XCEL ENERGY INC [XEL] Filings

10-Q 1 xel-20240930.htm 10-Q xel-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended Sept. 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-3034


Xcel Energy Inc.
(Exact Name of Registrant as Specified in its Charter)

Minnesota

41-0448030

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

414 Nicollet Mall

Minneapolis

Minnesota

55401

(Address of Principal Executive Offices)

(Zip Code)


(612)			330-5500
(Registrant’s Telephone Number, Including Area Code)


N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $2.50 par value

XEL

Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Outstanding at Oct. 28, 2024
Common Stock, $2.50 par value						574,241,745 shares

TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION
Item 1 —	Financial Statements (unaudited)	5
	Consolidated Statements of Income	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Cash Flows	7
	Consolidated Balance Sheets	8
	Consolidated Statements of Common Stockholders’ Equity	9
	Notes to Consolidated Financial Statements	10
Item 2 —	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3 —	Quantitative and Qualitative Disclosures A bout Market Risk	36
Item 4 —	Controls and Procedures	36

PART II	OTHER INFORMATION
Item 1 —	Legal Proceedings	36
Item 1A —	Risk Factors	37
Item 2 —	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5 —	Other Information	37
Item 6 —	Exhibits	37

SIGNATURES		38

This Form 10-Q is filed by Xcel Energy Inc. Additional information is available in various filings with the SEC. This report should be read in its entirety.

Definitions of Abbreviations


Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)
e prime			e prime inc.
NSP-Minnesota			Northern States Power Company, a Minnesota corporation
NSP System			The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota
NSP-Wisconsin			Northern States Power Company, a Wisconsin corporation
PSCo			Public Service Company of Colorado
SPS			Southwestern Public Service Company
Utility subsidiaries			NSP-Minnesota, NSP-Wisconsin, PSCo and SPS
WYCO			WYCO Development, LLC
Xcel Energy			Xcel Energy Inc. and its subsidiaries


Federal and State Regulatory Agencies
CPUC			Colorado Public Utilities Commission

DOC			Minnesota Department of Commerce

EPA			United States Environmental Protection Agency
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission


MPUC			Minnesota Public Utilities Commission

NDPSC			North Dakota Public Service Commission
NMPRC			New Mexico Public Regulation Commission
NRC			Nuclear Regulatory Commission

PSCW			Public Service Commission of Wisconsin
PUCT			Public Utility Commission of Texas
SEC			Securities and Exchange Commission


Other
AFUDC			Allowance for funds used during construction

ALJ			Administrative Law Judge

ASU			Accounting standards update
ATM			At-the-market


C&I			Commercial and Industrial
CCR			Coal combustion residuals
CCR Rule			Final rule (40 CFR 257.50 - 257.107) published by EPA regulating the management, storage and disposal of CCRs as a nonhazardous waste
CDD			Cooling degree-days
CEO			Chief executive officer
CERCLA			Comprehensive Environmental Response, Compensation, and Liability Act
CFO			Chief financial officer


CO2			Carbon dioxide
CORE			CORE Electric Cooperative
CPCN			Certificate of Public Convenience and Necessity
CSPV			Crystalline Silicon Photovoltaic


DRIP			Dividend Reinvestment and Stock Purchase Program
EPS			Earnings per share
ETR			Effective tax rate

FCA			Fuel clause adjustment
FTR			Financial transmission right

GAAP			United States generally accepted accounting principles

GE			General Electric Company
HDD			Heating degree-days
IPP			Independent power producing entity
IRA			Inflation Reduction Act
IRP			Integrated Resource Plan


LLC			Limited liability company

MGP			Manufactured gas plant

MISO			Midcontinent Independent System Operator, Inc.
NAV			Net asset value

NOx			Nitrogen Oxides
O&M			Operating and maintenance


PFAS			Per- and Polyfluoroalkyl Substances
PIM			Performance incentive mechanism
PPA			Power purchase agreement
PSPS			Public safety power shutoff
PTC			Production tax credit
RFP			Request for proposal
ROE			Return on equity
RTO			Regional Transmission Organization
SMMPA			Southern Minnesota Municipal Power Agency
SPP			Southwest Power Pool, Inc.



THI			Temperature-humidity index


VaR			Value at Risk
VIE			Variable interest entity
WACC			Weighted average cost of capital
WMP			Wildfire mitigation plan


Measurements
GW			Gigawatts
MW			Megawatts


Forward-Looking Statements

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2024 and 2025 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of interest rate changes, increased credit exposure, and legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs and our subsidiaries’ ability to recover costs from customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in millions, except per share data)


	Three Months Ended Sept. 30				Nine Months Ended Sept. 30
	2024		2023		2024		2023
Operating revenues
Electric	$	3,393	$	3,387	$	8,737	$	8,751
Natural gas	239		245		1,535		1,926
Other	12		30		49		87
Total operating revenues	3,644		3,662		10,321		10,764

Operating expenses
Electric fuel and purchased power	1,060		1,181		2,863		3,328
Cost of natural gas sold and transported	63		70		664		1,084
Cost of sales — other	3		14		12		37
Operating and maintenance expenses	655		586		1,922		1,864
Conservation and demand side management expenses	112		76		295		215
Depreciation and amortization	681		618		2,042		1,807
Taxes (other than income taxes)	159		168		484		489
Loss on Comanche Unit 3 litigation	—		34		—		34
Total operating expenses	2,733		2,747		8,282		8,858

Operating income	911		915		2,039		1,906

Other income, net	39		3		75		19
Earnings from equity method investments	3		7		19		27
Allowance for funds used during construction — equity	44		26		119		63

Interest charges and financing costs
Interest charges — includes other financing costs	326		269		936		790
Allowance for funds used during construction — debt	(21)		(14)		(51)		(36)
Total interest charges and financing costs	305		255		885		754

Income before income taxes	692		696		1,367		1,261
Income tax expense (benefit)	10		40		(105)		(101)
Net income	$	682	$	656	$	1,472	$	1,362

Weighted average common shares outstanding:
Basic	564		552		559		551
Diluted	565		552		559		552

Earnings per average common share:
Basic	$	1.21	$	1.19	$	2.63	$	2.47
Diluted	1.21		1.19		2.63		2.47

See Notes to Consolidated Financial Statements

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XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(amounts in millions)


	Three Months Ended Sept. 30				Nine Months Ended Sept. 30
	2024		2023		2024		2023
Net income	$	682	$	656	$	1,472	$	1,362
Other comprehensive income
Pension and retiree medical benefits:

Reclassifications of losses to net income, net of tax	—		—		4		1
Derivative instruments:
Net fair value increase, net of tax	—		3		22		11
Reclassification of losses to net income, net of tax	1		1		2		3

Total other comprehensive income	1		4		28		15
Total comprehensive income	$	683	$	660	$	1,500	$	1,377

See Notes to Consolidated Financial Statements

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XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in millions)


	Nine Months Ended Sept. 30
	2024		2023
Operating activities
Net income	$	1,472	$	1,362
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,055		1,824
Nuclear fuel amortization	85		84
Deferred income taxes	406		(173)
Allowance for equity funds used during construction	(119)		(63)
Earnings from equity method investments	(19)		(27)
Dividends from equity method investments	26		26
Provision for bad debts	47		58
Share-based compensation expense	27		17
Changes in operating assets and liabilities:
Accounts receivable	81		95
Accrued unbilled revenues	62		375
Inventories	(71)		73
Other current assets	13		104
Accounts payable	(42)		(226)
Net regulatory assets and liabilities	282		771
Other current liabilities	(238)		183
Pension and other employee benefit obligations	(94)		(35)
Other, net	4		(95)
Net cash provided by operating activities	3,977		4,353

Investing activities
Capital/construction expenditures	(5,147)		(4,240)
Purchase of investment securities	(693)		(704)
Proceeds from the sale of investment securities	666		678
Other, net	(23)		(26)
Net cash used in investing activities	(5,197)		(4,292)

Financing activities
Repayments of short-term borrowings, net	(690)		(813)
Proceeds from issuances of long-term debt	3,643		2,631
Repayments of long-term debt	(550)		(651)
Proceeds from issuance of common stock	1,109		83
Dividends paid	(871)		(814)
Other, net	(5)		(14)
Net cash provided by financing activities	2,636		422

Net change in cash, cash equivalents and restricted cash	1,416		483
Cash, cash equivalents and restricted cash at beginning of period	129		111
Cash, cash equivalents and restricted cash at end of period	$	1,545	$	594

Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(793)	$	(652)
Cash received (paid) for income taxes, net; includes proceeds from tax credit transfers	484		(68)

Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	$	741	$	409
Inventory transfers to property, plant and equipment	217		42
Operating lease right-of-use assets	43		73
Allowance for equity funds used during construction	119		63
Issuance of common stock for reinvested dividends and/or equity awards	53		46


See Notes to Consolidated Financial Statements

Table of Contents

XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in millions, except share and per share data


	Sept. 30, 2024		Dec. 31, 2023
Assets
Current assets
Cash and cash equivalents	$	1,545	$	129
Accounts receivable, net	1,187		1,315
Accrued unbilled revenues	790		853
Inventories	638		711
Regulatory assets	562		611
Derivative instruments	179		104
Prepaid taxes	64		52
Prepayments and other	504		294
Total current assets	5,469		4,069

Property, plant and equipment, net	55,321		51,642

Other assets
Nuclear decommissioning fund and other investments	3,947		3,599
Regulatory assets	2,794		2,798
Derivative instruments	63		76
Operating lease right-of-use assets	1,096		1,217
Other	596		678
Total other assets	8,496		8,368
Total assets	$	69,286	$	64,079

Liabilities and Equity
Current liabilities
Current portion of long-term debt	$	1,104	$	552
Short-term debt	95		785
Accounts payable	1,713		1,668
Regulatory liabilities	835		528
Taxes accrued	488		557
Accrued interest	329		251
Dividends payable	312		289
Derivative instruments	38		74
Operating lease liabilities	226		226
Other	718		722
Total current liabilities	5,858		5,652

Deferred credits and other liabilities
Deferred income taxes	5,480		4,885
Deferred investment tax credits	41		60
Regulatory liabilities	6,056		5,827
Asset retirement obligations	3,431		3,218
Derivative instruments	68		86
Customer advances	154		167
Pension and employee benefit obligations	374		469
Operating lease liabilities	908		1,038
Other	93		148
Total deferred credits and other liabilities	16,605		15,898

Commitments and contingencies
Capitalization
Long-term debt	27,471		24,913
Common stock — 1,000,000,000 shares authorized of $2.50 par value; 574,101,713 and 554,941,703 shares outstanding at Sept. 30, 2024 and December 31, 2023, respectively	1,435		1,387
Additional paid in capital	9,577		8,465
Retained earnings	8,406		7,858
Accumulated other comprehensive loss	(66)		(94)
Total common stockholders’ equity	19,352		17,616
Total liabilities and equity	$	69,286	$	64,079

See Notes to Consolidated Financial Statements

Table of Contents

XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS’ EQUITY (UNAUDITED)

(amounts in millions, except per share data; shares in actual amounts)


	Common Stock Issued					Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholders' Equity
	Shares	Par Value		Additional Paid In Capital
Three Months Ended Sept. 30, 2024 and 2023
Balance at June 30, 2023	551,375,255	$	1,378	$	8,247	$	7,371	$	(82)	$	16,914
Net income						656				656
Other comprehensive income								4		4
Dividends declared on common stock ($0.52 per share)						(287)				(287)
Issuances of common stock	287,548	1		17						18

Share-based compensation				5		(1)				4
Balance at Sept. 30, 2023	551,662,803	$	1,379	$	8,269	$	7,739	$	(78)	$	17,309

Balance at June 30, 2024	557,337,051	$	1,393	$	8,589	$	8,039	$	(67)	$	17,954
Net income						682				682
Other comprehensive income								1		1
Dividends declared on common stock ($0.5475 per share)						(312)				(312)
Issuances of common stock	16,764,662	42		975						1,017

Share-based compensation				13		(3)				10
Balance at Sept. 30, 2024	574,101,713	$	1,435	$	9,577	$	8,406	$	(66)	$	19,352

	Common Stock Issued					Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholders' Equity
	Shares	Par Value		Additional Paid In Capital
Nine Months Ended Sept 30, 2024 and 2023
Balance at Dec. 31, 2022	549,578,018	$	1,374	$	8,155	$	7,239	$	(93)	$	16,675
Net income						1,362				1,362
Other comprehensive income								15		15
Dividends declared on common stock ($1.56 per share)						(859)				(859)
Issuances of common stock	2,084,785	5		108						113

Share-based compensation				6		(3)				3

Balance at Sept. 30, 2023	551,662,803	$	1,379	$	8,269	$	7,739	$	(78)	$	17,309

Balance at Dec. 31, 2023	554,941,703	$	1,387	$	8,465	$	7,858	$	(94)	$	17,616
Net income						1,472				1,472
Other comprehensive income								28		28
Dividends declared on common stock ($1.6425 per share)						(921)				(921)
Issuances of common stock	19,160,010	48		1,082						1,130

Share-based compensation				30		(3)				27
Balance at Sept. 30, 2024	574,101,713	$	1,435	$	9,577	$	8,406	$	(66)	$	19,352

See Notes to Consolidated Financial Statements

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XCEL ENERGY INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (UNAUDITED)

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 Xcel Energy as of Sept. 30, 2024 and Dec. 31, 2023; the results of Xcel Energy’s operations, including the components of net income, comprehensive income and changes in stockholders’ equity for the three and nine months ended Sept. 30, 2024 and 2023; and Xcel Energy’s cash flows for the nine months ended Sept. 30, 2024 and 2023.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2024, 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, 2023 balance sheet information has been derived from the audited 2023 consolidated financial statements included in the Xcel Energy Inc. Annual Report on Form 10-K for the year ended Dec. 31, 2023.

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 Xcel Energy Inc. Annual Report on Form 10-K for the year ended Dec. 31, 2023, filed with the SEC on Feb. 21, 2024.

Due to the seasonality of Xcel Energy’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.


1. Summary of Significant Accounting Policies

The significant accounting policies set forth in Note 1 to the consolidated financial statements in the Xcel Energy Inc. Annual Report on Form 10-K for the year ended Dec. 31, 2023 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.


2. Accounting Pronouncements

Recently Issued

Segment Reporting — In November 2023, the FASB issued ASU 2023-07 – Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures, which extends the existing requirements for annual disclosures to quarterly periods, and requires that both annual and quarterly disclosures present segment expenses using line items consistent with information regularly provided to the chief operating decision maker. The ASU is effective for annual periods beginning after Dec. 15, 2023 and quarterly periods beginning after Dec. 15, 2024, and Xcel Energy does not expect implementation of the new disclosure guidance to have a material impact to its consolidated financial statements.

Income Taxes — In December 2023, the FASB issued ASU 2023-09 – Income Taxes (Topic 740) – Improvements to Income Tax Disclosures, with new disclosure requirements including presentation of prescribed line items in the ETR reconciliation and disclosures regarding state and local tax payments. The ASU is effective for annual periods beginning after Dec. 15, 2024, and Xcel Energy does not expect implementation of the new disclosure guidance to have a material impact to its consolidated financial statements.

Climate-Related Disclosures — In March 2024, the SEC issued Final Rule 33-11275 – The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule requires registrants to provide standardized disclosures in Form 10-K related to climate-related risks, Scope 1 and 2 greenhouse gas emissions, as well as to include in a footnote to the consolidated financial statements the financial impact of severe weather events and other natural conditions. The rule requires implementation in phases between 2025 and 2033. In April 2024, the SEC announced that it would voluntarily stay its final climate disclosure rules pending judicial review. Xcel Energy does not expect implementation of the new guidance to have a material impact on the consolidated financial statements.


3. Selected Balance Sheet Data


(Millions of Dollars)	Sept. 30, 2024		Dec. 31, 2023
Accounts receivable, net
Accounts receivable	$	1,295	$	1,443
Less allowance for bad debts	(108)		(128)
Accounts receivable, net	$	1,187	$	1,315


(Millions of Dollars)	Sept. 30, 2024		Dec. 31, 2023
Inventories
Materials and supplies	$	399	$	377
Fuel	149		211
Natural gas	90		123
Total inventories	$	638	$	711


(Millions of Dollars)	Sept. 30, 2024		Dec. 31, 2023
Property, plant and equipment, net
Electric plant	$	54,908	$	52,494
Natural gas plant	9,599		9,080
Common and other property	3,370		3,190
Plant to be retired (a)	1,846		2,055
Construction work in progress	4,851		2,873
Total property, plant and equipment	74,574		69,692
Less accumulated depreciation	(19,632)		(18,399)
Nuclear fuel	3,452		3,337
Less accumulated amortization	(3,073)		(2,988)
Property, plant and equipment, net	$	55,321	$	51,642

(a)Amounts include Sherco 1 and 3 and A.S. King for NSP-Minnesota; 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 for PSCo; and Tolk Unit 1 and 2 and coal generation assets at Harrington pending facility gas conversion for SPS. Amounts are presented net of accumulated depreciation.

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4. Borrowings and Other Financing Instruments

Short-Term Borrowings

Short-Term Debt — Xcel Energy Inc. and its utility subsidiaries meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under their credit facilities and term loan agreements.

Commercial paper and term loan borrowings outstanding for Xcel Energy:


(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2024			Year Ended Dec. 31, 2023
Borrowing limit	$	3,550		$	3,550
Amount outstanding at period end	95			785
Average amount outstanding	644			491
Maximum amount outstanding	1,080			1,241
Weighted average interest rate, computed on a daily basis	5.50		%	5.12		%
Weighted average interest rate at period end	5.21			5.52

Letters of Credit — Xcel Energy Inc. and its utility subsidiaries use letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There was $43 million and $44 million of letters of credit outstanding under the credit facilities at Sept. 30, 2024 and Dec. 31, 2023, respectively. Amounts approximate their fair value and are subject to fees.

Revolving Credit Facilities — In order to issue commercial paper, Xcel Energy Inc. and its utility subsidiaries must have revolving credit facilities equal to or greater than the commercial paper borrowing limits and cannot issue commercial paper exceeding available credit facility capacity. The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

As of Sept. 30, 2024, Xcel Energy Inc. and its utility subsidiaries had the following committed revolving credit facilities available:


(Millions of Dollars)	Credit Facility (a)		Drawn (b)		Available
Xcel Energy Inc.	$	1,500	$	95	$	1,405
PSCo	700		31		669
NSP-Minnesota	700		12		688
SPS	500		—		500
NSP-Wisconsin	150		—		150
Total	$	3,550	$	138	$	3,412

(a)Expires in September 2027.

(b)Includes outstanding commercial paper and letters of credit.

Xcel Energy Inc., NSP-Minnesota, PSCo, and SPS each have the right to request an extension of the credit facility termination date for two additional one-year periods. NSP-Wisconsin has the right to request an extension of the credit facility termination date for an additional one-year period. All extension requests are subject to majority bank group approval.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity of the credit facility. Xcel Energy Inc. and its utility subsidiaries had no direct advances on the credit facilities outstanding as of Sept. 30, 2024 and Dec. 31, 2023.

Bilateral Credit Agreement

In April 2024, NSP-Minnesota’s uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit.

As of Sept. 30, 2024, NSP-Minnesota had $70 million of outstanding letters of credit under the $75 million bilateral credit agreement.

Long-Term Borrowings and Other Financing Instruments

During the nine months ended Sept. 30, 2024, Xcel Energy Inc. and its utility subsidiaries issued the following:

•Xcel Energy Inc. issued $800 million of 5.50% Senior Unsecured Notes due March 15, 2034.

•NSP-Minnesota issued $700 million of 5.40% First Mortgage Bonds due March 15, 2054.

•PSCo issued $450 million of 5.35% First Mortgage Bonds due May 15, 2034 and $750 million of 5.75% First Mortgage Bonds due May 15, 2054.

•NSP-Wisconsin issued $400 million of 5.65% First Mortgage Bonds due June 15, 2054.

•SPS issued $600 million of 6.00% First Mortgage Bonds due June 1, 2054.

ATM Equity Offering — In October 2023, Xcel Energy Inc. filed a prospectus supplement under which it may sell up to $2.5 billion of its common stock through an ATM program. In 2023, Xcel Energy Inc. issued 3.12 million shares of common stock ($188 million in net proceeds and $2 million in transaction fees paid). In the nine months ended Sept. 30, 2024, 18.27 million shares ($1.1 billion in net proceeds and $9 million in transaction fees paid) were issued under the ATM program. As of Sept. 30, 2024, approximately $1.2 billion remained available for sale under the ATM program.

Equity through DRIP and Benefits Program — Xcel Energy issued $50 million and $78 million of equity through the DRIP and benefits programs during the nine months ended Sept. 30, 2024 and 2023, respectively. The programs allow shareholders to reinvest their dividends directly in Xcel Energy Inc. common stock.


5. Revenues

Revenue is classified by the type of goods/services rendered and market/customer type. Xcel Energy’s operating revenues consisted of the following:


	Three Months Ended Sept. 30, 2024
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	1,153	$	126	$	—	$	1,279
C&I	1,634		68		6		1,708
Other	38		—		2		40
Total retail	2,825		194		8		3,027
Wholesale	191		—		—		191
Transmission	187		—		—		187
Other	1		32		—		33
Total revenue from contracts with customers	3,204		226		8		3,438
Alternative revenue and other	189		13		4		206
Total revenues	$	3,393	$	239	$	12	$	3,644

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	Three Months Ended Sept. 30, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	1,086	$	125	$	16	$	1,227
C&I	1,657		75		7		1,739
Other	42		—		3		45
Total retail	2,785		200		26		3,011
Wholesale	244		—		—		244
Transmission	178		—		—		178
Other	9		33		—		42
Total revenue from contracts with customers	3,216		233		26		3,475
Alternative revenue and other	171		12		4		187
Total revenues	$	3,387	$	245	$	30	$	3,662


	Nine Months Ended Sept. 30, 2024
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	2,813	$	885	$	10	$	3,708
C&I	4,245		439		21		4,705
Other	108		—		7		115
Total retail	7,166		1,324		38		8,528
Wholesale	501		—		—		501
Transmission	493		—		—		493
Other	37		133		—		170
Total revenue from contracts with customers	8,197		1,457		38		9,692
Alternative revenue and other	540		78		11		629
Total revenues	$	8,737	$	1,535	$	49	$	10,321


	Nine Months Ended Sept. 30, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	2,708	$	1,130	$	44	$	3,882
C&I	4,347		622		27		4,996
Other	115		—		5		120
Total retail	7,170		1,752		76		8,998
Wholesale	642		—		—		642
Transmission	498		—		—		498
Other	22		113		—		135
Total revenue from contracts with customers	8,332		1,865		76		10,273
Alternative revenue and other	419		61		11		491
Total revenues	$	8,751	$	1,926	$	87	$	10,764


6. Income Taxes

Reconciliation between the statutory rate and ETR:


	Three Months Ended Sept. 30				Nine Months Ended Sept. 30
	2024		2023		2024		2023
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State tax (net of federal tax effect)	4.7		5.0		4.8		4.9
(Decreases) increases:
Wind PTCs (a)	(16.0)		(13.8)		(26.2)		(27.3)
Plant regulatory differences (b)	(5.7)		(5.3)		(5.9)		(5.5)
Other tax credits, net operating loss & tax credit allowances	(1.5)		(1.1)		(1.1)		(1.2)
Other, net	(1.1)		(0.1)		(0.3)		0.1
Effective income tax rate	1.4	%	5.7	%	(7.7)	%	(8.0)	%

(a)Wind PTCs net of estimated transfer discounts are generally 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. Income tax benefits associated with the credit are offset by corresponding revenue reductions.


7. Earnings Per Share

Basic EPS was computed by dividing the earnings available to common shareholders by the average weighted number of common shares outstanding. Diluted EPS was computed by dividing the earnings available to common shareholders by the diluted weighted average number of common shares outstanding.

Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate diluted EPS is calculated using the treasury stock method.

Common Stock Equivalents — Xcel Energy Inc. has common stock equivalents related to time-based equity compensation awards.

Stock equivalent units granted to Xcel Energy Inc.’s Board of Directors are included in common shares outstanding upon grant date as there is no further service, performance or market condition associated with these awards. Restricted stock issued to employees is included in common shares outstanding when granted.

Share-based compensation arrangements for which there is currently no dilutive impact to EPS include the following:

•Equity awards subject to a performance condition; included in common shares outstanding when all necessary conditions have been satisfied by the end of the reporting period.

•Liability awards subject to a performance condition; any portions settled in shares are included in common shares outstanding upon settlement.

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Common shares outstanding used in the basic and diluted EPS computation:


	Three Months Ended Sept. 30		Nine Months Ended Sept. 30
(Shares in Millions)	2024	2023	2024	2023
Basic	564	552	559	551
Diluted (a)	565	552	559	552

(a)Diluted common shares outstanding included common stock equivalents of 0.4 million and 0.3 million for the three months ended Sept. 30, 2024 and 2023, respectively. Diluted common shares outstanding included common stock equivalents of 0.3 million and 0.2 million for the nine months ended Sept. 30, 2024 and 2023.


8. 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.