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Fair Value of Financial Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity FTRs
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.
(Amounts in Millions) (a) 
 
June 30, 2019
 
Dec. 31, 2018
Mwh of electricity
 
15.5

 
5.5

(a) 
Amounts are not reflective of net positions in the underlying commodities.
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level
Recurring Fair Value Measurements — SPS’ derivative assets and liabilities measured at fair value on a recurring basis:
 
 
June 30, 2019
 
Dec. 31, 2018
 
 
Fair Value
 
 
 
 
 
 
 
Fair Value
 
 
 
 
 
 
(Millions of Dollars)
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
Total
 

Netting (a)
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
Total
 

Netting (a)
 
Total
Current derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric commodity
 
$
—

 
$
—

 
$
22.7

 
$
22.7

 
$
(0.3
)
 
$
22.4

 
$
—

 
$
—

 
$
14.9

 
$
14.9

 
$
(0.2
)
 
$
14.7

Total current derivative assets
 
$
—

 
$
—

 
$
22.7

 
$
22.7

 
$
(0.3
)
 
22.4

 
$
—

 
$
—

 
$
14.9

 
$
14.9

 
$
(0.2
)
 
14.7

PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
3.1

 
 
 
 
 
 
 
 
 
 
 
3.1

Current derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
25.5

 
 
 
 
 
 
 
 
 
 
 
$
17.8

Noncurrent derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
14.2

 
 
 
 
 
 
 
 
 
 
 
15.8

Noncurrent derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
14.2

 
 
 
 
 
 
 
 
 
 
 
$
15.8

Current derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric commodity
 
$
—

 
$
—

 
$
0.5

 
$
0.5

 
$
(0.3
)
 
$
0.2

 
$
—

 
$
—

 
$
0.2

 
$
0.2

 
$
(0.2
)
 
$
—

Total current derivative liabilities
 
$
—

 
$
—

 
$
0.5

 
$
0.5

 
$
(0.3
)
 
0.2

 
$
—

 
$
—

 
$
0.2

 
$
0.2

 
$
(0.2
)
 
—

PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
3.6

 
 
 
 
 
 
 
.

 
 
 
3.6

Current derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
3.8

 
 
 
 
 
 
 
 
 
 
 
$
3.6

Noncurrent derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
14.6

 
 
 
 
 
 
 
 
 
 
 
16.4

Noncurrent derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
14.6

 
 
 
 
 
 
 
 
 
 
 
$
16.4

(a) 
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 June 30, 2019 and Dec. 31, 2018. At both June 30, 2019 and Dec. 31, 2018, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
(b) 
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.
Changes in Level 3 Commodity Derivatives
Changes in Level 3 commodity derivatives for the three and six months ended June 30, 2019 and 2018:
 
 
Three Months Ended June 30,
(Millions of Dollars)
 
2019
 
2018
Balance at April 1
 
$
3.1

 
$
5.3

Purchases
 
17.1

 
18.7

Settlements
 
(13.1
)
 
(14.8
)
Net transactions recorded during the period:
 
 
 
 
Net gains recognized as regulatory assets and liabilities
 
15.1

 
26.2

Balance at June 30
 
$
22.2

 
$
35.4


 
 
Six Months Ended June 30,
(Millions of Dollars)
 
2019
 
2018
Balance at Jan. 1
 
$
14.7

 
$
12.7

Purchases
 
21.0

 
19.3

Settlements
 
(19.7
)
 
(25.2
)
Net transactions recorded during the period:
 
 
 
 
Net gains recognized as regulatory assets and liabilities
 
6.2

 
28.6

Balance at June 30
 
$
22.2

 
$
35.4
Carrying Amount and Fair Value of Long-term Debt
Other financial instruments for which the carrying amount did not equal fair value:
 
 
June 30, 2019
 
Dec. 31, 2018
(Millions of Dollars)
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Long-term debt, including current portion
 
$
2,419.5

 
$
2,617.1

 
$
2,126.1

 
$
2,139.8