Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Difference between the statutory rate and ETR:

	Three Months Ended Sept. 30				Nine Months Ended Sept. 30
	2021		2020		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State tax (net of federal tax effect)	5.0		5.0		5.0		5.1
Decreases:
Wind PTCs	(12.1)		(8.0)		(20.0)		(13.2)
Plant regulatory differences (a)	(5.8)		(7.2)		(6.0)		(7.4)
NOL carryback	—		(1.9)		—		(1.0)
Other (net)	(1.5)		(2.2)		(1.3)		(2.5)
Effective income tax rate	6.6	%	6.7	%	(1.3)	%	2.0	%

(a)Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions.

Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block]

Federal Audits — Statute of limitations applicable to Xcel Energy’s consolidated federal income tax returns expire as follows:

Tax Years	Expiration
2014 — 2016	December 2022
2018	September 2022

Earliest Open Tax Years Subject to Examination by State Taxing Authorities in the Major Operating Jurisdictions

As of Sept. 30, 2021, Xcel Energy’s earliest open tax years (subject to examination by state taxing authorities in its major operating jurisdictions) were as follows:

State	Year
Colorado	2014
Minnesota	2013
Texas	2012
Wisconsin	2016

•In February 2021, Minnesota concluded its review and commenced an audit of tax years 2015 - 2018. No material adjustments have been proposed.

•In March 2021, Wisconsin began an audit of tax years 2016 - 2019. No material adjustments have been proposed.

•In April 2021, Texas began an audit of tax years 2016 - 2019. No material adjustments have been proposed.

•No other state income tax audits were in progress as of Sept. 30, 2021.

Reconciliation of Unrecognized Tax Benefits

Unrecognized tax benefits — permanent vs. temporary:

(Millions of Dollars)	Sept. 30, 2021		Dec. 31, 2020
Unrecognized tax benefit — Permanent tax positions	$	46	$	41
Unrecognized tax benefit — Temporary tax positions	11		11
Total unrecognized tax benefit	$	57	$	52

Tax Benefits Associated with NOL and Tax Credit Carryforwards

Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:

(Millions of Dollars)	Sept. 30, 2021		Dec. 31, 2020
NOL and tax credit carryforwards	$	(35)	$	(31)

Interest Payable related to Unrecognized Tax Benefits

Interest payable related to unrecognized tax benefits:

(Millions of Dollars)	Sept. 30, 2021		Dec. 31, 2020
Payable for interest related to unrecognized tax benefits at beginning of period	$	(3)	$	—
Interest expense related to unrecognized tax benefits	—		(3)
Payable for interest related to unrecognized tax benefits at end of period	$	(3)	$	(3)