Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PUBLIC SERVICE CO OF COLORADO | |
Entity Central Index Key | 81,018 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues | ||||
Electric | $ 722,569 | $ 751,531 | $ 1,440,031 | $ 1,500,992 |
Natural gas | 178,481 | 191,975 | 506,975 | 565,178 |
Steam and other | 8,802 | 9,015 | 20,687 | 21,801 |
Total operating revenues | 909,852 | 952,521 | 1,967,693 | 2,087,971 |
Operating expenses | ||||
Electric fuel and purchased power | 275,955 | 296,002 | 571,885 | 618,760 |
Cost of natural gas sold and transported | 59,327 | 81,128 | 227,803 | 309,872 |
Cost of sales — steam and other | 3,429 | 3,649 | 7,210 | 9,342 |
Operating and maintenance expenses | 200,946 | 191,225 | 379,332 | 373,642 |
Demand side management program expenses | 29,356 | 33,513 | 57,079 | 63,582 |
Depreciation and amortization | 109,909 | 101,246 | 218,790 | 201,289 |
Taxes (other than income taxes) | 50,301 | 50,582 | 101,775 | 100,908 |
Total operating expenses | 729,223 | 757,345 | 1,563,874 | 1,677,395 |
Operating income | 180,629 | 195,176 | 403,819 | 410,576 |
Other income, net | 844 | 765 | 1,293 | 1,452 |
Allowance for funds used during construction — equity | 4,053 | 3,391 | 8,371 | 6,197 |
Interest charges and financing costs | ||||
Interest charges — includes other financing costs of $1,725, $1,555, $3,464 and $3,060, respectively | 46,570 | 43,894 | 92,318 | 86,984 |
Allowance for funds used during construction — debt | (1,617) | (1,325) | (3,227) | (2,423) |
Total interest charges and financing costs | 44,953 | 42,569 | 89,091 | 84,561 |
Income before income taxes | 140,573 | 156,763 | 324,392 | 333,664 |
Income taxes | 53,229 | 58,263 | 121,174 | 124,198 |
Net income | $ 87,344 | $ 98,500 | $ 203,218 | $ 209,466 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest charges and financing costs | ||||
Other financing costs | $ 1,725 | $ 1,555 | $ 3,464 | $ 3,060 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Comprehensive income: | ||||
Net income | $ 87,344 | $ 98,500 | $ 203,218 | $ 209,466 |
Amortization of losses (gains) included in net periodic benefit cost, net of tax of $1, $0, $134 and $0, respectively | 2 | 0 | (217) | 0 |
Derivative instruments: | ||||
Net fair value increase, net of tax of $3, $5, $2, and $2, respectively | 4 | 8 | 2 | 3 |
Reclassification of losses (gains) to net income, net of tax of $161, $(64), $324 and $(128), respectively | 262 | (106) | 526 | (211) |
Other comprehensive income (loss) | 268 | (98) | 311 | (208) |
Comprehensive income | $ 87,612 | $ 98,402 | $ 203,529 | $ 209,258 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative instruments: | ||||
Net fair value (decrease) increase, tax | $ 3 | $ 5 | $ 2 | $ 2 |
Reclassification of losses (gains) to net income, tax | 161 | (64) | 324 | (128) |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Tax | $ 1 | $ 0 | $ 134 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net income | $ 203,218 | $ 209,466 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 220,027 | 203,593 |
Demand side management program amortization | 1,466 | 2,043 |
Deferred income taxes | 126,796 | 88,418 |
Amortization of Investment Tax Credits | (1,402) | (1,467) |
Allowance for equity funds used during construction | (8,371) | (6,197) |
Net realized and unrealized hedging and derivative transactions | (372) | 4,909 |
Other Operating Activities, Cash Flow Statement | (388) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 55,101 | 76,019 |
Accrued unbilled revenues | 69,983 | 80,721 |
Inventories | 39,833 | 40,314 |
Prepayments and other | 34,979 | 72,954 |
Accounts payable | (22,032) | (81,167) |
Net regulatory assets and liabilities | (37,452) | 61,031 |
Other current liabilities | (72,786) | (65,671) |
Pension and other employee benefit obligations | (15,676) | (21,912) |
Change in other noncurrent assets | (337) | 1,467 |
Change in other noncurrent liabilities | (18,169) | (17,266) |
Net cash provided by operating activities | 574,418 | 647,255 |
Investing activities | ||
Utility capital/construction expenditures | (524,086) | (454,190) |
Proceeds from Insurance Settlement, Investing Activities | 608 | 0 |
Allowance for equity funds used during construction | 8,371 | 6,197 |
Investments in utility money pool arrangement | (437,000) | (141,300) |
Repayments from utility money pool arrangement | 437,000 | 157,300 |
(Payments for) proceeds from Other Investing Activities | (1,460) | 0 |
Net cash used in investing activities | (516,567) | (431,993) |
Financing activities | ||
Repayments of short-term borrowings, net | (14,000) | (329,000) |
Borrowings under utility money pool arrangement | 123,000 | 45,000 |
Repayments under utility money pool arrangement | (83,000) | (45,000) |
Proceeds from Issuance of Long-term Debt | 244,830 | 247,193 |
Repayments of Long-term Debt | (129,500) | 0 |
Contributions from (to) parent | (31,162) | 27,707 |
Dividends paid to parent | (167,288) | (164,302) |
Net cash used in financing activities | (57,120) | (218,402) |
Net change in cash and cash equivalents | 731 | (3,140) |
Cash and cash equivalents at beginning of period | 3,585 | 7,635 |
Cash and cash equivalents at end of period | 4,316 | 4,495 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (87,649) | (81,094) |
Cash received for income taxes, net | 40,849 | 40,957 |
Supplemental disclosure of non-cash investing transactions: | ||
Property, plant and equipment additions in accounts payable | $ 75,934 | $ 53,449 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 4,316 | $ 3,585 |
Accounts receivable, net | 246,129 | 300,882 |
Accounts receivable from affiliates | 37,293 | 4,909 |
Accrued unbilled revenues | 206,229 | 276,212 |
Inventories | 165,729 | 205,562 |
Regulatory assets | 83,724 | 92,072 |
Deferred income taxes | 52,529 | 62,662 |
Derivative instruments | 10,192 | 1,945 |
Prepaid taxes | 45,460 | 81,162 |
Prepayments and other | 22,813 | 22,698 |
Total current assets | 874,414 | 1,051,689 |
Property, plant and equipment, net | 12,456,655 | 12,172,211 |
Other assets | ||
Regulatory assets | 894,285 | 906,275 |
Derivative instruments | 4,006 | 3,478 |
Other | 21,353 | 18,224 |
Total other assets | 919,644 | 927,977 |
Total assets | 14,250,713 | 14,151,877 |
Current liabilities | ||
Current portion of long-term debt | 6,330 | 8,103 |
Short-term Debt | 0 | 14,000 |
Borrowings Payable Under Utility Money Pool Arrangement | 40,000 | 0 |
Accounts payable | 299,604 | 352,701 |
Accounts payable to affiliates | 42,122 | 76,643 |
Regulatory liabilities | 98,727 | 152,823 |
Taxes accrued | 97,920 | 166,660 |
Accrued interest | 48,213 | 49,698 |
Dividends payable to parent | 86,508 | 83,374 |
Derivative instruments | 5,891 | 8,881 |
Other | 75,300 | 78,910 |
Total current liabilities | 800,615 | 991,793 |
Deferred Tax Liabilities, Net, Noncurrent | 2,840,887 | 2,720,860 |
Deferred credits and other liabilities | ||
Deferred investment tax credits | 32,063 | 33,466 |
Regulatory liabilities | 493,958 | 471,421 |
Asset retirement obligations | 245,448 | 240,508 |
Derivative instruments | 10,408 | 13,020 |
Customer advances | 181,376 | 198,526 |
Pension and employee benefit obligations | 185,149 | 200,774 |
Other | 62,718 | 63,864 |
Total deferred credits and other liabilities | 4,052,007 | 3,942,439 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | 4,212,101 | 4,097,493 |
Common stock — 100 shares authorized at $0.01 par value; 100 shares outstanding at June 30, 2016 and Dec. 31, 2015, respectively | 0 | 0 |
Additional paid in capital | 3,653,556 | 3,620,824 |
Retained earnings | 1,555,959 | 1,523,164 |
Accumulated other comprehensive loss | (23,525) | (23,836) |
Total common stockholder’s equity | 5,185,990 | 5,120,152 |
Total liabilities and equity | $ 14,250,713 | $ 14,151,877 |
CONSOLIDATED BALANCE SHEETS (U8
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Capitalization, Long-term Debt and Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 100 | 100 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares outstanding (in shares) | 100 | 100 |
Management's Opinion
Management's Opinion | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Opinion | In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of PSCo and its subsidiaries as of June 30, 2016 and Dec. 31, 2015 ; the results of its operations, including the components of net income and comprehensive income, for the three and six months ended June 30, 2016 and 2015 ; and its cash flows for the six months ended June 30, 2016 and 2015 . All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2016 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, 2015 balance sheet information has been derived from the audited 2015 consolidated financial statements included in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2015 . These notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto, included in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2015 , filed with the SEC on Feb. 22, 2016. Due to the seasonality of PSCo’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies set forth in Note 1 to the consolidated financial statements in the PSCo Annual Report on Form 10-K for the year ended Dec. 31, 2015, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Recently Issued Revenue Recognition — In May 2014, the Financial Accounting Standards Board (FASB) issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update (ASU) No. 2014-09) , which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. The new guidance also includes additional disclosure requirements regarding revenue, cash flows and obligations related to contracts with customers. The guidance is effective for interim and annual reporting periods beginning after Dec. 15, 2017. PSCo is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. Presentation of Deferred Taxes — In November 2015, the FASB issued Balance Sheet Classification of Deferred Taxes, Topic 740 (ASU No 2015-17) , which eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet based on the classification of the related asset or liability, and instead requires classification of all deferred tax assets and liabilities as noncurrent. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. Other than the prescribed classification of all deferred tax assets and liabilities as noncurrent, PSCo does not expect the implementation of ASU 2015-17 to have a material impact on its consolidated financial statements. Classification and Measurement of Financial Instruments — In January 2016, the FASB issued Recognition and Measurement of Financial Assets and Financial Liabilities, Subtopic 825-10 (ASU No. 2016-01) , which among other changes in accounting and disclosure requirements, replaces the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes, and also eliminates the available-for-sale classification for marketable equity securities. Under the new guidance, other than when the consolidation or equity method of accounting is utilized, changes in the fair value of equity securities are to be recognized in earnings. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2017. PSCo is currently evaluating the impact of adopting ASU 2016-01 on its consolidated financial statements. Leases — In February 2016, the FASB issued Leases, Topic 842 (ASU No. 2016-02) , which, for lessees, requires balance sheet recognition of right-of-use assets and lease liabilities for all leases. Additionally, for leases that qualify as finance leases, the guidance requires expense recognition consisting of amortization of the right-of-use asset as well as interest on the related lease liability using the effective interest method. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2018, and early adoption is permitted. PSCo is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements. Stock Compensation — In March 2016, the FASB issued Improvements to Employee Share-Based Payment Accounting, Topic 718 (ASU 2016-09), which amends existing guidance to simplify several aspects of accounting and presentation for share-based payment transactions, including the accounting for income taxes and forfeitures, as well as presentation in the statement of cash flows. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. PSCo does not expect the implementation of ASU 2016-09 to have a material impact on its consolidated financial statements. Recently Adopted Consolidation — In February 2015, the FASB issued Amendments to the Consolidation Analysis, Topic 810 (ASU No. 2015-02) , which reduces the number of consolidation models and amends certain consolidation principles related to variable interest entities. PSCo implemented the guidance on Jan. 1, 2016, and the implementation did not have a significant impact on its consolidated financial statements. Presentation of Debt Issuance Costs — In April 2015, the FASB issued Simplifying the Presentation of Debt Issuance Costs, Subtopic 835-30 (ASU No. 2015-03) , which requires the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt, instead of presentation as an asset. PSCo implemented the new guidance as required on Jan. 1, 2016, and as a result, $26.0 million of deferred debt issuance costs were presented as a deduction from the carrying amount of long-term debt on the consolidated balance sheet as of March 31, 2016, and $26.6 million of such deferred costs were retrospectively reclassified from other non-current assets to long-term debt on the consolidated balance sheet as of Dec. 31, 2015. Fair Value Measurement — In May 2015, the FASB issued Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), Topic 820 (ASU No. 2015-07), which eliminates the requirement to categorize fair value measurements using a net asset value (NAV) methodology in the fair value hierarchy. PSCo implemented the guidance on Jan. 1, 2016, and the implementation did not have a material impact on its consolidated financial statements. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 6 Months Ended |
Jun. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | Selected Balance Sheet Data (Thousands of Dollars) June 30, 2016 Dec. 31, 2015 Accounts receivable, net Accounts receivable $ 264,623 $ 321,004 Less allowance for bad debts (18,494 ) (20,122 ) $ 246,129 $ 300,882 (Thousands of Dollars) June 30, 2016 Dec. 31, 2015 Inventories Materials and supplies $ 58,162 $ 58,128 Fuel 68,408 78,586 Natural gas 39,159 68,848 $ 165,729 $ 205,562 (Thousands of Dollars) June 30, 2016 Dec. 31, 2015 Property, plant and equipment, net Electric plant $ 12,034,343 $ 11,856,126 Natural gas plant 3,521,245 3,420,249 Common and other property 870,530 862,840 Plant to be retired (a) 29,853 38,249 Construction work in progress 525,831 408,963 Total property, plant and equipment 16,981,802 16,586,427 Less accumulated depreciation (4,525,147 ) (4,414,216 ) $ 12,456,655 $ 12,172,211 (a) In 2017, PSCo expects to both early retire Valmont Unit 5 and convert Cherokee Unit 4 from a coal-fueled generating facility to natural gas, as approved by the Colorado Public Utilities Commission (CPUC). Amounts are presented net of accumulated depreciation. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Except to the extent noted below, Note 7 to the consolidated financial statements included in PSCo’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 appropriately represents, in all material respects, the current status of other income tax matters, and are incorporated herein by reference. Federal Audit — PSCo is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. In 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011 , including the 2009 carryback claim. As of June 30, 2016, the IRS had proposed an adjustment to the federal tax loss carryback claims that would result in $14 million of income tax expense for the 2009 through 2011 and 2013 claims, the recently filed 2014 claim, and the anticipated claim for 2015. PSCo is not expected to accrue any income tax expense related to this adjustment. In the fourth quarter of 2015, the IRS forwarded the issue to the Office of Appeals (Appeals). During the second quarter of 2016 the IRS audit team presented their case to Appeals; however, the outcome and timing of a resolution is uncertain. The statute of limitations applicable to Xcel Energy’s 2009 through 2011 federal income tax returns expires in December 2016 following an extension to allow additional time for the Appeals process. In the third quarter of 2015, the IRS commenced an examination of tax years 2012 and 2013 . As of June 30, 2016, the IRS had not proposed any material adjustments to tax years 2012 and 2013. State Audits — PSCo is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of June 30, 2016, PSCo’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2009 . There are currently no state income tax audits in progress. Unrecognized Tax Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual effective tax rate (ETR). In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment of cash to the taxing authority to an earlier period. A reconciliation of the amount of unrecognized tax benefit is as follows: (Millions of Dollars) June 30, 2016 Dec. 31, 2015 Unrecognized tax benefit — Permanent tax positions $ 2.8 $ 2.4 Unrecognized tax benefit — Temporary tax positions 15.5 15.0 Total unrecognized tax benefit $ 18.3 $ 17.4 The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: (Millions of Dollars) June 30, 2016 Dec. 31, 2015 NOL and tax credit carryforwards $ (5.1 ) $ (4.3 ) It is reasonably possible that PSCo’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS Appeals and audit progress and state audits resume. As the IRS Appeals and audit progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $11 million . The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. The payables for interest related to unrecognized tax benefits at June 30, 2016 and Dec. 31, 2015 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of June 30, 2016 or Dec. 31, 2015. |
Rate Matters
Rate Matters | 6 Months Ended |
Jun. 30, 2016 | |
Public Utilities, General Disclosures [Abstract] | |
Rate Matters | Rate Matters Except to the extent noted below, the circumstances set forth in Note 11 to the consolidated financial statements included in PSCo’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. Pending Regulatory Proceedings — CPUC Annual Electric Earnings Tests — As part of an annual earnings test, PSCo must share with customers earnings that exceed the authorized return on equity (ROE) threshold of 9.83 percent for 2015 through 2017. In April 2016, PSCo filed the 2015 earnings test, proposing an electric customer refund obligation of $14.9 million , which was approved by the CPUC in July 2016. The proposed refund obligation related to the 2015 earnings test was accrued for as of June 30, 2016. The current estimate of the 2016 earnings test, based on annual forecasted information, did not result in the recognition of a liability as of June 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Except to the extent noted below and in Note 5 above, the circumstances set forth in Notes 11 and 12 to the consolidated financial statements included in PSCo’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 , appropriately represent, in all material respects, the current status of commitments and contingent liabilities, and are incorporated herein by reference. The following include commitments, contingencies and unresolved contingencies that are material to PSCo’s financial position. Purchased Power Agreements (PPAs) Under certain PPAs, PSCo purchases power from independent power producing entities that own natural gas fueled power plants for which PSCo is required to reimburse natural gas fuel costs, or to participate in tolling arrangements under which PSCo procures the natural gas required to produce the energy that it purchases. These specific PPAs create a variable interest in the associated independent power producing entity. PSCo had approximately 1,571 megawatts (MW) and 1,802 MW of capacity under long-term PPAs as of June 30, 2016 and Dec. 31, 2015 , with entities that have been determined to be variable interest entities. PSCo has concluded that these entities are not required to be consolidated in its consolidated financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. These agreements have expiration dates through 2032 . Environmental Contingencies Environmental Requirements Water and Waste Coal Ash Regulation — PSCo’s operations are subject to federal and state laws that impose requirements for handling, storage, treatment and disposal of solid waste. In April 2015, the United States Environmental Protection Agency (EPA) published a final rule regulating the management and disposal of coal combustion byproducts (coal ash) as a nonhazardous waste. Under the final rule, PSCo’s costs to manage and dispose of coal ash has not significantly increased. In 2015, industry and environmental non-governmental organizations sought judicial review of the final rule. In June 2016, the D.C Circuit issued an order remanding and vacating certain elements of the rule as a result of partial settlements with these parties. Oral arguments are expected to be heard in the second half of 2016 and a final decision is anticipated in early 2017. Until a final decision is reached in the case, it is uncertain whether the litigation or partial settlements will have any significant impact on results of operations, financial position or cash flows on PSCo. Air Implementation of the National Ambient Air Quality Standard (NAAQS) for Sulfur Dioxide (SO 2 ) — The EPA adopted a more stringent NAAQS for SO 2 in 2010. The EPA is requiring states to evaluate areas in three phases. The first phase includes areas near PSCo’s Pawnee plant. The Pawnee plant recently installed an SO 2 scrubber to reduce SO 2 emissions. In June 2016, the EPA issued final designations which found the area near the Pawnee plant as “unclassifiable.” It is anticipated that the area near the Pawnee plant will be able to show compliance with the NAAQS through air dispersion modeling performed by the Colorado Department of Public Health and Environment. If an area is designated nonattainment in 2020, the respective states will need to evaluate all SO 2 sources in the area. The state would then submit an implementation plan, which would be due by 2022, designed to achieve the NAAQS by 2025. The areas near the remaining power plants, Comanche and Hayden, will be evaluated in the next designation phase, ending December 2017. Comanche and Hayden plants already utilize scrubbers to control SO 2 emissions. PSCo cannot evaluate the impacts until the designation of nonattainment areas is made and any required state plan has been developed. PSCo believes that, should SO 2 control systems be required for a plant, compliance costs will be recoverable through regulatory mechanisms and therefore does not expect a material impact on results of operations, financial position or cash flows. Legal Contingencies PSCo is involved in various litigation matters that are being defended and handled 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 such losses that are 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, arising from such current proceedings would have a material effect on PSCo’s financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. Employment, Tort and Commercial Litigation Pacific Northwest Federal Energy Regulatory Commission (FERC) Refund Proceeding — A complaint with the FERC posed that sales made in the Pacific Northwest in 2000 and 2001 through bilateral contracts were unjust and unreasonable under the Federal Power Act. The City of Seattle (the City) alleges between $34 million to $50 million in sales with PSCo is subject to refund. In 2003, the FERC terminated the proceeding, although it was later remanded back to the FERC in 2007 by the U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit). In May 2015, in the remand proceeding, the FERC issued an order rejecting the City’s claim that any of the sales made resulted in an excessive burden and concluded that the City failed to establish a causal link between any contracts and any claimed unlawful market activity. In February 2016, the City appealed this decision to the Ninth Circuit. This appeal is pending review by the Ninth Circuit. Also in December 2015, the Ninth Circuit issued an order and held that the standard of review applied by the FERC to the contracts which the City was challenging is appropriate. The Ninth Circuit dismissed questions concerning whether the FERC properly established the scope of the hearing, and determined that the challenged orders are preliminary and that the Ninth Circuit lacks jurisdiction to review evidentiary decisions until after the FERC’s proceedings are final. The City joined the State of California in its request seeking rehearing of this order, which the Ninth Circuit denied. Preliminary calculations of the City’s claim for refunds from PSCo are approximately $28 million , excluding interest, or approximately $60 million , including interest. PSCo has concluded that a loss is reasonably possible; however, given the surrounding uncertainties, PSCo is currently unable to estimate the amount or range of reasonably possible loss in the event of an adverse outcome of this matter. If a loss were sustained, PSCo would attempt to recover those losses from other PRPs. No accrual has been recorded for this matter. Line Extension Disputes — In December 2015, Development Recovery Company (DRC) filed a lawsuit in Denver State Court, stating PSCo failed to award proper allowances and refunds for line extensions to new developments pursuant to the terms of electric service agreements entered into by PSCo and various developers. The dispute involves assigned interests in those claims by over fifty developers. In May 2016, the district court granted PSCo’s motion to dismiss the lawsuit, concluding that jurisdiction over this dispute resides with the CPUC. In June 2016, DRC filed a notice of appeal. DRC also brought a proceeding before the CPUC as assignee on behalf of two developers, Ryland Homes and Richmond Homes of Colorado. In March 2016, the Administrative Law Judge (ALJ) issued an order rejecting DRC’s claims for additional allowances and refunds. In June 2016, the ALJ’s determination was approved by the CPUC. PSCo has concluded that a loss is remote with respect to this matter as the service agreements were developed to implement CPUC approved tariffs and PSCo has complied with the tariff provisions. Also, if a loss were sustained, PSCo believes it would be allowed to recover these costs through traditional regulatory mechanisms. The amount or range in dispute is presently unknown and no accrual has been recorded for this matter. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Borrowings and Other Financing Instruments Short-Term Borrowings Money Pool — Xcel Energy Inc. and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy Inc. may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy Inc. Money pool borrowings for PSCo were as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2016 Year Ended Dec. 31, 2015 Borrowing limit $ 250 $ 250 Amount outstanding at period end 40 — Average amount outstanding 11 1 Maximum amount outstanding 70 34 Weighted average interest rate, computed on a daily basis 0.63 % 0.41 % Weighted average interest rate at period end 0.62 N/A Commercial Paper — PSCo meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility. Commercial paper outstanding for PSCo was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2016 Year Ended Dec. 31, 2015 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 14 Average amount outstanding 25 95 Maximum amount outstanding 116 449 Weighted average interest rate, computed on a daily basis 0.63 % 0.51 % Weighted average interest rate at period end N/A 0.60 Letters of Credit — PSCo uses letters of credit, generally with terms of one year , to provide financial guarantees for certain operating obligations. At June 30, 2016 and Dec. 31, 2015 , there were $3 million and $4 million , respectively, of letters of credit outstanding under the credit facility. The contract amounts of these letters of credit approximate their fair value and are subject to fees. Credit Facility — In order to use its commercial paper program, PSCo must have a credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper in an aggregate amount exceeding available credit facility capacity. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. At June 30, 2016 , PSCo had the following committed credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 3 $ 697 (a) This credit facility expires in June 2021 . (b) Includes outstanding letters of credit. All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. PSCo had no direct advances on the credit facility outstanding at June 30, 2016 and Dec. 31, 2015 . Amended Credit Agreements - In June 2016, PSCo entered into an amended five-year credit agreement with a syndicate of banks. The total borrowing limit under the amended credit agreement remained at $700 million . The amended credit agreement has substantially the same terms and conditions as the prior credit agreement with the following exceptions: • The maturity extended from October 2019 to June 2021 . • The Eurodollar borrowing margins on these lines of credit were reduced to a range of 75 to 150 basis points per year, from a range of 87.5 to 175 basis points per year, based upon applicable long-term credit ratings. • The commitment fees, calculated on the unused portion of the lines of credit, were reduced to a range of 6 to 22.5 basis points per year, from a range of 7.5 to 27.5 basis points per year, also based on applicable long-term credit ratings. PSCo has the right to request an extension of the revolving credit facility termination date for two additional one-year periods, subject to majority bank group approval. Long-Term Borrowings In June, PSCo issued $250 million of 3.55 percent first mortgage bonds due June 15, 2046 . |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair Value Measurements The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: 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 highly liquid and actively traded instruments with quoted prices. Level 2 — Pricing inputs are other than quoted 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 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include the following: Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted prices. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The 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. When contractual settlements extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable forecasts of long-term forward prices and volatilities on a valuation is evaluated, and may result in Level 3 classification. Derivative Instruments Fair Value Measurements PSCo enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates, utility commodity prices and vehicle fuel prices. Interest Rate Derivatives — PSCo enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes. At June 30, 2016 , accumulated other comprehensive losses related to interest rate derivatives included $1.0 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for any unsettled hedges, as applicable. Wholesale and Commodity Trading Risk — PSCo conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy and energy-related instruments. PSCo’s risk management policy allows management to conduct these activities within guidelines and limitations as approved by its risk management committee. Commodity Derivatives — PSCo enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of energy or energy-related products, natural gas to generate electric energy, natural gas for resale, and vehicle fuel. At June 30, 2016 , PSCo had various vehicle fuel contracts designated as cash flow hedges extending through December 2016. PSCo also enters into derivative instruments that mitigate commodity price risk on behalf of electric and natural gas customers but are not designated as qualifying hedging transactions. Changes in the fair value of non-trading commodity derivative instruments are recorded in other comprehensive income or deferred as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. PSCo recorded immaterial amounts to income related to the ineffectiveness of cash flow hedges for the three and six months ended June 30, 2016 and 2015 . At June 30, 2016 , net losses related to commodity derivative cash flow hedges recorded as a component of accumulated other comprehensive losses included immaterial net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions occur. Additionally, PSCo enters into commodity derivative instruments for trading purposes not directly related to commodity price risks associated with serving its electric and natural gas customers. Changes in the fair value of these commodity derivatives are recorded in electric operating revenues, net of amounts credited to customers under margin-sharing mechanisms. The following table details the gross notional amounts of commodity forwards and options at June 30, 2016 and Dec. 31, 2015 : (Amounts in Thousands) (a)(b) June 30, 2016 Dec. 31, 2015 Megawatt hours of electricity 4,115 684 Million British thermal units of natural gas 41,586 12,515 Gallons of vehicle fuel 32 63 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. The following tables detail the impact of derivative activity during the three and six months ended June 30, 2016 and 2015 , on accumulated other comprehensive loss, regulatory assets and liabilities, and income: Three Months Ended June 30, 2016 Pre-Tax Fair Value Gains Recognized During the Period in: Pre-Tax Losses Reclassified into Income During the Period from: (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Pre-Tax Gains Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate $ — $ — $ 402 (a) $ — $ — Vehicle fuel and other commodity 7 — 21 (b) — — Total $ 7 $ — $ 423 $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 211 (c) Natural gas commodity — 5,626 — — 25 (d) Total $ — $ 5,626 $ — $ — $ 236 Six Months Ended June 30, 2016 Pre-Tax Fair Value Gains Recognized During the Period in: Pre-Tax Losses Reclassified into Income During the Period from: Pre-Tax Gains (Losses) Recognized During the Period in Income (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Derivatives designated as cash flow hedges Interest rate $ — $ — $ 804 (a) $ — $ — Vehicle fuel and other commodity 4 — 46 (b) — — Total $ 4 $ — $ 850 $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 228 (c) Natural gas commodity — 3,677 — 7,736 (d) (3,236 ) (d) Total $ — $ 3,677 $ — $ 7,736 $ (3,008 ) Three Months Ended June 30, 2015 Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: Pre-Tax (Gains) Losses Reclassified into Income During the Period from: (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Pre-Tax Gains Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate $ — $ — $ (182 ) (a) $ — $ — Vehicle fuel and other commodity 13 — 12 (b) — — Total $ 13 $ — $ (170 ) $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 191 (c) Natural gas commodity — (242 ) — (22 ) (d) — Total $ — $ (242 ) $ — $ (22 ) $ 191 Six Months Ended June 30, 2015 Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: Pre-Tax (Gains) Losses Reclassified into Income During the Period from: (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Pre-Tax Gains Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate $ — $ — $ (363 ) (a) $ — $ — Vehicle fuel and other commodity 5 — 24 (b) — — Total $ 5 $ — $ (339 ) $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 380 (c) Natural gas commodity — (416 ) — (5,627 ) (d) 5,460 (d) Total $ — $ (416 ) $ — $ (5,627 ) $ 5,840 (a) Recorded to interest charges. (b) Recorded to operating and maintenance (O&M) expenses. (c) Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate. (d) Amounts for the three and six months ended June 30, 2016 and 2015 included an immaterial amount of settlement losses on derivatives entered to mitigate natural gas price risk for electric generation, recorded to electric fuel and purchased power, subject to cost-recovery mechanisms and reclassified to a regulatory asset, as appropriate. The remaining derivative settlement gains and losses for the three and six months ended June 30, 2016 and 2015 relate to natural gas operations and are recorded to cost of natural gas sold and transported. These gains and losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset or liability, as appropriate. PSCo had no derivative instruments designated as fair value hedges during the three and six months ended June 30, 2016 and 2015 . Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. Consideration of Credit Risk and Concentrations — PSCo monitors the creditworthiness of the counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions. Given this assessment, as well as an assessment of the impact of PSCo’s own credit risk when determining the fair value of derivative liabilities, the impact of considering credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets. PSCo employs additional credit risk control mechanisms, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided. PSCo’s most significant concentrations of credit risk are contracts with counterparties to its wholesale, trading and non-trading commodity activities. At June 30, 2016 , five of PSCo’s 10 most significant counterparties, comprising $6.2 million or 14 percent of this credit exposure, had investment grade credit ratings from Standard & Poor’s Ratings Services, Moody’s Investor Services or Fitch Ratings. Four of the 10 most significant counterparties, comprising $19.2 million or 42 percent of this credit exposure, were not rated by these agencies, but based on PSCo’s internal analysis, had credit quality consistent with investment grade. Another of these significant counterparties, comprising $5.7 million or 12 percent of this credit exposure, had credit quality less than investment grade, based on ratings from external analysis. Six of these significant counterparties are municipal or cooperative electric entities, or other utilities. Credit Related Contingent Features — Contract provisions for derivative instruments that PSCo enters into, including those recorded to the consolidated balance sheet at fair value, as well as those accounted for as normal purchase-normal sale contracts and therefore not reflected on the balance sheet, may require the posting of collateral or settlement of the contracts for various reasons, including if PSCo is unable to maintain its credit ratings. At June 30, 2016 and Dec. 31, 2015 , no derivative instruments in a liability position would have required the posting of collateral or settlement of outstanding contracts if the credit ratings of PSCo were downgraded below investment grade. Certain derivative instruments are also subject to contract provisions that contain adequate assurance clauses. These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that PSCo’s ability to fulfill its contractual obligations is reasonably expected to be impaired. PSCo had no collateral posted related to adequate assurance clauses in derivative contracts as of June 30, 2016 and Dec. 31, 2015 . Recurring Fair Value Measurements — The following table presents, for each of the fair value hierarchy levels, PSCo’s assets and liabilities measured at fair value on a recurring basis at June 30, 2016 : June 30, 2016 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative assets Other derivative instruments: Commodity trading $ 1,956 $ 5,006 $ — $ 6,962 $ (5,950 ) $ 1,012 Natural gas commodity — 7,495 — 7,495 (31 ) 7,464 Total current derivative assets $ 1,956 $ 12,501 $ — $ 14,457 $ (5,981 ) 8,476 PPAs (a) 1,716 Current derivative instruments $ 10,192 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 40 $ 7 $ — $ 47 $ — $ 47 Natural gas commodity — 1,355 — 1,355 — 1,355 Total noncurrent derivative assets $ 40 $ 1,362 $ — $ 1,402 $ — 1,402 PPAs (a) $ 2,604 Noncurrent derivative instruments $ 4,006 Current derivative liabilities Derivatives designated as cash flow hedges: Vehicle fuel and other commodity $ — $ 37 $ — $ 37 $ — $ 37 Other derivative instruments: Commodity trading 2,169 4,421 41 6,631 (5,950 ) 681 Natural gas commodity — 31 — 31 (31 ) — Total current derivative liabilities $ 2,169 $ 4,489 $ 41 $ 6,699 $ (5,981 ) 718 PPAs (a) 5,173 Current derivative instruments $ 5,891 Noncurrent derivative liabilities PPAs (a) $ 10,408 Noncurrent derivative instruments $ 10,408 (a) In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, PSCo began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, PSCo qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. (b) PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at June 30, 2016 . At June 30, 2016 , derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. The following table presents, for each of the fair value hierarchy levels, PSCo’s assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2015 : Dec. 31, 2015 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative assets Other derivative instruments: Commodity trading $ 137 $ 351 $ — $ 488 $ (324 ) $ 164 Natural gas commodity — 352 — 352 (286 ) 66 Total current derivative assets $ 137 $ 703 $ — $ 840 $ (610 ) 230 PPAs (a) 1,715 Current derivative instruments $ 1,945 Noncurrent derivative assets Other derivative instruments: Commodity trading $ — $ 16 $ — $ 16 $ — $ 16 Total noncurrent derivative assets $ — $ 16 $ — $ 16 $ — 16 PPAs (a) $ 3,462 Noncurrent derivative instruments $ 3,478 Current derivative liabilities Derivatives designated as cash flow hedges: Vehicle fuel and other commodity $ — $ 92 $ — $ 92 $ — $ 92 Other derivative instruments: Commodity trading 34 325 — 359 (324 ) 35 Natural gas commodity — 3,850 — 3,850 (286 ) 3,564 Total current derivative liabilities $ 34 $ 4,267 $ — $ 4,301 $ (610 ) 3,691 PPAs (a) 5,190 Current derivative instruments $ 8,881 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ — $ 33 $ — $ 33 $ — $ 33 Total noncurrent derivative liabilities $ — $ 33 $ — $ 33 $ — 33 PPAs (a) 12,987 Noncurrent derivative instruments $ 13,020 (a) In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, PSCo began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, PSCo qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. (b) PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2015 . At Dec. 31, 2015 , derivative assets and liabilities included no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. There were immaterial losses recognized in earnings for level 3 commodity trading derivatives recognized in the three and six months ended June 30, 2016. There were no changes in Level 3 recurring fair value measurements for the three and six months ended June 30, 2015. PSCo recognizes transfers between levels as of the beginning of each period. There were no transfers of amounts between levels for derivative instruments for the three and six months ended June 30, 2016 and 2015 . Fair Value of Long-Term Debt As of June 30, 2016 and Dec. 31, 2015 , other financial instruments for which the carrying amount did not equal fair value were as follows: June 30, 2016 Dec. 31, 2015 (Thousands of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (a) $ 4,218,431 $ 4,821,310 $ 4,105,596 $ 4,376,875 (a) Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03. The fair value of PSCo’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of June 30, 2016 and Dec. 31, 2015 , and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Other income, net consisted of the following: Three Months Ended June 30 Six Months Ended June 30 (Thousands of Dollars) 2016 2015 2016 2015 Interest income $ 148 $ 142 $ 289 $ 375 Other nonoperating income 747 520 1,080 1,297 Insurance policy (expense) income (51 ) 103 (76 ) (220 ) Other income, net $ 844 $ 765 $ 1,293 $ 1,452 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by PSCo’s chief operating decision maker. PSCo evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment. PSCo has the following reportable segments: regulated electric utility, regulated natural gas utility and all other. • PSCo’s regulated electric utility segment generates, transmits and distributes electricity primarily in portions of Colorado. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. Regulated electric utility also includes PSCo’s commodity trading operations. • PSCo’s regulated natural gas utility segment transports, stores and distributes natural gas primarily in portions of Colorado. • Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category. Those primarily include steam revenue, appliance repair services and nonutility real estate activities. Asset and capital expenditure information is not provided for PSCo’s reportable segments because as an integrated electric and natural gas utility, PSCo operates significant assets that are not dedicated to a specific business segment, and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis. To report income from operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment. However, some costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators. A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising. (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended June 30, 2016 Operating revenues (a)(b) $ 722,569 $ 178,481 $ 8,802 $ — $ 909,852 Intersegment revenues 61 33 — (94 ) — Total revenues $ 722,630 $ 178,514 $ 8,802 $ (94 ) $ 909,852 Net income (loss) $ 79,328 $ 8,075 $ (59 ) $ — $ 87,344 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended June 30, 2015 Operating revenues (a)(b) $ 751,531 $ 191,975 $ 9,015 $ — $ 952,521 Intersegment revenues 69 (7 ) — (62 ) — Total revenues $ 751,600 $ 191,968 $ 9,015 $ (62 ) $ 952,521 Net income $ 87,676 $ 10,613 $ 211 $ — $ 98,500 (a) Operating revenues include $2 million and $3 million of affiliate electric revenue for the three months ended June 30, 2016 and 2015 , respectively. (b) Operating revenues include $1 million of other affiliate revenue for the three months ended June 30, 2016 and 2015 . (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Six Months Ended June 30, 2016 Operating revenues (a)(b) $ 1,440,031 $ 506,975 $ 20,687 $ — $ 1,967,693 Intersegment revenues 142 78 — (220 ) — Total revenues $ 1,440,173 $ 507,053 $ 20,687 $ (220 ) $ 1,967,693 Net income $ 151,864 $ 48,965 $ 2,389 $ — $ 203,218 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Six Months Ended June 30, 2015 Operating revenues (a)(b) $ 1,500,992 $ 565,178 $ 21,801 $ — $ 2,087,971 Intersegment revenues 157 34 — (191 ) — Total revenues $ 1,501,149 $ 565,212 $ 21,801 $ (191 ) $ 2,087,971 Net income (loss) $ 162,345 $ 47,236 $ (115 ) $ — $ 209,466 (a) Operating revenues include $5 million and $4 million of affiliate electric revenue for the six months ended June 30, 2016 and 2015 , respectively. (b) Operating revenues include $2 million of other affiliate revenue for the six months ended June 30, 2016 and 2015 . |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost (Credit) Three Months Ended June 30 2016 2015 2016 2015 (Thousands of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 6,492 $ 7,065 $ 192 $ 232 Interest cost 13,853 12,714 4,518 4,374 Expected return on plan assets (17,692 ) (18,147 ) (5,575 ) (5,950 ) Amortization of prior service credit (800 ) (784 ) (1,562 ) (1,562 ) Amortization of net loss 6,693 9,094 483 619 Net periodic benefit cost (credit) 8,546 9,942 (1,944 ) (2,287 ) Credits (costs) not recognized due to the effects of regulation 499 (366 ) — — Net benefit cost (credit) recognized for financial reporting $ 9,045 $ 9,576 $ (1,944 ) $ (2,287 ) Six Months Ended June 30 2016 2015 2016 2015 (Thousands of Dollars) Pension Benefits Postretirement Health Service cost $ 12,958 $ 14,130 $ 384 $ 464 Interest cost 27,702 25,428 9,036 8,749 Expected return on plan assets (35,384 ) (36,295 ) (11,150 ) (11,901 ) Amortization of prior service credit (1,607 ) (1,568 ) (3,124 ) (3,124 ) Amortization of net loss 13,386 18,188 966 1,238 Net periodic benefit cost (credit) 17,055 19,883 (3,888 ) (4,574 ) Credits (cost) not recognized due to the effects of regulation 1,265 (732 ) — — Net benefit cost (credit) recognized for financial reporting $ 18,320 $ 19,151 $ (3,888 ) $ (4,574 ) In January 2016, contributions of $125.0 million were made across four of Xcel Energy’s pension plans, of which $16.8 million was attributable to PSCo. Xcel Energy does not expect additional pension contributions during 2016. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, 2016 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit and Postretirement Items Total Accumulated other comprehensive loss at April 1 $ (23,574 ) $ (219 ) $ (23,793 ) Other comprehensive income before reclassifications 4 — 4 Losses reclassified from net accumulated other comprehensive loss 262 2 264 Net current period other comprehensive income 266 2 268 Accumulated other comprehensive loss at June 30 $ (23,308 ) $ (217 ) $ (23,525 ) Three Months Ended June 30, 2015 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Accumulated other comprehensive loss at April 1 $ (23,988 ) Other comprehensive loss before reclassifications 8 Gains reclassified from net accumulated other comprehensive loss (106 ) Net current period other comprehensive loss (98 ) Accumulated other comprehensive loss at June 30 $ (24,086 ) Six Months Ended June 30, 2016 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit and Postretirement Items Total Accumulated other comprehensive loss at Jan. 1 $ (23,836 ) $ — $ (23,836 ) Other comprehensive income (loss) before reclassifications 2 (219 ) (217 ) Losses reclassified from net accumulated other comprehensive loss 526 2 528 Net current period other comprehensive income (loss) 528 (217 ) 311 Accumulated other comprehensive loss at June 30 $ (23,308 ) $ (217 ) $ (23,525 ) Six Months Ended June 30, 2015 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Accumulated other comprehensive loss at Jan. 1 $ (23,878 ) Other comprehensive income before reclassifications 3 Gains reclassified from net accumulated other comprehensive loss (211 ) Net current period other comprehensive loss (208 ) Accumulated other comprehensive loss at June 30 $ (24,086 ) Reclassifications from accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Losses (gains) on cash flow hedges: Interest rate derivatives $ 402 (a) $ (182 ) (a) Vehicle fuel derivatives 21 (b) 12 (b) Total, pre-tax 423 (170 ) Tax (benefit) expense (161 ) 64 Total amounts reclassified, net of tax $ 262 $ (106 ) Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (Gains) losses on cash flow hedges: Interest rate derivatives $ 804 (a) $ (363 ) (a) Vehicle fuel derivatives 46 (b) 24 (b) Total, pre-tax 850 (339 ) Tax (benefit) expense (324 ) 128 Total amounts reclassified, net of tax $ 526 $ (211 ) (a) Included in interest charges. (b) Included in O&M expenses. |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Thousands of Dollars) June 30, 2016 Dec. 31, 2015 Accounts receivable, net Accounts receivable $ 264,623 $ 321,004 Less allowance for bad debts (18,494 ) (20,122 ) $ 246,129 $ 300,882 |
Inventories | (Thousands of Dollars) June 30, 2016 Dec. 31, 2015 Inventories Materials and supplies $ 58,162 $ 58,128 Fuel 68,408 78,586 Natural gas 39,159 68,848 $ 165,729 $ 205,562 |
Property, Plant and Equipment, Net | (Thousands of Dollars) June 30, 2016 Dec. 31, 2015 Property, plant and equipment, net Electric plant $ 12,034,343 $ 11,856,126 Natural gas plant 3,521,245 3,420,249 Common and other property 870,530 862,840 Plant to be retired (a) 29,853 38,249 Construction work in progress 525,831 408,963 Total property, plant and equipment 16,981,802 16,586,427 Less accumulated depreciation (4,525,147 ) (4,414,216 ) $ 12,456,655 $ 12,172,211 (a) In 2017, PSCo expects to both early retire Valmont Unit 5 and convert Cherokee Unit 4 from a coal-fueled generating facility to natural gas, as approved by the Colorado Public Utilities Commission (CPUC). Amounts are presented net of accumulated depreciation. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the amount of unrecognized tax benefit is as follows: (Millions of Dollars) June 30, 2016 Dec. 31, 2015 Unrecognized tax benefit — Permanent tax positions $ 2.8 $ 2.4 Unrecognized tax benefit — Temporary tax positions 15.5 15.0 Total unrecognized tax benefit $ 18.3 $ 17.4 |
Tax Benefits Associated with NOL and Tax Credit Carryforwards | The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: (Millions of Dollars) June 30, 2016 Dec. 31, 2015 NOL and tax credit carryforwards $ (5.1 ) $ (4.3 ) |
Borrowings and Other Financin24
Borrowings and Other Financing Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | At June 30, 2016 , PSCo had the following committed credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 700 $ 3 $ 697 (a) This credit facility expires in June 2021 . (b) Includes outstanding letters of credit. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings for PSCo were as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2016 Year Ended Dec. 31, 2015 Borrowing limit $ 250 $ 250 Amount outstanding at period end 40 — Average amount outstanding 11 1 Maximum amount outstanding 70 34 Weighted average interest rate, computed on a daily basis 0.63 % 0.41 % Weighted average interest rate at period end 0.62 N/A |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for PSCo was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended June 30, 2016 Year Ended Dec. 31, 2015 Borrowing limit $ 700 $ 700 Amount outstanding at period end — 14 Average amount outstanding 25 95 Maximum amount outstanding 116 449 Weighted average interest rate, computed on a daily basis 0.63 % 0.51 % Weighted average interest rate at period end N/A 0.60 |
Fair Value of Financial Asset25
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity Forwards and Options | The following table details the gross notional amounts of commodity forwards and options at June 30, 2016 and Dec. 31, 2015 : (Amounts in Thousands) (a)(b) June 30, 2016 Dec. 31, 2015 Megawatt hours of electricity 4,115 684 Million British thermal units of natural gas 41,586 12,515 Gallons of vehicle fuel 32 63 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income | The following tables detail the impact of derivative activity during the three and six months ended June 30, 2016 and 2015 , on accumulated other comprehensive loss, regulatory assets and liabilities, and income: Three Months Ended June 30, 2016 Pre-Tax Fair Value Gains Recognized During the Period in: Pre-Tax Losses Reclassified into Income During the Period from: (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Pre-Tax Gains Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate $ — $ — $ 402 (a) $ — $ — Vehicle fuel and other commodity 7 — 21 (b) — — Total $ 7 $ — $ 423 $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 211 (c) Natural gas commodity — 5,626 — — 25 (d) Total $ — $ 5,626 $ — $ — $ 236 Six Months Ended June 30, 2016 Pre-Tax Fair Value Gains Recognized During the Period in: Pre-Tax Losses Reclassified into Income During the Period from: Pre-Tax Gains (Losses) Recognized During the Period in Income (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Derivatives designated as cash flow hedges Interest rate $ — $ — $ 804 (a) $ — $ — Vehicle fuel and other commodity 4 — 46 (b) — — Total $ 4 $ — $ 850 $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 228 (c) Natural gas commodity — 3,677 — 7,736 (d) (3,236 ) (d) Total $ — $ 3,677 $ — $ 7,736 $ (3,008 ) Three Months Ended June 30, 2015 Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: Pre-Tax (Gains) Losses Reclassified into Income During the Period from: (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Pre-Tax Gains Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate $ — $ — $ (182 ) (a) $ — $ — Vehicle fuel and other commodity 13 — 12 (b) — — Total $ 13 $ — $ (170 ) $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 191 (c) Natural gas commodity — (242 ) — (22 ) (d) — Total $ — $ (242 ) $ — $ (22 ) $ 191 Six Months Ended June 30, 2015 Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: Pre-Tax (Gains) Losses Reclassified into Income During the Period from: (Thousands of Dollars) Accumulated Other Comprehensive Loss Regulatory (Assets) and Liabilities Accumulated Other Comprehensive Loss Regulatory Assets and (Liabilities) Pre-Tax Gains Recognized During the Period in Income Derivatives designated as cash flow hedges Interest rate $ — $ — $ (363 ) (a) $ — $ — Vehicle fuel and other commodity 5 — 24 (b) — — Total $ 5 $ — $ (339 ) $ — $ — Other derivative instruments Commodity trading $ — $ — $ — $ — $ 380 (c) Natural gas commodity — (416 ) — (5,627 ) (d) 5,460 (d) Total $ — $ (416 ) $ — $ (5,627 ) $ 5,840 (a) Recorded to interest charges. (b) Recorded to operating and maintenance (O&M) expenses. (c) Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate. (d) Amounts for the three and six months ended June 30, 2016 and 2015 included an immaterial amount of settlement losses on derivatives entered to mitigate natural gas price risk for electric generation, recorded to electric fuel and purchased power, subject to cost-recovery mechanisms and reclassified to a regulatory asset, as appropriate. The remaining derivative settlement gains and losses for the three and six months ended June 30, 2016 and 2015 relate to natural gas operations and are recorded to cost of natural gas sold and transported. These gains and losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset or liability, as appropriate. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Recurring Fair Value Measurements — The following table presents, for each of the fair value hierarchy levels, PSCo’s assets and liabilities measured at fair value on a recurring basis at June 30, 2016 : June 30, 2016 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative assets Other derivative instruments: Commodity trading $ 1,956 $ 5,006 $ — $ 6,962 $ (5,950 ) $ 1,012 Natural gas commodity — 7,495 — 7,495 (31 ) 7,464 Total current derivative assets $ 1,956 $ 12,501 $ — $ 14,457 $ (5,981 ) 8,476 PPAs (a) 1,716 Current derivative instruments $ 10,192 Noncurrent derivative assets Other derivative instruments: Commodity trading $ 40 $ 7 $ — $ 47 $ — $ 47 Natural gas commodity — 1,355 — 1,355 — 1,355 Total noncurrent derivative assets $ 40 $ 1,362 $ — $ 1,402 $ — 1,402 PPAs (a) $ 2,604 Noncurrent derivative instruments $ 4,006 Current derivative liabilities Derivatives designated as cash flow hedges: Vehicle fuel and other commodity $ — $ 37 $ — $ 37 $ — $ 37 Other derivative instruments: Commodity trading 2,169 4,421 41 6,631 (5,950 ) 681 Natural gas commodity — 31 — 31 (31 ) — Total current derivative liabilities $ 2,169 $ 4,489 $ 41 $ 6,699 $ (5,981 ) 718 PPAs (a) 5,173 Current derivative instruments $ 5,891 Noncurrent derivative liabilities PPAs (a) $ 10,408 Noncurrent derivative instruments $ 10,408 (a) In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, PSCo began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, PSCo qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. (b) PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at June 30, 2016 . At June 30, 2016 , derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. The following table presents, for each of the fair value hierarchy levels, PSCo’s assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2015 : Dec. 31, 2015 Fair Value Fair Value Total Counterparty Netting (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Total Current derivative assets Other derivative instruments: Commodity trading $ 137 $ 351 $ — $ 488 $ (324 ) $ 164 Natural gas commodity — 352 — 352 (286 ) 66 Total current derivative assets $ 137 $ 703 $ — $ 840 $ (610 ) 230 PPAs (a) 1,715 Current derivative instruments $ 1,945 Noncurrent derivative assets Other derivative instruments: Commodity trading $ — $ 16 $ — $ 16 $ — $ 16 Total noncurrent derivative assets $ — $ 16 $ — $ 16 $ — 16 PPAs (a) $ 3,462 Noncurrent derivative instruments $ 3,478 Current derivative liabilities Derivatives designated as cash flow hedges: Vehicle fuel and other commodity $ — $ 92 $ — $ 92 $ — $ 92 Other derivative instruments: Commodity trading 34 325 — 359 (324 ) 35 Natural gas commodity — 3,850 — 3,850 (286 ) 3,564 Total current derivative liabilities $ 34 $ 4,267 $ — $ 4,301 $ (610 ) 3,691 PPAs (a) 5,190 Current derivative instruments $ 8,881 Noncurrent derivative liabilities Other derivative instruments: Commodity trading $ — $ 33 $ — $ 33 $ — $ 33 Total noncurrent derivative liabilities $ — $ 33 $ — $ 33 $ — 33 PPAs (a) 12,987 Noncurrent derivative instruments $ 13,020 (a) In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, PSCo began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, PSCo qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. (b) PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2015 . At Dec. 31, 2015 , derivative assets and liabilities included no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Carrying Amount and Fair Value of Long-term Debt | As of June 30, 2016 and Dec. 31, 2015 , other financial instruments for which the carrying amount did not equal fair value were as follows: June 30, 2016 Dec. 31, 2015 (Thousands of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion (a) $ 4,218,431 $ 4,821,310 $ 4,105,596 $ 4,376,875 (a) Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other income, net consisted of the following: Three Months Ended June 30 Six Months Ended June 30 (Thousands of Dollars) 2016 2015 2016 2015 Interest income $ 148 $ 142 $ 289 $ 375 Other nonoperating income 747 520 1,080 1,297 Insurance policy (expense) income (51 ) 103 (76 ) (220 ) Other income, net $ 844 $ 765 $ 1,293 $ 1,452 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Results from Operations by Reportable Segment | (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended June 30, 2016 Operating revenues (a)(b) $ 722,569 $ 178,481 $ 8,802 $ — $ 909,852 Intersegment revenues 61 33 — (94 ) — Total revenues $ 722,630 $ 178,514 $ 8,802 $ (94 ) $ 909,852 Net income (loss) $ 79,328 $ 8,075 $ (59 ) $ — $ 87,344 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended June 30, 2015 Operating revenues (a)(b) $ 751,531 $ 191,975 $ 9,015 $ — $ 952,521 Intersegment revenues 69 (7 ) — (62 ) — Total revenues $ 751,600 $ 191,968 $ 9,015 $ (62 ) $ 952,521 Net income $ 87,676 $ 10,613 $ 211 $ — $ 98,500 (a) Operating revenues include $2 million and $3 million of affiliate electric revenue for the three months ended June 30, 2016 and 2015 , respectively. (b) Operating revenues include $1 million of other affiliate revenue for the three months ended June 30, 2016 and 2015 . (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Six Months Ended June 30, 2016 Operating revenues (a)(b) $ 1,440,031 $ 506,975 $ 20,687 $ — $ 1,967,693 Intersegment revenues 142 78 — (220 ) — Total revenues $ 1,440,173 $ 507,053 $ 20,687 $ (220 ) $ 1,967,693 Net income $ 151,864 $ 48,965 $ 2,389 $ — $ 203,218 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Six Months Ended June 30, 2015 Operating revenues (a)(b) $ 1,500,992 $ 565,178 $ 21,801 $ — $ 2,087,971 Intersegment revenues 157 34 — (191 ) — Total revenues $ 1,501,149 $ 565,212 $ 21,801 $ (191 ) $ 2,087,971 Net income (loss) $ 162,345 $ 47,236 $ (115 ) $ — $ 209,466 (a) Operating revenues include $5 million and $4 million of affiliate electric revenue for the six months ended June 30, 2016 and 2015 , respectively. (b) Operating revenues include $2 million of other affiliate revenue for the six months ended June 30, 2016 and 2015 . |
Benefit Plans and Other Postr28
Benefit Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | Components of Net Periodic Benefit Cost (Credit) Three Months Ended June 30 2016 2015 2016 2015 (Thousands of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 6,492 $ 7,065 $ 192 $ 232 Interest cost 13,853 12,714 4,518 4,374 Expected return on plan assets (17,692 ) (18,147 ) (5,575 ) (5,950 ) Amortization of prior service credit (800 ) (784 ) (1,562 ) (1,562 ) Amortization of net loss 6,693 9,094 483 619 Net periodic benefit cost (credit) 8,546 9,942 (1,944 ) (2,287 ) Credits (costs) not recognized due to the effects of regulation 499 (366 ) — — Net benefit cost (credit) recognized for financial reporting $ 9,045 $ 9,576 $ (1,944 ) $ (2,287 ) Six Months Ended June 30 2016 2015 2016 2015 (Thousands of Dollars) Pension Benefits Postretirement Health Service cost $ 12,958 $ 14,130 $ 384 $ 464 Interest cost 27,702 25,428 9,036 8,749 Expected return on plan assets (35,384 ) (36,295 ) (11,150 ) (11,901 ) Amortization of prior service credit (1,607 ) (1,568 ) (3,124 ) (3,124 ) Amortization of net loss 13,386 18,188 966 1,238 Net periodic benefit cost (credit) 17,055 19,883 (3,888 ) (4,574 ) Credits (cost) not recognized due to the effects of regulation 1,265 (732 ) — — Net benefit cost (credit) recognized for financial reporting $ 18,320 $ 19,151 $ (3,888 ) $ (4,574 ) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, 2016 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit and Postretirement Items Total Accumulated other comprehensive loss at April 1 $ (23,574 ) $ (219 ) $ (23,793 ) Other comprehensive income before reclassifications 4 — 4 Losses reclassified from net accumulated other comprehensive loss 262 2 264 Net current period other comprehensive income 266 2 268 Accumulated other comprehensive loss at June 30 $ (23,308 ) $ (217 ) $ (23,525 ) Three Months Ended June 30, 2015 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Accumulated other comprehensive loss at April 1 $ (23,988 ) Other comprehensive loss before reclassifications 8 Gains reclassified from net accumulated other comprehensive loss (106 ) Net current period other comprehensive loss (98 ) Accumulated other comprehensive loss at June 30 $ (24,086 ) Six Months Ended June 30, 2016 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Defined Benefit and Postretirement Items Total Accumulated other comprehensive loss at Jan. 1 $ (23,836 ) $ — $ (23,836 ) Other comprehensive income (loss) before reclassifications 2 (219 ) (217 ) Losses reclassified from net accumulated other comprehensive loss 526 2 528 Net current period other comprehensive income (loss) 528 (217 ) 311 Accumulated other comprehensive loss at June 30 $ (23,308 ) $ (217 ) $ (23,525 ) Six Months Ended June 30, 2015 (Thousands of Dollars) Gains and Losses on Cash Flow Hedges Accumulated other comprehensive loss at Jan. 1 $ (23,878 ) Other comprehensive income before reclassifications 3 Gains reclassified from net accumulated other comprehensive loss (211 ) Net current period other comprehensive loss (208 ) Accumulated other comprehensive loss at June 30 $ (24,086 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Losses (gains) on cash flow hedges: Interest rate derivatives $ 402 (a) $ (182 ) (a) Vehicle fuel derivatives 21 (b) 12 (b) Total, pre-tax 423 (170 ) Tax (benefit) expense (161 ) 64 Total amounts reclassified, net of tax $ 262 $ (106 ) Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (Gains) losses on cash flow hedges: Interest rate derivatives $ 804 (a) $ (363 ) (a) Vehicle fuel derivatives 46 (b) 24 (b) Total, pre-tax 850 (339 ) Tax (benefit) expense (324 ) 128 Total amounts reclassified, net of tax $ 526 $ (211 ) (a) Included in interest charges. (b) Included in O&M expenses. |
Accounting Pronouncements Debt
Accounting Pronouncements Debt Issuance Costs (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Reclassification of deferred debt issuance costs, net | $ 26 | $ 26.6 |
Other Noncurrent Assets | ||
Debt Instrument [Line Items] | ||
Reclassification of deferred debt issuance costs, net | $ (26.6) |
Selected Balance Sheet Data (De
Selected Balance Sheet Data (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable, net | ||
Accounts receivable | $ 264,623 | $ 321,004 |
Less allowance for bad debts | (18,494) | (20,122) |
Accounts receivable, net | $ 246,129 | $ 300,882 |
Selected Balance Sheet Data Bal
Selected Balance Sheet Data Balance Sheet Related Disclosures, Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 165,729 | $ 205,562 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 58,162 | 58,128 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 68,408 | 78,586 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 39,159 | $ 68,848 |
Selected Balance Sheet Data B33
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 16,981,802 | $ 16,586,427 | |
Less accumulated depreciation | (4,525,147) | (4,414,216) | |
Property, plant and equipment, net | 12,456,655 | 12,172,211 | |
Electric plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 12,034,343 | 11,856,126 | |
Natural gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,521,245 | 3,420,249 | |
Common and other property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 870,530 | 862,840 | |
Plant to be retired | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | [1] | 29,853 | 38,249 |
Construction work in progress | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 525,831 | $ 408,963 | |
[1] | (a) In 2017, PSCo expects to both early retire Valmont Unit 5 and convert Cherokee Unit 4 from a coal-fueled generating facility to natural gas, as approved by the Colorado Public Utilities Commission (CPUC). Amounts are presented net of accumulated depreciation. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2012 | Dec. 31, 2015 | |
Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized tax benefit — Permanent tax positions | $ 2,800,000 | $ 2,400,000 | ||
Unrecognized tax benefit — Temporary tax positions | 15,500,000 | 15,000,000 | ||
Total unrecognized tax benefit | 18,300,000 | 17,400,000 | ||
NOL and tax credit carryforwards | (5,100,000) | (4,300,000) | ||
Upper bound of decrease in unrecognized tax benefit that is reasonably possible | 11,000,000 | |||
Amounts accrued for penalties related to unrecognized tax benefits | $ 0 | $ 0 | ||
Internal Revenue Service (IRS) | ||||
Tax Audits [Abstract] | ||||
Earliest year subject to examination | 2,009 | |||
Year(s) under examination | 2012 and 2013 | 2010 and 2011 | ||
Year of carryback claim under examination | 2,009 | |||
Potential Tax Adjustments | $ 14,000,000 | |||
State Jurisdiction (Colorado) | ||||
Tax Audits [Abstract] | ||||
Earliest year subject to examination | 2,009 |
Rate Matters (Details)
Rate Matters (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
CPUC Proceeding - Annual Electric Earnings Test | |
Rate Matters [Abstract] | |
Public Utilities, Return On Equity Threshold For Earnings Sharing For 2015 Through 2017 | 9.83% |
2015 Electric Earnings Test | |
Rate Matters [Abstract] | |
Public Utilities, Refund to Customers Due to Annual Earnings Test | $ 14.9 |
Commitments and Contingencies,
Commitments and Contingencies, Purchased Power Agreements (Details) - Independent Power Producing Entities - MW | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Purchased Power Agreements [Abstract] | ||
Generating capacity under long term purchased power agreements | 1,571 | 1,802 |
Purchase Power Agreement Duration, Maximum | 2,032 | 2,032 |
Commitments and Contingencies37
Commitments and Contingencies, Environmental Contingencies (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Implementation of the National Ambient Air Quality Standard for Sulfur Dioxide | |
Environmental Requirements [Abstract] | |
Number of phases under a consent decree which the EPA is requiring states to evaluate areas for attainment | 3 |
Commitments and Contingencies38
Commitments and Contingencies, Legal Contingencies (Details) | Jun. 30, 2016USD ($) |
Pacific Northwest FERC Refund Proceeding | |
Legal Contingencies [Abstract] | |
Estimated City of Seattle's claim for refunds not including interest | $ 28,000,000 |
Estimated City of Seattle's Claim for Refunds Including Interest | 60,000,000 |
Accrual for legal contingency | 0 |
Line Extension Disputes | |
Legal Contingencies [Abstract] | |
Accrual for legal contingency | 0 |
Minimum | Pacific Northwest FERC Refund Proceeding | |
Legal Contingencies [Abstract] | |
Amount Of Sales Claimed As Subject To Refund | 34,000,000 |
Maximum | Pacific Northwest FERC Refund Proceeding | |
Legal Contingencies [Abstract] | |
Amount Of Sales Claimed As Subject To Refund | $ 50,000,000 |
Borrowings and Other Financin39
Borrowings and Other Financing Instruments, Short-Term Borrowings (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 14,000,000 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 700,000,000 | 700,000,000 |
Amount outstanding at period end | 0 | 14,000,000 |
Average amount outstanding | 25,000,000 | 95,000,000 |
Maximum amount outstanding | $ 116,000,000 | $ 449,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.63% | 0.51% |
Weighted average interest rate at period end (percentage) | 0.60% | |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 250,000,000 | $ 250,000,000 |
Amount outstanding at period end | 40,000,000 | 0 |
Average amount outstanding | 11,000,000 | 1,000,000 |
Maximum amount outstanding | $ 70,000,000 | $ 34,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.63% | 0.41% |
Weighted average interest rate at period end (percentage) | 0.62% |
Borrowings and Other Financin40
Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 14,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 3,000 | $ 4,000 |
Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year |
Borrowings and Other Financin41
Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | ||
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 700,000,000 | |
Drawn | [2] | 3,000,000 | |
Available | $ 697,000,000 | ||
Debt Instrument, Maturity Date | Jun. 30, 2021 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1] | This credit facility expires in June 2021. | ||
[2] | Includes outstanding letters of credit. |
Borrowings and Other Financin42
Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Amended Credit Agreements (Details) - Credit Facility | 6 Months Ended | |
Jun. 30, 2016USD ($) | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700,000,000 | [1] |
Debt Instrument, Maturity Date | Jun. 30, 2021 | |
PSCo [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Term | 5 years | |
Number Of Additional Periods Revolving Termination Date Can Be Extended Subject To Majority Bank Group Approval | 2 | |
Term Of Each Additional Period Revolving Termination Date Can Be Extended Subject To Majority Bank Group Approval | 1 year | |
PSCo [Member] | Original Terms and Conditions [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Maturity Date | Oct. 31, 2019 | |
Line Of Credit Facility Minimum Borrowing Margin Based On Long Term Credit Ratings | 0.875% | |
Line Of Credit Facility Maximum Borrowing Margin Based On Long Term Credit Ratings | 1.75% | |
Line Of Credit Facility Minimum Commitment Fees Calculated On Unused Portion Of Lines Of Credit | 0.075% | |
Line Of Credit Facility Maximum Commitment Fees Calculated On Unused Portion Of Lines Of Credit | 0.275% | |
PSCo [Member] | Amended Terms and Conditions [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Maturity Date | Jun. 30, 2021 | |
Line Of Credit Facility Minimum Borrowing Margin Based On Long Term Credit Ratings | 0.75% | |
Line Of Credit Facility Maximum Borrowing Margin Based On Long Term Credit Ratings | 1.50% | |
Line Of Credit Facility Minimum Commitment Fees Calculated On Unused Portion Of Lines Of Credit | 0.06% | |
Line Of Credit Facility Maximum Commitment Fees Calculated On Unused Portion Of Lines Of Credit | 0.225% | |
[1] | This credit facility expires in June 2021. |
Borrowings and Other Financin43
Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Long-Term Borrowings (Details) - PSCo [Member] - Bonds [Member] - Series Due June 15, 2046 [Member] | 1 Months Ended |
Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.55% |
Debt Instrument, Maturity Date | Jun. 15, 2046 |
Fair Value of Financial Asset44
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) gal in Thousands, MWh in Thousands, MMBTU in Thousands, $ in Millions | Jun. 30, 2016USD ($)MMBTUMWhgalCounterparty | Dec. 31, 2015MMBTUMWhgal | |
Credit Concentration Risk | |||
Consideration of Credit Risk and Concentrations [Abstract] | |||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 10 | ||
Credit Concentration Risk | Municipal or Cooperative Entities or Other Utilities [Member] | |||
Consideration of Credit Risk and Concentrations [Abstract] | |||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 6 | ||
Credit Concentration Risk | External Credit Rating, Investment Grade [Member] | |||
Consideration of Credit Risk and Concentrations [Abstract] | |||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 5 | ||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ | $ 6.2 | ||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 14.00% | ||
Credit Concentration Risk | No Investment Grade Ratings from External Credit Rating Agencies | |||
Consideration of Credit Risk and Concentrations [Abstract] | |||
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | Counterparty | 4 | ||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ | $ 19.2 | ||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 42.00% | ||
Credit Concentration Risk | Credit Quality Less Than Investment Grade [Member] | |||
Consideration of Credit Risk and Concentrations [Abstract] | |||
Wholesale, trading and non-trading commodity credit exposure for the most significant counterparties | $ | $ 5.7 | ||
Percentage of wholesale, trading and non-trading commodity credit exposure for the most significant counterparties (in hundredths) | 12.00% | ||
Electric Commodity (in megawatt hours) | |||
Gross Notional Amounts of Commodity Forwards and Options [Abstract] | |||
Derivative, Nonmonetary Notional amount | MWh | [1],[2] | 4,115 | 684 |
Interest Rate Swap | |||
Interest Rate Derivatives [Abstract] | |||
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | $ | $ (1) | ||
Natural Gas Commodity (in million British thermal units) | |||
Gross Notional Amounts of Commodity Forwards and Options [Abstract] | |||
Derivative, Nonmonetary Notional amount | MMBTU | [1],[2] | 41,586 | 12,515 |
Vehicle Fuel Commodity (in gallons) | |||
Gross Notional Amounts of Commodity Forwards and Options [Abstract] | |||
Derivative, Nonmonetary Notional amount | gal | [1],[2] | 32 | 63 |
[1] | Amounts are not reflective of net positions in the underlying commodities. | ||
[2] | Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Fair Value of Financial Asset45
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||||||
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | |||||||||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Recognized gains (losses) from fair value hedges or related hedged transactions | 0 | 0 | 0 | 0 | |||||
Designated as Hedging Instrument | Cash Flow Hedges | |||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 7,000 | 13,000 | 4,000 | 5,000 | |||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 423,000 | (170,000) | 850,000 | (339,000) | |||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | |||||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | 0 | ||||||
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate | |||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | [1] | 402,000 | (182,000) | 804,000 | (363,000) | ||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | |||||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | 0 | ||||||
Designated as Hedging Instrument | Cash Flow Hedges | Vehicle Fuel And Other Commodity | |||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 7,000 | 13,000 | 4,000 | 5,000 | |||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | [2] | 21,000 | 12,000 | 46,000 | 24,000 | ||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | |||||
Pre-tax gains (losses) recognized during the period in income | 0 | 0 | 0 | ||||||
Other Derivative Instruments | |||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 5,626,000 | (242,000) | 3,677,000 | (416,000) | |||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | (22,000) | 7,736,000 | (5,627,000) | |||||
Pre-tax gains (losses) recognized during the period in income | 236,000 | 191,000 | (3,008,000) | 5,840,000 | |||||
Other Derivative Instruments | Commodity Trading | |||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | 0 | 0 | 0 | |||||
Pre-tax gains (losses) recognized during the period in income | [3] | 211,000 | 191,000 | 228,000 | 380,000 | ||||
Other Derivative Instruments | Natural Gas Commodity | |||||||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||||||||
Pre-tax fair value gains (losses) recognized during the period in accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | 5,626,000 | (242,000) | 3,677,000 | (416,000) | |||||
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |||||
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | 0 | (22,000) | [4] | 7,736,000 | [4] | (5,627,000) | [4] | ||
Pre-tax gains (losses) recognized during the period in income | $ 25,000 | [4] | $ 0 | $ (3,236,000) | [4] | $ 5,460,000 | [4] | ||
[1] | Recorded to interest charges. | ||||||||
[2] | Recorded to operating and maintenance (O&M) expenses. | ||||||||
[3] | Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate. | ||||||||
[4] | Amounts for the three and six months ended June 30, 2016 and 2015 included an immaterial amount of settlement losses on derivatives entered to mitigate natural gas price risk for electric generation, recorded to electric fuel and purchased power, subject to cost-recovery mechanisms and reclassified to a regulatory asset, as appropriate. The remaining derivative settlement gains and losses for the three and six months ended June 30, 2016 and 2015 relate to natural gas operations and are recorded to cost of natural gas sold and transported. These gains and losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset or liability, as appropriate. |
Fair Value of Financial Asset46
Fair Value of Financial Assets and Liabilities, Credit Related Contingent Features (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Derivative instruments in a gross liability position | $ 0 | $ 0 |
Collateral posted on derivative instruments | 0 | 0 |
Collateral posted related to adequate assurance clauses in derivative contracts | $ 0 | $ 0 |
Fair Value of Financial Asset47
Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | $ 0 | $ 0 | |||
Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 10,192 | 1,945 | |||
Other Noncurrent Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 4,006 | 3,478 | |||
Other Current Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 5,891 | 8,881 | |||
Other Noncurrent Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 10,408 | 13,020 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 8,476 | 230 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (5,981) | [1] | (610) | [2] | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,012 | 164 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (5,950) | [1] | (324) | [2] | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 7,464 | 66 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (31) | [1] | (286) | [2] | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,402 | 16 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 0 | [1] | 0 | [2] | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 47 | 16 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 0 | [1] | 0 | [2] | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,355 | ||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 718 | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 5,981 | [1] | 610 | [2] | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument | Vehicle Fuel And Other Commodity | Cash Flow Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 37 | 92 | |||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | [1] | 0 | [2] | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 3,691 | ||||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 681 | 35 | |||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 5,950 | [1] | 324 | [2] | |
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 3,564 | |||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 31 | [1] | 286 | [2] | |
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 33 | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2] | 0 | |||
Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 33 | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2] | 0 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,956 | 137 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,956 | 137 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 40 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 40 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | ||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 2,169 | 34 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Designated as Hedging Instrument | Vehicle Fuel And Other Commodity | Cash Flow Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 2,169 | 34 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | ||||
Fair Value Measured on a Recurring Basis | Level 1 | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | ||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 12,501 | 703 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 5,006 | 351 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 7,495 | 352 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,362 | 16 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 7 | 16 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,355 | ||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 4,489 | 4,267 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Designated as Hedging Instrument | Vehicle Fuel And Other Commodity | Cash Flow Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 37 | 92 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 4,421 | 325 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 31 | 3,850 | |||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 33 | ||||
Fair Value Measured on a Recurring Basis | Level 2 | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 33 | ||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | ||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 41 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Designated as Hedging Instrument | Vehicle Fuel And Other Commodity | Cash Flow Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 41 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | ||||
Fair Value Measured on a Recurring Basis | Level 3 | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | ||||
Fair Value, Measurements, Nonrecurring | Other Current Assets | Purchased Power Agreements | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,716 | [3] | 1,715 | [4] | |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Assets | Purchased Power Agreements | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 2,604 | [3] | 3,462 | [4] | |
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | Purchased Power Agreements | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 5,173 | [3] | 5,190 | [4] | |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | Purchased Power Agreements | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 10,408 | [3] | 12,987 | [4] | |
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 14,457 | 840 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 6,962 | 488 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 7,495 | 352 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,402 | 16 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 47 | 16 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Assets | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1,355 | ||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Designated as Hedging Instrument | Vehicle Fuel And Other Commodity | Cash Flow Hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 37 | 92 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 6,699 | 4,301 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 6,631 | 359 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 31 | 3,850 | |||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 33 | ||||
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Noncurrent Liabilities | Other Derivative Instruments | Commodity Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 33 | ||||
[1] | PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at June 30, 2016. At June 30, 2016, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. | ||||
[2] | PSCo nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2015. At Dec. 31, 2015, derivative assets and liabilities included no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. | ||||
[3] | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, PSCo began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, PSCo qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. | ||||
[4] | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, PSCo began recording several long-term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory recovery mechanisms, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, PSCo qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Fair Value of Financial Asset48
Fair Value of Financial Assets and Liabilities, Changes in Level 3 Commodity Derivatives (Details) - Commodity Contract - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Transfers into Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Asset49
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Carrying Amount | |||
Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, including current portion | [1] | $ 4,218,431 | $ 4,105,596 |
Fair Value | |||
Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, including current portion | [1] | $ 4,821,310 | $ 4,376,875 |
[1] | Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03. |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 148 | $ 142 | $ 289 | $ 375 |
Other nonoperating income | 747 | 520 | 1,080 | 1,297 |
Insurance policy (expense) income | (51) | 103 | (76) | (220) |
Other income, net | $ 844 | $ 765 | $ 1,293 | $ 1,452 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | $ 909,852 | $ 952,521 | $ 1,967,693 | $ 2,087,971 | ||||
Net income (loss) | 87,344 | 98,500 | 203,218 | 209,466 | ||||
Affiliate electric revenue | 2,000 | 3,000 | 5,000 | 4,000 | ||||
Affiliate other revenue | 1,000 | 1,000 | 2,000 | 2,000 | ||||
Regulated Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 722,630 | 751,600 | 1,440,173 | 1,501,149 | ||||
Net income (loss) | 79,328 | 87,676 | 151,864 | 162,345 | ||||
Regulated Natural Gas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 178,514 | 191,968 | 507,053 | 565,212 | ||||
Net income (loss) | 8,075 | 10,613 | 48,965 | 47,236 | ||||
All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 8,802 | 9,015 | 20,687 | 21,801 | ||||
Net income (loss) | (59) | 211 | 2,389 | (115) | ||||
Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 909,852 | [1],[2] | 952,521 | [1],[2] | 1,967,693 | [3],[4] | 2,087,971 | [3],[4] |
Operating Segments | Regulated Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 722,569 | [1] | 751,531 | [1] | 1,440,031 | [4] | 1,500,992 | [4] |
Operating Segments | Regulated Natural Gas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 178,481 | 191,975 | 506,975 | 565,178 | ||||
Operating Segments | All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 8,802 | [2] | 9,015 | [2] | 20,687 | [3] | 21,801 | [3] |
Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | (94) | (62) | (220) | (191) | ||||
Net income (loss) | 0 | 0 | 0 | 0 | ||||
Intersegment Eliminations | Regulated Electric | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 61 | 69 | 142 | 157 | ||||
Intersegment Eliminations | Regulated Natural Gas | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | 33 | (7) | 78 | 34 | ||||
Intersegment Eliminations | All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating revenues | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | (a) Operating revenues include $2 million and $3 million of affiliate electric revenue for the three months ended June 30, 2016 and 2015, respectively. | |||||||
[2] | (b) Operating revenues include $1 million of other affiliate revenue for the three months ended June 30, 2016 and 2015. | |||||||
[3] | Operating revenues include $2 million of other affiliate revenue for the six months ended June 30, 2016 and 2015. | |||||||
[4] | Operating revenues include $5 million and $4 million of affiliate electric revenue for the six months ended June 30, 2016 and 2015, respectively. |
Benefit Plans and Other Postr52
Benefit Plans and Other Postretirement Benefits (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016USD ($)Plan | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Pension Benefits | |||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | $ 6,492 | $ 7,065 | $ 12,958 | $ 14,130 | |
Interest cost | 13,853 | 12,714 | 27,702 | 25,428 | |
Expected return on plan assets | (17,692) | (18,147) | (35,384) | (36,295) | |
Amortization of prior service credit | (800) | (784) | (1,607) | (1,568) | |
Amortization of net loss | 6,693 | 9,094 | 13,386 | 18,188 | |
Net periodic benefit cost (credit) | 8,546 | 9,942 | 17,055 | 19,883 | |
Credits (costs) not recognized due to the effects of regulation | 499 | (366) | 1,265 | (732) | |
Net benefit cost (credit) recognized for financial reporting | 9,045 | 9,576 | 18,320 | 19,151 | |
Total contributions to the pension plans during the period | $ 16,800 | ||||
Postretirement Health Care Benefits | |||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 192 | 232 | 384 | 464 | |
Interest cost | 4,518 | 4,374 | 9,036 | 8,749 | |
Expected return on plan assets | (5,575) | (5,950) | (11,150) | (11,901) | |
Amortization of prior service credit | (1,562) | (1,562) | (3,124) | (3,124) | |
Amortization of net loss | 483 | 619 | 966 | 1,238 | |
Net periodic benefit cost (credit) | (1,944) | (2,287) | (3,888) | (4,574) | |
Credits (costs) not recognized due to the effects of regulation | 0 | 0 | 0 | 0 | |
Net benefit cost (credit) recognized for financial reporting | $ (1,944) | $ (2,287) | $ (3,888) | $ (4,574) | |
Xcel Energy Inc. | Pension Benefits | |||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Total contributions to the pension plans during the period | $ 125,000 | ||||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of period | $ 5,120,152 | |||
Accumulated other comprehensive loss at end of period | $ 5,185,990 | 5,185,990 | ||
Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of period | (23,574) | $ (23,988) | (23,836) | $ (23,878) |
Other comprehensive income (loss) before reclassifications | 4 | 8 | 2 | 3 |
Gains reclassified from net accumulated other comprehensive loss | 262 | (106) | 526 | (211) |
Net current period other comprehensive loss | 266 | (98) | 528 | (208) |
Accumulated other comprehensive loss at end of period | (23,308) | $ (24,086) | (23,308) | $ (24,086) |
Defined Benefit Pension and Postretirement Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of period | (219) | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | (219) | ||
Gains reclassified from net accumulated other comprehensive loss | 2 | 2 | ||
Net current period other comprehensive loss | 2 | (217) | ||
Accumulated other comprehensive loss at end of period | (217) | (217) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of period | (23,793) | (23,836) | ||
Other comprehensive income (loss) before reclassifications | 4 | (217) | ||
Gains reclassified from net accumulated other comprehensive loss | 264 | 528 | ||
Net current period other comprehensive loss | 268 | 311 | ||
Accumulated other comprehensive loss at end of period | $ (23,525) | $ (23,525) |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassification from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Operating and maintenance expenses | $ 200,946 | $ 191,225 | $ 379,332 | $ 373,642 | |
Total, pre-tax | (140,573) | (156,763) | (324,392) | (333,664) | |
Tax (benefit) expense | 53,229 | 58,263 | 121,174 | 124,198 | |
Gains and Losses on Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total, pre-tax | 423 | (170) | 850 | (339) | |
Tax (benefit) expense | (161) | 64 | (324) | 128 | |
Total, net of tax | 262 | (106) | 526 | (211) | |
Gains and Losses on Cash Flow Hedges | Interest Rate Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest charges | [1] | 402 | (182) | 804 | (363) |
Gains and Losses on Cash Flow Hedges | Vehicle Fuel Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Operating and maintenance expenses | [2] | $ 21 | $ 12 | $ 46 | $ 24 |
[1] | Included in interest charges. | ||||
[2] | Included in O&M expenses |