Xcel Energy 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.


	Three Months Ended June 30
(Millions of Dollars)	2022		2021
Operating leases
PPA capacity payments	$	60	$	56
Other operating leases (a)	9		9
Total operating lease expense (b)	$	69	$	65
Finance leases
Amortization of ROU assets	$	1	$	2
Interest expense on lease liability	4		4
Total finance lease expense	$	5	$	6

(b)PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power.


	Six Months Ended June 30
(Millions of Dollars)	2022		2021
Operating leases
PPA capacity payments	$	123	$	114
Other operating leases (a)	20		17
Total operating lease expense (b)	$	143	$	131
Finance leases
Amortization of ROU assets	$	2	$	4
Interest expense on lease liability	8		8
Total finance lease expense	$	10	$	12


(Millions of Dollars)	PPA Operating Leases		Other Operating Leases		Total Operating Leases		Finance Leases (a)
Total minimum obligation	$	1,303	$	171	$	1,474	$	236
Interest component of obligation	(186)		(31)		(217)		(165)
Present value of minimum obligation	$	1,117	140		1,257		71
Less current portion					(210)		(4)
Noncurrent operating and finance lease liabilities					$	1,047	$	67

(a)Excludes certain amounts related to Xcel Energy’s 50% ownership interest in WYCO.

Guarantees and Bond Indemnifications — Xcel Energy provides guarantees and bond indemnities, which guarantee payment or performance. Xcel Energy Inc.’s exposure is based upon the net liability under the agreements. Most of the guarantees and bond indemnities issued by Xcel Energy have a stated maximum amount.

As of June 30, 2022 and Dec. 31, 2021, Xcel Energy had no assets held as collateral related to their guarantees, bond indemnities and indemnification agreements. Guarantees and bond indemnities issued and outstanding for Xcel Energy were approximately $61 million and $60 million at June 30, 2022 and Dec. 31, 2021, respectively.

Other Indemnification Agreements — Xcel Energy provides indemnifications through various contracts. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, as well as breaches of representations and warranties, including corporate existence, transaction authorization and income tax matters with respect to assets sold.

Xcel Energy’s obligations under these agreements may be limited in duration and amount. Maximum future payments under these indemnifications cannot be reasonably estimated.