Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SOUTHWESTERN PUBLIC SERVICE CO | ' |
Entity Central Index Key | '0000092521 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 100 |
STATEMENTS_OF_INCOME_UNAUDITED
STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Operating revenues | $552,779 | $481,407 | $1,493,715 | $1,317,495 |
Operating expenses | ' | ' | ' | ' |
Electric fuel and purchased power | 315,524 | 293,831 | 918,874 | 814,077 |
Operating and maintenance expenses | 66,833 | 66,288 | 205,194 | 198,309 |
Demand side management program expenses | 3,455 | 2,966 | 9,368 | 9,216 |
Depreciation and amortization | 34,207 | 30,315 | 99,790 | 91,575 |
Taxes (other than income taxes) | 13,991 | 13,354 | 40,144 | 38,137 |
Total operating expenses | 434,010 | 406,754 | 1,273,370 | 1,151,314 |
Operating income | 118,769 | 74,653 | 220,345 | 166,181 |
Other income (expense), net | 66 | -115 | -22 | -58 |
Allowance for funds used during construction — equity | 3,147 | 2,150 | 9,682 | 6,972 |
Interest charges and financing costs | ' | ' | ' | ' |
Interest charges — includes other financing costs of $768, $773, $2,229 and $2,248, respectively | 20,479 | 22,892 | 59,405 | 58,509 |
Allowance for funds used during construction — debt | -1,846 | -1,387 | -5,694 | -4,406 |
Total interest charges and financing costs | 18,633 | 21,505 | 53,711 | 54,103 |
Income before income taxes | 103,349 | 55,183 | 176,294 | 118,992 |
Income taxes | 36,412 | 20,146 | 62,587 | 43,165 |
Net income | $66,937 | $35,037 | $113,707 | $75,827 |
STATEMENTS_OF_INCOME_UNAUDITED1
STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest charges and financing costs | ' | ' | ' | ' |
Other financing costs | $768 | $773 | $2,229 | $2,248 |
STATEMENTS_OF_COMPREHENSIVE_IN
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Comprehensive income: | ' | ' | ' | ' |
Net income | $66,937 | $35,037 | $113,707 | $75,827 |
Derivative instruments: | ' | ' | ' | ' |
Reclassification of losses to net income, net of tax of $24 and $72 for each of the three and nine months ended Sept. 30, 2014 and 2013, respectively | 44 | 44 | 129 | 129 |
Other comprehensive income | 44 | 44 | 129 | 129 |
Comprehensive income | $66,981 | $35,081 | $113,836 | $75,956 |
STATEMENTS_OF_COMPREHENSIVE_IN1
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative instruments: | ' | ' | ' | ' |
Reclassification of losses to net income, tax | $24 | $24 | $72 | $72 |
STATEMENTS_OF_CASH_FLOWS_UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income | $113,707 | $75,827 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 101,514 | 93,171 |
Demand side management program amortization | 1,255 | 1,255 |
Deferred income taxes | 88,008 | 36,831 |
Amortization of investment tax credits | -255 | -245 |
Allowance for equity funds used during construction | -9,682 | -6,972 |
Net derivative losses | 201 | 201 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -10,982 | -32,999 |
Accrued unbilled revenues | -22,164 | -25,860 |
Inventories | -6,257 | -5,558 |
Prepayments and other | -672 | -7,046 |
Accounts payable | 5,777 | 21,281 |
Net regulatory assets and liabilities | -11,550 | -11,629 |
Other current liabilities | 29,426 | 62,149 |
Pension and other employee benefit obligations | -2,535 | -18,923 |
Change in other noncurrent assets | 2,684 | -1,580 |
Change in other noncurrent liabilities | 2,204 | -2,221 |
Net cash provided by operating activities | 280,679 | 177,682 |
Investing activities | ' | ' |
Utility capital/construction expenditures | -412,976 | -423,435 |
Allowance for equity funds used during construction | 9,682 | 6,972 |
Investments in utility money pool arrangement | -94,000 | -12,000 |
Repayments from utility money pool arrangement | 91,000 | 12,000 |
Net cash used in investing activities | -406,294 | -416,463 |
Financing activities | ' | ' |
Repayments of short-term borrowings, net | -84,000 | -9,000 |
Proceeds from Issuance of Long-term Debt | 148,241 | 94,809 |
Borrowings under utility money pool arrangement | 433,000 | 565,000 |
Repayments under utility money pool arrangement | -471,000 | -485,000 |
Capital contributions from parent | 160,000 | 124,935 |
Dividends paid to parent | -60,632 | -51,361 |
Net cash provided by financing activities | 125,609 | 239,383 |
Net change in cash and cash equivalents | -6 | 602 |
Cash and cash equivalents at beginning of period | 1,011 | 482 |
Cash and cash equivalents at end of period | 1,005 | 1,084 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest (net of amounts capitalized) | -41,604 | -41,273 |
Cash received (paid) for income taxes, net | 26,539 | -18,719 |
Supplemental disclosure of non-cash investing transactions: | ' | ' |
Property, plant and equipment additions in accounts payable | $19,538 | $25,143 |
BALANCE_SHEETS_UNAUDITED
BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $1,005 | $1,011 |
Accounts receivable, net | 90,316 | 70,951 |
Accounts receivable from affiliates | 7,457 | 15,840 |
Investments Receivable in Utility Money Pool Arrangement | 3,000 | 0 |
Accrued unbilled revenues | 131,371 | 109,207 |
Inventories | 43,395 | 37,138 |
Regulatory assets | 44,090 | 27,595 |
Derivative instruments | 30,132 | 17,826 |
Deferred income taxes | 53,344 | 85,362 |
Prepayments and other | 20,243 | 19,571 |
Total current assets | 424,353 | 384,501 |
Property, plant and equipment, net | 3,616,190 | 3,284,030 |
Other assets | ' | ' |
Regulatory assets | 274,816 | 290,415 |
Derivative instruments | 35,137 | 41,056 |
Other | 15,831 | 17,068 |
Total other assets | 325,784 | 348,539 |
Total assets | 4,366,327 | 4,017,070 |
Current liabilities | ' | ' |
Short-term debt | 0 | 84,000 |
Borrowings under utility money pool arrangement | 0 | 38,000 |
Accounts payable | 147,580 | 143,879 |
Accounts payable to affiliates | 13,696 | 15,387 |
Regulatory liabilities | 88,364 | 83,759 |
Taxes accrued | 31,558 | 23,584 |
Accrued interest | 27,377 | 16,883 |
Dividends payable | 22,866 | 18,082 |
Derivative instruments | 3,565 | 3,583 |
Other | 81,868 | 75,355 |
Total current liabilities | 416,874 | 502,512 |
Deferred credits and other liabilities | ' | ' |
Deferred income taxes | 818,465 | 757,778 |
Regulatory liabilities | 100,488 | 81,504 |
Asset retirement obligations | 20,194 | 19,375 |
Derivative instruments | 31,534 | 34,207 |
Pension and employee benefit obligations | 52,552 | 55,087 |
Other | 4,504 | 3,051 |
Total deferred credits and other liabilities | 1,027,737 | 951,002 |
Commitments and contingencies | ' | ' |
Capitalization | ' | ' |
Long-term debt | 1,349,604 | 1,199,865 |
Common stock — 200 shares authorized of $1.00 par value; 100 shares outstanding at Sept. 30, 2014 and Dec. 31, 2013, respectively | 0 | 0 |
Additional paid in capital | 1,165,463 | 1,005,463 |
Retained earnings | 407,681 | 359,389 |
Accumulated other comprehensive loss | -1,032 | -1,161 |
Total common stockholder’s equity | 1,572,112 | 1,363,691 |
Total liabilities and equity | $4,366,327 | $4,017,070 |
BALANCE_SHEETS_UNAUDITED_Paren
BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Capitalization, Long-term Debt and Equity [Abstract] | ' | ' |
Common stock, shares authorized (in shares) | 200 | 200 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares outstanding (in shares) | 100 | 100 |
Managements_Opinion
Management's Opinion | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Management's Opinion | ' |
In the opinion of management, the accompanying unaudited 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 SPS as of Sept. 30, 2014, and Dec. 31, 2013; the results of its operations, including the components of net income and comprehensive income, for the three and nine months ended Sept. 30, 2014 and 2013; and its cash flows for the nine months ended Sept. 30, 2014 and 2013. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2014 up to the date of issuance of these financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2013 balance sheet information has been derived from the audited 2013 financial statements included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2013. These notes to the 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 financial statements and notes thereto included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2013, filed with the SEC on Feb. 24, 2014. Due to the seasonality of SPS’ electric sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
The significant accounting policies set forth in Note 1 to the financial statements in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2013, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting_Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
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 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. This guidance, which includes additional disclosure requirements regarding revenue, cash flows and obligations related to contracts with customers, will be effective for interim and annual reporting periods beginning after Dec. 15, 2016. SPS is currently evaluating the impact of adopting ASU 2014-09 on its financial statements. |
Selected_Balance_Sheet_Data
Selected Balance Sheet Data | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Selected Balance Sheet Data | ' | ||||||||
Selected Balance Sheet Data | |||||||||
(Thousands of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Accounts receivable, net | |||||||||
Accounts receivable | $ | 96,110 | $ | 76,426 | |||||
Less allowance for bad debts | (5,794 | ) | (5,475 | ) | |||||
$ | 90,316 | $ | 70,951 | ||||||
(Thousands of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Inventories | |||||||||
Materials and supplies | $ | 23,770 | $ | 21,600 | |||||
Fuel | 19,625 | 15,538 | |||||||
$ | 43,395 | $ | 37,138 | ||||||
(Thousands of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Property, plant and equipment, net | |||||||||
Electric plant | $ | 5,200,187 | $ | 4,714,398 | |||||
Construction work in progress | 264,894 | 388,323 | |||||||
Total property, plant and equipment | 5,465,081 | 5,102,721 | |||||||
Less accumulated depreciation | (1,848,891 | ) | (1,818,691 | ) | |||||
$ | 3,616,190 | $ | 3,284,030 | ||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
Except to the extent noted below, the circumstances set forth in Note 6 to the financial statements included in SPS’ Annual Report on Form 10-K for the year ended Dec. 31, 2013 appropriately represent, in all material respects, the current status of other income tax matters, and are incorporated herein by reference. | |||||||||
Federal Audit — SPS is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. The statute of limitations applicable to Xcel Energy’s 2008 federal income tax return expired in September 2012. The statute of limitations applicable to Xcel Energy’s 2009 federal income tax return expires in June 2015. In the third quarter of 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011, including a 2009 carryback claim. As of Sept. 30, 2014, the IRS had proposed an adjustment to several federal tax loss carryback claims that would result in $10 million of income tax expense for the 2009 through 2011 claims and the anticipated claim for 2013. SPS is not expected to accrue any income tax expense related to this adjustment. Xcel Energy is continuing to work through the audit process, but the outcome and timing of a resolution is uncertain. | |||||||||
State Audits — SPS is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of Sept. 30, 2014, SPS’ 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) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Unrecognized tax benefit — Permanent tax positions | $ | 0.4 | $ | 1.2 | |||||
Unrecognized tax benefit — Temporary tax positions | 2.9 | 2.9 | |||||||
Total unrecognized tax benefit | $ | 3.3 | $ | 4.1 | |||||
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) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
NOL and tax credit carryforwards | $ | (2.4 | ) | $ | (2.4 | ) | |||
It is reasonably possible that SPS’ amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS audit progresses and state audits resume. As the IRS examination moves closer to completion, the change in the unrecognized tax benefit is not expected to be material. | |||||||||
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 Sept. 30, 2014 and Dec. 31, 2013 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of Sept. 30, 2014 or Dec. 31, 2013. |
Rate_Matters
Rate Matters | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Public Utilities, General Disclosures [Abstract] | ' | ||||
Rate Matters | ' | ||||
Rate Matters | |||||
Except to the extent noted below, the circumstances set forth in Note 10 to the financial statements included in SPS’ Annual Report on Form 10-K for the year ended Dec. 31, 2013 appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. | |||||
Pending Regulatory Proceedings — Public Utility Commission of Texas (PUCT) | |||||
Texas 2014 Electric Rate Case — In January 2014, SPS filed a retail electric rate case in Texas with each of its Texas municipalities and the PUCT for a net increase in annual revenue of approximately $52.7 million, or 5.8 percent. The net increase reflected a base rate increase, revenue credits transferred from base rates to rate riders or the fuel clause, and resetting the Transmission Cost Recovery Factor (TCRF) to zero when the final base rates become effective. In April 2014, SPS revised its request to a net increase of $48.1 million. | |||||
The rate filing was based on a historic test year ending June 2013, a requested return on equity (ROE) of 10.40 percent, an electric rate base of approximately $1.27 billion and an equity ratio of 53.89 percent. The requested rate increase reflected an increase in depreciation expense of approximately $16 million. | |||||
In September 2014, SPS, PUCT staff, and intervenors filed a non-unanimous settlement agreement, subject to PUCT approval, which would increase SPS’ rates by $37 million, or 3.5 percent, retroactive to June 1, 2014. Starting Oct. 1, 2014, SPS began collecting the rate increase through interim rates subject to refund. SPS expects to recover the rate increase for the months of June through September through a separate surcharge to be implemented by the first quarter of 2015. Based on the anticipated outcome of the rate case, SPS recognized approximately $13.3 million of revenue in the third quarter of 2014 for the surcharge. | |||||
The settlement includes an ROE of 9.7 percent solely for the purpose of calculating the allowance for funds used during construction (AFUDC) and determining baselines in future filings for the TCRF. In October 2014, the administrative law judges (ALJs) approved the stipulation and recommended that SPS file to implement the surcharge following the PUCT's final order. The PUCT is expected to rule on the settlement in 2014. | |||||
Although the parties to the settlement agreement have not prepared a calculation of the $37 million increase and do not agree about which specific costs are included, or not, in the agreed settlement revenue requirement, SPS’ reconciliation of its original request to the settlement increase is as follows: | |||||
(Millions of Dollars) | Settlement Agreement | ||||
Base rate increase request, January 2014 | $ | 81.5 | |||
Revisions for updated information | (4.6 | ) | |||
Revised request, April 2014 | 76.9 | ||||
Remove proposed increase in depreciation | (16.0 | ) | |||
Remove adjustment allocators for certain wholesale load reduction | (12.0 | ) | |||
Revised amortizations (rate case expenses, pension and other post-employment benefits expense and gain on sale to Lubbock) | (9.0 | ) | |||
Non-specified settlement adjustments | (2.9 | ) | |||
Settlement base rate increase | $ | 37 | |||
Electric, Purchased Gas and Resource Adjustment Clauses | |||||
TCRF Rider — In November 2013, SPS filed with the PUCT to implement the TCRF for Texas retail customers. The requested increase in revenues was $13 million. The PUCT issued an order allowing the TCRF to go into effect on an interim basis effective Jan. 1, 2014. In May 2014, the ALJ terminated the interim TCRF due to a settlement in principle being reached with intervenors and the PUCT staff in the pending Texas electric rate case. In July 2014, the PUCT approved the settlement agreement between the parties allowing SPS to recover $4 million annually through the TCRF. In September 2014, SPS filed a proposal with the PUCT to refund approximately $3.7 million during November 2014 for interim rates collected in excess of the final rates approved. PUCT approval of the refund is pending. As of Sept. 30, 2014, SPS had recorded an accrual for the proposed refund. | |||||
Recently Concluded Regulatory Proceedings — New Mexico Public Regulation Commission (NMPRC) | |||||
New Mexico 2014 Electric Rate Case — In December 2012, SPS filed an electric rate case in New Mexico with the NMPRC for an increase in annual revenue of approximately $45.9 million effective in 2014. The rate filing was based on a 2014 forecast test year, a requested ROE of 10.65 percent, an electric rate base of $479.8 million and an equity ratio of 53.89 percent. | |||||
In September 2013, SPS filed rebuttal testimony, revising its requested rate increase to $32.5 million, based on updated information and an ROE of 10.25 percent. The request reflected a base and fuel increase of $20.9 million, an increase of rider revenue of $12.1 million and a decrease to other of $0.5 million. | |||||
In March 2014, the NMPRC approved an overall increase of approximately $33.1 million. The increase reflects a base rate increase of $12.7 million and rider recovery of $18.1 million for renewable energy costs, both based on an ROE of 9.96 percent and an equity ratio of 53.89 percent. Final rates were effective April 5, 2014. In April 2014, the New Mexico Attorney General (NMAG) filed a request for rehearing. The rehearing request was denied by the NMPRC. In June 2014, the NMAG filed an appeal of the NMPRC’s denial to the New Mexico Supreme Court. A decision is expected by the second quarter of 2016. | |||||
Pending Regulatory Proceedings — Federal Energy Regulatory Commission (FERC) | |||||
Wholesale Rate Complaints — In April 2012, Golden Spread Electric Cooperative, Inc. (Golden Spread), a wholesale cooperative customer, filed a rate complaint alleging that the base ROE included in the SPS production formula rate of 10.25 percent, and the SPS transmission base formula rate ROE of 10.77 percent, are unjust and unreasonable. In July 2013, Golden Spread filed a second complaint, again asking that the base ROE in the SPS production and transmission formula rates be reduced to 9.15 and 9.65 percent, respectively. | |||||
In June 2014, the FERC issued an order in a different ROE proceeding adopting a new ROE methodology for electric utilities. The new ROE methodology requires electric utilities to use a two-step discounted cash flow analysis to estimate cost of equity that incorporates both short-term and long-term growth projections, instead of only short-term growth. | |||||
The FERC also issued orders consolidating the Golden Spread ROE complaints and setting them for settlement judge procedures and hearings and indicated the parties should apply the new ROE methodology to the proceedings. The FERC established effective dates for the refunds as April 20, 2012 and July 19, 2013. The complaints remain in settlement judge proceedings. In October 2014, the FERC upheld the determination of the long term growth rate to be used together with a short term growth rate in its new ROE methodology. | |||||
Golden Spread, along with certain New Mexico cooperatives and the West Texas Municipal Power Agency, filed a third rate complaint on Oct. 20, 2014, requesting that the base ROE in the SPS production and transmission formula rates be reduced to 8.61 percent and 9.11 percent, respectively. The complainants requested a refund effective date of Oct. 20, 2014, and that the new complaint be consolidated with the two prior complaints. FERC action is pending. | |||||
2004 FERC Complaint Case Orders — In August 2013, the FERC issued an order on rehearing related to a 2004 complaint case brought by Golden Spread and Public Service Company of New Mexico (PNM) and an Order on Initial Decision in a subsequent 2006 production rate case filed by SPS. | |||||
The original complaint included two key components: 1) PNM’s claim regarding inappropriate allocation of fuel costs and 2) a base rate complaint, including the appropriate demand-related cost allocator. The FERC previously determined that the allocation of fuel costs and the demand-related cost allocator utilized by SPS was appropriate. | |||||
In the August 2013 Orders, the FERC clarified its previous ruling on the allocation of fuel costs and reaffirmed that the refunds in question should only apply to firm requirements customers and not PNM’s contractual load. The FERC also reversed its prior demand-related cost allocator decision. The FERC stated that it had erred in its initial analysis and concluded that the SPS system was a 3 coincident peak (CP) rather than a 12CP system. | |||||
In September 2013, SPS filed a request for rehearing of the FERC ruling on the CP allocation and refund decisions. SPS asserted that the FERC applied an improper burden of proof and that precedent did not support retroactive refunds. PNM also requested rehearing of the FERC decision not to reverse its prior ruling. | |||||
In October 2013, the FERC issued orders further considering the requests for rehearing. These matters are currently pending the FERC’s action. If unsuccessful in its rehearing request, SPS will have the opportunity to file rate cases with the FERC and its retail jurisdictions seeking to change all customers to a 3CP allocation method. | |||||
As of Dec. 31, 2013, SPS had accrued $44.5 million related to the August 2013 Orders and an additional $4.0 million of principal and interest was accrued during the first nine months of 2014. Pending the timing and resolution of this matter, the annual impact to revenues through 2014 could be up to $6 million and decreasing to $4 million on June 1, 2015. | |||||
Request for Waiver of Southwest Power Pool, Inc. (SPP) Tariff — In July 2014, SPS filed a request for the FERC to grant SPS a waiver of an SPP tariff regarding the billing of SPP administrative and transmission expansion charges for certain loads that left the SPS system at the end of 2013 through a sale of transmission assets to Sharyland Distribution and Transmission Services, LLC (Sharyland). Under the SPP tariff provisions, SPP assesses these charges based on prior year load. Absent the waiver, SPS would be billed approximately $2.9 million by SPP in 2014 for loads that are no longer served by SPS. SPP has intervened to oppose the waiver request and Sharyland has intervened to support the waiver request. FERC action is pending. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Except to the extent noted below and in Note 5, the circumstances set forth in Notes 10 and 11 to the financial statements in SPS’ Annual Report on Form 10-K for the year ended Dec. 31, 2013, 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 SPS’ financial position. | |
Purchased Power Agreements (PPAs) | |
Under certain PPAs, SPS purchases power from independent power producing entities that own natural gas fueled power plants for which SPS is required to reimburse natural gas fuel costs, or to participate in tolling arrangements under which SPS 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. | |
SPS had approximately 827 megawatts (MW) of capacity under long-term PPAs as of Sept. 30, 2014 and Dec. 31, 2013 with entities that have been determined to be variable interest entities. SPS has concluded that these entities are not required to be consolidated in its 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 2033. | |
Indemnification Agreements | |
In connection with the sale of certain Texas electric transmission assets to Sharyland Distribution and Transmission Services, LLC in 2013, SPS agreed to indemnify the purchaser for losses arising out of any breach of the representations, warranties and covenants under the related asset purchase agreement and for losses arising out of certain other matters, including pre-closing liabilities. SPS’ indemnification obligation is capped at $37.1 million, in the aggregate. The indemnification provisions for most representations and warranties expire in December 2014. The remaining representations and warranties, which relate to due organization and transaction authorization, survive indefinitely. As of Sept. 30, 2014 and Dec. 31, 2013, SPS has recorded a $0.4 million liability related to this indemnity. | |
Environmental Contingencies | |
Environmental Requirements | |
Water and waste | |
Federal Clean Water Act (CWA) Effluent Limitations Guidelines (ELG) — In June 2013, the U.S. Environmental Protection Agency (EPA) published a proposed ELG rule for power plants that use coal, natural gas, oil or nuclear materials as fuel and discharge treated effluent to surface waters as well as utility-owned landfills that receive coal combustion residuals. The final rule is now expected in September 2015. Under the current proposed rule, facilities would need to comply as soon as possible after July 2017, but no later than July 2022. The impact of this rule on SPS is uncertain at this time. | |
Federal CWA Waters of the United States Rule — In April 2014, the EPA and the U.S. Army Corps of Engineers issued a proposed rule that significantly expands the types of water bodies regulated under the CWA. If finalized as proposed, this rule could delay the siting of new pipelines, transmission lines and distribution lines, increase project costs and expand permitting and reporting requirements. The ultimate impact of the proposed rule will depend on the specific requirements of the final rule and cannot be determined at this time. A final rule is not anticipated before the first quarter of 2015. | |
Air | |
EPA Greenhouse Gas (GHG) Permitting — In 2011, new EPA permitting requirements became effective for GHG emissions of new and modified large stationary sources, which were applicable to the construction of new power plants or power plant modifications that increase emissions above a certain threshold. These rules were upheld by the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit), but in June 2014 the U.S. Supreme Court reversed the EPA’s GHG emission thresholds for this program. The Supreme Court decided the EPA could not adopt GHG thresholds that would require permitting for new and modified large stationary sources. However, the Supreme Court also decided if a new or modified stationary source becomes subject to the permitting requirements by exceeding emission thresholds for other pollutants, then GHG emissions may be evaluated as part of the permitting process. SPS is unable to determine the cost of compliance with these new EPA requirements as it is not clear whether these requirements will apply to future changes at SPS’ power plants. | |
GHG Emission Standard for Existing Sources — In June 2014, the EPA published its proposed rule on GHG emission standards for existing power plants. Comments are due to the EPA on Dec. 1, 2014 and a final rule is anticipated in June 2015. Following adoption of the final rule, states must develop implementation plans by June 2016, with the possibility of an extension to June 2017 (June 2018 if submitting a joint plan with other states). Among other things, the proposed rule would require that state plans include enforceable measures to ensure emissions from existing power plants in the state achieve the EPA’s state-specific interim (2020-2029) and final (2030 and thereafter) emission performance targets. The plan will likely require additional emission reductions in states in which SPS operates. It is not possible to evaluate the impact of existing source standards until the EPA promulgates a final rule and states have adopted their applicable state plans. | |
GHG New Source Performance Standard (NSPS) Proposal — In January 2014, the EPA re-proposed a GHG NSPS for newly constructed power plants which would set performance standards (maximum carbon dioxide emission rates) for coal- and natural gas-fired power plants. For coal power plants, the NSPS requires an emissions level equivalent to partial carbon capture and storage (CCS) technology; for gas-fired power plants, the NSPS reflects emissions levels from combined cycle technology with no CCS. The EPA continues to propose that the NSPS not apply to modified or reconstructed existing power plants. In addition, installation of control equipment on existing plants would not constitute a “modification” to those plants under the NSPS program. It is not possible to evaluate the impact of the re-proposed NSPS until its final requirements are known. | |
GHG NSPS for Modified and Reconstructed Power Plants — In June 2014, the EPA published a proposed NSPS that would apply to GHG emissions from power plants that are modified or reconstructed. A final rule is anticipated in June 2015. A modification is a change to an existing source that increases the maximum achievable hourly rate of emissions. A reconstruction involves the replacement of components at a unit to the extent that the capital cost of the new components exceeds 50 percent of the capital cost of an entirely new comparable unit. The proposed standards would not require installation of CCS technology. Instead, the proposed standard for coal-fired power plants would require a combination of best operating practices and equipment upgrades. The proposal for gas-fired power plants would require emissions standards based on efficient combined cycle technology. It is not possible to evaluate the impact of these proposed standards until the final requirements are known. In addition, it is not clear whether these requirements, once adopted, would apply to future changes at SPS’ power plants. | |
Cross-State Air Pollution Rule (CSAPR) — In 2011, the EPA issued the CSAPR to address long range transport of particulate matter (PM) and ozone by requiring reductions in sulfur dioxide (SO2) and nitrous oxide (NOx) from utilities in the eastern half of the United States, including Texas. The CSAPR set more stringent requirements than the proposed Clean Air Transport Rule and requires plants in Texas to reduce their SO2 and annual NOx emissions. The rule also creates an emissions trading program. | |
In August 2012, the D.C. Circuit vacated the CSAPR and remanded it back to the EPA. The D.C. Circuit stated the EPA must continue administering the Clean Air Interstate Rule (CAIR) pending adoption of a valid replacement. In April 2014, the U.S. Supreme Court reversed and remanded the case to the D.C. Circuit. The Supreme Court held that the EPA’s rule design did not violate the Clean Air Act (CAA) and that states had received adequate opportunity to develop their own plans. Because the D.C. Circuit overturned the CSAPR on two over-arching issues, there are many other issues the D.C. Circuit did not rule on that will now need to be considered on remand. In June 2014, the EPA filed a motion with the D.C. Circuit asking it to lift the stay of the CSAPR. The EPA requested the CSAPR’s 2012 compliance obligations be imposed starting in January 2015. The D.C. Circuit granted the EPA’s motion in October 2014. In addition, the D.C. Circuit set a briefing schedule and plans to hear arguments on the remaining issues in the case in March 2015. | |
Multiple changes to the SPS system since 2011 will substantially reduce estimated costs of complying with the CSAPR. These include the addition of 700 MW of wind power, the construction of Jones Units 3 and 4 to meet reserve requirements and provide quick start capability, reduced wholesale load and new PPAs, installation of NOx combustion controls on Tolk Units 1 and 2 and completion of certain transmission projects. As a result, SPS estimates compliance with the CSAPR in 2015 will cost approximately $7 million. | |
The EPA will begin to administer the CSAPR in 2015, which will replace the CAIR. In 2014, SPS expects to comply with the CAIR as described below. | |
CAIR — In 2005, the EPA issued the CAIR to further regulate SO2 and NOx emissions. Under the CAIR’s cap and trade structure, companies can comply through capital investments in emission controls or purchase of emission allowances from other utilities making reductions on their systems. In the SPS region, installation of low-NOx combustion control technology was completed in 2012 on Tolk Unit 1 and in 2014 on Tolk Unit 2. These installations will reduce or eliminate SPS’ need to purchase NOx emission allowances. At Sept. 30, 2014, the estimated annual CAIR NOx allowance cost for SPS did not have a material impact on the results of operations, financial position or cash flows. SPS has sufficient SO2 allowances to comply with the CAIR through 2015. | |
Regional Haze Rules — The regional haze program is designed to address widespread, regionally homogeneous haze that results from emissions from a multitude of sources. In 2005, the EPA amended the best available retrofit technology (BART) requirements of its regional haze rules, which require the installation and operation of emission controls for industrial facilities emitting air pollutants that reduce visibility in certain national parks and wilderness areas. In its first regional haze state implementation plan (SIP), Texas identified the SPS facilities that will have to reduce SO2, NOx and PM emissions under BART and set emissions limits for those facilities. | |
Harrington Units 1 and 2 are potentially subject to BART. Texas developed a SIP that finds the CAIR equal to BART for electric generating units (EGUs). As a result, no additional controls beyond CAIR compliance would be required. In May 2012, the EPA deferred its review of the SIP in its final rule allowing states to find that CSAPR compliance meets BART requirements for EGUs. It is not yet known how the U.S. Supreme Court’s April 2014 decision on the CSAPR, or the D.C. Circuit’s decision to lift its stay of the CSAPR, may impact the EPA’s approval of the BART requirements in the SIP. | |
In May 2014, the EPA issued a request for information under the CAA related to SO2 control equipment at Tolk Units 1 and 2. The EPA stated it is conducting an analysis of the cost and feasibility of SO2 controls on certain sources, including the Tolk facility, as part of its review of the SIP. The EPA has preliminarily identified Tolk as a contributor to haze in the Wichita Mountains Wildlife Refuge in Oklahoma, and is planning further analysis of SO2 control options. The EPA plans to make a proposal in November 2014 that could include SO2 emission controls at Tolk and anticipates issuing a final decision in August 2015. The costs and timing of potential additional SO2 controls at Tolk are dependent on the EPA’s proposal and final decision, neither of which is yet known. | |
Revisions to National Ambient Air Quality Standards (NAAQS) for PM — In December 2012, the EPA lowered the primary health-based NAAQS for annual average fine PM and retained the current daily standard for fine PM. In areas where SPS operates power plants, current monitored air concentrations are below the level of the final annual primary standard. In August 2014, EPA issued its proposed designations, which did not include areas in any states in which SPS operates. The EPA is expected to finalize its designation of non-compliant locations by December 2014. States would then study the sources of the nonattainment and make emission reduction plans to attain the standards. It is not possible to evaluate the impact of this regulation further until the final designations have been made. | |
Legal Contingencies | |
SPS 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 SPS’ financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. | |
Employment, Tort and Commercial Litigation | |
Exelon Wind (formerly John Deere Wind) Complaint — Several lawsuits in Texas state and federal courts and regulatory proceedings have arisen out of a dispute concerning SPS’ payments for energy and capacity produced from the Exelon Wind subsidiaries’ projects. There are two main areas of dispute. First, Exelon Wind claims that it established legally enforceable obligations (LEOs) for each of its 12 wind facilities in 2005 through 2008 that require SPS to buy power based on SPS’ forecasted avoided cost as determined in 2005 through 2008. Although SPS has refused to accept Exelon Wind’s LEOs, SPS accepts that it must take energy from Exelon Wind under SPS’ PUCT-approved Qualifying Facilities (QF) Tariff. Second, Exelon Wind has raised various challenges to SPS’ PUCT-approved QF Tariff, which became effective in August 2010. The state and federal lawsuits and regulatory proceedings are in various stages of litigation. On Sept. 8, 2014, the Fifth Circuit Court of Appeals (Fifth Circuit) ruled that federal courts do not have jurisdiction to hear Exelon Wind’s challenge to the PUCT’s decision that Exelon Wind is ineligible to establish LEOs for the six wind facilities that were the subject of the PUCT’s order. The Fifth Circuit also ruled that the PUCT’s requirement that only QF’s providing firm energy are eligible to establish LEOs is valid. Exelon Wind filed a motion for rehearing with the Fifth Circuit on Sept. 22, 2014. On Oct. 10, 2014, the Fifth Circuit denied Exelon Wind’s motion for rehearing. SPS believes the likelihood of loss in these lawsuits and proceedings is remote based primarily on existing case law and while it is not possible to estimate the amount or range of reasonably possible loss in the event of an adverse outcome, SPS believes such loss would not be material based upon its belief that it would be permitted to recover such costs, if needed, through its various fuel clause mechanisms. No accrual has been recorded for this matter. |
Borrowings_and_Other_Financing
Borrowings and Other Financing Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
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 SPS were as follows: | |||||||||||
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2014 | Twelve Months Ended Dec. 31, 2013 | |||||||||
Borrowing limit | $ | 100 | $ | 100 | |||||||
Amount outstanding at period end | — | 38 | |||||||||
Average amount outstanding | 1 | 46 | |||||||||
Maximum amount outstanding | 22 | 100 | |||||||||
Weighted average interest rate, computed on a daily basis | 0.26 | % | 0.15 | % | |||||||
Weighted average interest rate at period end | N/A | 0.25 | |||||||||
Commercial Paper — SPS meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility. Commercial paper outstanding for SPS was as follows: | |||||||||||
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2014 | Twelve Months Ended Dec. 31, 2013 | |||||||||
Borrowing limit | $ | 300 | $ | 300 | |||||||
Amount outstanding at period end | — | 84 | |||||||||
Average amount outstanding | 43 | 32 | |||||||||
Maximum amount outstanding | 106 | 140 | |||||||||
Weighted average interest rate, computed on a daily basis | 0.26 | % | 0.3 | % | |||||||
Weighted average interest rate at period end | N/A | 0.27 | |||||||||
Letters of Credit — SPS uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At Sept. 30, 2014 and Dec. 31, 2013, there were $41.0 million and $25.5 million of letters of credit outstanding, respectively, 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 to fulfill short-term funding needs, SPS must have a revolving 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 capacity under this credit facility. 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 Sept. 30, 2014, SPS had the following committed credit facility available (in millions of dollars): | |||||||||||
Credit Facility (a) | Drawn (b) | Available | |||||||||
$ | 300 | $ | 41 | $ | 259 | ||||||
(a) | Credit facility has been amended to expire in October 2019. | ||||||||||
(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. SPS had no direct advances on the credit facility outstanding at Sept. 30, 2014 and Dec. 31, 2013. | |||||||||||
Amended Credit Agreement — On Oct. 14, 2014, SPS entered into an amended five-year credit agreement with a syndicate of banks. The amended credit agreement has substantially the same terms and conditions as the prior credit agreement with an increased borrowing limit and an extension of maturity from July 2017 to October 2019. The borrowing limit for SPS has been increased to $400 million from $300 million. The Eurodollar borrowing margin on the line of credit ranges from 87.5 to 175 basis points per year based on applicable long-term credit ratings. The commitment fee, calculated on the unused portion of the line of credit, ranges from 7.5 to 27.5 basis points per year, also based on applicable long-term credit ratings. | |||||||||||
SPS has the right to request an extension of the revolving termination date for two additional one-year periods, subject to majority bank group approval. | |||||||||||
Long-Term Borrowings | |||||||||||
In June 2014, SPS issued $150 million of 3.30 percent first mortgage bonds due June 15, 2024. | |||||||||||
In connection with SPS’ issuance of $150 million of 3.30 percent first mortgage bonds due June 15, 2024, SPS issued $250 million of collateral 8.75 percent first mortgage bonds due Dec. 1, 2018 to the trustee under its senior unsecured indenture in order to secure its previously issued Series G Senior Notes, 8.75 percent due Dec. 1, 2018, equally and ratably with SPS’ first mortgage bonds as required by the terms of such Series G Senior Notes. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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 net asset values. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Electric commodity derivatives held by SPS include transmission congestion instruments purchased from the Southwest Power Pool, Inc. (SPP), generally referred to as financial transmission rights (FTRs). FTRs purchased from a regional transmission organization (RTO) are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path. The value of an FTR is derived from, and designed to offset, the cost of energy congestion, which is caused by overall transmission load and other transmission constraints. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of an FTR. The valuation process for FTRs utilizes complex iterative modeling to predict the impacts of forecasted changes in these drivers of transmission system congestion on the historical pricing of FTR purchases. | |||||||||||||||||||||||||
If forecasted costs of electric transmission congestion increase or decrease for a given FTR path, the value of that particular FTR instrument will likewise increase or decrease. Given the limited observability of management’s forecasts for several of the inputs to this complex valuation model - including expected plant operating schedules and retail and wholesale demand, fair value measurements for FTRs have been assigned a Level 3. Non-trading monthly FTR settlements are expected to be recovered through fuel and purchased energy cost recovery mechanisms, and therefore changes in the fair value of the yet to be settled portions of FTRs are deferred as a regulatory asset or liability. Given this regulatory treatment and the limited magnitude of FTRs relative to the electric utility operations of SPS, the numerous unobservable quantitative inputs to the complex model used for valuation of FTRs are insignificant to the financial statements of SPS. | |||||||||||||||||||||||||
Derivative Instruments Fair Value Measurements | |||||||||||||||||||||||||
SPS enters into derivative instruments, including forward contracts, for trading purposes and to manage risk in connection with changes in interest rates and electric utility commodity prices. | |||||||||||||||||||||||||
Interest Rate Derivatives — SPS may enter 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 Sept. 30, 2014, accumulated other comprehensive losses related to interest rate derivatives included $0.2 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 unsettled hedges, as applicable. | |||||||||||||||||||||||||
Wholesale and Commodity Trading Risk — SPS conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy and energy-related instruments. SPS’ risk management policy allows management to conduct these activities within guidelines and limitations as approved by its risk management committee, which is made up of management personnel not directly involved in the activities governed by this policy. | |||||||||||||||||||||||||
Commodity Derivatives — SPS enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric utility operations, as well as for trading purposes. This could include the purchase or sale of energy or energy-related products and FTRs. | |||||||||||||||||||||||||
The following table details the gross notional amounts of commodity FTRs at Sept. 30, 2014 and Dec. 31, 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Megawatt hours of electricity | 10,880 | 5,989 | |||||||||||||||||||||||
Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — Pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings were $0.1 million for the three months ended Sept. 30, 2014 and 2013, and $0.2 million for the nine months ended Sept. 30, 2014 and 2013. | |||||||||||||||||||||||||
During the three and nine months ended Sept. 30, 2014, changes in the fair value of FTRs resulting in pre-tax net losses of $1.2 million and $3.6 million, respectively, were recognized as regulatory assets and liabilities. The classification as a regulatory asset or liability is based on expected recovery of FTR settlements through fuel and purchased energy cost recovery mechanisms. | |||||||||||||||||||||||||
FTR settlement losses of $1.2 million and $0.3 million were recognized for the three and nine months ended Sept. 30, 2014, respectively, recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. | |||||||||||||||||||||||||
SPS had no derivative instruments designated as fair value hedges during the three and nine months ended Sept. 30, 2014 and 2013. Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. | |||||||||||||||||||||||||
Consideration of Credit Risk and Concentrations — SPS continuously 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 set forth in the contracts. Given this assessment, as well as an assessment of the impact of SPS’ 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 balance sheets. | |||||||||||||||||||||||||
SPS employs additional credit risk control mechanisms when appropriate, 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. | |||||||||||||||||||||||||
SPS’ most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity and transmission activities. At Sept. 30, 2014, two of SPS’ eight most significant counterparties for these activities, comprising $19.7 million or 17 percent of this credit exposure, had investment grade credit ratings from Standard & Poor’s Ratings Services, Moody’s Investor Services or Fitch Ratings. The remaining six significant counterparties, comprising $58.1 million or 50 percent of this credit exposure, were not rated by these agencies, but based on SPS’ internal analysis, had credit quality consistent with investment grade. All eight of these significant counterparties are RTOs, municipal or cooperative electric entities or other utilities. | |||||||||||||||||||||||||
Recurring Fair Value Measurements — The following table presents for each of the fair value hierarchy levels, SPS’ derivative assets and liabilities measured at fair value on a recurring basis at Sept. 30, 2014: | |||||||||||||||||||||||||
Sept. 30, 2014 | |||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 37,826 | $ | 37,826 | $ | (15,586 | ) | $ | 22,240 | ||||||||||||
Total current derivative assets | $ | — | $ | — | $ | 37,826 | $ | 37,826 | $ | (15,586 | ) | 22,240 | |||||||||||||
PPAs (a) | 7,892 | ||||||||||||||||||||||||
Current derivative instruments | $ | 30,132 | |||||||||||||||||||||||
Noncurrent derivative assets | |||||||||||||||||||||||||
PPAs (a) | $ | 35,137 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 35,137 | |||||||||||||||||||||||
Current derivative liabilities | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 15,586 | $ | 15,586 | $ | (15,586 | ) | $ | — | ||||||||||||
Total current derivative liabilities | $ | — | $ | — | $ | 15,586 | $ | 15,586 | $ | (15,586 | ) | — | |||||||||||||
PPAs (a) | 3,565 | ||||||||||||||||||||||||
Current derivative instruments | $ | 3,565 | |||||||||||||||||||||||
Noncurrent derivative liabilities | |||||||||||||||||||||||||
PPAs (a) | $ | 31,534 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 31,534 | |||||||||||||||||||||||
(a) | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, SPS 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 in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, SPS 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) | SPS nets derivative instruments and related collateral in its 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 Sept. 30, 2014. At Sept. 30, 2014, 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, SPS’ derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2013: | |||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 16,420 | $ | 16,420 | $ | (6,487 | ) | $ | 9,933 | ||||||||||||
Total current derivative assets | $ | — | $ | — | $ | 16,420 | $ | 16,420 | $ | (6,487 | ) | 9,933 | |||||||||||||
PPAs (a) | 7,893 | ||||||||||||||||||||||||
Current derivative instruments | $ | 17,826 | |||||||||||||||||||||||
Noncurrent derivative assets | |||||||||||||||||||||||||
PPAs (a) | $ | 41,056 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 41,056 | |||||||||||||||||||||||
Current derivative liabilities | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 6,487 | $ | 6,487 | $ | (6,487 | ) | $ | — | ||||||||||||
Total current derivative liabilities | $ | — | $ | — | $ | 6,487 | $ | 6,487 | $ | (6,487 | ) | — | |||||||||||||
PPAs (a) | 3,583 | ||||||||||||||||||||||||
Current derivative instruments | $ | 3,583 | |||||||||||||||||||||||
Noncurrent derivative liabilities | |||||||||||||||||||||||||
PPAs (a) | $ | 34,207 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 34,207 | |||||||||||||||||||||||
(a) | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, SPS 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 in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, SPS 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) | SPS nets derivative instruments and related collateral in its 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, 2013. At Dec. 31, 2013, 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 tables present the changes in Level 3 commodity derivatives for the three and nine months ended Sept. 30, 2014, and there were no Level 3 commodity derivatives during the three and nine months ended Sept. 30, 2013: | |||||||||||||||||||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2014 | ||||||||||||||||||||||||
Balance at July 1 | $ | 33,942 | |||||||||||||||||||||||
Purchases | 4,429 | ||||||||||||||||||||||||
Settlements | (8,346 | ) | |||||||||||||||||||||||
Net transactions recorded during the period: | |||||||||||||||||||||||||
Losses recognized as regulatory assets and liabilities | (7,785 | ) | |||||||||||||||||||||||
Balance at Sept. 30 | $ | 22,240 | |||||||||||||||||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2014 | ||||||||||||||||||||||||
Balance at Jan. 1 | $ | 9,933 | |||||||||||||||||||||||
Purchases | 43,904 | ||||||||||||||||||||||||
Settlements | (23,001 | ) | |||||||||||||||||||||||
Net transactions recorded during the period: | |||||||||||||||||||||||||
Losses recognized as regulatory assets and liabilities | (8,596 | ) | |||||||||||||||||||||||
Balance at Sept. 30 | $ | 22,240 | |||||||||||||||||||||||
SPS 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 nine months ended Sept. 30, 2014 and 2013. | |||||||||||||||||||||||||
Fair Value of Long-Term Debt | |||||||||||||||||||||||||
As of Sept. 30, 2014 and Dec. 31, 2013, other financial instruments for which the carrying amount did not equal fair value were as follows: | |||||||||||||||||||||||||
Sept. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
(Thousands of Dollars) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Long-term debt, including current portion | $ | 1,349,604 | $ | 1,524,990 | $ | 1,199,865 | $ | 1,307,035 | |||||||||||||||||
The fair value of SPS’ 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 Sept. 30, 2014 and Dec. 31, 2013, 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_Expense_Net
Other Income (Expense), Net | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Income (Expense), Net | ' | |||||||||||||||
Other Income (Expense), Net | ||||||||||||||||
Other income (expense), net consisted of the following: | ||||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income | $ | 73 | $ | 48 | $ | 313 | $ | 308 | ||||||||
Other nonoperating income | 1 | 1 | 1 | 6 | ||||||||||||
Insurance policy expense | (8 | ) | (164 | ) | (336 | ) | (372 | ) | ||||||||
Other income (expense), net | $ | 66 | $ | (115 | ) | $ | (22 | ) | $ | (58 | ) | |||||
Benefit_Plans_and_Other_Postre
Benefit Plans and Other Postretirement Benefits | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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 Sept. 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 2,296 | $ | 2,404 | $ | 312 | $ | 342 | |||||||||
Interest cost | 5,111 | 4,477 | 643 | 588 | |||||||||||||
Expected return on plan assets | (6,545 | ) | (5,993 | ) | (812 | ) | (796 | ) | |||||||||
Amortization of prior service cost (credit) | 14 | 218 | (100 | ) | (121 | ) | |||||||||||
Amortization of net loss (gain) | 3,332 | 4,287 | (80 | ) | (2 | ) | |||||||||||
Net periodic benefit cost (credit) | 4,208 | 5,393 | (37 | ) | 11 | ||||||||||||
Credits recognized due to the effects of regulation | 707 | 62 | — | — | |||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 4,915 | $ | 5,455 | $ | (37 | ) | $ | 11 | ||||||||
Nine Months Ended Sept. 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 6,888 | $ | 7,211 | $ | 935 | $ | 1,026 | |||||||||
Interest cost | 15,333 | 13,431 | 1,929 | 1,764 | |||||||||||||
Expected return on plan assets | (19,635 | ) | (17,978 | ) | (2,435 | ) | (2,388 | ) | |||||||||
Amortization of prior service cost (credit) | 41 | 653 | (301 | ) | (363 | ) | |||||||||||
Amortization of net loss (gain) | 9,995 | 12,861 | (241 | ) | (5 | ) | |||||||||||
Net periodic benefit cost (credit) | 12,622 | 16,178 | (113 | ) | 34 | ||||||||||||
Credits recognized (costs not recognized) due to the effects of regulation | 2,122 | (1,330 | ) | — | — | ||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 14,744 | $ | 14,848 | $ | (113 | ) | $ | 34 | ||||||||
In January 2014, contributions of $130.0 million were made across three of Xcel Energy’s pension plans, of which $4.4 million was attributable to SPS. Xcel Energy does not expect additional pension contributions during 2014. |
Other_Comprehensive_Income
Other Comprehensive Income | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||
Other Comprehensive Income | ' | |||||||||
Other Comprehensive Income | ||||||||||
Changes in accumulated other comprehensive loss, net of tax, for the three and nine months ended Sept. 30, 2014 and 2013 were as follows: | ||||||||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2014 | Three Months Ended Sept. 30, 2013 | ||||||||
Accumulated other comprehensive loss at July 1 | $ | (1,076 | ) | $ | (1,247 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 44 | 44 | ||||||||
Net current period other comprehensive income | 44 | 44 | ||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (1,032 | ) | $ | (1,203 | ) | ||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2014 | Nine Months Ended Sept. 30, 2013 | ||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (1,161 | ) | $ | (1,332 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 129 | 129 | ||||||||
Net current period other comprehensive income | 129 | 129 | ||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (1,032 | ) | $ | (1,203 | ) | ||||
Reclassifications from accumulated other comprehensive loss for the three and nine months ended Sept. 30, 2014 and 2013 were as follows: | ||||||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2014 | Three Months Ended Sept. 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 68 | (a) | $ | 68 | (a) | ||||
Total, pre-tax | 68 | 68 | ||||||||
Tax benefit | (24 | ) | (24 | ) | ||||||
Total amounts reclassified, net of tax | $ | 44 | $ | 44 | ||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2014 | Nine Months Ended Sept. 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 201 | (a) | $ | 201 | (a) | ||||
Total, pre-tax | 201 | 201 | ||||||||
Tax benefit | (72 | ) | (72 | ) | ||||||
Total amounts reclassified, net of tax | $ | 129 | $ | 129 | ||||||
(a) | Included in interest charges. |
Selected_Balance_Sheet_Data_Ta
Selected Balance Sheet Data (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Accounts Receivable, Net | ' | ||||||||
(Thousands of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Accounts receivable, net | |||||||||
Accounts receivable | $ | 96,110 | $ | 76,426 | |||||
Less allowance for bad debts | (5,794 | ) | (5,475 | ) | |||||
$ | 90,316 | $ | 70,951 | ||||||
Inventories | ' | ||||||||
(Thousands of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Inventories | |||||||||
Materials and supplies | $ | 23,770 | $ | 21,600 | |||||
Fuel | 19,625 | 15,538 | |||||||
$ | 43,395 | $ | 37,138 | ||||||
Property, Plant and Equipment, Net | ' | ||||||||
(Thousands of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Property, plant and equipment, net | |||||||||
Electric plant | $ | 5,200,187 | $ | 4,714,398 | |||||
Construction work in progress | 264,894 | 388,323 | |||||||
Total property, plant and equipment | 5,465,081 | 5,102,721 | |||||||
Less accumulated depreciation | (1,848,891 | ) | (1,818,691 | ) | |||||
$ | 3,616,190 | $ | 3,284,030 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||
A reconciliation of the amount of unrecognized tax benefit is as follows: | |||||||||
(Millions of Dollars) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
Unrecognized tax benefit — Permanent tax positions | $ | 0.4 | $ | 1.2 | |||||
Unrecognized tax benefit — Temporary tax positions | 2.9 | 2.9 | |||||||
Total unrecognized tax benefit | $ | 3.3 | $ | 4.1 | |||||
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) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||
NOL and tax credit carryforwards | $ | (2.4 | ) | $ | (2.4 | ) |
Rate_Matters_Tables
Rate Matters (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Public Utilities, General Disclosures [Abstract] | ' | ||||
SPS' Texas 2014 Electric Rate Case | ' | ||||
Although the parties to the settlement agreement have not prepared a calculation of the $37 million increase and do not agree about which specific costs are included, or not, in the agreed settlement revenue requirement, SPS’ reconciliation of its original request to the settlement increase is as follows: | |||||
(Millions of Dollars) | Settlement Agreement | ||||
Base rate increase request, January 2014 | $ | 81.5 | |||
Revisions for updated information | (4.6 | ) | |||
Revised request, April 2014 | 76.9 | ||||
Remove proposed increase in depreciation | (16.0 | ) | |||
Remove adjustment allocators for certain wholesale load reduction | (12.0 | ) | |||
Revised amortizations (rate case expenses, pension and other post-employment benefits expense and gain on sale to Lubbock) | (9.0 | ) | |||
Non-specified settlement adjustments | (2.9 | ) | |||
Settlement base rate increase | $ | 37 | |||
Borrowings_and_Other_Financing1
Borrowings and Other Financing Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Borrowings and Other Financing Instruments [Abstract] | ' | ||||||||||
Credit Facilities | ' | ||||||||||
At Sept. 30, 2014, SPS had the following committed credit facility available (in millions of dollars): | |||||||||||
Credit Facility (a) | Drawn (b) | Available | |||||||||
$ | 300 | $ | 41 | $ | 259 | ||||||
(a) | Credit facility has been amended to expire in October 2019. | ||||||||||
(b) | Includes outstanding letters of credit. | ||||||||||
Money Pool | ' | ||||||||||
Borrowings and Other Financing Instruments [Abstract] | ' | ||||||||||
Short-Term Borrowings | ' | ||||||||||
Money pool borrowings for SPS were as follows: | |||||||||||
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2014 | Twelve Months Ended Dec. 31, 2013 | |||||||||
Borrowing limit | $ | 100 | $ | 100 | |||||||
Amount outstanding at period end | — | 38 | |||||||||
Average amount outstanding | 1 | 46 | |||||||||
Maximum amount outstanding | 22 | 100 | |||||||||
Weighted average interest rate, computed on a daily basis | 0.26 | % | 0.15 | % | |||||||
Weighted average interest rate at period end | N/A | 0.25 | |||||||||
Commercial Paper | ' | ||||||||||
Borrowings and Other Financing Instruments [Abstract] | ' | ||||||||||
Short-Term Borrowings | ' | ||||||||||
Commercial paper outstanding for SPS was as follows: | |||||||||||
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2014 | Twelve Months Ended Dec. 31, 2013 | |||||||||
Borrowing limit | $ | 300 | $ | 300 | |||||||
Amount outstanding at period end | — | 84 | |||||||||
Average amount outstanding | 43 | 32 | |||||||||
Maximum amount outstanding | 106 | 140 | |||||||||
Weighted average interest rate, computed on a daily basis | 0.26 | % | 0.3 | % | |||||||
Weighted average interest rate at period end | N/A | 0.27 | |||||||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Gross Notional Amounts of Commodity FTRs | ' | ||||||||||||||||||||||||
The following table details the gross notional amounts of commodity FTRs at Sept. 30, 2014 and Dec. 31, 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) | Sept. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Megawatt hours of electricity | 10,880 | 5,989 | |||||||||||||||||||||||
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, SPS’ derivative assets and liabilities measured at fair value on a recurring basis at Sept. 30, 2014: | |||||||||||||||||||||||||
Sept. 30, 2014 | |||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 37,826 | $ | 37,826 | $ | (15,586 | ) | $ | 22,240 | ||||||||||||
Total current derivative assets | $ | — | $ | — | $ | 37,826 | $ | 37,826 | $ | (15,586 | ) | 22,240 | |||||||||||||
PPAs (a) | 7,892 | ||||||||||||||||||||||||
Current derivative instruments | $ | 30,132 | |||||||||||||||||||||||
Noncurrent derivative assets | |||||||||||||||||||||||||
PPAs (a) | $ | 35,137 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 35,137 | |||||||||||||||||||||||
Current derivative liabilities | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 15,586 | $ | 15,586 | $ | (15,586 | ) | $ | — | ||||||||||||
Total current derivative liabilities | $ | — | $ | — | $ | 15,586 | $ | 15,586 | $ | (15,586 | ) | — | |||||||||||||
PPAs (a) | 3,565 | ||||||||||||||||||||||||
Current derivative instruments | $ | 3,565 | |||||||||||||||||||||||
Noncurrent derivative liabilities | |||||||||||||||||||||||||
PPAs (a) | $ | 31,534 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 31,534 | |||||||||||||||||||||||
(a) | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, SPS 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 in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, SPS 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) | SPS nets derivative instruments and related collateral in its 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 Sept. 30, 2014. At Sept. 30, 2014, 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, SPS’ derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2013: | |||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value Total | Counterparty Netting (b) | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 16,420 | $ | 16,420 | $ | (6,487 | ) | $ | 9,933 | ||||||||||||
Total current derivative assets | $ | — | $ | — | $ | 16,420 | $ | 16,420 | $ | (6,487 | ) | 9,933 | |||||||||||||
PPAs (a) | 7,893 | ||||||||||||||||||||||||
Current derivative instruments | $ | 17,826 | |||||||||||||||||||||||
Noncurrent derivative assets | |||||||||||||||||||||||||
PPAs (a) | $ | 41,056 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 41,056 | |||||||||||||||||||||||
Current derivative liabilities | |||||||||||||||||||||||||
Other derivative instruments: | |||||||||||||||||||||||||
Electric commodity | $ | — | $ | — | $ | 6,487 | $ | 6,487 | $ | (6,487 | ) | $ | — | ||||||||||||
Total current derivative liabilities | $ | — | $ | — | $ | 6,487 | $ | 6,487 | $ | (6,487 | ) | — | |||||||||||||
PPAs (a) | 3,583 | ||||||||||||||||||||||||
Current derivative instruments | $ | 3,583 | |||||||||||||||||||||||
Noncurrent derivative liabilities | |||||||||||||||||||||||||
PPAs (a) | $ | 34,207 | |||||||||||||||||||||||
Noncurrent derivative instruments | $ | 34,207 | |||||||||||||||||||||||
(a) | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, SPS 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 in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, SPS 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) | SPS nets derivative instruments and related collateral in its 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, 2013. At Dec. 31, 2013, 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. | ||||||||||||||||||||||||
Changes in Level 3 Commodity Derivatives | ' | ||||||||||||||||||||||||
The following tables present the changes in Level 3 commodity derivatives for the three and nine months ended Sept. 30, 2014, and there were no Level 3 commodity derivatives during the three and nine months ended Sept. 30, 2013: | |||||||||||||||||||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2014 | ||||||||||||||||||||||||
Balance at July 1 | $ | 33,942 | |||||||||||||||||||||||
Purchases | 4,429 | ||||||||||||||||||||||||
Settlements | (8,346 | ) | |||||||||||||||||||||||
Net transactions recorded during the period: | |||||||||||||||||||||||||
Losses recognized as regulatory assets and liabilities | (7,785 | ) | |||||||||||||||||||||||
Balance at Sept. 30 | $ | 22,240 | |||||||||||||||||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2014 | ||||||||||||||||||||||||
Balance at Jan. 1 | $ | 9,933 | |||||||||||||||||||||||
Purchases | 43,904 | ||||||||||||||||||||||||
Settlements | (23,001 | ) | |||||||||||||||||||||||
Net transactions recorded during the period: | |||||||||||||||||||||||||
Losses recognized as regulatory assets and liabilities | (8,596 | ) | |||||||||||||||||||||||
Balance at Sept. 30 | $ | 22,240 | |||||||||||||||||||||||
Carrying Amount and Fair Value of Long-term Debt | ' | ||||||||||||||||||||||||
As of Sept. 30, 2014 and Dec. 31, 2013, other financial instruments for which the carrying amount did not equal fair value were as follows: | |||||||||||||||||||||||||
Sept. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
(Thousands of Dollars) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Long-term debt, including current portion | $ | 1,349,604 | $ | 1,524,990 | $ | 1,199,865 | $ | 1,307,035 | |||||||||||||||||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Income (Expense), Net | ' | |||||||||||||||
Other income (expense), net consisted of the following: | ||||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income | $ | 73 | $ | 48 | $ | 313 | $ | 308 | ||||||||
Other nonoperating income | 1 | 1 | 1 | 6 | ||||||||||||
Insurance policy expense | (8 | ) | (164 | ) | (336 | ) | (372 | ) | ||||||||
Other income (expense), net | $ | 66 | $ | (115 | ) | $ | (22 | ) | $ | (58 | ) | |||||
Benefit_Plans_and_Other_Postre1
Benefit Plans and Other Postretirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost (Credit) | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost (Credit) | |||||||||||||||||
Three Months Ended Sept. 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 2,296 | $ | 2,404 | $ | 312 | $ | 342 | |||||||||
Interest cost | 5,111 | 4,477 | 643 | 588 | |||||||||||||
Expected return on plan assets | (6,545 | ) | (5,993 | ) | (812 | ) | (796 | ) | |||||||||
Amortization of prior service cost (credit) | 14 | 218 | (100 | ) | (121 | ) | |||||||||||
Amortization of net loss (gain) | 3,332 | 4,287 | (80 | ) | (2 | ) | |||||||||||
Net periodic benefit cost (credit) | 4,208 | 5,393 | (37 | ) | 11 | ||||||||||||
Credits recognized due to the effects of regulation | 707 | 62 | — | — | |||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 4,915 | $ | 5,455 | $ | (37 | ) | $ | 11 | ||||||||
Nine Months Ended Sept. 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 6,888 | $ | 7,211 | $ | 935 | $ | 1,026 | |||||||||
Interest cost | 15,333 | 13,431 | 1,929 | 1,764 | |||||||||||||
Expected return on plan assets | (19,635 | ) | (17,978 | ) | (2,435 | ) | (2,388 | ) | |||||||||
Amortization of prior service cost (credit) | 41 | 653 | (301 | ) | (363 | ) | |||||||||||
Amortization of net loss (gain) | 9,995 | 12,861 | (241 | ) | (5 | ) | |||||||||||
Net periodic benefit cost (credit) | 12,622 | 16,178 | (113 | ) | 34 | ||||||||||||
Credits recognized (costs not recognized) due to the effects of regulation | 2,122 | (1,330 | ) | — | — | ||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | 14,744 | $ | 14,848 | $ | (113 | ) | $ | 34 | ||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
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 nine months ended Sept. 30, 2014 and 2013 were as follows: | ||||||||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2014 | Three Months Ended Sept. 30, 2013 | ||||||||
Accumulated other comprehensive loss at July 1 | $ | (1,076 | ) | $ | (1,247 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 44 | 44 | ||||||||
Net current period other comprehensive income | 44 | 44 | ||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (1,032 | ) | $ | (1,203 | ) | ||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2014 | Nine Months Ended Sept. 30, 2013 | ||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (1,161 | ) | $ | (1,332 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 129 | 129 | ||||||||
Net current period other comprehensive income | 129 | 129 | ||||||||
Accumulated other comprehensive loss at Sept. 30 | $ | (1,032 | ) | $ | (1,203 | ) | ||||
Reclassifications out of Accumulated Other Comprehensive Loss | ' | |||||||||
Reclassifications from accumulated other comprehensive loss for the three and nine months ended Sept. 30, 2014 and 2013 were as follows: | ||||||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Three Months Ended Sept. 30, 2014 | Three Months Ended Sept. 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 68 | (a) | $ | 68 | (a) | ||||
Total, pre-tax | 68 | 68 | ||||||||
Tax benefit | (24 | ) | (24 | ) | ||||||
Total amounts reclassified, net of tax | $ | 44 | $ | 44 | ||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Nine Months Ended Sept. 30, 2014 | Nine Months Ended Sept. 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 201 | (a) | $ | 201 | (a) | ||||
Total, pre-tax | 201 | 201 | ||||||||
Tax benefit | (72 | ) | (72 | ) | ||||||
Total amounts reclassified, net of tax | $ | 129 | $ | 129 | ||||||
(a) | Included in interest charges. |
Selected_Balance_Sheet_Data_De
Selected Balance Sheet Data (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net | ' | ' |
Accounts receivable | $96,110 | $76,426 |
Less allowance for bad debts | -5,794 | -5,475 |
Accounts receivable, net | $90,316 | $70,951 |
Selected_Balance_Sheet_Data_Ba
Selected Balance Sheet Data Balance Sheet Related Disclosures, Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | $43,395 | $37,138 |
Materials and supplies | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | 23,770 | 21,600 |
Fuel | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | $19,625 | $15,538 |
Selected_Balance_Sheet_Data_Ba1
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $5,465,081 | $5,102,721 |
Less accumulated depreciation | -1,848,891 | -1,818,691 |
Property, plant and equipment, net | 3,616,190 | 3,284,030 |
Electric plant | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 5,200,187 | 4,714,398 |
Construction work in progress | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $264,894 | $388,323 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 |
Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | State Jurisdiction (Texas) | |||
Tax Audits [Abstract] | ' | ' | ' | ' | ' |
Year(s) no longer subject to audit as statute of limitations has expired | ' | ' | ' | '2008 | ' |
Earliest year subject to examination | ' | ' | ' | '2009 | '2009 |
Year(s) under examination | ' | ' | '2010 and 2011 | ' | ' |
Year of carryback claim under examination | ' | ' | '2009 | ' | ' |
Potential Tax Adjustments | ' | ' | ' | $10,000,000 | ' |
Unrecognized Tax Benefits [Abstract] | ' | ' | ' | ' | ' |
Unrecognized tax benefit - Permanent tax positions | 400,000 | 1,200,000 | ' | ' | ' |
Unrecognized tax benefit - Temporary tax positions | 2,900,000 | 2,900,000 | ' | ' | ' |
Total unrecognized tax benefit | 3,300,000 | 4,100,000 | ' | ' | ' |
NOL and tax credit carryforwards | -2,400,000 | -2,400,000 | ' | ' | ' |
Amounts accrued for penalties related to unrecognized tax benefits | $0 | $0 | ' | ' | ' |
Rate_Matters_Details
Rate Matters (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Apr. 30, 2012 | Oct. 31, 2013 | Aug. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Sep. 30, 2014 | Jul. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Aug. 31, 2013 | Oct. 20, 2014 | |
SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | SPS | Subsequent Event | ||||||
PUCT Proceeding - Texas 2014 Electric Rate Case | PUCT Proceeding - Texas 2014 Electric Rate Case | PUCT Proceeding - Texas 2014 Electric Rate Case | PUCT Proceeding - Texas 2014 Electric Rate Case | PUCT Proceeding - Transmission Cost Recovery Factor (TCRF) Rider | PUCT Proceeding - Transmission Cost Recovery Factor (TCRF) Rider | NMPRC Proceeding - New Mexico 2014 Electric Rate Case | NMPRC Proceeding - New Mexico 2014 Electric Rate Case | FERC Proceeding - Wholesale Electric Rate Complaints | FERC Proceeding - Wholesale Electric Rate Complaints | FERC Proceeding - FERC Orders | FERC Proceeding - FERC Orders | FERC Proceeding - FERC Orders | FERC Proceeding - FERC Orders | FERC Proceeding - FERC Orders, Settlement Impact Through May 31, 2015 | FERC Proceeding - FERC Orders, Settlement Impact Effective June 1, 2015 | FERC Proceeding - Request for Waiver of SPP Tariff | Public Utility Commission of Texas (PUCT) | New Mexico Public Regulation Commission (NMPRC) | Federal Energy Regulatory Commission (FERC) | Federal Energy Regulatory Commission (FERC) | SPS | ||||||
Factor | PUCT Proceeding - Transmission Cost Recovery Factor (TCRF) Rider | NMPRC Proceeding - New Mexico 2014 Electric Rate Case | FERC Proceeding - Wholesale Electric Rate Complaints | FERC Proceeding - FERC Orders | FERC Proceeding - Wholesale Electric Rate Complaints | ||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Net Amount | ' | ' | ' | ' | ' | ' | ' | $52,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Percentage | ' | ' | ' | ' | ' | ' | ' | 5.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Amended, Net Amount | ' | ' | ' | ' | ' | ' | 48,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Return on Equity, Percentage | ' | ' | ' | ' | ' | ' | ' | 10.40% | ' | ' | ' | ' | 10.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Base, Amount | ' | ' | ' | ' | ' | ' | ' | 1,270,000,000 | ' | ' | ' | ' | 479,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Equity Capital Structure, Percentage | ' | ' | ' | ' | ' | ' | ' | 53.89% | ' | ' | ' | ' | 53.89% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Portion of requested rate increase (decrease) related to depreciation expense | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Settlement Agreement, Requested Rate Increase (Decrease), Amount | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Settlement Agreement, Requested Rate Increase (Decrease), Percentage | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Revenue recognized through surcharge | ' | ' | ' | ' | ' | ' | ' | ' | 13,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Settlement Agreement, Requested Return on Equity, Percentage | ' | ' | ' | ' | ' | 9.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Amount | ' | ' | ' | ' | ' | ' | ' | 81,500,000 | ' | ' | ' | ' | 45,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to requested rate increase (decrease) due to updated information | ' | ' | ' | ' | ' | ' | -4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | ' | ' | ' | ' | ' | ' | 76,900,000 | ' | ' | ' | ' | 32,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to revised rate increase (decrease) request due to depreciation | ' | ' | ' | ' | ' | -16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to revised rate increase (decrease) request due to allocators for wholesale load reduction | ' | ' | ' | ' | ' | -12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to revised rate increase (decrease) request due to revised amortizations | ' | ' | ' | ' | ' | -9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to revised rate increase (decrease) request due to non-specified settlement adjustments | ' | ' | ' | ' | ' | -2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested increase (decrease) to rider revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Approved increase (decrease) to rider revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' |
Public Utilities, Interim Rate Refund, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Return on Equity, Amended, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, portion of revised rate increase (decrease) related to base and fuel revenue. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, portion of revised rate increase (decrease) related to rider revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, portion of revised rate increase (decrease) related to other costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Approved Rate Increase (Decrease), Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,100,000 | ' | ' | ' |
Public Utilities, portion of approved rate increase (decrease) to be recovered in base revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,700,000 | ' | ' | ' |
Public Utilities, portion of approved rate increase (decrease) to be recovered through rider revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | ' | ' | ' |
Public Utilities, Approved Return on Equity, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.96% | ' | ' | ' |
Public Utilities, Approved Equity Capital Structure, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53.89% | ' | ' | ' |
Public Utilities, Base return on equity charged to customers through production formula rates, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Base return on equity charged to customers through transmission formula rates, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.77% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Base return on equity requested by customers to be charged through production formula rates, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.61% |
Public Utilities, Base return on equity requested by customers to be charged through transmission formula rates, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.11% |
Public Utilities, Number of steps to be used in discounted cash flow analysis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Public Utilities, Number of prior complaints in a regulatory proceeding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Number of components included in regulatory proceeding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of coincident peaks used as demand allocator, revised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Number of coincident peaks used as demand allocator, original | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' |
Other Liabilities, Current | 81,868,000 | ' | 81,868,000 | ' | 75,355,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Current year increase (decrease) to pre-tax earnings resulting from regulatory proceedings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Annual increase (decrease) in revenues resulting from regulatory proceeding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,000,000 | -4,000,000 | ' | ' | ' | ' | ' | ' |
Electric fuel and purchased power | $315,524,000 | $293,831,000 | $918,874,000 | $814,077,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,900,000 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies, Purchased Power Agreements (Details) (Independent Power Producing Entities) | 3 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
MW | MW | |
Independent Power Producing Entities | ' | ' |
Purchased Power Agreements [Abstract] | ' | ' |
Generating capacity (in MW) | 827 | 827 |
Purchase Power Agreement Duration, Maximum (year) | '2033 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies Commitments and Contingencies, Guarantees and Indemnifications (Details) (Indemnification Agreement [Member], Obligations Under Sale Of Sharyland, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Indemnification Agreement [Member] | Obligations Under Sale Of Sharyland | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Guarantee issued and outstanding | $37.10 | $37.10 |
Sharyland Indemnification Obligation Duration (year) | '2014 | ' |
Guarantor Obligations, Current Carrying Value | $0.40 | $0.40 |
Commitments_and_Contingencies_2
Commitments and Contingencies, Environmental Contingencies - Unrecorded Unconditional Purchase Obligation (Details) (USD $) | Jun. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Greenhouse Gas New Source Performance Standard for Modified and Reconstructed Power Plants | Cross-State Air Pollution Rule | Cross-State Air Pollution Rule | Capital Commitments |
MW | Issue | Cross-State Air Pollution Rule | ||
Environmental Requirements [Abstract] | ' | ' | ' | ' |
Percentage of a comparable new plant's capital cost which would have to be exceeded to consider a project as a reconstruction under the proposed GHG NSPS for Modified and Reconstructed Power Plants (in hundredths) | 50.00% | ' | ' | ' |
Number of issues on which the D.C. Circuit overturned the CSAPR | ' | ' | 2 | ' |
Generating capacity (in MW) | ' | 700 | ' | ' |
Liability for estimated cost to comply with regulation | ' | ' | ' | $7 |
Commitments_and_Contingencies_3
Commitments and Contingencies, Legal Contingencies (Details) (SPS, Exelon Wind Complaint [Member], USD $) | Sep. 30, 2014 |
Site | |
Dispute | |
Legal Contingencies [Abstract] | ' |
Accrual for legal contingency | $0 |
Number of main areas of dispute | 2 |
Number of wind facilities | 12 |
Public Utility Commission of Texas (PUCT) | ' |
Legal Contingencies [Abstract] | ' |
Number of wind facilities | 6 |
Borrowings_and_Other_Financing2
Borrowings and Other Financing Instruments, Short-Term Borrowings (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ' | ' |
Amount outstanding at period end | $0 | $84,000,000 |
Money Pool | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Borrowing limit | 100,000,000 | 100,000,000 |
Amount outstanding at period end | 0 | 38,000,000 |
Average amount outstanding | 1,000,000 | 46,000,000 |
Maximum amount outstanding | 22,000,000 | 100,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.26% | 0.15% |
Weighted average interest rate at period end (percentage) | ' | 0.25% |
Commercial Paper | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Borrowing limit | 300,000,000 | 300,000,000 |
Amount outstanding at period end | 0 | 84,000,000 |
Average amount outstanding | 43,000,000 | 32,000,000 |
Maximum amount outstanding | $106,000,000 | $140,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.26% | 0.30% |
Weighted average interest rate at period end (percentage) | ' | 0.27% |
Borrowings_and_Other_Financing3
Borrowings and Other Financing Instruments, Letters of Credit (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Letter of Credit | Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Term of letters of credit (in years) | ' | ' | ' | ' | '1 year |
Amount outstanding at period end | $0 | $84,000 | $41,000 | $25,500 | ' |
Borrowings_and_Other_Financing4
Borrowings and Other Financing Instruments, Credit Facility (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2014 | |
Credit Facility | |||
Line of Credit Facility [Line Items] | ' | ' | |
Credit Facility | ' | $300,000,000 | [1] |
Drawn | ' | 41,000,000 | [2] |
Available | ' | 259,000,000 | |
Direct advances on the credit facility outstanding | $0 | $0 | |
[1] | Credit facility has been amended to expire in October 2019. | ||
[2] | Includes outstanding letters of credit. |
Borrowings_and_Other_Financing5
Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Amended Credit Agreements (Details) (Credit Facility, Subsequent Event, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Line of Credit Facility [Line Items] | ' |
Amended Credit Agreements, Commencement Date | 14-Oct-14 |
Amended Term (in years) | '5 years |
Amended Credit Facility, Maximum Borrowing Limit | $400 |
Original Credit Facility, Maximum Borrowing Limit | $300 |
Number Of Additional Periods The Revolving Termination Date On The Credit Facility Can Be Extended, Subject To Majority Bank Group Approval | 2 |
Term Of Each Additional Period The Revolving Termination Date Can Be Extended, Subject To Majority Bank Group Approval (in years) | '1 year |
Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.08% |
Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.28% |
Eurodollar | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Borrowing Margin Based On Long-Term Credit Ratings (percentage) | 0.88% |
Eurodollar | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Borrowing Margin Based On Long-Term Credit Ratings (percentage) | 1.75% |
Borrowings_and_Other_Financing6
Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Long-Term Borrowings and Other Financing Instruments (Details) (First Mortgage Bonds, USD $) | 1 Months Ended |
Jun. 30, 2014 | |
Series No. 3 Due June 15, 2024 | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | $150,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.30% |
Debt Instrument, Maturity Date | 15-Jun-24 |
Issued Collateral on Series G Senior Note Due Dec. 1, 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | $250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 8.75% |
Debt Instrument, Maturity Date | 1-Dec-18 |
Previously Issued Series G Senior Note Due Dec. 1, 2018 | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Interest Rate, Stated Percentage | 8.75% |
Debt Instrument, Maturity Date | 1-Dec-18 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | MWh | MWh |
Interest Rate Swap | ' | ' |
Interest Rate Derivatives [Abstract] | ' | ' |
Amount of accumulated other comprehensive losses related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | -0.2 | ' |
Electric Commodity (in megawatt hours) | ' | ' |
Gross Notional Amounts of Commodity FTRs [Abstract] | ' | ' |
Notional Amount | 10,880,000 | 5,989,000 |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
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 |
Cash Flow Hedging | Interest Rate Contract | ' | ' | ' | ' |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss Regulatory Assets and Liabilities and Income [Abstract] | ' | ' | ' | ' |
Pre-tax losses reclassified into income during the period from accumulated other comprehensive loss | -100,000 | -100,000 | -200,000 | -200,000 |
Other Derivative Instruments | Electric Commodity Contract | ' | ' | ' | ' |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss Regulatory Assets and Liabilities and Income [Abstract] | ' | ' | ' | ' |
Pre-tax fair value losses recognized during the period in regulatory assets and liabilities | -1,200,000 | ' | -3,600,000 | ' |
Pre-tax losses reclassified into income during the period from regulatory assets and liabilities | ($1,200,000) | ' | ($300,000) | ' |
Fair_Value_of_Financial_Assets4
Fair Value of Financial Assets and Liabilities Fair Value of Financial Assets and Liabilities, Counterparty Credit Risk (Details) (Credit Concentration Risk, USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | Counterparty |
Consideration of Credit Risk and Concentrations [Abstract] | ' |
Number of most significant counterparties for wholesale, trading and non-trading commodity and transmission activities with credit exposure | 8 |
Investment Grade Ratings from Standard & Poor's, Moody's, or Fitch Ratings | ' |
Consideration of Credit Risk and Concentrations [Abstract] | ' |
Number of most significant counterparties for wholesale, trading and non-trading commodity and transmission activities with credit exposure | 2 |
Wholesale, trading and non-trading commodity and transmission activity credit exposure for the most significant counterparties | 19.7 |
Percentage of wholesale, trading and non-trading commodity and transmission activity credit exposure for the most significant counterparties (in hundredths) | 17.00% |
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 and transmission activities with credit exposure | 6 |
Wholesale, trading and non-trading commodity and transmission activity credit exposure for the most significant counterparties | 58.1 |
Percentage of wholesale, trading and non-trading commodity and transmission activity credit exposure for the most significant counterparties (in hundredths) | 50.00% |
Fair_Value_of_Financial_Assets5
Fair Value of Financial Assets and Liabilities, Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | $0 | $0 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||
Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 30,132,000 | 17,826,000 | ||
Other Noncurrent Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 35,137,000 | 41,056,000 | ||
Other Current Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 3,565,000 | 3,583,000 | ||
Other Noncurrent Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 31,534,000 | 34,207,000 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 22,240,000 | 9,933,000 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 22,240,000 | 9,933,000 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | ' | ' | ||
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 | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 37,826,000 | 16,420,000 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 37,826,000 | 16,420,000 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 15,586,000 | 6,487,000 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 15,586,000 | 6,487,000 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 37,826,000 | 16,420,000 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 37,826,000 | 16,420,000 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 15,586,000 | 6,487,000 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Liabilities | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 15,586,000 | 6,487,000 | ||
Fair Value Measured on a Recurring Basis | Counterparty Netting | Other Current Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | -15,586,000 | [1] | -6,487,000 | [2] |
Fair Value Measured on a Recurring Basis | Counterparty Netting | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | -15,586,000 | [1] | -6,487,000 | [2] |
Fair Value Measured on a Recurring Basis | Counterparty Netting | Other Current Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | -15,586,000 | [1] | -6,487,000 | [2] |
Fair Value Measured on a Recurring Basis | Counterparty Netting | Other Current Liabilities | Other Derivative Instruments | Electric Commodity Contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | -15,586,000 | [1] | -6,487,000 | [2] |
Fair Value, Measurements, Nonrecurring | Other Current Assets | Purchased Power Agreements | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 7,892,000 | [3] | 7,893,000 | [4] |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Assets | Purchased Power Agreements | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 35,137,000 | [3] | 41,056,000 | [4] |
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | Purchased Power Agreements | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 3,565,000 | [3] | 3,583,000 | [4] |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | Purchased Power Agreements | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | $31,534,000 | [3] | $34,207,000 | [4] |
[1] | SPS nets derivative instruments and related collateral in its 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 Sept. 30, 2014. At Sept. 30, 2014, 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] | SPS nets derivative instruments and related collateral in its 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, 2013. At Dec. 31, 2013, 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. | |||
[3] | In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, SPS 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 in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, SPS 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, SPS 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 in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006, SPS 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_Assets6
Fair Value of Financial Assets and Liabilities Fair Value of Financial Assets and Liabilities, Changes in Level 3 Commodity Derivatives (Details) (Commodity Contract, USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Commodity Contract | ' | ' | ' | ' |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $33,942,000 | ' | $9,933,000 | ' |
Purchases | 4,429,000 | ' | 43,904,000 | ' |
Settlements | -8,346,000 | ' | -23,001,000 | ' |
Gains (losses) recognized as regulatory assets and liabilities | -7,785,000 | ' | -8,596,000 | ' |
Balance at end of period | 22,240,000 | 0 | 22,240,000 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | $0 | $0 | $0 | $0 |
Fair_Value_of_Financial_Assets7
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Long-term debt, including current portion | $1,349,604 | $1,199,865 |
Fair Value | ' | ' |
Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Long-term debt, including current portion | $1,524,990 | $1,307,035 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Interest income | $73 | $48 | $313 | $308 |
Other nonoperating income | 1 | 1 | 1 | 6 |
Insurance policy expense | -8 | -164 | -336 | -372 |
Other income (expense), net | $66 | ($115) | ($22) | ($58) |
Benefit_Plans_and_Other_Postre2
Benefit Plans and Other Postretirement Benefits (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Benefits | ' | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ' | ' | ' | ' | ' |
Service cost | ' | $2,296,000 | $2,404,000 | $6,888,000 | $7,211,000 |
Interest cost | ' | 5,111,000 | 4,477,000 | 15,333,000 | 13,431,000 |
Expected return on plan assets | ' | -6,545,000 | -5,993,000 | -19,635,000 | -17,978,000 |
Amortization of prior service cost (credit) | ' | 14,000 | 218,000 | 41,000 | 653,000 |
Amortization of net loss (gain) | ' | 3,332,000 | 4,287,000 | 9,995,000 | 12,861,000 |
Net periodic benefit cost (credit) | ' | 4,208,000 | 5,393,000 | 12,622,000 | 16,178,000 |
Credits recognized (costs not recognized) due to the effects of regulation | ' | 707,000 | 62,000 | 2,122,000 | -1,330,000 |
Net benefit cost (credit) recognized for financial reporting | ' | 4,915,000 | 5,455,000 | 14,744,000 | 14,848,000 |
Total contributions to the pension plans during the period | 4,400,000 | ' | ' | ' | ' |
Postretirement Health Care Benefits | ' | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ' | ' | ' | ' | ' |
Service cost | ' | 312,000 | 342,000 | 935,000 | 1,026,000 |
Interest cost | ' | 643,000 | 588,000 | 1,929,000 | 1,764,000 |
Expected return on plan assets | ' | -812,000 | -796,000 | -2,435,000 | -2,388,000 |
Amortization of prior service cost (credit) | ' | -100,000 | -121,000 | -301,000 | -363,000 |
Amortization of net loss (gain) | ' | -80,000 | -2,000 | -241,000 | -5,000 |
Net periodic benefit cost (credit) | ' | -37,000 | 11,000 | -113,000 | 34,000 |
Credits recognized (costs not recognized) due to the effects of regulation | ' | 0 | 0 | 0 | 0 |
Net benefit cost (credit) recognized for financial reporting | ' | -37,000 | 11,000 | -113,000 | 34,000 |
Xcel Energy Inc. | Pension Benefits | ' | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ' | ' | ' | ' | ' |
Total contributions to the pension plans during the period | $130,000,000 | ' | ' | ' | ' |
Number of Xcel Energy's pension plans to which contributions were made | 3 | ' | ' | ' | ' |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Accumulated other comprehensive loss at beginning of period | ' | ' | ($1,161) | ' | ||||
Accumulated other comprehensive loss at end of period | -1,032 | ' | -1,032 | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total, pre-tax | -103,349 | -55,183 | -176,294 | -118,992 | ||||
Tax benefit | 36,412 | 20,146 | 62,587 | 43,165 | ||||
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 | -1,076 | -1,247 | -1,161 | -1,332 | ||||
Losses reclassified from net accumulated other comprehensive loss | 44 | 44 | 129 | 129 | ||||
Net current period other comprehensive income | 44 | 44 | 129 | 129 | ||||
Accumulated other comprehensive loss at end of period | -1,032 | -1,203 | -1,032 | -1,203 | ||||
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 | 68 | 68 | 201 | 201 | ||||
Tax benefit | -24 | -24 | -72 | -72 | ||||
Total, net of tax | 44 | 44 | 129 | 129 | ||||
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 | $68 | [1] | $68 | [1] | $201 | [1] | $201 | [1] |
[1] | Included in interest charges. |