Borrowings and Other Financing Instruments

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Borrowings and Other Financing Instruments

Short-Term Borrowings

PSCo 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 for PSCo were as follows:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2020			Year Ended Dec. 31, 2019
Borrowing limit	$	250		$	250
Amount outstanding at period end	—			39
Average amount outstanding	94			7
Maximum amount outstanding	250			50
Weighted average interest rate, computed on a daily basis	0.92		%	2.29		%
Weighted average interest rate at period end	N/A			1.63		%

Commercial Paper — Commercial paper outstanding for PSCo was as follows:

(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2020			Year Ended Dec. 31, 2019
Borrowing limit	$	700		$	700
Amount outstanding at period end	—			—
Average amount outstanding	24			154
Maximum amount outstanding	166			432
Weighted average interest rate, computed on a daily basis	0.71		%	2.67		%
Weighted average interest rate at period end	N/A			N/A

Letters of Credit — PSCo uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. There were $8 million and $9 million of letters of credit outstanding under the credit facility at June 30, 2020 and Dec. 31, 2019, respectively. The contract amounts of these letters of credit approximate their fair value and are subject to fees.

Revolving Credit Facility — In order to use its commercial paper program to fulfill short-term funding needs, PSCo 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 aggregate amount exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

PSCo has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval.

At June 30, 2020, PSCo had the following committed revolving credit facility available (in millions of dollars):

Credit Facility (a)		Outstanding (b)		Available
$	700	$	8	$	692

^(a) This credit facility expires in June 2024.

^(b) Includes outstanding commercial paper and letters of credit.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. PSCo had no direct advances on the credit facility outstanding at June 30, 2020 and Dec. 31, 2019.

Long-Term Borrowings

During the six months ended June 30, 2020, PSCo issued $375 million in 1.90% first mortgage bonds due Jan. 15, 2031 and $375 million of 2.70% first mortgage bonds due Jan. 15, 2051.