Benefit Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost

	Three Months Ended Sept. 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	1	$	1
Interest cost (a)	1		1
Expected return on plan assets (a)	(2)		(2)
Amortization of net loss (a)	2		1
Settlement charge (b)	3		—
Net periodic benefit cost	$	5	$	1
Effects of regulation	(2)		2
Net benefit cost recognized for financial reporting	$	3	$	3

	Nine Months Ended Sept. 30
	2021		2020
(Millions of Dollars)	Pension Benefits
Service cost	$	4	$	3
Interest cost (a)	3		4
Expected return on plan assets (a)	(6)		(6)
Amortization of net loss (a)	4		4
Settlement charge (b)	3		—
Net periodic benefit cost	$	8	$	5
Effects of regulation	(2)		5
Net benefit cost recognized for financial reporting	$	6	$	10

(a)     The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

(b)     A settlement charge is required when the amount of lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In the third quarter as a result of lump-sum distributions during the 2021 plan year, NSP-Wisconsin recorded a pension settlement charge of $3 million, the majority of which was not recognized in earnings due to the effects of regulation.

In January 2021, contributions of $125 million were made across four of Xcel Energy’s pension plans, of which $5 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2021.