Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | SOUTHWESTERN PUBLIC SERVICE CO | |
Entity Central Index Key | 0000092521 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity Tax Identification Number | 75-0575400 | |
Entity Incorporation, State or Country Code | NM | |
Entity Address, Address Line One | 790 South Buchanan Street | |
Entity Address, City or Town | Amarillo | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79101 | |
City Area Code | (303) | |
Local Phone Number | 571-7511 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100 | |
Entity File Number | 001-03789 |
STATEMENTS OF INCOME (UNAUDITED
STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating revenues | ||
Operating revenues | $ 508 | $ 477 |
Operating expenses | ||
Electric fuel and purchased power | 245 | 237 |
Operating and maintenance expenses | 80 | 72 |
Demand side management expenses | 6 | 5 |
Depreciation and amortization | 91 | 78 |
Taxes (other than income taxes) | 25 | 25 |
Total operating expenses | 447 | 417 |
Operating income | 61 | 60 |
Allowance for funds used during construction — equity | 1 | 0 |
Interest charges and financing costs | ||
Interest charges — includes other financing costs of $1 | 34 | 29 |
Allowance for funds used during construction — debt | (1) | 0 |
Total interest charges and financing costs | 33 | 29 |
Income before income taxes | 29 | 31 |
Income tax benefit | (25) | (21) |
Net income | $ 54 | $ 52 |
STATEMENTS OF INCOME (UNAUDIT_2
STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest charges and financing costs | ||
Debt Related Commitment Fees and Debt Issuance Costs | $ 1 | $ 1 |
STATEMENTS OF CASH FLOWS (UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net income | $ 54 | $ 52 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 92 | 79 |
Deferred income taxes | (40) | (2) |
Allowance for equity funds used during construction | (1) | 0 |
Provision for bad debts | 2 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 23 | (26) |
Accrued unbilled revenues | 3 | 0 |
Inventories | (14) | (6) |
Prepayments and other | 4 | (8) |
Accounts payable | (30) | 0 |
Net regulatory assets and liabilities | 108 | 3 |
Other current liabilities | (3) | (3) |
Pension and other employee benefit obligations | (1) | 1 |
Other, net | (3) | (3) |
Net cash provided by operating activities | 188 | 89 |
Investing activities | ||
Utility capital/construction expenditures | (170) | (123) |
Net cash used in investing activities | (170) | (123) |
Financing activities | ||
Repayments of short-term borrowings, net | 44 | 75 |
Borrowings under utility money pool arrangement | 5 | 202 |
Repayments under utility money pool arrangement | 0 | (193) |
Capital contributions from parent | 0 | 8 |
Dividends paid to parent | (66) | (58) |
Net cash (used in) provided by financing activities | (17) | 34 |
Net change in cash, cash equivalents and restricted cash | 1 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 2 | 1 |
Cash, cash equivalents and restricted cash at end of period | 3 | 1 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (22) | (21) |
Cash (paid) received for income taxes, net | (11) | 3 |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Accrued property, plant and equipment additions | 46 | 38 |
Inventory transfers to property, plant and equipment | 9 | 4 |
Allowance for equity funds used during construction | 1 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 3 | $ 1 |
BALANCE SHEETS (UNAUDITED)
BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 3 | $ 2 |
Accounts receivable, net | 140 | 167 |
Accounts receivable from affiliates | 15 | 15 |
Accrued unbilled revenues | 143 | 140 |
Inventories | 66 | 61 |
Regulatory assets | 143 | 217 |
Derivative instruments | 26 | 122 |
Prepaid taxes | 4 | 5 |
Prepayments and other | 65 | 68 |
Total current assets | 605 | 797 |
Property, plant and equipment, net | 8,210 | 8,129 |
Other assets | ||
Regulatory assets | 344 | 359 |
Derivative instruments | 2 | 3 |
Operating lease right-of-use assets | 426 | 434 |
Other | 28 | 26 |
Total other assets | 800 | 822 |
Total assets | 9,615 | 9,748 |
Current liabilities | ||
Short-term debt | 78 | 34 |
Borrowings under utility money pool arrangement | 5 | 0 |
Accounts payable | 170 | 209 |
Accounts payable to affiliates | 18 | 23 |
Regulatory liabilities | 67 | 148 |
Taxes accrued | 47 | 61 |
Accrued interest | 42 | 31 |
Dividends payable to parent | 61 | 61 |
Derivative instruments | 4 | 4 |
Operating lease liabilities | 31 | 31 |
Other | 58 | 58 |
Total current liabilities | 581 | 660 |
Deferred credits and other liabilities | ||
Deferred income taxes | 702 | 739 |
Regulatory liabilities | 720 | 715 |
Asset retirement obligations | 148 | 147 |
Derivative instruments | 1 | 2 |
Pension and employee benefit obligations | 11 | 12 |
Operating lease liabilities | 395 | 403 |
Other | 8 | 9 |
Total deferred credits and other liabilities | 1,985 | 2,027 |
Capitalization | ||
Long-term debt | 3,211 | 3,211 |
Common stock — 200 shares authorized of $1.00 par value; 100 shares outstanding at March 31, 2023 and Dec. 31, 2022, respectively | 0 | 0 |
Additional paid in capital | 3,311 | 3,311 |
Retained earnings | 528 | 540 |
Accumulated other comprehensive loss | (1) | (1) |
Total common stockholder's equity | 3,838 | 3,850 |
Total liabilities and equity | $ 9,615 | $ 9,748 |
BALANCE SHEETS (UNAUDITED) (Par
BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200 | 200 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares, Outstanding | 100 | 100 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2021 | 100 | ||||
Beginning balance at Dec. 31, 2021 | $ 3,603 | $ 0 | $ 3,091 | $ 513 | $ (1) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 52 | 52 | |||
Dividends declared to parent | (53) | (53) | |||
Contributions of capital by parent | 8 | 8 | |||
Ending balance (in shares) at Mar. 31, 2022 | 100 | ||||
Ending balance at Mar. 31, 2022 | $ 3,610 | $ 0 | 3,099 | 512 | (1) |
Beginning balance (in shares) at Dec. 31, 2022 | 100 | 100 | |||
Beginning balance at Dec. 31, 2022 | $ 3,850 | $ 0 | 3,311 | 540 | (1) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 54 | 54 | |||
Dividends declared to parent | $ (66) | (66) | |||
Ending balance (in shares) at Mar. 31, 2023 | 100 | 100 | |||
Ending balance at Mar. 31, 2023 | $ 3,838 | $ 0 | $ 3,311 | $ 528 | $ (1) |
Legal
Legal $ in Millions | Mar. 31, 2023 USD ($) |
Settled Litigation | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | $ 50 |
Management's Opinion
Management's Opinion | 3 Months Ended |
Mar. 31, 2023 | |
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 GAAP, the financial position of SPS as of March 31, 2023 and Dec. 31, 2022; the results of SPS’ operations, including the components of net income and changes in stockholder’s equity for the three months ended March 31, 2023 and 2022; and SPS’ cash flows for the three months ended March 31, 2023 and 2022. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2023 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, 2022 balance sheet information has been derived from the audited 2022 financial statements included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2022. 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, 2022, filed with the SEC on Feb. 23, 2022. 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 Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
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, 2022 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | As of March 31, 2023, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on SPS’ financial statements. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | (Millions of Dollars) March 31, 2023 Dec. 31, 2022 Accounts receivable, net Accounts receivable $ 153 $ 180 Less allowance for bad debts (13) (13) Accounts receivable, net $ 140 $ 167 (Millions of Dollars) March 31, 2023 Dec. 31, 2022 Inventories Materials and supplies $ 47 $ 42 Fuel 19 19 Total inventories $ 66 $ 61 (Millions of Dollars) March 31, 2023 Dec. 31, 2022 Property, plant and equipment, net Electric plant $ 10,254 $ 10,182 Plant to be retired (a) 260 266 CWIP 239 167 Total property, plant and equipment 10,753 10,615 Less accumulated depreciation (2,543) (2,486) Property, plant and equipment, net $ 8,210 $ 8,129 |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Short-Term Borrowings SPS meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility and the money pool. Money Pool — Xcel Energy and its utility subsidiaries have established a money pool arrangement that allows for short-term investments in and borrowings between the utility subsidiaries. Xcel Energy may make investments in the utility subsidiaries at market-based interest rates; however, the money pool arrangement does not allow the utility subsidiaries to make investments in Xcel Energy. Money pool borrowings: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 100 $ 100 Amount outstanding at period end 5 — Average amount outstanding — 35 Maximum amount outstanding 5 100 Weighted average interest rate, computed on a daily basis 4.59 % 0.44 % Weighted average interest rate at period end 4.59 N/A Commercial Paper — Commercial paper outstanding: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 500 $ 500 Amount outstanding at period end 78 34 Average amount outstanding 88 100 Maximum amount outstanding 118 324 Weighted average interest rate, computed on a daily basis 4.86 % 0.79 % Weighted average interest rate at period end 5.58 4.55 Letters of Credit — SPS uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both March 31, 2023 and Dec. 31, 2022, there w ere $2 million of l etters of credit outstanding under the credit facility. Amounts approximate their fair value and are subject to fees. Revolving Credit Facility — In order to issue its commercial paper, SPS must have a revolving credit facility equal or greater than the commercial paper borrowing limit and cannot issue commercial paper exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. SPS has the right to request an extension of the revolving credit facility termination date for two additional one-year periods. All extension requests are subject to majority bank group approval. As of March 31, 2023, SPS had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 500 $ 80 $ 420 (a) Expires in September 2027. (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 ha d no d irect advances on the credit facility outstanding as of March 31, 2023 and Dec. 31, 2022. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue is classified by the type of goods/services rendered and market/customer type. SPS’ operating revenues consisted of the following: Three Months Ended March 31 (Millions of Dollars) 2023 2022 Major revenue types Revenue from contracts with customers: Residential $ 101 $ 97 Commercial and Industrial 267 222 Other 12 8 Total retail 380 327 Wholesale 45 69 Transmission 74 72 Other — 3 Total revenue from contracts with customers 499 471 Alternative revenue and other 9 6 Total revenues $ 508 $ 477 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Reconciliation between the statutory rate and ETR: Three Months Ended March 31 2023 2022 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 2.3 2.5 Increases (decreases): Wind PTCs (a) (105.5) (87.2) Plant regulatory differences (b) (3.7) (4.0) Amortization of excess nonplant deferred taxes 0.3 (1.1) Other (net) (0.6) 1.1 Effective income tax rate (86.2) % (67.7) % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value Measurements Derivative Activities and 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 utility commodity prices. Interest Rate Derivatives — SPS enters into contracts that effectively fix the interest rate on a specified principal amount of a hypothetical future debt issuance. These financial swaps net settle based on changes in a specified benchmark interest rate, acting as a hedge of changes in market interest rates that will impact specified anticipated debt issuances. These derivative instruments are designated as cash flow hedges for accounting purposes, with changes in fair value prior to occurrence of the hedged transactions recorded as other comprehensive loss. As of March 31, 2023, accumulated other comprehensive loss related to interest rate derivatives included immaterial net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of March 31, 2023, SPS had no unsettled interest rate derivatives. Wholesale and Commodity Trading — SPS conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy and energy-related instruments, including derivatives. SPS is allowed to conduct these activities within guidelines and limitations as approved by its risk management committee, comprised of management personnel not directly involved in the activities governed by this policy. Results of derivative instrument transactions entered into for trading purposes are presented in the statements of income as electric revenues, net of any sharing with customers. These activities are not intended to mitigate commodity price risk associated with regulated electric operations. Sharing of these margins is determined through state regulatory proceedings as well as the operation of the FERC-approved joint operating agreement. Commodity Derivatives — SPS enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric utility operations. This could include the purchase or sale of energy or energy-related products and FTRs. The most significant derivative positions outstanding at March 31, 2023 for this purpose relate to FTR instruments administered by SPP. These instruments are intended to offset the impacts of transmission system congestion. Higher congestion costs in recent years have led to an increase in the fair value of FTRs. Settlements of FTRs are shared with electric customers through fuel and purchased energy cost-recovery mechanisms. When SPS enters into derivative instruments that mitigate commodity price risk on behalf of electric customers, the instruments are not typically designated as qualifying hedging transactions. The classification of unrealized losses or gains on these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms. Gross notional amounts of FTRs: Amounts in Millions (a) March 31, 2023 Dec. 31, 2022 Megawatt hours of electricity 3 8 (a) Not reflective of net positions in the underlying commodities. Consideration of Credit Risk and Concentrations — SPS continuously monitors the creditworthiness of counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented on the balance sheets. SPS’ most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities. At March 31, 2023, four of the ten most significant counterparties for these activities, comprising $10 million, or 31%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Five of the ten most significant counterparties, comprising $23 million , or 69%, of this credit exposure, were not rated by external ratings agencies, but based on SPS’ internal analysis, had credit quality consistent with investment grade. One of these significant counterparties, comprising an immaterial amount or less than 1% of this credit exposure, had credit quality less than investment grade, based on internal analysis. Nine of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities. Recurring Derivative Fair Value Measurements Impact of derivative activity: Pre-Tax Fair Value (Losses) Recognized During the Period in: (Millions of Dollars) Regulatory Assets and Liabilities Three Months Ended March 31, 2023 Other derivative instruments Electric commodity $ (75) Total $ (75) Three Months Ended March 31, 2022 Other derivative instruments Electric commodity $ 1 Total $ 1 Pre-Tax Losses Reclassified into Income During the Period from: (Millions of Dollars) Regulatory Assets and Liabilities Three Months Ended March 31, 2023 Other derivative instruments Electric commodity 68 (a) Total $ 68 Three Months Ended March 31, 2022 Other derivative instruments Electric commodity 12 (a) Total $ 12 (a) Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value. SPS had no derivative instruments designated as fair value hedges during the three months ended March 31, 2023 and 2022. Derivative assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2023 Dec. 31, 2022 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Electric commodity $ — $ — $ 23 $ 23 $ — $ 23 $ — $ — $ 119 $ 119 $ — $ 119 Total current derivative assets $ — $ — $ 23 $ 23 $ — 23 $ — $ — $ 119 $ 119 $ — 119 PPAs (b) 3 3 Current derivative instruments $ 26 $ 122 Noncurrent derivative assets PPAs (b) 2 3 Noncurrent derivative instruments $ 2 $ 3 Current derivative liabilities PPAs (b) 4 4 Current derivative instruments $ 4 $ 4 Noncurrent derivative liabilities PPAs (b) 1 2 Noncurrent derivative instruments $ 1 $ 2 (a) SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At March 31, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) SPS currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. Changes in Level 3 commodity derivatives: Three Months Ended March 31 (Millions of Dollars) 2023 2022 Balance at Jan. 1 $ 119 $ 27 Purchases (a) 6 4 Settlements (a) (16) (33) Net transactions recorded during the period: Net (losses) gains recognized as regulatory assets and liabilities (a) (86) 34 Balance at March 31 $ 23 $ 32 (a) Relates primarily to FTR instruments administered by SPP. Fair Value of Long-Term Debt As of March 31, 2023, other financial instruments for which the carrying amount did not equal fair value: March 31, 2023 Dec. 31, 2022 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 3,211 $ 2,770 $ 3,211 $ 2,674 |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Components of Net Periodic Benefit Cost Three Months Ended March 31 2023 2022 (Millions of Dollars) Pension Benefits Service cost $ 2 $ 2 Interest cost (a) 6 4 Expected return on plan assets (a) (8) (8) Amortization of net loss (a) — 3 Net periodic benefit cost $ — $ 1 Effects of regulation 1 1 Net benefit cost recognized for financial reporting $ 1 $ 2 (a) The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the statements of income or capitalized on the balance sheets as a regulatory asset. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Legal SPS is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on SPS’ financial statements. Legal fees are generally expensed as incurred. Other Litigation — In 2019, SPS and Xcel Energy Services, Inc. were served with a lawsuit related to a traffic accident that resulted in two fatalities in New Mexico. A loss contingency of approximately $50 million was recorded as of Sept. 30, 2022 within Other current liabilities. In July 2022, a confidential settlement was reached. No impact to earnings has or is expected to occur, as the amounts are expected to be reimbursed by SPS’ insurers. An offsetting asset has been recorded to reflect the reimbursement within Prepayments and other current assets. Rate Matters and Other SPS is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the financial statements. SPP OATT Upgrade Costs — Costs of transmission upgrades may be recovered from other SPP customers whose transmission service depends on capacity enabled by the upgrade under the SPP OATT. SPP had not been charging its customers for these upgrades, even though the SPP OATT had allowed SPP to do so since 2008. In 2016, the FERC granted SPP’s request to recover these previously unbilled charges and SPP subsequently billed SPS approximately $13 million. In 2018, SPS’ appeal to the D.C. Circuit over the FERC rulings granting SPP the right to recover previously unbilled charges was remanded to the FERC. In 2019, the FERC reversed its 2016 decision and ordered SPP to refund charges retroactively collected from its transmission customers, including SPS, related to periods before September 2015. In 2020, SPP and Oklahoma Gas & Electric separately filed petitions for review of the FERC’s orders at the D.C. Circuit. In 2021, the D.C. Circuit issued a decision denying these appeals and upholding the FERC’s orders. Refunds received by SPS are expected to be given back to SPS customers through future rates. In 2017, SPS filed a separate related complaint asserting SPP assessed upgrade charges to SPS in violation of the SPP OATT. In 2018, the FERC issued an order denying the SPS complaint. SPS filed a request for rehearing in 2018. The FERC subsequently issued a tolling order granting a rehearing for further consideration. If SPS’ complaint results in additional charges or refunds, SPS will seek to recover or refund the amount through future SPS customer rates. In 2020, SPS filed a petition for review of the FERC’s 2018 orders at the D.C. Circuit. In February 2022, FERC issued an order rejecting SPS’ request for hearing. SPS has appealed that order. That appeal has been combined with SPS’ prior appeal. Environmental MGP, Landfill and Disposal Sites SPS is remediating one former disposal site. SPS has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. Environmental Requirements — Air Regional Haze Rules — In 2016, the EPA adopted a final rule establishing a federal implementation plan for reasonable further progress under the regional haze program for the state of Texas. The rule imposes SO 2 emission limitations which would require the installation of dry scrubbers on Tolk Units 1 and 2; compliance would have been required by February 2021. SPS appealed the EPA’s decision and obtained a stay of the final rule. In 2017, the EPA adopted a final BART rule for Texas. Under that rule, Harrington Units 1, 2, and 3 and Tolk Units 1 and 2 participate in intrastate SO 2 budget and trading program. The rule also implemented participation in a federal ozone season NOx budget and trading program, named the Cross State Air Pollution Rule. The EPA is reconsidering this rule and a proposal for reconsideration is anticipated in the second quarter of 2023. Leases SPS evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset. Components of lease expense: Three Months Ended March 31 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 13 $ 13 Other operating leases (a) 1 2 Total operating lease expense (b) $ 14 $ 15 (a) Includes immaterial short-term lease expense for 2023 and 2022. (b) PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power. Commitments under operating leases as of March 31, 2023: (Millions of Dollars) PPA Operating Leases Other Operating Leases Total Operating Leases Total minimum obligation $ 485 $ 52 $ 537 Interest component of obligation (98) (13) (111) Present value of minimum obligation $ 387 $ 39 426 Less current portion (31) Noncurrent operating lease liabilities $ 395 Variable Interest Entities Under certain PPAs, SPS purchases power from IPPs for which SPS is required to reimburse fuel costs, or to participate in tolling arrangements under which SPS procures the natural gas required to produce the energy that they purchase. These specific PPAs create a variable interest in the IPP. In addition, certain solar PPAs provide an option to purchase emission allowances or sharing provisions related to production credits generated by the solar facility under contract. These specific PPAs create a variable interest in the IPP. SPS had approxi mately 1,197 MW of capacity under long-term PPAs at both March 31, 2023 and Dec. 31, 2022 with entities that have been determined to be variable interest entities. SPS 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. The PPAs have expiration dates through 2041. |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of Dollars) March 31, 2023 Dec. 31, 2022 Accounts receivable, net Accounts receivable $ 153 $ 180 Less allowance for bad debts (13) (13) Accounts receivable, net $ 140 $ 167 |
Inventories | (Millions of Dollars) March 31, 2023 Dec. 31, 2022 Inventories Materials and supplies $ 47 $ 42 Fuel 19 19 Total inventories $ 66 $ 61 |
Property, Plant and Equipment, Net | (Millions of Dollars) March 31, 2023 Dec. 31, 2022 Property, plant and equipment, net Electric plant $ 10,254 $ 10,182 Plant to be retired (a) 260 266 CWIP 239 167 Total property, plant and equipment 10,753 10,615 Less accumulated depreciation (2,543) (2,486) Property, plant and equipment, net $ 8,210 $ 8,129 |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | As of March 31, 2023, SPS had the following committed revolving credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 500 $ 80 $ 420 (a) Expires in September 2027. (b) Includes outstanding letters of credit. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 100 $ 100 Amount outstanding at period end 5 — Average amount outstanding — 35 Maximum amount outstanding 5 100 Weighted average interest rate, computed on a daily basis 4.59 % 0.44 % Weighted average interest rate at period end 4.59 N/A |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2023 Year Ended Dec. 31, 2022 Borrowing limit $ 500 $ 500 Amount outstanding at period end 78 34 Average amount outstanding 88 100 Maximum amount outstanding 118 324 Weighted average interest rate, computed on a daily basis 4.86 % 0.79 % Weighted average interest rate at period end 5.58 4.55 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | SPS’ operating revenues consisted of the following: Three Months Ended March 31 (Millions of Dollars) 2023 2022 Major revenue types Revenue from contracts with customers: Residential $ 101 $ 97 Commercial and Industrial 267 222 Other 12 8 Total retail 380 327 Wholesale 45 69 Transmission 74 72 Other — 3 Total revenue from contracts with customers 499 471 Alternative revenue and other 9 6 Total revenues $ 508 $ 477 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory rate and ETR: Three Months Ended March 31 2023 2022 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 2.3 2.5 Increases (decreases): Wind PTCs (a) (105.5) (87.2) Plant regulatory differences (b) (3.7) (4.0) Amortization of excess nonplant deferred taxes 0.3 (1.1) Other (net) (0.6) 1.1 Effective income tax rate (86.2) % (67.7) % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity FTRs | Amounts in Millions (a) March 31, 2023 Dec. 31, 2022 Megawatt hours of electricity 3 8 (a) Not reflective of net positions in the underlying commodities. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | March 31, 2023 Dec. 31, 2022 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Electric commodity $ — $ — $ 23 $ 23 $ — $ 23 $ — $ — $ 119 $ 119 $ — $ 119 Total current derivative assets $ — $ — $ 23 $ 23 $ — 23 $ — $ — $ 119 $ 119 $ — 119 PPAs (b) 3 3 Current derivative instruments $ 26 $ 122 Noncurrent derivative assets PPAs (b) 2 3 Noncurrent derivative instruments $ 2 $ 3 Current derivative liabilities PPAs (b) 4 4 Current derivative instruments $ 4 $ 4 Noncurrent derivative liabilities PPAs (b) 1 2 Noncurrent derivative instruments $ 1 $ 2 (a) SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At March 31, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) SPS currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Changes in Level 3 Commodity Derivatives | Three Months Ended March 31 (Millions of Dollars) 2023 2022 Balance at Jan. 1 $ 119 $ 27 Purchases (a) 6 4 Settlements (a) (16) (33) Net transactions recorded during the period: Net (losses) gains recognized as regulatory assets and liabilities (a) (86) 34 Balance at March 31 $ 23 $ 32 (a) Relates primarily to FTR instruments administered by SPP. |
Carrying Amount and Fair Value of Long-term Debt | March 31, 2023 Dec. 31, 2022 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 3,211 $ 2,770 $ 3,211 $ 2,674 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | Components of Net Periodic Benefit Cost Three Months Ended March 31 2023 2022 (Millions of Dollars) Pension Benefits Service cost $ 2 $ 2 Interest cost (a) 6 4 Expected return on plan assets (a) (8) (8) Amortization of net loss (a) — 3 Net periodic benefit cost $ — $ 1 Effects of regulation 1 1 Net benefit cost recognized for financial reporting $ 1 $ 2 (a) The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the statements of income or capitalized on the balance sheets as a regulatory asset. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Components of lease expense: Three Months Ended March 31 (Millions of Dollars) 2023 2022 Operating leases PPA capacity payments $ 13 $ 13 Other operating leases (a) 1 2 Total operating lease expense (b) $ 14 $ 15 (a) Includes immaterial short-term lease expense for 2023 and 2022. (b) PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power. |
Lessee, Operating Lease, Liability, Maturity | Commitments under operating leases as of March 31, 2023: (Millions of Dollars) PPA Operating Leases Other Operating Leases Total Operating Leases Total minimum obligation $ 485 $ 52 $ 537 Interest component of obligation (98) (13) (111) Present value of minimum obligation $ 387 $ 39 426 Less current portion (31) Noncurrent operating lease liabilities $ 395 |
Selected Balance Sheet Data Acc
Selected Balance Sheet Data Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, net | ||
Accounts receivable | $ 153 | $ 180 |
Less allowance for bad debts | (13) | (13) |
Accounts receivable, net | $ 140 | $ 167 |
Selected Balance Sheet Data Sel
Selected Balance Sheet Data Selected Balance Sheet Data Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventories | $ 66 | $ 61 |
Inventory, Net | 66 | 61 |
Materials and supplies | ||
Inventories | 47 | 42 |
Fuel | ||
Inventories | $ 19 | $ 19 |
Selected Balance Sheet Data Bal
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 10,753 | $ 10,615 | |
Accumulated depreciation | (2,543) | (2,486) | |
Property, plant and equipment, net | 8,210 | 8,129 | |
Electric plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 10,254 | 10,182 | |
Plant to be Retired | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | [1] | 260 | 266 |
Construction work in progress | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 239 | $ 167 | |
[1]Amounts include Tolk and coal generation assets at Harrington pending facility gas conversion and are reported net of accumulated depreciation. |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments - Money Pool (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 78 | $ 34 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 100 | 100 |
Short-term debt | 5 | 0 |
Average amount outstanding | 0 | 35 |
Maximum amount outstanding | $ 5 | $ 100 |
Weighted average interest rate, computed on a daily basis | 4.59% | 0.44% |
Weighted average interest rate at period end | 4.59% | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 500 | $ 500 |
Short-term debt | 78 | 34 |
Average amount outstanding | 88 | 100 |
Maximum amount outstanding | $ 118 | $ 324 |
Weighted average interest rate, computed on a daily basis | 4.86% | 0.79% |
Weighted average interest rate at period end | 5.58% | 4.55% |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments - Commercial Paper (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 78 | $ 34 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 500 | 500 |
Short-term debt | 78 | 34 |
Average amount outstanding | 88 | 100 |
Maximum amount outstanding | $ 118 | $ 324 |
Weighted average interest rate, computed on a daily basis | 4.86% | 0.79% |
Weighted average interest rate at period end | 5.58% | 4.55% |
Borrowings and Other Financin_5
Borrowings and Other Financing Instruments - Letters of Credit (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Short-term debt | $ 78,000,000 | $ 34,000,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Short-term debt | $ 2,000,000 | 2,000,000 |
Debt Instrument, Term | 1 year | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 |
Borrowings and Other Financin_6
Borrowings and Other Financing Instruments - Credit Facility (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) Plan | Dec. 31, 2022 USD ($) | ||
Line of Credit Facility [Line Items] | |||
Number of extension you can request | Plan | 2 | ||
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 500,000,000 | |
Outstanding | [2] | 80,000,000 | |
Available | 420,000,000 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1]Expires in September 2027[2]Includes outstanding letters of credit. |
Borrowings and Other Financin_7
Borrowings and Other Financing Instruments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 78 | $ 34 |
Revenues (Details)
Revenues (Details) - Regulated Electric - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 499 | $ 471 |
Total revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 508 | 477 |
Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 380 | 327 |
Retail | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 101 | 97 |
Retail | C&I | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 267 | 222 |
Retail | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 12 | 8 |
Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 45 | 69 |
Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 74 | 72 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 3 |
Alternative and Other | ||
Disaggregation of Revenue [Line Items] | ||
Alternative revenue and other | $ 9 | $ 6 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Tax Disclosure [Abstract] | |||
Federal statutory rate, percent | 21% | 21% | |
State tax (net of federal tax effect), percent | 2.30% | 2.50% | |
Wind PTCs, percent | [1] | (105.50%) | (87.20%) |
Plant regulatory differences, percent | [2] | (3.70%) | (4.00%) |
Other tax credits, percent | 0.30% | (1.10%) | |
Other (net), percent | (0.60%) | 1.10% | |
Effective income tax rate, percent | (86.20%) | (67.70%) | |
[1]Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.[2]Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions. |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Commodity Derivatives (Details) - MWh MWh in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Electric Commodity [Member] | |||
Derivative [Line Items] | |||
Mwh of electricity | [1] | 3 | 8 |
[1]ot reflective of net positions in the underlying commodities. |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Consideration of Credit Risk Concentrations (Details) - Credit Concentration Risk $ in Millions | Mar. 31, 2023 USD ($) Counterparty |
Derivative [Line Items] | |
Significant counterparties | 10 |
Municipal or cooperative electric entities or other utilities | |
Derivative [Line Items] | |
Significant counterparties | 9 |
External credit rating, investment grade | |
Derivative [Line Items] | |
Significant counterparties | 4 |
Credit exposure | $ | $ 10 |
Credit exposure, percentage | 31% |
Internal investment grade | |
Derivative [Line Items] | |
Significant counterparties | 5 |
Credit exposure | $ | $ 23 |
Credit exposure, percentage | 69% |
External Credit Rating, Non Investment Grade [Member] | |
Derivative [Line Items] | |
Significant counterparties | 1 |
Credit exposure, percentage | 1% |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 | |
Interest Rate Swap [Member] | |||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||
Derivative Liability, Notional Amount | 0 | ||
Other Derivative Instruments | |||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||
Changes in fair value of FTRs pre-tax gains | (75,000,000) | ||
FTR settlement gains | (68,000,000) | (12,000,000) | |
Other Derivative Instruments | Electric Commodity | |||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | |||
Changes in fair value of FTRs pre-tax gains | (75,000,000) | 1,000,000 | |
FTR settlement gains | [1] | $ 68,000,000 | $ 12,000,000 |
[1]Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value. |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Derivatives, Fair Value | ||||
Return Cash Collateral | $ 0 | |||
External credit rating, investment grade | Credit Concentration Risk | ||||
Changes in Level 3 Commodity Derivatives | ||||
Credit exposure, percentage | 31% | |||
Commodity Contract [Member] | ||||
Changes in Level 3 Commodity Derivatives | ||||
Balance at beginning of period | $ 119 | $ 27 | ||
Purchases | [1] | 6 | 4 | |
Settlements | [1] | (16) | (33) | |
Net gains recognized as regulatory assets and liabilities | [1] | (86) | 34 | |
Balance at end of period | 23 | $ 32 | ||
Other Current Assets | ||||
Derivatives, Fair Value | ||||
Derivative asset, net | 26 | 122 | ||
Other Noncurrent Assets | ||||
Derivatives, Fair Value | ||||
Derivative asset, net | 2 | 3 | ||
Other Current Liabilities | ||||
Derivatives, Fair Value | ||||
Derivative liability, net | 4 | 4 | ||
Other Noncurrent Liabilities | ||||
Derivatives, Fair Value | ||||
Derivative liability, net | 1 | 2 | ||
Fair Value Measured on a Recurring Basis | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 23 | 119 | ||
Asset, netting | [2] | 0 | 0 | |
Derivative asset, net | 23 | 119 | ||
Fair Value Measured on a Recurring Basis | Level 1 | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 3 | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 23 | 119 | ||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Electric Commodity | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 23 | 119 | ||
Asset, netting | [2] | 0 | 0 | |
Derivative asset, net | 23 | 119 | ||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 1 | Electric Commodity | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 2 | Electric Commodity | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Level 3 | Electric Commodity | ||||
Derivatives, Fair Value | ||||
Derivative asset, gross | 23 | 119 | ||
Fair Value, Measurements, Nonrecurring | Other Current Assets | PPAs | ||||
Derivatives, Fair Value | ||||
Derivative asset, net | [3] | 3 | 3 | |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Assets | PPAs | ||||
Derivatives, Fair Value | ||||
Derivative asset, net | [3] | 2 | 3 | |
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | PPAs | ||||
Derivatives, Fair Value | ||||
Derivative liability, net | [3] | 4 | 4 | |
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | PPAs | ||||
Derivatives, Fair Value | ||||
Derivative liability, net | [3] | $ 1 | $ 2 | |
[1]Relates primarily to FTR instruments administered by SPP.[2]SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At March 31, 2023 and Dec. 31, 2022, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.[3]SPS currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Carrying Amount | $ 3,211 | $ 3,211 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 2,770 | $ 2,674 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) - Pension Plan [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 2 | $ 2 | ||
Interest cost (a) | [1] | 6 | 4 | |
Expected return on plan assets (a) | [1] | (8) | (8) | |
Amortization of net loss (gain) (a) | [1] | 0 | 3 | |
Net periodic benefit cost (credit) | 0 | 1 | ||
Contributions to pension plans | $ 0 | |||
Defined Benefit Plan Credits Not Recognized Due To Effects of Regulation | 1 | 1 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1 | $ 2 | ||
Xcel Energy Inc. | ||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Contributions to pension plans | $ 50 | |||
[1]The components of net periodic cost other than the service cost component are included in the line item “Other income, net” in the statements of income or capitalized on the balance sheets as a regulatory asset. |
Commitments and Contingencies -
Commitments and Contingencies - SPP OATT Upgrade Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017 USD ($) | |
Southwest Power Pool (SPP) | SPP Open Access Transmission Tariff Upgrade Costs | SPS | |
Public Utilities, General Disclosures [Line Items] | |
Charges For Transmission Service Upgrades | $ 13 |
FERC NOPR on ROE Incentive Adde
FERC NOPR on ROE Incentive Adders (Details) | Mar. 31, 2023 |
Other MGP, Landfill, or Disposal Sites | |
Public Utilities, General Disclosures [Line Items] | |
Number of identified MGP, landfill, or disposal sites under current investigation and/or remediation | 1 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Cost | [1] | $ 14 | $ 15 | |
Lessee, Operating Lease, Liability, to be Paid | 537 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (111) | |||
Operating Lease, Liability | 426 | |||
Operating Lease, Liability, Current | (31) | $ (31) | ||
Operating lease liabilities | 395 | $ 403 | ||
PPAs | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Cost | 13 | 13 | ||
Lessee, Operating Lease, Liability, to be Paid | 485 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (98) | |||
Operating Lease, Liability | 387 | |||
Property, Plant and Equipment, Other Types | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Cost | [2] | 1 | $ 2 | |
Lessee, Operating Lease, Liability, to be Paid | 52 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (13) | |||
Operating Lease, Liability | $ 39 | |||
[1]PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power.[2]Includes immaterial short-term lease expense for 2023 and 2022. |
Commitments and Contingencies_2
Commitments and Contingencies - Variable Interest Entities (Details) - MW | Mar. 31, 2023 | Dec. 31, 2022 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Purchased Power Agreements [Abstract] | ||
Generating capacity (in MW) | 1,197 | 1,197 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Income Tax Expense (Benefit) | $ (25) | $ (21) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at beginning of period | 3,850 | |
Accumulated other comprehensive loss at end of period | $ 3,838 |