Borrowings and Other Financing Instruments

12 Months Ended

Dec. 31, 2020

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:


(Millions of Dollars, Except Interest Rates)	Three Months Ended Dec. 31, 2020			Year Ended Dec. 31
				2020			2019			2018
Borrowing limit	$	250		$	250		$	250		$	250
Amount outstanding at period end	57			57			39			—
Average amount outstanding	104			59			7			25
Maximum amount outstanding	218			250			50			156
Weighted average interest rate, computed on a daily basis	0.08		%	0.60		%	2.29		%	1.93		%
Weighted average interest rate at end of period	0.07			0.07			1.63			N/A

Commercial Paper — Commercial paper borrowings for PSCo were as follows:


(Millions of Dollars, Except Interest Rates)	Three Months Ended Dec. 31, 2020			Year Ended Dec. 31
				2020			2019			2018
Borrowing limit	$	700		$	700		$	700		$	700
Amount outstanding at period end	136			136			—			307
Average amount outstanding	8			30			154			55
Maximum amount outstanding	136			230			432			309
Weighted average interest rate, computed on a daily basis	0.19		%	1.59		%	2.67		%	2.28		%
Weighted average interest rate at end of period	0.20			0.20			N/A			2.95

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

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.

Amended Credit Agreement — In June 2019, PSCo entered into an amended five-year credit agreement with a syndicate of banks. The amended credit agreement has substantially the same terms and conditions as the prior credit agreement with the exception of the maturity, which is June 2024.

Features of PSCo’s credit facility:


Debt-to-Total Capitalization Ratio (a)				Amount Facility May Be Increased (millions)		Additional Periods for Which a One-Year Extension May Be Requested (b)
2020		2019
44	%	44	%	$	100	2

(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 provides PSCo would be in default on its borrowings under the facility if PSCo or any of its subsidiaries whose total assets exceed 15% of PSCo’s consolidated total assets, default on indebtedness in an aggregate principal amount exceeding $75 million.

If PSCo 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, 2020, PSCo was in compliance with all financial covenants.

PSCO had the following committed credit facility available as of Dec. 31, 2020 (millions):


Credit Facility (a)		Drawn (b)		Available
$	700	$	144	$	556

(a)This credit facility matures in June 2024.

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

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 facility outstanding at Dec. 31, 2020 and 2019.

Long-Term Borrowings and Other Financing Instruments

Generally, property of PSCo is subject to the liens of its first mortgage indenture. 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 the new issuance.

Long-term debt obligations for PSCo as of Dec. 31 (millions of dollars):


Financing Instrument	Interest Rate	Maturity Date	2020		2019
First mortgage bonds	3.20	Nov. 15, 2020	—		400
First mortgage bonds	2.25	Sept. 15, 2022	300		300
First mortgage bonds	2.50	March 15, 2023	250		250
First mortgage bonds	2.90	May 15, 2025	250		250
First mortgage bonds	3.70	June 15, 2028	350		350
First mortgage bonds (a)	1.90	Jan. 15, 2031	375		—
First mortgage bonds	6.25	Sept. 1, 2037	350		350
First mortgage bonds	6.50	Aug. 1, 2038	300		300
First mortgage bonds	4.75	Aug. 15, 2041	250		250
First mortgage bonds	3.60	Sept. 15, 2042	500		500
First mortgage bonds	3.95	March 15, 2043	250		250
First mortgage bonds	4.30	March 15, 2044	300		300
First mortgage bonds	3.55	June 15, 2046	250		250
First mortgage bonds	3.80	June 15, 2047	400		400
First mortgage bonds	4.10	June 15, 2048	350		350
First mortgage bonds (b)	4.05	Sept. 15, 2049	400		400
First mortgage bonds (b)	3.20	March 1, 2050	550		550
First mortgage bonds (a)	2.70	Jan. 15, 2051	375		—
Unamortized discount			(30)		(24)
Unamortized debt issuance cost			(46)		(41)
Current maturities			—		(400)
Total long-term debt			$	5,724	$	4,985

(a)2020 financing.

(b)2019 financing.

Maturities of long-term debt:


(Millions of Dollars)
2021	$	—
2022	300
2023	250
2024	—
2025	250

Deferred Financing Costs — Deferred financing costs of approximately $46 million and $41 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt as of Dec. 31, 2020 and 2019, respectively. PSCo is amortizing these financing costs over the remaining maturity periods of the related debt.

Capital Stock — PSCo has authorized the issuance of preferred stock.


Preferred Stock Authorized (Shares)	Par Value of Preferred Stock		Preferred Stock Outstanding (Shares) 2020 and 2019
10,000,000	$	0.01	—

Dividend Restrictions — PSCo’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.