x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Minnesota | 41-1967505 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
414 Nicollet Mall | ||
Minneapolis, Minnesota | 55401 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ¨ | Accelerated filer ¨ |
Non-accelerated filer x | Smaller reporting company ¨ |
(Do not check if smaller reporting company) | Emerging growth company ¨ |
Class | Outstanding at April 28, 2017 | ||
Common Stock, $0.01 par value | 1,000,000 shares |
PART I — | FINANCIAL INFORMATION | ||
Item l — | |||
Item 2 — | |||
Item 4 — | |||
PART II — | OTHER INFORMATION | ||
Item 1 — | |||
Item 1A — | |||
Item 6 — | |||
Certifications Pursuant to Section 302 | 1 | ||
Certifications Pursuant to Section 906 | 1 | ||
Statement Pursuant to Private Litigation | 1 |
Three Months Ended March 31 | |||||||
2017 | 2016 | ||||||
Operating revenues | |||||||
Electric, non-affiliates | $ | 955,341 | $ | 908,747 | |||
Electric, affiliates | 123,689 | 124,896 | |||||
Natural gas | 221,183 | 194,130 | |||||
Other | 6,927 | 6,860 | |||||
Total operating revenues | 1,307,140 | 1,234,633 | |||||
Operating expenses | |||||||
Electric fuel and purchased power | 396,121 | 366,166 | |||||
Cost of natural gas sold and transported | 142,745 | 120,223 | |||||
Cost of sales — other | 4,178 | 4,432 | |||||
Operating and maintenance expenses | 312,024 | 320,496 | |||||
Conservation program expenses | 32,499 | 23,269 | |||||
Depreciation and amortization | 172,179 | 145,797 | |||||
Taxes (other than income taxes) | 68,324 | 70,352 | |||||
Total operating expenses | 1,128,070 | 1,050,735 | |||||
Operating income | 179,070 | 183,898 | |||||
Other income, net | 1,864 | 2,860 | |||||
Allowance for funds used during construction — equity | 6,283 | 5,648 | |||||
Interest charges and financing costs | |||||||
Interest charges — includes other financing costs of $1,786, and $1,742, respectively | 57,264 | 54,015 | |||||
Allowance for funds used during construction — debt | (3,228 | ) | (2,706 | ) | |||
Total interest charges and financing costs | 54,036 | 51,309 | |||||
Income before income taxes | 133,181 | 141,097 | |||||
Income taxes | 39,015 | 46,468 | |||||
Net income | $ | 94,166 | $ | 94,629 |
Three Months Ended March 31 | |||||||
2017 | 2016 | ||||||
Net income | $ | 94,166 | $ | 94,629 | |||
Other comprehensive income | |||||||
Pension and retiree medical benefits: | |||||||
Amortization of losses included in net periodic benefit cost, net of tax of $25 and $15 respectively | 35 | 19 | |||||
Derivative instruments: | |||||||
Net fair value decrease, net of tax of $0 and $(1), respectively | — | (1 | ) | ||||
Reclassification of losses to net income, net of tax of $139 and $154, respectively | 203 | 223 | |||||
203 | 222 | ||||||
Other comprehensive income | 238 | 241 | |||||
Comprehensive income | $ | 94,404 | $ | 94,870 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating activities | |||||||
Net income | $ | 94,166 | $ | 94,629 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 173,726 | 147,310 | |||||
Nuclear fuel amortization | 30,852 | 25,750 | |||||
Deferred income taxes | 52,411 | 47,018 | |||||
Amortization of investment tax credits | (414 | ) | (420 | ) | |||
Allowance for equity funds used during construction | (6,283 | ) | (5,648 | ) | |||
Net realized and unrealized hedging and derivative transactions | 1,744 | 1,890 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (25,483 | ) | (45,382 | ) | |||
Accrued unbilled revenues | 69,893 | 40,322 | |||||
Inventories | 32,678 | 35,378 | |||||
Other current assets | (6,397 | ) | (14,146 | ) | |||
Accounts payable | (22,007 | ) | (4,057 | ) | |||
Net regulatory assets and liabilities | 1,513 | 51,517 | |||||
Other current liabilities | (16,016 | ) | (12,118 | ) | |||
Pension and other employee benefit obligations | (58,004 | ) | (48,074 | ) | |||
Change in other noncurrent assets | 849 | (43 | ) | ||||
Change in other noncurrent liabilities | (11,593 | ) | (1,112 | ) | |||
Net cash provided by operating activities | 311,635 | 312,814 | |||||
Investing activities | |||||||
Utility capital/construction expenditures | (277,125 | ) | (259,570 | ) | |||
Allowance for equity funds used during construction | 6,283 | 5,648 | |||||
Purchases investment securities | (172,751 | ) | (109,373 | ) | |||
Proceeds from the sale of investment securities | 167,658 | 104,280 | |||||
Investments in utility money pool arrangement | (87,000 | ) | — | ||||
Repayments from utility money pool arrangement | 87,000 | — | |||||
Other, net | (4,565 | ) | (2,084 | ) | |||
Net cash used in investing activities | (280,500 | ) | (261,099 | ) | |||
Financing activities | |||||||
Repayments of short-term borrowings, net | (46,000 | ) | (150,000 | ) | |||
Borrowings under utility money pool arrangement | 25,000 | 310,000 | |||||
Repayments under utility money pool arrangement | (25,000 | ) | (217,000 | ) | |||
Repayments of long-term debt | (10 | ) | — | ||||
Capital contributions from parent | 89,487 | 89,874 | |||||
Dividends paid to parent | (89,428 | ) | (73,498 | ) | |||
Net cash used in financing activities | (45,951 | ) | (40,624 | ) | |||
Net change in cash and cash equivalents | (14,816 | ) | 11,091 | ||||
Cash and cash equivalents at beginning of period | 47,595 | 42,605 | |||||
Cash and cash equivalents at end of period | $ | 32,779 | $ | 53,696 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest (net of amounts capitalized) | $ | (68,511 | ) | $ | (69,643 | ) | |
Cash received (paid) for income taxes, net | 10,080 | (7,558 | ) | ||||
Supplemental disclosure of non-cash investing transactions: | |||||||
Property, plant and equipment additions in accounts payable | $ | 48,551 | $ | 56,605 |
March 31, 2017 | Dec. 31, 2016 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 32,779 | $ | 47,595 | ||||
Accounts receivable, net | 328,368 | 329,481 | ||||||
Accounts receivable from affiliates | 46,955 | 49,355 | ||||||
Accrued unbilled revenues | 189,697 | 259,590 | ||||||
Inventories | 312,554 | 345,192 | ||||||
Regulatory assets | 190,644 | 186,266 | ||||||
Derivative instruments | 11,117 | 22,028 | ||||||
Prepaid taxes | 60,915 | 56,083 | ||||||
Prepayments and other | 43,534 | 41,923 | ||||||
Total current assets | 1,216,563 | 1,337,513 | ||||||
Property, plant and equipment, net | 13,339,095 | 13,300,793 | ||||||
Other assets | ||||||||
Nuclear decommissioning fund and other investments | 2,001,318 | 1,905,059 | ||||||
Regulatory assets | 1,194,192 | 1,245,151 | ||||||
Derivative instruments | 26,041 | 24,678 | ||||||
Other | 8,237 | 9,086 | ||||||
Total other assets | 3,229,788 | 3,183,974 | ||||||
Total assets | $ | 17,785,446 | $ | 17,822,280 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 500,004 | $ | 10 | ||||
Short-term debt | 39,000 | 85,000 | ||||||
Accounts payable | 297,098 | 371,589 | ||||||
Accounts payable to affiliates | 60,706 | 59,216 | ||||||
Regulatory liabilities | 34,460 | 60,779 | ||||||
Taxes accrued | 296,092 | 241,100 | ||||||
Accrued interest | 54,790 | 71,012 | ||||||
Dividends payable to parent | 85,687 | 89,428 | ||||||
Derivative instruments | 17,136 | 16,606 | ||||||
Customer deposits | 100,267 | 110,244 | ||||||
Other | 103,493 | 150,244 | ||||||
Total current liabilities | 1,588,733 | 1,255,228 | ||||||
Deferred credits and other liabilities | ||||||||
Deferred income taxes | 2,859,965 | 2,788,752 | ||||||
Deferred investment tax credits | 23,762 | 24,175 | ||||||
Regulatory liabilities | 496,905 | 489,825 | ||||||
Asset retirement obligations | 2,482,507 | 2,452,567 | ||||||
Derivative instruments | 114,524 | 116,804 | ||||||
Pension and employee benefit obligations | 311,435 | 368,922 | ||||||
Other | 139,106 | 127,283 | ||||||
Total deferred credits and other liabilities | 6,428,204 | 6,368,328 | ||||||
Commitments and contingencies | ||||||||
Capitalization | ||||||||
Long-term debt | 4,344,223 | 4,843,155 | ||||||
Common stock — authorized 5,000,000 shares of $0.01 par value; 1,000,000 shares outstanding at March 31, 2017 and Dec. 31, 2016, respectively | 10 | 10 | ||||||
Additional paid in capital | 3,495,096 | 3,435,096 | ||||||
Retained earnings | 1,949,725 | 1,941,246 | ||||||
Accumulated other comprehensive loss | (20,545 | ) | (20,783 | ) | ||||
Total common stockholder’s equity | 5,424,286 | 5,355,569 | ||||||
Total liabilities and equity | $ | 17,785,446 | $ | 17,822,280 |
1. | Summary of Significant Accounting Policies |
2. | Accounting Pronouncements |
3. | Selected Balance Sheet Data |
(Thousands of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | 348,348 | $ | 349,449 | ||||
Less allowance for bad debts | (19,980 | ) | (19,968 | ) | ||||
$ | 328,368 | $ | 329,481 |
(Thousands of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
Inventories | ||||||||
Materials and supplies | $ | 217,287 | $ | 214,234 | ||||
Fuel | 85,069 | 97,527 | ||||||
Natural gas | 10,198 | 33,431 | ||||||
$ | 312,554 | $ | 345,192 |
(Thousands of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
Property, plant and equipment, net | ||||||||
Electric plant | $ | 17,085,453 | $ | 17,059,993 | ||||
Natural gas plant | 1,316,661 | 1,311,235 | ||||||
Common and other property | 702,387 | 710,958 | ||||||
Construction work in progress | 565,146 | 509,891 | ||||||
Total property, plant and equipment | 19,669,647 | 19,592,077 | ||||||
Less accumulated depreciation | (6,771,090 | ) | (6,682,418 | ) | ||||
Nuclear fuel | 2,652,026 | 2,571,770 | ||||||
Less accumulated amortization | (2,211,488 | ) | (2,180,636 | ) | ||||
$ | 13,339,095 | $ | 13,300,793 |
4. | Income Taxes |
(Millions of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
Unrecognized tax benefit — Permanent tax positions | $ | 21.8 | $ | 21.5 | ||||
Unrecognized tax benefit — Temporary tax positions | 39.8 | 39.3 | ||||||
Total unrecognized tax benefit | $ | 61.6 | $ | 60.8 |
(Millions of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
NOL and tax credit carryforwards | $ | (19.5 | ) | $ | (19.3 | ) |
(Millions of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
Payable for interest related to unrecognized tax benefits at beginning of period | $ | (2.0 | ) | $ | (0.2 | ) | ||
Interest expense related to unrecognized tax benefits recorded during the period | (0.3 | ) | (1.8 | ) | ||||
Payable for interest related to unrecognized tax benefits at end of period | $ | (2.3 | ) | $ | (2.0 | ) |
5. | Rate Matters |
Request (Millions of Dollars) | 2016 | 2017 | 2018 | |||||||||
Rate request | $ | 194.6 | $ | 52.1 | $ | 50.4 | ||||||
Increase percentage | 6.4 | % | 1.7 | % | 1.7 | % | ||||||
Interim request | $ | 163.7 | $ | 44.9 | N/A | |||||||
Rate base | $ | 7,800 | $ | 7,700 | $ | 7,700 |
• | Four-year period covering 2016-2019; |
• | Annual sales true-up; |
• | ROE of 9.2 percent and an equity ratio of 52.5 percent; |
• | Nuclear related costs will not be considered provisional; |
• | Continued use of all existing riders, however no new riders may be utilized during the four-year term; |
• | Deferral of incremental 2016 property tax expense above a fixed threshold to 2018 and 2019; |
• | Four-year stay out provision for rate cases; |
• | Property tax true-up mechanism for 2017-2019; and |
• | Capital expenditure true-up mechanism for 2016-2019. |
(Millions of Dollars, incremental) | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||
Settlement revenues | $ | 74.99 | $ | 59.86 | $ | — | $ | 50.12 | $ | 184.97 | ||||||||||
NSP-Minnesota’s sales true-up | 59.95 | — | — | (0.20 | ) | 59.75 | ||||||||||||||
Total rate impact | $ | 134.94 | $ | 59.86 | $ | — | $ | 49.92 | $ | 244.72 |
6. | Commitments and Contingencies |
(Millions of Dollars) | March 31, 2017 | Dec. 31, 2016 | ||||||
Guarantee issued and outstanding | $ | 4.8 | $ | 4.8 |
• | The estimated compliance cost for NSP-Minnesota’s Allen S. King Plant is approximately $10 million; and |
• | NSP-Minnesota continues to evaluate the cost of compliance at its other facilities potentially affected by this rule. |
7. | Borrowings and Other Financing Instruments |
(Amounts in Millions, Except Interest Rates) | Three Months Ended March 31, 2017 | Year Ended Dec. 31, 2016 | ||||||
Borrowing limit | $ | 250 | $ | 250 | ||||
Amount outstanding at period end | — | — | ||||||
Average amount outstanding | — | 16 | ||||||
Maximum amount outstanding | 21 | 225 | ||||||
Weighted average interest rate, computed on a daily basis | 0.93 | % | 0.69 | % | ||||
Weighted average interest rate at period end | N/A | N/A |
(Amounts in Millions, Except Interest Rates) | Three Months Ended March 31, 2017 | Year Ended Dec. 31, 2016 | ||||||
Borrowing limit | $ | 500 | $ | 500 | ||||
Amount outstanding at period end | 39 | 85 | ||||||
Average amount outstanding | 95 | 73 | ||||||
Maximum amount outstanding | 237 | 353 | ||||||
Weighted average interest rate, computed on a daily basis | 0.91 | % | 0.65 | % | ||||
Weighted average interest rate at period end | 1.10 | 0.94 |
Credit Facility (a) | Drawn (b) | Available | ||||||||
$ | 500 | $ | 47 | $ | 453 |
(a) | This credit facility matures in June 2021. |
(b) | Includes outstanding commercial paper and letters of credit. |
8. | Fair Value of Financial Assets and Liabilities |
March 31, 2017 | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
(Thousands of Dollars) | Cost | Level 1 | Level 2 | Level 3 | Investments Measured at NAV (b) | Total | ||||||||||||||||||
Nuclear decommissioning fund (a) | ||||||||||||||||||||||||
Cash equivalents | $ | 24,161 | $ | 24,161 | $ | — | $ | — | $ | — | $ | 24,161 | ||||||||||||
Commingled funds: | ||||||||||||||||||||||||
Non U.S. equities | 272,437 | 178,990 | — | — | 98,876 | 277,866 | ||||||||||||||||||
Emerging market debt funds | 94,772 | — | — | — | 101,269 | 101,269 | ||||||||||||||||||
Commodity funds | 106,571 | — | — | — | 88,749 | 88,749 | ||||||||||||||||||
Private equity investments | 137,176 | — | — | — | 194,912 | 194,912 | ||||||||||||||||||
Real estate | 125,410 | — | — | — | 187,609 | 187,609 | ||||||||||||||||||
Other commingled funds | 151,048 | — | — | — | 161,936 | 161,936 | ||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Government securities | 27,369 | — | 27,199 | — | — | 27,199 | ||||||||||||||||||
U.S. corporate bonds | 127,841 | — | 128,799 | — | — | 128,799 | ||||||||||||||||||
Non U.S. corporate bonds | 25,345 | — | 25,556 | — | — | 25,556 | ||||||||||||||||||
Municipal bonds | 5 | — | 5 | — | — | 5 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. equities | 275,101 | 501,543 | — | — | — | 501,543 | ||||||||||||||||||
Non U.S. equities | 188,763 | 232,851 | — | — | — | 232,851 | ||||||||||||||||||
Total | $ | 1,555,999 | $ | 937,545 | $ | 181,559 | $ | — | $ | 833,351 | $ | 1,952,455 |
(a) | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $48.9 million of rabbi trust assets and miscellaneous investments. |
(b) | Due to limited availability of published pricing and a lack of immediate redeemability, certain fund investments measured at NAV are not required to be categorized within the fair value hierarchy. |
Dec. 31, 2016 | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
(Thousands of Dollars) | Cost | Level 1 | Level 2 | Level 3 | Investments Measured at NAV (b) | Total | ||||||||||||||||||
Nuclear decommissioning fund (a) | ||||||||||||||||||||||||
Cash equivalents | $ | 20,379 | $ | 20,379 | $ | — | $ | — | $ | — | $ | 20,379 | ||||||||||||
Commingled funds: | ||||||||||||||||||||||||
Non U.S. equities | 260,877 | 133,126 | — | — | 112,233 | 245,359 | ||||||||||||||||||
Emerging market debt funds | 93,597 | — | — | — | 97,543 | 97,543 | ||||||||||||||||||
Commodity funds | 106,571 | — | — | — | 92,091 | 92,091 | ||||||||||||||||||
Private equity investments | 132,190 | — | — | — | 190,462 | 190,462 | ||||||||||||||||||
Real estate | 128,630 | — | — | — | 187,647 | 187,647 | ||||||||||||||||||
Other commingled funds | 151,048 | — | — | — | 159,489 | 159,489 | ||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Government securities | 32,764 | — | 31,965 | — | — | 31,965 | ||||||||||||||||||
U.S. corporate bonds | 104,913 | — | 105,772 | — | — | 105,772 | ||||||||||||||||||
Non U.S. corporate bonds | 21,751 | — | 21,672 | — | — | 21,672 | ||||||||||||||||||
Municipal bonds | 13,609 | — | 13,786 | — | — | 13,786 | ||||||||||||||||||
Mortgage-backed securities | 2,785 | — | 2,816 | — | — | 2,816 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. equities | 270,779 | 473,400 | — | — | — | 473,400 | ||||||||||||||||||
Non U.S. equities | 189,100 | 218,381 | — | — | — | 218,381 | ||||||||||||||||||
Total | $ | 1,528,993 | $ | 845,286 | $ | 176,011 | $ | — | $ | 839,465 | $ | 1,860,762 |
(a) | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet, which also includes $44.3 million of rabbi trust assets and miscellaneous investments. |
(b) | Due to limited availability of published pricing and a lack of immediate redeemability, certain fund investments measured at NAV are not required to be categorized within the fair value hierarchy. |
Final Contractual Maturity | ||||||||||||||||||||
(Thousands of Dollars) | Due in 1 Year or Less | Due in 1 to 5 Years | Due in 5 to 10 Years | Due after 10 Years | Total | |||||||||||||||
Government securities | $ | — | $ | 1,100 | $ | 3,017 | $ | 23,082 | $ | 27,199 | ||||||||||
U.S. corporate bonds | 354 | 38,741 | 74,617 | 15,087 | 128,799 | |||||||||||||||
International corporate bonds | — | 8,085 | 13,443 | 4,028 | 25,556 | |||||||||||||||
Municipal bonds | — | — | 5 | — | 5 | |||||||||||||||
Debt securities | $ | 354 | $ | 47,926 | $ | 91,082 | $ | 42,197 | $ | 181,559 |
March 31, 2017 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
(Thousands of Dollars) | Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Rabbi Trust (a) | ||||||||||||||||||||
Cash equivalents | $ | 392 | $ | 392 | $ | — | $ | — | $ | 392 | ||||||||||
Mutual funds | 8,745 | 9,089 | — | — | 9,089 | |||||||||||||||
Total | $ | 9,137 | $ | 9,481 | $ | — | $ | — | $ | 9,481 |
Dec. 31, 2016 | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
(Thousands of Dollars) | Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Rabbi Trusts (a) | ||||||||||||||||||||
Cash equivalents | $ | 7,459 | $ | 7,459 | $ | — | $ | — | $ | 7,459 | ||||||||||
Mutual funds | 1,663 | 1,901 | — | — | 1,901 | |||||||||||||||
Total | $ | 9,122 | $ | 9,360 | $ | — | $ | — | $ | 9,360 |
(a) | Reported in nuclear decommissioning fund and other investments on the consolidated balance sheet. |
(Amounts in Thousands) (a)(b) | March 31, 2017 | Dec. 31, 2016 | ||||
Megawatt hours of electricity | 21,044 | 37,805 | ||||
Million British thermal units of natural gas | 77,728 | 79,520 |
(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. |
Three Months Ended March 31, 2017 | |||||||||||||||||||||
Pre-Tax Fair Value Losses Recognized During the Period in: | Pre-Tax (Gains) Losses Reclassified into Income During the Period from: | Pre-Tax Gains (Losses) Recognized During the Period in Income | |||||||||||||||||||
(Thousands of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | Accumulated Other Comprehensive Loss | Regulatory Assets and (Liabilities) | |||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||
Interest rate | $ | — | $ | — | $ | 342 | (a) | $ | — | $ | — | ||||||||||
Total | $ | — | $ | — | $ | 342 | $ | — | $ | — | |||||||||||
Other derivative instruments | |||||||||||||||||||||
Commodity trading | $ | — | $ | — | $ | — | $ | — | $ | 622 | (c) | ||||||||||
Electric commodity | — | (1,247 | ) | — | (2,788 | ) | (d) | — | |||||||||||||
Natural gas commodity | — | (665 | ) | — | 698 | (e) | (945 | ) | (e) | ||||||||||||
Total | $ | — | $ | (1,912 | ) | $ | — | $ | (2,090 | ) | $ | (323 | ) |
Three Months Ended March 31, 2016 | |||||||||||||||||||||
Pre-Tax Fair Value Losses Recognized During the Period in: | Pre-Tax Losses Reclassified into Income During the Period from: | Pre-Tax Gains (Losses) Recognized During the Period in Income | |||||||||||||||||||
(Thousands of Dollars) | Accumulated Other Comprehensive Loss | Regulatory (Assets) and Liabilities | Accumulated Other Comprehensive Loss | Regulatory Assets and(Liabilities) | |||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||
Interest rate | $ | — | $ | — | $ | 346 | (a) | $ | — | $ | — | ||||||||||
Vehicle fuel and other commodity | (2 | ) | — | 31 | (b) | — | — | ||||||||||||||
Total | $ | (2 | ) | $ | — | $ | 377 | $ | — | $ | — | ||||||||||
Other derivative instruments | |||||||||||||||||||||
Commodity trading | $ | — | $ | — | $ | — | $ | — | $ | 992 | (c) | ||||||||||
Electric commodity | — | (1,558 | ) | — | 10,712 | (d) | — | ||||||||||||||
Natural gas commodity | — | (631 | ) | — | 3,460 | (e) | (1,595 | ) | (e) | ||||||||||||
Total | $ | — | $ | (2,189 | ) | $ | — | $ | 14,172 | $ | (603 | ) |
(a) | Amounts are recorded to interest charges. |
(b) | Amounts are recorded to O&M expenses. |
(c) | Amounts are 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. |
(d) | Amounts are recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. |
(e) | Amounts are recorded to cost of natural gas sold and transported. These derivative settlement gains and losses are shared with natural gas customers through purchased natural gas cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. |
March 31, 2017 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 4,015 | $ | 7,307 | $ | — | $ | 11,322 | $ | (6,258 | ) | $ | 5,064 | |||||||||||
Electric commodity | — | — | 5,659 | 5,659 | (223 | ) | 5,436 | |||||||||||||||||
Total current derivative assets | $ | 4,015 | $ | 7,307 | $ | 5,659 | $ | 16,981 | $ | (6,481 | ) | 10,500 | ||||||||||||
PPAs (a) | 617 | |||||||||||||||||||||||
Current derivative instruments | $ | 11,117 | ||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 198 | $ | 32,272 | $ | — | $ | 32,470 | $ | (7,295 | ) | $ | 25,175 | |||||||||||
Total noncurrent derivative assets | $ | 198 | $ | 32,272 | $ | — | $ | 32,470 | $ | (7,295 | ) | 25,175 | ||||||||||||
PPAs (a) | 866 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 26,041 |
March 31, 2017 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 4,777 | $ | 5,026 | $ | — | $ | 9,803 | $ | (6,777 | ) | $ | 3,026 | |||||||||||
Electric commodity | — | — | 223 | 223 | (223 | ) | — | |||||||||||||||||
Total current derivative liabilities | $ | 4,777 | $ | 5,026 | $ | 223 | $ | 10,026 | $ | (7,000 | ) | 3,026 | ||||||||||||
PPAs (a) | 14,110 | |||||||||||||||||||||||
Current derivative instruments | $ | 17,136 | ||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 204 | $ | 23,434 | $ | 793 | $ | 24,431 | $ | (10,463 | ) | $ | 13,968 | |||||||||||
Total noncurrent derivative liabilities | $ | 204 | $ | 23,434 | $ | 793 | $ | 24,431 | $ | (10,463 | ) | 13,968 | ||||||||||||
PPAs (a) | 100,556 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 114,524 |
(a) | During 2006, NSP-Minnesota qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
(b) | NSP-Minnesota nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2017. At March 31, 2017, derivative assets and liabilities include no obligations to return cash collateral and rights to reclaim cash collateral of $3.7 million. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Dec. 31, 2016 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 12,053 | $ | 8,651 | $ | — | $ | 20,704 | $ | (15,500 | ) | $ | 5,204 | |||||||||||
Electric commodity | — | — | 15,997 | 15,997 | (677 | ) | 15,320 | |||||||||||||||||
Natural gas commodity | — | 912 | — | 912 | — | 912 | ||||||||||||||||||
Total current derivative assets | $ | 12,053 | $ | 9,563 | $ | 15,997 | $ | 37,613 | $ | (16,177 | ) | 21,436 | ||||||||||||
PPAs (a) | 592 | |||||||||||||||||||||||
Current derivative instruments | $ | 22,028 | ||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 100 | $ | 31,029 | $ | — | $ | 31,129 | $ | (7,323 | ) | $ | 23,806 | |||||||||||
Total noncurrent derivative assets | $ | 100 | $ | 31,029 | $ | — | $ | 31,129 | $ | (7,323 | ) | 23,806 | ||||||||||||
PPAs (a) | 872 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 24,678 |
Dec. 31, 2016 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 12,397 | $ | 5,964 | $ | — | $ | 18,361 | $ | (15,837 | ) | $ | 2,524 | |||||||||||
Electric commodity | — | — | 677 | 677 | (677 | ) | — | |||||||||||||||||
Total current derivative liabilities | $ | 12,397 | $ | 5,964 | $ | 677 | $ | 19,038 | $ | (16,514 | ) | 2,524 | ||||||||||||
PPAs (a) | 14,082 | |||||||||||||||||||||||
Current derivative instruments | $ | 16,606 | ||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||
Commodity trading | $ | 89 | $ | 23,424 | $ | — | $ | 23,513 | $ | (10,727 | ) | $ | 12,786 | |||||||||||
Total noncurrent derivative liabilities | $ | 89 | $ | 23,424 | $ | — | $ | 23,513 | $ | (10,727 | ) | 12,786 | ||||||||||||
PPAs (a) | 104,018 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 116,804 |
(a) | During 2006, NSP-Minnesota qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
(b) | NSP-Minnesota nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2016. At Dec. 31, 2016, derivative assets and liabilities include no obligations to return cash collateral and rights to reclaim cash collateral of $3.7 million. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Three Months Ended March 31 | ||||||||
(Thousands of Dollars) | 2017 | 2016 | ||||||
Balance at Jan. 1 | $ | 15,320 | $ | 12,970 | ||||
Purchases | 280 | — | ||||||
Settlements | (3,426 | ) | (5,038 | ) | ||||
Net transactions recorded during the period: | ||||||||
Losses recognized in earnings (a) | (792 | ) | (24 | ) | ||||
Net losses recognized as regulatory assets and liabilities | (6,739 | ) | (2,784 | ) | ||||
Balance at March 31 | $ | 4,643 | $ | 5,124 |
(a) | These amounts relate to commodity derivatives held at the end of the period. |
March 31, 2017 | Dec. 31, 2016 | |||||||||||||||
(Thousands of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt, including current portion | $ | 4,844,227 | $ | 5,304,592 | $ | 4,843,165 | $ | 5,310,925 |
9. | Other Income, Net |
Three Months Ended March 31 | ||||||||
(Thousands of Dollars) | 2017 | 2016 | ||||||
Interest income | $ | 2,709 | $ | 3,336 | ||||
Other nonoperating income | 10 | 164 | ||||||
Insurance policy expense | (855 | ) | (640 | ) | ||||
Other income, net | $ | 1,864 | $ | 2,860 |
10. | Segment Information |
• | NSP-Minnesota’s regulated electric utility segment generates, transmits and distributes electricity primarily in portions of Minnesota, North Dakota and South Dakota. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. Regulated electric utility also includes NSP-Minnesota’s commodity trading operations. |
• | NSP-Minnesota’s regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of Minnesota and North Dakota. |
• | Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category. Those primarily include appliance repair services, nonutility real estate activities and revenues associated with processing solid waste into refuse-derived fuel. |
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | |||||||||||||||
Three Months Ended March 31, 2017 | ||||||||||||||||||||
Operating revenues (a)(b) | $ | 1,079,030 | $ | 221,183 | $ | 6,927 | $ | — | $ | 1,307,140 | ||||||||||
Intersegment revenues | 109 | 94 | — | (203 | ) | — | ||||||||||||||
Total revenues | $ | 1,079,139 | $ | 221,277 | $ | 6,927 | $ | (203 | ) | $ | 1,307,140 | |||||||||
Net income (loss) | $ | 78,082 | $ | 17,505 | $ | (1,421 | ) | $ | — | $ | 94,166 |
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | |||||||||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||||||
Operating revenues (a)(b) | $ | 1,033,643 | $ | 194,130 | $ | 6,860 | $ | — | $ | 1,234,633 | ||||||||||
Intersegment revenues | 145 | 162 | — | (307 | ) | — | ||||||||||||||
Total revenues | $ | 1,033,788 | $ | 194,292 | $ | 6,860 | $ | (307 | ) | $ | 1,234,633 | |||||||||
Net income | $ | 71,321 | $ | 23,142 | $ | 166 | $ | — | $ | 94,629 |
(a) | Operating revenues include $124 million and $125 million of affiliate electric revenue for the three months ended March 31, 2017 and 2016. |
(b) | Operating revenues include an immaterial amount of affiliate gas revenue for the three months ended March 31, 2017 and 2016. |
11. | Benefit Plans and Other Postretirement Benefits |
Three Months Ended March 31 | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | 6,958 | $ | 7,077 | $ | 36 | $ | 31 | ||||||||
Interest cost | 10,177 | 11,358 | 854 | 981 | ||||||||||||
Expected return on plan assets | (15,017 | ) | (15,236 | ) | (54 | ) | (43 | ) | ||||||||
Amortization of prior service cost (credit) | 265 | 234 | (759 | ) | (759 | ) | ||||||||||
Amortization of net loss | 9,902 | 9,194 | 507 | 401 | ||||||||||||
Net periodic benefit cost | 12,285 | 12,627 | 584 | 611 | ||||||||||||
Costs not recognized due to the effects of regulation | (4,899 | ) | (5,296 | ) | — | — | ||||||||||
Net benefit cost recognized for financial reporting | $ | 7,386 | $ | 7,331 | $ | 584 | $ | 611 |
12. | Other Comprehensive Income |
Three Months Ended March 31, 2017 | ||||||||||||||||
(Thousands of Dollars) | Gains and Losses on Cash Flow Hedges | Unrealized Gains and Losses on Marketable Securities | Defined Benefit Pension and Postretirement Items | Total | ||||||||||||
Accumulated other comprehensive (loss) income at Jan. 1 | $ | (18,208 | ) | $ | 105 | $ | (2,680 | ) | $ | (20,783 | ) | |||||
Losses reclassified from net accumulated other comprehensive loss | 203 | — | 35 | 238 | ||||||||||||
Net current period other comprehensive income | 203 | — | 35 | 238 | ||||||||||||
Accumulated other comprehensive (loss) income at March 31 | $ | (18,005 | ) | $ | 105 | $ | (2,645 | ) | $ | (20,545 | ) |
Three Months Ended March 31, 2016 | ||||||||||||||||
(Thousands of Dollars) | Gains and Losses on Cash Flow Hedges | Unrealized Gains and Losses on Marketable Securities | Defined Benefit Pension and Postretirement Items | Total | ||||||||||||
Accumulated other comprehensive (loss) income at Jan. 1 | $ | (19,090 | ) | $ | 105 | $ | (2,096 | ) | $ | (21,081 | ) | |||||
Other comprehensive loss before reclassifications | (1 | ) | — | — | (1 | ) | ||||||||||
Losses reclassified from net accumulated other comprehensive loss | 223 | — | 19 | 242 | ||||||||||||
Net current period other comprehensive income | 222 | — | 19 | 241 | ||||||||||||
Accumulated other comprehensive (loss) income at March 31 | $ | (18,868 | ) | $ | 105 | $ | (2,077 | ) | $ | (20,840 | ) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||||||
(Thousands of Dollars) | Three Months Ended March 31, 2017 | Three Months Ended March 31, 2016 | |||||||
Losses on cash flow hedges: | |||||||||
Interest rate derivatives | $ | 342 | (a) | $ | 346 | (a) | |||
Vehicle fuel derivatives | — | (b) | 31 | (b) | |||||
Total, pre-tax | 342 | 377 | |||||||
Tax benefit | (139 | ) | (154 | ) | |||||
Total, net of tax | 203 | 223 | |||||||
Defined benefit pension and postretirement losses: | |||||||||
Amortization of net loss | 109 | (c) | 83 | (c) | |||||
Prior service credit | (49 | ) | (c) | (49 | ) | (c) | |||
Total, pre-tax | 60 | 34 | |||||||
Tax benefit | (25 | ) | (15 | ) | |||||
Total, net of tax | 35 | 19 | |||||||
Total amounts reclassified, net of tax | $ | 238 | $ | 242 |
(a) | Included in interest charges. |
(b) | Included in O&M expenses. |
(c) | Included in the computation of net periodic pension and postretirement benefit costs. See Note 11 for details regarding these benefit plans. |
Three Months Ended March 31 | ||||||||
(Millions of Dollars) | 2017 | 2016 | ||||||
Electric revenues | $ | 1,079 | $ | 1,034 | ||||
Electric fuel and purchased power | (396 | ) | (366 | ) | ||||
Electric margin | $ | 683 | $ | 668 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Trading | $ | 25 | ||
Retail rate increases (a) | 10 | |||
Non-fuel riders | 8 | |||
Conservation program revenue, offset by expenses | 7 | |||
Decoupling (weather portion) - Minnesota | 2 | |||
Estimated impact of weather | (2 | ) | ||
Other, net | (5 | ) | ||
Total increase in electric revenues | $ | 45 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Retail rate increases (a) | $ | 10 | ||
Non-fuel riders | 8 | |||
Conservation program revenue, offset by expenses | 7 | |||
Decoupling (weather portion) - Minnesota | 2 | |||
Wholesale transmission revenue, net of costs | (8 | ) | ||
Interchange revenues from NSP-Wisconsin | (3 | ) | ||
Estimated impact of weather | (2 | ) | ||
Other, net | 1 | |||
Total increase in electric margin | $ | 15 |
(a) | Increase is primarily due to interim rates in Minnesota (subject to and net of estimated provision for refund). See Note 5 to the consolidated financial statements. |
Three Months Ended March 31 | ||||||||
(Millions of Dollars) | 2017 | 2016 | ||||||
Natural gas revenues | $ | 221 | $ | 194 | ||||
Cost of natural gas sold and transported | (143 | ) | (120 | ) | ||||
Natural gas margin | $ | 78 | $ | 74 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Purchased natural gas adjustment clause recovery | $ | 22 | ||
Conservation program revenue, offset by expenses | 2 | |||
Retail sales growth, excluding weather impact | 1 | |||
Other, net | 2 | |||
Total increase in natural gas revenues | $ | 27 |
(Millions of Dollars) | 2017 vs. 2016 | |||
Conservation program revenue, offset by expenses | $ | 2 | ||
Retail sales growth, excluding weather impact | 1 | |||
Other, net | 1 | |||
Total increase in natural gas margin | $ | 4 |
Project Name | Capacity (MW) | State | Estimated Year of Completion | Ownership/PPA | Regulatory Status | ||||||
Freeborn | 200 | MN | 2020 | NSP-Minnesota | Pending MPUC Approval | ||||||
Blazing Star 1 | 200 | MN | 2019 | NSP-Minnesota | Pending MPUC Approval | ||||||
Blazing Star 2 | 200 | MN | 2020 | NSP-Minnesota | Pending MPUC Approval | ||||||
Lake Benton | 100 | MN | 2019 | NSP-Minnesota | Pending MPUC Approval | ||||||
Foxtail | 150 | ND | 2019 | NSP-Minnesota | Pending MPUC Approval | ||||||
Crowned Ridge | 300 | SD | 2019 | NSP-Minnesota | Pending MPUC Approval | ||||||
Total Ownership | 1,150 | ||||||||||
Crowned Ridge | 300 | SD | 2019 | PPA | Pending MPUC Approval | ||||||
Clean Energy 1 | 100 | ND | 2019 | PPA | Pending MPUC Approval | ||||||
Total PPA | 400 |
3.01* | Articles of Incorporation and Amendments of Northern Power Corp. (renamed Northern States Power Co. (a Minnesota corporation) on Aug. 21, 2000) (Exhibit 3.01 to Form 10-12G (file no. 000-31709) dated Oct. 5, 2000). |
3.02* | By-Laws of Northern States Power Co. (a Minnesota corporation) as Amended and Restated on Sept. 26, 2013. (Exhibit 3.02 to Form 10-Q/A for the quarter ended Sept. 30, 2013 (file no. 000-31387)). |
Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Statement pursuant to Private Securities Litigation Reform Act of 1995. | |
101 | The following materials from NSP-Minnesota’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 are formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Balance Sheets, (v) Notes to Consolidated Financial Statements, and (vi) document and entity information. |
Northern States Power Company (a Minnesota corporation) | ||
April 28, 2017 | By: | /s/ JEFFREY S. SAVAGE |
Jeffrey S. Savage | ||
Senior Vice President, Controller | ||
(Principal Accounting Officer) | ||
/s/ ROBERT C. FRENZEL | ||
Robert C. Frenzel | ||
Executive Vice President, Chief Financial Officer and Director | ||
(Principal Financial Officer) |
1. | I have reviewed this report on Form 10-Q of Northern States Power Company (a Minnesota corporation); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ BEN FOWKE | |
Ben Fowke | |
Chairman, Chief Executive Officer and Director | |
(Principal Executive Officer) |
1. | I have reviewed this report on Form 10-Q of Northern States Power Company (a Minnesota corporation); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ ROBERT C. FRENZEL | |
Robert C. Frenzel | |
Executive Vice President, Chief Financial Officer and Director | |
(Principal Financial Officer) |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NSP-Minnesota as of the dates and for the periods expressed in the Form 10-Q. |
/s/ BEN FOWKE | |
Ben Fowke | |
Chairman, Chief Executive Officer and Director | |
(Principal Executive Officer) | |
/s/ ROBERT C. FRENZEL | |
Robert C. Frenzel | |
Executive Vice President, Chief Financial Officer and Director | |
(Principal Financial Officer) |
• | Economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures; |
• | The risk of a significant slowdown in growth or decline in the U.S. economy, the risk of delay in growth recovery in the U.S. economy or the risk of increased cost for insurance premiums, security and other items as a consequence of past or future terrorist attacks; |
• | Trade, monetary, fiscal, taxation and environmental policies of governments, agencies and similar organizations in geographic areas where NSP-Minnesota has a financial interest; |
• | Customer business conditions, including demand for their products or services and supply of labor and materials used in creating their products and services; |
• | Financial or regulatory accounting principles or policies imposed by the FASB, the SEC, the FERC and similar entities with regulatory oversight; |
• | Availability or cost of capital such as changes in: interest rates; market perceptions of the utility industry, NSP-Minnesota, Xcel Energy Inc. or any of its other subsidiaries; or security ratings; |
• | Factors affecting utility and nonutility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages, maintenance or repairs; unanticipated changes to fossil fuel, nuclear fuel or natural gas supply costs or availability due to higher demand, shortages, transportation problems or other developments; nuclear or environmental incidents; cyber incidents; or electric transmission or natural gas pipeline constraints; |
• | Employee workforce factors, including loss or retirement of key executives, collective-bargaining agreements with union employees, or work stoppages; |
• | Increased competition in the utility industry or additional competition in the markets served by NSP-Minnesota, Xcel Energy Inc. and its other subsidiaries; |
• | State, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures and affect the speed and degree to which competition enters the electric and natural gas markets; industry restructuring initiatives; transmission system operation and/or administration initiatives; recovery of investments made under traditional regulation; nature of competitors entering the industry; retail wheeling; a new pricing structure; and former customers entering the generation market; |
• | Environmental laws and regulations, including legislation and regulations relating to climate change, and the associated cost of compliance; |
• | Rate-setting policies or procedures of regulatory entities, including environmental externalities, which are values established by regulators assigning environmental costs to each method of electricity generation when evaluating generation resource options; |
• | Nuclear regulatory policies and procedures, including operating regulations and spent nuclear fuel storage; |
• | Social attitudes regarding the utility and power industries; |
• | Cost and other effects of legal and administrative proceedings, settlements, investigations and claims; |
• | Technological developments that result in competitive disadvantages and create the potential for impairment of existing assets; |
• | Risks associated with implementations of new technologies; and |
• | Other business or investment considerations that may be disclosed from time to time in SEC filings, including “Risk Factors” in Item 1A of NSP-Minnesota’s Form 10-K for the year ended Dec. 31, 2016, or in other publicly disseminated written documents. |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 28, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NORTHERN STATES POWER CO | |
Entity Central Index Key | 0001123852 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000,000 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Interest charges and financing costs | ||
Other financing costs | $ 1,786 | $ 1,742 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Comprehensive income: | ||
Net income | $ 94,166 | $ 94,629 |
Pension and retiree medical benefits: | ||
Amortization of losses included in net periodic benefit cost, net of tax of $25 and $15 respectively | 35 | 19 |
Derivative instruments: | ||
Net fair value decrease, net of tax of $0 and $(1), respectively | 0 | (1) |
Reclassification of losses to net income, net of tax of $139 and $154, respectively | 203 | 223 |
Total derivative instruments, net of tax | 203 | 222 |
Other comprehensive income | 238 | 241 |
Comprehensive income | $ 94,404 | $ 94,870 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Pension and retiree medical benefits: | ||
Amortization of losses included in net periodic benefit cost, tax | $ 25 | $ 15 |
Derivative instruments: | ||
Net fair value (decrease) increase, tax | 0 | (1) |
Reclassification of losses to net income, tax | $ 139 | $ 154 |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Mar. 31, 2017 |
Dec. 31, 2016 |
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Capitalization | ||
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares outstanding (in shares) | 1,000,000 | 1,000,000 |
Management's Opinion |
3 Months Ended |
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Mar. 31, 2017 | |
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 accounting principles generally accepted in the United States of America (GAAP), the financial position of NSP-Minnesota and its subsidiaries as of March 31, 2017 and Dec. 31, 2016; the results of its operations, including the components of net income and comprehensive income, for the three months ended March 31, 2017 and 2016; and its cash flows for the three months ended March 31, 2017 and 2016. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2017 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, 2016 balance sheet information has been derived from the audited 2016 consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2016. These 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 NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2016, filed with the SEC on Feb. 24, 2017. Due to the seasonality of NSP-Minnesota’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2016, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements |
3 Months Ended |
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Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Recently Issued Revenue Recognition — In May 2014, the Financial Accounting Standards Board (FASB) issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update (ASU) No. 2014-09), which provides a new framework for the recognition of revenue. NSP-Minnesota expects its adoption will result in increased disclosures regarding revenue, cash flows and obligations related to arrangements with customers, as well as separate presentation of alternative revenue programs. NSP-Minnesota has not yet fully determined the impacts of adoption for several aspects of the standard, including a determination whether and how much an evaluation of the collectability of regulated electric and gas revenues will impact the amounts of revenue recognized upon delivery. NSP-Minnesota currently expects to implement the standard on a modified retrospective basis, which requires application to contracts with customers effective Jan. 1, 2018, with the cumulative impact on contracts not yet completed as of Dec. 31, 2017 recognized as an adjustment to the opening balance of retained earnings. Classification and Measurement of Financial Instruments — In January 2016, the FASB issued Recognition and Measurement of Financial Assets and Financial Liabilities, Subtopic 825-10 (ASU No. 2016-01), which eliminates the available-for-sale classification for marketable equity securities, and also replaces the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes. Under the new standard, other than when the consolidation or equity method of accounting is utilized, changes in the fair value of equity securities are to be recognized in earnings. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Minnesota expects that as a result of application of accounting principles for rate regulated entities, changes in the fair value of the securities in the nuclear decommissioning fund, currently classified as available-for-sale, will continue to be deferred to a regulatory asset, and that the overall impacts of the Jan. 1, 2018 adoption will not be material. Leases — In February 2016, the FASB issued Leases, Topic 842 (ASU No. 2016-02), which for lessees requires balance sheet recognition of right-of-use assets and lease liabilities for most leases. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2018. NSP-Minnesota has not yet fully determined the impacts of implementation. However, adoption is expected to occur on Jan. 1, 2019 utilizing the practical expedients provided by the standard. As such, agreements entered prior to Jan. 1, 2017 that are currently considered leases are expected to be recognized on the consolidated balance sheet, including contracts for use of office space, equipment and natural gas storage assets, as well as certain purchased power agreements (PPAs) for natural gas-fueled generating facilities. NSP-Minnesota expects that similar agreements entered after Dec. 31, 2016 will generally qualify as leases under the new standard, but has not yet completed its evaluation of certain other contracts, including arrangements for the secondary use of assets, such as land easements. Presentation of Net Periodic Benefit Cost — In March 2017, the FASB issued Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, Topic 715 (ASU No. 2017-07), which establishes that only the service cost element of pension cost may be presented as a component of operating income in the income statement. Also under the guidance, only the service cost component of pension cost is eligible for capitalization. NSP-Minnesota has not yet fully determined the impacts of adoption of the standard, but expects that as a result of application of accounting principles for rate regulated entities, a similar amount of pension cost, including non-service components, will be recognized consistent with the current ratemaking treatment, and that the impacts of adoption will be limited to changes in classification of non-service costs in the consolidated statement of income. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2017. |
Selected Balance Sheet Data |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Data | Selected Balance Sheet Data
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Except to the extent noted below, Note 6 to the consolidated financial statements included in NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2016 appropriately represents, in all material respects, the current status of other income tax matters, and are incorporated herein by reference. Federal Tax Loss Carryback Claims — In 2012-2016, NSP-Minnesota identified certain expenses related to 2009, 2010, 2011, 2013, 2014 and 2015 that qualify for an extended carryback beyond the typical two-year carryback period. As a result of a higher tax rate in prior years, NSP-Minnesota recognized a tax benefit of approximately $5 million in 2015, $17 million in 2014, $12 million in 2013 and $15 million in 2012. Federal Audit — NSP-Minnesota is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. In 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011, including the 2009 carryback claim. As of March 31, 2017, the IRS had proposed an adjustment to the federal tax loss carryback claims that would result in $14 million of income tax expense for the 2009 through 2011 claims, and the 2013 through 2015 claims. In the fourth quarter of 2015, the IRS forwarded the issue to the Office of Appeals (Appeals). In 2016 the IRS audit team and Xcel Energy presented their case to Appeals; however, the outcome and timing of a resolution is uncertain. The statute of limitations applicable to Xcel Energy’s 2009 through 2011 federal income tax returns, following extensions, expires in December 2017. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of the IRS’s proposed adjustment of the carryback claims. In the third quarter of 2015, the IRS commenced an examination of tax years 2012 and 2013. In the first quarter of 2017, the IRS proposed an adjustment to tax years 2012 and 2013 that could have impacted Xcel Energy’s net operating loss (NOL) and tax credit carryforwards and effective tax rate (ETR). After additional review, the IRS withdrew their proposed adjustment. As of March 31, 2017, the IRS had not proposed any other material adjustments to tax years 2012 and 2013. State Audits — NSP-Minnesota is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of March 31, 2017, NSP-Minnesota’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2009. In 2016, the state of Minnesota began an audit of years 2010 through 2014. As of March 31, 2017, Minnesota had not proposed any adjustments, and there were no other state income tax audits in progress. Unrecognized Tax Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would impact the timing of cash payment to the taxing authority. A reconciliation of the amount of unrecognized tax benefit is as follows:
The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows:
It is reasonably possible that NSP-Minnesota’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS Appeals and audit progress, the Minnesota audit progresses, and other state audits resume. As the IRS Appeals and IRS and Minnesota audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $32 million. The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. A reconciliation of the amount of the payable for interest related to unrecognized tax benefits reported are as follows:
No amounts were accrued for penalties related to unrecognized tax benefits as of March 31, 2017 or Dec. 31, 2016. |
Rate Matters |
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Rate Matters | Rate Matters Except to the extent noted below, the circumstances set forth in Note 10 to the consolidated financial statements included in NSP-Minnesota’s Annual Report on Form 10-K for the year ended Dec. 31, 2016, appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. Pending Regulatory Proceeding — Minnesota Public Utilities Commission (MPUC) Minnesota 2016 Multi-Year Electric Rate Case — In November 2015, NSP-Minnesota filed a three-year electric rate case with the MPUC. The rate case is based on a requested return on equity (ROE) of 10.0 percent and a 52.50 percent equity ratio. In December 2015, the MPUC approved interim rates for 2016. The request is detailed in the table below:
Settlement Agreement In August 2016, NSP-Minnesota and various parties reached a settlement which resolves all revenue requirement issues in dispute. The settlement agreement requires the approval of the MPUC. Key terms of the settlement are listed below:
In March 2017, the Administrative Law Judge (ALJ) recommended that the MPUC approve the settlement as it will contribute to just and reasonable rates and that no objections to the settlement are sufficient to merit rejection. The ALJ also provided recommendations for a majority of the revenue requirement issues in the event the MPUC decides to reject the settlement. The MPUC is anticipated to hold deliberations on the rate case in May 2017 and issue an order in June 2017. Pending Regulatory Proceeding — Federal Energy Regulatory Commission (FERC) Midcontinent Independent System Operator, Inc. (MISO) ROE Complaints/ROE Adder — In November 2013, a group of customers filed a complaint at the FERC against MISO transmission owners (TOs), including NSP-Minnesota and NSP-Wisconsin. The complaint argued for a reduction in the ROE in transmission formula rates in the MISO region from 12.38 percent to 9.15 percent, a prohibition on capital structures in excess of 50 percent equity, and the removal of ROE adders (including those for Regional Transmission Organization (RTO) membership and for being an independent transmission company), effective Nov. 12, 2013. In December 2015, an ALJ recommended the FERC approve a ROE of 10.32 percent using a FERC ROE methodology adopted in June 2014, which the FERC upheld in an order issued in September 2016. This ROE is applicable for the 15 month refund period from Nov. 12, 2013 to Feb. 11, 2015, and prospectively from the date of the FERC order. The total prospective ROE is 10.82 percent, which includes a 50 basis point adder for RTO membership. In February 2015, a second complaint seeking to reduce the MISO ROE from 12.38 percent to 8.67 percent prior to any adder was filed with the FERC, resulting in a second period of potential refund from Feb. 12, 2015 to May 11, 2016. The MPUC, the North Dakota Public Service Commission (NDPSC), the South Dakota Public Utilities Commission and the Minnesota Department of Commerce joined a joint complainant/intervenor initial brief recommending an ROE of approximately 8.81 percent. FERC staff recommended a ROE of 8.78 percent. The MISO TOs recommended a ROE of 10.92 percent. In June 2016, the ALJ recommended a ROE of 9.7 percent, the midpoint of the upper half of the discounted cash flow (DCF) range, applying the June 2014 FERC ROE methodology. A decision was expected later in 2017, but could be delayed by the lack of a quorum at the FERC. On April 14, 2017 the D.C. Circuit Court of Appeals vacated and remanded the June 2014 FERC decision, previously made in a New England ROE case. The court decision found that the FERC in that case had not established that the prior ROE was unjust and unreasonable, and that the FERC also failed to adequately support the newly approved ROE. The New England ROE ruling was then the basis for the ROE methodology used in the MISO complaint cases. The court found that the ROE methodology used in the New England ROE case was inadequate because it relied on approaches other than the DCF model. The impact of this court decision on the pending MISO complaint cases is uncertain. As of March 2017, NSP-Minnesota has recognized a current liability for the Nov. 12, 2013 to Feb. 11, 2015 complaint period based on the 10.32 percent ROE provided in the FERC order. This liability is net of refunds processed during the first quarter of 2017. NSP-Minnesota has also recognized a current liability representing the best estimate of the final ROE for the Feb. 12, 2015 to May 11, 2016 complaint period. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
Except to the extent noted below and in Note 5 above, the circumstances set forth in Notes 10, 11 and 12 to the consolidated financial statements included in the NSP-Minnesota Annual Report on Form 10-K for the year ended Dec. 31, 2016, appropriately represent, in all material respects, the current status of commitments and contingent liabilities, and are incorporated herein by reference. The following include commitments, contingencies and unresolved contingencies that are material to NSP-Minnesota’s financial position. PPAs Under certain PPAs, NSP-Minnesota purchases power from independent power producing entities for which NSP-Minnesota is required to reimburse natural gas or biomass fuel costs, or to participate in tolling arrangements under which NSP-Minnesota procures the natural gas required to produce the energy that it purchases. These specific PPAs create a variable interest in the associated independent power producing entity. NSP-Minnesota had approximately 1,069 megawatts (MW) of capacity under long-term PPAs as of March 31, 2017 and Dec. 31, 2016, with entities that have been determined to be variable interest entities. NSP-Minnesota has concluded that these entities are not required to be consolidated in its consolidated financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. These agreements have expiration dates through 2028. Guarantees Under NSP-Minnesota’s railcar lease agreement, accounted for as an operating lease, NSP-Minnesota guarantees the lessor proceeds from sale of the leased assets at the end of the lease term will at least equal the guaranteed residual value. The guarantee issued by NSP-Minnesota has a stated maximum amount; however, NSP-Minnesota expects sale proceeds to exceed the guaranteed amount. This lease agreement expires in 2019. The following table presents the guarantee issued and outstanding for NSP-Minnesota:
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Environmental Loss Contingency Disclosure [Text Block] | Environmental Contingencies Fargo, N.D. Manufactured Gas Plant (MGP) Site — In May 2015, underground pipes, tars and impacted soils were discovered in a right-of-way in Fargo, N.D. that appeared to be associated with a former MGP operated by NSP-Minnesota or prior companies. NSP-Minnesota removed impacted soils and other materials from the right-of-way and commenced an investigation of the historic MGP and adjacent properties (the Fargo MGP Site). NSP-Minnesota has recommended that targeted source removal of impacted soils and historic MGP infrastructure should be performed. The North Dakota Department of Health approved NSP-Minnesota’s proposed cleanup plan in January 2017. The timing and final scope of remediation is dependent on whether current property owners will agree to provide reasonable access to NSP-Minnesota to perform and implement the approved cleanup plan. NSP-Minnesota has initiated insurance recovery litigation in North Dakota. The U.S. District Court for the District of North Dakota agreed to the parties’ request for a stay of the litigation until May 2017. As of March 31, 2017 and Dec. 31, 2016, NSP-Minnesota had recorded a liability of $11.1 million and $11.3 million, respectively, for the Fargo MGP Site. In December 2015, the NDPSC approved NSP-Minnesota’s request to defer costs associated with the Fargo MGP Site, resulting in deferral of all investigation and response costs with the exception of approximately 12 percent allocable to the Minnesota jurisdiction. Uncertainties related to the liability recognized include obtaining access to perform the approved remediation, final designs that will be developed to implement the approved cleanup plan and the potential for contributions from entities that may be identified as potentially responsible parties (PRPs). Other MGP and Landfill Sites — NSP-Minnesota is currently involved in investigating and/or remediating several other MGP and landfill sites. NSP-Minnesota has identified six sites, in addition to the site in Fargo, N.D., where former MGP or landfill disposal activities have or may have resulted in site contamination and are under current investigation and/or remediation. At some or all of these sites, there are other parties that may have responsibility for some portion of any remediation. NSP-Minnesota anticipates that the majority of the investigation or remediation at these sites will continue through at least 2018. NSP-Minnesota had accrued $1.1 million and $0.2 million for these sites at March 31, 2017 and Dec. 31, 2016, respectively. There may be insurance recovery and/or recovery from other PRPs to offset any costs incurred. NSP-Minnesota anticipates that any significant amounts incurred will be recovered from customers. Environmental Requirements Water and Waste Federal Clean Water Act (CWA) Waters of the United States Rule — In 2015, the United States Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) published a final rule that significantly expands the types of water bodies regulated under the CWA and broadens the scope of waters subject to federal jurisdiction. The final rule will subject more utility projects to federal CWA jurisdiction, thereby potentially delaying the siting of new generation projects, pipelines, transmission lines and distribution lines, as well as increasing project costs and expanding permitting and reporting requirements. In October 2015, the U.S. Court of Appeals for the Sixth Circuit issued a nationwide stay of the final rule and subsequently ruled that it, rather than the federal district courts, had jurisdiction over challenges to the rule. In January 2017, the U.S. Supreme Court agreed to resolve the dispute as to which court should hear challenges to the rule. A ruling is expected by the end of 2017. In February 2017, President Trump issued an executive order requiring the EPA and the Corps to review and revise the final rule. The executive order directs the agencies to consider interpreting the term “Waters of the U.S.” in a manner that is more narrow than the final rule. In March 2017, the EPA and the Corps published formal notice of the agencies’ intent to review the final rule and engage in further rulemaking. Federal CWA Effluent Limitations Guidelines (ELG) — In 2015, the EPA issued a final ELG rule for power plants that use coal, natural gas, oil or nuclear materials as fuel and discharge treated effluent to surface waters as well as utility-owned landfills that receive coal combustion residuals.
NSP-Minnesota believes that compliance costs would be recoverable through regulatory mechanisms. Consolidated challenges to the rule are being heard by the Fifth Circuit Court of Appeals. On April 12, 2017, the EPA issued an administrative stay to delay the ELG rule’s compliance deadlines during the pendency of the ongoing litigation in order to give the agency the opportunity to reconsider and review the rule. Air Greenhouse Gas (GHG) Emission Standard for Existing Sources (Clean Power Plan or CPP) — In 2015, the EPA issued its final rule for existing power plants. Among other things, the rule requires that state plans include enforceable measures to ensure emissions from existing power plants achieve the EPA’s state-specific interim (2022-2029) and final (2030 and thereafter) emission performance targets. The CPP was challenged by multiple parties in the D.C. Circuit Court. In February 2016, the U.S. Supreme Court issued an order staying the final CPP rule. In September 2016, the D.C. Circuit Court heard oral arguments in the consolidated challenges to the CPP. The stay will remain in effect until the D.C. Circuit Court reaches its decision and the U.S. Supreme Court either declines to review the lower court’s decision or reaches a decision of its own. In March 2017, President Trump signed an executive order requiring the EPA Administrator to review the CPP rule and if appropriate, publish proposed rules suspending, revising or rescinding it. Accordingly, the EPA has requested that the D.C. Circuit Court hold the litigation in abeyance until the EPA completes its work under the executive order. Parties in the litigation, who support the CPP have filed briefs opposing the EPA’s motion. A court ruling on the EPA’s motion is expected in the second quarter of 2017. NSP-Minnesota has undertaken a number of initiatives that reduce GHG emissions and respond to state renewable and energy efficiency goals. The CPP could require additional emission reductions in states in which NSP-Minnesota operates. If state plans do not provide credit for the investments NSP-Minnesota has already made to reduce GHG emissions, or if they require additional initiatives or emission reductions, then their requirements would potentially impose additional substantial costs. NSP-Minnesota cannot predict the costs of compliance with the final rule once it takes effect due to the uncertainty about what, if anything, the final rules may require. NSP-Minnesota believes compliance costs will be recoverable through regulatory mechanisms. If NSP-Minnesota’s regulators do not allow recovery of all or a part of the cost of capital investment or the operating and maintenance (O&M) costs incurred to comply with the CPP or cost recovery is not provided in a timely manner, it could have a material impact on results of operations, financial position or cash flows. |
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Legal Matters and Contingencies | Legal Contingencies NSP-Minnesota is involved in various litigation matters that are being defended and handled 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 such losses that are 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 of such matters, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, arising from such current proceedings would have a material effect on NSP-Minnesota’s financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. |
Borrowings and Other Financing Instruments |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and Other Financing Instruments | Borrowings and Other Financing Instruments Short-Term Borrowings 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 NSP-Minnesota were as follows:
Commercial Paper — NSP-Minnesota meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool. Commercial paper outstanding for NSP-Minnesota was as follows:
Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At March 31, 2017 and Dec. 31, 2016, there were $8 million and $11 million, respectively, of letters of credit outstanding under the credit facility. The contract amounts of these letters of credit approximate their fair value and are subject to fees. Credit Facility — In order to use its commercial paper program to fulfill short-term funding needs, NSP-Minnesota 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 in an amount exceeding available capacity under this credit facility. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. At March 31, 2017, NSP-Minnesota had the following committed credit facility available (in millions of dollars):
All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Minnesota had no direct advances on the credit facility outstanding at March 31, 2017 and Dec. 31, 2016. |
Fair Value of Financial Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair Value Measurements The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain 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. The three levels in the hierarchy are as follows: 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 the following: 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 (NAV). Investments in equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per-share market value. The investments in commingled funds may be redeemed for NAV with proper notice. Proper notice varies by fund and can range from daily with one or two days notice to annually with 90 days notice. Private equity investments require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate investments may be redeemed with proper notice, which is typically quarterly with 45-90 days notice; however, withdrawals from real estate investments may be delayed or discounted as a result of fund illiquidity. Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The 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. When contractual settlements extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable forecasts of long-term forward prices and volatilities on a valuation is evaluated, and may result in Level 3 classification. Electric commodity derivatives held by NSP-Minnesota include transmission congestion instruments, generally referred to as financial transmission rights (FTRs), purchased from MISO. FTRs purchased from a RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path. The value of an FTR is derived from, and designed to offset, the cost of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of an FTR. NSP-Minnesota’s valuation process for FTRs utilizes complex iterative modeling to predict the impacts of forecasted changes in these drivers of transmission system congestion on the historical pricing of FTR purchases. If forecasted costs of electric transmission congestion increase or decrease for a given FTR path, the value of that particular FTR instrument will likewise increase or decrease. Fair value measurements for FTRs have been assigned a Level 3 given the limited observability of management’s forecasts for several of the inputs to this complex valuation model. Non-trading monthly FTR settlements are included in fuel and purchased energy cost recovery mechanisms, and therefore changes in the fair value of the yet to be settled portions of most FTRs are deferred as a regulatory asset or liability. Given this regulatory treatment and the limited magnitude of NSP-Minnesota’s FTRs, the numerous unobservable quantitative inputs to the complex model used for valuation of FTRs are insignificant to the consolidated financial statements of NSP-Minnesota. Non-Derivative Instruments Fair Value Measurements Nuclear Decommissioning Fund The Nuclear Regulatory Commission requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Together with all accumulated earnings or losses, the assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning the Monticello and Prairie Island (PI) nuclear generating plants. The fund contains cash equivalents, debt securities, equity securities and other investments – all classified as available-for-sale. NSP-Minnesota plans to reinvest matured securities until decommissioning begins. NSP-Minnesota uses the MPUC approved asset allocation for the escrow and investment targets by asset class for both the escrow and qualified trust. NSP-Minnesota recognizes the costs of funding the decommissioning of its nuclear generating plants over the lives of the plants, assuming rate recovery of all costs. Given the purpose and legal restrictions on the use of nuclear decommissioning fund assets, realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota’s regulatory asset for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund, including any other-than-temporary impairments, are deferred as a component of the regulatory asset for nuclear decommissioning. Unrealized gains for the nuclear decommissioning fund were $428.2 million and $378.6 million at March 31, 2017 and Dec. 31, 2016, respectively, and unrealized losses and amounts recorded as other-than-temporary impairments were $31.7 million and $46.9 million at March 31, 2017 and Dec. 31, 2016, respectively. The following tables present the cost and fair value of NSP-Minnesota’s non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund at March 31, 2017 and Dec. 31, 2016:
For the three months ended March 31, 2017 and 2016 there were no Level 3 nuclear decommissioning fund investments and no transfers of amounts between levels. The following table summarizes the final contractual maturity dates of the debt securities in the nuclear decommissioning fund, by asset class, at March 31, 2017:
Rabbi Trusts In June 2016, NSP-Minnesota established a rabbi trust to provide partial funding for future deferred compensation plan distributions. The following tables present the cost and fair value of the assets held in rabbi trust at March 31, 2017 and Dec. 31, 2016:
Derivative Instruments Fair Value Measurements NSP-Minnesota 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 — NSP-Minnesota enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or 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. At March 31, 2017, accumulated other comprehensive losses related to interest rate derivatives included $0.9 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable. Wholesale and Commodity Trading Risk — NSP-Minnesota 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. NSP-Minnesota’s risk management policy allows management to conduct these activities within guidelines and limitations as approved by its risk management committee, which is made up of management personnel not directly involved in the activities governed by this policy. Commodity Derivatives — NSP-Minnesota 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, FTRs, vehicle fuel, and weather derivatives. NSP-Minnesota 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. Changes in the fair value of non-trading commodity derivative instruments are recorded in other comprehensive income or deferred as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. NSP-Minnesota recorded immaterial amounts to income related to the ineffectiveness of cash flow hedges for the three months ended March 31, 2016. Additionally, NSP-Minnesota 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. The following table details the gross notional amounts of commodity forwards, options and FTRs at March 31, 2017 and Dec. 31, 2016:
The following tables detail the impact of derivative activity during the three months ended March 31, 2017 and 2016 on accumulated other comprehensive loss, regulatory assets and liabilities and income:
NSP-Minnesota had no derivative instruments designated as fair value hedges during the three months ended March 31, 2017 and 2016. Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. Consideration of Credit Risk and Concentrations — NSP-Minnesota 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. Given this assessment, as well as an assessment of the impact of NSP-Minnesota’s own credit risk when determining the fair value of derivative liabilities, the impact of considering credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets. NSP-Minnesota employs additional credit risk control mechanisms when appropriate, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided. NSP-Minnesota’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 March 31, 2017, five of NSP-Minnesota’s 10 most significant counterparties for these activities, comprising $30.1 million or 38 percent of this credit exposure, had investment grade credit ratings from Standard & Poor’s, Moody’s or Fitch Ratings. Four of the 10 most significant counterparties, comprising $17.1 million or 22 percent of this credit exposure, were not rated by these external agencies, but based on NSP-Minnesota’s internal analysis, had credit quality consistent with investment grade. Another of these significant counterparties, comprising $0.9 million or 1 percent of this credit exposure, had credit quality less than investment grade, based on ratings from internal analysis. All ten of these significant counterparties are municipal or cooperative electric entities, or other utilities. Credit Related Contingent Features — Contract provisions for derivative instruments that NSP-Minnesota enters into, including those recorded to the consolidated balance sheet at fair value, as well as those accounted for as normal purchase-normal sale contracts and therefore not reflected on the balance sheet, may require the posting of collateral or settlement of the contracts for various reasons, including if NSP-Minnesota is unable to maintain its credit ratings. At March 31, 2017 and Dec. 31, 2016, there were no derivative instruments in a liability position with underlying contract provisions that required the posting of collateral or settlement of outstanding contracts if the credit ratings of NSP-Minnesota were downgraded below investment grade. 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 NSP-Minnesota’s ability to fulfill its contractual obligations is reasonably expected to be impaired. NSP-Minnesota had no collateral posted related to adequate assurance clauses in derivative contracts as of March 31, 2017 and Dec. 31, 2016. Recurring Fair Value Measurements — The following table presents for each of the fair value hierarchy levels, NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis at March 31, 2017:
The following table presents for each of the fair value hierarchy levels, NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2016:
The following table presents the changes in Level 3 commodity derivatives for the three months ended March 31, 2017 and 2016:
NSP-Minnesota 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 months ended March 31, 2017 and 2016. Fair Value of Long-Term Debt As of March 31, 2017 and Dec. 31, 2016, other financial instruments for which the carrying amount did not equal fair value were as follows:
The fair value of NSP-Minnesota’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of March 31, 2017 and Dec. 31, 2016, and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2. |
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Other (Expense) Income, Net | Other Income, Net Other income, net consisted of the following:
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Segment Information |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by NSP-Minnesota’s chief operating decision maker. NSP-Minnesota 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. NSP-Minnesota has the following reportable segments: regulated electric utility, regulated natural gas utility and all other.
Asset and capital expenditure information is not provided for NSP-Minnesota’s reportable segments because as an integrated electric and natural gas utility, NSP-Minnesota 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. To report income from operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment. However, some costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators. A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.
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Benefit Plans and Other Postretirement Benefits |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost
In January 2017, contributions of $150.0 million were made across four of Xcel Energy’s pension plans, of which $59.4 million was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2017. |
Other Comprehensive Income |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | Other Comprehensive Income Changes in accumulated other comprehensive (loss) income, net of tax, for the three months ended March 31, 2017 and 2016 were as follows:
Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2017 and 2016 were as follows:
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Selected Balance Sheet Data (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net |
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Inventories |
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Property, plant and equipment, net |
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the amount of unrecognized tax benefit is as follows:
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Tax Benefits Associated with NOL and Tax Credit Carryforwards | The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows:
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Interest Payable related to Unrecognized Tax Benefits [Table Text Block] | The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. A reconciliation of the amount of the payable for interest related to unrecognized tax benefits reported are as follows:
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Rate Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Public Utilities, General Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NSP-Minnesota's 2016 Multi-Year Electric Rate Case - Rate Request [Table Text Block] | In December 2015, the MPUC approved interim rates for 2016. The request is detailed in the table below:
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NSP-Minnesota 2016 Rate Case Settlement [Table Text Block] |
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Commitments and Contingencies Schedule of Guarantor Obligations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] | The following table presents the guarantee issued and outstanding for NSP-Minnesota:
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Borrowings and Other Financing Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and Other Financing Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities | At March 31, 2017, NSP-Minnesota had the following committed credit facility available (in millions of dollars):
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Money Pool | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and Other Financing Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings | Money pool borrowings for NSP-Minnesota were as follows:
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Commercial Paper | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and Other Financing Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings | Commercial paper outstanding for NSP-Minnesota was as follows:
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Fair Value of Financial Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost and Fair Value of Nuclear Decommissioning Fund Investments | The following tables present the cost and fair value of NSP-Minnesota’s non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund at March 31, 2017 and Dec. 31, 2016:
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Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class | The following table summarizes the final contractual maturity dates of the debt securities in the nuclear decommissioning fund, by asset class, at March 31, 2017:
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Rabbi Trust Securities Amortized Cost and Fair Value Measured on Recurrring Basis [Table Text Block] | In June 2016, NSP-Minnesota established a rabbi trust to provide partial funding for future deferred compensation plan distributions. The following tables present the cost and fair value of the assets held in rabbi trust at March 31, 2017 and Dec. 31, 2016:
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Gross Notional Amounts of Commodity Forwards, Options, and FTRs | The following table details the gross notional amounts of commodity forwards, options and FTRs at March 31, 2017 and Dec. 31, 2016:
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Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income | The following tables detail the impact of derivative activity during the three months ended March 31, 2017 and 2016 on accumulated other comprehensive loss, regulatory assets and liabilities and income:
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Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Recurring Fair Value Measurements — The following table presents for each of the fair value hierarchy levels, NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis at March 31, 2017:
The following table presents for each of the fair value hierarchy levels, NSP-Minnesota’s derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2016:
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Changes in Level 3 Commodity Derivatives | The following table presents the changes in Level 3 commodity derivatives for the three months ended March 31, 2017 and 2016:
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Carrying Amount and Fair Value of Long-term Debt | As of March 31, 2017 and Dec. 31, 2016, other financial instruments for which the carrying amount did not equal fair value were as follows:
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Other (Expense) Income, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (Expense) Income, Net | Other income, net consisted of the following:
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results from Operations by Reportable Segment |
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Benefit Plans and Other Postretirement Benefits (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (Credit) | Components of Net Periodic Benefit Cost
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Other Comprehensive Income (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | Changes in accumulated other comprehensive (loss) income, net of tax, for the three months ended March 31, 2017 and 2016 were as follows:
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Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2017 and 2016 were as follows:
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Selected Balance Sheet Data, Accounts Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounts receivable, net | ||
Accounts receivable | $ 348,348 | $ 349,449 |
Less allowance for bad debts | (19,980) | (19,968) |
Accounts receivable, net | $ 328,368 | $ 329,481 |
Selected Balance Sheet Data, Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 312,554 | $ 345,192 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 217,287 | 214,234 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 85,069 | 97,527 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 10,198 | $ 33,431 |
Commitments and Contingencies, Purchased Power Agreements (Details) - MW |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Mar. 31, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Independent Power Producing Entities | ||||
Purchased Power Agreements [Abstract] | ||||
Generating capacity under long term purchased power agreements (in MW) | 1,069 | 1,069 | ||
Purchase Power Agreement Expiration (year) | 2028 | |||
Payment or Performance Guarantee | ||||
Purchased Power Agreements [Abstract] | ||||
Lease Guarantee Expiration (year) | 2019 | 2019 |
Commitments and Contingencies Commitments and Contingencies, Guarantees and Indemnifications (Details) - Payment or Performance Guarantee - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Guarantor Obligations [Line Items] | ||
Lease Guarantee Expiration (year) | 2019 | 2019 |
Guarantees issued and outstanding | $ 4.8 | $ 4.8 |
Commitments and Contingencies, Environmental Contingencies (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Fargo MGP Site | ||
Environmental Requirements [Abstract] | ||
Accrual for Environmental Loss Contingencies, Gross | $ 11.1 | $ 11.3 |
Percentage of Response Costs Allocable to the Minnesota Jurisdiction | 12.00% | |
Other MGP Sites [Member] | ||
Environmental Requirements [Abstract] | ||
Accrual for Environmental Loss Contingencies, Gross | $ 1.1 | $ 0.2 |
Number of identified MGP sites under current investigation and/or remediation | 6 | |
Capital Addition Purchase Commitments [Member] | NSP-Minnesota | Federal Clean Water Act Effluent Limitations Guidelines [Member] | ||
Environmental Requirements [Abstract] | ||
Liability for estimated cost to comply with regulation | $ 10.0 |
Borrowings and Other Financing Instruments, Short-Term Borrowings (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 39,000,000 | $ 85,000,000 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 250,000,000 | 250,000,000 |
Amount outstanding at period end | 0 | 0 |
Average amount outstanding | 0 | 16,000,000 |
Maximum amount outstanding | $ 21,000,000 | $ 225,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.93% | 0.69% |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 500,000,000 | $ 500,000,000 |
Amount outstanding at period end | 39,000,000 | 85,000,000 |
Average amount outstanding | 95,000,000 | 73,000,000 |
Maximum amount outstanding | $ 237,000,000 | $ 353,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.91% | 0.65% |
Weighted average interest rate at period end (percentage) | 1.10% | 0.94% |
Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 39,000 | $ 85,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 8,000 | $ 11,000 |
Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year |
Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($) |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
||||||
Line of Credit Facility [Line Items] | |||||||
Credit Facility | [1] | $ 500,000,000 | |||||
Drawn | [2] | 47,000,000 | |||||
Available | $ 453,000,000 | ||||||
Maturity Date | Jun. 30, 2021 | ||||||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |||||
|
Fair Value of Financial Assets and Liabilities, Final Contractual Maturity Dates of Debt Securities in Nuclear Decommissioning Fund (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Final Contractual Maturity [Abstract] | |
Due in 1 Year or Less | $ 354 |
Due in 1 to 5 Years | 47,926 |
Due in 5 to 10 Years | 91,082 |
Due after 10 Years | 42,197 |
Total | 181,559 |
Government securities | |
Final Contractual Maturity [Abstract] | |
Due in 1 Year or Less | 0 |
Due in 1 to 5 Years | 1,100 |
Due in 5 to 10 Years | 3,017 |
Due after 10 Years | 23,082 |
Total | 27,199 |
U.S. corporate bonds | |
Final Contractual Maturity [Abstract] | |
Due in 1 Year or Less | 354 |
Due in 1 to 5 Years | 38,741 |
Due in 5 to 10 Years | 74,617 |
Due after 10 Years | 15,087 |
Total | 128,799 |
International corporate bonds | |
Final Contractual Maturity [Abstract] | |
Due in 1 Year or Less | 0 |
Due in 1 to 5 Years | 8,085 |
Due in 5 to 10 Years | 13,443 |
Due after 10 Years | 4,028 |
Total | 25,556 |
Municipal bonds | |
Final Contractual Maturity [Abstract] | |
Due in 1 Year or Less | 0 |
Due in 1 to 5 Years | 0 |
Due in 5 to 10 Years | 5 |
Due after 10 Years | 0 |
Total | $ 5 |
Fair Value of Financial Assets and Liabilities Fair Value of Financial Assets and Liabilities, Cost and Fair Value of Rabbi Trust (Details) - Fair Value Measured on a Recurring Basis - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Cost | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | $ 9,137 | $ 9,122 | ||
Cost | Rabbi Trust [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | [1] | 392 | 7,459 | ||
Cost | Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 8,745 | 1,663 | ||
Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 9,481 | 9,360 | ||
Fair Value | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 9,481 | 9,360 | ||
Fair Value | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 0 | 0 | ||
Fair Value | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 0 | 0 | ||
Fair Value | Rabbi Trust [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | [1] | 392 | 7,459 | ||
Fair Value | Rabbi Trust [Member] | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | [1] | 392 | 7,459 | ||
Fair Value | Rabbi Trust [Member] | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | [1] | 0 | 0 | ||
Fair Value | Rabbi Trust [Member] | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | [1] | 0 | 0 | ||
Fair Value | Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 9,089 | 1,901 | ||
Fair Value | Mutual Funds [Member] | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 9,089 | 1,901 | ||
Fair Value | Mutual Funds [Member] | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | 0 | 0 | ||
Fair Value | Mutual Funds [Member] | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading Securities | [1] | $ 0 | $ 0 | ||
|
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) MWh in Thousands, MMBTU in Thousands, $ in Millions |
Mar. 31, 2017
USD ($)
MMBTU
MWh
Counterparty
|
Dec. 31, 2016
MMBTU
MWh
|
|||||
---|---|---|---|---|---|---|---|
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 | 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 | 10 | ||||||
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 | 5 | ||||||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ | $ 30.1 | ||||||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 38.00% | ||||||
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 | 4 | ||||||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ | $ 17.1 | ||||||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 22.00% | ||||||
Credit Concentration Risk | Credit Quality Less Than 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 | 1 | ||||||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ | $ 0.9 | ||||||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 1.00% | ||||||
Interest Rate Swap | |||||||
Interest Rate Derivatives [Abstract] | |||||||
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | $ | $ (0.9) | ||||||
Electric Commodity (in megawatt hours) | |||||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | |||||||
Derivative, Nonmonetary Notional amount | MWh | [1],[2] | 21,044 | 37,805 | ||||
Natural Gas Commodity (in million British thermal units) | |||||||
Gross Notional Amounts of Commodity Forwards, Options and FTRs [Abstract] | |||||||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 77,728 | 79,520 | ||||
|
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) - USD ($) |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||||||||
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | |||||||||||||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 | |||||||||||
Recognized gains (losses) from fair value hedges or related hedged transactions | 0 | 0 | |||||||||||
Designated as Hedging Instrument | Cash Flow Hedges | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | (2,000) | |||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 342,000 | 377,000 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | |||||||||||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | |||||||||||
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | [1] | 342,000 | 346,000 | ||||||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | |||||||||||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | |||||||||||
Designated as Hedging Instrument | Cash Flow Hedges | Vehicle Fuel And Other Commodity | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | (2,000) | ||||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | ||||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | [2] | 31,000 | |||||||||||
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 | ||||||||||||
Other Derivative Instruments | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (1,912,000) | (2,189,000) | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | (2,090,000) | 14,172,000 | |||||||||||
Pre-tax gains (losses) recognized during the period in income | (323,000) | (603,000) | |||||||||||
Other Derivative Instruments | Commodity Trading | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | |||||||||||
Pre-tax gains (losses) recognized during the period in income | [3] | 622,000 | 992,000 | ||||||||||
Other Derivative Instruments | Electric Commodity | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (1,247,000) | (1,558,000) | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [4] | (2,788,000) | 10,712,000 | ||||||||||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | |||||||||||
Other Derivative Instruments | Natural Gas Commodity | |||||||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (665,000) | (631,000) | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | |||||||||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | [5] | 698,000 | 3,460,000 | ||||||||||
Pre-tax gains (losses) recognized during the period in income | [5] | $ (945,000) | $ (1,595,000) | ||||||||||
|
Fair Value of Financial Assets and Liabilities, Credit Related Contingent Features (Details) - USD ($) |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Derivative instruments in a gross liability position | $ 0 | $ 0 |
Collateral posted on derivative instruments | 0 | 0 |
Collateral posted related to adequate assurance clauses in derivative contracts | $ 0 | $ 0 |
Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | $ 0 | $ 0 | ||||||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 3,700 | 3,700 | ||||||||||
Other Current Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 11,117 | 22,028 | ||||||||||
Other Noncurrent Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 26,041 | 24,678 | ||||||||||
Other Current Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 17,136 | 16,606 | ||||||||||
Other Noncurrent Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 114,524 | 116,804 | ||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 10,500 | 21,436 | ||||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (6,481) | [1] | (16,177) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 5,064 | 5,204 | ||||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (6,258) | [1] | (15,500) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 5,436 | 15,320 | ||||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (223) | [1] | (677) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 912 | |||||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [2] | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 25,175 | 23,806 | ||||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (7,295) | [1] | (7,323) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 25,175 | 23,806 | ||||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (7,295) | [1] | (7,323) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 3,026 | 2,524 | ||||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (7,000) | [1] | (16,514) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 3,026 | 2,524 | ||||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (6,777) | [1] | (15,837) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (223) | [1] | (677) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 13,968 | 12,786 | ||||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (10,463) | [1] | (10,727) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 13,968 | 12,786 | ||||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (10,463) | [1] | (10,727) | [2] | ||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 4,015 | 12,053 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 4,015 | 12,053 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | |||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 198 | 100 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 198 | 100 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 4,777 | 12,397 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 4,777 | 12,397 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 204 | 89 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 204 | 89 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 7,307 | 9,563 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 7,307 | 8,651 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 912 | |||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 32,272 | 31,029 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 32,272 | 31,029 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 5,026 | 5,964 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 5,026 | 5,964 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 23,434 | 23,424 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 23,434 | 23,424 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 5,659 | 15,997 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 5,659 | 15,997 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | |||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 223 | 677 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 223 | 677 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 793 | 0 | ||||||||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 793 | 0 | ||||||||||
Fair Value, Measurements, Nonrecurring | Other Current Assets | Purchased Power Agreements | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 617 | [3] | 592 | [4] | ||||||||
Fair Value, Measurements, Nonrecurring | Other Noncurrent Assets | Purchased Power Agreements | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 866 | [3] | 872 | [4] | ||||||||
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | Purchased Power Agreements | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 14,110 | [3] | 14,082 | [4] | ||||||||
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | Purchased Power Agreements | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 100,556 | [3] | 104,018 | [4] | ||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 16,981 | 37,613 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 11,322 | 20,704 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 5,659 | 15,997 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 912 | |||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 32,470 | 31,129 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 32,470 | 31,129 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 10,026 | 19,038 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 9,803 | 18,361 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 223 | 677 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 24,431 | 23,513 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | ||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | $ 24,431 | $ 23,513 | ||||||||||
|
Fair Value of Financial Assets and Liabilities, Changes in Level 3 Commodity Derivatives (Details) - Commodity Contract - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 15,320,000 | $ 12,970,000 | ||
Purchases | 280,000 | 0 | ||
Settlements | (3,426,000) | (5,038,000) | ||
(Losses) recognized in earnings | [1] | (792,000) | (24,000) | |
Net losses recognized as regulatory assets and liabilities | (6,739,000) | (2,784,000) | ||
Balance at end of period | 4,643,000 | 5,124,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | $ 0 | $ 0 | ||
|
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Carrying Amount | ||
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current portion | $ 4,844,227 | $ 4,843,165 |
Fair Value | ||
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current portion | $ 5,304,592 | $ 5,310,925 |
Other (Expense) Income, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Other Income and Expenses [Abstract] | ||
Interest income (expense) | $ 2,709 | $ 3,336 |
Other nonoperating Income | 10 | 164 |
Insurance policy expense | (855) | (640) |
Other (expense) income, net | $ 1,864 | $ 2,860 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | $ 1,307,140 | $ 1,234,633 | |||||
Net income (loss) | 94,166 | 94,629 | |||||
Affiliate electric revenue | 123,689 | 124,896 | |||||
Regulated Electric | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | 1,079,139 | 1,033,788 | |||||
Net income (loss) | 78,082 | 71,321 | |||||
Regulated Natural Gas | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | 221,277 | 194,292 | |||||
Net income (loss) | 17,505 | 23,142 | |||||
All Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | 6,927 | 6,860 | |||||
Net income (loss) | (1,421) | 166 | |||||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | [1],[2] | 1,307,140 | 1,234,633 | ||||
Operating Segments | Regulated Electric | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | [1] | 1,079,030 | 1,033,643 | ||||
Operating Segments | Regulated Natural Gas | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | [2] | 221,183 | 194,130 | ||||
Operating Segments | All Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | 6,927 | 6,860 | |||||
Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | (203) | (307) | |||||
Net income (loss) | 0 | 0 | |||||
Intersegment Eliminations | Regulated Electric | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | 109 | 145 | |||||
Intersegment Eliminations | Regulated Natural Gas | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | 94 | 162 | |||||
Intersegment Eliminations | All Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating revenues | $ 0 | $ 0 | |||||
|
Benefit Plans and Other Postretirement Benefits (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jan. 31, 2017
USD ($)
Plan
|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
|
Pension Benefits | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 6,958 | $ 7,077 | |
Interest cost | 10,177 | 11,358 | |
Expected return on plan assets | (15,017) | (15,236) | |
Amortization of prior service cost (credit) | 265 | 234 | |
Amortization of net loss | 9,902 | 9,194 | |
Net periodic benefit cost | 12,285 | 12,627 | |
Costs not recognized due to the effects of regulation | (4,899) | (5,296) | |
Net benefit cost recognized for financial reporting | 7,386 | 7,331 | |
Total contributions to the pension plans during the period | $ 59,400 | ||
Postretirement Health Care Benefits | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | 36 | 31 | |
Interest cost | 854 | 981 | |
Expected return on plan assets | (54) | (43) | |
Amortization of prior service cost (credit) | (759) | (759) | |
Amortization of net loss | 507 | 401 | |
Net periodic benefit cost | 584 | 611 | |
Costs not recognized due to the effects of regulation | 0 | 0 | |
Net benefit cost recognized for financial reporting | $ 584 | $ 611 | |
Xcel Energy Inc. | Pension Benefits | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Total contributions to the pension plans during the period | $ 150,000 | ||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 |
Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive (loss) income at beginning of period | $ 5,355,569 | |
(Gains) losses reclassified from net accumulated other comprehensive loss | 238 | $ 242 |
Accumulated other comprehensive (loss) income at end of period | 5,424,286 | |
Gains and Losses on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive (loss) income at beginning of period | (18,208) | (19,090) |
Other comprehensive income (loss) before reclassifications | (1) | |
(Gains) losses reclassified from net accumulated other comprehensive loss | 203 | 223 |
Net current period other comprehensive income (loss) | 203 | 222 |
Accumulated other comprehensive (loss) income at end of period | (18,005) | (18,868) |
Unrealized Gains and Losses on Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive (loss) income at beginning of period | 105 | 105 |
Other comprehensive income (loss) before reclassifications | 0 | |
(Gains) losses reclassified from net accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income (loss) | 0 | 0 |
Accumulated other comprehensive (loss) income at end of period | 105 | 105 |
Defined Benefit Pension and Postretirement Items | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive (loss) income at beginning of period | (2,680) | (2,096) |
Other comprehensive income (loss) before reclassifications | 0 | |
(Gains) losses reclassified from net accumulated other comprehensive loss | 35 | 19 |
Net current period other comprehensive income (loss) | 35 | 19 |
Accumulated other comprehensive (loss) income at end of period | (2,645) | (2,077) |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive (loss) income at beginning of period | (20,783) | (21,081) |
Other comprehensive income (loss) before reclassifications | (1) | |
(Gains) losses reclassified from net accumulated other comprehensive loss | 238 | 242 |
Net current period other comprehensive income (loss) | 238 | 241 |
Accumulated other comprehensive (loss) income at end of period | $ (20,545) | $ (20,840) |
Other Comprehensive Income (Reclassification from AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Operating and maintenance expenses | $ 312,024 | $ 320,496 |
Total, pre-tax | (133,181) | (141,097) |
Tax benefit | 39,015 | 46,468 |
Total amounts reclassified, net of tax | 238 | 242 |
Gains and Losses on Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total amounts reclassified, net of tax | 203 | 223 |
Gains and Losses on Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, pre-tax | 342 | 377 |
Tax benefit | (139) | (154) |
Total, net of tax | 203 | 223 |
Gains and Losses on Cash Flow Hedges | Interest Rate Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest charges | 342 | 346 |
Gains and Losses on Cash Flow Hedges | Vehicle Fuel Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Operating and maintenance expenses | 0 | 31 |
Amortization of net loss | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, pre-tax | 109 | 83 |
Prior service credit | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, pre-tax | (49) | (49) |
Defined Benefit Pension and Postretirement Items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total amounts reclassified, net of tax | 35 | 19 |
Defined Benefit Pension and Postretirement Items | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, pre-tax | 60 | 34 |
Tax (benefit) expense | (25) | (15) |
Total amounts reclassified, net of tax | $ 35 | $ 19 |
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