v3.25.2
Borrowings and Other Financing Instruments
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Borrowings and Other Financing Instruments
Short-Term Borrowings
NSP-Minnesota 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 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 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.
Money pool borrowings:
(Amounts in Millions, Except Interest Rates)Three Months Ended June 30, 2025Year Ended Dec. 31, 2024
Borrowing limit$250 $250 
Amount outstanding at period end— — 
Average amount outstanding58 10 
Maximum amount outstanding250 139 
Weighted average interest rate, computed on a daily basis4.33 %4.82 %
Weighted average interest rate at period endN/AN/A
Commercial Paper — Commercial paper outstanding:
(Amounts in Millions, Except Interest Rates)Three Months Ended June 30, 2025Year Ended Dec. 31, 2024
Borrowing limit$800$700 
Amount outstanding at period end—195 
Average amount outstanding1454 
Maximum amount outstanding85400 
Weighted average interest rate, computed on a daily basis4.66 %5.39 %
Weighted average interest rate at period endN/A4.63 
Letters of Credit — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There were $12 million of letters of credit outstanding under the credit facility at both June 30, 2025 and Dec. 31, 2024. Amounts approximate their fair value and are subject to fees.
Revolving Credit Facility — In order to issue its commercial paper, NSP-Minnesota must have a revolving credit facility equal to or greater than the commercial paper borrowing limit and cannot issue commercial paper 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.
In May 2025, NSP-Minnesota entered into an amended five-year credit agreement with a syndicate of banks, with substantially the same terms and conditions as the prior credit agreements. The borrowing limit for NSP-Minnesota was increased from $700 million to $800 million, and the maturity was extended from September 2027 to December 2029.
NSP-Minnesota 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, 2025, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars):
Credit Facility (a)
Drawn (b)
Available
$800 $12 $788 
(a)Expires in December 2029.
(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. NSP-Minnesota had no direct advances on the credit facility outstanding at June 30, 2025 and Dec. 31, 2024.
Bilateral Credit Agreement — In April 2025, NSP-Minnesota’s uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit.
As of June 30, 2025, NSP-Minnesota had $72 million of outstanding letters of credit under the $75 million bilateral credit agreement.
Long-Term Borrowings
During the six months ended June 30, 2025, NSP-Minnesota issued $600 million of 5.05% First Mortgage Bonds due May 15, 2035 and $500 million of 5.65% First Mortgage Bonds due May 15, 2055.
Xcel Energy Inc.’s Purchase of NSP-Minnesota’s First Mortgage Bonds — During the six months ended June 30, 2025, Xcel Energy Inc. purchased $128 million in aggregate principal amounts of NSP-Minnesota’s 2.90% First Mortgage Bonds Series due March 1, 2050, 2.60% First Mortgage Bonds Series due June 1, 2051 and 3.20% First Mortgage Bonds Series due April 1, 2052, for $81 million. Bonds purchased by Xcel Energy Inc. are reported in long-term debt - related parties on NSP-Minnesota’s consolidated balance sheet, and interest expense related to the repurchased bonds was immaterial for the six months ended June 30, 2025.