Fair Value of Financial Assets and Liabilities (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Final Contractual Maturity Dates of Debt Securities in the Nuclear Decommissioning Fund by Asset Class |
Contractual maturity dates of debt securities in the nuclear decommissioning fund as of June 30, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Final Contractual Maturity | | (Millions of Dollars) | | Due in 1 Year or Less | | Due in 1 to 5 Years | | Due in 5 to 10 Years | | Due after 10 Years | | Total | | Debt securities | | $ | 14 | | | $ | 327 | | | $ | 258 | | | $ | 275 | | | $ | 874 | |
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| Gross Notional Amounts of Commodity Forwards, Options, and FTRs |
Gross notional amounts of commodity forwards, options and FTRs: | | | | | | | | | | | | | | | (Amounts in Millions) (a)(b) | | June 30, 2025 | | Dec. 31, 2024 | | Megawatt hours of electricity | | 47 | | | 31 | | | Million British thermal units of natural gas | | 47 | | | 57 | |
(a)Not reflective of net positions in the underlying commodities. (b)Notional amounts for options included on a gross basis but weighted for the probability of exercise.
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| Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income |
Impact of derivative activity: | | | | | | | | | | | | | | | | | Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: | | (Millions of Dollars) | | Accumulated Other Comprehensive Loss | | Regulatory Assets and Liabilities | | Three Months Ended June 30, 2025 | | | | | | Derivatives designated as cash flow hedges: | | | | Interest rate | | $ | 7 | | | $ | — | | | Total | | $ | 7 | | | $ | — | | | Other derivative instruments: | | | | | | Electric commodity | | $ | — | | | $ | (2) | | | | | | | | Total | | $ | — | | | $ | (2) | | | | | | | | Six Months Ended June 30, 2025 | | | | | | Derivatives designated as cash flow hedges: | | | | Interest rate | | $ | 5 | | | $ | — | | | Total | | $ | 5 | | | $ | — | | | Other derivative instruments: | | | | | | Electric commodity | | $ | — | | | $ | (5) | | | Natural gas commodity | | — | | | 1 | | | Total | | $ | — | | | $ | (4) | | | | | | | | Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | Other derivative instruments | | | | Electric commodity | | $ | — | | | $ | — | | | Natural gas commodity | | — | | | — | | | Total | | $ | — | | | $ | — | | | | | | | | Six Months Ended June 30, 2024 | | | | | | Derivatives designated as cash flow hedges: | | | | Interest rate | | $ | 16 | | | $ | — | | | Total | | $ | 16 | | | $ | — | | | Other derivative instruments | | | | | | Electric commodity | | $ | — | | | $ | 1 | | | Natural gas commodity | | $ | — | | | $ | 3 | | | Total | | $ | — | | | $ | 4 | |
. | | | | | | | | | | | | | | | | | | | | | (Millions of Dollars) | | | | Pre-Tax Losses Reclassified During the Period from Regulatory Assets and Liabilities | | Pre-Tax Gains (Losses) Recognized During the Period in Income | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | | | | Commodity trading | | | | $ | — | | | $ | 4 | | (a) | | Electric commodity | | | | 2 | | (b) | — | | | | | | | | | | | | Total | | | | $ | 2 | | | $ | 4 | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | | | | Commodity trading | | | | $ | — | | | $ | (8) | | (a) | | Electric commodity | | | | 8 | | (b) | — | | | | Natural gas commodity | | | | — | | | (4) | | (c)(d) | | Total | | | | $ | 8 | | | $ | (12) | | | | | | | | | | | | Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | Commodity trading | | | | $ | — | | | $ | (14) | | (a) | | Electric Commodity | | | | 2 | | (b) | — | | | | | | | | | | | | Total | | | | $ | 2 | | | $ | (14) | | | | | | | | | | | | Six Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | Commodity trading | | | | $ | — | | | $ | (13) | | (a) | | Electric commodity | | | | 6 | | (b) | — | | | | Natural gas commodity | | | | — | | | (5) | | (c)(d) | | Total | | | | $ | 6 | | | $ | (18) | | |
(a)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers. (b)Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value. (c)Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate. (d)Relates primarily to option premium amortization.
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| Carrying Amount and Fair Value of Long-term Debt |
As of June 30, 2025, other financial instruments for which the carrying amount did not equal fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Dec. 31, 2024 | | (Millions of Dollars) | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | Long-term debt, including current portion | | $ | 8,815 | | | $ | 7,854 | | | $ | 7,857 | | | $ | 6,755 | | | Long-term debt - related parties | | 294 | | | 182 | | | 166 | | | 99 | |
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| Cost and Fair Value of Nuclear Decommissioning Fund Investments |
Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | | | Fair Value | | (Millions of Dollars) | | Cost | | Level 1 | | Level 2 | | Level 3 | | NAV | | Total | Nuclear decommissioning fund (a) | | Cash equivalents | | $ | 56 | | | $ | 56 | | | $ | — | | | $ | — | | | $ | — | | | $ | 56 | | | Commingled funds | | 703 | | | — | | | — | | | — | | | 1,032 | | | 1,032 | | | Debt securities | | 879 | | | — | | | 864 | | | 10 | | | — | | | 874 | | | Equity securities | | 538 | | | 1,730 | | | 2 | | | — | | | — | | | 1,732 | | | Total | | $ | 2,176 | | | $ | 1,786 | | | $ | 866 | | | $ | 10 | | | $ | 1,032 | | | $ | 3,694 | |
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $55 million of other investments, including the rabbi trust. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Dec. 31, 2024 | | | | | Fair Value | | (Millions of Dollars) | | Cost | | Level 1 | | Level 2 | | Level 3 | | NAV | | Total | Nuclear decommissioning fund (a) | | Cash equivalents | | $ | 39 | | | $ | 39 | | | $ | — | | | $ | — | | | $ | — | | | $ | 39 | | | Commingled funds | | 703 | | | — | | | — | | | — | | | 1,025 | | | 1,025 | | | Debt securities | | 866 | | | — | | | 832 | | | 14 | | | — | | | 846 | | | Equity securities | | 522 | | | 1,583 | | | 1 | | | — | | | — | | | 1,584 | | | Total | | $ | 2,130 | | | $ | 1,622 | | | $ | 833 | | | $ | 14 | | | $ | 1,025 | | | $ | 3,494 | |
(a)Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $54 million of other investments, including the rabbi trust.
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| Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation |
Changes in Level 3 commodity derivatives: | | | | | | | | | | | | | | | | | Three Months Ended June 30 | | (Millions of Dollars) | | 2025 | | 2024 | | Balance at April 1 | | $ | 15 | | | $ | 39 | | Purchases (a) | | 62 | | | 72 | | Settlements (a) | | (13) | | | (27) | | | Net transactions recorded during the period: | | | | | (Losses) gains recognized in earnings (b) | | (6) | | | 3 | | Net gains recognized as regulatory assets and liabilities (a) | | — | | | 6 | | | Balance at June 30 | | $ | 58 | | | $ | 93 | | | | | | | | | Six Months Ended June 30 | | (Millions of Dollars) | | 2025 | | 2024 | | Balance at Jan. 1 | | $ | 32 | | | $ | 51 | | Purchases (a) | | 62 | | | 72 | | Settlements (a) | | (22) | | | (42) | | | Net transactions recorded during the period: | | | | | (Losses) gains recognized in earnings (b) | | (8) | | | 3 | | Net (losses) gains recognized as regulatory assets and liabilities (a) | | (6) | | | 9 | | | Balance at June 30 | | $ | 58 | | | $ | 93 | |
(a)Relates primarily to FTR instruments administered by MISO. (b)Relates to commodity trading and is subject to substantial offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.
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| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
Derivative assets and liabilities measured at fair value on a recurring basis were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Dec. 31, 2024 | | | Fair Value | | Fair Value Total | | Netting (a) | | Total | | Fair Value | | Fair Value Total | | Netting (a) | | Total | | (Millions of Dollars) | | Level 1 | | Level 2 | | Level 3 | | | | | Level 1 | | Level 2 | | Level 3 | | | | | Current derivative assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity trading | | $ | 5 | | | $ | 18 | | | $ | 7 | | | $ | 30 | | | $ | (20) | | | $ | 10 | | | $ | 5 | | | $ | 20 | | | $ | 8 | | | $ | 33 | | | $ | (22) | | | $ | 11 | | Electric commodity | | — | | | — | | | 58 | | | 58 | | | (2) | | | 56 | | | — | | | — | | | 23 | | | 23 | | | (2) | | | 21 | | | Natural gas commodity | | — | | | 3 | | | — | | | 3 | | | — | | | 3 | | | — | | | 4 | | | — | | | 4 | | | — | | | 4 | | | Total current derivative assets | | $ | 5 | | | $ | 21 | | | $ | 65 | | | $ | 91 | | | $ | (22) | | | $ | 69 | | | $ | 5 | | | $ | 24 | | | $ | 31 | | | $ | 60 | | | $ | (24) | | | $ | 36 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Noncurrent derivative assets | | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity trading | | $ | 4 | | | $ | 27 | | | $ | 37 | | | $ | 68 | | | $ | (15) | | | $ | 53 | | | $ | 3 | | | $ | 33 | | | $ | 47 | | | $ | 83 | | | $ | (16) | | | $ | 67 | | | Total noncurrent derivative assets | | $ | 4 | | | $ | 27 | | | $ | 37 | | | $ | 68 | | | $ | (15) | | | $ | 53 | | | $ | 3 | | | $ | 33 | | | $ | 47 | | | $ | 83 | | | $ | (16) | | | $ | 67 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Dec. 31, 2024 | | | Fair Value | | Fair Value Total | | Netting (a) | | Total | | Fair Value | | Fair Value Total | | Netting (a) | | Total | | (Millions of Dollars) | | Level 1 | | Level 2 | | Level 3 | | | | | Level 1 | | Level 2 | | Level 3 | | | | | Current derivative liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity trading | | $ | 6 | | | $ | 28 | | | $ | 6 | | | $ | 40 | | | $ | (20) | | | $ | 20 | | | $ | 6 | | | $ | 35 | | | $ | 5 | | | $ | 46 | | | $ | (22) | | | $ | 24 | | | Electric commodity | | — | | | — | | | 2 | | | 2 | | | (2) | | | — | | | — | | | — | | | 1 | | | 1 | | | (1) | | | — | | | Natural gas commodity | | — | | | 1 | | | — | | | 1 | | | — | | | 1 | | | — | | | 1 | | | — | | | 1 | | | — | | | 1 | | | Total current derivative liabilities | | $ | 6 | | | $ | 29 | | | $ | 8 | | | $ | 43 | | | $ | (22) | | | 21 | | | $ | 6 | | | $ | 36 | | | $ | 6 | | | $ | 48 | | | $ | (23) | | | 25 | | PPAs (b) | | | | | | | | | | | | 6 | | | | | | | | | | | | | 6 | | | Current derivative instruments | | | | | | | | | | | | $ | 27 | | | | | | | | | | | | | $ | 31 | | | Noncurrent derivative liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | Other derivative instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity trading | | $ | 9 | | | $ | 27 | | | $ | 36 | | | $ | 72 | | | $ | (18) | | | $ | 54 | | | $ | 9 | | | $ | 30 | | | $ | 40 | | | $ | 79 | | | $ | (18) | | | $ | 61 | | | Total noncurrent derivative liabilities | | $ | 9 | | | $ | 27 | | | $ | 36 | | | $ | 72 | | | $ | (18) | | | 54 | | | $ | 9 | | | $ | 30 | | | $ | 40 | | | $ | 79 | | | $ | (18) | | | 61 | | PPAs (b) | | | | | | | | | | | | 13 | | | | | | | | | | | | | 16 | | | Noncurrent derivative instruments | | | | | | | | | | | | $ | 67 | | | | | | | | | | | | | $ | 77 | |
(a)NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At June 30, 2025 and Dec. 31, 2024, derivative assets and liabilities include no obligations to return cash collateral. At June 30, 2025 and Dec. 31, 2024 derivative assets and liabilities include rights to reclaim cash collateral of $3 million and $1 million, respectively. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b)NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.
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