What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2024-02-21 compared with 2023-02-23 · 308 added, 275 removed, 1734 unchanged (25% of the section changed)

66 unchanged sentences

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.

Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) a disallowance of part of the cost of recently completed plant, and 3) a refund due to customers.

Management judgments include assessing the likelihood of recovery in future rates of incurred costs and refunds due to customers.

Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

4 unchanged sentences

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions for the Company, regulatory statutes, interpretations, procedural schedules and memorandums, filings made by intervenors, experts’ testimony and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances.

We also evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects.

If the full recovery of project costs is being challenged by intervenors, we evaluated management’s assessment of the probability of a disallowance.

We evaluated the external information and compared to the Company’s recorded regulatory assets and liabilities for completeness.

• We read relevant regulatory orders issued by the Commissions for the Company, other regulatory filings, legal decisions and recommendations being evaluated by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates.

We evaluated historic orders for precedents of the Commissions’ treatment of similar costs under similar circumstances.

We compared the regulatory orders, filings and other publicly available information to the Company’s recorded regulatory assets and liabilities for completeness.

• We obtained management’s analysis and correspondence from counsel, as appropriate, regarding regulatory assets or liabilities not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery or a future reduction in rates.

22 unchanged sentences

Taxes (other than income taxes) 657 688 630

Loss on Comanche Unit 3 litigation 35 — —

Workforce reduction expenses 72 — —

Total operating expenses 11,725 12,882 11,228

Operating income 2,481 2,428 2,203

Other (expense) income, net ( 13 ) 5 ( 6 )

Other income (expense), net 22 ( 13 ) 5

Earnings from equity method investments 35 36 62

2 unchanged sentences

Interest charges — includes other financing costs of $ 32 , $ 31 and $ 29 , respectively

1,055 953 842

Allowance for funds used during construction — debt ( 51 ) ( 28 ) ( 26 )

19 unchanged sentences

Pension and retiree medical benefits:

Net pension and retiree medical gains (losses) arising during the period, net of tax of $ 1 , $ — and $( 2 ), respectively

Reclassification of losses to net income, net of tax of $ 1 , $ 3 and $ 3 , respectively

Net pension and retiree medical (losses) gains arising during the period, net of tax ( 4 ) 5 —

Reclassification of losses to net income, net of tax 2 4 8

Derivative instruments:

Net fair value increase (decrease), net of tax of $ 6 , $ 1 and $( 3 ), respectively

Reclassification of losses to net income, net of tax of $ 2 , $ 2 and $ 2 , respectively

Total other comprehensive income 30 18 —

Net fair value (decrease) increase, net of tax ( 2 ) 16 4

Reclassification of losses to net income, net of tax 3 5 6

Total other comprehensive (loss) income ( 1 ) 30 18

Total comprehensive income $ 1,770 $ 1,766 $ 1,615

30 unchanged sentences

Capital/construction expenditures ( 5,854 ) ( 4,638 ) ( 4,244 )

Sale of MEC — — 684

Purchase of investment securities ( 994 ) ( 1,332 ) ( 757 )

15 unchanged sentences

Cash paid for interest (net of amounts capitalized) $ ( 945 ) $ ( 887 ) $ ( 788 )

Cash (paid) received for income taxes, net ( 15 ) ( 4 ) 12

Cash received (paid) for income taxes, net 92 ( 15 ) ( 4 )

Supplemental disclosure of non-cash investing and financing transactions:

76 unchanged sentences

Net income 1,597 1,597

Other comprehensive income 18 18

Dividends declared on common stock ($ 1.83 per share)

1 unchanged sentence

Issuances of common stock 6,586,875 16 387 403

Repurchases of common stock ( 54,475 ) — ( 4 ) ( 4 )

Share-based compensation 12 ( 4 ) 8

Adoption of ASC Topic 326 ( 2 ) ( 2 )

Balance at Dec.

29 unchanged sentences

Capital Services Procures equipment for construction of renewable generation facilities at other subsidiaries.

Venture Holdings Invests in limited partnerships, including EIP funds with portfolios of investments in energy technology companies.

Xcel Energy Venture Holdings, Inc.

Invests in limited partnerships, including EIP funds with portfolios of investments in energy technology companies.

Nicollet Project Holdings Invests in nonregulated assets such as the Minnesota community solar gardens.

3 unchanged sentences

Xcel Energy Wholesale Group Inc.

Xcel Energy Market Holdings Inc.

Xcel Energy Markets Holdings Inc.

Xcel Energy Ventures Inc.

19 unchanged sentences

These statements contain all necessary adjustments and disclosures resulting from that evaluation.

Use of Estimates — Xcel Energy uses estimates based on the best information available in recording transactions and balances resulting from business operations.

Use of Estimates — Xcel Energy uses estimates based on the best information available to record transactions and balances resulting from business operations.

Estimates are used for items such as plant depreciable lives or potential disallowances, AROs, certain regulatory assets and liabilities, tax provisions, uncollectible amounts, environmental costs, unbilled revenues, jurisdictional fuel and energy cost allocations and actuarially determined benefit costs.

5 unchanged sentences

• Certain credits, which would otherwise be reflected as income or other comprehensive income, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates, or because the amounts were collected in rates prior to the costs being incurred.

Estimates and assumptions for recovery of deferred costs and refund of deferred credits are based on specific ratemaking decisions, precedent or other information available.

Estimates and assumptions for recovery of deferred costs and refund of deferred credits are based on specific ratemaking decisions, precedent or other available information.

Regulatory assets and liabilities are amortized consistent with the treatment in the rate setting process.

2 unchanged sentences

See Note 4 for further information.

Income Taxes — Xcel Energy accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements.

Income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax bases of assets and liabilities.

Rates are utilized that are scheduled to be in effect when the temporary differences are expected to reverse.

Income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax bases of assets and liabilities utilizing rates that are scheduled to be in effect when the temporary differences are expected to reverse.

The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date.

Utility rate regulation has resulted in the recognition of regulatory assets and liabilities related to income taxes.

The effects of tax rate changes that are attributable to the utility subsidiaries are generally subject to a normalization method of accounting.

2 unchanged sentences

Reversal of certain temporary differences are accounted for as current income tax expense due to the effects of past regulatory practices when deferred taxes were not required to be recorded due to the use of flow through accounting for ratemaking purposes.

Tax credits are recorded when earned unless there is a requirement to defer the benefit and amortize over the book depreciable lives of the related property.

Tax credits are recorded when earned unless there is a requirement to defer the benefit and amortize over the book depreciable lives of related property.

The requirement to defer and amortize these credits specifically applies to certain federal ITCs, as determined by tax regulations and Xcel Energy tax elections.

1 unchanged sentence

Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Utility rate regulation has resulted in the recognition of regulatory assets and liabilities related to income taxes.

This evaluation includes consideration of whether tax credits are expected to be sold at a discount and impact the realization of amounts presented as deferred tax assets.

Transferable tax credits are accounted for under ASC 740 Income Taxes , and valuation allowances and any adjustments for discounts incurred on sales transactions are recorded to deferred tax expense, typically recovered in the utility subsidiaries’ regulatory mechanisms.

Xcel Energy measures and discloses uncertain tax positions that it has taken or expects to take in its income tax returns.

1 unchanged sentence

Recognition of changes in uncertain tax positions are reflected as a component of income tax expense.

Interest and penalties related to income taxes are reported within other (expense) income or interest charges in the consolidated statements of income.

Interest and penalties related to income taxes are reported within Other income (expense), net or interest charges in the consolidated statements of income.

Xcel Energy Inc.

11 unchanged sentences

Amounts recovered in rates for future removal costs are recorded as regulatory liabilities.

Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance costs are charged to expense as incurred.

Maintenance and replacement of items determined to be less than a unit of property are charged to operating expenses as incurred.

Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance costs and replacement of items determined to be less than a unit of property are charged to expense as incurred.

Property, plant and equipment is tested for impairment when it is determined that the carrying value of the assets may not be recoverable.

8 unchanged sentences

See Note 3 for further information.

AROs — Xcel Energy records AROs as a liability for the fair value of an ARO to be recognized in the period incurred (if it can be reasonably estimated), with the offsetting/associated costs capitalized as a long-lived asset.

AROs — Xcel Energy records AROs as a liability in the period incurred (if fair value can be reasonably estimated), with the offsetting/associated costs capitalized as a long-lived asset.

The liability is generally increased over time by applying the effective interest method of accretion and the capitalized costs are typically depreciated over the useful life of the long-lived asset.

7 unchanged sentences

For financial reporting purposes, NSP-Minnesota accounts for nuclear decommissioning as an ARO.

Restricted funds for the payment of future decommissioning expenditures for NSP-Minnesota’s nuclear facilities are included in nuclear decommissioning fund and other assets on the consolidated balance sheets.

Restricted funds for future decommissioning expenditures for NSP-Minnesota’s nuclear facilities are included in nuclear decommissioning fund and other assets on the consolidated balance sheets.

See Notes 10 and 12 for further information.

9 unchanged sentences

If other participating potentially responsible parties exist and acknowledge their potential involvement with a site, costs are estimated and recorded only for Xcel Energy’s expected share of the cost.

Future costs of restoring sites are treated as a capitalized cost of plant retirement.

Estimated future expenditures to restore sites are treated as a capitalized cost of plant retirement.

The depreciation expense levels recoverable in rates include a provision for removal expenses.

8 unchanged sentences

The utility subsidiaries recognize physical sales to customers (native load and wholesale) on a gross basis in electric revenues and cost of sales.

Revenues and charges for short-term physical wholesale sales of excess energy transacted through RTOs are also recorded on a gross basis.

Other revenues and charges settled/facilitated through an RTO are recorded on a net basis in cost of sales.

Revenues and charges for short-term physical wholesale sales of excess energy transacted through RTO/ISOs are also recorded on a gross basis.

Other revenues and charges settled/facilitated through an RTO/ISO are recorded on a net basis in cost of sales.

See Note 6 for further information.

11 unchanged sentences

For investments in EIP funds, this includes Xcel Energy’s share of fund expenses and realized gains and losses, as well as unrealized gains and losses resulting from valuations of the funds’ investments in emerging energy technology companies.

Fair Value Measurements — Xcel Energy presents cash equivalents, interest rate derivatives, commodity derivatives and nuclear decommissioning fund assets at estimated fair values in its consolidated financial statements.

Fair Value Measurements — Xcel Energy presents cash equivalents, interest rate derivatives, rabbi trust assets, commodity derivatives, pension and postretirement plan assets and nuclear decommissioning fund assets at estimated fair values in its consolidated financial statements.

For interest rate derivatives, quoted prices based primarily on observable market interest rate curves are used to estimate fair value.

1 unchanged sentence

In the absence of a quoted price, quoted prices for similar contracts or internally prepared valuation models may be used to determine fair value.

For the pension and postretirement plan assets and nuclear decommissioning fund, published trading data and pricing models, generally using the most observable inputs available, are utilized to determine fair value for each security.

For rabbi trust assets, pension and postretirement plan assets and nuclear decommissioning fund assets, published trading data and pricing models, generally using the most observable inputs available, are utilized to determine fair value for each security.

See Notes 10 and 11 for further information.

Derivative Instruments — Xcel Energy uses derivative instruments in connection with its commodity trading activities, and to manage risk associated with changes in interest rates and utility commodity prices, including forward contracts, futures, swaps and options.

Any derivative instruments not qualifying for the normal purchases and normal sales exception are recorded on the consolidated balance sheets at fair value as derivative instruments.

Derivatives not qualifying for the normal purchases and normal sales exception are recorded on the consolidated balance sheets at fair value as derivative instruments.

Classification of changes in fair value for those derivative instruments is dependent on the designation of a qualifying hedging relationship.

31 unchanged sentences

The cost of these RECs and amounts credited to customers under margin-sharing mechanisms are recorded in electric fuel and purchased power expense.

Cost of RECs that are utilized to support commodity trading activities are recorded in a similar manner as the associated commodities and are on a net basis in electric operating revenues in the consolidated statements of income.

Cost of RECs that are utilized to support commodity trading activities are recorded in a similar manner as the associated commodities and are presented on a net basis in electric operating revenues in the consolidated statements of income.

Accounting Pronouncements

31, 2022, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on Xcel Energy’s consolidated financial statements.

Recently Issued

Segment Reporting — In November 2023, the FASB issued ASU 2023-07 – Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , which extends the existing requirements for annual disclosures to quarterly periods, and requires that both annual and quarterly disclosures present segment expenses using line items consistent with information regularly provided to the chief operating decision maker.

The ASU is effective for annual periods beginning after Dec.

15, 2023 and quarterly periods beginning after Dec.

15, 2024, and Xcel Energy does not expect implementation of the new disclosure guidance to have a material impact to its consolidated financial statements.

Income Taxes — In December 2023, the FASB issued ASU 2023-09 – Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , with new disclosure requirements including presentation of prescribed line items in the effective tax rate reconciliation and disclosures regarding state and local tax payments.

The ASU is effective for annual periods beginning after Dec.

15, 2024, and Xcel Energy does not expect implementation of the new disclosure guidance to have a material impact to its consolidated financial statements.

Property, Plant and Equipment

13 unchanged sentences

Property, plant and equipment, net $ 51,642 $ 48,253

(a) Amounts as of Dec.

31, 2021 include Sherco Units 1, 2 and 3 and A.S.

(a) Amounts include Sherco 1 and 3 and A.S.

King for NSP-Minnesota;

Comanche Unit 1 and 2 and Craig Units 1 and 2 for PSCo;

and Tolk and coal generation assets at Harrington pending facility gas conversion for SPS.

Following the June 2022 approval of PSCo’s revised resource plan settlement, amounts as of Dec.

31, 2022 include the addition of Comanche Unit 3, Hayden Units 1 and 2 and coal generation assets at Pawnee pending facility gas conversion as well as the removal of Comanche Unit 1 that was retired in 2022.

Comanche Units 2 and 3, Craig Units 1 and 2, Hayden Units 1 and 2 and coal generation assets at Pawnee pending facility gas conversion for PSCo;

and Tolk Unit 1 and 2 and coal generation assets at Harrington pending facility gas conversion for SPS.

31, 2022 balance also includes Sherco 2, which was retired on Dec.

Amounts are presented net of accumulated depreciation.

48 unchanged sentences

Pension and retiree medical obligations 11 Various $ 27 $ 1,106 $ 22 $ 1,069

1, 12 Various — 339 — ( 112 )

Deferred natural gas, electric, steam energy/fuel costs One to five years

581 299 504 543

Recoverable deferred taxes on AFUDC Plant lives — 332 — 292

1, 12 Various — 316 — 339

Excess deferred taxes — TCJA

3 unchanged sentences

Environmental remediation costs 1, 12 Various 15 94 20 92

Benson biomass PPA termination and asset purchase Six years

PI extended power uprate 12 years

Deferred natural gas, electric, steam energy/fuel costs One to three years

239 80 581 299

Conservation programs (c)

1 unchanged sentence

Purchased power contract costs Term of related contract 4 40 10 36

PI extended power uprate 11 years

Benson biomass PPA termination and asset purchase Five years

Sales true-up and revenue decoupling One to two years

State commission adjustments Plant lives 1 32 1 33

Losses on reacquired debt Term of related debt 2 30 3 32

MISO capacity revenue tracker One to two years

Gas pipeline inspection and remediation costs One to two years

Contract valuation adjustments (d)

1, 10 Term of related contract 18 22 28 28

Grid modernization costs Various 14 24 — 36

Gas pipeline inspection and remediation costs One to two years

Nuclear refueling outage costs 1 One to two years

Grid modernization costs One to two years

Renewable resources and environmental initiatives One to two years

Texas revenue surcharges Less than one year

Sales true-up and revenue decoupling One to two years

Other Various 65 106 144 75

Total regulatory assets $ 611 $ 2,798 $ 1,059 $ 2,871

(a) Prior period amounts have been restated to conform with current year presentation.

(b) Includes amounts recorded for future recovery of AROs, less amounts recovered through nuclear decommissioning accruals and gains from decommissioning investments.

(a) Prior period amounts have been reclassified to conform with current year presentation.

(b) The 2022 amount is net of the nuclear decommissioning accruals and gains from decommissioning investments.

In 2023, the nuclear decommissioning accruals and gains from decommissioning investments exceeded the expected cost of AROs in NSP-Minnesota and was reclassified to a regulatory liability.

4 unchanged sentences

Regulatory Liabilities Current Noncurrent Current Noncurrent

Deferred income tax adjustments and TCJA refunds (b)

Deferred income tax adjustments and TCJA refunds (a)

7 Various $ 7 $ 3,015 $ 9 $ 3,110

Plant removal costs 1, 12 Various — 1,984 — 1,819

Effects of regulation on employee benefit costs (c)

Effects of regulation on employee benefit costs (b)

Various — 253 — 247

Renewable resources and environmental initiatives Various 9 188 6 173

Revenue decoupling One to two years

Various — 90 — —

Sales true-up and revenue decoupling Two years

ITC deferrals

1 Various 1 60 1 61

LP&L departure payment Up to 10 years

Formula rates One to two years

Contract valuation adjustments (d)

1, 10 One to two years

DOE settlement One to two years

Deferred natural gas, electric, steam energy/fuel costs Less than one year

Contract valuation adjustments (d)

1, 10 Less than one year

Conservation programs (e)

1 Less than one year

DOE settlement Various 12 3 14 14

Other Various 90 104 72 61

1 unchanged sentence

$ 528 $ 5,827 $ 418 $ 5,569

(a) Prior period amounts have been restated to conform with current year presentation.

(b) Includes the revaluation of recoverable/regulated plant accumulated deferred income taxes and revaluation impact of non-plant accumulated deferred income taxes due to the TCJA.

(c) Includes regulatory amortization and certain 2018 TCJA benefits approved by the CPUC to offset the PSCo prepaid pension asset.

(a) Includes the revaluation of recoverable/regulated plant accumulated deferred income taxes and revaluation impact of non-plant accumulated deferred income taxes due to the TCJA.

(b) Includes regulatory amortization and certain 2018 TCJA benefits approved by the CPUC to offset the PSCo prepaid pension asset.

(c) Includes amounts recorded for future recovery of AROs, less amounts recovered through nuclear decommissioning accruals and gains from decommissioning investments.

(d) Includes the fair value of FTR instruments utilized/intended to offset the impacts of transmission system congestion.

1 unchanged sentence

(f) Revenue subject to refund of $ 187 million and $ 67 million for 2023 and 2022, respectively, is included in other current liabilities.

Xcel Energy’s regulatory assets not earning a return include the unfunded portion of pension and retiree medical obligations and net AROs (i.e.

deferrals for which cash has not been disbursed).

In addition, regulatory assets included $ 1,020 million and $ 1,718 million at Dec.

31, 2022 and 2021 respectively, of past expenditures not earning a return.

Amounts are predominately related to purchased natural gas and electric energy costs (including certain costs related to Winter Storm Uri), sales true-up and revenue decoupling, various renewable resources/environmental initiatives and certain prepaid pension amounts.

Xcel Energy’s regulatory assets not earning a return include past expenditures of $ 1,085 million and $ 1,020 million at Dec.

31, 2023 and 2022 respectively, which predominately relate to purchased natural gas and electric energy costs (including certain costs related to Winter Storm Uri), sales true-up and revenue decoupling, various renewable resources/environmental initiatives and certain prepaid pension amounts.

Additionally, the unfunded portion of pension and retiree medical obligations and net AROs (i.e.

deferrals for which cash has not been disbursed) do not earn a return.

Borrowings and Other Financing Instruments

20 unchanged sentences

The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

Amended Credit Agreements — In September 2022 , Xcel Energy Inc., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS each entered into an amended five-year credit agreement with a syndicate of banks.

The aggregate borrowing limit was increased to $ 3.55 billion.

The amended credit agreements have substantially the same terms and conditions as the prior agreements, with the following changes:

• Maturities extended from June 2024 to September 2027.

• Borrowing limit for Xcel Energy Inc.

increased from $ 1.25 billion to $ 1.5 billion.

• Borrowing limit for NSP-Minnesota increased from $ 500 million to $ 700 million.

Terms of Credit Agreements — In September 2022 , Xcel Energy Inc., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS each entered into an amended five-year credit agreement with a syndicate of banks.

The aggregate borrowing limit is $ 3.55 billion.

The amended credit agreements mature in September 2027.

Features of the credit facilities:

Debt-to-Total Capitalization Ratio (a)

Amount Facility May Be Increased (millions of dollars) Additional Periods for Which a One-Year Extension May Be Requested (b)

Amount Facility May Be Increased (millions of dollars) (b)

Additional Periods for Which a One-Year Extension May Be Requested (c)

Xcel Energy Inc.

5 unchanged sentences

(a) Each credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65 %.

(b) All extension requests are subject to majority bank group approval.

(b) Amounts authorized by state commissions in respective jurisdictions.

(d) The Xcel Energy Inc.

credit facility has a cross-default provision that Xcel Energy Inc.

35 unchanged sentences

1, 2026 500 500

Unsecured senior notes (a)

1.75 March 15,2027 500 500

Unsecured senior notes 1.75 March 15, 2027 500 500

Unsecured senior notes 4.00 June 15, 2028 130 130

3 unchanged sentences

Unsecured senior notes 3.40 June 1, 2030 600 600

Unsecured senior notes (a)

Unsecured senior notes

15, 2031 300 300

Unsecured senior notes (b)

Unsecured senior notes (a)

4.60 June 1, 2032 700 700

Unsecured senior notes (b)

15, 2033 800 —

Unsecured senior notes 6.50 July 1, 2036 300 300

Unsecured senior notes 4.80 Sep.

Unsecured senior notes 4.80 Sept.

15, 2041 250 250

9 unchanged sentences

Financing Instrument Interest Rate Maturity Date 2023 2022

First mortgage bonds 2.15 % Aug.

15, 2022 $ — $ 300

First mortgage bonds 2.60 % May 15, 2023 $ — $ 400

1 unchanged sentence

First mortgage bonds 6.50 March 1, 2028 150 150

First mortgage bonds (a)

2.25 April 1, 2031 425 425

First mortgage bonds 2.25 April 1, 2031 425 425

First mortgage bonds 5.25 July 15, 2035 250 250

11 unchanged sentences

First mortgage bonds 3.60 May 15, 2046 350 350

First mortgage bonds 3.60 Sep.

First mortgage bonds 3.60 Sept.

15, 2047 600 600

1 unchanged sentence

First mortgage bonds 2.60 June 1, 2051 700 700

First mortgage bonds 3.20 April 1, 2052 425 425

First mortgage bonds (a)

3.20 April 1,2052 425 425

First mortgage bonds (b)

4.50 June 1, 2052 500 500

First mortgage bonds (b)

5.10 May 15, 2053 800 —

Other long-term debt 2 3

18 unchanged sentences

First mortgage bonds 3.05 May 1, 2051 100 100

First mortgage bonds 2.82 May 1, 2051 100 100

First mortgage bonds (a)

2.82 May 1, 2051 100 100

First mortgage bonds (b)

15, 2052 100 100

Other long-term debt — 1

First mortgage bonds (b)

5.30 June 15, 2053 125 —

Unamortized discount ( 3 ) ( 3 )

Unamortized debt issuance cost ( 11 ) ( 11 )

Current maturities ( 200 ) —

Total long-term debt $ 1,011 $ 1,086

2 unchanged sentences

Financing Instrument Interest Rate Maturity Date 2023 2022

First mortgage bonds 2.25 % Sept.

15, 2022 $ — $ 300

First mortgage bonds 2.50 % March 15, 2023 $ — $ 250

3 unchanged sentences

15, 2031 375 375

First mortgage bonds 1.875 June 15, 2031 750 750

First mortgage bonds (a)

4.10 June 1, 2032 300 300

First mortgage bonds (b)

4.10 June 1, 2032 300 —

First mortgage bonds 6.25 Sept.

16 unchanged sentences

15, 2051 375 375

First mortgage bonds (b)

First mortgage bonds (a)

4.50 June 1, 2052 400 400

First mortgage bonds (b)

5.25 April 1, 2053 850 —

Unamortized discount ( 41 ) ( 37 )

25 unchanged sentences

First mortgage bonds 3.15 May 1, 2050 350 350

First mortgage bonds 3.15 May 1, 2050 250 250

First mortgage bonds (a)

3.15 May 1, 2050 250 250

First mortgage bonds (b)

5.15 June 1, 2052 200 200

First mortgage bonds (b)

15, 2053 100 —

Unamortized discount ( 10 ) ( 10 )

Unamortized debt issuance cost ( 29 ) ( 29 )

Current maturities ( 350 ) —

Total long-term debt $ 2,961 $ 3,211

(a) 2020 financing re-opened in 2021 .

(a) 2022 financing.

(b) 2023 financing .

8 unchanged sentences

31, 2023 and 2022, respectively.

Equity through DRIP and Benefits Program — Xcel Energy issued $ 84 million and $ 74 million of equity through the DRIP and benefits programs in 2022 and 2021, respectively.

Equity through DRIP and Benefits Program — Xcel Energy issued $ 88 million of equity in 2023 and $ 84 million of equity in 2022 through the DRIP and benefits programs.

The program allows shareholders to reinvest their dividends directly in Xcel Energy Inc.

2 unchanged sentences

filed a prospectus supplement under which it may sell up to $ 800 million of its common stock through an ATM program.

In 2021, 5.33 million shares of common stock were issued (approximately $350 million).

In 2022, 4.30 million shares of common stock were issued (approximately $300 million).

31, 2022, approximately $150 million remained available for sale under the ATM program.

In 2021, 5.33 million shares of common stock were issued (approximately $ 350 million in net proceeds and $ 3 million in transaction fees paid).

In 2022, 4.30 million shares of common stock were issued (approximately $ 300 million in net proceeds and $ 3 million in transaction fees paid).

In 2023, 0.90 million shares of common stock were issued ($ 62 million in net proceeds and $ 1 million in transaction fees paid).

In October 2023, the 2021 ATM offering was closed.

In October 2023, Xcel Energy Inc.

filed a prospectus supplement under which it may sell up to $ 2.5 billion of its common stock through an ATM program.

In the fourth quarter, through this ATM Program, Xcel Energy Inc.

issued 3.12 million shares of common stock ($ 188 million in net proceeds and $ 2 million in transaction fees paid).

Capital Stock — Preferred stock authorized/outstanding:

21 unchanged sentences

NSP-Minnesota 47.2 % 57.6 % 52.3 %

NSP-Wisconsin 52.5 N/A 52.8

NSP-Wisconsin (a)

52.5 N/A 52.7

45.0 55.0 54.6

(a) Excludes short-term debt.

(a) Cannot pay annual dividends in excess of forecasted levels if its average equity-to-total capitalization ratio falls below the commission authorized level.

(b) Excludes short-term debt.

(Amounts in Millions) Unrestricted Retained Earnings Total Capitalization Limit on Total Capitalization

NSP-Minnesota $ 1,508 $ 15,702 $ 16,140

NSP-Wisconsin (a)

NSP-Wisconsin 9 2,520 N/A

617 7,298 N/A

(a) Cannot pay annual dividends in excess of forecasted levels if its average equity-to-total capitalization ratio falls below the commission authorized level.

(b) May not pay a dividend that would cause a loss of its investment grade bond rating.

(a) May not pay a dividend that would cause a loss of its investment grade bond rating.

Issuance of securities by Xcel Energy Inc.

53 unchanged sentences

Effective income tax rate for years ended Dec.

2022 2021 (a)

Federal statutory rate 21.0 % 21.0 % 21.0 %

1 unchanged sentence

(Decreases) increases in tax from:

Wind PTCs (b)

Wind PTCs (a)

( 28.1 ) ( 27.4 ) ( 23.4 )

Plant regulatory differences (c)

Plant regulatory differences (b)

( 5.6 ) ( 5.5 ) ( 6.2 )

Other tax credits, net NOL & tax credit allowances ( 1.3 ) ( 1.3 ) ( 1.1 )

NOL Carryback — — ( 0.9 )

Other, net 0.1 ( 0.1 ) 0.1

Effective income tax rate ( 9.0 ) % ( 8.4 ) % ( 4.6 ) %

(a) Prior period amounts have been restated to conform with current year presentation.

(b) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.

(c) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method.

Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions and additional prepaid pension asset amortization .

(a) Wind PTCs net of estimated transfer discount are credited to customers (reduction to revenue) and do not materially impact net income.

(b) Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method.

Income tax benefits associated with the credit are offset by corresponding revenue reductions .

Components of income tax expense for years ended Dec.

(Millions of Dollars) 2023 2022 2021

Current federal tax expense (benefit) $ 1 $ 15 $ ( 13 )

Current federal tax expense $ 113 $ 1 $ 15

Current state tax expense (benefit) 16 3 ( 2 )

Current change in unrecognized tax expense 5 1 18

Current change in unrecognized tax (benefit) expense ( 21 ) 5 1

Deferred federal tax benefit ( 331 ) ( 239 ) ( 183 )

Deferred state tax expense 75 96 99

Deferred change in unrecognized tax expense (benefit) 3 5 ( 10 )

Deferred change in unrecognized tax expense 7 3 5

Deferred ITCs ( 5 ) ( 4 ) ( 5 )

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(Millions of Dollars) 2023 2022 2021

Deferred tax (benefit) expense excluding items below $ ( 138 ) $ 148 $ 237

Deferred tax expense (benefit) excluding items below $ 129 $ ( 138 ) $ 148

Adjustments to deferred income taxes for wind production tax credit cash transfers (a)

Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities ( 188 ) 8 ( 221 )

Tax (benefit) expense allocated to other comprehensive income and other ( 10 ) ( 6 ) 2

Tax benefit allocated to other comprehensive income and other — ( 10 ) ( 6 )

Deferred tax benefit $ ( 249 ) $ ( 140 ) $ ( 79 )

(a) Proceeds from tax credit transfers are included in cash received (paid) for income taxes in the consolidated statement of cash flows.

Components of net deferred tax liability as of Dec.

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Operating lease assets 327 325

Deferred fuel costs 222 262

Pension expense 151 159

Deferred fuel costs 67 222

Total deferred tax liabilities $ 7,911 $ 7,722

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Other employee benefits 117 102

Deferred investment tax credits 16 14

NOL carryforward — 57

NOL and tax credit valuation allowances ( 70 ) ( 62 )

Deferred ITCs 14 15

Other 188 133

7 unchanged sentences

Federal tax credit carryforwards 1,644 1,593

Valuation allowances for federal credit carryforwards ( 10 ) —

State NOL carryforwards 11 1,022

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(a) State tax credit carryforwards are net of federal detriment of $ 20 million and $ 23 million as of Dec.

31, 2022 and 2021.

(b) Valuation allowances for state tax credit carryforwards were net of federal benefit of $ 16 million and $ 17 million as of Dec.

31, 2023 and 2022, respectively.

(b) Valuation allowances for state tax credit carryforwards were net of federal benefit of $ 16 million as of Dec.

31, 2023 and 2022.

Federal carryforward periods expire starting 2032 and state carryforward periods expire starting 2022.

Federal Loss Carryback Claims - In 2020, Xcel Energy identified certain expense related to tax years 2009 - 2011 that qualify for an extended carryback claim.

As a result, a tax benefit of approximately $ 13 million was recognized in 2020.

Federal carryforward periods expire between 2037 and 2043 and state carryforward periods expire starting 2024.

Unrecognized Tax Benefits

2 unchanged sentences

2014 - 2016 March 2025

2019 October 2023

2020 September 2024

Additionally, the statute of limitations related to the federal tax credit carryforwards will remain open until those credits are utilized in subsequent returns.

Further, the statute of limitations related to the additional federal tax loss carryback claim filed in 2020 has been extended.

Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue;

however, the outcome and timing of a resolution is unknown.

31, 2023 the IRS issued its Revenue Agent’s Report related to the federal tax loss carryback claim.

The Company materially agrees with the report and re-recognized the related benefit in December 2023.

State Audits — Xcel Energy files consolidated state tax returns based on income in its major operating jurisdictions and various other state income-based tax returns.

2 unchanged sentences

Colorado 2014 - 2016 March 2026

Colorado 2018 September 2023

Colorado 2019 October 2024

Minnesota 2014 - 2016 September 2025

Minnesota 2018 June 2023

Minnesota 2019 May 2024

Texas 2016, 2018 May 2024

Texas 2017 July 2025

Texas 2018 November 2023

Wisconsin 2016 - 2017 April 2023

Texas 2019 August 2024

Wisconsin 2016 - 2018 May 2024

Wisconsin 2019 October 2024

• In 2020, Minnesota began an audit of tax years 2015 - 2018.

In 2022, the state of Minnesota issued its audit report without any material adjustments.

In 2022, the state of Minnesota issued its audit report and in 2023, the Company agreed to the report without any material adjustments.

• In 2021, Texas began an audit of tax years 2016 - 2019.

17 unchanged sentences

Additions based on tax positions related to the current year 5 7 5

Reductions based on tax positions related to the current year — — ( 2 )

Additions for tax positions of prior years 1 6 2

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NOL and tax credit carryforwards $ ( 35 ) $ ( 40 )

As the IRS progresses its review of the tax loss carryback claims and as state audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $ 40 million in the next 12 months.

As IRS audits resume and as state audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $ 14 million in the next 12 months.

Payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards.

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1 $ ( 4 ) $ ( 3 ) $ ( 3 )

Interest expense related to unrecognized tax benefits ( 1 ) — ( 3 )

Interest benefit (expense) related to unrecognized tax benefits 3 ( 1 ) —

Payable for interest related to unrecognized tax benefits at Dec.

7 unchanged sentences

Certain employees are granted equity awards with a portion subject only to service conditions, and the other portion subject to performance conditions.

A total of 0.2 million time-based equity shares subject only to service conditions were granted annually in 2022, 2021 and 2020.

The total time-based equity shares granted subject only to service conditions was 0.4 million in 2023 and 0.2 million in 2022 and 2021 respectively.

The performance conditions for a portion of the awards granted from 2021 to 2023 are based on relative TSR and environmental goals.

Equity awards with performance conditions will be settled or forfeited after three years , with payouts ranging from zero to 200 % depending on achievement.

Equity awards with performance conditions will be settled after three years , with payouts ranging from zero to 200 % depending on achievement.

Equity award units granted to employees:

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there is no further service or other condition.

Directors may also elect to receive their cash fees as stock equivalent units in lieu of cash.

Directors may also elect to receive their fees as stock equivalent units in lieu of cash.

Stock equivalent units are payable as a distribution of common stock upon a director’s termination of service.

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TSR liability awards are accounted for as liabilities, as historically they are partially settled in cash.

As liability awards, the fair value on which ratable expense is based, as employees vest in their rights to those awards, is remeasured each period based on the current stock price and performance achievement, and final expense is based on the market value of the shares on the date the award is settled.

Compensation costs related to share-based awards:

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(a) Compensation costs for share-based payments are included in O&M expense.

Amount for equity awards (non-cash) amounted to $20 million in 2022.

Amount for equity awards (non-cash) was $ 25 million in 2023.

There was approximately $ 38 million and $ 37 million as of Dec.

7 unchanged sentences

Common Stock Equivalents — Common stock equivalents include commitments to issue common stock related to time-based equity compensation awards.

Stock equivalent units granted to Xcel Energy’s Board of Directors are included in common shares outstanding upon grant date as there is no further service, performance or market condition associated with these.

Restricted stock issued to employees under the Executive Annual Incentive Award Plan is included in common shares outstanding when granted.

7 unchanged sentences

Basic 552 547 539

(a) Diluted common shares outstanding included common stock equivalents of 0.3 million, 0.3 million and 1.1 million shares for 2022, 2021 and 2020, respectively.

(a) Diluted common shares outstanding included common stock equivalents of 0.3 million shares for 2023, 2022 and 2021.

Fair Value of Financial Assets and Liabilities

61 unchanged sentences

Debt securities $ 4 $ 261 $ 269 $ 246 $ 780

Xcel Energy has established rabbi trusts to provide partial funding for future distributions of deferred compensation plan.

Xcel Energy has established rabbi trusts to provide partial funding for future deferred compensation plan distributions.

The fair value of assets held in the rabbi trusts were $ 88 million and $ 80 million at Dec.

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This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale and FTRs.

The most significant derivative positions outstanding at December 31, 2022 and 2021 for this purpose relate to FTR instruments administered by MISO and SPP.

The most significant derivative positions outstanding at Dec.

31, 2023 and 2022 for this purpose relate to FTR instruments administered by MISO and SPP.

These instruments are intended to offset the impacts of transmission system congestion.

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31, 2023, four of Xcel Energy’s ten most significant counterparties for these activities, comprising $ 49 million or 23 % of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings.

Four of the ten most significant counterparties, comprising $ 63 million or 32 % of this credit exposure, were not rated by these external ratings agencies, but based on Xcel Energy’s internal analysis, had credit quality consistent with investment grade.

Two of these significant counterparties, comprising $ 62 million or 31 % of this credit exposure, had credit quality less than investment grade, based on internal analysis.

Six of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities.

Five of the ten most significant counterparties, comprising $ 78 million or 37 % of this credit exposure, were not rated by these external ratings agencies, but based on Xcel Energy’s internal analysis, had credit quality consistent with investment grade.

One of these significant counterparties, comprising $ 45 million or 21 % of this credit exposure, had credit quality less than investment grade, based on internal analysis.

Eight of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities.

Credit Related Contingent Features — Contract provisions for derivative instruments that the utility subsidiaries enter, 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 the applicable utility subsidiary’s credit ratings are downgraded below its investment grade credit rating by any of the major credit rating agencies.

31, 2023 and 2022, there were $ 12 million and $ 4 million, respectively, of derivative liabilities with such underlying contract provisions, respectively.

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.

Also, certain contracts may 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.

31, 2023 and 2022, there were approximately $ 88 million and $ 76 million of derivative liabilities with such underlying contract provisions, respectively.

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Total $ — $ 28

Pre-Tax (Gains) Losses

Reclassified into Income

During the Period from:

Pre-Tax Gains

(Losses) Recognized

During the Period in Income

(Millions of Dollars) Accumulated

Comprehensive Loss Regulatory

Assets and (Liabilities)

Pre-Tax (Gains) Losses Reclassified into Income During the Period from:

Pre-Tax Gains (Losses) Recognized During the Period in Income

(Millions of Dollars) Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities)

Year Ended Dec.

34 unchanged sentences

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.

Presented amounts reflect changes in fair value between FTR auction and settlement dates, but exclude the original auction fair value.

(d) Recorded to cost of natural gas sold and transported.

53 unchanged sentences

Net transactions recorded during the period:

Gains (losses) recognized in earnings (b)

Gains recognized in earnings (b)

Net (losses) gains recognized as regulatory assets and liabilities (a)

( 174 ) 10 112

Net gains recognized as regulatory assets and liabilities (a)

Balance at Dec.

23 unchanged sentences

Xcel Energy recognized net benefit cost for the SERP and nonqualified plans of $ 2 million in 2023 and $ 17 million in 2022.

Xcel Energy’s postretirement health care benefit plan is a continuation of certain welfare benefit programs for current employees.

A full time employee’s date of hire or a retiree’s date of retirement determine eligibility for each of the programs.

Xcel Energy’s investment-return assumption considers the expected long-term performance for each of the asset classes in its pension and postretirement health care portfolio.

1 unchanged sentence

Pension cost determination assumes a forecasted mix of investment types over the long-term.

• Investment returns in 2022 were below the assumed level of 6.49 %.

• Investment returns in 2023 were above the assumed level of 6.93 %.

• Investment returns in 2022 were below the assumed level of 6.49 %.

• Investment returns in 2021 were above the assumed level of 6.49 %.

5 unchanged sentences

State agencies also have issued guidelines to the funding of postretirement benefit costs.

SPS is required to fund postretirement benefit costs for Texas and New Mexico amounts collected in rates.

PSCo is required to fund postretirement benefit costs in irrevocable external trusts that are dedicated to the payment of these postretirement benefits.

SPS is required to fund postretirement benefit plans for Texas and New Mexico equal to amounts collected in rates.

These assets are invested in a manner consistent with the investment strategy for the pension plan.

19 unchanged sentences

(a) See Note 10 for further information on fair value measurement inputs and methods.

Immaterial assets were transferred in or out of Level 3 for 2022.

No assets were transferred in or out of Level 3 for 2021.

Funded Status — Benefit obligations for both pension and postretirement plans decreased from Dec.

31, 2021 to Dec.

31, 2022, due primarily to benefit payments and increases in discount rates used in actuarial valuations.

Comparisons of the actuarially computed benefit obligation, changes in plan assets and funded status of the pension and postretirement health care plans for Xcel Energy are as follows:

Immaterial assets were transferred in or out of Level 3 for 2023 and 2022.

Funded Status — Comparisons of the actuarially computed benefit obligation, changes in plan assets and funded status of the pension and postretirement health care plans for Xcel Energy are as follows:

Pension Benefits Postretirement Benefits

6 unchanged sentences

Plan amendments ( 3 ) 1 — —

Actuarial gain ( 703 ) ( 94 ) ( 85 ) ( 41 )

Actuarial (gain) loss 126 ( 703 ) 14 ( 85 )

Plan participants’ contributions — — 8 8

20 unchanged sentences

Net amounts recognized $ ( 253 ) $ ( 186 ) $ ( 38 ) $ ( 41 )

(a) I ncludes approximately $ 195 million in 2022 and $ 197 million in 2021 of lump-sum benefit payments used in the determination of a settlement charge.

(a) Includes lump-sum benefit payments used in the determination of a settlement charges of $ 195 million of in 2022.

Pension Benefits Postretirement Benefits

34 unchanged sentences

(a) A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost.

There were no settlement charges recorded for the qualified pension plans in 2023.

In 2022 and 2021, as a result of lump-sum distributions during each plan year, Xcel Energy recorded a total pension settlement charge of $ 71 million and $ 59 million, respectively, the majority of which was not recognized due to the effects of regulation.

A total of $ 9 million and $ 7 million was recorded in the consolidated statements of income in 2022 and 2021, respectively.

There were no settlement charges recorded for the qualified pension plans in 2020.

Pension Benefits Postretirement Benefits

33 unchanged sentences

2023 2022 2023 2022

Domestic and international equity securities 33 % 33 % 16 % 15 %

Long-duration fixed income securities 38 % 38 % — % — %

Short-to-intermediate fixed income securities 9 11 71 71

Domestic and international equity securities 31 33 9 16

Alternative investments 20 18 13 12

Short-to-intermediate fixed income securities 9 9 77 71

Total 100 % 100 % 100 % 100 %

The asset allocations above reflect target allocations approved in the calendar year to take effect in the subsequent year.

Plan Amendments — There were no significant plan amendments made in 2022 or 2020 which affected the postretirement benefit obligation.

Plan Amendments — In 2023, Xcel Energy amended the Xcel Energy Pension Plan and Xcel Energy Inc.

Nonbargaining Pension Plan (South) to reduce supplemental social security benefits for all active participants on and after Jan.

There were no significant plan amendments made in 2022 which affected the postretirement benefit obligation.

In 2021, Xcel Energy amended the Xcel Energy Pension Plan and Xcel Energy Inc.

17 unchanged sentences

2029 - 2033 1,131 161 12 149

Voluntary Retirement Program

Incremental to amounts presented above for postretirement benefits, Xcel Energy recognized new postemployment costs and obligations in the fourth quarter of 2023 for employees accepted to a voluntary retirement program.

Utilizing employee information and the following inputs, the estimated costs of the program of $ 34 million for health plan subsidies and $ 5 million for other medical benefits, each commencing in 2024, were recognized in the fourth quarter of 2023.

These unfunded obligations are presented in other current liabilities and noncurrent pension and employee benefit obligations in the consolidated balance sheet as of Dec.

Significant Assumptions to Measure Benefit Obligations:

Discount rate for year-end valuation 5.50 %

Mortality table PRI-2012

Health care costs trend rate and ultimate trend assumption 7.00 %

Defined Contribution Plans

Xcel Energy maintains 401(k) and other defined contribution plans that cover most employees.

Total expense to these plans was approximately $ 46 million in 2022, $ 43 million in 2021 and $ 42 million in 2020.

Total expense to these plans was approximately

$49 million in 2023, $ 46 million in 2022 and $ 43 million in 2021.

Multiemployer Plans

1 unchanged sentence

These plans provide pension and postretirement health care benefits to certain union employees who may perform services for multiple employers and do not participate in the NSP-Minnesota and NSP-Wisconsin sponsored pension and postretirement health care plans.

Contributing to these types of plans creates risk that differs from providing benefits under NSP-Minnesota and NSP-Wisconsin sponsored plans, in that if another participating employer ceases to contribute to a multiemployer plan, additional unfunded obligations may need to be funded over time by remaining participating employers.

Contributing to these types of plans creates risk that differs from providing benefits under NSP-Minnesota and NSP-Wisconsin sponsored plans, in that if another participating employer ceases to contribute to a multiemployer pension plan, additional unfunded obligations may need to be funded over time by remaining participating employers.

Commitments and Contingencies

12 unchanged sentences

One case remains active which includes a multi-district litigation matter consisting of a Wisconsin purported class (Arandell Corp.).

The Court issued a ruling on June 30, 2022 granting plaintiffs’ class certification.

Defendants will work together to prepare and file a petition appealing the class certification ruling to the Seventh Circuit.

Xcel Energy has concluded that a loss is remote for the remaining lawsuit.

The Court issued a ruling in June 2022 granting plaintiffs’ class certification.

In April 2023, the Seventh Circuit Court of Appeals heard the defendants’ appeal challenging whether the district court properly assessed class certification.

A decision relating to class certification is expected imminently.

Xcel Energy considers the reasonably possible loss associated with this litigation to be immaterial.

Comanche Unit 3 Litigation — In 2021, CORE filed a lawsuit in Denver County District Court, alleging PSCo breached ownership agreement terms by failing to operate Comanche Unit 3 in accordance with prudent utility practices.

In January 2022, the Court granted PSCo’s motion to dismiss CORE’s claims for unjust enrichment, declaratory judgment and damages for replacement power costs.

In April 2022, CORE filed a supplement to include the January 2022 outage and damages related to this event.

In April 2022, CORE filed a supplement to include damages related to a 2022 outage.

Also in 2022, CORE sent notice of withdrawal from the ownership agreement based on the same alleged breaches.

In February 2023, CORE disclosed its expert witness, who estimated damages incurred of $ 270 million.

Also in February 2023, the court granted PSCo’s motion precluding CORE from seeking damages related to its withdrawal as part of the lawsuit.

PSCo continues to believe CORE's claims are without merit and disputes CORE’s right to withdraw.

In February 2023, the court granted PSCo’s motion precluding CORE from seeking damages related to its withdrawal as part of the lawsuit.

In October 2023, the jury ruled that CORE may not withdraw as a joint owner of the facility but awarded CORE lost power damages of $ 26 million.

PSCo recognized a $ 34 million loss for the verdict in the third quarter of 2023, including estimated interest and other costs.

PSCo intends to file an appeal of this decision.

Marshall Wildfire Litigation — In December 2021, a wildfire ignited in Boulder County, Colorado (the “Marshall Fire”), which burned over 6,000 acres and destroyed or damaged over 1,000 structures.

On June 8, 2023, the Boulder County Sheriff’s Office released its Marshall Fire Investigative Summary and Review and its supporting documents (the “Sheriff’s Report”).

According to an October 2022 statement from the Colorado Insurance Commissioner, the Marshall Fire is estimated to have caused more than $ 2 billion in property losses.

According to the Sheriff’s Report, on Dec.

30, 2021, a fire ignited on a residential property in Boulder, Colorado, located in PSCo’s service territory, for reasons unrelated to PSCo’s power lines.

According to the Sheriff’s 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, also located in PSCo’s service territory.

According to the Sheriff’s Report, the second ignition started approximately 80 to 110 feet away from PSCo’s power lines in the area.

The Sheriff’s Report states that the most probable cause of the second ignition was hot particles discharged from PSCo’s power lines after one of the power lines detached from its insulator in strong winds, and further states that it cannot be ruled out that the second ignition was caused by an underground coal fire.

According to the Sheriff’s Report, no design, installation or maintenance defects or deficiencies were identified on PSCo’s electrical circuit in the area of the second ignition.

PSCo disputes that its power lines caused the second ignition .

PSCo is aware of 302 complaints, most of which have also named Xcel Energy Inc.

and Xcel Energy Services, Inc.

as additional defendants, relating to the Marshall Fire.

The complaints are on behalf of at least 4,047 plaintiffs, and one complaint is filed on behalf of a putative class of first responders who allegedly were exposed to the threat of serious bodily injury, or smoke, soot and ash from the Marshall Fire.

The complaints generally allege that PSCo’s equipment ignited the Marshall Fire and assert various causes of action under Colorado law, including negligence, premises liability, trespass, nuisance, wrongful death, willful and wanton conduct, negligent infliction of emotional distress, loss of consortium and inverse condemnation.

In addition to seeking compensatory damages, certain of the complaints also seek exemplary damages.

In September 2023, the Boulder County District Court Judge consolidated eight lawsuits that were pending at that time into a single action for pretrial purposes and has subsequently consolidated additional lawsuits that have been filed.

At the case management conference in February 2024, a trial date was set for September 2025.

Colorado courts do not apply strict liability in determining an electric utility company’s liability for fire-related damages.

For inverse condemnation claims, Colorado courts assess whether a defendant acted with intent to take a plaintiff’s property or intentionally took an action which has the natural consequence of taking the property.

For negligence claims, Colorado courts look to whether electric power companies have operated their system with a heightened duty of care consistent with the practical conduct of its business, and liability does not extend to occurrences that cannot be reasonably anticipated.

Colorado law does not impose joint and several liability in tort actions.

Instead, under Colorado law, a defendant is liable for the degree or percentage of the negligence or fault attributable to that defendant, except where the defendant conspired with another defendant.

A jury’s verdict in a Colorado civil case must be unanimous.

Under Colorado law, in a civil action other than a medical malpractice action, the total award for noneconomic loss is capped at $ 0.6 million per defendant for claims that accrued at the time of the Marshall Fire unless the court finds justification to exceed that amount by clear and convincing evidence, in which case the maximum doubles.

Colorado law caps punitive or exemplary damages to an amount equal to the amount of the actual damages awarded to the injured party, except the court may increase any award of punitive damages to a sum up to three times the amount of actual damages if the conduct that is the subject of the claim has continued during the pendency of the case or the defendant has acted in a willful and wanton manner during the action which further aggravated plaintiff’s damages.

In the event Xcel Energy Inc.

or PSCo was found liable related to this litigation and were required to pay damages, such amounts could exceed our insurance coverage of approximately $ 500 million and have a material adverse effect on our financial condition, results of operations or cash flows.

However, due to uncertainty as to the cause of the fire and the extent and magnitude of potential damages, Xcel Energy Inc.

and PSCo are unable to estimate the amount or range of possible losses in connection with the Marshall Fire.

Rate Matters and Other

3 unchanged sentences

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.

Sherco — In 2018, NSP-Minnesota and Southern Minnesota Municipal Power Agency (Co-owner of Sherco Unit 3) reached a settlement with GE related to a 2011 incident, which damaged the turbine at Sherco Unit 3 and resulted in an extended outage for repair.

NSP-Minnesota notified the MPUC of its proposal to refund settlement proceeds to customers through the fuel clause adjustment.

Sherco — In 2018, NSP-Minnesota and SMMPA (Co-owner of Sherco Unit 3) reached a settlement with GE related to a 2011 incident, which damaged the turbine at Sherco Unit 3 and resulted in an extended outage.

NSP-Minnesota notified the MPUC of its proposal to refund settlement proceeds to customers through the FCA.

In March 2019, the MPUC approved NSP-Minnesota’s settlement refund proposal.

1 unchanged sentence

In February 2020, the Minnesota Court of Appeals affirmed the district court’s judgment in favor of GE.

In March 2020, NSP-Minnesota’s insurers filed a petition seeking additional review by the Minnesota Supreme Court.

In April 2020, the Minnesota Supreme Court denied the insurers’ petition for further review, ending the litigation.

In January 2021, the Minnesota Office of the Attorney General and DOC recommended that NSP-Minnesota refund approximately $ 17 million of replacement power costs previously recovered through the fuel clause adjustment.

NSP-Minnesota subsequently filed its response, asserting that it acted prudently in connection with the Sherco Unit 3 outage, the MPUC has previously disallowed $ 22 million of related costs and no additional refund or disallowance is appropriate.

In January 2021, the OAG and DOC recommended that NSP-Minnesota refund approximately $ 17 million of replacement power costs previously recovered through the FCA.

NSP-Minnesota responded that it acted prudently in connection with the Sherco Unit 3 outage, the MPUC has previously disallowed $ 22 million of related costs and no additional refund or disallowance is appropriate.

In July 2022, the MPUC referred the matter to the Office of Administrative Hearings to conduct a contested case on the prudence of the replacement power costs incurred by NSP-Minnesota.

In 2023, NSP-Minnesota and various parties filed recommendations, including the DOC which recommended a $ 56 million customer refund.

The Xcel Large Industrial customer group recommended a refund of $ 72 million.

A final decision by the MPUC is expected in mid-2024.

5 unchanged sentences

The second complaint requested, for a subsequent time period, a base ROE reduction from 12.38 % to 8.67 %.

The FERC subsequently issued various related orders (including Opinion Nos.

569, 569A and 569B) related to ROE methodology/calculations and timing.

The FERC subsequently issued various related orders related to ROE methodology/calculations and timing.

NSP-Minnesota has processed refunds to customers for applicable complaint periods based on the ROE in the most recent applicable opinions.

3 unchanged sentences

Additional exposure, if any related to this matter is expected to be immaterial.

SPP OATT Upgrade Costs — Costs of transmission upgrades may be recovered from other SPP customers whose transmission service depends on capacity enabled by the upgrade under the SPP OATT.

SPP had not been charging its customers for these upgrades, even though the SPP OATT had allowed SPP to do so since 2008.

In 2016, the FERC granted SPP’s request to recover these previously unbilled charges and SPP subsequently billed SPS approximately $ 13 million.

In 2018, SPS’ appeal to the D.C.

Circuit over the FERC rulings granting SPP the right to recover previously unbilled charges was remanded to the FERC.

In 2019, the FERC reversed its 2016 decision and ordered SPP to refund charges retroactively collected from its transmission customers, including SPS, related to periods before September 2015.

In 2020, SPP and Oklahoma Gas & Electric separately filed petitions for review of the FERC’s orders at the D.C.

In 2021, the D.C.

Circuit issued a decision denying these appeals and upholding the FERC’s orders.

Refunds received by SPS are expected to be given back to SPS customers through future rates.

In 2017, SPS filed a separate related complaint asserting SPP assessed upgrade charges to SPS in violation of the SPP OATT.

In 2018, the FERC issued an order denying the SPS complaint.

SPS filed a request for rehearing in 2018.

The FERC subsequently issued a tolling order granting a rehearing for further consideration.

If SPS’ complaint results in additional charges or refunds, SPS will seek to recover or refund the amount through future SPS customer rates.

In 2020, SPS filed a petition for review of the FERC’s 2018 orders at the D.C.

In February 2022, FERC issued an order rejecting SPS’ request for hearing.

SPS has appealed that order.

That appeal has been combined with SPS’ prior appeal.

Wind Operating Commitments — PUCT and NMPRC orders related to the Hale and Sagamore wind projects included certain operating and savings minimums.

In general, annual generation must exceed a net capacity factor of 48 %.

If annual generation is below the guaranteed level, SPS would be obligated to refund an amount equal to foregone PTCs and fuel savings.

Additionally, retail customer savings must exceed project costs included in base rates over the first ten years of operations.

SPS would be required to refund excess costs, if any, after ten years of operations.

31, 2022, the full-year net capacity factor exceeded the guaranteed level, resulting in no refund liability for 2022.

Environmental

5 unchanged sentences

and third-party sites, such as landfills, for which one or more of Xcel Energy Inc.’s subsidiaries are alleged to have sent wastes to that site.

Historical MGP, Landfill and Disposal Sites

Xcel Energy is currently investigating, remediating or performing post-closure actions at 9 historical MGP, landfill or other disposal sites across its service territories, excluding sites that are being addressed under current coal ash regulations (see below).

Xcel Energy has recognized its best estimate of costs/liabilities from final resolution of these issues;

MGP, Landfill and Disposal Sites

Xcel Energy is investigating, remediating or performing post-closure actions at 12 historical MGP, landfill or other disposal sites across its service territories, excluding sites that are being addressed under current coal ash regulations (see below).

Xcel Energy has recognized approximately $ 20 million of costs/liabilities from final resolution of these issues;

however, the outcome and timing are unknown.

1 unchanged sentence

Environmental Requirements — Water and Waste

Coal Ash Regulation — Xcel Energy’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste.

Under the CCR Rule, utilities are required to complete groundwater sampling around their applicable landfills and surface impoundments as well as perform corrective actions where offsite groundwater has been impacted.

31, 2022, Xcel Energy had eight regulated ash units in operation.

PSCo is currently exploring an agreement with a third party that would excavate and process ash for beneficial use (at two sites) and perform restoration at one site at a cost of approximately $ 45 million.

Coal Ash Regulation — Xcel Energy’s operations are subject to federal and state regulations that impose requirements for handling, storage, treatment and disposal of solid waste, including the CCR Rule.

As a specific requirement of the CCR Rule, utilities must complete groundwater sampling around their applicable landfills and surface impoundments as well as perform corrective actions where offsite groundwater has been impacted.

If certain impacts to groundwater are detected, utilities are required to perform additional groundwater investigations and/or perform corrective actions beginning with an Assessment of Corrective Measures.

Investigation and/or corrective action related to groundwater impacts are currently underway at four Xcel Energy sites under the federal CCR program at a current estimated cost of at least $ 40 million.

A liability has been recorded and is expected to be fully recoverable through regulatory mechanisms.

For required coal ash disposal, PSCo has executed an agreement with a third party that will excavate and process ash for beneficial use (at two sites) at a cost of approximately $ 45 million.

An estimated liability has been recorded and amounts are expected to be fully recoverable through regulatory mechanisms.

Investigation and feasibility studies for additional corrective action related to offsite groundwater are ongoing (three sites).

While the results are uncertain, additional costs are estimated to be up to $ 35 million.

A liability has been recorded for the portion estimable/probable and are expected to be fully recoverable through regulatory mechanisms.

Federal Clean Water Act Section 316(b) — The Federal Clean Water Act requires the EPA to regulate cooling water intake structures to assure they reflect the best technology available for minimizing impingement and entrainment of aquatic species.

Estimated capital expenditures of approximately $ 45 million may be required for NSP-Minnesota to comply with the requirements pending approval of mitigation plans from the MPCA.

Estimated capital expenditures of approximately $ 50 million may be required to comply with the requirements.

Xcel Energy anticipates these costs will be recoverable through regulatory mechanisms.

Environmental Requirements — Air

Reasonable Progress Rule and BART — In 2016, the EPA adopted a final rule establishing a federal implementation plan for reasonable further progress under the regional haze program for the state of Texas.

The rule imposes SO 2 emission limitations which would require the installation of dry scrubbers on Tolk Units 1 and 2;

compliance would have been required by February 2021.

SPS appealed the EPA’s decision and obtained a stay of the final rule.

In 2017, the EPA adopted a final BART rule for Texas.

Under that rule, Harrington Units 1, 2, and 3 and Tolk Units 1 and 2 participate in intrastate SO2 budget and trading program.

The rule also implemented participation in a federal ozone season NOx budget and trading program, named the Cross State Air Pollution Rule.

The EPA is reconsidering this rule.

Clean Air Act NOx Allowance Allocations — In June 2023, the EPA published final regulations for ozone under the “Good Neighbor” provisions of the Clean Air Act.

The final rule applies to generation facilities in Minnesota, Texas and Wisconsin, as well as other states outside of our service territory.

The rule establishes an allowance trading program for NOx that will impact subject Xcel Energy fossil fuel-fired electric generating facilities.

Subject facilities will have to secure additional allowances, install NOx controls and/or develop a strategy of operations that utilizes the existing allowance allocations.

Guidelines are also established for allowance banking and emission limit backstops.

While the financial impacts of the final rule are uncertain and dependent on market forces and anticipated generation, Xcel Energy anticipates the annual costs could be significant, but would be recoverable through regulatory mechanisms.

SPS and NSP-Minnesota have joined other companies in litigation challenging the EPA’s disapproval of Texas and Minnesota state implementation plans.

Currently, the regulation is under a judicial stay for both Texas and Minnesota.

The regulation may become applicable in those states in the future, depending on the outcome of the litigation.

The rule is in effect in NSP-Wisconsin but has been managed without the additional need for allowances.

In February 2024, the EPA proposed to partially disapprove New Mexico’s state implementation plan and bring New Mexico into the federal Good Neighbor plan.

Xcel Energy continues to evaluate impacts to generation units at SPS.

Regional Haze Rules — The EPA has proposed rules addressing Regional Haze compliance in Texas, which address requirements for reasonable progress at Tolk and BART at Harrington.

As proposed, these rules would not require additional controls at either facility, in part due to the conversion of Harrington to gas in 2025 and the planned retirement of Tolk.

These rules will be monitored until final versions are published.

AROs — AROs have been recorded for Xcel Energy’s assets.

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1, 2023 Amounts Incurred (a)

Accretion Cash Flow Revisions (b)

Amounts Settled Accretion Cash Flow Revisions (b)

Nuclear $ 2,160 $ — $ — $ 105 $ ( 158 ) $ 2,107

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Miscellaneous 3 — — — — 3

Miscellaneous 1 — — — 1

Miscellaneous 2 — — — 2

Total liability $ 3,380 $ 10 $ ( 1 ) $ 154 $ ( 325 ) $ 3,218

(a) Amounts incurred related to the wind farms placed in service in 2022 for NSP-Minnesota (Dakota Range and Rock Aetna) and steam production pond remediation costs for PSCo.

(a) Amounts incurred relate to the Northern Wind farm placed in service in NSP-Minnesota.

(b) In 2023, AROs were revised for changes in timing and estimates of cash flows.

Revisions in steam, hydro and other production AROs were primarily related to changes in cost estimates for remediation of ash containment facilities.

Changes in gas transmission and distribution AROs were primarily related to changes in labor rates coupled with increased gas line mileage and number of services.

Revisions in wind and nuclear AROs were primarily incurred due to changes in useful lives.

Changes in gas transmission and distribution AROs were a result of updated gas line mileage and number of services, as well as changes to inflation and discount rate assumptions.

of Dollars) Jan.

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Distribution 47 — 1 — 48

Transmission and distribution 252 — 10 9 271

Miscellaneous 3 — — 5 8

Miscellaneous 1 — — — 1

Transmission and distribution (c)

279 — 12 16 307

Miscellaneous 3 — — — 3

Total liability $ 3,151 $ 59 $ 148 $ 22 $ 3,380

(a) Amounts incurred related to the wind farms placed in service in 2021 for NSP-Minnesota (Blazing Star 2, Mower and Freeborn) and removal of a utility scale battery asset in NSP-Minnesota.

(a) Amounts incurred related to the wind farms placed in service in 2022 for NSP-Minnesota (Dakota Range and Rock Aetna) and steam production pond remediation costs for PSCo.

(b) In 2022, AROs were revised for changes in timing and estimates of cash flows.

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Changes in gas transmission and distribution AROs were primarily related to changes in labor rates coupled with increased gas line mileage and number of services.

Indeterminate AROs — Outside of the recorded asbestos AROs, other plants or buildings may contain asbestos due to the age of many of Xcel Energy’s facilities, but no confirmation or measurement of the cost of removal could be determined as of Dec.

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The coverage limits are $ 2.8 billion for each of NSP-Minnesota’s two nuclear plant sites.

NEIL also provides business interruption insurance coverage up to $ 350 million, including the cost of replacement power during prolonged accidental outages of nuclear generating units.

NEIL also provides business interruption insurance coverage up to $ 490 million and $ 420 million at Monticello and Prairie Island, respectively, including the cost of replacement power during prolonged accidental outages of nuclear generating units.

Premiums are expensed over the policy term.

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The Monticello dry-cask storage facility currently stores all 30 of the authorized canisters.

The PI dry-cask storage facility currently stores 50 of the 64 authorized casks.

Monticello’s future spent fuel will continue to be placed in its spent fuel pool.

The decommissioning plan addresses the disposition of spent fuel at the end of the licensed life.

A CON for additional storage at the Monticello site has been filed with the MPUC, to support possible life extension to 2040.

NSP-Minnesota expects a decision by year-end 2023.

In October 2023, a CON for additional storage at the Monticello site was approved by the MPUC to support possible life extension to 2040.

The PI dry-cask storage facility currently stores 50 of the 64 authorized casks.

In February 2023, NSP-Minnesota filed a CON with the MPUC for additional storage at PI to support possible life extension to 2054.

Regulatory Plant Decommissioning Recovery — Decommissioning activities for NSP-Minnesota’s nuclear facilities are planned to begin at the end of each unit’s authorized retirement dates, which can be different than the currently approved NRC operating licenses.

3 unchanged sentences

NRC approval of the extension is pending.

In February 2023, NSP-Minnesota also filed an application with the NDPSC for an Advance Determination of Prudence for continued operation of the Monticello Plant until at least 2040.

A decision is expected in 2024.

Future decommissioning costs of nuclear facilities are estimated through triennial periodic studies that assess the costs and timing of planned nuclear decommissioning activities for each unit.

The 2020 nuclear decommissioning filing was approved by the MPUC and became effective in 2022.

The MPUC ordered the next triennial decommissioning study be filed by Dec.

Obligations for decommissioning are expected to be funded 100 % by the external decommissioning trust fund.

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Therefore, the present value of future lease payments is generally calculated using the applicable Xcel Energy subsidiary’s estimated incremental borrowing rate (weighted average of 4.4 %).

Xcel Energy has elected the practical expedient under which non-lease components, such as asset maintenance costs included in payments, are not deducted from minimum lease payments for the purposes of lease accounting and disclosure.

For currently exiting asset classes, Xcel Energy has elected the practical expedient under which non-lease components, such as asset maintenance costs included in payments, are not deducted from lease payments for the purposes of lease accounting and disclosure.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recognized on the consolidated balance sheet.

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Total finance lease expense $ 18 $ 20 $ 24

(a) Includes short-term lease expense of $ 6 million for 2022 and $5 million for 2021 and 2020.

(a) Includes short-term lease expense of $ 3 million, $ 6 million, and $ 5 million for 2023, 2022 and 2021, respectively.

(b) PPA capacity payments are included in electric fuel and purchased power on the consolidated statements of income.

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Non-Lease PPAs — NSP-Minnesota, PSCo and SPS have entered into PPAs with other utilities and energy suppliers for purchased power to meet system load and energy requirements, operating reserve obligations and as part of wholesale and commodity trading activities.

In general, these agreements provide for energy payments, based on actual energy delivered and capacity payments.

Certain PPAs, accounted for as executory contracts with various expiration dates through 2033, contain minimum energy purchase commitments.

In general, these agreements provide for energy payments, based on actual energy delivered, and may also include capacity payments.

Certain non-lease PPAs with various expiration dates through 2033, contain minimum energy purchase commitments.

Total energy payments on those contracts were $ 214 million, $ 182 million and $ 149 million in 2023, 2022 and 2021, respectively.

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The effects of price adjustments on financial results are mitigated through purchased energy cost recovery mechanisms.

31, 2022, the estimated future payments for capacity and energy that the utility subsidiaries of Xcel Energy are obligated to purchase pursuant to these executory contracts, subject to availability, were as follows:

31, 2023, the estimated future payments for capacity and energy that the utility subsidiaries of Xcel Energy are obligated to purchase pursuant to these non-lease contracts, subject to availability, were as follows:

(Millions of Dollars) Capacity Energy (a)

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These contracts expire between 2024 and 2060.

Xcel Energy is required to pay additional amounts depending on actual quantities shipped under these agreements.

Xcel Energy is required to pay additional amounts depending on actual quantities delivered under these agreements.

Estimated minimum purchases under these contracts as of Dec.

(Millions of Dollars) Coal Nuclear fuel Natural gas supply Natural gas supply and transportation

(Millions of Dollars) Coal Nuclear fuel Natural gas supply Natural gas storage and transportation

2024 $ 350 $ 142 $ 339 $ 311

6 unchanged sentences

PPAs — Under certain PPAs, NSP-Minnesota, PSCo and SPS purchase power from IPPs for which the utility subsidiaries are required to reimburse fuel costs, or to participate in tolling arrangements under which the utility subsidiaries procure the natural gas required to produce the energy that they purchase.

Xcel Energy has determined that certain IPPs are VIEs, however it is not subject to risk of loss from the operations of these entities, and no significant financial support is required other than contractual payments for energy and capacity.

Xcel Energy has determined that certain IPPs are VIEs, however Xcel Energy is not subject to risk of loss from the operations of these entities, and no significant financial support is required other than contractual payments for energy and capacity.

In addition, certain solar PPAs provide an option to purchase emission allowances or sharing provisions related to production credits generated by the solar facility under contract.

1 unchanged sentence

Xcel Energy evaluated each of these VIEs for possible consolidation, including review of qualitative factors such as the length and terms of the contract, control over O&M, control over dispatch of electricity, historical and estimated future fuel and electricity prices and financing activities.

Xcel Energy concluded that these entities are not required to be consolidated in its consolidated financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance.

The utility subsidiaries had approximately 3,961 MW and 4,062 MW of capacity under these long-term PPAs at Dec.

Xcel Energy concluded that these entities are not required to be consolidated in its consolidated financial statements because Xcel Energy does not have the power to direct the activities that most significantly impact the entities’ economic performance.

The utility subsidiaries had approximately 3,751 MW and 3,961 MW of capacity under long-term PPAs at Dec.

31, 2023 and 2022, respectively, with entities that have been determined to be VIEs.

35 unchanged sentences

1 $ ( 54 ) $ ( 39 ) $ ( 93 )

Other comprehensive gain before reclassifications 16 5 21

Other comprehensive loss before reclassifications ( 2 ) ( 4 ) ( 6 )

Losses reclassified from net accumulated other comprehensive loss:

1 unchanged sentence

Amortization of net actuarial loss — 2 (b)

Net current period other comprehensive income 21 9 30

Net current period other comprehensive income (loss) 1 ( 2 ) ( 1 )

Accumulated other comprehensive loss at Dec.

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Xcel Energy has the following reportable segments:

• Regulated Electric — The regulated electric utility segment generates, transmits and distributes electricity in Minnesota, Wisconsin, Michigan, North Dakota, South Dakota, Colorado, Texas and New Mexico.

• Regulated Electric — The regulated electric utility segment generates, purchases, transmits, distributes and sells electricity in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin.

In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States.

The regulated electric utility segment also includes wholesale commodity and trading operations.

• Regulated Natural Gas — The regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of Minnesota, Wisconsin, North Dakota, Michigan and Colorado.

• Regulated Natural Gas — The regulated natural gas utility segment purchases, transports, stores, distributes and sells natural gas primarily in portions of Colorado, Michigan, Minnesota, North Dakota and Wisconsin.

Xcel Energy also presents All Other, which includes operating segments with revenues below the necessary quantitative thresholds.

Those operating segments primarily include steam revenue, appliance repair services, non-utility real estate activities, revenues associated with processing solid waste into refuse-derived fuel, investments in rental housing projects that qualify for low-income housing tax credits and the operations of MEC until July 2020.

Those operating segments primarily include steam revenue, appliance repair services, non-utility real estate activities, revenues associated with processing solid waste into RDF, investments in rental housing projects that qualify for low-income housing tax credits and equity method investments in EIP funds.

Xcel Energy had equity method investments of $ 244 million and $ 219 million as of Dec.

13 unchanged sentences

Interest charges and financing costs 670 636 568

Income tax (benefit) expense ( 162 ) ( 96 ) 1

Income tax benefit ( 135 ) ( 162 ) ( 96 )

Net income 1,686 1,631 1,478

18 unchanged sentences

Interest charges and financing costs 1,004 925 816

Income tax (benefit) expense ( 135 ) ( 70 ) ( 6 )

Income tax benefit ( 146 ) ( 135 ) ( 70 )

Net income 1,771 1,736 1,597

Workforce Reduction

In 2023, Xcel Energy implemented workforce actions to align resources and investments with evolving business and customer needs, and streamline the organization for long-term success.

In September 2023, Xcel Energy announced a voluntary retirement program to a group of eligible non-bargaining employees, with an enhanced retirement package including certain health care and cash benefits for accepted employees.

Approximately 400 employees retired under this program in December 2023.

In November 2023, Xcel Energy, Inc.

also reduced its non-bargaining workforce by approximately 150 employees through an involuntary severance program.

In the fourth quarter of 2023, Xcel Energy recorded total expense of $ 72 million related to these workforce actions, primarily related to the estimated cost of future health plan subsidies and other medical benefits for the voluntary retirement program, as well as severance and other employee payouts and legal and other professional fees.

For further information on the estimated costs and obligations for future health plan subsidies and other medical benefits, see Note 11 to the consolidated financial statements.

ITEM 9 — CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data