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Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Borrowings and Other Financing Instruments
5. Borrowings and Other Financing Instruments
Short Term Borrowings
NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool.
Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc.
Money pool borrowings:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2023Year Ended
202320222021
Borrowing limit$150 $150 $150 $150 
Amount outstanding at period end— — — — 
Average amount outstanding7 6 25 16 
Maximum amount outstanding43 43 81 78 
Weighted average interest rate, computed on a daily basis5.34 %4.98 %1.10 %0.05 %
Weighted average interest rate at period endN/AN/AN/AN/A
Commercial Paper — Commercial paper outstanding:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2023Year Ended Dec. 31
202320222021
Borrowing limit$150 $150 $150 $150 
Amount outstanding at period end60 60 47 83 
Average amount outstanding10 15 18 3 
Maximum amount outstanding74 93 123 83 
Weighted average interest rate, computed on a daily basis5.48 %4.85 %1.03 %0.18 %
Weighted average interest rate at end of period5.50 5.50 4.55 0.21 
Letters of Credit — NSP-Wisconsin may use letters of credit, typically with terms of one year, to provide financial guarantees for certain operating obligations. At Dec. 31, 2023 and 2022, there were immaterial letters of credit outstanding.
Credit Facility — In order to use commercial paper programs to fulfill short-term funding needs, NSP-Wisconsin must have revolving credit facilities in place at least equal to the amount of their respective commercial paper borrowing limits and cannot issue commercial paper exceeding available capacity under these credit facilities.
The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.
Features of the credit facility:
Debt-to-Total Capitalization Ratio (a)
Amount Facility May Be Increased (millions of dollars)
Additional Periods for Which a One-Year Extension May Be Requested (b)
20232022
48.2 %47.4 %N/A1 
(a)The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%.
(b)All extension requests are subject to majority bank group approval.
The credit facility has a cross-default provision that NSP-Wisconsin would be in default on borrowings under the facility if NSP-Wisconsin or any of its subsidiaries, whose total assets exceed 15% of NSP-Wisconsin’s consolidated total assets, default on certain indebtedness in an aggregate principal amount exceeding $75 million.
If NSP-Wisconsin does not comply with the covenant, an event of default may be declared, and if not remedied, any outstanding amounts due under the facility can be declared due by the lender. As of Dec. 31, 2023, NSP-Wisconsin was in compliance with all financial covenants.
NSP-Wisconsin had the following committed credit facility available as of Dec. 31, 2023 (in millions of dollars):
Credit Facility (a)
Drawn (b)
Available
$150 $60 $90 
(a)This credit facility matures in September 2027.
(b)Includes outstanding commercial paper.
All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the facility outstanding at Dec. 31, 2023 and 2022, respectively.
Other Short-Term Borrowings — Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, had an immaterial note payable to Xcel Energy Inc. at Dec. 31, 2023 and 2022, respectively.
Long-Term Borrowings and Other Financing Instruments
Generally, the property of NSP-Wisconsin is subject to the lien of its first mortgage indenture for the benefit of bondholders. Debt premiums, discounts and expenses are amortized over the life of the related debt. The premiums, discounts and expenses for refinanced debt are deferred and amortized over the life of new issuance.
Long-term debt obligations for NSP-Wisconsin as of Dec. 31 (in millions of dollars):
Financing InstrumentInterest RateMaturity Date20232022
First mortgage bonds3.30 %June 15, 2024$100 $100 
First mortgage bonds3.30 June 15, 2024100 100 
First mortgage bonds6.375 Sept. 1, 2038200 200 
First mortgage bonds3.70 Oct. 1, 2042100 100 
First mortgage bonds3.75 Dec. 1, 2047100 100 
First mortgage bonds4.20 Sept. 1, 2048200 200 
First mortgage bonds 3.05 May 1, 2051100 100 
First mortgage bonds2.82 May 1, 2051100 100 
First mortgage bonds (a)
4.86 Sept. 15, 2052100 100 
First mortgage bonds (b)
5.30 June 15, 2053125 — 
Unamortized discount(3)(3)
Unamortized debt issuance cost(11)(11)
Current maturities(200)— 
Total long-term debt$1,011 $1,086 
(a)2022 financing.
(b)2023 financing.
Maturities of long-term debt:
(Millions of Dollars)
2024$200 
2025— 
2026— 
2027— 
2028— 
Deferred Financing Costs — Deferred financing costs of approximately $11 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt at both Dec. 31, 2023 and 2022.
Dividend Restrictions — NSP-Wisconsin’s dividends are subject to the FERC’s jurisdiction, which prohibits the payment of dividends out of capital accounts. Dividends are solely to be paid from retained earnings.
NSP-Wisconsin’s state regulatory commission additionally imposes dividend limitations, which are more restrictive than those imposed by the FERC.
Requirements and actuals as of Dec. 31, 2023:
Equity to Total
Capitalization Ratio
Required Range (a)
Equity to Total Capitalization Ratio Actual
LowHigh2023
52.5 %N/A52.7 %
(a)NSP-Wisconsin cannot pay annual dividends in excess of forecasted levels if its average equity-to-total capitalization ratio falls below the commission authorized level.
Unrestricted Retained EarningsTotal CapitalizationLimit on Total Capitalization
$9  million$2,520 millionN/A
. 		[1],[2]
[1] All extension requests are subject to majority bank group approval.
[2] The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%.