Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | PUBLIC SERVICE CO OF COLORADO | |
Entity Central Index Key | 0000081018 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-03280 | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0296600 | |
Entity Address, Address Line One | 1800 Larimer Street, Suite 1100 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | (303) | |
Local Phone Number | 571-7511 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues | ||||
Electric | $ 884 | $ 827 | $ 1,712 | $ 1,560 |
Natural gas | 274 | 338 | 852 | 753 |
Other | 11 | 9 | 28 | 22 |
Total operating revenues | 1,169 | 1,174 | 2,592 | 2,335 |
Operating expenses | ||||
Electric fuel and purchased power | 332 | 328 | 676 | 599 |
Cost of natural gas sold and transported | 122 | 168 | 451 | 338 |
Cost of sales — other | 4 | 3 | 9 | 6 |
O&M expenses | 214 | 205 | 430 | 412 |
Demand side management expenses | 31 | 32 | 65 | 64 |
Depreciation and amortization | 215 | 185 | 408 | 368 |
Taxes (other than income taxes) | 70 | 64 | 135 | 130 |
Total operating expenses | 988 | 985 | 2,174 | 1,917 |
Operating income | 181 | 189 | 418 | 418 |
Other income, net | 0 | 1 | 0 | 3 |
Allowance for funds used during construction — equity | 8 | 7 | 14 | 12 |
Interest charges and financing costs | ||||
Interest charges — includes other financing costs of $2, $2, $4 and $4, respectively | 69 | 62 | 129 | 121 |
Allowance for funds used during construction — debt | (3) | (2) | (5) | (3) |
Total interest charges and financing costs | 66 | 60 | 124 | 118 |
Income before income taxes | 123 | 137 | 308 | 315 |
Income tax (benefit) expense | (9) | 3 | 0 | 14 |
Net income | $ 132 | $ 134 | $ 308 | $ 301 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Financial Position [Abstract] | ||||
Other financing costs | $ 2 | $ 2 | $ 4 | $ 4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Comprehensive income: | ||||
Net income | $ 132 | $ 134 | $ 308 | $ 301 |
Derivative instruments: | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | 0 | 1 |
Total other comprehensive income | 0 | 0 | 0 | 1 |
Total comprehensive income | $ 132 | $ 134 | $ 308 | $ 302 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||
Net income | $ 308 | $ 301 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 410 | 357 |
Deferred income taxes | (1) | 9 |
Amortization of investment tax credits | (1) | (1) |
Allowance for equity funds used during construction | (14) | (12) |
Provision for bad debts | 15 | 10 |
Net realized and unrealized hedging and derivative transactions | (11) | (31) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10) | 5 |
Accrued unbilled revenues | 66 | 53 |
Inventories | 3 | 8 |
Other current assets | (10) | 13 |
Accounts payable | 75 | (10) |
Net regulatory assets and liabilities | (24) | (554) |
Other current liabilities | (105) | (187) |
Pension and other employee benefit obligations | (14) | (50) |
Other, net | (46) | 91 |
Net cash provided by operating activities | 641 | 2 |
Investing activities | ||
Utility capital/construction expenditures | (873) | (705) |
Investments in utility money pool arrangement | (45) | (240) |
Repayments from utility money pool arrangement | 45 | 240 |
Net cash used in investing activities | (873) | (705) |
Financing activities | ||
Repayments of short-term borrowings, net | (147) | (136) |
Borrowings under utility money pool arrangement | 411 | 443 |
Repayments under utility money pool arrangement | (386) | (500) |
Proceeds from issuance of long-term debt | (686) | (738) |
Repayments of long-term debt | (300) | 0 |
Capital contributions from parent | 183 | 447 |
Dividends paid to parent | (233) | (221) |
Net cash provided by financing activities | 214 | 771 |
Net change in cash, cash equivalents and restricted cash | (18) | 68 |
Cash, cash equivalents and restricted cash at beginning of period | 25 | 28 |
Cash, cash equivalents and restricted cash at end of period | 7 | 96 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (117) | (116) |
Cash paid for income taxes, net | (50) | (15) |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Accrued property, plant and equipment additions | 175 | 126 |
Inventory transfers to property, plant and equipment | 12 | 10 |
Operating lease right-of-use assets | 15 | 1 |
Allowance for equity funds used during construction | $ 14 | $ 12 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash, cash equivalents and restricted cash at beginning of period | $ 7 | $ 25 |
Accounts receivable, net | 370 | 374 |
Accounts receivable from affiliates | 26 | 13 |
Accrued unbilled revenues | 284 | 350 |
Inventories | 229 | 245 |
Regulatory assets | 339 | 353 |
Derivative instruments | 42 | 39 |
Prepayments and other | 121 | 104 |
Total current assets | 1,418 | 1,503 |
Property, plant and equipment, net | 19,011 | 18,444 |
Other assets | ||
Regulatory assets | 1,375 | 1,293 |
Derivative instruments | 26 | 27 |
Operating lease right-of-use assets | 377 | 409 |
Other | 268 | 246 |
Total other assets | 2,046 | 1,975 |
Total assets | 22,475 | 21,922 |
Current liabilities | ||
Current portion of long-term debt | 250 | 300 |
Borrowings under utility money pool arrangement | 25 | 0 |
Short-term debt | 0 | 147 |
Accounts payable | 618 | 531 |
Accounts payable to affiliates | 86 | 69 |
Regulatory liabilities | 78 | 95 |
Taxes accrued | 128 | 252 |
Accrued interest | 60 | 58 |
Dividends payable to parent | 132 | 104 |
Derivative instruments | 39 | 30 |
Operating lease liabilities | 79 | 84 |
Other | 123 | 109 |
Total current liabilities | 1,618 | 1,779 |
Deferred credits and other liabilities | ||
Deferred income taxes | 1,982 | 1,960 |
Regulatory liabilities | 2,447 | 2,397 |
Asset retirement obligations | 455 | 422 |
Derivative instruments | 13 | 29 |
Customer advances | 152 | 160 |
Pension and employee benefit obligations | 4 | 23 |
Operating lease liabilities | 322 | 351 |
Other | 188 | 190 |
Total deferred credits and other liabilities | 5,563 | 5,532 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | $ 6,606 | $ 6,167 |
Common Stock, Shares Authorized | 100 | 100 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding | 100 | 100 |
Common stock — 100 shares authorized of $0.01 par value; 100 shares outstanding at June 30, 2022 and Dec. 31, 2021, respectively | $ 0 | $ 0 |
Additional paid in capital | 6,623 | 6,426 |
Retained earnings | 2,087 | 2,040 |
Accumulated other comprehensive loss | (22) | (22) |
Total common stockholder's equity | 8,688 | 8,444 |
Total liabilities and equity | $ 22,475 | $ 21,922 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2020 | 100 | ||||
Beginning Balance at Dec. 31, 2020 | $ 7,592 | $ 0 | $ 5,770 | $ 1,846 | $ (24) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 301 | ||||
Total other comprehensive income | 1 | 1 | |||
Dividends declared to parent | (235) | (235) | |||
Contribution of capital by parent | 440 | 440 | |||
Balance (in shares) at Jun. 30, 2021 | 100 | ||||
Ending Balance at Jun. 30, 2021 | 8,099 | $ 0 | 6,210 | 1,912 | (23) |
Balance (in shares) at Mar. 31, 2021 | 100 | ||||
Beginning Balance at Mar. 31, 2021 | 7,945 | $ 0 | 6,070 | 1,898 | (23) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 134 | 134 | |||
Total other comprehensive income | 0 | ||||
Dividends declared to parent | (120) | (120) | |||
Contribution of capital by parent | 140 | 140 | |||
Balance (in shares) at Jun. 30, 2021 | 100 | ||||
Ending Balance at Jun. 30, 2021 | $ 8,099 | $ 0 | 6,210 | 1,912 | (23) |
Balance (in shares) at Dec. 31, 2021 | 100 | 100 | |||
Beginning Balance at Dec. 31, 2021 | $ 8,444 | $ 0 | 6,426 | 2,040 | (22) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 308 | ||||
Total other comprehensive income | 0 | 0 | |||
Dividends declared to parent | (261) | (261) | |||
Contribution of capital by parent | $ 197 | 197 | |||
Balance (in shares) at Jun. 30, 2022 | 100 | 100 | |||
Ending Balance at Jun. 30, 2022 | $ 8,688 | $ 0 | 6,623 | 2,087 | (22) |
Beginning Balance at Mar. 31, 2022 | 8,571 | 6,506 | 2,087 | ||
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 132 | 132 | |||
Total other comprehensive income | 0 | ||||
Dividends declared to parent | (132) | (132) | |||
Contribution of capital by parent | $ 117 | 117 | |||
Balance (in shares) at Jun. 30, 2022 | 100 | 100 | |||
Ending Balance at Jun. 30, 2022 | $ 8,688 | $ 0 | $ 6,623 | $ 2,087 | $ (22) |
Management's Opinion
Management's Opinion | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Opinion | 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 PSCo and its subsidiaries as of June 30, 2022 and Dec. 31, 2021; the results of PSCo’s operations, including the components of net income, comprehensive income and changes in stockholder’s equity for the three and six months ended June 30, 2022 and 2021; and PSCo’s cash flows for the six months ended June 30, 2022 and 2021. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2022, 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, 2021 balance sheet information has been derived from the audited 2021 consolidated financial statements included in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2021. 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 PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2021, filed with the SEC on Feb. 23, 2022. Due to the seasonality of PSCo’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The significant accounting policies set forth in Note 1 to the consolidated financial statements in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2021 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | As of June 30, 2022, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on PSCO’s consolidated financial statements. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 6 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | (Millions of Dollars) June 30, 2022 Dec. 31, 2021 Accounts receivable, net Accounts receivable $ 416 $ 414 Less allowance for bad debts (46) (40) Accounts receivable, net $ 370 $ 374 (Millions of Dollars) June 30, 2022 Dec. 31, 2021 Inventories Materials and supplies $ 75 $ 70 Fuel 74 71 Natural gas 80 104 Total inventories $ 229 $ 245 (Millions of Dollars) June 30, 2022 Dec. 31, 2021 Property, plant and equipment, net Electric plant $ 15,271 $ 16,543 Natural gas plant 5,655 5,471 Common and other property 1,301 1,224 Plant to be retired (a) 1,353 182 Construction work in progress 861 681 Total property, plant and equipment 24,441 24,101 Less accumulated depreciation (5,430) (5,657) Property, plant and equipment, net $ 19,011 $ 18,444 (a) Amounts as of Dec. 31, 2021 include Comanche Unit 1 and 2 and Craig Units 1 and 2. Following the June 2022 approval of PSCo’s revised resource plan settlement, amounts as of June 30, 2022 include the addition of Comanche Unit 3, Hayden Units 1 and 2 and coal generation assets at Pawnee pending facility gas conversion. Amounts are reported net of accumulated depreciation. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Short-Term Borrowings PSCo meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool. Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc. Money pool borrowings for PSCo: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2022 Year Ended Dec. 31, 2021 Borrowing limit $ 250 $ 250 Amount outstanding at period end 25 — Average amount outstanding 39 12 Maximum amount outstanding 250 243 Weighted average interest rate, computed on a daily basis 0.55 % 0.07 % Weighted average interest rate at period end 1.40 N/A Commercial Paper — Commercial paper outstanding for PSCo: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2022 Year Ended Dec. 31, 2021 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 147 Average amount outstanding 18 26 Maximum amount outstanding 136 322 Weighted average interest rate, computed on a daily basis 0.70 % 0.19 % Weighted average interest rate at period end N/A 0.22 Letters of Credit — PSCo uses letters of credit, generally with terms of one year, to provide financial guarantee s for certain obligations. At June 30, 2022 and Dec. 31, 2021, there were $26 million and $8 million of letters of credit outstanding under the credit facility, respectively. Amounts approximate their f air value and are subject to fees. Revolving Credit Facility — In order to issue its commercial paper, PSCo must have a revolving credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. PSCo has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval. At June 30, 2022, PSCo had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 26 $ 674 (a) Expires in June 2024. (b) Includes outstanding commercial paper and letters of credit. All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. PSCo had no direct advances on the credit facility outstanding at June 30, 2022 and Dec. 31, 2021. Long-Term Borrowings During the three months ended June 30, 2022, PSCo issued $300 million of 4.10% first mortgage bonds due June 1, 2032 and $400 million of 4.50% first mortgage bonds due June 1, 2052. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenue is classified by the type of goods/services rendered and market/customer type. PSCo’s operating revenues consisted of the following: Three Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 292 $ 164 $ 4 $ 460 C&I 444 73 7 524 Other 13 — — 13 Total retail 749 237 11 997 Wholesale 71 — — 71 Transmission 21 — — 21 Other 12 33 — 45 Total revenue from contracts with customers 853 270 11 1,134 Alternative revenue and other 31 4 — 35 Total revenues $ 884 $ 274 $ 11 $ 1,169 Three Months Ended June 30, 2021 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 272 $ 204 $ 3 $ 479 C&I 426 81 6 513 Other 13 — — 13 Total retail 711 285 9 1,005 Wholesale 48 — — 48 Transmission 19 — — 19 Other 14 38 — 52 Total revenue from contracts with customers 792 323 9 1,124 Alternative revenue and other 35 15 — 50 Total revenues $ 827 $ 338 $ 9 $ 1,174 Six Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 594 $ 550 $ 7 $ 1,151 C&I 827 215 9 1,051 Other 25 — — 25 Total retail 1,446 765 16 2,227 Wholesale 137 — — 137 Transmission 40 — — 40 Other 24 76 — 100 Total revenue from contracts with customers 1,647 841 16 2,504 Alternative revenue and other 65 11 12 88 Total revenues $ 1,712 $ 852 $ 28 $ 2,592 Six Months Ended June 30, 2021 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 518 $ 443 $ 6 $ 967 C&I 752 165 15 932 Other 25 — — 25 Total retail 1,295 608 21 1,924 Wholesale 135 — — 135 Transmission 37 — — 37 Other 23 83 — 106 Total revenue from contracts with customers 1,490 691 21 2,202 Alternative revenue and other 70 62 1 133 Total revenues $ 1,560 $ 753 $ 22 $ 2,335 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Reconciliation between the statutory rate and ETR: Six Months Ended June 30 2022 2021 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 3.6 3.6 Increases (decreases) in tax from: Wind PTCs (a) (19.6) (15.1) Plant regulatory differences (b) (3.9) (4.5) Other tax credits, net operating loss & tax credit allowances (1.2) (0.8) Other (net) 0.1 0.2 Effective income tax rate — % 4.4 % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value Measurements Accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. • 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 highly liquid and actively traded instruments with quoted prices. • Level 2 — Pricing inputs are other than quoted 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 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include: Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset value. Interest rate derivatives — The 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 contractual settlements relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification. Derivative Instruments Fair Value Measurements PSCo 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, utility commodity prices and vehicle fuel prices. Interest Rate Derivatives — PSCo enters into various instruments that effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes, with changes in fair value prior to settlement recorded as other comprehensive income. At June 30, 2022, accumulated other comprehensive loss related to interest rate derivatives included $1 million of net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of June 30, 2022, PSCo had no unsettled interest rate derivatives. Wholesale and Commodity Trading Risk — PSCo conducts 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. PSCo 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. Sharing of any margins is determined through state regulatory proceedings as well as the operation of the FERC approved joint operating agreement. Commodity Derivatives — PSCo enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale and vehicle fuel. PSCo enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers but may not be designated as qualifying hedging transactions. The classification of gains or losses for these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms. As of June 30, 2022, PSCo had no commodity contracts designated as cash flow hedges. PSCo enters into commodity derivative instruments for trading purposes not directly related to commodity price risks associated with serving its electric and natural gas customers. Changes in the fair value of these commodity derivatives are recorded in electric operating revenues, net of amounts credited to customers under margin-sharing mechanisms. Gross notional amounts of commodity forwards and options: (Amounts in Millions) (a)(b) June 30, 2022 Dec. 31, 2021 Megawatt hours of electricity 12 15 Million British thermal units of natural gas 53 71 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. Consideration of Credit Risk and Concentrations — PSCo continuously monitors the creditworthiness of the 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. The impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the consolidated balance sheets. PSCo’s most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities. At June 30, 2022, five of PSCo’s ten most significant counterparties for these activities, comprising $51 million, or 43%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Three of the ten most significant counterparties, comprising $19 million, or 16%, of this credit exposure, was not rated by these external ratings agencies, but based on PSCo’s internal analysis, had credit quality consistent with investment grade. Two of these significant counterparties, comprising $28 million, or 24%, of this credit exposure, had credit quality less than investment grade, based on internal analysis. Seven of these significant counterparties are independent system operators, municipal or cooperative electric entities, Regional Transmission Organizations or other utilities. Impact of Derivative Activity — As of June 30, 2022 and 2021, changes in the fair value of interest rate derivatives resulted in no gains that were recognized in accumulated other comprehensive loss. Changes in the fair value of natural gas commodity derivatives resulted in no net gains for the three months ended June 30, 2022 and $1 million of net gains for the six months ended June 30, 2022, which were recognized as regulatory assets and liabilities. Changes in the fair value of natural gas commodity derivatives resulted in $2 million net losses for the three and six months ended June 30, 2021. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. 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 June 30, 2022 Other derivative instruments Commodity trading $ — $ — $ 3 (b) Total $ — $ — $ 3 Six Months Ended June 30, 2022 Other derivative instruments Commodity trading $ — $ — $ 3 (b) Natural gas commodity — 2 (c) (11) (c)(d) Total $ — $ 2 $ (8) Three Months Ended June 30, 2021 Other derivative instruments Commodity trading $ — $ — $ 10 (b) Total $ — $ — $ 10 Six Months Ended June 30, 2021 Derivatives designated as cash flow hedges Interest rate $ 1 (a) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 14 (b) Natural gas commodity — 6 (c) (6) (c)(d) Total $ — $ 6 $ 8 (a) Recorded to interest charges. (b) Recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate. (c) Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate. (d) Relates primarily to option premium amortization. PSCo had no derivative instruments designated as fair value hedges during the three and six months ended June 30, 2022 and 2021. Credit Related Contingent Features — Contract provisions for derivative instruments that PSCo enters into, including those accounted for as normal purchase-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 PSCo’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies. At June 30, 2022 and Dec. 31, 2021, there were no 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 the other financing arrangements related to payment terms or other covenants. As of June 30, 2022 and Dec. 31, 2021, there were approximately $7 million and $16 million, respectively, of derivative liabilities with such underlying contract provisions. 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 PSCo’s ability to fulfill its contractual obligations is reasonably expected to be impaired. PSCo had no collateral posted related to adequate assurance clauses in derivative contracts as of June 30, 2022 and Dec. 31, 2021. Recurring Fair Value Measurements — PSCo’s derivative assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2022 Dec. 31, 2021 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Commodity trading $ 25 $ 105 $ (1) $ 129 $ (95) $ 34 $ 12 $ 97 $ — $ 109 $ (81) $ 28 Natural gas commodity — 8 — 8 — 8 — 11 — 11 — 11 Total current derivative assets $ 25 $ 113 $ (1) $ 137 $ (95) $ 42 $ 12 $ 108 $ — $ 120 $ (81) $ 39 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 22 $ 72 $ 14 $ 108 $ (82) $ 26 $ 10 $ 28 $ 54 $ 92 $ (65) $ 27 Total noncurrent derivative assets $ 22 $ 72 $ 14 $ 108 $ (82) $ 26 $ 10 $ 28 $ 54 $ 92 $ (65) $ 27 June 30, 2022 Dec. 31, 2021 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative liabilities Other derivative instruments: Commodity trading $ 11 $ 106 $ 10 $ 127 $ (94) $ 33 $ 6 $ 90 $ 16 $ 112 $ (85) $ 27 Natural gas commodity — 6 — 6 — 6 — 3 — 3 — 3 Total current derivative liabilities $ 11 $ 112 $ 10 $ 133 $ (94) $ 39 $ 6 $ 93 $ 16 $ 115 $ (85) $ 30 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 9 $ 68 $ 33 $ 110 $ (97) $ 13 $ 3 $ — $ 101 $ 104 $ (75) $ 29 Total noncurrent derivative assets $ 9 $ 68 $ 33 $ 110 $ (97) $ 13 $ 3 $ — $ 101 $ 104 $ (75) $ 29 (a) PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at June 30, 2022 and Dec. 31, 2021. At both June 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include no obligations to return cash collateral. At June 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include rights to reclaim cash collateral of $15 million and $14 million, respectively. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. Changes in Level 3 commodity derivatives: Three Months Ended June 30 (Millions of Dollars) 2022 2021 Balance at April 1 $ (70) $ (38) Settlements 2 — Net transactions recorded during the period: Gains (losses) recognized in earnings (a) 38 (23) Balance at June 30 $ (30) $ (61) Six Months Ended June 30 (Millions of Dollars) 2022 2021 Balance at Jan. 1 $ (63) $ (44) Settlements 4 (1) Net transactions recorded during the period: Gains (losses) recognized in earnings (a) 29 (16) Balance at June 30 $ (30) $ (61) (a) Level 3 net gains recognized in earnings are subject to offsetting net losses of derivative instruments categorized as levels 1 and 2 in the income statement. PSCo recognizes transfers between levels as of the beginning of each period. There were no transfers of amounts between levels for derivative instruments for the three and six months ended June 30, 2022 and 2021. Fair Value of Long-Term Debt Other financial instruments for which the carrying amount did not equal fair value: June 30, 2022 Dec. 31, 2021 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 6,856 $ 6,283 $ 6,467 $ 7,291 Fair value of PSCo’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 June 30, 2022 and Dec. 31, 2021 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Three Months Ended June 30 2022 2021 2022 2021 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 8 $ 8 $ — $ — Interest cost (a) 11 9 3 3 Expected return on plan assets (a) (20) (18) (4) (4) Amortization of prior service credit (a) — — — (1) Amortization of net loss (a) 5 8 1 1 Net periodic benefit cost (credit) 4 7 — (1) Effects of regulation 2 2 — — Net benefit cost (credit) recognized for financial reporting $ 6 $ 9 $ — $ (1) Six Months Ended June 30 2022 2021 2022 2021 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 15 $ 16 $ — $ — Interest cost (a) 21 19 6 6 Expected return on plan assets (a) (39) (36) (8) (8) Amortization of prior service credit (a) — — (1) (2) Amortization of net loss (a) 11 16 1 2 Net periodic benefit cost (credit) 8 15 (2) (2) Effects of regulation 5 2 1 1 Net benefit cost (credit) recognized for financial reporting $ 13 $ 17 $ (1) $ (1) (a) The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. In January 2022, contributions of $50 million were made across four of Xcel Energy’s pension plans, of which $40 million was attributable to PSCo. Xcel Energy does not expect additional pension contributions during 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following includes commitments, contingencies and unresolved contingencies that are material to PSCo’s financial position. Legal PSCo is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on PSCo’s consolidated financial statements. Legal fees are generally expensed as incurred. Comanche Unit 3 Litigation — In September 2021, CORE filed a lawsuit in Denver County District Court. CORE alleges PSCo breached ownership agreement terms by failing to operate Comanche Unit 3 in accordance with prudent utility practices. In January 2022, the Court granted PSCo’s motion and dismissed CORE’s claims for unjust enrichment, declaratory judgment and damages for replacement power costs. In February 2022, CORE disclosed that it is claiming in excess of $125 million in total damages. In April 2022, CORE filed a supplement to include the January 2022 outage. It claims additional undisclosed damages arising from this event. Rate Matters PSCo is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the financial statements. Environmental MGP, Landfill and Disposal Sites PSCo is investigating, remediating or performing post-closure actions at two MGP, landfill or other disposal sites across its service territory. PSCo has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. Environmental Requirements — Water and Waste Coal Ash Regulation — PSCo’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste. Under the CCR Rule, utilities are required to complete groundwater sampling around their CCR landfills and surface impoundments. Currently, PSCo has five regulated ash units in operation. In August 2020, the EPA published its final rule to implement closure by April 2021 for CCR impoundments. This final rule required PSCo to expedite closure plans for one impoundment. PSCo built an alternative collection and treatment system to remove a bottom ash pond from service. The total cost of the treatment system is approximately $25 million. PSCo removed the pond from service in June 2021 and did not meet the April 2021 deadline. PSCo has negotiated a compliance order with the EPA addressing the closure deadline, which includes a penalty of less than $1 million paid by PSCo. The EPA recently clarified its interpretation/guidance regarding CCR units with ash in place and contact with groundwater. This guidance affects two of PSCo’s facilities. PSCo is exploring an agreement with a company that would excavate and process the ash for beneficial use at a cost to PSCo of approximately $30 - $40 million. An estimated liability has been recorded within that range. PSCo anticipates these costs will be fully recoverable through regulatory mechanisms. In addition, increased concentrations of certain chemicals were detected in groundwater at or near four PSCo locations. PSCo is evaluating options for corrective action at two locations. The total cost is uncertain, but could be up to $35 million. PSCo is continuing to assess the financial and regulatory impacts. Leases PSCo evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset. Components of lease expense: Three Months Ended June 30 (Millions of Dollars) 2022 2021 Operating leases PPA capacity payments $ 23 $ 26 Other operating leases (a) 4 3 Total operating lease expense (b) $ 27 $ 29 Finance leases Amortization of ROU assets $ 1 $ 2 Interest expense on lease liability 4 4 Total finance lease expense $ 5 $ 6 (a) Includes immaterial short-term lease expense for 2022 and 2021. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Six Months Ended June 30 (Millions of Dollars) 2022 2021 Operating leases PPA capacity payments $ 48 $ 51 Other operating leases (a) 10 7 Total operating lease expense (b) $ 58 $ 58 Finance leases Amortization of ROU assets $ 2 $ 4 Interest expense on lease liability 8 8 Total finance lease expense $ 10 $ 12 (a) Includes immaterial short-term lease expense for 2022 and 2021. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Commitments under operating and finance leases as of June 30, 2022: (Millions of Dollars) PPA Operating Leases Other Operating Lease Total Operating Leases Finance Leases Total minimum obligation $ 409 $ 47 $ 456 $ 449 Interest component of obligation (50) (5) (55) (326) Present value of minimum obligation $ 359 $ 42 401 123 Less current portion (79) (5) Noncurrent operating and finance lease liabilities $ 322 $ 118 Variable Interest Entities Under certain PPAs, PSCo purchases power from IPPs for which PSCo is required to reimburse fuel costs, or to participate in tolling arrangements under which PSCo procures the natural gas required to produce the energy that they purchase. These specific PPAs create a variable interest in the IPP. PSCo had approximate ly 1,518 MW of capacity under long-term PPAs at both June 30, 2022 and Dec. 31, 2021 with entities that have been determined to be variable interest entities. PSCo concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. The PPAs have expiration dates through 2032. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (Millions of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Accumulated other comprehensive loss at April 1 $ (21) $ (1) $ (22) $ (22) $ (1) $ (23) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives (a) — — — — — — Net current period other comprehensive income — — — — — — Accumulated other comprehensive loss at June 30 $ (21) $ (1) $ (22) $ (22) $ (1) $ (23) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (Millions of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Accumulated other comprehensive loss at Jan. 1 $ (21) $ (1) $ (22) $ (23) $ (1) $ (24) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives (a) — — — 1 — 1 Net current period other comprehensive income — — — 1 — 1 Accumulated other comprehensive loss at June 30 $ (21) $ (1) $ (22) $ (22) $ (1) $ (23) (a) Included in interest charges. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | PSCo evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment. PSCo has the following reportable segments: • Regulated Electric — The regulated electric utility segment generates electricity which is transmitted and distributed in Colorado. This segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes PSCo’s wholesale commodity and trading operations. • Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas in portions of Colorado. PSCo also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments primarily include steam revenue, appliance repair services and non-utility real estate activities. Asset and capital expenditure information is not provided for PSCo’s reportable segments because, as an integrated electric and natural gas utility, PSCo operates significant assets that are not dedicated to a specific business segment and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis. Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising. PSCo’s segment information: Three Months Ended June 30 (Millions of Dollars) 2022 2021 Regulated Electric Total revenues $ 884 $ 827 Net income 116 107 Regulated Natural Gas Total revenues $ 274 $ 338 Net income 14 30 All Other Total revenues (a) $ 11 $ 9 Net income 2 (3) Consolidated Total Total revenues (a) $ 1,169 $ 1,174 Net income 132 134 (a) Total revenues include $1 million of other affiliate revenue for the three months ended June 30, 2022 and 2021. Six Months Ended June 30 (Millions of Dollars) 2022 2021 Regulated Electric Total revenues $ 1,712 $ 1,560 Net income 212 188 Regulated Natural Gas Total revenues $ 852 $ 753 Net income 95 114 All Other Total revenues (a) $ 28 $ 22 Net income 1 (1) Consolidated Total Total revenues (a) $ 2,592 $ 2,335 Net income 308 301 (a) Total revenues include $2 million of other affiliate revenue for the six months ended June 30, 2022 and 2021. |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of Dollars) June 30, 2022 Dec. 31, 2021 Accounts receivable, net Accounts receivable $ 416 $ 414 Less allowance for bad debts (46) (40) Accounts receivable, net $ 370 $ 374 |
Inventories | (Millions of Dollars) June 30, 2022 Dec. 31, 2021 Inventories Materials and supplies $ 75 $ 70 Fuel 74 71 Natural gas 80 104 Total inventories $ 229 $ 245 |
Property, Plant and Equipment, Net | (Millions of Dollars) June 30, 2022 Dec. 31, 2021 Property, plant and equipment, net Electric plant $ 15,271 $ 16,543 Natural gas plant 5,655 5,471 Common and other property 1,301 1,224 Plant to be retired (a) 1,353 182 Construction work in progress 861 681 Total property, plant and equipment 24,441 24,101 Less accumulated depreciation (5,430) (5,657) Property, plant and equipment, net $ 19,011 $ 18,444 (a) Amounts as of Dec. 31, 2021 include Comanche Unit 1 and 2 and Craig Units 1 and 2. Following the June 2022 approval of PSCo’s revised resource plan settlement, amounts as of June 30, 2022 include the addition of Comanche Unit 3, Hayden Units 1 and 2 and coal generation assets at Pawnee pending facility gas conversion. Amounts are reported net of accumulated depreciation. |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for PSCo: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2022 Year Ended Dec. 31, 2021 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 147 Average amount outstanding 18 26 Maximum amount outstanding 136 322 Weighted average interest rate, computed on a daily basis 0.70 % 0.19 % Weighted average interest rate at period end N/A 0.22 |
Credit Facilities | At June 30, 2022, PSCo had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 26 $ 674 (a) Expires in June 2024. (b) Includes outstanding commercial paper and letters of credit. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings for PSCo: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2022 Year Ended Dec. 31, 2021 Borrowing limit $ 250 $ 250 Amount outstanding at period end 25 — Average amount outstanding 39 12 Maximum amount outstanding 250 243 Weighted average interest rate, computed on a daily basis 0.55 % 0.07 % Weighted average interest rate at period end 1.40 N/A |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | PSCo’s operating revenues consisted of the following: Three Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 292 $ 164 $ 4 $ 460 C&I 444 73 7 524 Other 13 — — 13 Total retail 749 237 11 997 Wholesale 71 — — 71 Transmission 21 — — 21 Other 12 33 — 45 Total revenue from contracts with customers 853 270 11 1,134 Alternative revenue and other 31 4 — 35 Total revenues $ 884 $ 274 $ 11 $ 1,169 Three Months Ended June 30, 2021 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 272 $ 204 $ 3 $ 479 C&I 426 81 6 513 Other 13 — — 13 Total retail 711 285 9 1,005 Wholesale 48 — — 48 Transmission 19 — — 19 Other 14 38 — 52 Total revenue from contracts with customers 792 323 9 1,124 Alternative revenue and other 35 15 — 50 Total revenues $ 827 $ 338 $ 9 $ 1,174 Six Months Ended June 30, 2022 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 594 $ 550 $ 7 $ 1,151 C&I 827 215 9 1,051 Other 25 — — 25 Total retail 1,446 765 16 2,227 Wholesale 137 — — 137 Transmission 40 — — 40 Other 24 76 — 100 Total revenue from contracts with customers 1,647 841 16 2,504 Alternative revenue and other 65 11 12 88 Total revenues $ 1,712 $ 852 $ 28 $ 2,592 Six Months Ended June 30, 2021 (Millions of Dollars) Electric Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 518 $ 443 $ 6 $ 967 C&I 752 165 15 932 Other 25 — — 25 Total retail 1,295 608 21 1,924 Wholesale 135 — — 135 Transmission 37 — — 37 Other 23 83 — 106 Total revenue from contracts with customers 1,490 691 21 2,202 Alternative revenue and other 70 62 1 133 Total revenues $ 1,560 $ 753 $ 22 $ 2,335 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory rate and ETR: Six Months Ended June 30 2022 2021 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 3.6 3.6 Increases (decreases) in tax from: Wind PTCs (a) (19.6) (15.1) Plant regulatory differences (b) (3.9) (4.5) Other tax credits, net operating loss & tax credit allowances (1.2) (0.8) Other (net) 0.1 0.2 Effective income tax rate — % 4.4 % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity Forwards and Options | Gross notional amounts of commodity forwards and options: (Amounts in Millions) (a)(b) June 30, 2022 Dec. 31, 2021 Megawatt hours of electricity 12 15 Million British thermal units of natural gas 53 71 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income | 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 June 30, 2022 Other derivative instruments Commodity trading $ — $ — $ 3 (b) Total $ — $ — $ 3 Six Months Ended June 30, 2022 Other derivative instruments Commodity trading $ — $ — $ 3 (b) Natural gas commodity — 2 (c) (11) (c)(d) Total $ — $ 2 $ (8) Three Months Ended June 30, 2021 Other derivative instruments Commodity trading $ — $ — $ 10 (b) Total $ — $ — $ 10 Six Months Ended June 30, 2021 Derivatives designated as cash flow hedges Interest rate $ 1 (a) $ — $ — Total $ 1 $ — $ — Other derivative instruments Commodity trading $ — $ — $ 14 (b) Natural gas commodity — 6 (c) (6) (c)(d) Total $ — $ 6 $ 8 (a) Recorded to interest charges. (b) Recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate. (c) Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate. (d) Relates primarily to option premium amortization. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | June 30, 2022 Dec. 31, 2021 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Commodity trading $ 25 $ 105 $ (1) $ 129 $ (95) $ 34 $ 12 $ 97 $ — $ 109 $ (81) $ 28 Natural gas commodity — 8 — 8 — 8 — 11 — 11 — 11 Total current derivative assets $ 25 $ 113 $ (1) $ 137 $ (95) $ 42 $ 12 $ 108 $ — $ 120 $ (81) $ 39 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 22 $ 72 $ 14 $ 108 $ (82) $ 26 $ 10 $ 28 $ 54 $ 92 $ (65) $ 27 Total noncurrent derivative assets $ 22 $ 72 $ 14 $ 108 $ (82) $ 26 $ 10 $ 28 $ 54 $ 92 $ (65) $ 27 June 30, 2022 Dec. 31, 2021 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative liabilities Other derivative instruments: Commodity trading $ 11 $ 106 $ 10 $ 127 $ (94) $ 33 $ 6 $ 90 $ 16 $ 112 $ (85) $ 27 Natural gas commodity — 6 — 6 — 6 — 3 — 3 — 3 Total current derivative liabilities $ 11 $ 112 $ 10 $ 133 $ (94) $ 39 $ 6 $ 93 $ 16 $ 115 $ (85) $ 30 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ 9 $ 68 $ 33 $ 110 $ (97) $ 13 $ 3 $ — $ 101 $ 104 $ (75) $ 29 Total noncurrent derivative assets $ 9 $ 68 $ 33 $ 110 $ (97) $ 13 $ 3 $ — $ 101 $ 104 $ (75) $ 29 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in Level 3 commodity derivatives: Three Months Ended June 30 (Millions of Dollars) 2022 2021 Balance at April 1 $ (70) $ (38) Settlements 2 — Net transactions recorded during the period: Gains (losses) recognized in earnings (a) 38 (23) Balance at June 30 $ (30) $ (61) Six Months Ended June 30 (Millions of Dollars) 2022 2021 Balance at Jan. 1 $ (63) $ (44) Settlements 4 (1) Net transactions recorded during the period: Gains (losses) recognized in earnings (a) 29 (16) Balance at June 30 $ (30) $ (61) (a) Level 3 net gains recognized in earnings are subject to offsetting net losses of derivative instruments categorized as levels 1 and 2 in the income statement. |
Carrying Amount and Fair Value of Long-term Debt | Other financial instruments for which the carrying amount did not equal fair value: June 30, 2022 Dec. 31, 2021 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 6,856 $ 6,283 $ 6,467 $ 7,291 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 6 Months Ended | |
Jun. 30, 2022 | ||
Retirement Benefits [Abstract] | ||
Components of Net Periodic Benefit Cost (Credit) | Three Months Ended June 30 2022 2021 2022 2021 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 8 $ 8 $ — $ — Interest cost (a) 11 9 3 3 Expected return on plan assets (a) (20) (18) (4) (4) Amortization of prior service credit (a) — — — (1) Amortization of net loss (a) 5 8 1 1 Net periodic benefit cost (credit) 4 7 — (1) Effects of regulation 2 2 — — Net benefit cost (credit) recognized for financial reporting $ 6 $ 9 $ — $ (1) Six Months Ended June 30 2022 2021 2022 2021 (Millions of Dollars) Pension Benefits Postretirement Health Service cost $ 15 $ 16 $ — $ — Interest cost (a) 21 19 6 6 Expected return on plan assets (a) (39) (36) (8) (8) Amortization of prior service credit (a) — — (1) (2) Amortization of net loss (a) 11 16 1 2 Net periodic benefit cost (credit) 8 15 (2) (2) Effects of regulation 5 2 1 1 Net benefit cost (credit) recognized for financial reporting $ 13 $ 17 $ (1) $ (1) (a) The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. | [1] |
[1]The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of Components of Lease Expense | Components of lease expense: Three Months Ended June 30 (Millions of Dollars) 2022 2021 Operating leases PPA capacity payments $ 23 $ 26 Other operating leases (a) 4 3 Total operating lease expense (b) $ 27 $ 29 Finance leases Amortization of ROU assets $ 1 $ 2 Interest expense on lease liability 4 4 Total finance lease expense $ 5 $ 6 (a) Includes immaterial short-term lease expense for 2022 and 2021. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. Six Months Ended June 30 (Millions of Dollars) 2022 2021 Operating leases PPA capacity payments $ 48 $ 51 Other operating leases (a) 10 7 Total operating lease expense (b) $ 58 $ 58 Finance leases Amortization of ROU assets $ 2 $ 4 Interest expense on lease liability 8 8 Total finance lease expense $ 10 $ 12 (a) Includes immaterial short-term lease expense for 2022 and 2021. (b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power. | |
Schedule of Future Commitments under Operating Leases | Commitments under operating and finance leases as of June 30, 2022: (Millions of Dollars) PPA Operating Leases Other Operating Lease Total Operating Leases Finance Leases Total minimum obligation $ 409 $ 47 $ 456 $ 449 Interest component of obligation (50) (5) (55) (326) Present value of minimum obligation $ 359 $ 42 401 123 Less current portion (79) (5) Noncurrent operating and finance lease liabilities $ 322 $ 118 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 (Millions of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Accumulated other comprehensive loss at April 1 $ (21) $ (1) $ (22) $ (22) $ (1) $ (23) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives (a) — — — — — — Net current period other comprehensive income — — — — — — Accumulated other comprehensive loss at June 30 $ (21) $ (1) $ (22) $ (22) $ (1) $ (23) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 (Millions of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Gains and Losses on Cash Flow Hedges Defined Benefit Pension and Postretirement Items Total Accumulated other comprehensive loss at Jan. 1 $ (21) $ (1) $ (22) $ (23) $ (1) $ (24) Losses reclassified from net accumulated other comprehensive loss: Interest rate derivatives (a) — — — 1 — 1 Net current period other comprehensive income — — — 1 — 1 Accumulated other comprehensive loss at June 30 $ (21) $ (1) $ (22) $ (22) $ (1) $ (23) (a) Included in interest charges. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended | |
Jun. 30, 2022 | ||
Segment Reporting [Abstract] | ||
Results from Operations by Reportable Segment | PSCo’s segment information: Three Months Ended June 30 (Millions of Dollars) 2022 2021 Regulated Electric Total revenues $ 884 $ 827 Net income 116 107 Regulated Natural Gas Total revenues $ 274 $ 338 Net income 14 30 All Other Total revenues (a) $ 11 $ 9 Net income 2 (3) Consolidated Total Total revenues (a) $ 1,169 $ 1,174 Net income 132 134 (a) Total revenues include $1 million of other affiliate revenue for the three months ended June 30, 2022 and 2021. Six Months Ended June 30 (Millions of Dollars) 2022 2021 Regulated Electric Total revenues $ 1,712 $ 1,560 Net income 212 188 Regulated Natural Gas Total revenues $ 852 $ 753 Net income 95 114 All Other Total revenues (a) $ 28 $ 22 Net income 1 (1) Consolidated Total Total revenues (a) $ 2,592 $ 2,335 Net income 308 301 (a) Total revenues include $2 million of other affiliate revenue for the six months ended June 30, 2022 and 2021. | [1] |
[1]Total revenues include $2 million of other affiliate revenue for the six months ended June 30, 2022 and 2021. |
Selected Balance Sheet Data (De
Selected Balance Sheet Data (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, net | ||
Accounts receivable | $ 416 | $ 414 |
Less allowance for bad debts | (46) | (40) |
Accounts receivable, net | $ 370 | $ 374 |
Selected Balance Sheet Data Bal
Selected Balance Sheet Data Balance Sheet Related Disclosures, Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Public Utilities, Inventory [Line Items] | ||
Total inventories | $ 229 | $ 245 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 75 | 70 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 74 | 71 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 80 | $ 104 |
Selected Balance Sheet Data B_2
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 24,441 | $ 24,101 | |
Less accumulated depreciation | (5,430) | (5,657) | |
Property, plant and equipment, net | 19,011 | 18,444 | |
Electric plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15,271 | 16,543 | |
Natural gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,655 | 5,471 | |
Common and other property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,301 | 1,224 | |
Plant to be retired | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | [1] | 1,353 | 182 |
Construction work in progress | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 861 | $ 681 | |
[1]Amounts as of Dec. 31, 2021 include Comanche Unit 1 and 2 and Craig Units 1 and 2. Following the June 2022 approval of PSCo’s revised resource plan settlement, amounts as of June 30, 2022 include the addition of Comanche Unit 3, Hayden Units 1 and 2 and coal generation assets at Pawnee pending facility gas conversion. Amounts are reported net of accumulated depreciation. |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments - Short-Term Borrowings (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 147,000,000 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 250,000,000 | 250,000,000 |
Short-term debt | 25,000,000 | 0 |
Average amount outstanding | 39,000,000 | 12,000,000 |
Maximum amount outstanding | $ 250,000,000 | $ 243,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.55% | 0.07% |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.40% | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 700,000,000 | $ 700,000,000 |
Short-term debt | 0 | 147,000,000 |
Average amount outstanding | 18,000,000 | 26,000,000 |
Maximum amount outstanding | $ 136,000,000 | $ 322,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.70% | 0.19% |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.22% |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments - Letters of Credit (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year | |
Short-term debt | $ 0 | $ 147 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Short-term debt | $ 26 | $ 8 |
Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year |
Borrowings and Other Financin_5
Borrowings and Other Financing Instruments - Credit Facility (Details) | 6 Months Ended | ||
Jun. 30, 2022 USD ($) Plan | Dec. 31, 2021 USD ($) | ||
Line of Credit Facility [Line Items] | |||
Term of letters of credit (in years) | 1 year | ||
Number of extension you can request | Plan | 2 | ||
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 700,000,000 | |
Drawn | [2] | 26,000,000 | |
Available | 674,000,000 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1]Expires in June 2024.[2]Includes outstanding commercial paper and letters of credit. |
Borrowings and Other Financin_6
Borrowings and Other Financing Instruments - Borrowings and Other Financing Instruments, Long-Term Borrowings and Other Financing Instruments (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Term of letters of credit (in years) | 1 year |
Bonds [Member] | Series Due June 1, 2032 | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 300,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.10% |
Bonds [Member] | Series Due June 1, 2052 | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 400,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | $ 997 | $ 1,005 | $ 2,227 | $ 1,924 |
Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 460 | 479 | 1,151 | 967 |
Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 524 | 513 | 1,051 | 932 |
Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 13 | 13 | 25 | 25 |
Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 71 | 48 | 137 | 135 |
Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 21 | 19 | 40 | 37 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 45 | 52 | 100 | 106 |
Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 1,134 | 1,124 | 2,504 | 2,202 |
Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 35 | 50 | 88 | 133 |
Regulated Electric | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 749 | 711 | 1,446 | 1,295 |
Regulated Electric | Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 292 | 272 | 594 | 518 |
Regulated Electric | Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 444 | 426 | 827 | 752 |
Regulated Electric | Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 13 | 13 | 25 | 25 |
Regulated Electric | Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 71 | 48 | 137 | 135 |
Regulated Electric | Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 21 | 19 | 40 | 37 |
Regulated Electric | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 12 | 14 | 24 | 23 |
Regulated Electric | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 853 | 792 | 1,647 | 1,490 |
Regulated Electric | Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 31 | 35 | 65 | 70 |
Regulated Natural Gas | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 237 | 285 | 765 | 608 |
Regulated Natural Gas | Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 164 | 204 | 550 | 443 |
Regulated Natural Gas | Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 73 | 81 | 215 | 165 |
Regulated Natural Gas | Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Regulated Natural Gas | Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Regulated Natural Gas | Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Regulated Natural Gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 33 | 38 | 76 | 83 |
Regulated Natural Gas | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 270 | 323 | 841 | 691 |
Regulated Natural Gas | Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 4 | 15 | 11 | 62 |
All Other | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 11 | 9 | 16 | 21 |
All Other | Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 4 | 3 | 7 | 6 |
All Other | Retail | Commercial and Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 7 | 6 | 9 | 15 |
All Other | Retail | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Wholesale Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Transmission Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
All Other | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 11 | 9 | 16 | 21 |
All Other | Alternative and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | 0 | 0 | 12 | 1 |
Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,169 | 1,174 | 2,592 | 2,335 |
Total revenues | Regulated Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 884 | 827 | 1,712 | 1,560 |
Total revenues | Regulated Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 274 | 338 | 852 | 753 |
Total revenues | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 11 | $ 9 | $ 28 | $ 22 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 3.60% | 3.60% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | [1] | (19.60%) | (15.10%) |
Effective Income Tax Rate Reconciliation, Other Regulatory Items, Percent | [2] | (3.90%) | (4.50%) |
Effective Income Tax Rate Reconciliation, Net Operating Loss Carryback, Percent | (1.20%) | (0.80%) | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.10% | 0.20% | |
Effective Income Tax Rate Reconciliation, Percent | 0% | 4.40% | |
[1]Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.[2]Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions. |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Interest Rate Derivatives (Details) - Interest Rate Swap $ in Millions | Jun. 30, 2022 USD ($) |
Derivative [Line Items] | |
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | $ 1 |
Derivative Liability, Notional Amount | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Commodity Derivatives (Details) MWh in Millions, MMBTU in Millions, $ in Millions | Jun. 30, 2022 USD ($) MMBTU MWh | Dec. 31, 2021 MWh MMBTU | |
cash flow hedge commodity [Member] | |||
Derivative [Line Items] | |||
Commodity contracts designated as cash flow hedges | $ | $ 0 | ||
Electric Commodity (in megawatt hours) | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional amount | MWh | [1],[2] | 12 | 15 |
Natural Gas Commodity (in million British thermal units) | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 53 | 71 |
[1]Amounts are not reflective of net positions in the underlying commodities.[2]Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Consideration of Credit Risk and Concentrations (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) Counterparty | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Counterparty | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | ||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | $ 0 | $ 0 | ||||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 | $ 0 | 0 | ||
Other Derivative Instruments | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | (2) | 6 | ||
Pre-tax gains (losses) recognized during the period in income | 3 | 10 | (8) | 8 | ||
Designated as Hedging Instrument | Cash Flow Hedges | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1 | |||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | |||||
Pre-tax gains (losses) recognized during the period in income | 0 | |||||
Natural Gas Commodity | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 1 | |||||
Natural Gas Commodity | Other Derivative Instruments | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | ||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [1] | (2) | 6 | |||
Pre-tax gains (losses) recognized during the period in income | [1],[2] | (11) | (6) | |||
Commodity Trading | Other Derivative Instruments | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | 0 | ||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | ||
Pre-tax gains (losses) recognized during the period in income | [3] | $ 3 | $ 10 | $ 3 | 14 | |
Interest Rate | Designated as Hedging Instrument | Cash Flow Hedges | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [4] | 1 | ||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | |||||
Pre-tax gains (losses) recognized during the period in income | $ 0 | |||||
Credit Concentration Risk | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 10 | 10 | ||||
Credit Concentration Risk | Municipal or Cooperative Entities or Other Utilities [Member] | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 7 | 7 | ||||
Credit Concentration Risk | External Credit Rating, Investment Grade [Member] | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 5 | 5 | ||||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ 51 | $ 51 | ||||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 43% | 43% | ||||
Credit Concentration Risk | No Investment Grade Ratings from External Credit Rating Agencies [Member] | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 3 | 3 | ||||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ 19 | $ 19 | ||||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 16% | 16% | ||||
Credit Concentration Risk | External Credit Rating, Non Investment Grade [Member] | ||||||
Consideration of Credit Risk and Concentrations [Abstract] | ||||||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 2 | 2 | ||||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ 28 | $ 28 | ||||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 24% | 24% | ||||
[1]Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.[2]Relates primarily to option premium amortization.[3]Recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate.[4]Recorded to interest charges. |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Credit Related Contingent Features (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Derivative instruments in a gross liability position | $ 0 | $ 0 |
Collateral posted related to adequate assurance clauses in derivative contracts | 0 | 0 |
Derivative, Gross Liability with Cross Default Position, Aggregate Fair Value | $ 7 | $ 16 |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Return Cash Collateral | $ 0 | $ 0 | |
Reclaim Cash Collateral | 15 | 14 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 137 | 120 | |
Netting | [1] | (95) | (81) |
Derivative Asset, Net | 42 | 39 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 1 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 25 | 12 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 113 | 108 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 3 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | (1) | 0 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 129 | 109 | |
Netting | [1] | (95) | (81) |
Derivative Asset, Net | 34 | 28 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 8 | 11 | |
Netting | [1] | 0 | 0 |
Derivative Asset, Net | 8 | 11 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 25 | 12 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 0 | 0 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 105 | 97 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 8 | 11 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | (1) | 0 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 0 | 0 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 108 | 92 | |
Netting | [1] | (82) | (65) |
Derivative Asset, Net | 26 | 27 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 1 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 22 | 10 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 72 | 28 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Level 3 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 14 | 54 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 108 | 92 | |
Netting | [1] | (82) | (65) |
Derivative Asset, Net | 26 | 27 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 1 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 22 | 10 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 2 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 72 | 28 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Level 3 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Gross | 14 | 54 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 133 | 115 | |
Netting | [1] | (94) | (85) |
Derivative Liability, Net | 39 | 30 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 1 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 11 | 6 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 112 | 93 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 3 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 10 | 16 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 127 | 112 | |
Netting | [1] | (94) | (85) |
Derivative Liability, Net | 33 | 27 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 6 | 3 | |
Netting | [1] | 0 | 0 |
Derivative Liability, Net | 6 | 3 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 11 | 6 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 0 | 0 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 106 | 90 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 6 | 3 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 10 | 16 | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 0 | 0 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 110 | 104 | |
Netting | [1] | (97) | (75) |
Derivative Liability, Net | 13 | 29 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 1 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 9 | 3 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 2 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 68 | 0 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Level 3 | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 33 | 101 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 110 | 104 | |
Netting | [1] | (97) | (75) |
Derivative Liability, Net | 13 | 29 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 1 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 9 | 3 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 2 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | 68 | 0 | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Level 3 | Commodity Trading | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Gross | $ 33 | $ 101 | |
[1]PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at June 30, 2022 and Dec. 31, 2021. At both June 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include no obligations to return cash collateral. At June 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include rights to reclaim cash collateral of $15 million and $14 million, respectively. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities - Changes in Level 3 Commodity Derivatives (Details) - Commodity Contract - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning Balance | $ (70) | $ (38) | $ (63) | $ (44) | ||
Settlements | 2 | 0 | 4 | (1) | ||
(Losses) gains recognized in earnings | 38 | [1] | (23) | [1] | 29 | (16) |
Ending Balance | (30) | (61) | $ (30) | $ (61) | ||
Transfers Level 3, Net | $ 0 | $ 0 | ||||
[1]Level 3 net gains recognized in earnings are subject to offsetting net losses of derivative instruments categorized as levels 1 and 2 in the income statement. |
Fair Value of Financial Asset_9
Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 6,856 | $ 6,467 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value | $ 6,283 | $ 7,291 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jan. 01, 2022 Plan | ||
Pension Plan [Member] | |||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Service cost | $ 8 | $ 8 | $ 15 | $ 16 | |||
Interest Cost | [1] | 11 | 9 | 21 | 19 | ||
Expected return on Plan Assets | [1] | (20) | (18) | (39) | (36) | ||
Amortization of prior service credit | [1] | 0 | 0 | 0 | 0 | ||
Amortization of net loss | [1] | 5 | 8 | 11 | 16 | ||
Net periodic benefit cost (credit) | 4 | 7 | 8 | 15 | |||
Effects of regulation | 2 | 2 | 5 | 2 | |||
Net benefit cost (credit) recognized for financial reporting | 6 | 9 | 13 | 17 | |||
Total contributions to the pension plans during the period | $ 40 | ||||||
Pension Plan [Member] | Xcel Energy Inc. | |||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Total contributions to the pension plans during the period | $ 50 | ||||||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 | ||||||
Other Postretirement Benefits Plan [Member] | |||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Service cost | 0 | 0 | 0 | 0 | |||
Interest Cost | [1] | 3 | 3 | 6 | 6 | ||
Expected return on Plan Assets | [1] | (4) | (4) | (8) | (8) | ||
Amortization of prior service credit | [1] | 0 | (1) | (1) | (2) | ||
Amortization of net loss | [1] | 1 | 1 | 1 | 2 | ||
Net periodic benefit cost (credit) | 0 | (1) | (2) | (2) | |||
Effects of regulation | 0 | 0 | 1 | 1 | |||
Net benefit cost (credit) recognized for financial reporting | $ 0 | $ (1) | $ (1) | $ (1) | |||
[1]The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset. |
Commitments and Contingencies -
Commitments and Contingencies - MGP, Landfill and Disposal Sites (Details) | Jun. 30, 2022 |
Other MGP, Landfill, or Disposal Sites | |
Loss Contingencies [Line Items] | |
Number of identified MGP sites under current investigation and/or remediation | 2 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Requirements - Water and Waste (Details) - Federal Coal Ash Regulation $ in Millions | Jun. 30, 2022 USD ($) Plan |
Site Contingency [Line Items] | |
Number of sites where regulated ash units will still be in operation at a specified date | 5 |
Number of sites where statistically significant increases over established groundwater standards exist | Plan | 4 |
Number of sites where corrective action options are being evaluated for locations with statistically significant increases above background concentrations | Plan | 2 |
Estimated cost to remediate groundwater sampling results | $ 35 |
Estimated cost of construction of an alternative collection and treatment system | 25 |
EPA Penalty | 1 |
Maximum [Member] | |
Site Contingency [Line Items] | |
Cost of Beneficial Use Coal Ash Project | 40 |
Minimum [Member] | |
Site Contingency [Line Items] | |
Cost of Beneficial Use Coal Ash Project | $ 30 |
Commitments and Contingencies_3
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | $ 27 | [1] | $ 29 | [1] | $ 58 | [2] | $ 58 | [2] | |
Finance Lease, Right-of-Use Asset, Amortization | 1 | 2 | 2 | 4 | |||||
Finance Lease, Interest Expense | 4 | 4 | 8 | 8 | |||||
Finance Lease, Cost | 5 | 6 | 10 | 12 | |||||
Lessee, Operating Lease, Liability, Payments, Due | 456 | 456 | |||||||
Total minimum obligation | 449 | 449 | |||||||
Interest component of obligation | (55) | (55) | |||||||
Finance Lease, Liability, Undiscounted Excess Amount | (326) | (326) | |||||||
Operating Lease, Liability | 401 | 401 | |||||||
Finance Lease, Liability | 123 | 123 | |||||||
Less current portion | (79) | (79) | $ (84) | ||||||
Less current portion | (5) | (5) | |||||||
Operating lease liabilities | 322 | 322 | $ 351 | ||||||
Noncurrent operating and finance lease liabilities | 118 | 118 | |||||||
PPAs | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | 23 | 26 | 48 | 51 | |||||
Lessee, Operating Lease, Liability, Payments, Due | 409 | 409 | |||||||
Interest component of obligation | (50) | (50) | |||||||
Operating Lease, Liability | 359 | 359 | |||||||
Other | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Operating Lease, Cost | 4 | [3] | $ 3 | [3] | 10 | [4] | $ 7 | [4] | |
Lessee, Operating Lease, Liability, Payments, Due | 47 | 47 | |||||||
Interest component of obligation | (5) | (5) | |||||||
Operating Lease, Liability | $ 42 | $ 42 | |||||||
[1]PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power.[2]PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income. Expense for other operating leases is included in O&M expense and electric fuel and purchased power.[3]Includes immaterial short-term lease expense for 2022 and 2021.[4]Includes immaterial short-term lease expense for 2022 and 2021. |
VIEs (Details)
VIEs (Details) - MW | Jun. 30, 2022 | Dec. 31, 2021 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Other Commitments [Line Items] | ||
Generating capacity under long term purchased power agreements (in MW) | 1,518 | 1,518 |
Commitments and Contingencies_4
Commitments and Contingencies - Comanche Unit 3 Litigation (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Other Commitments [Line Items] | |
Comanche Unit 3 Litigation | $ 125 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | $ 8,444 | ||||
Accumulated other comprehensive loss at end of period | $ 8,688 | 8,688 | |||
Income Tax Expense (Benefit) | (9) | $ 3 | 0 | $ 14 | |
Gains and Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (21) | (22) | (21) | (23) | |
Net current period other comprehensive loss | 0 | 0 | 0 | 1 | |
Accumulated other comprehensive loss at end of period | (21) | (22) | (21) | (22) | |
Gains and Losses on Cash Flow Hedges | Interest Rate Swap | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Losses reclassified from net accumulated other comprehensive loss | [1] | 0 | 0 | 0 | (1) |
Defined Benefit and Postretirement Items | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (1) | (1) | (1) | (1) | |
Net current period other comprehensive loss | 0 | 0 | 0 | 0 | |
Accumulated other comprehensive loss at end of period | (1) | (1) | (1) | (1) | |
Defined Benefit and Postretirement Items | Interest Rate Swap | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Losses reclassified from net accumulated other comprehensive loss | [1] | 0 | 0 | 0 | 0 |
Total | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (22) | (23) | (22) | (24) | |
Net current period other comprehensive loss | 0 | 0 | 0 | 1 | |
Accumulated other comprehensive loss at end of period | (22) | (23) | (22) | (23) | |
Total | Interest Rate Swap | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Losses reclassified from net accumulated other comprehensive loss | [1] | $ 0 | $ 0 | $ 0 | $ (1) |
[1]Included in interest charges. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||||
Segment Reporting Information [Line Items] | ||||||||
Regulated Operating Revenue, Electric | $ 884 | $ 827 | $ 1,712 | $ 1,560 | ||||
Net income | 132 | 134 | 308 | 301 | ||||
Unregulated Operating Revenue | 11 | 9 | 28 | 22 | ||||
Regulated and Unregulated Operating Revenue | 1,169 | 1,174 | 2,592 | 2,335 | ||||
Affiliate Revenue | 1 | 1 | 2 | 2 | ||||
Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Regulated and Unregulated Operating Revenue | 1,169 | [1] | 1,174 | [1] | 2,592 | [2] | 2,335 | [2] |
Regulated Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues Including Intersegment Revenues | 884 | 827 | 1,712 | 1,560 | ||||
Net income | 116 | 107 | 212 | 188 | ||||
Regulated Natural Gas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues Including Intersegment Revenues | 274 | 338 | 852 | 753 | ||||
Net income | 14 | 30 | 95 | 114 | ||||
All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net income | 2 | (3) | 1 | (1) | ||||
All Other | Total revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Unregulated Operating Revenue | $ 11 | [1] | $ 9 | [1] | $ 28 | [2] | $ 22 | [2] |
[1]Total revenues include $1 million of other affiliate revenue for the three months ended June 30, 2022 and 2021.[2]Total revenues include $2 million of other affiliate revenue for the six months ended June 30, 2022 and 2021. |