psco-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ___________

Commission File Number: 001-03280


Public Service Company of Colorado
(Exact Name of Registrant as Specified in its Charter)

Colorado

84-0296600

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

3500 Blake Street,

Denver,

Colorado

80205

(Address of Principal Executive Offices)

(Zip Code)


(303)			571-7511
(Registrant’s Telephone Number, Including Area Code)


N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Outstanding at July 30, 2026
Common Stock, $0.01 par value						100 shares

Public Service Company of Colorado meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H(2) to such Form 10-Q.

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION
Item 1 —	Financial Statements (unaudited)	4
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Cash Flows	6
	Consolidated Balance Sheets	7
	Consolidated Statements of Common Stockholder’s Equity	8
	Notes to Consolidated Financial Statements	9
Item 2 —	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 4 —	Controls and Procedures	20

PART II — OTHER INFORMATION
Item 1 —	Legal Proceedings	20
Item 1A —	Risk Factors	20
Item 5 —	Other Information	20
Item 6 —	Exhibits	20

SIGNATURES		21

This Form 10-Q is filed by PSCo, a Colorado corporation. PSCo is a wholly owned subsidiary of Xcel Energy Inc. Additional information on Xcel Energy is available in various filings with the SEC. This report should be read in its entirety.

Definitions of Abbreviations


Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former)

NSP-Minnesota			Northern States Power Company, a Minnesota corporation
NSP-Wisconsin			Northern States Power Company, a Wisconsin corporation
PSCo			Public Service Company of Colorado
SPS			Southwestern Public Service Company
Utility subsidiaries			NSP-Minnesota, NSP-Wisconsin, PSCo and SPS
Xcel Energy			Xcel Energy Inc. and its subsidiaries


Federal and State Regulatory Agencies
CPUC			Colorado Public Utilities Commission

EPA			United States Environmental Protection Agency
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission

SEC			Securities and Exchange Commission


Other


AFUDC			Allowance for funds used during construction
ASU			Accounting standards update

C&I			Commercial and Industrial
CCR			Coal combustion residuals
CCR Rule			Final rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as a nonhazardous waste

CEO			Chief executive officer
CERCLA			Comprehensive Environmental Response, Compensation, and Liability Act
CFO			Chief financial officer


CPCN			Certificate of public convenience and necessity


DSM			Demand side management
ETR			Effective Tax Rate

GAAP			United States generally accepted accounting principles

GHG			Greenhouse gas
IPP			Independent power producing entity

MGP			Manufactured gas plant


O&M			Operating and maintenance
PFAS			Per- and Polyfluoroalkyl Substances

PPA			Power purchase agreement

PTC			Production tax credit
ROE			Return on equity
ROU			Right-of-use

UCA			Colorado Office of the Utility Consumer Advocate
VIE			Variable interest entity


Measurements

MW			Megawatts
MWh			Megawatt hours


Forward-Looking Statements

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases or refunds to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of interest rate changes, increased credit exposure and legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in PSCo’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025 and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety; successful long-term operational planning; risks associated with wildfires; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; reputational impacts of actions by employees, directors, and third-parties; our ability to recover costs; risks associated with the growth in large load customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of PSCo to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in millions)


	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
Operating revenues
Electric	$	982	$	958	$	1,960	$	1,896
Natural gas	225		260		755		887
Other	8		8		19		20
Total operating revenues	1,215		1,226		2,734		2,803

Operating expenses
Electric fuel and purchased power	264		309		594		629
Cost of natural gas sold and transported	47		80		275		344
Cost of sales — other	1		1		3		3
Operating and maintenance expenses	236		238		467		480
Demand side management expenses	56		50		116		112
Depreciation and amortization	303		270		595		543
Taxes (other than income taxes)	73		73		145		141
Marshall Wildfire litigation	3		—		(19)		—
Total operating expenses	983		1,021		2,176		2,252

Operating income	232		205		558		551

Other income, net	11		10		16		16
Allowance for funds used during construction — equity	60		30		111		52

Interest charges and financing costs
Interest charges and other financing costs	137		102		264		201
Allowance for funds used during construction — debt	(26)		(13)		(47)		(22)
Total interest charges and financing costs	111		89		217		179

Income before income taxes	192		156		468		440
Income tax (benefit) expense	(7)		—		7		26
Net income	$	199	$	156	$	461	$	414

See Notes to Consolidated Financial Statements

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PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(amounts in millions)


	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
Net income	$	199	$	156	$	461	$	414
Other comprehensive income


Derivative instruments:
Reclassification of losses to net income, net of tax	1		1		1		1

Total other comprehensive income	1		1		1		1
Total comprehensive income	$	200	$	157	$	462	$	415

See Notes to Consolidated Financial Statements

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PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in millions)


	Six Months Ended June 30
	2026		2025
Operating activities
Net income	$	461	$	414
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	597		544
Deferred income taxes	39		75

Allowance for equity funds used during construction	(111)		(52)
Provision for bad debts	9		13


Changes in operating assets and liabilities:
Accounts receivable	50		81
Accrued unbilled revenues	35		63
Inventories	(10)		(37)
Other current assets	424		(30)
Accounts payable	(59)		(20)
Net regulatory assets and liabilities	(29)		(34)
Other current liabilities	(103)		(119)
Pension and other employee benefit obligations	(4)		(6)
Other, net	—		(7)
Net cash provided by operating activities	1,299		885

Investing activities
Utility capital/construction expenditures	(2,742)		(1,993)
Investments in utility money pool arrangement	(56)		(831)
Repayments from utility money pool arrangement	56		831
Net cash used in investing activities	(2,742)		(1,993)

Financing activities
Repayments of short-term borrowings, net	(260)		(85)
Borrowings under utility money pool arrangement	383		610
Repayments under utility money pool arrangement	(410)		(651)
Proceeds from issuance of long-term debt	1,288		988
Repayments of long-term debt	—		(250)
Capital contributions from parent	891		739
Dividends paid to parent	(219)		(217)

Net cash provided by financing activities	1,673		1,134

Net change in cash, cash equivalents and restricted cash	230		26
Cash, cash equivalents and restricted cash at beginning of period	16		26
Cash, cash equivalents and restricted cash at end of period	$	246	$	52

Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(196)	$	(162)


Supplemental disclosure of non-cash investing and financing transactions:
Accrued property, plant and equipment additions	$	636	$	577
Inventory transfers to property, plant and equipment	21		57
Operating lease right-of-use assets	113		140
Allowance for equity funds used during construction	111		52

See Notes to Consolidated Financial Statements

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PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in millions, except share and per share data)


	June 30, 2026		Dec. 31, 2025
Assets
Current assets
Cash and cash equivalents	$	246	$	16
Accounts receivable, net	423		480
Accounts receivable from affiliates	7		—

Accrued unbilled revenues	321		356
Inventories	263		277
Regulatory assets	188		170

Prepayments and other	118		520
Total current assets	1,566		1,819

Property, plant and equipment, net	30,160		27,822

Other assets
Regulatory assets	1,693		1,603

Operating lease right-of-use assets	382		389
Other	310		207
Total other assets	2,385		2,199
Total assets	$	34,111	$	31,840

Liabilities and Equity
Current liabilities

Borrowings under utility money pool arrangement	$	—	$	27
Short-term debt	—		260
Accounts payable	960		1,034
Accounts payable to affiliates	147		95
Regulatory liabilities	246		178
Taxes accrued	153		263
Accrued interest	115		101
Dividends payable to parent	133		75

Operating lease liabilities	60		65
Other	168		161
Total current liabilities	1,982		2,259

Deferred credits and other liabilities
Deferred income taxes	2,182		2,191

Regulatory liabilities	2,809		2,719
Asset retirement obligations	489		473

Customer advances	74		82
Pension and employee benefit obligations	62		66
Operating lease liabilities	323		330
Other	230		138
Total deferred credits and other liabilities	6,169		5,999

Commitments and contingencies
Capitalization
Long-term debt	11,669		10,376
Common stock — 100 shares authorized of $0.01 par value; 100 shares outstanding at June 30, 2026 and Dec. 31, 2025, respectively	—		—
Additional paid in capital	11,309		10,409
Retained earnings	2,999		2,815
Accumulated other comprehensive loss	(17)		(18)
Total common stockholder's equity	14,291		13,206
Total liabilities and equity	$	34,111	$	31,840

See Notes to Consolidated Financial Statements

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PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER’S EQUITY (UNAUDITED)

(amounts in millions, except share data)


	Common Stock Issued					Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Three Months Ended June 30, 2026 and 2025
Balance at March 31, 2025	100	$	—	$	8,376	$	2,630	$	(19)	$	10,987
Net income						156				156
Other comprehensive income								1		1
Dividends declared to parent						(120)				(120)
Contribution of capital by parent				636						636
Balance at June 30, 2025	100	$	—	$	9,012	$	2,666	$	(18)	$	11,660

Balance at March 31, 2026	100	$	—	$	10,609	$	2,933	$	(18)	$	13,524
Net income						199				199
Other comprehensive income								1		1
Dividends declared to parent						(133)				(133)
Contribution of capital by parent				700						700
Balance at June 30, 2026	100	$	—	$	11,309	$	2,999	$	(17)	$	14,291

	Common Stock Issued					Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Stockholder's Equity
	Shares	Par Value		Additional Paid In Capital
Six Months Ended June 30, 2026 and 2025
Balance at Dec. 31, 2024	100	$	—	$	8,256	$	2,498	$	(19)	$	10,735
Net income						414				414
Other comprehensive income								1		1
Dividends declared to parent						(246)				(246)
Contribution of capital by parent				756						756
Balance at June 30, 2025	100	$	—	$	9,012	$	2,666	$	(18)	$	11,660

Balance at Dec. 31, 2025	100	$	—	$	10,409	$	2,815	$	(18)	$	13,206
Net income						461				461
Other comprehensive income								1		1
Dividends declared to parent						(277)				(277)
Contribution of capital by parent				900						900
Balance at June 30, 2026	100	$	—	$	11,309	$	2,999	$	(17)	$	14,291

See Notes to Consolidated Financial Statements

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PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES

Notes to Consolidated Financial Statements (UNAUDITED)

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of PSCo as of June 30, 2026 and Dec. 31, 2025; the results of PSCo’s operations, including the components of net income, comprehensive income, and changes in stockholder’s equity for the three and six months ended June 30, 2026 and 2025; and PSCo’s cash flows for the six months ended June 30, 2026 and 2025.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2026, up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2025 balance sheet information has been derived from the audited 2025 consolidated financial statements included in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2025.

Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2025, filed with the SEC on Feb. 25, 2026. Due to the seasonality of PSCo’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.


1. Summary of Significant Accounting Policies

The significant accounting policies set forth in Note 1 to the consolidated financial statements in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2025 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.


2. Accounting Pronouncements

Recently Issued

Disaggregation of Income Statement Expenses — In November 2024, the FASB issued ASU 2024-03 – Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of additional detail for certain categories of income statement expenses. The ASU is effective for annual reporting periods beginning after Dec. 15, 2026 and interim reporting periods beginning after Dec. 15, 2027. PSCo is evaluating the impact of the new disclosure guidance.

Environmental Credits — In May 2026, the FASB issued ASU 2026-02 – Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes accounting and disclosure requirements for certain environmental instruments, including renewable energy credits and emissions allowances, as well as for compliance obligations that will be satisfied with such credits. The ASU is effective for annual and interim periods beginning after Dec. 15, 2027. PSCo is evaluating the impact of the new accounting and disclosure guidance.


3. Selected Balance Sheet Data


(Millions of Dollars)	June 30, 2026		Dec. 31, 2025
Accounts receivable, net
Accounts receivable	$	457	$	518
Less allowance for bad debts	(34)		(38)
Accounts receivable, net	$	423	$	480


(Millions of Dollars)	June 30, 2026		Dec. 31, 2025
Inventories
Materials and supplies	$	168	$	136
Fuel	64		64
Natural gas	31		77
Total inventories	$	263	$	277


(Millions of Dollars)	June 30, 2026		Dec. 31, 2025
Property, plant and equipment, net
Electric plant	$	21,589	$	20,451
Natural gas plant	7,409		7,222
Common and other property	1,734		1,704
Plant to be retired (a)	894		929
Construction work in progress	5,854		4,367
Total property, plant and equipment	37,480		34,673
Less accumulated depreciation	(7,320)		(6,851)
Property, plant and equipment, net	$	30,160	$	27,822

(a)Amounts include Comanche Unit 3, Craig Unit 2 and Hayden Units 1 and 2. Amounts are presented net of accumulated depreciation.


4. 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:


(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2026			Year Ended Dec. 31, 2025
Borrowing limit	$	250		$	250
Amount outstanding at period end	—			27
Average amount outstanding	2			37
Maximum amount outstanding	50			250
Weighted average interest rate, computed on a daily basis	3.65		%	4.31		%
Weighted average interest rate at period end	N/A			3.88

Table of Contents

Commercial Paper — Commercial paper outstanding:


(Amounts in Millions, Except Interest Rates)	Three Months Ended June 30, 2026			Year Ended Dec. 31, 2025
Borrowing limit	$	1,200		$	1,200
Amount outstanding at period end	—			260
Average amount outstanding	2			106
Maximum amount outstanding	40			725
Weighted average interest rate, computed on a daily basis	3.89		%	4.25		%
Weighted average interest rate at period end	N/A			3.89

Revolving Credit Facility — In order to issue its commercial paper, PSCo must have a revolving credit facility equal to or greater than the amount of its 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.

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, 2026, PSCo had the following committed revolving credit facility available (in millions of dollars):


Credit Facility (a)		Drawn (b)		Available
$	1,200	$	48	$	1,152

(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. PSCo had no direct advances on the credit facility outstanding at June 30, 2026 and Dec. 31, 2025.

Letters of Credit — PSCo uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both June 30, 2026 and Dec. 31, 2025, there were $48 million of letters of credit outstanding under the credit facility. Amounts approximate their fair value and are subject to fees.

Additionally, in March 2026, PSCo entered into an uncommitted continuing letter of credit agreement with an overall limit of $50 million to provide additional letter of credit capacity outside of the revolving credit facility. As of June 30, 2026, $1 million of letters of credit were outstanding under this continuing letter of credit agreement.

Long-Term Borrowings

During the six months ended June 30, 2026, PSCo issued $700 million in aggregate principal amount of 4.15% First Mortgage Bonds, Series No. 45 due March 13, 2029 and $600 million in aggregate principal amount of 5.05% First Mortgage Bonds, Series No. 46 due June 15, 2036.


5. Revenues

Revenue is classified by the type of goods/services rendered and market/customer type. PSCo’s operating revenues consisted of the following:


	Three Months Ended June 30, 2026
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	288	$	116	$	1	$	405
C&I	432		55		7		494
Other	11		—		—		11
Total retail	731		171		8		910
Wholesale	20		—		—		20
Transmission	29		—		—		29
Other	17		40		—		57
Total revenue from contracts with customers	797		211		8		1,016
Alternative revenue and other	185		14		—		199
Total revenues	$	982	$	225	$	8	$	1,215


	Three Months Ended June 30, 2025
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	299	$	145	$	1	$	445
C&I	448		67		7		522
Other	13		—		—		13
Total retail	760		212		8		980
Wholesale	49		—		—		49
Transmission	26		—		—		26
Other	16		37		—		53
Total revenue from contracts with customers	851		249		8		1,108
Alternative revenue and other	107		11		—		118
Total revenues	$	958	$	260	$	8	$	1,226


	Six Months Ended June 30, 2026
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	587	$	448	$	1	$	1,036
C&I	849		189		18		1,056
Other	23		—		—		23
Total retail	1,459		637		19		2,115
Wholesale	57		—		—		57
Transmission	60		—		—		60
Other	34		87		—		121
Total revenue from contracts with customers	1,610		724		19		2,353
Alternative revenue and other	350		31		—		381
Total revenues	$	1,960	$	755	$	19	$	2,734

Table of Contents


	Six Months Ended June 30, 2025
(Millions of Dollars)	Electric		Natural Gas		All Other		Total
Major revenue types
Revenue from contracts with customers:
Residential	$	627	$	544	$	1	$	1,172
C&I	835		224		19		1,078
Other	25		—		—		25
Total retail	1,487		768		20		2,275
Wholesale	110		—		—		110
Transmission	56		—		—		56
Other	29		85		—		114
Total revenue from contracts with customers	1,682		853		20		2,555
Alternative revenue and other	214		34		—		248
Total revenues	$	1,896	$	887	$	20	$	2,803


6. Income Taxes

Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense.

Effective income tax reconciliation:


	Six Months Ended June 30
(Millions of Dollars)	2026		2025
Income before income taxes (domestic)	$	468	$	440

Federal statutory rate impact	98		92
(Decreases) increases in tax from:
Tax credits
PTCs (a)	(74)		(53)
Other	(2)		(4)
Regulatory adjustments (b)
AFUDC equity	(18)		(12)
Plant related excess deferred taxes	(15)		(11)
Other	2		2
State income taxes, net of federal tax effect (c)	15		12
Other	1		—
Income tax expense	$	7	$	26


	Six Months Ended June 30
	2026		2025
Federal statutory rate	21.0	%	21.0	%
(Decreases) increases in tax from:
Tax credits
PTCs (a)	(15.9)		(12.0)
Other	(0.5)		(0.9)
Regulatory adjustments (b)
AFUDC equity	(3.8)		(2.8)
Plant related excess deferred taxes	(3.2)		(2.6)
Other	0.5		0.4
State income taxes, net of federal tax effect (c)	3.3		2.7
Other	0.1		0.1
Effective income tax rate	1.5	%	5.9	%

(a)Wind and Solar PTCs (net of transfer discounts) are generally credited to customers (reduction to revenue) and do not materially impact earnings.

(b)Regulatory adjustments primarily relate to the credit of plant related excess deferred taxes to customers for tax rate changes as well as the capitalization of AFUDC equity for book purposes only. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions.

(c)State and local income taxes are primarily Colorado state taxes.


7. Fair Value of Financial Assets and Liabilities

Fair Value Measurements

Accounting guidance for fair value measurements and disclosures provides a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value.

•Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are actively traded instruments with observable actual trading prices.

•Level 2 — Pricing inputs are other than actual trading prices in active markets but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.

•Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 include those valued with models requiring significant judgment or estimation.

Specific valuation methods include:

Interest rate derivatives — Fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts.

Commodity derivatives — Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contracts relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification.

Derivative Activities and Fair Value Measurements

PSCo enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices.

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Interest Rate Derivatives — PSCo enters into contracts that effectively fix the interest rate on a specified principal amount of a hypothetical future debt issuance. These financial swaps net settle based on changes in a specified benchmark interest rate, acting as a hedge of changes in market interest rates that will impact specified anticipated debt issuances. These derivative instruments are designated as cash flow hedges for accounting purposes, with changes in fair value prior to occurrence of the hedged transactions recorded as other comprehensive income.

As of June 30, 2026, accumulated other comprehensive loss related to interest rate derivatives included $1 million of net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of June 30, 2026, PSCo had no unsettled interest rate derivatives.

Wholesale and Commodity Trading — PSCo conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy, energy-related instruments and natural gas-related instruments, including derivatives. PSCo is allowed to conduct these activities within guidelines and limitations as approved by its risk management committee, comprised of management personnel not directly involved in the activities governed by this policy.

Results of derivative instrument transactions entered into for trading purposes are presented in the consolidated statements of income as electric revenues, net of any sharing with customers. These activities are not intended to mitigate commodity price risk associated with regulated electric and natural gas operations. Sharing of these margins is determined through state regulatory proceedings as well as the operation of the FERC-approved joint operating agreement.

Commodity Derivatives — PSCo enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale and vehicle fuel.

When PSCo enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers, the instruments are not typically designated as qualifying hedging transactions. The classification of unrealized losses or gains on these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms.

As of June 30, 2026, PSCo had no commodity contracts designated as cash flow hedges.

Gross notional amounts of commodity forwards and options:

(Amounts in Millions) (a)(b)

June 30, 2026

Dec. 31, 2025

MWh of electricity

(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.

Consideration of Credit Risk and Concentrations — PSCo continuously monitors the creditworthiness of counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the consolidated balance sheets.

PSCo often has significant concentrations of credit risk with particular entities or industries in its wholesale, trading and non-trading commodity activities.

As of June 30, 2026, one of PSCo’s eight most significant counterparties for these activities, comprising $1 million, or 3%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings.

Seven of the eight most significant counterparties, comprising $23 million, or 68%, of this credit exposure, were not rated by these external ratings agencies, but based on PSCo’s internal analysis, had credit quality consistent with investment grade.

Seven of these significant counterparties are municipal or cooperative electric entities or other utilities.

Credit Related Contingent Features — Contract provisions for derivative instruments that PSCo enters into, including those accounted for as normal purchase and normal sale contracts and therefore not reflected on the consolidated balance sheets, may require the posting of collateral or settlement of the contracts for various reasons, including if PSCo’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies.

As of June 30, 2026 and Dec. 31, 2025, there were no derivative liabilities with such underlying contract provisions.

Certain contracts also contain cross default provisions that may require the posting of collateral or settlement of the contracts if there was a failure under other financing arrangements related to payment terms or other covenants.

There were no derivative instruments in a liability position with such underlying contract provisions as of June 30, 2026 and $7 million of such instruments as of Dec. 31, 2025.

Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that PSCo’s ability to fulfill its contractual obligations is reasonably expected to be impaired. PSCo had no collateral posted related to adequate assurance clauses in derivative contracts as of June 30, 2026 and Dec. 31, 2025.

Recurring Derivative Fair Value Measurements

Interest rate cash flow hedge gains and losses reclassified into interest expense from accumulated other comprehensive loss were immaterial for the three and six months ended June 30, 2026 and 2025.

Changes in the fair value of natural gas commodity derivatives recognized as regulatory assets and liabilities included immaterial net gains and losses for the three months ended June 30, 2026 and 2025, and $7 million and immaterial net gains for the six months ended June 30, 2026 and 2025.

The classification as a regulatory asset or liability is based on commission

approved regulatory recovery mechanisms.

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Other impacts of derivative activity:


(Millions of Dollars)	Pre-Tax Gains (Losses) Recognized During the Period in Income
Three Months Ended June 30, 2026



Other derivative instruments:
Commodity trading	$	2	(a)

Total	$	2

Six Months Ended June 30, 2026



Other derivative instruments:
Commodity trading	$	5	(a)
Natural gas commodity	(7)		(b)(c)
Total	$	(2)

Three Months Ended June 30, 2025



Other derivative instruments:
Commodity trading	$	2	(a)

Total	$	2

Six Months Ended June 30, 2025



Other derivative instruments:
Commodity trading	$	2	(a)
Natural gas commodity	(9)		(b)(c)
Total	$	(7)

(a)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.

(b)Amounts are primarily recorded to cost of natural gas sold and transported. Amounts are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.

(c)Relates primarily to option premium amortization.

PSCo had no derivative instruments designated as fair value hedges during the six months ended June 30, 2026 and 2025.

Derivative assets and liabilities measured at fair value on a recurring basis were as follows:


	June 30, 2026												Dec. 31, 2025
	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	$	1	$	1	$	2	$	4	$	(4)	$	—	$	—	$	6	$	—	$	6	$	(6)	$	—
Natural gas commodity	—		—		—		—		—		—		—		7		—		7		—		7
Total current derivative assets (b)	$	1	$	1	$	2	$	4	$	(4)	$	—	$	—	$	13	$	—	$	13	$	(6)	$	7


	June 30, 2026												Dec. 31, 2025
	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	$	—	$	3	$	3	$	6	$	(5)	$	1	$	—	$	7	$	—	$	7	$	(6)	$	1
Natural gas commodity	—		—		—		—		—		—		—		7		—		7		—		7
Total current derivative liabilities (b)	$	—	$	3	$	3	$	6	$	(5)	$	1	$	—	$	14	$	—	$	14	$	(6)	$	8

(a)PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At June 30, 2026 and Dec. 31, 2025, derivative assets and liabilities include no obligations to return cash collateral. At both June 30, 2026 and Dec. 31, 2025, derivative assets and liabilities include immaterial rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

(b)Current derivative assets are included in prepayments and other as of June 30, 2026 and Dec. 31, 2025. Total current derivative liabilities are included in other current liabilities as of June 30, 2026 and Dec. 31, 2025.

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Fair Value of Long-Term Debt

Other financial instruments for which the carrying amount did not equal fair value:


	June 30, 2026				Dec. 31, 2025
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	11,669	$	10,649	$	10,376	$	9,452

Fair value of PSCo’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of June 30, 2026 and Dec. 31, 2025, and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.


8. Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost (Credit)


	Three Months Ended June 30
	2026		2025		2026		2025
(Millions of Dollars)	Pension Benefits				Postretirement Health Care Benefits
Service cost	$	5	$	5	$	—	$	—
Interest cost (a)	15		15		5		5
Expected return on plan assets (a)	(19)		(20)		(5)		(5)

Amortization of net loss (a)	3		2		1		1

Net periodic benefit cost	4		2		1		1
Effects of regulation	(3)		(1)		—		—
Net benefit cost recognized for financial reporting	$	1	$	1	$	1	$	1

	Six Months Ended June 30
	2026		2025		2026		2025
(Millions of Dollars)	Pension Benefits				Postretirement Health Care Benefits
Service cost	$	10	$	10	$	—	$	—
Interest cost (a)	29		30		9		10
Expected return on plan assets (a)	(37)		(40)		(9)		(9)

Amortization of net loss (a)	6		3		2		1

Net periodic benefit cost	8		3		2		2
Effects of regulation	(6)		(2)		—		—
Net benefit cost recognized for financial reporting	$	2	$	1	$	2	$	2

(a)The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the consolidated statements of income or capitalized on the consolidated balance sheets as a regulatory asset.

In January 2026, contributions totaling $75 million were made across Xcel Energy’s pension plans, of which $3 million was attributable to PSCo. Xcel Energy does not expect additional pension contributions during 2026.


9. Commitments and Contingencies

Legal

PSCo is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories.

In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on PSCo’s consolidated financial statements. Legal fees are generally expensed as incurred.

Marshall Wildfire Litigation

In December 2021, a wildfire occurred in Boulder County, Colorado (Marshall Fire). According to a 2023 report of the Boulder County Sheriff, on Dec. 30, 2021, a fire ignited on a residential property in Boulder, Colorado for reasons unrelated to PSCo’s power lines. Also according to the report, approximately one hour and 20 minutes after the first ignition, a second fire ignited just south of the Marshall Mesa Trailhead in unincorporated Boulder County, Colorado, approximately 80 to 110 feet away from PSCo’s power lines in the area.

PSCo received complaints alleging that PSCo’s equipment ignited the Marshall Fire and asserted various causes of action under Colorado law. In addition to asserting claims against PSCo and certain of its affiliates, various plaintiffs asserted claims against certain telecommunications companies.

In September 2025, Xcel Energy and other defendants reached settlement agreements in principle that resolved all claims and required PSCo to make settlement payments of $640 million. PSCo did not admit any fault, wrongdoing or negligence in connection with these settlement agreements. As of July 2026, settlements have been executed with all plaintiffs and subrogation insurers.

As a result of settlements as well as legal and other costs of the matter, PSCo recognized charges to earnings of $298 million in the year ended Dec. 31, 2025, after consideration of total costs expected to be reimbursed by insurance. In 2026, PSCo increased its estimated amount recoverable from insurance, contributing to a net $19 million credit to earnings for the six months ended June 30, 2026.

Rate Matters

PSCo is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the consolidated financial statements.

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Environmental

New and changing federal and state environmental mandates can create financial liabilities for PSCo, which are normally recovered through the regulated rate process.

Site Remediation

Various federal and state environmental laws impose liability where hazardous substances or other regulated materials have been released to the environment. PSCo may sometimes pay all or a portion of the cost to remediate sites where past activities of their predecessors or other parties have caused environmental contamination.

Environmental contingencies could arise from various situations, including sites of former MGPs; and third-party sites, such as landfills, for which PSCo is alleged to have sent wastes to that site.

MGP, Landfill and Disposal Sites

PSCo is investigating, remediating or performing post-closure actions at two historical MGP, landfill or other disposal sites across its service territory, excluding sites that are being addressed under current coal ash regulations (see below).

PSCo has approximately $5 million of remaining liabilities for resolution of these issues; however, the final outcome and timing are unknown. In addition, there may be regulatory recovery, insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

Water and Waste

Coal Ash Regulation — PSCo is subject to the CCR Rule, which imposes requirements for handling, storage, treatment and disposal of coal ash and other solid waste.

In May 2024, final amendments to the CCR Rule were published, widening its scope to include legacy CCR surface impoundments at inactive facilities and previously exempt areas where CCR was placed directly on land at CCR-regulated facilities, including areas of beneficial use.

As a requirement of the CCR Rule, utilities must complete facility evaluations and groundwater sampling around their subject landfills, surface impoundments and certain other areas where coal ash was placed on land.

If certain impacts to groundwater are detected, utilities are required to perform additional groundwater investigations and/or perform corrective actions.

PSCo continues to perform site investigation activities related to the CCR Rule, which may result in updates to estimated costs as well as identification of additional required corrective actions.

In February 2026, the EPA issued a final rule amending the CCR Legacy rule. The ruling extends deadlines for various regulatory actions and clarifies previous information regarding implementation of the rule. PSCo anticipates impacts to be consistent with prior accruals.

In April 2026, the EPA published a new proposed rule with additional amendments to the CCR Legacy Rule. PSCo is evaluating this proposed rule and its potential impacts.

Leases

Finance lease payments are allocated between interest charges and depreciation and amortization on the consolidated statements of income. PPA operating lease payments are included in electric fuel and purchased power, and expense for other operating leases is included in O&M expense and electric fuel and purchased power.

Components of lease expense:


	Three Months Ended June 30
(Millions of Dollars)	2026		2025
Operating leases
PPA capacity payments	$	19	$	20
Other operating leases (a)	2		4
Total operating lease expense	$	21	$	24
Finance leases
Amortization of ROU assets	$	1	$	1
Interest expense on lease liability	8		3
Total finance lease expense	$	9	$	4


	Six Months Ended June 30
(Millions of Dollars)	2026		2025
Operating leases
PPA capacity payments	$	38	$	43
Other operating leases (a)	4		8
Total operating lease expense	$	42	$	51
Finance leases
Amortization of ROU assets	$	2	$	2
Interest expense on lease liability	13		7
Total finance lease expense	$	15	$	9

(a)Includes immaterial short-term lease expense.

Commitments under operating and finance leases as of June 30, 2026:


(Millions of Dollars)	PPA Operating Leases		Other Operating Lease		Total Operating Leases		Finance Leases
Total minimum obligation	$	237	$	338	$	575	$	505
Interest component of obligation	(31)		(161)		(192)		(307)
Present value of minimum obligation	$	206	$	177	383		198
Less current portion					(60)		(4)
Noncurrent operating and finance lease liabilities					$	323	$	194

Variable Interest Entities

Under certain PPAs, PSCo purchases power from IPPs for which PSCo is required to reimburse fuel costs, or to participate in tolling arrangements under which PSCo procures the natural gas required to produce the energy that it purchases. PSCo has determined that certain IPPs are VIEs, however PSCo is not directly subject to risk of loss from the operations of these entities, and no additional significant financial support is required other than contractual payments for energy and capacity.

PSCo evaluated each of these VIEs for possible consolidation and concluded that these entities are not required to be consolidated in its consolidated financial statements because PSCo does not have the power to direct the activities that most significantly impact the entities’ economic performance.

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PSCo had 932 MW of capacity under long-term PPAs at both June 30, 2026 and Dec. 31, 2025 with entities that have been determined to be VIEs. These agreements have expiration dates through 2033.


10. Other Comprehensive Income

Changes in accumulated other comprehensive loss, net of tax:


	Three Months Ended June 30, 2026						Three Months Ended June 30, 2025
(Millions of Dollars)	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total		Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total
Accumulated other comprehensive loss at April 1	$	(17)	$	(1)	$	(18)	$	(18)	$	(1)	$	(19)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)	1		—		1		1		—		1

Net current period other comprehensive income	1		—		1		1		—		1
Accumulated other comprehensive loss at June 30	$	(16)	$	(1)	$	(17)	$	(17)	$	(1)	$	(18)


	Six Months Ended June 30, 2026						Six Months Ended June 30, 2025
(Millions of Dollars)	Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total		Gains and Losses on Cash Flow Hedges		Defined Benefit Pension and Postretirement Items		Total
Accumulated other comprehensive loss at Jan. 1	$	(17)	$	(1)	$	(18)	$	(18)	$	(1)	$	(19)
Losses reclassified from net accumulated other comprehensive loss:
Interest rate derivatives (a)	1		—		1		1		—		1

Net current period other comprehensive income	1		—		1		1		—		1
Accumulated other comprehensive loss at June 30	$	(16)	$	(1)	$	(17)	$	(17)	$	(1)	$	(18)

(a)Included in interest charges.


11. Segment Information

Segment information and reconciliation to PSCo’s consolidated net income:


	Three Months Ended June 30, 2026
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	982	$	225	$	1,207
Intersegment revenues	—		1		1
Total segment revenues	982		226		1,208
Electric fuel and purchased power	264		—		264
Cost of natural gas sold and transported	—		47		47
O&M expenses	166		66		232
Depreciation and amortization	223		78		301
Other segment expenses, net	49		16		65
Interest charges and financing costs	87		23		110
Income tax benefit	(14)		(5)		(19)
Net income	$	207	$	1	$	208

Total segment net income					$	208
Non-segment net loss					(9)
Consolidated net income					$	199

(a)Operating revenues include $1 million of other affiliate revenue.


	Three Months Ended June 30, 2025
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	958	$	260	$	1,218
Intersegment revenues	—		3		3
Total segment revenues	958		263		1,221
Electric fuel and purchased power	309		—		309
Cost of natural gas sold and transported	—		80		80
O&M expenses	165		69		234
Depreciation and amortization	196		72		268
Other segment expenses, net	66		21		87
Interest charges and financing costs	70		20		90
Income tax benefit	—		(3)		(3)
Net income	$	152	$	4	$	156

(a)Operating revenues include $1 million of other affiliate revenue.

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	Six Months Ended June 30, 2026
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	1,960	$	755	$	2,715
Intersegment revenues	—		3		3
Total segment revenues	1,960		758		2,718
Electric fuel and purchased power	594		—		594
Cost of natural gas sold and transported	—		275		275
O&M expenses	321		139		460
Depreciation and amortization	435		155		590
Other segment expenses, net	84		38		122
Interest charges and financing costs	170		46		216
Income tax (benefit) expense	(21)		16		(5)
Net income	$	377	$	89	$	466

Total segment net income					$	466
Non-segment net loss					(5)
Consolidated net income					$	461

(a)Operating revenues include $2 million of other affiliate revenue.


	Six Months Ended June 30, 2025
(Millions of Dollars)	Regulated electric utility		Regulated natural gas utility		Total segments
Operating revenues (a)	$	1,896	$	887	$	2,783
Intersegment revenues	—		5		5
Total segment revenues	1,896		892		2,788
Electric fuel and purchased power	629		—		629
Cost of natural gas sold and transported	—		344		344
O&M expenses	330		142		472
Depreciation and amortization	396		143		539
Other segment expenses, net	136		56		192
Interest charges and financing costs	140		40		180
Income tax (benefit) expense	(8)		34		26
Net income	$	273	$	133	$	406

Total segment net income					$	406
Non-segment net income					$	8
Consolidated net income					$	414

(a)Operating revenues include $3 million of other affiliate revenue.

Asset and capital expenditure information is not provided for PSCo’s reportable segments because, as an integrated electric and natural gas utility, PSCo operates significant assets that are not dedicated to a specific business segment and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

Other segment expenses, net, for the reportable segments includes wildfire litigation expense, conservation and DSM expenses, taxes (other than income taxes), other income, net, intersegment expenses and AFUDC - equity.


ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Discussion of financial condition and liquidity for PSCo is omitted per conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q for wholly owned subsidiaries. It is replaced with management’s narrative analysis of the results of operations set forth in General Instruction H(2)(a) of Form 10-Q for wholly owned subsidiaries (reduced disclosure format).

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with GAAP, as well as certain non-GAAP financial measures such as ongoing earnings. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts measures calculated and presented in accordance with GAAP.

PSCo’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Earnings Adjusted for Certain Items (Ongoing Earnings)

Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items.

We use this non-GAAP financial measure to evaluate and provide details of PSCo’s core earnings and underlying performance. For instance, to present ongoing earnings, we may adjust the related GAAP amounts for certain items that are non-recurring in nature. We believe this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of PSCo. This non-GAAP financial measure should not be considered as an alternative to measures calculated and reported in accordance with GAAP.

The following table provides a reconciliation of GAAP earnings (net income) to ongoing earnings:


	Six Months Ended June 30
(Millions of Dollars)	2026		2025
GAAP net income	$	461	$	414
Marshall Wildfire litigation	(19)		—
Less: tax effect of adjustment	5		—
Ongoing earnings	$	447	$	414

Marshall Wildfire Litigation — In the six months ended June 30, 2026, PSCo recognized $19 million of net reductions to operating expenses due primarily to an increase in the estimated amount recoverable from insurance for non-recurring Marshall Wildfire costs.


Results of Operations

PSCo’s GAAP net income was $461 million for the six months ended June 30, 2026 compared with $414 million for the prior year. Ongoing net income was $447 million for the six months ended June 30, 2026 compared with $414 million for the prior year. The change in ongoing earnings was driven by driven by higher recovery of electric infrastructure investments which was partially offset by unfavorable weather. The difference between GAAP and ongoing earnings was driven by an increase in the estimated amount recoverable from insurance for Marshall Wildfire costs.

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Electric Revenues

Electric revenues are impacted by fluctuations in the price of natural gas and coal, regulatory outcomes, market prices and seasonality. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes.


(Millions of Dollars)	Six Months Ended June 30, 2026 vs. 2025

Non-fuel riders	$	134
Sales and demand	15
Conservation and demand side management (offset in expense)	12
Wholesale transmission	12
Wholesale generation revenues	(50)
PTCs flowed back to customers (offset by lower ETR)	(35)
Estimated impact of weather	(15)

Other, net	(9)
Total increase	$	64

Natural Gas Revenues

Natural gas revenues vary with changing sales, the cost of natural gas and regulatory outcomes.


(Millions of Dollars)	Six Months Ended June 30, 2026 vs. 2025

Recovery of lower cost of natural gas	$	(73)
Estimated impact of weather	(61)

Other, net	2
Total decrease	$	(132)

Electric Fuel and Purchased Power — Expenses incurred for electric fuel and purchased power are impacted by fluctuations in market prices of natural gas and coal, as well as seasonality. These incurred expenses are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.

Electric fuel and purchased power expenses decreased $35 million year-to-date. The decrease was driven by both lower commodity prices and lower volumes.

Cost of Natural Gas Sold and Transported — Expenses incurred for the cost of natural gas sold are impacted by market prices and seasonality. These costs are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.

Natural gas sold and transported decreased $69 million year-to-date. The decrease was primarily due to decreased volumes.

Non-Fuel Operating Expenses and Other Items

Depreciation and Amortization — Depreciation and amortization expense increased $52 million year-to-date. The increase was primarily due to system investment.

Interest Charges — Interest charges increased $63 million year-to-date, largely due to increased long-term debt levels and higher interest rates.

AFUDC, Equity and Debt — AFUDC increased $84 million year-to-date, largely due to system investment.

O&M Expenses — O&M expenses decreased $13 million year-to-date, largely due to generation outage timing.


Public Utility Regulation and Other

The FERC and state and local regulatory commissions regulate PSCo. PSCo is subject to rate regulation by state utility regulatory agencies, which have jurisdiction with respect to the rates of electric and natural gas distribution companies in Colorado.

Rates are designed to recover plant investment, operating costs and an allowed return on investment. PSCo requests changes in utility rates through commission filings. Changes in operating costs can affect PSCo’s financial results, depending on the timing of rate cases and implementation of final rates. Other factors affecting rate filings are new investments, sales, conservation and demand side management efforts and the cost of capital.

In addition, the regulatory commissions authorize the ROE, capital structure and depreciation rates in rate proceedings. Decisions by these regulators can significantly impact PSCo’s results of operations.

Except to the extent noted below, the circumstances set forth in Public Utility Regulation included in Item 7 of PSCo’s Annual Report on Form 10-K for the year ended Dec. 31, 2025, appropriately represent, in all material respects, the current status of public utility regulation and are incorporated herein by reference.

Pending and Recently Concluded Regulatory Proceedings

2025 Colorado Electric Rate Case — In November 2025, PSCo filed an electric rate case with the CPUC seeking an increase in revenue of $356 million (9.9%) ($526 million inclusive of rider roll-ins). The request is based on a 9.8% ROE, an equity ratio of 55% and a 2025 test year with a projected rate base of $13 billion.

In June 2026, PSCo, CPUC Staff and various other parties filed a comprehensive non-unanimous settlement agreement. The AARP, City of Boulder and the UCA oppose the settlement. Other parties either support portions of the settlement or do not oppose it. Terms of the settlement include:

•Revenue increase (excluding rider roll-ins) of $225 million (6.3% total, or an annual average of 2.05% since the last rate case), based on a 2025 historic test year using year-end rate base with limited forward looking known and measurable adjustments.

•ROE of 9.3% and equity ratio of 54.5%.

•A performance framework applicable to the operation of Comanche Unit 3 coal facility from effective date of rates through 2029.

•Transfer of the previous Transmission Cost Adjustment investments into rate base.

•Continuation of previously authorized trackers and deferrals.

A CPUC decision and implementation of final rates is anticipated in the third quarter of 2026.

2025 Colorado Natural Gas Rate Case — In December 2025, PSCo filed a natural gas rate case with the CPUC seeking an increase in revenue of $190 million (11.6%). The request is based on a 10.75% ROE, an equity ratio of 55% and a 2025 test year with a projected rate base of $4.7 billion.

In July 2026, PSCo, CPUC Staff, the UCA, the Colorado Energy Office, Western Resource Advocates/Sierra Club, Energy Outreach Colorado and various other parties filed a comprehensive non-unanimous settlement agreement. Several parties either do not oppose or take no position on the settlement, and one transportation shipper opposes it.

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Key terms of the settlement include:

•Revenue increase of $123 million (7.5% total, or an annual average of 3.7% since the last rate case), based on a 2025 historic test year using average rate base with forward looking known and measurable adjustments.

•ROE of 9.2% and equity ratio of 54.5%.

Hearings to discuss the settlement took place in July 2026. A CPUC decision and implementation of final rates is anticipated in the fourth quarter of 2026.

2024 Colorado Electric Resource Plan — In October 2024, PSCo filed its Phase I electric resource plan with the CPUC. In November 2025, the CPUC approved a load forecast that reflects 3% compound annual sales growth through 2031 and a generation capacity need of approximately 5,400 MW.

PSCo filed a request for reconsideration of various aspects of the decision which were approved in February 2026. The RFP for the Phase II competitive solicitation process is expected to be issued in the third quarter of 2026. This RFP will seek to acquire the balance of resource needs through 2031 (after consideration of 3,800 MW of approved acquisitions from the Near-Term Procurement RFP).

Other

Tariffs, Trade Complaints and Federal Actions

Several trade cases related to anti-dumping and countervailing duty investigations are ongoing and we continue to monitor the potential impacts of these cases.

Executive orders have been issued imposing new global and country-specific tariffs on many imports, which may impact our procurement and development activities. Additionally, executive orders and actions from government agencies may impact the permitting of wind and solar facilities and the retirement of coal facilities.

Xcel Energy continues to assess the impacts of these tariffs, executive orders, trade complaints and federal policies on its business, including company owned projects and PPAs. Xcel Energy may seek regulatory relief, if required, in its jurisdictions.

Continued and/or further policy actions or other restrictions, disruptions in imports from key suppliers, or any new trade complaint could impact viability, timelines and costs of various projects and PPAs.

Large Load/Data Center Tariffs

In Colorado, we have proposed a tariff applicable to large load customers, designed to allow us to serve these new customers and support local economic development while protecting existing customers from bearing the incremental costs to serve these loads.

The proposed tariff, filed in the second quarter of 2026, would be mandatory for new loads over 50 MW and requires the customer pay for generation and other infrastructure costs needed to serve the load. The proposed tariff also includes a minimum initial term of 15 years, minimum bill provisions, termination and exit fees, and credit requirements. A CPUC decision is expected in late 2026 or early 2027.

Environmental Regulation

Throughout 2025 and 2026, the EPA has announced various regulatory actions addressing a wide range of environmental regulations. PSCo will continue to monitor proposed rules as they move toward final action. Additionally, any other amendments and changes to rules will be evaluated as proposed by the EPA.

Clean Air Act

Power Plant Greenhouse Gas Regulations — In April 2024, the EPA published final rules addressing control of CO2 emissions from the power sector. The rules regulate new natural gas generating units and emission guidelines for existing coal and certain natural gas generation.

Based on current estimates and assumptions, PSCo has determined that due to scheduled plant retirements, there is minimal financial or operational impact associated with these requirements and believes that the cost of these initiatives or replacement generation would be recoverable through rates based on prior state commission practices.

In June 2025, the EPA proposed to repeal these and all other GHG emissions standards for the power sector. In the alternative, the EPA proposed to repeal a narrower subset of the 2024 regulations.

Endangerment Finding — In February 2026, the EPA issued a final rule repealing the 2009 Endangerment Finding and associated regulations addressing GHG emissions from new motor vehicles and engines under the Clean Air Act. PSCo will monitor any additional proposed rules and evaluate the impacts of any final rule on the utility sector.

Emerging Contaminants of Concern

PFAS are man-made chemicals that are widely used in consumer products and can persist and bio-accumulate in the environment. PSCo does not manufacture PFAS, but because PFAS are so ubiquitous in products and the environment, it may impact our operations.

In June 2024, the EPA finalized a rule that designated certain PFAS as hazardous substances under CERCLA. In July 2024, the EPA finalized another rule that set enforceable drinking water standards for certain PFAS.

Potential costs for these rules and any additional proposed regulations related to PFAS are uncertain and will be determined on a site specific basis where applicable. If costs are incurred, PSCo believes the costs would be recoverable through rates based on prior state commission practices.

Effluent Limitation Guidelines

In April 2024, the EPA published final rules under the Clean Water Act, setting Effluent Limitations Guidelines and Standards for steam generating coal plants. This rule establishes more stringent wastewater discharge standards for bottom ash transport water, flue-gas desulfurization wastewater and combustion residuals leachate from steam electric power plants, particularly coal-fired power plants. Based on current estimates and assumptions, PSCo has determined that there is minimal financial or operational impact associated with these requirements and that any costs would be recoverable through rates based on prior state commission practices.

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ITEM 4 — CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

PSCo maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

In addition, the disclosure controls and procedures ensure that information required to be disclosed is accumulated and communicated to management, including the CEO and CFO, allowing timely decisions regarding required disclosure.

As of June 30, 2026, based on an evaluation carried out under the supervision and with the participation of PSCo’s management, including the CEO and CFO, of the effectiveness of its disclosure controls and procedures, the CEO and CFO have concluded that PSCo’s disclosure controls and procedures were effective.

Internal Control Over Financial Reporting

No changes in PSCo’s internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, PSCo’s internal control over financial reporting.


PART II — OTHER INFORMATION


ITEM 1 — LEGAL PROCEEDINGS

Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to, when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss.

For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on PSCo’s consolidated financial statements. Legal fees are generally expensed as incurred.

See Note 9 to the consolidated financial statements and Part I Item 2 for further information.


ITEM 1A — RISK FACTORS

PSCo’s risk factors are documented in Item 1A of Part I of its Annual Report on Form 10-K for the year ended Dec. 31, 2025, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the Form 10-K.


ITEM 5 — OTHER INFORMATION

None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended June 30, 2026.


ITEM 6 — EXHIBITS

* Indicates incorporation by reference


Exhibit Number	Description	Report or Registration Statement	Exhibit Reference
3.01*	Amended and Restated Articles of Incorporation, dated July 15, 1998	PSCo Form 10-Q for the quarter ended Sept. 30, 2017	3.01
3.02*	Amended and Restated Bylaws of PSCo, dated Jan. 25, 2019	PSCo Form 10-K for the year ended Dec. 31, 2018	3.02
10.01*	Summary of Non-Employee Director Compensation, effective as of May 20, 2026	Xcel Energy Inc. Form 8-K dated July 29, 2026	10.01
10.02	Xcel Energy Inc. Nonqualified Deferred Compensation Plan (2026 Restatement)
31.01	Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.02	Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.01	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Schema
101.CAL	Inline XBRL Calculation
101.DEF	Inline XBRL Definition
101.LAB	Inline XBRL Label
101.PRE	Inline XBRL Presentation
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		Public Service Company of Colorado

July 30, 2026	By:	/s/ MELISSA L. OSTROM
		Melissa L. Ostrom
		Senior Vice President, Controller
		(Principal Accounting Officer)


	By:	/s/ BRIAN J. VAN ABEL
		Brian J. Van Abel
		Executive Vice President, Chief Financial Officer
		(Principal Financial Officer)