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Fair Value of Financial Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity Forwards and Options
Gross notional amounts of commodity forwards and options:
(Amounts in Millions) (a)(b)
Sept. 30, 2020Dec. 31, 2019
Megawatt hours of electricity18.1 9.3 
Million British thermal units of natural gas92.8 32.2 
(a)Amounts are not reflective of net positions in the underlying commodities.
(b)Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory (Assets) and Liabilities
Three Months Ended Sept. 30, 2020
Other derivative instruments
Natural gas commodity$— $0.6 
Total$— $0.6 
Nine Months Ended Sept. 30, 2020
Other derivative instruments
Natural gas commodity$— $(2.2)
Total$— $(2.2)
Three Months Ended Sept. 30, 2019
Other derivative instruments
Natural gas commodity$— $(2.2)
Total$— $(2.2)
Nine Months Ended Sept. 30, 2019
Other derivative instruments
Natural gas commodity$— $(3.7)
Total$— $(3.7)
Pre-Tax (Gains) Losses Reclassified into Income During the Period from:Pre-Tax Gains (Losses) Recognized During the Period in Income
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory Assets and (Liabilities)
Three Months Ended Sept. 30, 2020
Derivatives designated as cash flow hedges
Interest rate$0.4 
(a)
$— $— 
Total$0.4 $— $— 
Other derivative instruments
Commodity trading$— $— $3.2 
(b)
Total$— $— $3.2 
Nine Months Ended Sept. 30, 2020
Derivatives designated as cash flow hedges
Interest rate$1.2 
(a)
$— $— 
Total$1.2 $— $— 
Other derivative instruments
Commodity trading$— $— $(2.1)
(b)
Natural gas commodity— 3.4 
(c)
(3.4)
(c)
Total$— $3.4 $(5.5)
(a)    Amounts are recorded to interest charges.
(b)    Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate.
(c)    Amounts for the three and nine months ended Sept. 30, 2020, included no settlement gain or losses on derivatives entered to mitigate natural gas price risk for electric generation recorded to electric fuel and purchased power, subject to cost-recovery mechanisms and reclassified to a regulatory asset, as appropriate. Remaining derivative settlement losses for the three and nine months ended Sept. 30, 2020, relate to natural gas operations and are recorded to cost of natural gas sold and transported. These gains and losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset or liability, as appropriate.
Pre-Tax (Gains) Losses Reclassified into Income During the Period from:Pre-Tax Gains (Losses) Recognized During the Period in Income
(Millions of Dollars)Accumulated Other Comprehensive LossRegulatory Assets and (Liabilities)
Three Months Ended Sept. 30, 2019
Derivatives designated as cash flow hedges
Interest rate$0.4 
(a)
$— $— 
Total$0.4 $— $— 
Other derivative instruments
Commodity trading$— $— $0.6 
(b)
Total$— $— $0.6 
Nine Months Ended Sept. 30, 2019
Derivatives designated as cash flow hedges
Interest rate$1.2 
(a)
$— $— 
Total$1.2 $— $— 
Other derivative instruments
Commodity trading$— $— $5.3 
(b)
Natural gas commodity— (1.3)
(c)
(2.1)
(c)
Total$— $(1.3)$3.2 
(a) Amounts are recorded to interest charges.
(b)    Amounts are recorded to electric operating revenues. Portions of these gains and losses are subject to sharing with electric customers through margin-sharing mechanisms and deducted from gross revenue as appropriate.
(c)    Amounts for the three and nine months ended Sept. 30, 2019, included no settlement gain or losses on derivatives entered to mitigate natural gas price risk for electric generation recorded to electric fuel and purchased power, subject to cost-recovery mechanisms and reclassified to a regulatory asset, as appropriate. Remaining derivative settlement losses for the three and nine months ended Sept. 30, 2019, relate to natural gas operations and are recorded to cost of natural gas sold and transported. These gains and losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset or liability, as appropriate.
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level
Sept. 30, 2020Dec. 31, 2019
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative assets
Other derivative instruments:
Commodity trading$7.0 $27.6 $1.0 $35.6 $(27.0)$8.6 $1.9 $11.1 $0.9 $13.9 $(10.1)$3.8 
Natural gas commodity— 10.4 — 10.4 — 10.4 — 3.4 — 3.4 — 3.4 
Total current derivative assets$7.0 $38.0 $1.0 $46.0 $(27.0)$19.0 $1.9 $14.5 $0.9 $17.3 $(10.1)$7.2 
Noncurrent derivative assets
Other derivative instruments:
Commodity trading$1.6 $9.1 $2.5 $13.2 $(10.1)$3.1 $0.4 $8.1 $1.1 $9.6 $(9.6)$— 
Total noncurrent derivative assets$1.6 $9.1 $2.5 $13.2 $(10.1)$3.1 $0.4 $8.1 $1.1 $9.6 $(9.6)$— 
Sept. 30, 2020Dec. 31, 2019
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 3
Current derivative liabilities
Other derivative instruments:
Commodity trading$7.0 $31.6 $6.3 $44.9 $(27.0)$17.9 $1.7 $16.7 $— $18.4 $(13.1)$5.3 
Natural gas commodity— 2.9 — 2.9 — 2.9 — 3.4 — 3.4 — 3.4 
Total current derivative liabilities$7.0 $34.5 $6.3 $47.8 $(27.0)$20.8 $1.7 $20.1 $— $21.8 $(13.1)$8.7 
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading$0.9 $21.4 $35.5 $57.8 $(15.3)$42.5 $0.4 $47.0 $14.7 $62.1 $(9.6)$52.5 
Total noncurrent derivative assets$0.9 $21.4 $35.5 $57.8 $(15.3)$42.5 $0.4 $47.0 $14.7 $62.1 $(9.6)$52.5 
(a)PSCo nets derivative instruments and related collateral on its consolidated balance sheets 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, 2020 and Dec. 31, 2019. At Sept. 30, 2020 and Dec. 31, 2019, derivative liabilities include no obligations to return cash collateral and the right to reclaim cash collateral of $5.2 million and $3.0 million, respectively. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in Level 3 commodity derivatives:
Three Months Ended Sept. 30
(Millions of Dollars)20202019
Balance at July 1$(17.1)$0.2 
Settlements0.5 (0.5)
Net transactions recorded during the period:
(Losses) gains recognized in earnings (a)
(21.7)0.5 
Balance at Sept. 30$(38.3)$0.2 
Nine Months Ended Sept. 30
(Millions of Dollars)20202019
Balance at Jan. 1$(12.7)$0.1 
Settlements(0.6)(1.4)
Net transactions recorded during the period:
(Losses) gains recognized in earnings (a)
(25.0)1.5 
Balance at Sept. 30$(38.3)$0.2 
(a)Amounts relate to commodity derivatives held at the end of the period.
Carrying Amount and Fair Value of Long-term Debt
Other financial instruments for which the carrying amount did not equal fair value:
Sept. 30, 2020Dec. 31, 2019
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$5,722.7 $6,932.2 $5,384.7 $6,039.3