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Fair Value of Financial Assets and Liabilities | 9 Months Ended
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Sep. 30, 2025
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: Investments in equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs. The investments in commingled funds may be redeemed for NAV with proper notice. Private equity commingled funds require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate commingled funds may be redeemed with proper notice, however, withdrawals may be delayed or discounted as a result of fund illiquidity. Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. 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. Electric commodity derivatives held by NSP-Minnesota and SPS include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from an RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path. The values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments. FTRs are recognized at fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction values of FTRs, these fair value measurements have been assigned a Level 3 classification. Net congestion costs, including the impact of FTR settlements, are shared through fuel and purchased energy cost recovery mechanisms. As such, the fair value of the unsettled instruments (i.e., derivative asset or liability) is offset/deferred as a regulatory asset or liability. Non-Derivative Fair Value Measurements Nuclear Decommissioning Fund The NRC requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning these facilities. The fund contains cash equivalents, debt securities, equity securities and other investments. NSP-Minnesota uses the MPUC approved asset allocation for the investment targets by asset class for the qualified trust. NSP-Minnesota recognizes the costs of funding the decommissioning over the lives of the nuclear plants, assuming rate recovery of all costs. Realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota’s regulatory asset or as a regulatory liability (dependent on funding status) for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund are deferred as a component of the regulatory asset/liability. Unrealized gains for the nuclear decommissioning fund were $1.7 billion and $1.4 billion as of Sept. 30, 2025 and Dec. 31, 2024, respectively, and unrealized losses were $44 million and $49 million as of Sept. 30, 2025 and Dec. 31, 2024, respectively. Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:
|  | Sept. 30, 2025
|  |  |  | Fair Value
(Millions of Dollars) |  | Cost |  | Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total
Nuclear decommissioning fund (a)
Cash equivalents |  | $ | 68 |  |  | $ | 68 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 68 |
Commingled funds |  | 696 |  |  | — |  |  | — |  |  | — |  |  | 1,041 |  |  | 1,041 |
Debt securities |  | 903 |  |  | — |  |  | 898 |  |  | 10 |  |  | — |  |  | 908 |
Equity securities |  | 541 |  |  | 1,850 |  |  | 2 |  |  | — |  |  | — |  |  | 1,852 |
Total |  | $ | 2,208 |  |  | $ | 1,918 |  |  | $ | 900 |  |  | $ | 10 |  |  | $ | 1,041 |  |  | $ | 3,869 |
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $239 million of equity method investments and $165 million of rabbi trust assets and other miscellaneous investments.
|  | Dec. 31, 2024
|  |  |  | Fair Value
(Millions of Dollars) |  | Cost |  | Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total
Nuclear decommissioning fund (a)
Cash equivalents |  | $ | 39 |  |  | $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 39 |
Commingled funds |  | 703 |  |  | — |  |  | — |  |  | — |  |  | 1,025 |  |  | 1,025 |
Debt securities |  | 866 |  |  | — |  |  | 832 |  |  | 14 |  |  | — |  |  | 846 |
Equity securities |  | 522 |  |  | 1,583 |  |  | 1 |  |  | — |  |  | — |  |  | 1,584 |
Total |  | $ | 2,130 |  |  | $ | 1,622 |  |  | $ | 833 |  |  | $ | 14 |  |  | $ | 1,025 |  |  | $ | 3,494 |
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $246 million of equity method investments and $156 million of rabbi trust assets and other miscellaneous investments. For the three and nine months ended Sept. 30, 2025 and 2024, there were immaterial transfers of Level 3 investments between levels. Contractual maturity dates of debt securities in the nuclear decommissioning fund as of Sept. 30, 2025:
|  | 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 |  | $ | 9 |  |  | $ | 341 |  |  | $ | 271 |  |  | $ | 287 |  |  | $ | 908 |
Rabbi Trusts Xcel Energy has established rabbi trusts to provide partial funding for future deferred compensation plan distributions. The fair value of assets held in the rabbi trusts were $105 million and $96 million at Sept. 30, 2025 and Dec. 31, 2024, respectively, comprised of cash equivalents and mutual funds (level 1 valuation methods). Amounts are reported in nuclear decommissioning fund and other investments on the consolidated balance sheet. Derivative Activities and Fair Value Measurements Xcel Energy 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 — Xcel Energy 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, 2025, accumulated other comprehensive loss related to interest rate derivatives included $3 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, 2025, Xcel Energy had unsettled interest rate derivatives with a notional amount of $120 million and an immaterial fair value. See Note 11 for the financial impact of qualifying interest rate cash flow hedges on Xcel Energy’s accumulated other comprehensive loss included in the consolidated statements of common stockholder’s equity and in the consolidated statements of comprehensive income. Wholesale and Commodity Trading — Xcel Energy Inc.’s utility subsidiaries conduct 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. Xcel Energy 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 — Xcel Energy 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 FTRs. The most significant derivative positions outstanding at Sept. 30, 2025 and Dec. 31, 2024 for this purpose relate to FTR instruments administered by MISO and SPP. These instruments are intended to offset the impacts of transmission system congestion. When Xcel Energy 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, 2025, Xcel Energy had no commodity contracts designated as cash flow hedges. Gross notional amounts of commodity forwards, options and FTRs:
(Amounts in Millions) (a)(b) |  | Sept. 30, 2025 |  | Dec. 31, 2024
MWh of electricity |  | 50 |  |  | 38 |
MMBtu of natural gas |  | 56 |  |  | 77 |
(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 — Xcel Energy 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. Xcel Energy’s utility subsidiaries’ often have significant concentrations of credit risk with particular entities or industries in their wholesale, trading and non-trading commodity activities. As of Sept. 30, 2025, two of Xcel Energy’s ten most significant counterparties for these activities, comprising $21 million, or 12%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Seven of the ten most significant counterparties, comprising $85 million, or 51%, of this credit exposure, were not rated by these external ratings agencies, but based on Xcel Energy’s internal analysis, had credit quality consistent with investment grade. One of these significant counterparties, comprising $28 million, or 17%, of this credit exposure, had credit quality less than investment grade, based on internal analysis. Seven of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities. Credit Related Contingent Features — Contract provisions for derivative instruments that the utility subsidiaries enter, 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 the applicable utility subsidiary’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies. As of Sept. 30, 2025 and Dec. 31, 2024, there were $7 million and $11 million of derivative liabilities 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, 2025 and Dec. 31, 2024, there were approximately $62 million and $69 million of derivative liabilities 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 a given utility subsidiary’s ability to fulfill its contractual obligations is reasonably expected to be impaired. Xcel Energy had no collateral posted related to adequate assurance clauses in derivative contracts as of Sept. 30, 2025 and Dec. 31, 2024. Recurring Derivative Fair Value Measurements 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, 2025
Other derivative instruments: |  |  |  |  |
Electric commodity |  | $ | — |  |  | $ | 13 |  |
Natural gas commodity |  | $ | — |  |  | $ | (8) |  |
Total |  | $ | — |  |  | $ | 5 |  |
Nine Months Ended Sept. 30, 2025
Derivatives designated as cash flow hedges: |  |  |
Interest rate |  | $ | 1 |  |  | $ | — |  |
Total |  | $ | 1 |  |  | $ | — |  |
Other derivative instruments: |  |  |  |  |
Electric commodity |  | $ | — |  |  | $ | 27 |  |
Natural gas commodity |  | — |  |  | (1) |  |
Total |  | $ | — |  |  | $ | 26 |  |
Three Months Ended Sept. 30, 2024
Other derivative instruments: |  |  |  |  |
Natural gas commodity |  | $ | — |  |  | $ | (6) |  |
Total |  | $ | — |  |  | $ | (6) |  |
Nine Months Ended Sept. 30, 2024
Derivatives designated as cash flow hedges: |  |  |
Interest rate |  | $ | 29 |  |  | $ | — |  |
Total |  | $ | 29 |  |  | $ | — |  |
Other derivative instruments: |  |  |  |  |
Electric commodity |  | $ | — |  |  | $ | 41 |  |
Natural gas commodity |  | — |  |  | (3) |  |
Total |  | $ | — |  |  | $ | 38 |  |
|  | 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, 2025 |  |  |  |  |
Derivatives designated as cash flow hedges:
Interest rate |  | $ | 1 |  | (a) | $ | — |  |  | $ | — |  |
Total |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |
Other derivative instruments: |  |  |  |  |
Commodity trading |  | $ | — |  |  | $ | — |  |  | $ | 2 |  | (b)
Electric commodity |  | — |  |  | (1) |  | (c) | — |  |
Total |  | $ | — |  |  | $ | (1) |  |  | $ | 2 |  |
Nine Months Ended Sept. 30, 2025 |  |  |  |  |
Derivatives designated as cash flow hedges:
Interest rate |  | $ | 3 |  | (a) | $ | — |  |  | $ | — |  |
Total |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |
Other derivative instruments: |  |  |  |  |
Commodity trading |  | $ | — |  |  | $ | — |  |  | $ | (5) |  | (b)
Electric commodity |  | — |  |  | (22) |  | (c) | — |  |
Natural gas commodity |  | — |  |  | — |  |  | (13) |  | (d)(e)
Total |  | $ | — |  |  | $ | (22) |  |  | $ | (18) |  |
Three Months Ended Sept. 30, 2024 |  |  |  |  |
Derivatives designated as cash flow hedges:
Interest rate |  | $ | 1 |  | (a) | $ | — |  |  | $ | — |  |
Total |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |
Other derivative instruments: |  |  |  |  |
Commodity trading |  | $ | — |  |  | $ | — |  |  | $ | 3 |  | (b)
Electric commodity |  | — |  |  | (13) |  | (c) | — |  |
Total |  | $ | — |  |  | $ | (13) |  |  | $ | 3 |  |
Nine Months Ended Sept. 30, 2024 |  |  |  |  |
Derivatives designated as cash flow hedges:
Interest rate |  | $ | 3 |  | (a) | $ | — |  |  | $ | — |  |
Total |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |
Other derivative instruments:
Commodity trading |  | $ | — |  |  | $ | — |  |  | $ | (19) |  | (b)
Electric commodity |  | — |  |  | (16) |  | (c) | — |  |
Natural gas commodity |  | — |  |  | — |  |  | (14) |  | (d)(e)
Total |  | $ | — |  |  | $ | (16) |  |  | $ | (33) |  |
(a)Recorded to interest charges. (b)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers. (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. 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)Other than $2 million of 2025 and 2024 losses recorded to electric fuel and purchased power, amounts are recorded to cost of natural gas sold and transported. Amounts are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate. (e)Relates primarily to option premium amortization. Xcel Energy had no derivative instruments designated as fair value hedges during the nine months ended Sept. 30, 2025 and 2024. Fair Value of Long-Term Debt As of Sept. 30, 2025, other financial instruments for which the carrying amount did not equal fair value:
|  | Sept. 30, 2025 |  | Dec. 31, 2024
(Millions of Dollars) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term debt, including current portion |  | $ | 32,035 |  |  | $ | 29,744 |  |  | $ | 28,419 |  |  | $ | 25,115 |
Fair value of Xcel Energy’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, 2025 and Dec. 31, 2024, and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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