XML 34 R25.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value of Financial Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2022
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, 2022Dec. 31, 2021
Megawatt hours of electricity10 15 
Million British thermal units of natural gas52 71 
(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 (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, 2022
Derivatives designated as cash flow hedges
Interest rate$1 
(a)
$— $— 
Total$1 $— $— 
Other derivative instruments
Commodity trading$— $— $2 
(b)
Total$— $— $2 
Nine Months Ended Sept. 30, 2022
Derivatives designated as cash flow hedges
Interest rate$1 
(a)
$— $— 
Total$1 $— $— 
Other derivative instruments
Commodity trading$— $— $3 
(b)
Natural gas commodity— 2 
(c)
(11)
(c)(d)
Total$— $2 $(8)
Three Months Ended Sept. 30, 2021
Other derivative instruments
Commodity trading$— $— $11 
(b)
Total$— $— $11 
Nine Months Ended Sept. 30, 2021
Derivatives designated as cash flow hedges
Interest rate$1 
(a)
$— $— 
Total$1 $— $— 
Other derivative instruments
Commodity trading$— $— $25 
(b)
Natural gas commodity— 6 
(c)
(6)
(c)(d)
Total$— $6 $19 
(a)    Recorded to interest charges.
(b)    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)    Recorded to cost of natural gas sold and transported. These losses are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.
(d)    Relates primarily to option premium amortization.
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level
Sept. 30, 2022Dec. 31, 2021
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$28 $116 $— $144 $(114)$30 $12 $97 $— $109 $(81)$28 
Natural gas commodity— 18 — 18 — 18 — 11 — 11 — 11 
Total current derivative assets$28 $134 $— $162 $(114)$48 $12 $108 $— $120 $(81)$39 
Noncurrent derivative assets
Other derivative instruments:
Commodity trading$20 $22 $16 $58 $(46)$12 $10 $28 $54 $92 $(65)$27 
Total noncurrent derivative assets$20 $22 $16 $58 $(46)$12 $10 $28 $54 $92 $(65)$27 
Sept. 30, 2022Dec. 31, 2021
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$12 $123 $14 $149 $(120)$29 $6 $90 $16 $112 $(85)$27 
Natural gas commodity— 8 — 8 — 8 — 3 — 3 — 3 
Total current derivative liabilities$12 $131 $14 $157 $(120)$37 $6 $93 $16 $115 $(85)$30 
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading$9 $25 $26 $60 $(53)$7 $3 $— $101 $104 $(75)$29 
Total noncurrent derivative assets$9 $25 $26 $60 $(53)$7 $3 $— $101 $104 $(75)$29 
(a)PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At both Sept. 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include no obligations to return cash collateral. At Sept. 30, 2022 and Dec. 31, 2021, derivative assets and liabilities include rights to reclaim cash collateral of $13 million and $14 million, respectively. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in Level 3 commodity derivatives:
Three Months Ended Sept. 30
(Millions of Dollars)20222021
Balance at July 1$(30)$(61)
Settlements5 4 
Net transactions recorded during the period:
Gains (losses) recognized in earnings (a)
1 (11)
Balance at Sept. 30$(24)$(68)
Nine Months Ended Sept. 30
(Millions of Dollars)20222021
Balance at Jan. 1$(63)$(44)
Settlements9 3 
Net transactions recorded during the period:
Gains (losses) recognized in earnings (a)
30 (27)
Balance at Sept. 30$(24)$(68)
(a)Level 3 net gains recognized in earnings are subject to offsetting net losses of derivative instruments categorized as levels 1 and 2 in the income statement.
Carrying Amount and Fair Value of Long-term Debt
Other financial instruments for which the carrying amount did not equal fair value:
Sept. 30, 2022Dec. 31, 2021
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$6,858 $5,785 $6,467 $7,291