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Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Cost and Fair Value of Nuclear Decommissioning Fund Investments

Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:

						Sept. 30, 2022
												Fair Value
(Millions of Dollars)						Cost						Level 1						Level 2						Level 3						NAV						Total
Nuclear decommissioning fund (a)
Cash equivalents						$	37					$	37					$	—					$	—					$	—					$	37
Commingled funds						832						—						—						—						1,167						1,167
Debt securities						696						—						611						9						—						620
Equity securities						409						918						1						—						—						919
Total						$	1,974					$	955					$	612					$	9					$	1,167					$	2,743

(a)    Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $214 million of equity method investments and $126 million of rabbi trust assets and miscellaneous investments.

						Dec. 31, 2021
												Fair Value
(Millions of Dollars)						Cost						Level 1						Level 2						Level 3						NAV						Total
Nuclear decommissioning fund (a)
Cash equivalents						$	64					$	64					$	—					$	—					$	—					$	64
Commingled funds						856						—						—						—						1,294						1,294
Debt securities						631						—						666						9						—						675
Equity securities						411						1,222						1						—						—						1,223
Total						$	1,962					$	1,286					$	667					$	9					$	1,294					$	3,256

(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $208 million of equity method investments and $164 million of rabbi trust assets and other miscellaneous investments.

Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class

Contractual maturity dates of debt securities in the nuclear decommissioning fund as of Sept. 30, 2022:

						Final Contractual Maturity
(Millions of Dollars)						Due in 1 year or Less						Due in 1 to 5 Years						Due in 5 to 10 Years						Due after 10 years						Total
Debt securities						$	5					$	190					$	227					$	198					$	620

Rabbi Trust Securities Amortized Cost and Fair Value Measured on Recurrring Basis [Table Text Block]

Cost and fair value of assets held in rabbi trusts:

						Sept. 30, 2022
												Fair Value
(Millions of Dollars)						Cost						Level 1						Level 2						Level 3						Total
Rabbi Trusts (a)
Cash equivalents						$	1					$	1					$	—					$	—					$	1
Mutual funds						75						73						—						—						73
Total						$	76					$	74					$	—					$	—					$	74

						Dec. 31, 2021
												Fair Value
(Millions of Dollars)						Cost						Level 1						Level 2						Level 3						Total
Rabbi Trusts (a)
Cash equivalents						$	20					$	20					$	—					$	—					$	20
Mutual funds						75						89						—						—						89
Total						$	95					$	109					$	—					$	—					$	109

(a) Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets.

Gross Notional Amounts of Commodity Forwards, Options, and FTRs

Gross notional amounts of commodity forwards, options and FTRs:

(Amounts in Millions) (a)(b)						Sept. 30, 2022						Dec. 31, 2021
Megawatt hours of electricity						82						80
Million British thermal units of natural gas						151						156

(a)Not reflective of net positions in the underlying commodities.

(b)Notional amounts for options included on a gross basis but weighted for the probability of exercise.

Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income

Impact of Derivative Activity —

						Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)						Accumulated Other Comprehensive Loss						Regulatory (Assets) and Liabilities
Three Months Ended Sept. 30, 2022
Other derivative instruments:
Electric commodity						$	—					$	6
Natural gas commodity						—						(6)
Total						$	—					$	—
Nine Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges:
Interest rate						$	21					$	—
Total						$	21					$	—
Other derivative instruments:
Electric commodity						$	—					$	106
Natural gas commodity						—						(3)
Total						$	—					$	103
Three Months Ended Sept. 30, 2021
Derivatives designated as cash flow hedges:
Interest rate						$	4					$	—
Total						$	4					$	—
Other derivative instruments:
Electric commodity						$	—					$	5
Natural gas commodity						—						57
Total						$	—					$	62
Nine Months Ended Sept. 30, 2021
Derivatives designated as cash flow hedges:
Interest rate						$	5					$	—
Total						$	5					$	—
Other derivative instruments:
Electric commodity						$	—					$	18
Natural gas commodity						—						57
Total						$	—					$	75

						Pre-Tax (Gains) 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, 2022
Derivatives designated as cash flow hedges:
Interest rate						$	1		(a)			$	—					$	—
Total						$	1					$	—					$	—
Other derivative instruments:
Commodity trading						$	—					$	—					$	13		(b)
Electric commodity						—						6			(c)			—
Total						$	—					$	6					$	13
Nine Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges:
Interest rate						$	5		(a)			$	—					$	—
Total						$	5					$	—					$	—
Other derivative instruments:
Commodity trading						$	—					$	—					$	21		(b)
Electric commodity						—						(31)			(c)			—
Natural gas commodity						—						4			(d)			(17)			(d)(e)
Total						$	—					$	(27)					$	4
Three Months Ended Sept. 30, 2021
Derivatives designated as cash flow hedges:
Interest rate						$	2		(a)			$	—					$	—
Total						$	2					$	—					$	—
Other derivative instruments:
Commodity trading						$	—					$	—					$	1		(b)
Electric commodity						—						3			(c)			—
Total						$	—					$	3					$	1
Nine Months Ended Sept. 30, 2021
Derivatives designated as cash flow hedges:
Interest rate						$	7		(a)			$	—					$	—
Total						$	7					$	—					$	—
Other derivative instruments:
Commodity trading						$	—					$	—					$	49		(b)
Electric commodity						—						(26)			(c)			—
Natural gas commodity						—						8			(d)			(10)			(d)(e)
Total						$	—					$	(18)					$	39

(a)Recorded to interest charges.

(b)Recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue, as appropriate.

(c)Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. All FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value.

(d)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.

(e)Relates primarily to option premium amortization.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Recurring Fair Value Measurements — Derivative assets and liabilities measured at fair value on a recurring basis were as follows:

						Sept. 30, 2022																																				Dec. 31, 2021
						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						$	53					$	184					$	47					$	284					$	(211)					$	73					$	22					$	137					$	21					$	180					$	(134)					$	46
Electric commodity (b)						—						—						358						358						(4)						354						—						—						57						57						(1)						56
Natural gas commodity						—						26						—						26						—						26						—						18						—						18						—						18
Total current derivative assets						$	53					$	210					$	405					$	668					$	(215)					453						$	22					$	155					$	78					$	255					$	(135)					120
PPAs (c)																																				3																																				3
Current derivative instruments																																				$	456																																			$	123
Noncurrent derivative assets
Other derivative instruments:
Commodity trading						$	50					$	64					$	92					$	206					$	(120)					$	86					$	16					$	63					$	89					$	168					$	(107)					$	61
Total noncurrent derivative assets						$	50					$	64					$	92					$	206					$	(120)					86						$	16					$	63					$	89					$	168					$	(107)					61
PPAs (c)																																				4																																				6
Noncurrent derivative instruments																																				$	90																																			$	67

						Sept. 30, 2022																																				Dec. 31, 2021
						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						$	44					$	223					$	23					$	290					$	(219)					$	71					$	19					$	148					$	20					$	187					$	(143)					$	44
Electric commodity (b)						—						—						4						4						(4)						—						—						—						1						1						(1)						—
Natural gas commodity						—						12						—						12						—						12						—						8						—						8						—						8
Total current derivative liabilities						$	44					$	235					$	27					$	306					$	(223)					83						$	19					$	156					$	21					$	196					$	(144)					52
PPAs (c)																																				17																																				17
Current derivative instruments																																				$	100																																			$	69
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading						$	59					$	86					$	68					$	213					$	(132)					$	81					$	18					$	48					$	127					$	193					$	(128)					$	65
Total noncurrent derivative liabilities						$	59					$	86					$	68					$	213					$	(132)					81						$	18					$	48					$	127					$	193					$	(128)					65
PPAs (c)																																				33																																				40
Noncurrent derivative instruments																																				$	114																																			$	105

(a)Xcel Energy nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At Sept. 30, 2022 and Dec. 31, 2021, derivatives include $2 million and no obligations to return cash collateral, respectively. At Sept. 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include rights to reclaim cash collateral of $22 million and $30 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.

(b)Amounts relate to FTR instruments administered by MISO and SPP (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, fair values for FTRs are offset/deferred as a regulatory asset or liability and do not have a material impact on net income.

(c)During 2006, Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, contracts are no longer adjusted to fair value and the previous carrying value of these contracts is being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

Change in Level 3 Commodity Derivative

Changes in Level 3 commodity derivatives:

						Three Months Ended Sept. 30
(Millions of Dollars)						2022						2021
Balance at July 1						$	485					$	71
Purchases / Issuances (a)						4						2
Settlements (a)						(106)						(53)
Net transactions recorded during the period:
Gains recognized in earnings (b)						16						12
Net gains recognized as regulatory assets and liabilities (a)						3						27
Balance at Sept. 30						$	402					$	59
						Nine Months Ended Sept. 30
(Millions of Dollars)						2022						2021
Balance at Jan. 1						$	19					$	(49)
Purchases / Issuances (a)						398						65
Settlements (a)						(286)						(101)
Net transactions recorded during the period:
Gains recognized in earnings (b)						136						59
Net gains recognized as regulatory assets and liabilities (a)						135						85
Balance at Sept. 30						$	402					$	59

(a)Relates primarily to FTR instruments administered by MISO and SPP (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income.

(b)Relates to commodity trading and is subject to offsetting losses of derivative instruments categorized as levels 1 and 2 in the consolidated income statement.

Carrying Amount and Fair Value of Long-term Debt

Other financial instruments for which the carrying amount did not equal fair value:

						Sept. 30, 2022												Dec. 31, 2021
(Millions of Dollars)						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Long-term debt, including current portion						$	23,960					$	20,560					$	22,380					$	25,232

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