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Income Taxes | 9 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 7 to the consolidated financial statements included in Xcel Energy’s Annual Report on Form 10-K for the year ended Dec. 31, 2020 represents, in all material respects, the current status of other income tax matters except to the extent noted below, and are incorporated by reference. Difference between the statutory rate and ETR:
|  | Three Months Ended Sept. 30 |  | Nine Months Ended Sept. 30
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State tax (net of federal tax effect) |  | 5.0 |  |  | 5.0 |  |  | 5.0 |  |  | 5.1 |
Decreases: |  |  |  |  |  |  |  |
Wind PTCs |  | (12.1) |  |  | (8.0) |  |  | (20.0) |  |  | (13.2) |
Plant regulatory differences (a) |  | (5.8) |  |  | (7.2) |  |  | (6.0) |  |  | (7.4) |
NOL carryback |  | — |  |  | (1.9) |  |  | — |  |  | (1.0) |
Other (net) |  | (1.5) |  |  | (2.2) |  |  | (1.3) |  |  | (2.5) |
Effective income tax rate |  | 6.6 | % |  | 6.7 | % |  | (1.3) | % |  | 2.0 | %
(a)Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions. Federal Audits — Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:
Tax Years |  | Expiration
2014 — 2016 |  | December 2022
2018 |  | September 2022
Additionally, the statute of limitations related to certain federal tax credit carryforwards will remain open until those credits are utilized in subsequent returns. Further, the statute of limitations related to a federal tax loss carryback claim filed in 2020 has been extended. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is unknown. State Audits — Xcel Energy files consolidated state tax returns based on income in its major operating jurisdictions and various other state income-based tax returns. As of Sept. 30, 2021, Xcel Energy’s earliest open tax years (subject to examination by state taxing authorities in its major operating jurisdictions) were as follows:
State |  | Year
Colorado |  | 2014
Minnesota |  | 2013
Texas |  | 2012
Wisconsin |  | 2016
•In February 2021, Minnesota concluded its review and commenced an audit of tax years 2015 - 2018. No material adjustments have been proposed. •In March 2021, Wisconsin began an audit of tax years 2016 - 2019. No material adjustments have been proposed. •In April 2021, Texas began an audit of tax years 2016 - 2019. No material adjustments have been proposed. •No other state income tax audits were in progress as of Sept. 30, 2021. Unrecognized Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which deductibility is highly certain, but for which there is uncertainty about the timing. A change in the timing of deductibility would not affect the ETR but would accelerate the payment to the taxing authority. Unrecognized tax benefits — permanent vs. temporary:
(Millions of Dollars) |  | Sept. 30, 2021 |  | Dec. 31, 2020
Unrecognized tax benefit — Permanent tax positions |  | $ | 46 |  |  | $ | 41 |
Unrecognized tax benefit — Temporary tax positions |  | 11 |  |  | 11 |
Total unrecognized tax benefit |  | $ | 57 |  |  | $ | 52 |
Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:
(Millions of Dollars) |  | Sept. 30, 2021 |  | Dec. 31, 2020
NOL and tax credit carryforwards |  | $ | (35) |  |  | $ | (31) |
As Internal Revenue Service audits resume and the state audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $27 million in the next 12 months. Payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. Interest payable related to unrecognized tax benefits:
(Millions of Dollars) |  | Sept. 30, 2021 |  | Dec. 31, 2020
Payable for interest related to unrecognized tax benefits at beginning of period |  | $ | (3) |  |  | $ | — |
Interest expense related to unrecognized tax benefits |  | — |  |  | (3) |
Payable for interest related to unrecognized tax benefits at end of period |  | $ | (3) |  |  | $ | (3) |
No penalties were accrued related to unrecognized tax benefits as of Sept. 30, 2021 or Dec. 31, 2020.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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