XCEL ENERGY INCXEL

XCEL ENERGY INC Debt Disclosure

10-KFiled Feb 25, 202613 min read
Short-Term Borrowings
Short-Term Debt — Xcel Energy meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facilities and term loan agreements.
Commercial paper and other borrowings outstanding:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2025Year Ended Dec. 31
202520242023
Borrowing limit$4,750 $4,750 $3,550 $3,550 
Amount outstanding at period end1,550 1,550 695 785 
Average amount outstanding1,622 1,026 508 491 
Maximum amount outstanding2,965 2,965 1,314 1,241 
Weighted average interest rate, computed on a daily basis4.14 %4.41 %5.47 %5.12 %
Weighted average interest rate at period end3.95 3.95 4.64 5.52 
Bilateral Credit Agreement — In April 2025, NSP-Minnesota’s uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit.
As of Dec. 31, 2025, NSP-Minnesota had $69 million outstanding letters of credit under the $75 million Bilateral Credit Agreement.
Letters of Credit — Xcel Energy uses letters of credit, typically with terms of one year, to provide financial guarantees for certain operating obligations. As of Dec. 31, 2025 and 2024, there were $92 million and $42 million of letters of credit outstanding under the credit facilities, respectively. Amounts approximate their fair value.
Credit Facilities — In order to use commercial paper programs to fulfill short-term funding needs, Xcel Energy Inc. and its utility subsidiaries must have revolving credit facilities in place at least equal to the amount of their respective commercial paper borrowing limits and cannot issue commercial paper exceeding available capacity under these credit facilities.
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.
In May 2025, 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 $4.75 billion. The amended credit agreements mature in December 2029.
Features of the credit facilities:
Debt-to-Total Capitalization Ratio (a)
Amount Facility May Be Increased (millions of dollars) (b)
Additional Periods for Which a One-Year Extension May Be Requested (c)
20252024
Xcel Energy Inc. (d)
59.80 %59.80 %$450 2 
NSP-Minnesota50.00 47.00 170 2 
NSP-Wisconsin47.00 47.10 N/A1 
SPS47.20 46.60 60 2 
PSCo44.90 45.20 170 2 
(a)Each credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65% (70% for Xcel Energy Inc.).
(b)Amounts authorized by state commissions in respective jurisdictions.
(c)All extension requests are subject to majority bank group approval.
(d)The Xcel Energy Inc. credit facility has a cross-default provision that Xcel Energy Inc. would be in default on its borrowings under the facility if it or any of its subsidiaries (except NSP-Wisconsin as long as its total assets do not comprise more than 15% of Xcel Energy’s consolidated total assets) default on indebtedness in an aggregate principal amount exceeding $75 million.
If Xcel Energy Inc. or its utility subsidiaries do not comply with the covenant, an event of default may be declared, and if not remedied, any outstanding amounts due under the facility can be declared due by the lender. As of Dec. 31, 2025, Xcel Energy Inc. and its subsidiaries were in compliance with the financial covenant.
Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available as of Dec. 31, 2025:
(Millions of Dollars)
Credit Facility (a)
Drawn (b)
Available
Xcel Energy Inc.$2,000 $850 $1,150 
PSCo1,200 308 892 
NSP-Minnesota800 264 536 
SPS600 220 380 
NSP-Wisconsin150 — 150 
Total$4,750 $1,642 $3,108 
(a)These credit facilities mature 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 facilities. Xcel Energy Inc. and its utility subsidiaries had no direct advances on facilities outstanding as of Dec. 31, 2025 and 2024.
Term Loan Agreement — In January 2026, Xcel Energy Inc. entered into a $1.5 billion, 364-Day Delayed Draw Term Loan Agreement and borrowed $750 million under the term loan facility. The loan is unsecured and matures Jan. 30, 2027. The term loan includes one financial covenant, requiring Xcel Energy’s consolidated funded debt to total capitalization ratio to be less than or equal to 70 percent. Interest is at a rate equal to the Term SOFR rate, plus 85.0 basis points, or an alternate base rate.
Long-Term Borrowings and Other Financing Instruments
Generally, the property of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS is subject to the liens of their respective first mortgage indentures for the benefit of bondholders.
Debt premiums, discounts and expenses are amortized over the life of the related debt. The premiums, discounts and expenses for refinanced debt are deferred and amortized over the life of the new issuance.
Long-term debt obligations for Xcel Energy Inc. and its utility subsidiaries as of Dec. 31 (in millions of dollars, except interest rates):
Xcel Energy Inc.
Financing InstrumentInterest RateMaturity Date20252024
Unsecured senior notes3.30 %June 1, 2025$— $250 
Unsecured senior notes3.30 June 1, 2025— 350 
Unsecured senior notes3.35 Dec. 1, 2026500 500 
Unsecured senior notes1.75 March 15, 2027500 500 
Unsecured senior notes4.00 June 15, 2028130 130 
Unsecured senior notes (a)
4.75 March 21, 2028350 — 
Unsecured senior notes4.00 June 15, 2028500 500 
Unsecured senior notes2.60 Dec. 1, 2029500 500 
Unsecured senior notes3.40 June 1, 2030600 600 
Unsecured senior notes2.35 Nov. 15, 2031300 300 
Unsecured senior notes4.60 June 1, 2032700 700 
Unsecured senior notes5.45 Aug. 15, 2033800 800 
Unsecured senior notes (b)
5.50 March 15, 2034800 800 
Unsecured senior notes (a)
5.60 April 15, 2035750 — 
Unsecured senior notes6.50 July 1, 2036300 300 
Unsecured senior notes4.80 Sept. 15, 2041250 250 
Unsecured senior notes3.50 Dec. 1, 2049500 500 
Junior subordinated notes (a) (c)
6.25 Oct. 15, 2085900 — 
Unamortized discount(10)(9)
Unamortized debt issuance cost(38)(34)
Current maturities (500)(600)
Total long-term debt$7,832 $6,337 
(a)2025 financing.
(b)2024 financing.
(c)The notes may be redeemed at par value on or after Oct. 15, 2030.
NSP-Minnesota
Financing InstrumentInterest RateMaturity Date20252024
First mortgage bonds7.125 %July 1, 2025$— $250 
First mortgage bonds6.50 March 1, 2028150 150 
First mortgage bonds2.25 April 1, 2031425 425 
First mortgage bonds (a)
5.05 May 15, 2035600 — 
First mortgage bonds5.25 July 15, 2035250 250 
First mortgage bonds6.25 June 1, 2036400 400 
First mortgage bonds6.20 July 1, 2037350 350 
First mortgage bonds5.35 Nov. 1, 2039300 300 
First mortgage bonds4.85 Aug. 15, 2040250 250 
First mortgage bonds3.40 Aug. 15, 2042500 500 
First mortgage bonds4.125 May 15, 2044300 300 
First mortgage bonds4.00 Aug. 15, 2045300 300 
First mortgage bonds3.60 May 15, 2046350 350 
First mortgage bonds3.60 Sept. 15, 2047600 600 
First mortgage bonds2.90 March 1, 2050600 600 
First mortgage bonds2.60 June 1, 2051700 700 
First mortgage bonds3.20 April 1, 2052425 425 
First mortgage bonds4.50 June 1, 2052500 500 
First mortgage bonds5.10 May 15, 2053800 800 
First mortgage bonds (b)
5.40 March 15, 2054700 700 
First mortgage bonds (a)
5.65 May 15, 2055500 — 
Other long-term debt1 2 
Long-term debt — related parties principal amount outstanding2.60 - 4.1252044 - 2052(953)(166)
Unamortized discount(50)(49)
Unamortized debt issuance cost(90)(80)
Current maturities— (250)
Total long-term debt$7,908 $7,607 
(a)2025 financing.
(b)2024 financing.
NSP-Wisconsin
Financing InstrumentInterest RateMaturity Date20252024
First mortgage bonds6.375 %Sept. 1, 2038$200 $200 
First mortgage bonds3.70 Oct. 1, 2042100 100 
First mortgage bonds3.75 Dec. 1, 2047100 100 
First mortgage bonds4.20 Sept. 1, 2048200 200 
First mortgage bonds3.05 May 1, 2051100 100 
First mortgage bonds2.82 May 1, 2051100 100 
First mortgage bonds4.86 Sept. 15, 2052100 100 
First mortgage bonds5.30 June 15, 2053125 125 
First mortgage bonds (a)
5.65 June 15, 2054400 400 
First mortgage bonds (b)
5.65 June 15, 2054250 — 
Unamortized discount(10)(4)
Unamortized debt issuance cost(18)(15)
Total long-term debt$1,647 $1,406 
(a)2024 financing.
(b)2025 financing.
PSCo
Financing InstrumentInterest RateMaturity Date20252024
First mortgage bonds2.90 %May 15, 2025$— $250 
First mortgage bonds3.70 June 15, 2028350 350 
First mortgage bonds1.90 Jan. 15, 2031375 375 
First mortgage bonds1.875 June 15, 2031750 750 
First mortgage bonds4.10 June 1, 2032300 300 
First mortgage bonds (a)
5.35 May 15, 2034400 — 
First mortgage bonds (b)
5.35 May 15, 2034450 450 
First mortgage bonds (a)
5.15 Sep 15, 2035800 — 
First mortgage bonds6.25 Sept. 1, 2037350 350 
First mortgage bonds6.50 Aug. 1, 2038300 300 
First mortgage bonds4.75 Aug. 15, 2041250 250 
First mortgage bonds3.60 Sept. 15, 2042500 500 
First mortgage bonds3.95 March 15, 2043250 250 
First mortgage bonds4.30 March 15, 2044300 300 
First mortgage bonds3.55 June 15, 2046250 250 
First mortgage bonds3.80 June 15, 2047400 400 
First mortgage bonds4.10 June 15, 2048350 350 
First mortgage bonds4.05 Sept. 15, 2049400 400 
First mortgage bonds3.20 March 1, 2050550 550 
First mortgage bonds2.70 Jan. 15, 2051375 375 
First mortgage bonds4.50 June 1, 2052400 400 
First mortgage bonds5.25 April 1, 2053850 850 
First mortgage bonds (b)
5.75 May 15, 2054750 750 
First mortgage bonds (a)
5.85 May 15, 2055800 — 
Unamortized discount(42)(42)
Unamortized debt issuance cost(82)(67)
Current maturities— (250)
Total long-term debt$10,376 $8,391 
(a)2025 financing.
(b)2024 financing.
SPS
Financing InstrumentInterest RateMaturity Date20252024
Unsecured senior notes6.00 %Oct. 1, 2033$100 $100 
First mortgage bonds (a)
5.30 May 15, 2035500 — 
Unsecured senior notes6.00 Oct. 1, 2036250 250 
First mortgage bonds4.50 Aug. 15, 2041200 200 
First mortgage bonds4.50 Aug. 15, 2041100 100 
First mortgage bonds4.50 Aug. 15, 2041100 100 
First mortgage bonds3.40 Aug. 15, 2046300 300 
First mortgage bonds3.70 Aug. 15, 2047450 450 
First mortgage bonds4.40 Nov. 15, 2048300 300 
First mortgage bonds3.75 June 15, 2049300 300 
First mortgage bonds3.15 May 1, 2050350 350 
First mortgage bonds3.15 May 1, 2050250 250 
First mortgage bonds5.15 June 1, 2052200 200 
First mortgage bonds6.00 Sept. 15, 2053100 100 
First mortgage bonds (b)
6.00 June 1, 2054600 600 
Unamortized discount(14)(14)
Unamortized debt issuance cost(40)(35)
Total long-term debt$4,046 $3,551 
(a)2025 financing.
(b)2024 financing.
Other Subsidiaries
Financing InstrumentInterest RateMaturity Date20252024
Various Eloigne affordable housing project notes0.00% - 8.50%2026 - 2055$24 $27 
Current maturities(1)(3)
Total long-term debt$23 $24 
Maturities of long-term debt:
(Millions of Dollars)
2026$501 
2027501 
20281,483 
2029503 
2030600 
Xcel Energy Inc.’s Purchase of NSP-Minnesota’s First Mortgage Bonds — During 2024, Xcel Energy Inc. purchased $166 million in aggregate principal amounts of NSP-Minnesota’s 2.60% First Mortgage Bonds Series due June 1, 2051 for $105 million.
During 2025, Xcel Energy Inc. purchased $787 million in aggregate principal amounts of NSP-Minnesota’s 4.125% First Mortgage Bonds Series due May 15, 2044, 4.00% First Mortgage Bonds Series due August 15, 2045, 3.60% First Mortgage Bonds Series due May 15, 2046, 2.90% First Mortgage Bonds Series due March 1, 2050, 2.60% First Mortgage Bonds Series due June 1, 2051, and 3.20% First Mortgage Bonds Series due April 1, 2052, for $607 million.
On a consolidated basis, Xcel Energy Inc.’s repurchases of NSP-Minnesota first mortgage bonds were accounted for as debt extinguishments and resulted in pre-tax gains of approximately $162 million and $56 million in the years ended Dec. 31, 2025 and 2024, respectively, net of unamortized discount and debt issuance costs. Interest expense related to the repurchased bonds was $6 million and immaterial for the years ended Dec. 31, 2025 and 2024, respectively.
Deferred Financing Costs — Deferred financing costs of approximately $270 million and $235 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt as of Dec. 31, 2025 and 2024, respectively.
ATM Equity Offering — 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 2023, 3.1 million shares of common stock were issued ($188 million in net proceeds and $2 million in transaction fees paid). In 2024, 18.3 million shares of common stock were issued ($1.10 billion in net proceeds and $9 million in transaction fees paid). In 2025, 16.4 million shares ($1.16 billion in net proceeds and $9 million in transaction fees paid) were issued under the ATM program. As of August 1, 2025, no further transactions will occur under this ATM program.
In August 2025, Xcel Energy Inc. filed a prospectus supplement under which it may sell up to $4 billion of its common stock through an ATM program. As of Dec. 31, 2025, Xcel Energy Inc. has issued 1.9 million shares of common stock ($142 million in net proceeds and $1 million in transaction fees paid) to or through its sales agents under the 2025 ATM program. In addition to these immediate issuances and sales of shares of common stock, Xcel Energy Inc. also may use the 2025 ATM program to enter into forward sale agreements under separate forward sale agreements between Xcel Energy Inc. and a banking counterparty. See below for information regarding shares issued or expected to be issued under forward sale agreements entered through Dec. 31, 2025.
Equity through DRIP and Benefits Program — Xcel Energy issued $67 million of equity in both 2025 and 2024 through the DRIP and benefits programs. The program allows shareholders to reinvest their dividends directly in Xcel Energy Inc. common stock.
Forward Equity Agreements — Xcel Energy Inc. has entered into multiple forward sale agreements in 2025 and 2024 in connection with completed public offerings of Xcel Energy common stock.
During the year ended Dec. 31, 2025, Xcel Energy Inc. physically settled its obligations under the following forward sale agreements (in millions of dollars, except per share data):
Agreements EnteredCommon Shares (in millions)Forward Sale Price per ShareCash Proceeds at Settlement
Forward sale agreements settled in December 2025:
2024 forward equity agreements21.1 $64.70 - 64.76$1,364 
2025 forward equity agreements8.9 71.91 - 80.97684
30.0 $2,048 
The following forward sale agreements remain outstanding as of Dec. 31, 2025:
Agreements EnteredCommon Shares (in millions)Final Maturity
Minimum Expected Proceeds (millions of dollars)
2025 forward equity agreements (a)
12.2
Feb. 2026 to Dec. 2028 (b)
935 
(c)
2025 collared forward equity agreements (a)
15.1Dec. 20261,084 
(d)
(a)Entered under the 2025 ATM prospectus supplement.
(b)Xcel Energy may settle the agreements at any time until final maturity.
(c)Actual cash proceeds will be impacted by the timing of settlement. Forward prices are based on the public offering price (net of underwriting fees), increased for the overnight bank funding rate, less a spread and less expected dividends on Xcel Energy’s common stock during the period the agreements are outstanding.
(d)Pricing for the physical delivery of common shares will be based on an average market price for Xcel Energy’s common stock during a period preceding settlement in December 2026, subject to a cap price and floor price derived from the September 2025 and December 2025 public offerings.
If settled in physical shares, stockholders’ equity equal to cash proceeds will be recorded at settlement.
The 2025 collared forward equity agreements cannot be settled until December 2026, and net cash settlement and net share settlement are generally unavailable. The 2025 forward equity agreements could have been settled at Dec. 31, 2025 with physical delivery of common shares to the banking counterparties in exchange for cash; if Xcel Energy unilaterally elected net cash or net share settlement, these agreements also could have been settled with delivery of cash or shares of common stock to the banking counterparties, as follows:
Pro-Forma/Hypothetical Transactions
Agreements EnteredNet Settlement:Physical Share Delivery Proceeds (millions of dollars)
Common Shares (in millions)Net Cash (millions of dollars)
2025 forward equity agreements0.1$7 $934 
Capital Stock — Preferred stock authorized/outstanding:
Preferred Stock Authorized (Shares)Par Value of Preferred StockPreferred Stock Outstanding (Shares) 2025 and 2024
Xcel Energy Inc.7,000,000 $100 — 
PSCo10,000,000 0.01 — 
SPS10,000,000 1.00 — 
Xcel Energy Inc. had the following common stock authorized/outstanding:
Common Stock Authorized (Shares)Par Value of Common StockCommon Stock Outstanding (Shares) as of Dec. 31, 2025Common Stock Outstanding (Shares) as of Dec. 31, 2024
1,000,000,000 $2.50 623,600,715 574,365,598 
Dividend and Other Capital-Related Restrictions — Xcel Energy depends on its utility subsidiaries to pay dividends. Xcel Energy Inc.’s utility subsidiaries’ dividends are subject to the FERC’s jurisdiction, which prohibits the payment of dividends out of capital accounts. Dividends are solely to be paid from retained earnings. Certain covenants also require Xcel Energy Inc. to be current on interest payments prior to dividend disbursements.
State regulatory commissions impose dividend limitations for NSP-Minnesota, NSP-Wisconsin and SPS, which are more restrictive than those imposed by the FERC.
Requirements and actuals as of Dec. 31, 2025:
Equity to Total
Capitalization Ratio
Required Range 		Equity to Total Capitalization Ratio Actual
LowHigh2025
NSP-Minnesota47.25 %57.75 %53.16 %
NSP-Wisconsin (a)
52.50 N/A52.66 
SPS (b)
45.00 55.00 54.47 
(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 EarningsTotal CapitalizationLimit on Total Capitalization
NSP-Minnesota$2,185 $19,547 $22,607 
NSP-Wisconsin12 3,318 N/A
SPS (a)
622 8,888 N/A
(a)May not pay a dividend that would cause a loss of its investment grade bond rating.
Issuance of securities by Xcel Energy Inc. is not generally subject to regulatory approval. However, utility financings and intra-system financings are subject to the jurisdiction of state regulatory commissions and/or the FERC. Xcel Energy may seek additional authorization as necessary.
Amounts authorized to issue as of Dec. 31, 2025:
(Millions of Dollars)Long-Term DebtShort-Term Debt
NSP-Minnesota (a)
52.8% of total capitalization$3,391 
NSP-Wisconsin$500 150 
PSCo3,500 1,200 
SPS100 

700 
(a)NSP-Minnesota has authorization to issue long-term securities provided the equity-to-total capitalization remains within the required range, and to issue short-term debt provided it does not exceed 15% of total capitalization.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 27, 2025
2023Feb 21, 2024
2022Feb 23, 2023
2021Feb 23, 2022
2020Feb 17, 2021
2019Feb 21, 2020
2018Feb 22, 2019
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 19, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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