Schedule I, Condensed Financial Statements of Xcel Energy Inc

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule I, Condensed Financial Information

XCEL ENERGY INC. CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (amounts in millions, except per share data)
	Year Ended Dec. 31
	2019			2018			2017
Income
Equity earnings of subsidiaries	$	1,505		$	1,393		$	1,263
Total income	1,505			1,393			1,263
Expenses and other deductions
Operating expenses	23			24			30
Other income	(9		)	(1		)	(6		)
Interest charges and financing costs	173			149			128
Total expenses and other deductions	187			172			152
Income before income taxes	1,318			1,221			1,111
Income tax benefit	(54		)	(40		)	(37		)
Net income	$	1,372		$	1,261		$	1,148
Other Comprehensive Income
Pension and retiree medical benefits, net of tax of $1, $1 and $3, respectively	$	3		$	3		$	4
Derivative instruments, net of tax of $(7), $(1) and $2, respectively	(20		)	(2		)	3
Other comprehensive income (loss)	(17		)	1			7
Comprehensive income	$	1,355		$	1,262		$	1,155
Weighted average common shares outstanding:
Basic	519			511			509
Diluted	520			511			509
Earnings per average common share:
Basic	$	2.64		$	2.47		$	2.26
Diluted	2.64			2.47			2.25
See Notes to Condensed Financial Statements

XCEL ENERGY INC. CONDENSED STATEMENTS OF CASH FLOWS (amounts in millions)
	Year Ended Dec. 31
	2019			2018			2017
Operating activities
Net cash provided by operating activities	$	1,389		$	1,210		$	1,208
Investing activities
Capital contributions to subsidiaries	(1,594		)	(809		)	(849		)
Investments in the utility money pool	(1,054		)	(2,578		)	(1,258		)
Return of investments in the utility money pool	1,093			2,493			1,173
Net cash used in investing activities	(1,555		)	(894		)	(934		)
Financing activities
Proceeds from (repayment of) short-term borrowings, net	12			(295		)	715
Proceeds from issuance of long-term debt	1,120			492			—
Repayment of long-term debt	(550		)	—			(250		)
Proceeds from issuance of common stock	458			230			—
Repurchase of common stock	—			(1		)	(3		)
Dividends paid	(791		)	(730		)	(721		)
Other	(14		)	(12		)	(14		)
Net cash (used in) provided by financing activities	235			(316		)	(273		)
Net change in cash and cash equivalents	69			—			1
Cash and cash equivalents at beginning of period	1			1			—
Cash and cash equivalents at end of period	$	70		$	1		$	1
See Notes to Condensed Financial Statements

XCEL ENERGY INC. CONDENSED BALANCE SHEETS (amounts in millions)
	Dec. 31
	2019		2018
Assets
Cash and cash equivalents	$	70	$	1
Accounts receivable from subsidiaries	370		309
Other current assets	12		1
Total current assets	452		311
Investment in subsidiaries	17,443		15,965
Other assets	60		44
Total other assets	17,503		16,009
Total assets	$	17,955	$	16,320
Liabilities and Equity
Dividends payable	212		195
Short-term debt	500		488
Other current liabilities	33		10
Total current liabilities	745		693
Other liabilities	23		32
Total other liabilities	23		32
Commitments and contingencies
Capitalization
Long-term debt	3,948		3,373
Common stockholders’ equity	13,239		12,222
Total capitalization	17,187		15,595
Total liabilities and equity	$	17,955	$	16,320
See Notes to Condensed Financial Statements

Notes to Condensed Financial Statements

Incorporated by reference are Xcel Energy’s consolidated statements of common stockholders’ equity and other comprehensive income in Part II, Item 8.

Basis of Presentation — The condensed financial information of Xcel Energy Inc. is presented to comply with Rule 12-04 of Regulation S-X. Xcel Energy Inc.’s investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in net assets of the subsidiaries are recorded in the balance sheets. The income from operations of the subsidiaries is reported on a net basis as equity in income of subsidiaries.

As a holding company with no business operations, Xcel Energy Inc.’s assets consist primarily of investments in its utility subsidiaries. Xcel Energy Inc.’s material cash inflows are only from dividends and other payments received from its utility subsidiaries and the proceeds raised from the sale of debt and equity securities. The ability of its utility subsidiaries to make dividend and other payments is subject to the availability of funds after taking into account their respective funding requirements, the terms of their respective indebtedness, the regulations of the FERC under the Federal Power Act, and applicable state laws. Management does not expect maintaining these requirements to have an impact on Xcel Energy Inc.’s ability to pay dividends at the current level in the foreseeable future. Each of its utility subsidiaries, however, is legally distinct and has no obligation, contingent or otherwise, to make funds available to Xcel Energy Inc.

Guarantees and Indemnifications

Xcel Energy Inc. provides guarantees and bond indemnities under specified agreements or transactions, which guarantee payment or performance. Xcel Energy Inc.’s exposure is based upon the net liability of the relevant subsidiary under the specified agreements or transactions. Most of the guarantees and bond indemnities issued by Xcel Energy Inc. limit the exposure to a maximum stated amount. As of Dec. 31, 2019 and 2018, Xcel Energy Inc. had no assets held as collateral related to guarantees, bond indemnities and indemnification agreements.

Guarantees and bond indemnities issued and outstanding as of Dec. 31, 2019:

(Millions of Dollars)	Guarantor	Guarantee Amount		Current Exposure	Triggering Event
Guarantee of loan for Hiawatha Collegiate High School (a)	Xcel Energy Inc.	$	1.0	—	(c)
Guarantee performance and payment of surety bonds for Xcel Energy Inc.’s utility subsidiaries (b)	Xcel Energy Inc.	60.4		(e)	(d)

^(a)  The term of this guarantee expires the earlier of 2024 or full repayment of the loan.

^(b)  The surety bonds primarily relate to workers compensation benefits and utility projects. The workers compensation bonds are renewed annually and the project based bonds expire in conjunction with the completion of the related projects.

^(c)  Nonperformance and/or nonpayment.

^(d)  Per the indemnity agreement between Xcel Energy Inc. and the various surety companies, surety companies have the discretion to demand that collateral be posted.

^(e)  Due to the magnitude of projects associated with the surety bonds, the total current exposure of this indemnification cannot be determined. Xcel Energy Inc. believes the exposure to be significantly less than the total amount of the outstanding bonds.

Indemnification Agreements

Xcel Energy Inc. provides indemnifications through contracts entered into in the normal course of business. Indemnifications are primarily against adverse litigation outcomes in connection with underwriting agreements, breaches of representations and warranties, including corporate existence, transaction authorization and certain income tax matters. Obligations under these agreements may be limited in terms of duration or amount. Maximum future payments under these indemnifications cannot be reasonably estimated as the dollar amounts are often not explicitly stated.

Related Party Transactions — Xcel Energy Inc. presents related party receivables net of payables. Accounts receivable and payable with affiliates at Dec. 31:

	2019				2018
(Millions of Dollars)	Accounts Receivable		Accounts Payable		Accounts Receivable		Accounts Payable
NSP-Minnesota	$	60	$	—	$	117	$	—
NSP-Wisconsin	17		—		3		—
PSCo	78		—		29		—
SPS	47		—		39		—
Xcel Energy Services Inc.	112		—		96		—
Xcel Energy Ventures Inc.	25		—		13		—
Other subsidiaries of Xcel Energy Inc.	31		—		12		—
	$	370	$	—	$	309	$	—

Dividends — Cash dividends paid to Xcel Energy Inc. by its subsidiaries were $2,987 million, $1,097 million and $1,063 million for the years ended Dec. 31, 2019, 2018 and 2017, respectively. These cash receipts are included in operating cash flows of the condensed statements of cash flows.

Money Pool — FERC approval was received to establish a utility money pool arrangement with the utility subsidiaries, subject to receipt of required state regulatory approvals. The utility money pool 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 lending for Xcel Energy Inc.:

(Amounts in Millions, Except Interest Rates)	Three Months Ended Dec. 31, 2019
Loan outstanding at period end	$	39
Average loan outstanding	35
Maximum loan outstanding	125
Weighted average interest rate, computed on a daily basis	1.67		%
Weighted average interest rate at end of period	1.63		%
Money pool interest income	1.47		%

(Amounts in Millions, Except Interest Rates)	Year Ended Dec. 31, 2019			Year Ended Dec. 31, 2018			Year Ended Dec. 31, 2017
Loan outstanding at period end	$	39		$	—		$	85
Average loan outstanding	47			71			38
Maximum loan outstanding	250			243			226
Weighted average interest rate, computed on a daily basis	2.15		%	1.95		%	1.13		%
Weighted average interest rate at end of period	1.63		%	N/A			1.18
Money pool interest income	$	1.0		$	1.4		$	0.4

See notes to the consolidated financial statements in Part II, Item 8.