 $ 8 $ 18 $ (5) $ 13 $ 12 $ 32 $ 9 $ 53 $ (31) $ 22 Total noncurrent derivative assets $ 8 $ 2 $ 8 $ 18 $ (5) $ 13 $ 12 $ 32 $ 9 $ 53 $ (31) $ 22 Sept. 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 $ 1 $ 51 $ — $ 52 $ (43) $ 9 $ 5 $ 237 $ 1 $ 243 $ (223) $ 20 Natural gas commodity — — — — — — — 10 — 10 — 10 Total current derivative liabilities $ 1 $ 51 $ — $ 52 $ (43) $ 9 $ 5 $ 247 $ 1 $ 253 $ (223) $ 30 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 4 $ 4 $ — $ 8 $ (6) $ 2 $ 7 $ 40 $ — $ 47 $ (38) $ 9 Total noncurrent derivative liabilities $ 4 $ 4 $ — $ 8 $ (6) $ 2 $ 7 $ 40 $ — $ 47 $ (38) $ 9 (a) PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At Sept. 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral. At Sept. 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include rights to reclaim cash collateral of $7 million and $46 million, respectively. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. Changes in Level 3 commodity derivatives: Three Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Balance at July 1 $ 9 $ (30) Settlements (a) — 5 Net transactions recorded during the period: Gains recognized in earnings (a) 2 1 Balance at Sept. 30 $ 11 $ (24) Nine Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Balance at Jan. 1 $ 9 $ (63) Settlements (a) — 9 Net transactions recorded during the period: Gains recognized in earnings (a) 2 30 Balance at Sept. 30 $ 11 $ (24) (a) 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 Sept. 30, 2023, other financial instruments for which the carrying amount did not equal fair value: Sept. 30, 2023 Dec. 31, 2022 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 7,449 $ 5,932 $ 6,860 $ 5,881 Fair value of PSCo’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of Sept. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Three Months Ended Sept. 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 5 $ 7 $ — $ 1 Interest cost (a) 14 10 4 2 Expected return on plan assets (a) (19) (19) (3) (4) Amortization of prior service credit (a) — — — (1) Amortization of net loss (a) 1 6 — — Settlement charge (b) — 2 — — Net periodic benefit (credit) cost 1 6 1 (2) Effects of regulation 3 (2) — 1 Net benefit cost (credit) recognized for financial reporting $ 4 $ 4 $ 1 $ (1) Nine Months Ended Sept. 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 14 $ 22 $ — $ 1 Interest cost (a) 43 31 12 8 Expected return on plan assets (a) (57) (58) (11) (12) Amortization of prior service credit (a) — — — (2) Amortization of net loss (a) 2 17 1 1 Settlement charge (b) — 2 — — Net periodic benefit (credit) cost 2 14 2 (4) Effects of regulation 9 3 — 2 Net benefit cost (credit) recognized for financial reporting $ 11 $ 17 $ 2 $ (2) (a) The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. (b) A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In the third quarter of 2022 as a result of lump-sum distributions during the 2022 plan year, PSCo recorded a pension settlement charge of $2 million, the majority of which was not recognized due to the effects of regulation. In January 2023, contributions totaling $50 million were made across Xcel Energy’s pension plans, of which none was attributable to PSCo. Xcel Energy does not expect additional pension contributions during 2023. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Legal PSCo 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 PSCo’s consolidated financial statements. Legal fees are generally expensed as incurred. Comanche Unit 3 Litigation — In 2021, CORE filed a lawsuit in Denver County District Court, alleging PSCo breached ownership agreement terms by failing to operate Comanche Unit 3 in accordance with prudent utility practices. In April 2022, CORE filed a supplement to include damages related to a 2022 outage. Also in 2022, CORE sent notice of withdrawal from the ownership agreement based on the same alleged breaches. In February 2023, the court granted PSCo’s motion precluding CORE from seeking damages related to its withdrawal as part of the lawsuit. In September 2023, the court denied PSCo’s motion for summary judgment on other categories of damages and allowed CORE to seek approximately $253 million at trial (before interest), including an alleged $187 million reduction in the value of CORE’s ownership interest in the Comanche 3 facility and $60 million of alleged lost power costs. On Oct. 25, 2023, the jury awarded CORE lost power damages of $26 million. PSCo recognized $34 million for the verdict in the third quarter of 2023, including estimated interest and other costs. PSCo intends to file an appeal of this decision. Marshall Wildfire In December 2021, a wildfire ignited in Boulder County, Colorado (the “Marshall Fire”), which burned over 6,000 acres and destroyed or damaged over 1,000 structures. On June 8, 2023, the Boulder County Sheriff’s Office released its Marshall Fire Investigative Summary and Review and its supporting documents (the “Sheriff’s Report”). According to an October 2022 statement from the Colorado Insurance Commissioner, the Marshall Fire is estimated to have caused more than $2 billion in property losses. According to the Sheriff’s Report, on Dec. 30, 2021, a fire ignited on a residential property in Boulder, Colorado, located in PSCo’s service territory, for reasons unrelated to PSCo’s power lines. According to the Sheriff’s Report, approximately one hour and 20 minutes after the first ignition, a second fire ignited just south of the Marshall Mesa Trailhead in unincorporated Boulder County, Colorado, also located in PSCo’s service territory. According to the Sheriff’s Report, the second ignition started approximately 80 to 110 feet away from PSCo’s power lines in the area. The Sheriff’s Report states that the most probable cause of the second ignition was hot particles discharged from PSCo’s power lines after one of the power lines detached from its insulator in strong winds, and further states that it cannot be ruled out that the second ignition was caused by an underground coal fire. According to the Sheriff’s Report, no design, installation or maintenance defects or deficiencies were identified on PSCo’s electrical circuit in the area of the second ignition. PSCo disputes that its power lines caused the second ignition . As of Oct. 24, 2023, PSCo is aware of 14 complaints, certain of which have also named Xcel Energy Inc. as a defendant, on behalf of at least 675 plaintiffs relating to the Marshall Fire and expects that it may receive further complaints. The complaints generally allege that PSCo’s equipment ignited the Marshall Fire and assert various causes of action under Colorado law, including negligence, premises liability, trespass, nuisance, and inverse condemnation. In September 2023, the Boulder County District Court Judge consolidated eight lawsuits that were pending at that time into a single action for pretrial purposes and has subsequently consolidated additional lawsuits that have been filed. Colorado courts do not apply strict liability in determining an electric utility company’s liability for fire-related damages. For inverse condemnation claims, Colorado courts assess whether a defendant acted with intent to take a plaintiff’s property or intentionally took an action which has the natural consequence of taking the property. For negligence claims, Colorado courts look to whether electric power companies have operated their system with a heightened duty of care consistent with the practical conduct of its business, and liability does not extend to occurrences that cannot be reasonably anticipated. Under Colorado law, in a civil action other than a medical malpractice action, the total award for noneconomic loss is capped at $0.6 million per defendant for claims that accrued at the time of the Marshall Fire unless the court finds justification to exceed that amount by clear and convincing evidence, in which case the maximum doubles. Colorado law does not impose joint and several liability in tort actions. Instead, under Colorado law, a defendant is liable for the degree or percentage of the negligence or fault attributable to that defendant, except where the defendant conspired with another defendant. A jury’s verdict in a Colorado civil case must be unanimous. Colorado law caps punitive or exemplary damages to an amount equal to the amount of the actual damages awarded to the injured party, except the court may increase any award of punitive damages to a sum up to three times the amount of actual damages if the conduct that is the subject of the claim has continued during the pendency of the case or the defendant has acted in a willful and wanton manner during the action which further aggravated plaintiff’s damages. In the event Xcel Energy Inc. or PSCo was found liable related to this litigation and were required to pay damages, such amounts could exceed our insurance coverage of approximately $500 million and have a material adverse effect on our financial condition, results of operations or cash flows. However, due to uncertainty as to the cause of the fire and the extent and magnitude of potential damages, Xcel Energy Inc. and PSCo are unable to estimate the amount or range of possible losses in connection with the Marshall Fire. Rate Matters PSCo 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. Environmental MGP, Landfill and Disposal Sites PSCo is investigating, remediating or performing post-closure actions at two MGP, landfill or other disposal sites across its service territory, excluding sites that are being addressed under coal ash regulations. PSCo 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 — PSCo’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 as well as perform corrective actions where offsite groundwater has been impacted. As of Sept. 30, 2023, PSCo has five regulated ash units in operation. PSCo has executed an agreement with a third party that will excavate and process ash for beneficial use (at two sites) at a cost of approximately $45 million. An estimated liability has been recorded and amounts are expected to be fully recoverable through regulatory mechanisms. Investigation and feasibility studies for additional corrective action related to offsite groundwater are ongoing (at three sites). While the results are uncertain, additional costs are estimated to be at least $40 million. A liability has been recorded and is expected to be fully recoverable through regulatory mechanisms. Leases PSCo evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset. Components of lease expense: Three Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 23 $ 22 Other operating leases (a) 5 3 Total operating lease expense (b) $ 28 $ 25 Finance leases Amortization of ROU assets $ 1 $ 1 Interest expense on lease liability 4 4 Total finance lease expense $ 5 $ 5 (a) Includes immaterial short-term lease expense for both 2023 and 2022. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Nine Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 68 $ 70 Other operating leases (a) 15 13 Total operating lease expense (b) $ 83 $ 83 Finance leases Amortization of ROU assets $ 2 $ 3 Interest expense on lease liability 12 12 Total finance lease expense $ 14 $ 15 (a) Includes immaterial short-term lease expense for both 2023 and 2022. (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 and finance leases as of Sept. 30, 2023: (Millions of Dollars) PPA Operating Leases Other Operating Lease Total Operating Leases Finance Leases Total minimum obligation $ 394 $ 63 $ 457 $ 423 Interest component of obligation (38) (7) (45) (308) Present value of minimum obligation $ 356 $ 56 412 115 Less current portion (97) (3) Noncurrent operating and finance lease liabilities $ 315 $ 112 Variable Interest Entities Under certain PPAs, PSCo purchases power from IPPs for which PSCo is required to reimburse fuel costs, or to participate in tolling arrangements under which PSCo procures the natural gas required to produce the energy that they purchase. These specific PPAs create a variable interest in the IPP. PSCo had approximately 1,509 MW and 1,442 MW of capacity under long-term PPAs at Sept. 30, 2023 and Dec. 31, 2022 with entities that have been determined to be variable interest entities. PSCo concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. The PPAs have expiration dates through 2032. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Changes in accumulated other comprehensive loss, net of tax: Three Months Ended Sept. 30, 2023 Three Months Ended Sept. 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 July 1 $ (20) $ (1) $ (21) $ (21) $ (1) $ (22) Losses reclassified from net accumulated other comprehensive loss: Amortization of net actuarial loss (a) — (1) (1) — — — Interest rate derivatives (b) 1 — 1 1 — 1 Net current period other comprehensive income 1 (1) — 1 — 1 Accumulated other comprehensive loss at Sept. 30 $ (19) $ (2) $ (21) $ (20) $ (1) $ (21) Nine Months Ended Sept. 30, 2023 Nine Months Ended Sept. 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 $ (20) $ (2) $ (22) $ (21) $ (1) $ (22) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives (b) 1 — 1 1 — 1 Net current period other comprehensive income 1 — 1 1 — 1 Accumulated other comprehensive loss at Sept. 30 $ (19) $ (2) $ (21) $ (20) $ (1) $ (21) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | PSCo 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. PSCo has the following reportable segments: • Regulated Electric — The regulated electric utility segment generates electricity which is transmitted and distributed in Colorado. 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 PSCo’s wholesale commodity and trading operations. • Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Colorado. PSCo also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments primarily include steam revenue, appliance repair services and non-utility real estate activities. Asset and capital expenditure information is not provided for PSCo’s reportable segments because, as an integrated electric and natural gas utility, PSCo operates significant assets that are not dedicated to a specific business segment and 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. PSCo’s segment information: Three Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues $ 1,113 $ 1,137 Net income 247 243 Regulated Natural Gas Total revenues $ 165 $ 235 Net (loss) income (16) 4 All Other Total revenues (a) $ 12 $ 11 Net loss (2) — Consolidated Total Total operating revenues (a) $ 1,290 $ 1,383 Net income 229 247 (a) Total revenues include $1 million and $2 million of other affiliate revenue for the three months ended Sept. 30, 2023 and 2022. Nine Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues $ 2,877 $ 2,849 Net income 449 455 Regulated Natural Gas Total revenues $ 1,247 $ 1,087 Net income 81 99 All Other Total revenues (a) $ 41 $ 39 Net income 6 1 Consolidated Total Total operating revenues (a) $ 4,165 $ 3,975 Net income 536 555 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 229 | $ 247 | $ 536 | $ 555 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of Dollars) Sept. 30, 2023 Dec. 31, 2022 Accounts receivable, net Accounts receivable $ 480 $ 616 Less allowance for bad debts (57) (54) Accounts receivable, net $ 423 $ 562 |
Inventories | (Millions of Dollars) Sept. 30, 2023 Dec. 31, 2022 Inventories Materials and supplies $ 86 $ 80 Fuel 78 68 Natural gas 90 171 Total inventories $ 254 $ 319 |
Property, Plant and Equipment, Net | (Millions of Dollars) Sept. 30, 2023 Dec. 31, 2022 Property, plant and equipment, net Electric plant $ 16,343 $ 15,771 Natural gas plant 6,293 5,949 Common and other property 1,500 1,415 Plant to be retired (a) 1,242 1,305 Construction work in progress 1,288 877 Total property, plant and equipment 26,666 25,317 Less accumulated depreciation (6,013) (5,665) Property, plant and equipment, net $ 20,653 $ 19,652 |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding: (Amounts in Millions, Except Interest Rates) Three Months Ended Sept. 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 294 Average amount outstanding 5 71 Maximum amount outstanding 72 328 Weighted average interest rate, computed on a daily basis 5.45 % 2.56 % Weighted average interest rate at period end N/A 4.73 |
Credit Facilities | At Sept. 30, 2023, PSCo had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 29 $ 671 (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 Sept. 30, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 250 $ 250 Amount outstanding at period end 188 — Average amount outstanding 27 29 Maximum amount outstanding 188 250 Weighted average interest rate, computed on a daily basis 5.26 % 1.66 % Weighted average interest rate at period end 5.30 N/A |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | PSCo’s operating revenues consisted of the following: Three Months Ended Sept. 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 398 $ 88 $ 5 $ 491 C&I 538 44 7 589 Other 13 — — 13 Total retail 949 132 12 1,093 Wholesale 53 — — 53 Transmission 25 — — 25 Other 16 27 — 43 Total revenue from contracts with customers 1,043 159 12 1,214 Alternative revenue and other 70 6 — 76 Total revenues $ 1,113 $ 165 $ 12 $ 1,290 Three Months Ended Sept. 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 431 $ 136 $ 4 $ 571 C&I 556 64 7 627 Other 13 — — 13 Total retail 1,000 200 11 1,211 Wholesale 63 — — 63 Transmission 25 — — 25 Other 15 30 — 45 Total revenue from contracts with customers 1,103 230 11 1,344 Alternative revenue and other 34 5 — 39 Total revenues $ 1,137 $ 235 $ 11 $ 1,383 Nine Months Ended Sept. 30, 2023 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 1,003 $ 790 $ 14 $ 1,807 C&I 1,403 335 27 1,765 Other 40 — — 40 Total retail 2,446 1,125 41 3,612 Wholesale 170 — — 170 Transmission 68 — — 68 Other 44 99 — 143 Total revenue from contracts with customers 2,728 1,224 41 3,993 Alternative revenue and other 149 23 — 172 Total revenues $ 2,877 $ 1,247 $ 41 $ 4,165 Nine Months Ended Sept. 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 1,025 $ 686 $ 11 $ 1,722 C&I 1,383 279 16 1,678 Other 38 — — 38 Total retail 2,446 965 27 3,438 Wholesale 200 — — 200 Transmission 65 — — 65 Other 39 106 — 145 Total revenue from contracts with customers 2,750 1,071 27 3,848 Alternative revenue and other 99 16 12 127 Total revenues $ 2,849 $ 1,087 $ 39 $ 3,975 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory rate and ETR: Nine Months Ended Sept. 30 2023 2022 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 3.5 3.6 (Decreases) increases: Wind PTCs (a) (14.9) (14.2) Plant regulatory differences (b) (5.4) (4.4) Other tax credits, net operating loss & tax credit allowances (1.0) (1.1) Other (net) 0.6 0.4 Effective income tax rate 3.8 % 5.3 % (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) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity Forwards and Options | Gross notional amounts of commodity forwards and options: (Amounts in Millions) (a)(b) Sept. 30, 2023 Dec. 31, 2022 Megawatt hours of electricity 4 8 Million British thermal units of natural gas 28 43 (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 | Pre-Tax Losses Reclassified into Income During the Period from: Pre-Tax Gains (Losses) Recognized During the Period in Income (Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory Assets and Liabilities Three Months Ended Sept. 30, 2023 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 2 (a) Total $ — $ — $ 2 Nine Months Ended Sept. 30, 2023 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ (3) (a) Natural gas commodity — 10 (c) (12) (c)(d) Total $ — $ 10 $ (15) Three Months Ended Sept. 30, 2022 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 2 (a) Total $ — $ — $ 2 Nine Months Ended Sept. 30, 2022 Derivatives designated as cash flow hedges Interest rate $ 1 (b) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 3 (a) Natural gas commodity — 2 (c) (11) (c)(d) Total $ — $ 2 $ (8) (a) Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers. (b) Recorded to interest charges. (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 | Sept. 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 $ 3 $ 42 $ 3 $ 48 $ (37) $ 11 $ 16 $ 220 $ 1 $ 237 $ (184) $ 53 Natural gas commodity — 2 — 2 — 2 — 12 — 12 — 12 Total current derivative assets $ 3 $ 44 $ 3 $ 50 $ (37) $ 13 $ 16 $ 232 $ 1 $ 249 $ (184) $ 65 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 8 $ 2 $ 8 $ 18 $ (5) $ 13 $ 12 $ 32 $ 9 $ 53 $ (31) $ 22 Total noncurrent derivative assets $ 8 $ 2 $ 8 $ 18 $ (5) $ 13 $ 12 $ 32 $ 9 $ 53 $ (31) $ 22 Sept. 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 $ 1 $ 51 $ — $ 52 $ (43) $ 9 $ 5 $ 237 $ 1 $ 243 $ (223) $ 20 Natural gas commodity — — — — — — — 10 — 10 — 10 Total current derivative liabilities $ 1 $ 51 $ — $ 52 $ (43) $ 9 $ 5 $ 247 $ 1 $ 253 $ (223) $ 30 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 4 $ 4 $ — $ 8 $ (6) $ 2 $ 7 $ 40 $ — $ 47 $ (38) $ 9 Total noncurrent derivative liabilities $ 4 $ 4 $ — $ 8 $ (6) $ 2 $ 7 $ 40 $ — $ 47 $ (38) $ 9 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in Level 3 commodity derivatives: Three Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Balance at July 1 $ 9 $ (30) Settlements (a) — 5 Net transactions recorded during the period: Gains recognized in earnings (a) 2 1 Balance at Sept. 30 $ 11 $ (24) Nine Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Balance at Jan. 1 $ 9 $ (63) Settlements (a) — 9 Net transactions recorded during the period: Gains recognized in earnings (a) 2 30 Balance at Sept. 30 $ 11 $ (24) (a) 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. |
Carrying Amount and Fair Value of Long-term Debt | Sept. 30, 2023 Dec. 31, 2022 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 7,449 $ 5,932 $ 6,860 $ 5,881 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | Three Months Ended Sept. 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 5 $ 7 $ — $ 1 Interest cost (a) 14 10 4 2 Expected return on plan assets (a) (19) (19) (3) (4) Amortization of prior service credit (a) — — — (1) Amortization of net loss (a) 1 6 — — Settlement charge (b) — 2 — — Net periodic benefit (credit) cost 1 6 1 (2) Effects of regulation 3 (2) — 1 Net benefit cost (credit) recognized for financial reporting $ 4 $ 4 $ 1 $ (1) Nine Months Ended Sept. 30 2023 2022 2023 2022 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 14 $ 22 $ — $ 1 Interest cost (a) 43 31 12 8 Expected return on plan assets (a) (57) (58) (11) (12) Amortization of prior service credit (a) — — — (2) Amortization of net loss (a) 2 17 1 1 Settlement charge (b) — 2 — — Net periodic benefit (credit) cost 2 14 2 (4) Effects of regulation 9 3 — 2 Net benefit cost (credit) recognized for financial reporting $ 11 $ 17 $ 2 $ (2) (a) The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. (b) A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In the third quarter of 2022 as a result of lump-sum distributions during the 2022 plan year, PSCo recorded a pension settlement charge of $2 million, the majority of which was not recognized due to the effects of regulation. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Components of Lease Expense | Components of lease expense: Three Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 23 $ 22 Other operating leases (a) 5 3 Total operating lease expense (b) $ 28 $ 25 Finance leases Amortization of ROU assets $ 1 $ 1 Interest expense on lease liability 4 4 Total finance lease expense $ 5 $ 5 (a) Includes immaterial short-term lease expense for both 2023 and 2022. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Nine Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 68 $ 70 Other operating leases (a) 15 13 Total operating lease expense (b) $ 83 $ 83 Finance leases Amortization of ROU assets $ 2 $ 3 Interest expense on lease liability 12 12 Total finance lease expense $ 14 $ 15 (a) Includes immaterial short-term lease expense for both 2023 and 2022. (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. |
Schedule of Future Commitments under Operating Leases | Commitments under operating and finance leases as of Sept. 30, 2023: (Millions of Dollars) PPA Operating Leases Other Operating Lease Total Operating Leases Finance Leases Total minimum obligation $ 394 $ 63 $ 457 $ 423 Interest component of obligation (38) (7) (45) (308) Present value of minimum obligation $ 356 $ 56 412 115 Less current portion (97) (3) Noncurrent operating and finance lease liabilities $ 315 $ 112 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | Changes in accumulated other comprehensive loss, net of tax: Three Months Ended Sept. 30, 2023 Three Months Ended Sept. 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 July 1 $ (20) $ (1) $ (21) $ (21) $ (1) $ (22) Losses reclassified from net accumulated other comprehensive loss: Amortization of net actuarial loss (a) — (1) (1) — — — Interest rate derivatives (b) 1 — 1 1 — 1 Net current period other comprehensive income 1 (1) — 1 — 1 Accumulated other comprehensive loss at Sept. 30 $ (19) $ (2) $ (21) $ (20) $ (1) $ (21) Nine Months Ended Sept. 30, 2023 Nine Months Ended Sept. 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 $ (20) $ (2) $ (22) $ (21) $ (1) $ (22) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives (b) 1 — 1 1 — 1 Net current period other comprehensive income 1 — 1 1 — 1 Accumulated other comprehensive loss at Sept. 30 $ (19) $ (2) $ (21) $ (20) $ (1) $ (21) (a) Included in the computation of net periodic pension and postretirement benefit costs. See Note 8 for further information. (b) Included in interest charges. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Results from Operations by Reportable Segment | PSCo’s segment information: Three Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues $ 1,113 $ 1,137 Net income 247 243 Regulated Natural Gas Total revenues $ 165 $ 235 Net (loss) income (16) 4 All Other Total revenues (a) $ 12 $ 11 Net loss (2) — Consolidated Total Total operating revenues (a) $ 1,290 $ 1,383 Net income 229 247 (a) Total revenues include $1 million and $2 million of other affiliate revenue for the three months ended Sept. 30, 2023 and 2022. Nine Months Ended Sept. 30 (Millions of Dollars) 2023 2022 Regulated Electric Total revenues $ 2,877 $ 2,849 Net income 449 455 Regulated Natural Gas Total revenues $ 1,247 $ 1,087 Net income 81 99 All Other Total revenues (a) $ 41 $ 39 Net income 6 1 Consolidated Total Total operating revenues (a) $ 4,165 $ 3,975 Net income 536 555 |
Selected Balance Sheet Data (De
Selected Balance Sheet Data (Details) - Related Party - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Accounts receivable | $ 480 | $ 616 |
Accounts Receivable, Allowance for Credit Loss, Current | 57 | 54 |
Accounts receivable, net | $ 423 | $ 562 |
Selected Balance Sheet Data Bal
Selected Balance Sheet Data Balance Sheet Related Disclosures, Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Public Utilities, Inventory [Line Items] | ||
Total inventories | $ 254 | $ 319 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 86 | 80 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 78 | 68 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 90 | $ 171 |
Selected Balance Sheet Data B_2
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 26,666 | $ 25,317 | |
Less accumulated depreciation | (6,013) | (5,665) | |
Property, plant and equipment, net | 20,653 | 19,652 | |
Electric plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,343 | 15,771 | |
Natural gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 6,293 | 5,949 | |
Common and other property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,500 | 1,415 | |
Plant to be retired | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | [1] | 1,242 | 1,305 |
Construction work in progress | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,288 | $ 877 | |
[1]Amounts include Comanche Units 2 and 3, Craig Units 1 and 2, Hayden Units 1 and 2 and coal generation assets at Pawnee pending facility gas conversion. Amounts are presented net of accumulated depreciation. |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments - Short-Term Borrowings (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 294,000,000 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 250,000,000 | 250,000,000 |
Short-term debt | 188,000,000 | 0 |
Average amount outstanding | 27,000,000 | 29,000,000 |
Maximum amount outstanding | $ 188,000,000 | $ 250,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 5.26% | 1.66% |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 5.30% | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 700,000,000 | $ 700,000,000 |
Short-term debt | 0 | 294,000,000 |
Average amount outstanding | 5,000,000 | 71,000,000 |
Maximum amount outstanding | $ 72,000,000 | $ 328,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 5.45% | 2.56% |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 4.73% |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments - Letters of Credit (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year | |
Short-term debt | $ 0 | $ 294 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Short-term debt | $ 29 | $ 27 |
Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year |
Borrowings and Other Financin_5
Borrowings and Other Financing Instruments - Credit Facility (Details) | 9 Months Ended | ||
Sep. 30, 2023 USD ($) Plan | Dec. 31, 2022 USD ($) | ||
Line of Credit Facility [Line Items] | |||
Term of letters of credit (in years) | 1 year | ||
Number of extension you can request | Plan | 2 | ||
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 700,000,000 | |
Drawn | [2] | 29,000,000 | |
Available | 671,000,000 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1]Expires in September 2027.[2]Includes outstanding commercial paper and letters of credit. |
Borrowings and Other Financin_6
Borrowings and Other Financing Instruments - Borrowings and Other Financing Instruments, Long-Term Borrowings and Other Financing Instruments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Term of letters of credit (in years) | 1 year |
Bonds [Member] | Series Due April 1, 2053 | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 850 |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | $ 1,093 | $ 1,211 | $ 3,612 | $ 3,438 |
Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 491 | 571 | 1,807 | 1,722 |
Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 589 | 627 | 1,765 | 1,678 |
Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 13 | 13 | 40 | 38 |
Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 53 | 63 | 170 | 200 |
Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 25 | 25 | 68 | 65 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 43 | 45 | 143 | 145 |
Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 1,214 | 1,344 | 3,993 | 3,848 |
Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 76 | 39 | 172 | 127 |
Regulated Electric | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 949 | 1,000 | 2,446 | 2,446 |
Regulated Electric | Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 398 | 431 | 1,003 | 1,025 |
Regulated Electric | Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 538 | 556 | 1,403 | 1,383 |
Regulated Electric | Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 13 | 13 | 40 | 38 |
Regulated Electric | Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 53 | 63 | 170 | 200 |
Regulated Electric | Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 25 | 25 | 68 | 65 |
Regulated Electric | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 16 | 15 | 44 | 39 |
Regulated Electric | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 1,043 | 1,103 | 2,728 | 2,750 |
Regulated Electric | Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 70 | 34 | 149 | 99 |
Regulated Natural Gas | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 132 | 200 | 1,125 | 965 |
Regulated Natural Gas | Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 88 | 136 | 790 | 686 |
Regulated Natural Gas | Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 44 | 64 | 335 | 279 |
Regulated Natural Gas | Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Regulated Natural Gas | Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Regulated Natural Gas | Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Regulated Natural Gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 27 | 30 | 99 | 106 |
Regulated Natural Gas | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 159 | 230 | 1,224 | 1,071 |
Regulated Natural Gas | Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 6 | 5 | 23 | 16 |
All Other | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 12 | 11 | 41 | 27 |
All Other | Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 5 | 4 | 14 | 11 |
All Other | Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 7 | 7 | 27 | 16 |
All Other | Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 12 | 11 | 41 | 27 |
All Other | Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 0 | 0 | 0 | 12 |
Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,290 | 1,383 | 4,165 | 3,975 |
Total revenues | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,113 | 1,137 | 2,877 | 2,849 |
Total revenues | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 165 | 235 | 1,247 | 1,087 |
Total revenues | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 12 | $ 11 | $ 41 | $ 39 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 3.50% | 3.60% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | [1] | (14.90%) | (14.20%) |
Effective Income Tax Rate Reconciliation, Other Regulatory Items, Percent | [2] | (5.40%) | (4.40%) |
Effective Income Tax Rate Reconciliation, Net Operating Loss Carryback, Percent | (1.00%) | (1.10%) | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.60% | 0.40% | |
Effective Income Tax Rate Reconciliation, Percent | 3.80% | 5.30% | |
[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. |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Interest Rate Derivatives (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Derivative [Line Items] | |
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | $ 1 |
Interest Rate Swap | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Commodity Derivatives (Details) MWh in Millions, MMBTU in Millions, $ in Millions | Sep. 30, 2023 USD ($) MWh MMBTU | Dec. 31, 2022 MMBTU MWh | |
cash flow hedge commodity [Member] | |||
Derivative [Line Items] | |||
Commodity contracts designated as cash flow hedges | $ | $ 0 | ||
Electric Commodity (in megawatt hours) | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional amount | MWh | [1],[2] | 4 | 8 |
Natural Gas Commodity (in million British thermal units) | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 28 | 43 |
[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. |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Consideration of Credit Risk and Concentrations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) Counterparty | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Counterparty | Sep. 30, 2022 USD ($) | ||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 | $ 0 | $ 0 | |
Other Derivative Instruments | |||||
Consideration of Credit Risk and Concentrations [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) | 0 | 0 | (10) | 2 | |
Pre-tax gains (losses) recognized during the period in income | 2 | 2 | (15) | (8) | |
Designated as Hedging Instrument | Cash Flow Hedges | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | 1 | 1 | 1 | |
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | |
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | 0 | 0 | |
Natural Gas Commodity | Other Derivative Instruments | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | |||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [1] | (10) | 2 | ||
Pre-tax gains (losses) recognized during the period in income | [1],[2] | (12) | (11) | ||
Commodity Trading | Other Derivative Instruments | |||||
Consideration of Credit Risk and Concentrations [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) | 0 | 0 | 0 | 0 | |
Pre-tax gains (losses) recognized during the period in income | [3] | 2 | 2 | (3) | 3 |
Interest Rate | Designated as Hedging Instrument | Cash Flow Hedges | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [4] | 1 | 1 | 1 | 1 |
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | |
Pre-tax gains (losses) recognized during the period in income | $ 0 | $ 0 | $ 0 | $ 0 | |
Credit Concentration Risk | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 10 | 10 | |||
Credit Concentration Risk | Municipal or Cooperative Entities or Other Utilities [Member] | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 7 | 7 | |||
Credit Concentration Risk | External Credit Rating, Investment Grade [Member] | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 4 | 4 | |||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ 32 | $ 32 | |||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 45% | 45% | |||
Credit Concentration Risk | External Credit Rating, Non Investment Grade [Member] | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 0 | 0 | |||
Credit Concentration Risk | Internal Investment Grade | |||||
Consideration of Credit Risk and Concentrations [Abstract] | |||||
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 | $ 25 | $ 25 | |||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 35% | 35% | |||
[1]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.[2]Relates primarily to option premium amortization[3]Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.[4]Recorded to interest charges. |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Credit Related Contingent Features (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Derivative instruments in a gross liability position | $ 0 | $ 0 |
Collateral posted related to adequate assurance clauses in derivative contracts | 0 | 0 |
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value | $ 1 | $ 0 |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Derivatives, Fair Value [Line Items] | ||||||
Return Cash Collateral | $ 0 | $ 0 | $ 0 | |||
Reclaim Cash Collateral | 7 | 7 | 46 | |||
Other Derivative Instruments | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | $ 0 | (10) | $ 2 | ||
Other Derivative Instruments | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [1] | (10) | $ 2 | |||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 2 | 2 | 12 | |||
Netting | [2] | 0 | 0 | 0 | ||
Derivative Asset, Net | 2 | 2 | 12 | |||
Derivative Liability, Gross | 0 | 0 | 10 | |||
Netting | [2] | 0 | 0 | 0 | ||
Derivative Liability, Net | 0 | 0 | 10 | |||
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 | Natural Gas Commodity | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 2 | 2 | 12 | |||
Derivative Liability, Gross | 0 | 0 | 10 | |||
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 Current Assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 50 | 50 | 249 | |||
Netting | [2] | (37) | (37) | (184) | ||
Derivative Asset, Net | 13 | 13 | 65 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 3 | 3 | 16 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 44 | 44 | 232 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 3 | 3 | 1 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 48 | 48 | 237 | |||
Netting | [2] | (37) | (37) | (184) | ||
Derivative Asset, Net | 11 | 11 | 53 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 3 | 3 | 16 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 42 | 42 | 220 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 3 | 3 | 1 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 18 | 18 | 53 | |||
Netting | [2] | (5) | (5) | (31) | ||
Derivative Asset, Net | 13 | 13 | 22 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 8 | 8 | 12 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 2 | 2 | 32 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 8 | 8 | 9 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Gross | 18 | 18 | 53 | |||
Netting | [2] | (5) | (5) | (31) | ||
Derivative Asset, Net | 13 | 13 | 22 | |||
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 | 8 | 8 | 12 | |||
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 | 2 | 2 | 32 | |||
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 | 8 | 8 | 9 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 52 | 52 | 253 | |||
Netting | [2] | (43) | (43) | (223) | ||
Derivative Liability, Net | 9 | 9 | 30 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 1 | 1 | 5 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 51 | 51 | 247 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 0 | 0 | 1 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 52 | 52 | 243 | |||
Netting | [2] | (43) | (43) | (223) | ||
Derivative Liability, Net | 9 | 9 | 20 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 1 | 1 | 5 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 51 | 51 | 237 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 0 | 0 | 1 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 8 | 8 | 47 | |||
Netting | [2] | (6) | (6) | (38) | ||
Derivative Liability, Net | 2 | 2 | 9 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 1 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 4 | 4 | 7 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 2 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 4 | 4 | 40 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 3 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Gross | 8 | 8 | 47 | |||
Netting | [2] | (6) | (6) | (38) | ||
Derivative Liability, Net | 2 | 2 | 9 | |||
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 | 4 | 4 | 7 | |||
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 | 4 | 4 | 40 | |||
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 | $ 0 | $ 0 | $ 0 | |||
[1]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.[2]PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At Sept. 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral. At Sept. 30, 2023 and Dec. 31, 2022, derivative assets and liabilities include rights to reclaim cash collateral of $7 million and $46 million, respectively. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities - Changes in Level 3 Commodity Derivatives (Details) - Commodity Contract - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning Balance | $ 9 | $ (30) | $ 9 | $ (63) | |
Settlements | [1] | 0 | 5 | 0 | 9 |
(Losses) gains recognized in earnings | [1] | 2 | 1 | 2 | 30 |
Ending Balance | $ 11 | $ (24) | $ 11 | $ (24) | |
[1]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 Financial Asset_9
Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 7,449 | $ 6,860 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value | $ 5,932 | $ 5,881 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||||
Pension Plan [Member] | ||||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||
Service cost | $ 5 | $ 7 | $ 14 | $ 22 | ||||
Interest Cost | [1] | 14 | 10 | 43 | 31 | |||
Expected return on Plan Assets | [1] | (19) | (19) | (57) | (58) | |||
Amortization of prior service credit | [1] | 0 | 0 | 0 | 0 | |||
Amortization of net loss | [1] | 1 | 6 | 2 | 17 | |||
Net periodic benefit (credit) cost | 1 | 6 | 2 | 14 | ||||
Effects of regulation | 3 | (2) | 9 | 3 | ||||
Net benefit cost (credit) recognized for financial reporting | 4 | 4 | 11 | 17 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 2 | [2] | 0 | 2 | [2] | ||
Pension Plan [Member] | Xcel Energy Inc. | ||||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||
Total contributions to the pension plans during the period | $ 50 | |||||||
Other Postretirement Benefits Plan [Member] | ||||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||
Service cost | 0 | 1 | 0 | 1 | ||||
Interest Cost | [1] | 4 | 2 | 12 | 8 | |||
Expected return on Plan Assets | [1] | (3) | (4) | (11) | (12) | |||
Amortization of prior service credit | [1] | 0 | (1) | 0 | (2) | |||
Amortization of net loss | [1] | 0 | 0 | 1 | 1 | |||
Net periodic benefit (credit) cost | 1 | (2) | 2 | (4) | ||||
Effects of regulation | 0 | 1 | 0 | 2 | ||||
Net benefit cost (credit) recognized for financial reporting | 1 | (1) | 2 | (2) | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1]The components of net periodic cost other than the service cost component are included in the line item “Other income (expense), net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset[2]A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In the third quarter of 2022 as a result of lump-sum distributions during the 2022 plan year, PSCo recorded a pension settlement charge of $2 million, the majority of which was not recognized due to the effects of regulation |
Commitments and Contingencies -
Commitments and Contingencies - MGP, Landfill and Disposal Sites (Details) | Sep. 30, 2023 |
Other MGP, Landfill, or Disposal Sites | |
Loss Contingencies [Line Items] | |
Number of identified MGP sites under current investigation and/or remediation | 2 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Requirements - Water and Waste (Details) $ in Millions | Sep. 30, 2023 USD ($) sites |
Site Contingency [Line Items] | |
Number of sites that will excavate and process ash for beneficial use | sites | 2 |
Number of sites where investigation and feasibility studies for additional corrective action related to offsite groundwater are ongoing | sites | 3 |
Federal Coal Ash Regulation | |
Site Contingency [Line Items] | |
Number of sites where regulated ash units will still be in operation at a specified date | 5 |
Estimated cost to remediate groundwater sampling results | $ | $ 40 |
Federal Coal Ash Regulation | Maximum [Member] | |
Site Contingency [Line Items] | |
Cost of Beneficial Use Coal Ash Project | $ | $ 45 |
Commitments and Contingencies_3
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | $ 28 | [1] | $ 25 | [1] | $ 83 | [2] | $ 83 | [2] | |
Finance Lease, Right-of-Use Asset, Amortization | 1 | 1 | 2 | 3 | |||||
Finance Lease, Interest Expense | 4 | 4 | 12 | 12 | |||||
Finance Lease, Cost | 5 | 5 | 14 | 15 | |||||
Lessee, Operating Lease, Liability, Payments, Due | 457 | 457 | |||||||
Total minimum obligation | 423 | 423 | |||||||
Interest component of obligation | (45) | (45) | |||||||
Finance Lease, Liability, Undiscounted Excess Amount | (308) | (308) | |||||||
Operating Lease, Liability | 412 | 412 | |||||||
Finance Lease, Liability | 115 | 115 | |||||||
Less current portion | (97) | (97) | $ (80) | ||||||
Less current portion | (3) | (3) | |||||||
Operating lease liabilities | 315 | 315 | $ 379 | ||||||
Noncurrent operating and finance lease liabilities | 112 | 112 | |||||||
PPAs | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | 23 | 22 | 68 | 70 | |||||
Lessee, Operating Lease, Liability, Payments, Due | 394 | 394 | |||||||
Interest component of obligation | (38) | (38) | |||||||
Operating Lease, Liability | 356 | 356 | |||||||
Other | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | 5 | [3] | $ 3 | [3] | 15 | [4] | $ 13 | [4] | |
Lessee, Operating Lease, Liability, Payments, Due | 63 | 63 | |||||||
Interest component of obligation | (7) | (7) | |||||||
Operating Lease, Liability | $ 56 | $ 56 | |||||||
[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 immaterial short-term lease expense for both 2023 and 2022.[4]Includes immaterial short-term lease expense for both 2023 and 2022. |
VIEs (Details)
VIEs (Details) - MW | Sep. 30, 2023 | Dec. 31, 2022 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Other Commitments [Line Items] | ||
Generating capacity under long term purchased power agreements (in MW) | 1,509 | 1,442 |
Commitments and Contingencies_4
Commitments and Contingencies - Comanche Unit 3 Litigation (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Other Commitments [Line Items] | |
Cap of noneconomic loss in a civil action (CORE) | $ 253 |
Cap of noneconomic loss in a civil action (CORE withdrawal) | 187 |
CORE outcome excluding interest | 26 |
CORE outcome total | $ 34 |
Commitments and Contingencies_5
Commitments and Contingencies - Marshall Wildfire (Details) $ in Millions | Sep. 30, 2023 USD ($) | Jul. 24, 2023 numberOfPlaintiffs complaint |
Commitments and Contingencies Disclosure [Abstract] | ||
Estimated property losses caused by Marshall Wildfire | $ 2,000 | |
Number of complaints related to the Marshall Wildfire | complaint | 14 | |
Number of plaintiffs related to the Marshall Wildfire | numberOfPlaintiffs | 675 | |
Cap of noneconomic loss in a civil action other than a medical malpractice under Colorado law | 0.6 | |
Amount of insurance coverage | $ 500 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | $ 9,230 | ||||
Accumulated other comprehensive loss at end of period | $ 9,353 | 9,353 | |||
Income Tax Expense (Benefit) | 21 | $ 31 | 21 | $ 31 | |
Gains and Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (20) | (21) | (20) | (21) | |
Losses reclassified from net accumulated other comprehensive loss | 0 | 0 | |||
Net current period other comprehensive loss | 1 | 1 | 1 | 1 | |
Accumulated other comprehensive loss at end of period | (19) | (20) | (19) | (20) | |
Gains and Losses on Cash Flow Hedges | Interest Rate Swap | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Losses reclassified from net accumulated other comprehensive loss | [1] | (1) | (1) | (1) | (1) |
Defined Benefit and Postretirement Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (1) | (1) | (2) | (1) | |
Losses reclassified from net accumulated other comprehensive loss | 1 | 0 | |||
Net current period other comprehensive loss | (1) | 0 | 0 | 0 | |
Accumulated other comprehensive loss at end of period | (2) | (1) | (2) | (1) | |
Defined Benefit and Postretirement Items | Interest Rate Swap | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Losses reclassified from net accumulated other comprehensive loss | [1] | 0 | 0 | 0 | 0 |
Total | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (21) | (22) | (22) | (22) | |
Losses reclassified from net accumulated other comprehensive loss | 1 | 0 | |||
Net current period other comprehensive loss | 0 | 1 | 1 | 1 | |
Accumulated other comprehensive loss at end of period | (21) | (21) | (21) | (21) | |
Total | Interest Rate Swap | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Losses reclassified from net accumulated other comprehensive loss | [1] | $ (1) | $ (1) | $ (1) | $ (1) |
[1]Included in interest charges. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||||
Segment Reporting Information [Line Items] | ||||||||
Regulated Operating Revenue, Electric | $ 1,113 | $ 1,137 | $ 2,877 | $ 2,849 | ||||
Net income | 229 | 247 | 536 | 555 | ||||
Unregulated Operating Revenue | 12 | 11 | 41 | 39 | ||||
Regulated and Unregulated Operating Revenue | 1,290 | 1,383 | 4,165 | 3,975 | [1] | |||
Affiliate Revenue | 1 | 2 | 3 | 4 | ||||
Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Regulated and Unregulated Operating Revenue | 1,290 | 4,165 | [1] | |||||
Regulated Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues Including Intersegment Revenues | 1,113 | 1,137 | 2,877 | 2,849 | ||||
Net income | 247 | 243 | 449 | 455 | ||||
Regulated Natural Gas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues Including Intersegment Revenues | 165 | 235 | 1,247 | 1,087 | ||||
Net income | (16) | 4 | 81 | 99 | ||||
All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income | (2) | 0 | 6 | 1 | ||||
All Other | Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Unregulated Operating Revenue | $ 12 | [2] | $ 11 | [2] | $ 41 | [1] | $ 39 | [1] |
[1]Total revenues include $3 million and $4 million of other affiliate revenue for the nine months ended Sept. 30, 2023 and 2022.[2]Total revenues include $1 million and $2 million of other affiliate revenue for the three months ended Sept. 30, 2023 and 2022. |