XCEL ENERGY INC [XEL] Filings

10-Q 1 xel-20240630.htm 10-Q xel-20240630

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 June 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 July 30, 2024
Common Stock, $2.50 par value						557,500,681 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	35
Item 4 —	Controls and Procedures	35

PART II	OTHER INFORMATION
Item 1 —	Legal Proceedings	35
Item 1A —	Risk Factors	35
Item 2 —	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 5 —	Other Information	36
Item 6 —	Exhibits	36

SIGNATURES		37

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
D.C. Circuit			United States Court of Appeals for the District of Columbia Circuit
DOC			Minnesota Department of Commerce
DOE			United States Department of Energy
EPA			United States Environmental Protection Agency
FERC			Federal Energy Regulatory Commission


MPUC			Minnesota Public Utilities Commission
MPSC			Michigan Public Service Commission
NDPSC			North Dakota Public Service Commission
NMPRC			New Mexico Public Regulation Commission
NRC			Nuclear Regulatory Commission
OAG			Minnesota Office of Attorney General
PSCW			Public Service Commission of Wisconsin
PUCT			Public Utility Commission of Texas
SEC			Securities and Exchange Commission
SDPUC			South Dakota Public Utilities Commission


Other
AFUDC			Allowance for funds used during construction

ALJ			Administrative Law Judge

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

DCRF			Distribution Cost Recovery Factor
DRIP			Dividend Reinvestment and Stock Purchase Program
EPS			Earnings per share
ETR			Effective tax rate

FTR			Financial transmission right

GAAP			United States generally accepted accounting principles
GCA			Gas cost adjustment
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
MPH			Miles per hour
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.
Staff			CPUC Staff

TEP			Transportation electrification plan

THI			Temperature-humidity index

UCA			Colorado Office of the Utility Consumer Advocate
VaR			Value at Risk
WACC			Weighted average cost of capital


Measurements
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 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 June 30				Six Months Ended June 30
	2024		2023		2024		2023
Operating revenues
Electric	$	2,659	$	2,601	$	5,344	$	5,364
Natural gas	355		393		1,296		1,681
Other	14		28		37		57
Total operating revenues	3,028		3,022		6,677		7,102

Operating expenses
Electric fuel and purchased power	855		1,030		1,803		2,147
Cost of natural gas sold and transported	118		170		601		1,014
Cost of sales — other	1		11		9		23
Operating and maintenance expenses	662		628		1,267		1,278
Conservation and demand side management expenses	86		63		183		139
Depreciation and amortization	703		565		1,361		1,189
Taxes (other than income taxes)	154		137		325		321

Total operating expenses	2,579		2,604		5,549		6,111

Operating income	449		418		1,128		991

Other income, net	22		11		36		16
Earnings from equity method investments	8		9		16		20
Allowance for funds used during construction — equity	38		18		75		37

Interest charges and financing costs
Interest charges — includes other financing costs	319		268		610		521
Allowance for funds used during construction — debt	(16)		(12)		(30)		(22)
Total interest charges and financing costs	303		256		580		499

Income before income taxes	214		200		675		565
Income tax benefit	(88)		(88)		(115)		(141)
Net income	$	302	$	288	$	790	$	706

Weighted average common shares outstanding:
Basic	557		551		556		551
Diluted	557		552		556		551

Earnings per average common share:
Basic	$	0.54	$	0.52	$	1.42	$	1.28
Diluted	0.54		0.52		1.42		1.28

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 June 30				Six Months Ended June 30
	2024		2023		2024		2023
Net income	$	302	$	288	$	790	$	706
Other comprehensive income
Pension and retiree medical benefits:

Reclassifications of losses to net income, net of tax	4		1		4		1
Derivative instruments:
Net fair value increase, net of tax	—		13		22		8
Reclassification of losses to net income, net of tax	—		1		1		2

Total other comprehensive income	4		15		27		11
Total comprehensive income	$	306	$	303	$	817	$	717

See Notes to Consolidated Financial Statements

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XCEL ENERGY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in millions)


	Six Months Ended June 30
	2024		2023
Operating activities
Net income	$	790	$	706
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,370		1,202
Nuclear fuel amortization	53		53
Deferred income taxes	285		(192)
Allowance for equity funds used during construction	(75)		(37)
Earnings from equity method investments	(16)		(20)
Dividends from equity method investments	18		18
Provision for bad debts	28		36
Share-based compensation expense	17		12
Changes in operating assets and liabilities:
Accounts receivable	148		225
Accrued unbilled revenues	6		364
Inventories	(2)		100
Other current assets	(53)		39
Accounts payable	4		(443)
Net regulatory assets and liabilities	150		569
Other current liabilities	(439)		(74)
Pension and other employee benefit obligations	(98)		(37)
Other, net	54		(66)
Net cash provided by operating activities	2,240		2,455

Investing activities
Capital/construction expenditures	(3,368)		(2,599)
Purchase of investment securities	(469)		(416)
Proceeds from the sale of investment securities	450		399
Other, net	(16)		(23)
Net cash used in investing activities	(3,403)		(2,639)

Financing activities
Proceeds from (repayments of) short-term borrowings, net	17		(269)
Proceeds from issuances of long-term debt	3,644		1,741
Repayments of long-term debt	(550)		(650)
Proceeds from issuance of common stock	101		75
Dividends paid	(575)		(536)
Other, net	(5)		(13)
Net cash provided by financing activities	2,632		348

Net change in cash, cash equivalents and restricted cash	1,469		164
Cash, cash equivalents and restricted cash at beginning of period	129		111
Cash, cash equivalents and restricted cash at end of period	$	1,598	$	275

Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(517)	$	(461)
Cash received (paid) for income taxes, net; includes proceeds from tax credit transfers	351		(49)

Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	$	520	$	497
Inventory transfers to property, plant and equipment	164		78
Operating lease right-of-use assets	40		50
Allowance for equity funds used during construction	75		37
Issuance of common stock for reinvested dividends and/or equity awards	35		32


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


	June 30, 2024		Dec. 31, 2023
Assets
Current assets
Cash and cash equivalents	$	1,598	$	129
Accounts receivable, net	1,138		1,315
Accrued unbilled revenues	847		853
Inventories	622		711
Regulatory assets	630		611
Derivative instruments	234		104
Prepaid taxes	89		52
Prepayments and other	541		294
Total current assets	5,699		4,069

Property, plant and equipment, net	53,890		51,642

Other assets
Nuclear decommissioning fund and other investments	3,791		3,599
Regulatory assets	2,751		2,798
Derivative instruments	84		76
Operating lease right-of-use assets	1,145		1,217
Other	567		678
Total other assets	8,338		8,368
Total assets	$	67,927	$	64,079

Liabilities and Equity
Current liabilities
Current portion of long-term debt	$	854	$	552
Short-term debt	802		785
Accounts payable	1,546		1,668
Regulatory liabilities	781		528
Taxes accrued	360		557
Accrued interest	299		251
Dividends payable	305		289
Derivative instruments	44		74
Operating lease liabilities	226		226
Other	683		722
Total current liabilities	5,900		5,652

Deferred credits and other liabilities
Deferred income taxes	5,280		4,885
Deferred investment tax credits	56		60
Regulatory liabilities	5,959		5,827
Asset retirement obligations	3,390		3,218
Derivative instruments	91		86
Customer advances	154		167
Pension and employee benefit obligations	371		469
Operating lease liabilities	961		1,038
Other	95		148
Total deferred credits and other liabilities	16,357		15,898

Commitments and contingencies
Capitalization
Long-term debt	27,716		24,913
Common stock — 1,000,000,000 shares authorized of $2.50 par value; 557,337,051 and 554,941,703 shares outstanding at June 30, 2024 and December 31, 2023, respectively	1,393		1,387
Additional paid in capital	8,589		8,465
Retained earnings	8,039		7,858
Accumulated other comprehensive loss	(67)		(94)
Total common stockholders’ equity	17,954		17,616
Total liabilities and equity	$	67,927	$	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 June 30, 2024 and 2023
Balance at March 31, 2023	550,222,192	$	1,376	$	8,169	$	7,370	$	(97)	$	16,818
Net income						288				288
Other comprehensive loss								15		15
Dividends declared on common stock ($0.52 per share)						(286)				(286)
Issuances of common stock	1,153,063	2		75						77

Share-based compensation				3		(1)				2
Balance at June 30, 2023	551,375,255	$	1,378	$	8,247	$	7,371	$	(82)	$	16,914

Balance at March 31, 2024	555,470,302	$	1,389	$	8,481	$	8,042	$	(71)	$	17,841
Net income						302				302
Other comprehensive income								4		4
Dividends declared on common stock ($0.5475 per share)						(305)				(305)
Issuances of common stock	1,866,749	4		97						101

Share-based compensation				11						11
Balance at June 30, 2024	557,337,051	$	1,393	$	8,589	$	8,039	$	(67)	$	17,954

	Common Stock Issued					Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholders' Equity
	Shares	Par Value		Additional Paid In Capital
Six Months Ended June 30, 2024 and 2023
Balance at Dec. 31, 2022	549,578,018	$	1,374	$	8,155	$	7,239	$	(93)	$	16,675
Net income						706				706
Other comprehensive income								11		11
Dividends declared on common stock ($1.04 per share)						(572)				(572)
Issuances of common stock	1,797,237	4		91						95

Share-based compensation				1		(2)				(1)

Balance at June 30, 2023	551,375,255	$	1,378	$	8,247	$	7,371	$	(82)	$	16,914

Balance at Dec. 31, 2023	554,941,703	$	1,387	$	8,465	$	7,858	$	(94)	$	17,616
Net income						790				790
Other comprehensive income								27		27
Dividends declared on common stock ($1.095 per share)						(609)				(609)
Issuances of common stock	2,395,348	6		107						113

Share-based compensation				17						17
Balance at June 30, 2024	557,337,051	$	1,393	$	8,589	$	8,039	$	(67)	$	17,954

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 June 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 six months ended June 30, 2024 and 2023; and Xcel Energy’s cash flows for the six months ended June 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 June 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 effective tax rate 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)	June 30, 2024		Dec. 31, 2023
Accounts receivable, net
Accounts receivable	$	1,244	$	1,443
Less allowance for bad debts	(106)		(128)
Accounts receivable, net	$	1,138	$	1,315


(Millions of Dollars)	June 30, 2024		Dec. 31, 2023
Inventories
Materials and supplies	$	394	$	377
Fuel	181		211
Natural gas	47		123
Total inventories	$	622	$	711


(Millions of Dollars)	June 30, 2024		Dec. 31, 2023
Property, plant and equipment, net
Electric plant	$	53,883	$	52,494
Natural gas plant	9,363		9,080
Common and other property	3,296		3,190
Plant to be retired (a)	1,890		2,055
Construction work in progress	4,355		2,873
Total property, plant and equipment	72,787		69,692
Less accumulated depreciation	(19,300)		(18,399)
Nuclear fuel	3,444		3,337
Less accumulated amortization	(3,041)		(2,988)
Property, plant and equipment, net	$	53,890	$	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.

Table of Contents


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 June 30, 2024			Year Ended Dec. 31, 2023
Borrowing limit	$	3,550		$	3,550
Amount outstanding at period end	802			785
Average amount outstanding	449			491
Maximum amount outstanding	802			1,241
Weighted average interest rate, computed on a daily basis	5.54		%	5.12		%
Weighted average interest rate at period end	5.54			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 June 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 June 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	$	802	$	698
PSCo	700		31		669
NSP-Minnesota	700		12		688
SPS	500		—		500
NSP-Wisconsin	150		—		150
Total	$	3,550	$	845	$	2,705

(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 June 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 June 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 six months ended June 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 six months ended June 30, 2024, 1.68 million shares ($93 million in net proceeds and $1 million in transaction fees paid) were issued under the ATM program. As of June 30, 2024, approximately $2.2 billion remained available for sale under the ATM program.

Equity through DRIP and Benefits Program — Xcel Energy issued $40 million and $61 million of equity through the DRIP and benefits programs during the six months ended June 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 June 30, 2024
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	801	$	191	$	—	$	992
C&I	1,335		97		6		1,438
Other	36		—		3		39
Total retail	2,172		288		9		2,469
Wholesale	137		—		—		137
Transmission	148		—		—		148
Other	17		42		—		59
Total revenue from contracts with customers	2,474		330		9		2,813
Alternative revenue and other	185		25		5		215
Total revenues	$	2,659	$	355	$	14	$	3,028

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	Three Months Ended June 30, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	748	$	216	$	15	$	979
C&I	1,337		124		8		1,469
Other	37		—		1		38
Total retail	2,122		340		24		2,486
Wholesale	174		—		—		174
Transmission	157		—		—		157
Other	4		32		—		36
Total revenue from contracts with customers	2,457		372		24		2,853
Alternative revenue and other	144		21		4		169
Total revenues	$	2,601	$	393	$	28	$	3,022


	Six Months Ended June 30, 2024
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	1,660	$	759	$	10	$	2,429
C&I	2,611		371		15		2,997
Other	70		—		5		75
Total retail	4,341		1,130		30		5,501
Wholesale	310		—		—		310
Transmission	306		—		—		306
Other	36		101		—		137
Total revenue from contracts with customers	4,993		1,231		30		6,254
Alternative revenue and other	351		65		7		423
Total revenues	$	5,344	$	1,296	$	37	$	6,677


	Six Months Ended June 30, 2023
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	1,622	$	1,005	$	28	$	2,655
C&I	2,690		547		20		3,257
Other	73		—		2		75
Total retail	4,385		1,552		50		5,987
Wholesale	398		—		—		398
Transmission	320		—		—		320
Other	13		80		—		93
Total revenue from contracts with customers	5,116		1,632		50		6,798
Alternative revenue and other	248		49		7		304
Total revenues	$	5,364	$	1,681	$	57	$	7,102


6. Income Taxes

Reconciliation between the statutory rate and ETR:


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State tax (net of federal tax effect)	5.1		5.1		4.9		4.9
(Decreases) increases:
Wind PTCs (a)	(60.3)		(64.0)		(36.8)		(44.1)
Plant regulatory differences (b)	(7.0)		(6.3)		(6.0)		(5.8)
Other tax credits, net operating loss & tax credit allowances	(1.3)		(1.4)		(0.8)		(1.5)
Other, net	1.4		1.6		0.7		0.5
Effective income tax rate	(41.1)	%	(44.0)	%	(17.0)	%	(25.0)	%

(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 June 30		Six Months Ended June 30
(Shares in Millions)	2024	2023	2024	2023
Basic	557	551	556	551
Diluted (a)	557	552	556	551

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

Specific valuation methods include:

Investments in equity securities and other funds