# EDGAR Filing Document

**Accession Number:** 0001123852
**File Stem:** 0001123852-25-000017
**Filing Date:** 2025-10
**Character Count:** 137062
**Document Hash:** 016cc6b141c274426e3a087305485162
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001123852-25-000017.hdr.sgml**: 20251030

**ACCESSION NUMBER**: 0001123852-25-000017

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 71

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251030

**DATE AS OF CHANGE**: 20251030

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NORTHERN STATES POWER CO
- **CENTRAL INDEX KEY:** 0001123852
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC & OTHER SERVICES COMBINED [4931]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 411967505
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31387
- **FILM NUMBER:** 251434223

**BUSINESS ADDRESS:**
- **STREET 1:** 414 NICOLLET MALL
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55401
- **BUSINESS PHONE:** 6123305500

**MAIL ADDRESS:**
- **STREET 1:** 414 NICOLLET MALL
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55401

?xml version='1.0' encoding='ASCII'? nspm-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

**(Mark One)**

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

**For the quarterly period ended Sept. 30, 2025**

**or**

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

**For the transition period from to** 

**Commission File Number: 001-31387** 

---

| |
|:---|
| **Northern States Power Company** |
| (Exact Name of Registrant as Specified in its Charter) |

---

---

| | |
|:---|:---|
| **Minnesota** | **41-1967505** |
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |

---

---

| | | | |
|:---|:---|:---|:---|
| **414 Nicollet Mall,** | **Minneapolis,** | **Minnesota** | **55401** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

---

| | |
|:---|:---|
| **(612)** | **330-5500** |
| (Registrant's Telephone Number, Including Area Code) | (Registrant's Telephone Number, Including Area Code) |

---

---

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

---

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| N/A | N/A | N/A |

---

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

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

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

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

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

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

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

---

| | |
|:---|:---|
| **Class** | **Outstanding at October 30, 2025** |
| Common Stock, $0.01 par value | 1,000,000 shares |

---

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

    

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I** | **FINANCIAL INFORMATION** | |
| Item 1 — | [Financial Statements (Unaudited)](#ifc81775c14864d20be368d186ea43f02_19) | [4](#ifc81775c14864d20be368d186ea43f02_19) |
|  | [Consolidated Statements of Income](#ifc81775c14864d20be368d186ea43f02_22) | [4](#ifc81775c14864d20be368d186ea43f02_22) |
|  | [Consolidated Statements of Comprehensive Income](#ifc81775c14864d20be368d186ea43f02_25) | [5](#ifc81775c14864d20be368d186ea43f02_25) |
|  | [Consolidated Statements of Cash Flows](#ifc81775c14864d20be368d186ea43f02_28) | [6](#ifc81775c14864d20be368d186ea43f02_28) |
|  | [Consolidated Balance Sheets](#ifc81775c14864d20be368d186ea43f02_31) | [7](#ifc81775c14864d20be368d186ea43f02_31) |
|  | [Consolidated Statements of Common Stockholder's Equity](#ifc81775c14864d20be368d186ea43f02_34) | [8](#ifc81775c14864d20be368d186ea43f02_34) |
|  | [Notes to Consolidated Financial Statements](#ifc81775c14864d20be368d186ea43f02_37) | [8](#ifc81775c14864d20be368d186ea43f02_37) |
| Item 2 — | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ifc81775c14864d20be368d186ea43f02_97) | [20](#ifc81775c14864d20be368d186ea43f02_97) |
| Item 4 — | [Controls and Procedures](#ifc81775c14864d20be368d186ea43f02_112) | [23](#ifc81775c14864d20be368d186ea43f02_112) |
| **PART II** | **OTHER INFORMATION** |  |
| Item 1 — | [Legal Proceedings](#ifc81775c14864d20be368d186ea43f02_118) | [23](#ifc81775c14864d20be368d186ea43f02_118) |
| Item 1A — | [Risk Factors](#ifc81775c14864d20be368d186ea43f02_121) | [24](#ifc81775c14864d20be368d186ea43f02_121) |
| Item 5 — | [Other Information](#ifc81775c14864d20be368d186ea43f02_124) | [24](#ifc81775c14864d20be368d186ea43f02_124) |
| Item 6 — | [Exhibits](#ifc81775c14864d20be368d186ea43f02_127) | [24](#ifc81775c14864d20be368d186ea43f02_127) |
| **[SIGNATURES](#ifc81775c14864d20be368d186ea43f02_130)** | **[SIGNATURES](#ifc81775c14864d20be368d186ea43f02_130)** | [25](#ifc81775c14864d20be368d186ea43f02_130) |

---

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

------

**Definitions of Abbreviations**

---

| | |
|:---|:---|
| ***Xcel Energy Inc.'s Subsidiaries and Affiliates (current and former)*** | ***Xcel Energy Inc.'s Subsidiaries and Affiliates (current and former)*** |
| NSP-Minnesota | Northern States Power Company, a Minnesota corporation |
| NSP System | The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota |
| NSP-Wisconsin | Northern States Power Company, a Wisconsin corporation |
| PSCo | Public Service Company of Colorado |
| SPS | Southwestern Public Service Company |
| Utility subsidiaries | NSP-Minnesota, NSP-Wisconsin, PSCo and SPS |
| Xcel Energy | Xcel Energy Inc. and its subsidiaries |
| ***Federal and State Regulatory Agencies*** | ***Federal and State Regulatory Agencies*** |
| EPA | United States Environmental Protection Agency |
| FASB | Financial Accounting Standards Board |
| FERC | Federal Energy Regulatory Commission |
| IRS | Internal Revenue Service |
| MPUC | Minnesota Public Utilities Commission |
| NDPSC | North Dakota Public Service Commission |
| PSCW | Public Service Commission of Wisconsin |
| SEC | Securities and Exchange Commission |
| SDPUC | South Dakota Public Utilities Commission |
| ***Other*** | ***Other*** |
| ALJ | Administrative Law Judge |
| ARO | Asset retirement obligation |
| ASU | Accounting standards update |
| C&I | Commercial and Industrial |
| CCR | Coal combustion residuals |
| CCR Rule | Final rule (40 CFR 257.50 - 257.107) published by the EPA regulating the management, storage and disposal of CCRs as nonhazardous waste |
| CEO | Chief executive officer |
| CERCLA | Comprehensive Environmental Response, Compensation, and Liability Act |
| CFO | Chief financial officer |
| CO2 | Carbon dioxide |
| CUB | Citizens Utility Board |
| DOC | Minnesota Department of Commerce |
| DSM | Demand side management |
| ETR | Effective tax rate |
| FTR | Financial transmission right |
| GAAP | United States generally accepted accounting principles |
| GHG | Greenhouse gas |
| IPP | Independent power producing entity |
| MGP | Manufactured gas plant |
| MISO | Midcontinent Independent System Operator, Inc. |
| NAV | Net asset value |
| NOx | Nitrogen Oxides |
| O&M | Operating and maintenance |
| OAG | Office of the Minnesota Attorney General |
| OBBB | One Big Beautiful Bill Act |
| PFAS | Per- and Polyfluoroalkyl Substances |
| PPA | Power purchase agreement |
| PTC | Production tax credit |
| RFP | Request for proposal |
| ROE | Return on equity |
| ROU | Right-of-use |
| RTO | Regional Transmission Organization |
| VIE | Variable interest entity |
| XLI | Xcel Large Industrials |
| ***Measurements*** | ***Measurements*** |
| MW | Megawatts |

---

**Forward-Looking Statements**<br>

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases or refunds to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would" and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in NSP-Minnesota's Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u> for the fiscal year ended Dec. 31, 2024 and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of NSP-Minnesota to obtain financing on favorable terms; availability or cost of capital; our customers' and counterparties' ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

------

*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**PART I — FINANCIAL INFORMATION**

**ITEM 1 — FINANCIAL STATEMENTS**

**NSP-MINNESOTA AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED**)

*(amounts in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric, non-affiliates | $1541 | $1444 | $3929 | $3694 |
| &nbsp;&nbsp;&nbsp;Electric, affiliates | 135 | 128 | 377 | 370 |
| &nbsp;&nbsp;&nbsp;Natural gas | 65 | 59 | 535 | 422 |
| &nbsp;&nbsp;&nbsp;Other | 2 | 2 | 7 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues | 1743 | 1633 | 4848 | 4499 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electric fuel and purchased power | 526 | 591 | 1486 | 1514 |
| &nbsp;&nbsp;&nbsp;Cost of natural gas sold and transported | 18 | 13 | 279 | 175 |
| &nbsp;&nbsp;&nbsp;Operating and maintenance expenses | 375 | 338 | 1065 | 965 |
| &nbsp;&nbsp;&nbsp;Conservation program expenses | 31 | 48 | 100 | 138 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 304 | 277 | 883 | 817 |
| &nbsp;&nbsp;&nbsp;Taxes (other than income taxes) | 65 | 53 | 199 | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1319 | 1320 | 4012 | 3782 |
| **Operating income** | 424 | 313 | 836 | 717 |
| Other income, net | 9 | 4 | 17 | 12 |
| Allowance for funds used during construction — equity | 18 | 15 | 51 | 39 |
| **Interest charges and financing costs** |  |  |  |  |
| Interest charges and other financing costs | 112 | 92 | 308 | 271 |
| &nbsp;&nbsp;&nbsp;Allowance for funds used during construction — debt | (10) | (8) | (27) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest charges and financing costs | 102 | 84 | 281 | 252 |
| **Income before income taxes** | 349 | 248 | 623 | 516 |
| Income tax expense (benefit) | 36 | (4) | (63) | (78) |
| &nbsp;&nbsp;&nbsp;**Net income** | $313 | $252 | $686 | $594 |

---

See Notes to Consolidated Financial Statements

------

*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**NSP-MINNESOTA AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)**

*(amounts in millions)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net income** | $313 | $252 | $686 | $594 |
| **Other comprehensive income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net fair value increase, net of tax | (1) |  | 3 | 12 |
| &nbsp;&nbsp;&nbsp;Total other comprehensive income | (1) |  | 3 | 12 |
| **Total comprehensive income** | $312 | $252 | $689 | $606 |

---

See Notes to Consolidated Financial Statements

------

*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**NSP-MINNESOTA AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

*(amounts in millions)*

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| | **2025** | **2024** |
| **Operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $686 | $594 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 889 | 821 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nuclear fuel amortization | 87 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 304 | 249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction | (51) | (39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debts | 19 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (8) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued unbilled revenues | 7 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (28) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 34 | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (96) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net regulatory assets and liabilities | (67) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 6 | (189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and other employee benefit obligations | (53) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 6 | 2 |
| Net cash provided by operating activities | 1735 | 1492 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capital/construction expenditures | (2291) | (2043) |
| &nbsp;&nbsp;&nbsp;Purchase of investment securities | (854) | (693) |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of investment securities | 851 | 666 |
| &nbsp;&nbsp;&nbsp;Investments in utility money pool arrangement | (735) | (357) |
| &nbsp;&nbsp;&nbsp;Repayments from utility money pool arrangement | 768 | 414 |
| &nbsp;&nbsp;&nbsp;Other, net | 1 | (3) |
| Net cash used in investing activities | (2260) | (2016) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Repayments of short-term borrowings, net | (195) | (165) |
| &nbsp;&nbsp;&nbsp;Borrowings under utility money pool arrangement | 798 | 100 |
| &nbsp;&nbsp;&nbsp;Repayments under utility money pool arrangement | (798) | (100) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt | 1083 | 687 |
| &nbsp;&nbsp;&nbsp;Repayment of long-term debt | (250) |  |
| &nbsp;&nbsp;&nbsp;Capital contributions from parent | 250 | 603 |
| &nbsp;&nbsp;&nbsp;Dividends paid to parent | (298) | (325) |
| Net cash provided by financing activities | 590 | 800 |
| Net change in cash, cash equivalents and restricted cash | 65 | 276 |
| Cash, cash equivalents and restricted cash at beginning of period | 71 | 34 |
| Cash, cash equivalents and restricted cash at end of period | $136 | $310 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest (net of amounts capitalized) | $(255) | $(234) |
| &nbsp;&nbsp;&nbsp;Cash received from income taxes, net; includes proceeds from tax credit transfers | 342 | 315 |
| Supplemental disclosure of non-cash investing and financing transactions: |  |  |
| &nbsp;&nbsp;&nbsp;Accrued property, plant and equipment additions | $352 | $253 |
| &nbsp;&nbsp;&nbsp;Inventory transfers to property, plant and equipment | 34 | 31 |
| &nbsp;&nbsp;&nbsp;Operating lease and finance lease right-of-use assets | 1043 | 39 |
| &nbsp;&nbsp;&nbsp;Allowance for equity funds used during construction | 51 | 39 |

---

See Notes to Consolidated Financial Statements

------

*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**NSP-MINNESOTA AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS (UNAUDITED)**

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

---

| | | |
|:---|:---|:---|
| | **Sept. 30, 2025** | **Dec. 31, 2024** |
| **Assets** | | |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $136 | $71 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 499 | 530 |
| &nbsp;&nbsp;&nbsp;Accounts receivable from affiliates | 21 | 1 |
| &nbsp;&nbsp;&nbsp;Investments in money pool arrangements |  | 33 |
| &nbsp;&nbsp;&nbsp;Accrued unbilled revenues | 265 | 272 |
| &nbsp;&nbsp;&nbsp;Inventories | 336 | 339 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 351 | 364 |
| &nbsp;&nbsp;&nbsp;Derivative instruments | 64 | 36 |
| &nbsp;&nbsp;&nbsp;Prepayments and other | 114 | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1786 | 1785 |
| Property, plant and equipment, net | 22489 | 20860 |
| Other assets |  |  |
| &nbsp;&nbsp;&nbsp;Nuclear decommissioning fund and other investments | 3922 | 3548 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 718 | 813 |
| &nbsp;&nbsp;&nbsp;Derivative instruments | 56 | 67 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 124 | 393 |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets | 1251 |  |
| &nbsp;&nbsp;&nbsp;Other | 20 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other assets | 6091 | 4840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $30366 | $27485 |
| **Liabilities and Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | $— | $250 |
| &nbsp;&nbsp;&nbsp;Short-term debt |  | 195 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 719 | 631 |
| &nbsp;&nbsp;&nbsp;Accounts payable to affiliates | 88 | 100 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities | 386 | 543 |
| &nbsp;&nbsp;&nbsp;Taxes accrued | 237 | 221 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 101 | 90 |
| &nbsp;&nbsp;&nbsp;Dividends payable to parent | 120 | 80 |
| &nbsp;&nbsp;&nbsp;Derivative instruments | 25 | 31 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 7 | 97 |
| &nbsp;&nbsp;&nbsp;Other | 191 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1874 | 2388 |
| Deferred credits and other liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 2671 | 2238 |
| &nbsp;&nbsp;&nbsp;Regulatory liabilities | 2386 | 2155 |
| &nbsp;&nbsp;&nbsp;Asset retirement obligations | 3193 | 3073 |
| &nbsp;&nbsp;&nbsp;Derivative instruments | 69 | 77 |
| &nbsp;&nbsp;&nbsp;Pension and employee benefit obligations | 103 | 151 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 120 | 317 |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities | 1214 |  |
| &nbsp;&nbsp;&nbsp;Other | 41 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred credits and other liabilities | 9797 | 8052 |
| Commitments and contingencies |  |  |
| Capitalization |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt | 8504 | 7607 |
| &nbsp;&nbsp;Long-term debt - related parties | 356 | 166 |
| &nbsp;&nbsp;Common stock — 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares <br>outstanding at Sept. 30, 2025 and Dec. 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 6611 | 6399 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 3229 | 2881 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (5) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total common stockholder's equity | 9835 | 9272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $30366 | $27485 |

---

See Notes to Consolidated Financial Statements

------

*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**NSP-MINNESOTA AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (UNAUDITED)**

*(amounts in millions, except share data)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock Issued** | **Common Stock Issued** | **Common Stock Issued** | **Retained Earnings** | **Accumulated Other Comprehensive Loss** | **Total Common Stockholder's Equity** |
| | **Shares** | **Par Value** | **Additional Paid In Capital** | **Retained Earnings** | **Accumulated Other Comprehensive Loss** | **Total Common Stockholder's Equity** |
| **Three Months Ended Sept. 30, 2025 and 2024** | | | | | | |
| **Balance at June 30, 2024** | 1000000 | $— | $6184 | $2679 | $(8) | $8855 |
| Net income |  |  |  | 252 |  | 252 |
| Dividends declared to parent |  |  |  | (99) |  | (99) |
| Contribution of capital by parent |  |  | 92 |  |  | 92 |
| **Balance at Sept. 30, 2024** | 1000000 | $— | $6276 | $2832 | $(8) | $9100 |
| **Balance at June 30, 2025** | 1000000 | $— | $6650 | $3036 | $(4) | $9682 |
| Net income |  |  |  | 313 |  | 313 |
| Other comprehensive loss |  |  |  |  | (1) | (1) |
| Dividends declared to parent |  |  |  | (120) |  | (120) |
| Distribution of capital to parent |  |  | (39) |  |  | (39) |
| **Balance at Sept. 30, 2025** | 1000000 | $— | $6611 | $3229 | $(5) | $9835 |
|  | **Common Stock Issued** | **Common Stock Issued** | **Common Stock Issued** | **Retained Earnings** | **Accumulated Other Comprehensive Loss** | **Total Common Stockholder's Equity** |
|  | **Shares** | **Par Value** | **Additional Paid In Capital** | **Retained Earnings** | **Accumulated Other Comprehensive Loss** | **Total Common Stockholder's Equity** |
| **Nine Months Ended Sept. 30, 2025 and 2024** |  |  |  |  |  |  |
| **Balance at Dec. 31, 2023** | 1000000 | $— | $5686 | $2541 | $(20) | $8207 |
| Net income |  |  |  | 594 |  | 594 |
| Other comprehensive income |  |  |  |  | 12 | 12 |
| Dividends declared to parent |  |  |  | (303) |  | (303) |
| Contribution of capital by parent |  |  | 590 |  |  | 590 |
| **Balance at Sept. 30, 2024** | 1000000 | $— | $6276 | $2832 | $(8) | $9100 |
| **Balance at Dec. 31, 2024** | 1000000 | $— | $6399 | $2881 | $(8) | $9272 |
| Net income |  |  |  | 686 |  | 686 |
| Other comprehensive income |  |  |  |  | 3 | 3 |
| Dividends declared to parent |  |  |  | (338) |  | (338) |
| Contribution of capital by parent |  |  | 212 |  |  | 212 |
| **Balance at Sept. 30, 2025** | 1000000 | $— | $6611 | $3229 | $(5) | $9835 |
| See Notes to Consolidated Financial Statements | See Notes to Consolidated Financial Statements | See Notes to Consolidated Financial Statements | See Notes to Consolidated Financial Statements | See Notes to Consolidated Financial Statements | See Notes to Consolidated Financial Statements | See Notes to Consolidated Financial Statements |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**NSP-MINNESOTA AND SUBSIDIARIES**

**Notes to Consolidated Financial Statements (UNAUDITED)**

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with GAAP, the financial position of NSP-Minnesota and its subsidiaries as of Sept. 30, 2025 and Dec. 31, 2024; the results of NSP-Minnesota's operations, including the components of net income, comprehensive income and changes in stockholder's equity for the three and nine months ended Sept. 30, 2025 and 2024; and NSP-Minnesota's cash flows for the nine months ended Sept. 30, 2025 and 2024.

All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2025 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2024 balance sheet information has been derived from the audited 2024 consolidated financial statements included in the NSP-Minnesota Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u> for the year ended Dec. 31, 2024.

Notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto included in the NSP-Minnesota Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u> for the year ended Dec. 31, 2024, filed with the SEC on Feb. 27, 2025. Due to the seasonality of NSP-Minnesota's electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.

**1. Summary of Significant Accounting Policies**<br>

The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Minnesota Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u> for the year ended Dec. 31, 2024 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

**2. Accounting Pronouncements**<br>

**Recently Issued**

***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 ETR reconciliation and disclosures regarding state and local tax payments. The ASU is effective for annual periods beginning after Dec. 15, 2024, and NSP-Minnesota does not expect implementation of the new disclosure guidance to have a material impact on its consolidated financial statements.

***Disaggregation of Income Statement Expenses*** — In November 2024, the FASB issued ASU 2024-03 *– Disaggregation of Income Statement Expenses*, which requires disclosure of additional detail for certain categories of income statement expenses. The ASU is effective for annual periods beginning after Dec. 15, 2026 and interim reporting periods beginning after Dec. 15, 2027. NSP-Minnesota is currently evaluating the impact of the new disclosure guidance.

**3. Selected Balance Sheet Data**

---

| | | |
|:---|:---|:---|
| **(Millions of Dollars)** | **Sept. 30, 2025** | **Dec. 31, 2024** |
| **Accounts receivable, net** | | |
| &nbsp;&nbsp;&nbsp;Accounts receivable | $537 | $572 |
| &nbsp;&nbsp;&nbsp;Less allowance for bad debts | (38) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | $499 | $530 |

---

---

| | | |
|:---|:---|:---|
| **(Millions of Dollars)** | **Sept. 30, 2025** | **Dec. 31, 2024** |
| **Inventories** | | |
| &nbsp;&nbsp;&nbsp;Materials and supplies | $255 | $234 |
| &nbsp;&nbsp;&nbsp;Fuel | 49 | 81 |
| &nbsp;&nbsp;&nbsp;Natural gas | 32 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventories | $336 | $339 |

---

---

| | | |
|:---|:---|:---|
| **(Millions of Dollars)** | **Sept. 30, 2025** | **Dec. 31, 2024** |
| **Property, plant and equipment, net** | | |
| &nbsp;&nbsp;&nbsp;Electric plant | $24339 | $23218 |
| &nbsp;&nbsp;&nbsp;Natural gas plant | 2620 | 2472 |
| &nbsp;&nbsp;&nbsp;Common and other property | 1551 | 1450 |
| &nbsp;&nbsp; Plant to be retired <sup>(a)</sup> | 511 | 554 |
| &nbsp;&nbsp;&nbsp;Construction work in progress | 2263 | 1522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment | 31284 | 29216 |
| &nbsp;&nbsp;&nbsp;Less accumulated depreciation | (9248) | (8753) |
| &nbsp;&nbsp;&nbsp;Nuclear fuel | 3634 | 3491 |
| &nbsp;&nbsp;&nbsp;Less accumulated amortization | (3181) | (3094) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | $22489 | $20860 |

---

<sup>(a)</sup>Amounts include Sherco 1 and 3 and A.S. King. Balance is presented net of accumulated depreciation.

**4. Borrowings and Other Financing Instruments**<br>

**Short-Term Borrowings**

NSP-Minnesota meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool.

***Money Pool*** — Xcel Energy and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy.

Money pool borrowings:

---

| | | |
|:---|:---|:---|
| **(Amounts in Millions, Except Interest Rates)** | **Three Months Ended Sept. 30, 2025** | **Year Ended Dec. 31, 2024** |
| Borrowing limit | $250 | $250 |
| Amount outstanding at period end |  |  |
| Average amount outstanding |  | 10 |
| Maximum amount outstanding |  | 139 |
| Weighted average interest rate, computed on a daily basis | N/A | 4.82% |
| Weighted average interest rate at period end | N/A | N/A |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

***Commercial Paper*** — Commercial paper outstanding:

---

| | | |
|:---|:---|:---|
| **(Amounts in Millions, Except Interest Rates)** | **Three Months Ended Sept. 30, 2025** | **Year Ended Dec. 31, 2024** |
| Borrowing limit | $800 | $700 |
| Amount outstanding at period end |  | 195 |
| Average amount outstanding |  | 54 |
| Maximum amount outstanding |  | 400 |
| Weighted average interest rate, computed on a daily basis | N/A | 5.39% |
| Weighted average interest rate at period end | N/A | 4.63 |

---

***Letters of Credit*** — NSP-Minnesota uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. There were $44 million and $12 million of letters of credit outstanding under the credit facility at both Sept. 30, 2025 and Dec. 31, 2024, respectively. Amounts approximate their fair value and are subject to fees.

***Revolving Credit Facility*** — In order to issue its commercial paper, NSP-Minnesota must have a revolving credit facility equal to or greater than the commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

In May 2025, NSP-Minnesota entered into an amended five-year credit agreement with a syndicate of banks, with substantially the same terms and conditions as the prior credit agreements. The borrowing limit for NSP-Minnesota was increased from $700 million to $800 million, and the maturity was extended from September 2027 to December 2029.

NSP-Minnesota has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval.

At Sept. 30, 2025, NSP-Minnesota had the following committed revolving credit facility available (in millions of dollars):

---

| | | |
|:---|:---|:---|
| **Credit Facility** <sup>(a)</sup> | **Drawn** <sup>(b)</sup> | **Available** |
| $800 | $44 | $756 |

---

<sup>(a)</sup>Expires in December 2029.

<sup>(b)</sup>Includes outstanding commercial paper and letters of credit.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Minnesota had no direct advances on the credit facility outstanding at Sept. 30, 2025 and Dec. 31, 2024.

***Bilateral Credit Agreement*** — In April 2025, NSP-Minnesota's uncommitted bilateral credit agreement was renewed for an additional one-year term. The credit agreement is limited in use to support letters of credit.

As of Sept. 30, 2025, NSP-Minnesota had $69 million of outstanding letters of credit under the $75 million bilateral credit agreement.

**Long-Term Borrowings**

During the nine months ended Sept. 30, 2025, NSP-Minnesota issued $600 million of 5.05% First Mortgage Bonds due May 15, 2035 and $500 million of 5.65% First Mortgage Bonds due May 15, 2055.

***Xcel Energy Inc.'s Purchase of NSP-Minnesota's First Mortgage Bonds*** — During the nine months ended Sept. 30, 2025, Xcel Energy Inc. purchased $190 million in aggregate principal amounts of NSP-Minnesota's 2.90% First Mortgage Bonds Series due March 1, 2050, 2.60% First Mortgage Bonds Series due June 1, 2051 and 3.20% First Mortgage Bonds Series due April 1, 2052, for $122 million. Bonds purchased by Xcel Energy Inc. are reported in long-term debt - related parties on NSP-Minnesota's consolidated balance sheet, and interest expense related to the repurchased bonds was $1.4 million for the nine months ended Sept. 30, 2025.

**5. Revenues**<br>

Revenue is classified by the type of goods/services rendered and market/customer type. NSP-Minnesota's operating revenues consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** |
|<br>**(Millions of Dollars)** | **Electric** | **Natural Gas** | **All Other** | **Total** |
| **Major revenue types** | **Major revenue types** | **Major revenue types** | **Major revenue types** | **Major revenue types** |
| &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $568 | $32 | $— | $600 |
| &nbsp;&nbsp;&nbsp;&nbsp;C&I | 725 | 28 |  | 753 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 11 |  | 2 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total retail** | 1304 | 60 | 2 | 1366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 110 |  |  | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission | 79 |  |  | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interchange and other | 141 |  |  | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue from contracts with customers** | 1634 | 60 | 2 | 1696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternative revenue and other | 42 | 5 |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | $1676 | $65 | $2 | $1743 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** |
|<br>**(Millions of Dollars)** | **Electric** | **Natural Gas** | **All Other** | **Total** |
| **Major revenue types** | **Major revenue types** | **Major revenue types** | **Major revenue types** | **Major revenue types** |
| &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;&nbsp;Revenue from contracts with customers: |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $490 | $29 | $— | $519 |
| &nbsp;&nbsp;&nbsp;&nbsp;C&I | 675 | 19 |  | 694 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 10 |  | 2 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total retail** | 1175 | 48 | 2 | 1225 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 115 |  |  | 115 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission | 79 |  |  | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interchange and other | 111 | 3 |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue from contracts with customers** | 1480 | 51 | 2 | 1533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternative revenue and other | 92 | 8 |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | $1572 | $59 | $2 | $1633 |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** |
|<br>**(Millions of Dollars)** | **Electric** | **Natural Gas** | **All Other** | **Total** |
| **Major revenue types** | | | | |
| &nbsp;&nbsp;Revenue from contracts with customers: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $1386 | $281 | $1 | $1668 |
| &nbsp;&nbsp;&nbsp;&nbsp;C&I | 1884 | 204 |  | 2088 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 31 |  | 6 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total retail** | 3301 | 485 | 7 | 3793 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 302 |  |  | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission | 210 |  |  | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interchange and other | 387 | 8 |  | 395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue from contracts with customers** | 4200 | 493 | 7 | 4700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternative revenue and other | 106 | 42 |  | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | $4306 | $535 | $7 | $4848 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** |
|<br>**(Millions of Dollars)** | **Electric** | **Natural Gas** | **All Other** | **Total** |
| **Major revenue types** | | | | |
| &nbsp;&nbsp;Revenue from contracts with customers: | &nbsp;&nbsp;Revenue from contracts with customers: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential | $1208 | $204 | $7 | $1419 |
| &nbsp;&nbsp;&nbsp;&nbsp;C&I | 1768 | 134 |  | 1902 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 29 |  | 6 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total retail** | 3005 | 338 | 13 | 3356 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wholesale | 247 |  |  | 247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transmission | 198 |  |  | 198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interchange and other | 351 | 31 |  | 382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue from contracts with customers** | 3801 | 369 | 13 | 4183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternative revenue and other | 263 | 53 |  | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | $4064 | $422 | $13 | $4499 |

---

**6. Income Taxes**<br>

Reconciliation between the statutory rate and ETR:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| | **2025** | **2024** |
| Federal statutory rate | 21.0% | 21.0% |
| State income tax on pretax income, net of federal tax effect | 7.1 | 7.1 |
| (Decreases) increases: |  |  |
| &nbsp;&nbsp;PTCs <sup>(a)</sup> | (31.9) | (36.8) |
| &nbsp;&nbsp;Plant regulatory differences <sup>(b)</sup> | (5.8) | (5.7) |
| &nbsp;&nbsp;&nbsp;Other tax credits, net operating loss & tax credit allowances | (1.0) | (1.2) |
| &nbsp;&nbsp;&nbsp;Other, net | 0.5 | 0.5 |
| Effective income tax rate | (10.1)% | (15.1)% |

---

<sup>(a)</sup>Wind and solar PTCs (net of estimated transfer discounts) are generally credited to customers (reduction to revenue) and do not materially impact earnings.

<sup>(b)</sup>Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers. Income tax benefits associated with the credit are offset by corresponding revenue reductions.

**7.&nbsp;&nbsp;&nbsp;&nbsp;Fair Value of Financial Assets and Liabilities**<br>

**Fair Value Measurements**

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

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

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

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

Specific valuation methods include:

**Investments in equity securities and other funds** *—* Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs. The investments in commingled funds may be redeemed for NAV with proper notice. Private equity commingled funds require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate commingled funds may be redeemed with proper notice, however, withdrawals may be delayed or discounted as a result of fund illiquidity.

**Investments in debt securities** *—* Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities.

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

**Commodity derivatives** *—* Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification.

When contracts relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification.

Electric commodity derivatives held by NSP-Minnesota include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from an RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path.

The values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments.

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

FTRs are recognized at fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction values of FTRs, these fair value measurements have been assigned a Level 3 classification.

Net congestion costs, including the impact of FTR settlements are shared through fuel and purchased energy cost recovery mechanisms. As such, the fair value of the unsettled instruments (i.e., derivative asset or liability) is offset/deferred as a regulatory asset or liability.

**Non-Derivative Fair Value Measurements**

The Nuclear Regulatory Commission requires NSP-Minnesota to maintain a portfolio of investments to fund the costs of decommissioning its nuclear generating plants. Assets of the nuclear decommissioning fund are legally restricted for the purpose of decommissioning these facilities. The fund contains cash equivalents, debt securities, equity securities and other investments. NSP-Minnesota uses the MPUC approved asset allocation for the investment targets by asset class for the qualified trust.

NSP-Minnesota recognizes the costs of funding the decommissioning over the lives of the nuclear plants, assuming rate recovery of all costs. Realized and unrealized gains on fund investments over the life of the fund are deferred as an offset of NSP-Minnesota's regulatory asset or as a regulatory liability (dependent on funding status) for nuclear decommissioning costs. Consequently, any realized and unrealized gains and losses on securities in the nuclear decommissioning fund are deferred as a component of the regulatory asset/liability.

Unrealized gains for the nuclear decommissioning fund were $1.7 billion and $1.4 billion as of Sept. 30, 2025 and Dec. 31, 2024, respectively, and unrealized losses were $44 million and $49 million as of Sept. 30, 2025 and Dec. 31, 2024, respectively.

Non-derivative instruments with recurring fair value measurements in the nuclear decommissioning fund:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** |
| | | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
|<br>**(Millions of Dollars)** |<br>**Cost** | **Level 1** | **Level 2** | **Level 3** | **NAV** | **Total** |
| Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;Cash equivalents | $68 | $68 | $— | $— | $— | $68 |
| &nbsp;&nbsp;&nbsp;Commingled funds | 696 |  |  |  | 1041 | 1041 |
| &nbsp;&nbsp;&nbsp;Debt securities | 903 |  | 898 | 10 |  | 908 |
| &nbsp;&nbsp;&nbsp;Equity securities | 541 | 1850 | 2 |  |  | 1852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $2208 | $1918 | $900 | $10 | $1041 | $3869 |

---

<sup>(a)</sup>Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $53 million of other investments, including the rabbi trust.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| | | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
|<br>**(Millions of Dollars)** |<br>**Cost** | **Level 1** | **Level 2** | **Level 3** | **NAV** | **Total** |
| Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> | Nuclear decommissioning fund <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;Cash equivalents | $39 | $39 | $— | $— | $— | $39 |
| &nbsp;&nbsp;&nbsp;Commingled funds | 703 |  |  |  | 1025 | 1025 |
| &nbsp;&nbsp;&nbsp;Debt securities | 866 |  | 832 | 14 |  | 846 |
| &nbsp;&nbsp;&nbsp;Equity securities | 522 | 1583 | 1 |  |  | 1584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $2130 | $1622 | $833 | $14 | $1025 | $3494 |

---

<sup>(a)</sup>Reported in nuclear decommissioning fund and other investments on the consolidated balance sheets, which also includes $54 million of other investments, including the rabbi trust.

For the three and nine months ended Sept. 30, 2025 and 2024, there were immaterial transfers of Level 3 investments between levels.

Contractual maturity dates of debt securities in the nuclear decommissioning fund as of Sept. 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Final Contractual Maturity** | **Final Contractual Maturity** | **Final Contractual Maturity** | **Final Contractual Maturity** | **Final Contractual Maturity** |
|<br>**(Millions of Dollars)** | **Due in 1 Year or Less** | **Due in 1 to 5 Years** | **Due in 5 to 10 Years** | **Due after 10 Years** | **Total** |
| &nbsp;&nbsp;&nbsp;Debt securities | $9 | $341 | $271 | $287 | $908 |

---

**Derivative Activities and Fair Value Measurements**

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

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

As of Sept. 30, 2025, accumulated other comprehensive loss related to interest rate derivatives included immaterial net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of Sept. 30, 2025, NSP-Minnesota had unsettled interest rate derivatives with a notional amount of $90 million and an immaterial fair value.

See Note 10 for the financial impact of qualifying interest rate cash flow hedges on NSP-Minnesota's accumulated other comprehensive loss included in the consolidated statements of common stockholder's equity and in the consolidated statements of comprehensive income.

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

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

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

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

The most significant derivative positions outstanding at Sept. 30, 2025 for this purpose relate to FTR instruments administered by MISO. These instruments are intended to offset the impacts of transmission system congestion.

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

As of Sept. 30, 2025, NSP-Minnesota had no commodity contracts designated as cash flow hedges.

Gross notional amounts of commodity forwards, options and FTRs:

---

| | | |
|:---|:---|:---|
| **(Amounts in Millions)** <sup>(a)(b)</sup> | **Sept. 30, 2025** | **Dec. 31, 2024** |
| Megawatt hours of electricity | 37 | 31 |
| Million British thermal units of natural gas | 38 | 57 |

---

<sup>(a)</sup>Not reflective of net positions in the underlying commodities.

<sup>(b)</sup>Notional amounts for options included on a gross basis but weighted for the probability of exercise.

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

NSP-Minnesota's most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities.

As of Sept. 30, 2025, three of NSP-Minnesota's seven most significant counterparties for these activities, comprising $21 million, or 25%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody's Investor Services or Fitch Ratings.

Three of the seven most significant counterparties, comprising $33 million, or 39%, of this credit exposure, were not rated by these external ratings agencies, but based on NSP-Minnesota's internal analysis, had credit quality consistent with investment grade.

One of these significant counterparties, comprising $28 million or 33% of this credit exposure, had credit quality less than investment grade, based on internal analysis.

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

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

As of Sept. 30, 2025 and Dec. 31, 2024, there were $7 million and $11 million of derivative liabilities with such underlying contract provisions.

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

As of Sept. 30, 2025 and Dec. 31, 2024, there were approximately $57 million and $63 million of derivative liabilities with such underlying contract provisions, respectively.

Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that a given utility subsidiary's ability to fulfill its contractual obligations is reasonably expected to be impaired.

NSP-Minnesota had no collateral posted related to adequate assurance clauses in derivative contracts as of Sept. 30, 2025 and Dec. 31, 2024.

***Recurring Derivative Fair Value Measurements***

Impact of derivative activity:

---

| | | |
|:---|:---|:---|
| | **Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:** | **Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:** |
|<br>**(Millions of Dollars)** | **Accumulated Other Comprehensive Loss** | **Regulatory Assets and Liabilities** |
| **Three Months Ended Sept. 30, 2025** | | |
| **Other derivative instruments:** | | |
| &nbsp;&nbsp;&nbsp;Electric commodity | $— | $10 |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $7 |
| **Nine Months Ended Sept. 30, 2025** |  |  |
| **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** |  |
| &nbsp;&nbsp;&nbsp;Interest rate | $4 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $4 | $— |
| **Other derivative instruments:** |  |  |
| &nbsp;&nbsp;&nbsp;Electric commodity | $— | $5 |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $3 |
| **Three Months Ended Sept. 30, 2024** |  |  |
| **Other derivative instruments** | **Other derivative instruments** |  |
| &nbsp;&nbsp;&nbsp;Electric commodity | $— | $(15) |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $(16) |
| **Nine Months Ended Sept. 30, 2024** |  |  |
| **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** |  |
| &nbsp;&nbsp;&nbsp;Interest rate | $16 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $16 | $— |
| **Other derivative instruments** |  |  |
| &nbsp;&nbsp;&nbsp;Electric commodity | $— | $(14) |
| &nbsp;&nbsp;&nbsp;Natural gas commodity | $— | $2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $(12) |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Pre-Tax Losses Reclassified into Income During the Period From:** | **Pre-Tax Losses Reclassified into Income During the Period From:** | **Pre-Tax Losses Reclassified into Income During the Period From:** | | **Pre-Tax Gains (Losses) Recognized During the Period in Income** | |
|<br>**(Millions of Dollars)** | **Accumulated Other Comprehensive Loss** | | **Regulatory Assets and Liabilities** | | **Pre-Tax Gains (Losses) Recognized During the Period in Income** | |
| **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | | | |
| **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | | | |
| &nbsp;&nbsp;&nbsp;Commodity trading | $— |  | $— |  | $3 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;Electric commodity |  |  | (3) | <sup>(b)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— |  | $(3) |  | $3 |  |
| **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** |  |  |  |
| **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity trading | $— |  | $— |  | $(5) | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;Electric commodity |  |  | 5 | <sup>(b)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  |  |  |  | (4) | <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— |  | $5 |  | $(9) |  |
| **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** |  |  |  |
| **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** |
| &nbsp;&nbsp;&nbsp;Interest rate | $1 | <sup>(e)</sup> | $— |  | $— |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1 |  | $— |  | $— |  |
| **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** |
| &nbsp;&nbsp;&nbsp;Commodity trading | $— |  | $— |  | $4 | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;Electric Commodity |  |  | 4 | <sup>(b)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— |  | $4 |  | $4 |  |
| **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** |  |  |  |
| **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** | **Derivatives designated as cash flow hedges:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate | $1 | <sup>(e)</sup> | $— |  | $— |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1 |  | $— |  | $— |  |
| **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** | **Other derivative instruments:** |
| &nbsp;&nbsp;&nbsp;Commodity trading | $— |  | $— |  | $(9) | <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;Electric commodity |  |  | 10 | <sup>(b)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  |  |  |  | (5) | <sup>(c)(d)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— |  | $10 |  | $(14) |  |

---

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

<sup>(b)</sup>Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value.

<sup>(c)</sup>Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.

<sup>(d)</sup>Relates primarily to option premium amortization.

<sup>(e)</sup>Recorded to interest charges.

NSP-Minnesota had no derivative instruments designated as fair value hedges during the nine months ended Sept. 30, 2025 and 2024.

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

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** |
|<br>**(Millions of Dollars)** | **Level 1** | **Level 2** | **Level 3** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** | **Level 1** | **Level 2** | **Level 3** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** |
| **Current derivative assets** | | | | | | | | | | | | |
| Other derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity trading | $4 | $11 | $8 | $23 | $(15) | $8 | $5 | $20 | $8 | $33 | $(22) | $11 |
| &nbsp;&nbsp;Electric commodity  |  |  | 50 | 50 | (2) | 48 |  |  | 23 | 23 | (2) | 21 |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  | 8 |  | 8 |  | 8 |  | 4 |  | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current derivative assets | $4 | $19 | $58 | $81 | $(17) | $64 | $5 | $24 | $31 | $60 | $(24) | $36 |
| **Noncurrent derivative assets** |  |  |  |  |  |  |  |  |  |  |  |  |
| Other derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity trading | $4 | $27 | $37 | $68 | $(12) | $56 | $3 | $33 | $47 | $83 | $(16) | $67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent derivative assets | $4 | $27 | $37 | $68 | $(12) | $56 | $3 | $33 | $47 | $83 | $(16) | $67 |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Sept. 30, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** |
|<br>**(Millions of Dollars)** | **Level 1** | **Level 2** | **Level 3** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** | **Level 1** | **Level 2** | **Level 3** | **Fair Value Total** | **Netting** <sup>(a)</sup> | **Total** |
| **Current derivative liabilities** | | | | | | | | | | | | |
| Other derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity trading | $5 | $19 | $6 | $30 | $(15) | $15 | $6 | $35 | $5 | $46 | $(22) | $24 |
| &nbsp;&nbsp;&nbsp;Electric commodity |  |  | 2 | 2 | (2) |  |  |  | 1 | 1 | (1) |  |
| &nbsp;&nbsp;&nbsp;Natural gas commodity |  | 4 |  | 4 |  | 4 |  | 1 |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current derivative liabilities | $5 | $23 | $8 | $36 | $(17) | 19 | $6 | $36 | $6 | $48 | $(23) | 25 |
| PPAs <sup>(b)</sup> |  |  |  |  |  | 6 |  |  |  |  |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current derivative instruments |  |  |  |  |  | $25 |  |  |  |  |  | $31 |
| **Noncurrent derivative liabilities** |  |  |  |  |  |  |  |  |  |  |  |  |
| Other derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commodity trading | $7 | $25 | $40 | $72 | $(14) | $58 | $9 | $30 | $40 | $79 | $(18) | $61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent derivative liabilities | $7 | $25 | $40 | $72 | $(14) | 58 | $9 | $30 | $40 | $79 | $(18) | 61 |
| PPAs <sup>(b)</sup> |  |  |  |  |  | 11 |  |  |  |  |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent derivative instruments |  |  |  |  |  | $69 |  |  |  |  |  | $77 |

---

<sup>(a)</sup>NSP-Minnesota nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At Sept. 30, 2025 and Dec. 31, 2024, derivative assets and liabilities include no obligations to return cash collateral. At Sept. 30, 2025 and Dec. 31, 2024 derivative assets and liabilities include rights to reclaim cash collateral of $2 million and $1 million, respectively. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

<sup>(b)</sup>NSP-Minnesota currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.

Changes in Level 3 commodity derivatives:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** |
|<br>**(Millions of Dollars)** | **2025** | **2024** |
| Balance at July 1 | $58 | $93 |
| &nbsp;&nbsp;Settlements <sup>(a)</sup> | (27) | (13) |
| &nbsp;&nbsp;&nbsp;Net transactions recorded during the period: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses recognized in earnings <sup>(b)</sup> | (1) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) recognized as regulatory assets and liabilities <sup>(a)</sup> | 17 | (22) |
| Balance at Sept. 30 | $47 | $50 |
|  | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| **(Millions of Dollars)** | **2025** | **2024** |
| Balance at Jan. 1 | $32 | $51 |
| &nbsp;&nbsp;Purchases <sup>(a)</sup> | 62 | 72 |
| &nbsp;&nbsp;Settlements <sup>(a)</sup> | (49) | (55) |
| &nbsp;&nbsp;&nbsp;Net transactions recorded during the period: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Losses recognized in earnings <sup>(b)</sup> | (9) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) recognized as regulatory assets and liabilities <sup>(a)</sup> | 11 | (13) |
| Balance at Sept. 30 | $47 | $50 |

---

<sup>(a)</sup>Relates primarily to FTR instruments administered by MISO.

<sup>(b)</sup>Relates to commodity trading and is subject to substantial offsetting losses and gains on derivative instruments categorized as levels 1 and 2 in the consolidated income statement. See above tables for the income statement impact of derivative activity, including commodity trading gains and losses.

**Fair Value of Long-Term Debt**

As of Sept. 30, 2025, other financial instruments for which the carrying amount did not equal fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Sept. 30, 2025** | **Sept. 30, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** |
|<br>**(Millions of Dollars)** | **Carrying Amount** | **Fair Value** | **Carrying Amount** | **Fair Value** |
| Long-term debt, including current portion | $8504 | $7726 | $7857 | $6755 |
| Long-term debt - related parties | 356 | 230 | 166 | 99 |

---

Fair value of NSP-Minnesota's long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of Sept. 30, 2025 and Dec. 31, 2024, and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.

**8. Benefit Plans and Other Postretirement Benefits**

**Components of Net Periodic Benefit Cost**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** |
| | **2025** | **2024** | **2025** | **2024** |
|<br>**(Millions of Dollars)** | **Pension Benefits** | **Pension Benefits** | **Postretirement Health<br>Care Benefits** | **Postretirement Health<br>Care Benefits** |
| Service cost | $6 | $5 | $— | $— |
| Interest cost <sup>(a)</sup> | 8 | 8 |  | 1 |
| Expected return on plan assets <sup>(a)</sup> | (12) | (11) |  |  |
| Amortization of net loss <sup>(a)</sup> | 2 | 3 |  |  |
| Settlement charge <sup>(b)</sup> |  | 4 |  |  |
| &nbsp;&nbsp;Net periodic benefit cost | 4 | 9 |  | 1 |
| Effects of regulation | 3 | (1) |  |  |
| &nbsp;&nbsp;&nbsp;Net benefit cost recognized for financial reporting | $7 | $8 | $— | $1 |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| | **2025** | **2024** | **2025** | **2024** |
|<br>**(Millions of Dollars)** | **Pension Benefits** | **Pension Benefits** | **Postretirement Health<br>Care Benefits** | **Postretirement Health<br>Care Benefits** |
| Service cost | $16 | $16 | $— | $— |
| Interest cost <sup>(a)</sup> | 26 | 25 | 2 | 2 |
| Expected return on plan assets <sup>(a)</sup> | (34) | (34) |  |  |
| Amortization of net loss <sup>(a)</sup> | 8 | 9 |  |  |
| Settlement charge <sup>(b)</sup> |  | 35 |  |  |
| &nbsp;&nbsp;Net periodic benefit cost | 16 | 51 | 2 | 2 |
| Effects of regulation | 7 | (30) |  |  |
| &nbsp;&nbsp;&nbsp;Net benefit cost recognized for financial reporting | $23 | $21 | $2 | $2 |

---

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

<sup>(b)</sup>A settlement charge is required when the amount of 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. As a result of lump-sum distributions during the 2024 plan year, NSP-Minnesota recorded a pension settlement charge of $4 million and $35 million, respectively, which was not recognized in earnings due to the effects of rate making, for the three and nine months ended Sept. 30, 2024.

In January 2025, contributions totaling $125 million were made across Xcel Energy's pension plans, of which $54 million was attributable to NSP-Minnesota. Xcel Energy does not expect additional pension contributions during 2025.

**9. Commitments and Contingencies**<br>

**Legal**

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

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

**Rate Matters and Other**

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

***Prairie Island Outage Prudency Review*** — In March 2024, NSP-Minnesota filed its annual fuel clause adjustment true-up petition to the MPUC. In a response to that petition, intervenors recommended refunds for replacement power costs related to an outage at the Prairie Island generating station (October 2023 through February 2024).

In a September 2024 decision, the MPUC ruled NSP-Minnesota was imprudent in the operation of the Prairie Island nuclear plant based on an incident that resulted in the extended outage. The MPUC did not quantify the refund and referred the determination of the refund amount to the Office of Administrative Hearings. NSP-Minnesota recorded an estimated liability for a customer refund in 2024.

In May 2025, in the resulting case currently before an ALJ to determine the refund amount, NSP-Minnesota submitted direct testimony asserting that no more than $6 million of customer refunds are warranted for the outage.

In July 2025, intervenor direct testimony was filed by the DOC, OAG, and XLI. These parties, together with the CUB, also filed a joint motion requesting the ALJ rule that customer refunds cannot be adjusted as proposed by NSP-Minnesota, including certain reductions for avoided future outages. If NSP-Minnesota's proposed adjustments were rejected, and other DOC and OAG direct testimony recommendations were applied to both 2023 and 2024, NSP-Minnesota estimates that the customer refunds would be approximately $34 million. The joint motion was denied in August 2025, and the application of the adjustments will be addressed in the case before the ALJ.

Rebuttal and surrebuttal testimony were filed in August and September 2025. An ALJ report is expected in March 2026, with a MPUC decision expected in the second quarter of 2026.

**Environmental**

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

***Site Remediation***

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

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

***MGP, Landfill and Disposal Sites*** 

NSP-Minnesota is investigating, remediating or performing post-closure actions at eight historical MGP, landfill or other disposal sites across its service territories.

NSP-Minnesota has approximately $1 million of remaining liabilities for resolution of these issues, however, the final outcome and timing are unknown. In addition, there may be regulatory recovery, insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred.

***Water and Waste***

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

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

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

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

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

NSP-Minnesota expects to incur $6 million for investigations through 2028 to perform required reporting and assess whether corrective actions are necessary. AROs have been recorded for each of these activities, and amounts are expected to be recoverable through regulatory mechanisms.

NSP-Minnesota has also identified coal ash that is expected to be required to be removed from certain closed coal-generating facilities at estimated costs totaling approximately $60 million. AROs have been recorded, with the costs expected to be recoverable through regulatory mechanisms.

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

In July 2025, the EPA issued a proposed rule amending the CCR Legacy rule. The proposal seeks to extend deadlines for various regulatory actions and clarify previous information regarding implementation of the rule. Xcel Energy will monitor the proposed rule and evaluate the impacts of any final rule.

*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.

NSP-Minnesota estimates capital expenditures of approximately $45 million may be required to comply with the requirements. NSP-Minnesota anticipates these costs will be recoverable through regulatory mechanisms.

***Air***

*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 that established NOx allowance budgets for fossil fuel-fired electric generating facilities in subject states. The final rule applies to generation facilities in Minnesota, as well as other states outside of our service territory.

However, the plan is subject to both judicial and administrative stays and the EPA has announced that it intends to reconsider the rule.

Compliance with the published plan would require subject facilities to secure additional allowances, install NOx controls and/or develop a strategy of operations that utilizes the existing allowance allocations. While the financial impacts of the final rule are uncertain and dependent on market forces and anticipated generation, if the rule is implemented, NSP-Minnesota anticipates the annual costs could be significant but would be recoverable through regulatory mechanisms.

**Leases**

NSP-Minnesota evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, as well as certain contracts for the use of land, vehicles and other equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset.

In the third quarter of 2025, certain PPAs for natural gas fueled generating facilities were amended, extending NSP-Minnesota's use of these plants to 2039 and 2048. The amended agreements qualify for classification as finance leases. As of Sept. 30, 2025, other current liabilities and non-current finance lease liabilities include $37 million and $1.2 billion of finance lease obligations for these amended PPAs, respectively. Prior to these amendments, the agreements were classified as operating leases.

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

Components of lease expense:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** |
|<br>**(Millions of Dollars)** | **2025** | **2024** |
| Operating leases |  |  |
| &nbsp;&nbsp;&nbsp;PPA capacity payments | $12 | $24 |
| &nbsp;&nbsp;Other operating leases <sup>(a)</sup> | 3 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating lease expense | $15 | $28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance leases |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of ROU assets | $3 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense on lease liability | 11 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total finance lease expense | $14 | $— |

---

<sup>(a)</sup>Includes immaterial short-term lease expense.

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
|<br>**(Millions of Dollars)** | **2025** | **2024** |
| Operating leases |  |  |
| &nbsp;&nbsp;&nbsp;PPA capacity payments | $62 | $72 |
| &nbsp;&nbsp;Other operating leases <sup>(a)</sup> | 12 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating lease expense | $74 | $84 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance leases |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of ROU assets | $3 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense on lease liability | 11 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total finance lease expense | $14 | $— |

---

<sup>(a)</sup>Includes immaterial short-term lease expense.

Commitments under operating and finance leases as of Sept. 30, 2025:

---

| | | |
|:---|:---|:---|
| **(Millions of Dollars)** | **Operating<br>Leases** | **Finance Leases** |
| Total minimum obligation | $248 | $2010 |
| Interest component of obligation | (121) | (759) |
| Present value of minimum obligation | 127 | 1251 |
| Less current portion | (7) | (37) |
| Noncurrent operating and finance lease liabilities | $120 | $1214 |

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**Variable Interest Entities**

Under certain PPAs, NSP-Minnesota purchases power from IPPs for which NSP-Minnesota is required to reimburse fuel costs, or to participate in tolling arrangements under which NSP-Minnesota procures the natural gas required to produce the energy that it purchases. NSP-Minnesota has determined that certain IPPs are VIEs, however NSP-Minnesota 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.

NSP-Minnesota 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. NSP-Minnesota concluded that these entities are not required to be consolidated in its consolidated financial statements because NSP-Minnesota does not have the power to direct the activities that most significantly impact the entities' economic performance.

NSP-Minnesota had 1,347 MW of capacity under long-term PPAs at both Sept. 30, 2025 and Dec. 31, 2024, with entities that have been determined to be VIEs. These agreements have expiration dates through 2039.

**10. Other Comprehensive Loss**<br>

Changes in accumulated other comprehensive loss, net of tax:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** |
|<br>**(Millions of Dollars)** | **Gains and Losses on Cash Flow Hedges** | **Defined Benefit Pension and Postretirement Items** | **Total** | **Gains and Losses on Cash Flow Hedges** | **Defined Benefit Pension and Postretirement Items** | **Total** |
| Accumulated other comprehensive loss at July 1 | $(2) | $(2) | $(4) | $(6) | $(2) | $(8) |
| Gains reclassified from net accumulated other comprehensive income: |  |  |  |  |  |  |
| &nbsp;&nbsp;Other comprehensive loss before reclassifications | (1) |  | (1) |  |  |  |
| Net current period other comprehensive income | (1) |  | (1) |  |  |  |
| Accumulated other comprehensive loss at Sept. 30 | $(3) | $(2) | $(5) | $(6) | $(2) | $(8) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** |
|<br>**(Millions of Dollars)** | **Gains and Losses on Cash Flow Hedges** | **Defined Benefit Pension and Postretirement Items** | **Total** | **Gains and Losses on Cash Flow Hedges** | **Defined Benefit Pension and Postretirement Items** | **Total** |
| Accumulated other comprehensive loss at Jan. 1 | $(6) | $(2) | $(8) | $(18) | $(2) | $(20) |
| Gains reclassified from net accumulated other comprehensive income: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive gain before reclassifications | 3 |  | 3 | 12 |  | 12 |
| Net current period other comprehensive income | 3 |  | 3 | 12 |  | 12 |
| Accumulated other comprehensive loss at Sept. 30 | $(3) | $(2) | $(5) | $(6) | $(2) | $(8) |

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**11. Segment Information**

Segment information and reconciliation to NSP-Minnesota's consolidated net income:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** | **Three Months Ended Sept. 30, 2025** |
|<br>**(Millions of Dollars)** | **Regulated electric utility** | **Regulated natural gas utility** | **Total segments** |
| Operating revenues <sup>(a)</sup> | $1676 | $65 | $1741 |
| Intersegment revenue |  | 5 | 5 |
| &nbsp;&nbsp;Total segment revenues | 1676 | 70 | 1746 |
| Electric fuel and purchased power | 526 |  | 526 |
| Cost of natural gas sold and transported |  | 18 | 18 |
| O&M expenses | 344 | 30 | 374 |
| Depreciation and amortization | 280 | 24 | 304 |
| Other segment expenses, net | 68 | 12 | 80 |
| Interest charges and financing costs | 93 | 9 | 102 |
| Income tax expense (benefit) | 41 | (7) | 34 |
| Net income (loss) | $324 | $(16) | $308 |
| Total segment net income |  |  | $308 |
| Non-segment net income |  |  | 5 |
| Consolidated net income |  |  | $313 |

---

<sup>(a)</sup>Regulated electric results include $135 million of affiliate revenues. Regulated natural gas results include an immaterial amount of affiliate revenues.

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** | **Three Months Ended Sept. 30, 2024** |
|<br>**(Millions of Dollars)** | **Regulated electric utility** | **Regulated natural gas utility** | **Total segments** |
| Operating revenues <sup>(a)</sup> | $1572 | $59 | $1631 |
| Electric fuel and purchased power | 591 |  | 591 |
| Cost of natural gas sold and transported |  | 13 | 13 |
| O&M expenses | 312 | 25 | 337 |
| Depreciation and amortization | 256 | 21 | 277 |
| Other segment expenses, net | 80 | 5 | 85 |
| Interest charges and financing costs | 77 | 7 | 84 |
| Income tax benefit | (1) | (4) | (5) |
| Net income | $257 | $(8) | $249 |
| Total segment net income |  |  | $249 |
| Non-segment net income |  |  | 3 |
| Consolidated net income |  |  | $252 |

---

<sup>(a)</sup>Regulated electric results include $128 million of affiliate revenues. Regulated natural gas results include an immaterial amount of affiliate revenues.

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** | **Nine Months Ended Sept. 30, 2025** |
|<br>**(Millions of Dollars)** | **Regulated electric utility** | **Regulated natural gas utility** | **Total segments** |
| Operating revenues <sup>(a)</sup> | $4306 | $535 | $4841 |
| Intersegment revenue |  | 11 | 11 |
| &nbsp;&nbsp;Total segment revenues | 4306 | 546 | 4852 |
| Electric fuel and purchased power | 1486 |  | 1486 |
| Cost of natural gas sold and transported |  | 279 | 279 |
| O&M expenses | 978 | 83 | 1061 |
| Depreciation and amortization | 815 | 67 | 882 |
| Other segment expenses, net | 203 | 51 | 254 |
| Interest charges and financing costs | 256 | 25 | 281 |
| Income tax (benefit) expense | (73) | 9 | (64) |
| Net income | $641 | $32 | $673 |
| Total segment net income |  |  | $673 |
| Non-segment net income |  |  | 13 |
| Consolidated net income |  |  | $686 |

---

<sup>(a)</sup>Regulated electric results include $377 million of affiliate revenues. Regulated natural gas results include an immaterial amount of affiliate revenues.

---

| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** | **Nine Months Ended Sept. 30, 2024** |
|<br>**(Millions of Dollars)** | **Regulated electric utility** | **Regulated natural gas utility** | **Total segments** |
| Operating revenues <sup>(a)</sup> | $4064 | $422 | $4486 |
| Intersegment revenue |  | 1 | 1 |
| &nbsp;&nbsp;Total segment revenues | 4064 | 423 | 4487 |
| Electric fuel and purchased power | 1514 |  | 1514 |
| Cost of natural gas sold and transported |  | 175 | 175 |
| O&M expenses | 897 | 77 | 974 |
| Depreciation and amortization | 756 | 59 | 815 |
| Other segment expenses, net | 244 | 28 | 272 |
| Interest charges and financing costs | 230 | 22 | 252 |
| Income tax (benefit) expense | (101) | 15 | (86) |
| Net income | $524 | $47 | $571 |
| Total segment net income |  |  | $571 |
| Non-segment net income |  |  | 23 |
| Consolidated net income |  |  | $594 |

---

<sup>(a)</sup>Regulated electric results include $370 million of affiliate revenues. Regulated natural gas results include an immaterial amount of affiliate revenues.

Asset and capital expenditure information is not provided for NSP-Minnesota's reportable segments. As an integrated electric and natural gas utility, NSP-Minnesota operates significant assets that are not dedicated to a specific business segment.

Reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

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

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

**ITEM 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**<br>

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

**Non-GAAP Financial Measures**

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

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

***Earnings Adjusted for Certain Items (Ongoing Earnings)***

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

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended Sept. 30** | **Three Months Ended Sept. 30** | **Nine Months Ended Sept. 30** | **Nine Months Ended Sept. 30** |
| **(Millions of Dollars)** | **2025** | **2024** | **2025** | **2024** |
| GAAP net income | $313 | $252 | $686 | $594 |
| Sherco Unit 3 2011 outage refunds |  | 35 |  | 46 |
| Less: tax effect of adjustment |  | (10) |  | (13) |
| Ongoing earnings | $313 | $277 | $686 | $627 |

---

*Sherco Unit 3 2011 Outage Refunds —* NSP-Minnesota's Sherco Unit 3 experienced an extended outage following a 2011 incident which damaged its turbine. In October 2024 following contested case procedures, the MPUC ordered a customer refund of $46 million for replacement power incurred during the outage, which is presented as a non-recurring charge to electric revenues.

**Results of Operations**

NSP-Minnesota's GAAP net income was $686 million for the nine months ended Sept. 30, 2025, compared with $594 million for the prior year. Ongoing net income was $686 million for the nine months ended Sept. 30, 2025, compared to $627 million for the prior year. The higher ongoing earnings primarily reflect higher recovery of electric infrastructure investments, partially offset by increased O&M expenses, depreciation and interest charges.

**Electric Revenue**

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

---

| | |
|:---|:---|
| **(Millions of Dollars)** | **Nine Months Ended Sept. 30, 2025 vs. 2024** |
| Regulatory rate outcomes | $90 |
| Sherco Unit 3 2011 outage refunds | 46 |
| Non-fuel riders | 39 |
| Estimated impact of weather | 23 |
| Sales and demand | 19 |
| Electric transmission revenues | 14 |
| Conservation and DSM (offset in expense) | (53) |
| Recovery of lower electric fuel and purchased power expenses | (17) |
| Other, net | 81 |
| &nbsp;&nbsp;&nbsp;Total increase | $242 |

---

**Natural Gas Revenues**

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

---

| | |
|:---|:---|
| **(Millions of Dollars)** | **Nine Months Ended Sept. 30, 2025 vs. 2024** |
| Recovery of higher natural gas costs (sold and transported) | $103 |
| Conservation revenue (offset in expense) | 14 |
| Other, net | (4) |
| &nbsp;&nbsp;&nbsp;Total increase | $113 |

---

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

Electric fuel and purchased power expenses decreased $28 million year-to-date. The decrease was primarily due to decreased volumes and capacity costs, partially offset by increased commodity prices.

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

Natural gas sold and transported increased $104 million year-to-date. The increase was primarily due to timing of fuel recovery mechanisms as well as increased commodity prices and volumes.

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**Non-Fuel Operating Expenses and Other Items**

***O&M Expenses*** *—* O&M expenses increased $100 million year-to-date. The increase was primarily due to nuclear generation maintenance, benefits costs, the impact of a 2024 gain on land sale and increased insurance costs.

***Depreciation and Amortization*** *—* Depreciation and amortization expense increased $66 million year-to-date, which was largely the result of system investment.

***Interest Charges*** — Interest charges increased $37 million year-to-date, which was largely due to higher debt levels.

**Public Utility Regulation and Other**

The FERC and various state and local regulatory commissions regulate NSP-Minnesota. NSP-Minnesota is subject to rate regulation by state utility regulatory agencies, which have jurisdiction with respect to the rates of electric and natural gas distribution companies in Minnesota, North Dakota and South Dakota.

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

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

Except to the extent noted below, the circumstances set forth in Public Utility Regulation included in Item 7 of NSP-Minnesota's Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u> for the year ended Dec. 31, 2024 appropriately represent, in all material respects, the current status of public utility regulation and are incorporated herein by reference.

***Upcoming, Pending and Recently Concluded Regulatory Proceedings***

*2025 Minnesota Natural Gas Rate Case* — On Oct. 31, 2025, NSP-Minnesota plans to file a natural gas rate case in Minnesota, seeking a total revenue increase of $63 million (8.2%). The filing is based on a 2026 forecast test year and includes an ROE of 10.65%, a 52.5% equity ratio and rate base of $1.5 billion. NSP-Minnesota will also request interim rates of $51 million to go into effect on Jan. 1, 2026. As part of the request, NSP-Minnesota plans to file an option for a stay-out alternative.

*2022 Minnesota Electric Rate Case —* In October 2021, NSP-Minnesota filed a three-year electric rate case with the MPUC.

In July 2023, the MPUC approved a three-year rate increase of approximately $332 million for 2022-2024, based on a ROE of 9.25% and an equity ratio of 52.5%. The MPUC also approved a continuation of the sales true-up mechanism.

In November 2023, NSP-Minnesota filed an appeal to the Minnesota Court of Appeals regarding MPUC decisions relating to executive compensation, insurance expense and treatment of prepaid pension assets.

In January 2025, the Court issued its opinion, which upheld the commission's determination on insurance expense, but reversed and remanded the executive compensation and prepaid pension asset decisions back to the MPUC. In June 2025, the MPUC ordered proceedings to reconsider the treatment of prepaid pension assets and executive compensation, with the procedural schedule expected to be established in the fourth quarter of 2025.

*2024 Minnesota Electric Rate Case —* In November 2024, NSP-Minnesota filed an electric rate case in Minnesota based on an ROE of 10.3%, a 52.5% equity ratio and rate base of $13.2 billion in 2025 and $14 billion in 2026. In December 2024, the MPUC approved interim rates of $192 million, effective Jan. 1, 2025. In March 2025, NSP-Minnesota filed supplemental direct testimony, updating its total revenue request to $473 million.

In August 2025, eight parties filed testimony. The DOC, OAG, XLI, the CUB, Walmart and Joint Intervenors were the only parties to quantify recommended financial adjustments. XLI recommended $190 million in proposed adjustments, based on a reduced ROE and a reduction in certain O&M expenses. CUB recommended proposed adjustments based on a reduced ROE and elimination of reconnection and late fee revenues. Walmart recommended an adjustment based on a reduced ROE. Other parties provided issue specific recommendations.

Proposed DOC modifications to NSP-Minnesota's request are summarized below:

---

| | | |
|:---|:---|:---|
| **(Millions of Dollars)** | **2025** | **2026** |
| **NSP-Minnesota's filed base revenue request** | $344 | $473 |
| **Recommended adjustments:** |  |  |
| Rate of return | (101) | (107) |
| O&M expenses | (62) | (56) |
| Generation capacity revenue <sup>(a)</sup> | (39) | (40) |
| Depreciation | (29) | (32) |
| Federal production tax credits <sup>(a)</sup> | (22) | (10) |
| Riverside Generating Plant outage <sup>(b)</sup> | (18) | (13) |
| Prepaid pension assets and liability | (11) | (11) |
| Property tax <sup>(a)</sup> | (4) | (12) |
| Other, net | (9) | (25) |
| **Total adjustments** | (295) | (306) |
| **Total proposed revenue change** | $49 | $167 |

---

<sup>(a)</sup>Adjustments largely offset in trackers.

<sup>(b)</sup>Riverside Generating Plant experienced a mechanical failure in April 2025 that resulted in an extended outage.

Positions on NSP-Minnesota's filed rate request:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Recommended Position** | **DOC** | **XLI** | **CUB** | **Walmart** |
| ROE | 9.25% | 8.96% | 9.00% | 9.25% |
| Equity | 52.50% | N/A | N/A | N/A |

---

In October 2025, NSP-Minnesota filed rebuttal testimony, updating its total revenue request to $365 million. Of NSP-Minnesota's proposed adjustments, approximately $100 million relates to depreciation expense and $50 million are largely offset in trackers.

An ALJ report is expected in April 2026, with a MPUC decision expected in the third quarter of 2026.

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

*2025 South Dakota Electric Rate Case —* In June 2025, NSP-Minnesota filed a request with the SDPUC for a net annual electric rate increase of $44 million (15%). The filing is based on a 2024 historic test year, a requested ROE of 10.3%, rate base of approximately $1.2 billion and an equity ratio of 52.87%. NSP-Minnesota will request interim rates to begin on Jan. 1, 2026. If approved as filed, this rate request would result in an average annual residential bill increase of 3% over the period from 2016-2026.

The procedural schedule is as follows:

• Intervenor direct testimony: March 20, 2026

• Rebuttal testimony: April 14, 2026

• Evidentiary Hearing: April 28-30, 2026

A SDPUC decision is expected in the second quarter of 2026.

*2024 North Dakota Electric Rate Case —* In December 2024, NSP-Minnesota filed a request with the NDPSC for an annual electric rate increase of approximately $45 million, or 19.3% over current rates established in 2021. The filing is based on a 2025 forecast test year and includes a requested ROE of 10.3%, rate base of approximately $817 million and an equity ratio of 52.5%. In January 2025, the NDPSC approved interim rates, subject to refund, of approximately $27 million (implemented on Feb. 1, 2025).

On July 8, 2025, two intervenors filed testimony with a range of recommendations. NDPSC Staff recommended an increase of approximately $30 million, with a 9.41% ROE and a 50% equity ratio, along with other proposed adjustments that were not quantified. NSP-Minnesota estimates the NDPSC Staff recommendation would result in a rate increase of $20 million to $25 million. A NDPSC decision is expected in early 2026.

***NSP System***

NSP-Minnesota and NSP-Wisconsin are actively engaged in multiple processes and proceedings to acquire resources to meet their identified generation resource needs.

• In October 2023, NSP-Minnesota issued an RFP seeking 1,200 MW of wind assets to replace capacity and reutilize interconnection rights associated with the retiring Sherco coal facilities. The RFP closed in December 2023. NSP-Minnesota expects to file for approval of recommended projects in early 2026.

• In 2024, NSP-Minnesota and NSP-Wisconsin each issued an RFP collectively seeking up to 1,600 MW of wind, solar, storage or hybrid resources to interconnect to the NSP System, including reutilization of the interconnection rights associated with the retiring Sherco coal units, and 650 MW of solar and storage resources to specifically reutilize the interconnection rights associated with the retiring King coal unit. NSP-Minnesota and NSP-Wisconsin announced the short listed projects in January 2025 and plan to file for the requisite approvals of the selected resources with the MPUC and PSCW, respectively, in the fourth quarter of 2025.

• NSP-Minnesota and NSP-Wisconsin will continue to file additional RFPs throughout 2025 and 2026 for resource needs approved as part of the 2024 Upper Midwest Resource Plan.

**Other**

***Supply Chain***

NSP-Minnesota's ability to meet customer energy requirements and growing customer demand, respond to storm-related disruptions, and execute our capital expenditure program are dependent on maintaining an efficient supply chain.

Large global demand for energy-related infrastructure has stretched equipment supply chains, extended delivery dates and increased prices for items like combustion turbines, transformers and other large electrical equipment. The labor market for skilled engineering and construction resources to build renewables and gas generation has also been strained, impacting cost and availability.

In addition, manufacturing processes have experienced disruptions related to the scarcity of certain raw materials and interruptions in production and shipping. The impact of inflationary pressures, geopolitical events and federal policies have exacerbated the situation. NSP-Minnesota continues to monitor the situation as it remains fluid and seeks to mitigate the impacts by securing alternative suppliers and key vendor partners, increasing procurement lead times, modifying design standards, and adjusting the timing of work.

*Tariffs, Trade Complaints and Federal Actions*

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

In 2025, several executive orders have been issued imposing new global and country-specific tariffs on many imports, which may impact our procurement and development activities. Additionally, executive orders and actions from government agencies may impact the permitting of wind and solar facilities and the retirement of coal facilities.

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

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

***Tax Law Changes***

On July 4, 2025, the President signed into law Public Law No. 119-21 (the "OBBB"). The OBBB modifies certain clean energy tax provisions included in the Inflation Reduction Act. The provisions include:

• Eliminating production and investment tax credits for wind and solar facilities placed in service after 2027, for facilities that begin construction after July 4, 2026.

• The addition of foreign entity of concern rules that apply to projects commencing construction after 2025.

In August 2025, the U.S. Treasury issued further guidance related to the beginning of construction for clean energy projects.

NSP-Minnesota does not expect these provisions to have an impact on our 2026-2030 base capital plan, as steps have been taken to begin construction under the IRS' safe harbor guidance.

***Nuclear Antitrust Class Action***

A class action complaint was filed in federal court for the District of Maryland in July 2025, alleging violations of the Sherman Antitrust Act in establishing wages for employees at nuclear facilities since 2003. The complaint names 28 defendants, including all 26 owner operators of nuclear facilities in the United States, or affiliated entities, including Xcel Energy Inc. NSP-Minnesota owns and operates two nuclear facilities in Minnesota, and is assessing the complaint.

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**Environmental Regulation**

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

**Clean Air Act**

*Power Plant Greenhouse Gas Regulations —* In April 2024, the EPA published final rules addressing control of CO2 emissions from the power sector. The rules regulate new natural gas generating units and emission guidelines for existing coal and certain natural gas generation. The rules create subcategories of coal units based on planned retirement date and subcategories of natural gas combustion turbines and combined cycle units based on utilization. The CO2 control requirements vary by subcategory.

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

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

In July 2025, the EPA additionally proposed to repeal the 2009 Endangerment Finding and associated regulations addressing GHG emissions under the Clean Air Act. NSP-Minnesota will monitor the proposed rules and evaluate the impacts of any final rule.

In September 2025, the EPA proposed to amend the Clean Air Act GHG Reporting Program to scale back reporting and recordkeeping requirements. Under the amended program, NSP-Minnesota would no longer be required to report GHG emissions to the federal program. NSP-Minnesota will continue to report GHG emissions as required under state programs. NSP-Minnesota will monitor the proposed rule and evaluate the impacts of any final rule upon state reporting programs.

**Emerging Contaminants of Concern**

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

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

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

**Effluent Limitation Guidelines**

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

**ITEM 4 — CONTROLS AND PROCEDURES**<br>

**Disclosure Controls and Procedures**

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

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

As of Sept. 30, 2025, based on an evaluation carried out under the supervision and with the participation of NSP-Minnesota's management, including the CEO and CFO, of the effectiveness of its disclosure controls and procedures, the CEO and CFO have concluded that NSP-Minnesota's disclosure controls and procedures were effective.

**Internal Control Over Financial Reporting**

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

**PART II** — **OTHER INFORMATION**

**ITEM 1 — LEGAL PROCEEDINGS**<br>

NSP-Minnesota is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation.

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

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

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

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**ITEM 1A — RISK FACTORS**<br>

NSP-Minnesota's risk factors are documented in Item 1A of Part I of its Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u> for the year ended Dec. 31, 2024, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001123852/000112385225000005/nspm-20241231.htm)</u>.

**ITEM 5 — OTHER INFORMATION**<br>

None of the Company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company's fiscal quarter ended Sept. 30, 2025.

**ITEM 6 — EXHIBITS**

\* Indicates incorporation by reference

---

| | | | |
|:---|:---|:---|:---|
| **Exhibit Number** | **Description** | **Report or Registration Statement** | **Exhibit Reference** |
| [3.01\*](https://www.sec.gov/Archives/edgar/data/1123852/000091205700043903/a2026356zex-3_01.txt) | [Articles of Incorporation and Amendments of Northern Power Corp. (renamed NSP-Minnesota on Aug. 21, 2000)](https://www.sec.gov/Archives/edgar/data/1123852/000091205700043903/a2026356zex-3_01.txt) | NSP-Minnesota Form 10-12G dated Oct. 5, 2000 | 3.01 |
| [3.02\*](https://www.sec.gov/Archives/edgar/data/1123852/000112385219000004/nspmbylaws-amended012519.htm) | [Amended and Restated Bylaws of NSP-Minnesota, dated Jan. 25, 2019](https://www.sec.gov/Archives/edgar/data/1123852/000112385219000004/nspmbylaws-amended012519.htm) | NSP-Minnesota Form 10-K for the year ended Dec. 31, 2018 | 3.02 |
| [31.01](nspmex3101q32025.htm) | [Principal Executive Officer's certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](nspmex3101q32025.htm) |  |  |
| [31.02](nspmex3102q32025.htm) | [Principal Financial Officer's certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](nspmex3102q32025.htm) |  |  |
| [32.01](nspmex3201q32025.htm) | [Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](nspmex3201q32025.htm) |  |  |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |  |  |
| 101.SCH | Inline XBRL Schema | Inline XBRL Schema | Inline XBRL Schema |
| 101.CAL | Inline XBRL Calculation | Inline XBRL Calculation | Inline XBRL Calculation |
| 101.DEF | Inline XBRL Definition | Inline XBRL Definition | Inline XBRL Definition |
| 101.LAB | Inline XBRL Label | Inline XBRL Label | Inline XBRL Label |
| 101.PRE | Inline XBRL Presentation | Inline XBRL Presentation | Inline XBRL Presentation |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

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*[**Table of Contents**](#ifc81775c14864d20be368d186ea43f02_7)*

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
| | | **Northern States Power Company (a Minnesota corporation)** |
| October 30, 2025 | By: | /s/ MELISSA L. OSTROM |
|  |  | Melissa L. Ostrom |
|  |  | Senior Vice President, Controller |
|  |  | (Principal Accounting Officer) |
|  | By: | /s/ BRIAN J. VAN ABEL |
|  |  | Brian J. Van Abel |
|  |  | Executive Vice President, Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 31.01

**Exhibit 31.01**

**CERTIFICATION**

I, Robert C. Frenzel, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-Q of Northern States Power Company (a Minnesota corporation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 30, 2025

---

| |
|:---|
| /s/ ROBERT C. FRENZEL |
| Robert C. Frenzel |
| Chairman, Chief Executive Officer and Director |
| (Principal Executive Officer) |

---

## Exhibit 31.02

**Exhibit 31.02**

**CERTIFICATION**

I, Brian J. Van Abel, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-Q of Northern States Power Company (a Minnesota corporation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 30, 2025

---

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

---

## Exhibit 32.01

**Exhibit 32.01**

**OFFICER CERTIFICATION**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Northern States Power Company, a Minnesota corporation (NSP-Minnesota) on Form 10-Q for the quarter ended Sept. 30, 2025, as filed with the SEC on the date hereof (Form 10-Q), each of the undersigned officers of NSP-Minnesota certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:

(1)The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NSP-Minnesota as of the dates and for the periods expressed in the Form 10-Q.

Date: October 30, 2025

---

| |
|:---|
| /s/ ROBERT C. FRENZEL |
| Robert C. Frenzel |
| Chairman, Chief Executive Officer and Director |
| (Principal Executive Officer) |
| /s/ BRIAN J. VAN ABEL |
| Brian J. Van Abel |
| Executive Vice President, Chief Financial Officer and Director |
| (Principal Financial Officer) |

---

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to NSP-Minnesota and will be retained by NSP-Minnesota and furnished to the SEC or its staff upon request.