QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Southwestern Public Service Company | |||
(Exact name of registrant as specified in its charter) |
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||
(Address of Principal Executive Offices) | (Zip Code) |
(Registrant’s Telephone Number, Including Area Code) |
N/A |
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
N/A | N/A | N/A |
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | ||
☒ | Smaller Reporting Company | ||||
Emerging growth company |
Class | May 7, 2020 | |
Common Stock, $1.00 par value |
PART I — FINANCIAL INFORMATION | ||
Item l — | ||
Item 2 — | ||
Item 4 — | ||
PART II — OTHER INFORMATION | ||
Item 1 — | ||
Item 1A — | ||
Item 6 — | ||
Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former) | |
NSP-Minnesota | Northern States Power Company, a Minnesota corporation |
NSP-Wisconsin | Northern States Power Company, a Wisconsin corporation |
PSCo | Public Service Company of Colorado |
SPS | Southwestern Public Service Company |
Utility subsidiaries | NSP-Minnesota, NSP-Wisconsin, PSCo and SPS |
Xcel Energy | Xcel Energy Inc. and its subsidiaries |
Federal and State Regulatory Agencies | |
D.C. Circuit | United States Court of Appeals for the District of Columbia Circuit |
DOE | Department of Energy |
EPA | Environmental Protection Agency |
FERC | Federal Energy Regulatory Commission |
IRS | Internal Revenue Service |
NMPRC | New Mexico Public Regulation Commission |
PUCT | Public Utility Commission of Texas |
SEC | Securities and Exchange Commission |
Other Terms and Abbreviations | |
ADIT | Accumulated deferred income tax |
AFUDC | Allowance for funds used during construction |
ALJ | Administrative Law Judge |
ASC | FASB Accounting Standards Codification |
ATRR | Annual transmission revenue requirement |
AXM | Alliance of Xcel Municipalities |
C&I | Commercial and Industrial |
CEO | Chief executive officer |
CFO | Chief financial officer |
COVID-19 | Novel coronavirus |
DSM | Demand side management |
ETR | Effective tax rate |
FASB | Financial Accounting Standards Board |
FTR | Financial transmission right |
GAAP | Generally accepted accounting principles |
IPP | Independent power producers |
NAV | Net asset value |
NOL | Net operating loss |
O&M | Operating and maintenance |
OATT | Open access transmission tariff |
OPUC | Office of Public Utility Counsel |
PPA | Power purchase agreement |
PTC | Production tax credit |
ROE | Return on equity |
ROFR | Right of first refusal |
RTO | Regional Transmission Organization |
SPP | Southwest Power Pool, Inc. |
TIEC | Texas Industrial Energy Consumers |
TCJA | 2017 federal tax reform enacted as Public Law No: 115-97, commonly referred to as the Tax Cuts and Jobs Act |
VIE | Variable interest entity |
Measurements | |
MW | Megawatts |
MWh | Megawatt hours |
Forward-Looking Statements |
Three Months Ended March 31 | |||||||
2020 | 2019 | ||||||
Operating revenues | $ | $ | |||||
Operating expenses | |||||||
Electric fuel and purchased power | |||||||
Operating and maintenance expenses | |||||||
Demand side management expenses | |||||||
Depreciation and amortization | |||||||
Taxes (other than income taxes) | |||||||
Total operating expenses | |||||||
Operating income | |||||||
Other (expense) income, net | ( | ) | |||||
Allowance for funds used during construction — equity | |||||||
Interest charges and financing costs | |||||||
Interest charges — includes other financing costs of $0.9 and $0.8, respectively | |||||||
Allowance for funds used during construction — debt | ( | ) | ( | ) | |||
Total interest charges and financing costs | |||||||
Income before income taxes | |||||||
Income tax (benefit) expense | ( | ) | |||||
Net income | $ | $ | |||||
See Notes to Financial Statements |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Operating activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes | |||||||
Allowance for equity funds used during construction | ( | ) | ( | ) | |||
Net derivative losses | ( | ) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | ( | ) | ( | ) | |||
Accrued unbilled revenues | |||||||
Inventories | ( | ) | ( | ) | |||
Prepayments and other | ( | ) | ( | ) | |||
Accounts payable | ( | ) | ( | ) | |||
Net regulatory assets and liabilities | ( | ) | |||||
Other current liabilities | ( | ) | ( | ) | |||
Pension and other employee benefit obligations | ( | ) | ( | ) | |||
Other, net | |||||||
Net cash provided by operating activities | |||||||
Investing activities | |||||||
Utility capital/construction expenditures | ( | ) | ( | ) | |||
Investments in utility money pool arrangement | ( | ) | |||||
Repayments from utility money pool arrangement | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Financing activities | |||||||
Proceeds from short-term borrowings, net | |||||||
Borrowings under utility money pool arrangement | |||||||
Repayments under utility money pool arrangement | ( | ) | ( | ) | |||
Capital contributions from parent | |||||||
Dividends paid to parent | ( | ) | ( | ) | |||
Other, net | ( | ) | ( | ) | |||
Net cash provided by financing activities | |||||||
Net change in cash, cash equivalents and restricted cash | ( | ) | ( | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | |||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest (net of amounts capitalized) | $ | ( | ) | $ | ( | ) | |
Cash paid for income taxes, net | ( | ) | ( | ) | |||
Supplemental disclosure of non-cash investing and financing transactions: | |||||||
Property, plant and equipment additions in accounts payable | $ | $ | |||||
Inventory transfer additions in PPE | |||||||
Operating lease right-of-use assets | |||||||
Allowance for equity funds used during construction |
March 31, 2020 | Dec. 31, 2019 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, net | |||||||
Accounts receivable from affiliates | |||||||
Accrued unbilled revenues | |||||||
Inventories | |||||||
Regulatory assets | |||||||
Derivative instruments | |||||||
Prepaid taxes | |||||||
Prepayments and other | |||||||
Total current assets | |||||||
Property, plant and equipment, net | |||||||
Other assets | |||||||
Regulatory assets | |||||||
Derivative instruments | |||||||
Operating lease right-of-use assets | |||||||
Other | |||||||
Total other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Short-term debt | $ | $ | |||||
Borrowings under utility money pool arrangement | |||||||
Accounts payable | |||||||
Accounts payable to affiliates | |||||||
Regulatory liabilities | |||||||
Taxes accrued | |||||||
Accrued interest | |||||||
Dividends payable to parent | |||||||
Derivative instruments | |||||||
Current obligation under operating lease | |||||||
Other | |||||||
Total current liabilities | |||||||
Deferred credits and other liabilities | |||||||
Deferred income taxes | |||||||
Regulatory liabilities | |||||||
Asset retirement obligations | |||||||
Derivative instruments | |||||||
Pension and employee benefit obligations | |||||||
Operating lease liabilities | |||||||
Other | |||||||
Total deferred credits and other liabilities | |||||||
Commitments and contingencies | |||||||
Capitalization | |||||||
Long-term debt | |||||||
Common stock — 200 shares authorized of $1.00 par value; 100 shares outstanding at March 31, 2020 and Dec. 31, 2019, respectively | |||||||
Additional paid in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total common stockholder’s equity | |||||||
Total liabilities and equity | $ | $ |
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholders’ Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Three Months Ended March 31, 2020 and 2019 | ||||||||||||||||||||||
Balance at Dec. 31, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Dividends declared to parent | ( | ) | ( | ) | ||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Balance at Dec. 31, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Dividends declared to parent | ( | ) | ( | ) | ||||||||||||||||||
Contributions of capital by parent | ||||||||||||||||||||||
Adoption of ASC Topic 326 | ( | ) | ( | ) | ||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
See Notes to Financial Statements |
1. Summary of Significant Accounting Policies |
2. Accounting Pronouncements |
3. Selected Balance Sheet Data |
(Millions of Dollars) | March 31, 2020 | Dec. 31, 2019 | ||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | $ | ||||||
Less allowance for bad debts | ( | ) | ( | ) | ||||
Accounts receivable, net | $ | $ |
(Millions of Dollars) | March 31, 2020 | Dec. 31, 2019 | ||||||
Inventories | ||||||||
Materials and supplies | $ | $ | ||||||
Fuel | ||||||||
Total inventories | $ | $ |
(Millions of Dollars) | March 31, 2020 | Dec. 31, 2019 | ||||||
Property, plant and equipment, net | ||||||||
Electric plant | $ | $ | ||||||
Construction work in progress | ||||||||
Total property, plant and equipment | ||||||||
Less accumulated depreciation | ( | ) | ( | ) | ||||
Property, plant and equipment, net | $ | $ |
4. Borrowings and Other Financing Instruments |
(Amounts in Millions, Except Interest Rates) | Three Months Ended March 31, 2020 | Year Ended Dec. 31, 2019 | ||||||
Borrowing limit | $ | $ | ||||||
Amount outstanding at period end | ||||||||
Average amount outstanding | ||||||||
Maximum amount outstanding | ||||||||
Weighted average interest rate, computed on a daily basis | % | % | ||||||
Weighted average interest rate at period end | N/A |
(Amounts in Millions, Except Interest Rates) | Three Months Ended March 31, 2020 | Year Ended Dec. 31, 2019 | ||||||
Borrowing limit | $ | $ | ||||||
Amount outstanding at period end | ||||||||
Average amount outstanding | ||||||||
Maximum amount outstanding | ||||||||
Weighted average interest rate, computed on a daily basis | % | % | ||||||
Weighted average interest rate at period end | N/A |
Credit Facility (a) | Outstanding (b) | Available | ||||||||
$ | $ | $ |
(a) |
(b) | Includes outstanding letters of credit. |
5. Revenues |
Three Months Ended | ||||||||
(Millions of Dollars) | March 31, 2020 | March 31, 2019 | ||||||
Major revenue types | ||||||||
Revenue from contracts with customers: | ||||||||
Residential | $ | $ | ||||||
C&I | ||||||||
Other | ||||||||
Total retail | ||||||||
Wholesale | ||||||||
Transmission | ||||||||
Other | ||||||||
Total revenue from contracts with customers | ||||||||
Alternative revenue and other | ||||||||
Total revenues | $ | $ |
6. Income Taxes |
Three Months Ended March 31, | ||||||
2020 | 2019 | |||||
Federal statutory rate | % | % | ||||
State tax (net of federal tax effect) | ||||||
Decreases in tax from: | ||||||
Wind PTCs | ( | ) | ||||
Plant regulatory differences (a) | ( | ) | ( | ) | ||
Other tax credits, net of NOL & tax credit allowances | ( | ) | ( | ) | ||
Other (net) | ( | ) | ( | ) | ||
Effective income tax rate | ( | )% | % |
(a) | 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 credits are offset by corresponding revenue reductions. |
Tax Years | Expiration | |
2009 - 2013 | September 2020 | |
2014 - 2016 | June 2021 |
(Millions of Dollars) | March 31, 2020 | Dec. 31, 2019 | ||||||
Unrecognized tax benefit — Permanent tax positions | $ | $ | ||||||
Unrecognized tax benefit — Temporary tax positions | ||||||||
Total unrecognized tax benefit | $ | $ |
(Millions of Dollars) | March 31, 2020 | Dec. 31, 2019 | ||||||
NOL and tax credit carryforwards | $ | ( | ) | $ | ( | ) |
7. Fair Value of Financial Assets and Liabilities |
• | 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; and |
• | 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. |
(Amounts in Millions) (a) | March 31, 2020 | Dec. 31, 2019 | ||||
MWh of electricity |
(a) | Amounts are not reflective of net positions in the underlying commodities. |
March 31, 2020 | Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Total current derivative assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Electric commodity | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Total noncurrent derivative assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | $ |
March 31, 2020 | Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
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 liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Electric commodity | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Total current derivative liabilities | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
PPAs (b) | . | |||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (b) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | $ |
(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 March 31, 2020 and Dec. 31, 2019. At both March 31, 2020 and Dec. 31, 2019, derivative assets and liabilities include |
(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. |
Three Months Ended March 31, | ||||||||
(Millions of Dollars) | 2020 | 2019 | ||||||
Balance at Jan. 1 | $ | $ | ||||||
Purchases | ||||||||
Settlements | ( | ) | ( | ) | ||||
Net transactions recorded during the period: | ||||||||
Net losses recognized as regulatory assets and liabilities | ( | ) | ( | ) | ||||
Balance at March 31 | $ | $ |
March 31, 2020 | Dec. 31, 2019 | |||||||||||||||
(Millions of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt | $ | $ | $ | $ |
8. Benefit Plans and Other Postretirement Benefits |
Three Months Ended March 31 | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost (a) | ||||||||||||||||
Expected return on plan assets (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service credit (a) | ( | ) | ( | ) | ||||||||||||
Amortization of net loss (gain) (a) | ( | ) | ( | ) | ||||||||||||
Net periodic benefit cost (credit) | ( | ) | ( | ) | ||||||||||||
Credits not recognized due to effects of regulation | ||||||||||||||||
Net benefit cost (credit) recognized for financial reporting | $ | $ | $ | ( | ) | $ | ( | ) |
9. Commitments and Contingencies |
ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Results of Operations |
Three Months Ended March 31 | ||||||||
(Millions of Dollars) | 2020 | 2019 | ||||||
Electric revenues | $ | 395.0 | $ | 454.1 | ||||
Electric fuel and purchased power | (187.8 | ) | (230.9 | ) | ||||
Electric margin | $ | 207.2 | $ | 223.2 |
(Millions of Dollars) | 2020 vs 2019 | |||
PTCs flowed back to customers (offset by a lower ETR) | $ | (11.1 | ) | |
New Mexico TCJA related regulatory settlement (2019) | (10.2 | ) | ||
Firm wholesale generation | (6.5 | ) | ||
Purchased capacity costs | 6.1 | |||
Demand revenue | 3.7 | |||
Wholesale transmission revenue, net | 2.2 | |||
Other, net | (0.2 | ) | ||
Total decrease in electric margin | $ | (16.0 | ) |
Public Utility Regulation |
Mechanism | Utility Service | Amount Requested (in millions) | Filing Date | Approval | Additional Information | |||||
NMPRC | ||||||||||
Rate Case | Electric | $51 | July 2019 | Pending | In July 2019, SPS filed an electric rate case with the NMPRC seeking an increase in retail electric base rates of approximately $51 million. The rate request is based on an ROE of 10.35%, an equity ratio of 54.77%, a rate base of approximately $1.3 billion and a historic test year with rate base additions through Aug. 31, 2019. In December 2019, SPS revised its base rate increase request to approximately $47 million, based on a ROE of 10.10% and updated information. The request also included an increase of $14.6 million for accelerated depreciation including the early retirement of the Tolk coal plant in 2032. On Jan. 13, 2020, SPS and various parties filed an uncontested comprehensive stipulation. The stipulation includes a base rate revenue increase of $31 million, based on an ROE of 9.45% and an equity ratio of 54.77%. The stipulation also includes an acceleration of depreciation on the Tolk coal plant to reflect early retirement in 2037, which results in a total increase in depreciation expense of $8 million. The parties to the stipulation agreed not to oppose the full application of depreciation rates associated with the 2032 retirement date in SPS’ next base rate case. A NMPRC decision is expected later in the year. SPS anticipates final rates will go into effect in the second or third quarter of 2020. |
(Millions of Dollars) | Staff | AXM | OPUC | TIEC | DOE | |||||||||||||||
SPS Direct Testimony | $ | 137 | $ | 137 | $ | 137 | $ | 137 | $ | 137 | ||||||||||
Recommended base rate adjustments: | ||||||||||||||||||||
ROE | (22 | ) | (24 | ) | (15 | ) | (21 | ) | (24 | ) | ||||||||||
Capital structure | (7 | ) | (10 | ) | — | (7 | ) | (3 | ) | |||||||||||
Tolk/Harrington O&M disallowance | — | (7 | ) | — | — | — | ||||||||||||||
Distribution and Transmission Capital Disallowances (a) | (7 | ) | — | — | — | — | ||||||||||||||
Depreciation expense | (8 | ) | (15 | ) | (8 | ) | (20 | ) | — | |||||||||||
Excess ADIT unprotected plant | — | — | (7 | ) | — | — | ||||||||||||||
Income Tax Expense Differences | (12 | ) | — | — | — | — | ||||||||||||||
Other, net | (6 | ) | (6 | ) | (1 | ) | (1 | ) | — | |||||||||||
Total Adjustments | (62 | ) | (62 | ) | (31 | ) | (49 | ) | (27 | ) | ||||||||||
Total proposed revenue change | $ | 75 | $ | 75 | $ | 106 | $ | 88 | $ | 110 |
Recommended Position | Staff | AXM | OPUC (b) | TIEC | DOE | ||||||||||
ROE | 9.1 | % | 9.0 | % | — | % | 9.2 | % | 9.0 | % | |||||
Equity Ratio | 51.00 | % | 50.00 | % | — | % | 51.00 | % | 53.00 | % |
(a) | Staff recommends exclusion of approximately $134 million in transmission, distribution, and general plant in service in this rate case resulting in an approximate $7 million decrease to the revenue requirement. |
(b) | OPUC did not provide a recommendation for an ROE or equity ratio. For illustrative purposes an ROE of 9.5% was used. |
Revenue Request (Millions of Dollars) | ||||
Hale Wind Farm | $ | 61 | ||
Capital investments | 47 | |||
Depreciation rate change (including Tolk) | 34 | |||
Cost of capital | 8 | |||
Expiring purchased power contracts | (28 | ) | ||
Other, net | 8 | |||
New revenue request | $ | 130 |
Environmental |
ITEM 4 — CONTROLS AND PROCEDURES |
ITEM 1 — LEGAL PROCEEDINGS |
ITEM 1A — RISK FACTORS |
ITEM 6 — EXHIBITS |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference |
3.01* | SPS Form 10-Q for the quarter ended Sept. 30, 2017 | 001-03789 | 3.01 | |
3.02* | SPS Form 10-K for the year ended Dec. 31, 2018 | 001-03789 | 3.02 | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH | XBRL Schema | |||
101.CAL | XBRL Calculation | |||
101.DEF | XBRL Definition | |||
101.LAB | XBRL Label | |||
101.PRE | XBRL Presentation | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Southwestern Public Service Company | ||
May 7, 2020 | By: | /s/ JEFFREY S. SAVAGE |
Jeffrey S. Savage | ||
Senior Vice President, Controller | ||
(Principal Accounting Officer) | ||
/s/ BRIAN J. VAN ABEL | ||
Brian J. Van Abel | ||
Executive Vice President, Chief Financial Officer and Director | ||
(Principal Financial Officer) |
1. | I have reviewed this report on Form 10-Q of Southwestern Public Service Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ BEN FOWKE | |
Ben Fowke | |
Chairman, Chief Executive Officer and Director | |
(Principal Executive Officer) |
1. | I have reviewed this report on Form 10-Q of Southwestern Public Service Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting |
/s/ BRIAN J. VAN ABEL | |
Brian J. Van Abel | |
Executive Vice President, Chief Financial Officer and Director | |
(Principal Financial Officer) |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of SPS as of the dates and for the periods expressed in the Form 10-Q. |
/s/ BEN FOWKE | |
Ben Fowke | |
Chairman, Chief Executive Officer and Director | |
(Principal Executive Officer) | |
/s/ BRIAN J. VAN ABEL | |
Brian J. Van Abel | |
Executive Vice President, Chief Financial Officer and Director | |
(Principal Financial Officer) |
Commitments and Contingencies SPP Filing to Assign GridLiance Facilities to SPS Rate Zone (Details) - Southwest Power Pool (SPP) - SPP Open Access Transmission Tariff Upgrade Costs - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended |
---|---|---|
Aug. 31, 2018 |
Mar. 31, 2020 |
|
Public Utilities, General Disclosures [Line Items] | ||
Annual Transmission Revenue Requirement Increase | $ 9.5 | |
Annual Transmission Revenue Requirement (Other Utilities) | 3.5 | |
SPS | ||
Public Utilities, General Disclosures [Line Items] | ||
Annual Transmission Revenue Requirement Increase (SPS) | $ 6.0 | $ 8.3 |
Selected Balance Sheet Data Accounts Receivable, Net (Details) - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts receivable, net | ||
Accounts receivable | $ 92.4 | $ 98.0 |
Less allowance for bad debts | (5.9) | (5.3) |
Accounts receivable, net | $ 86.5 | $ 92.7 |
Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles the difference between the statutory rate and the ETR:
(a) 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 credits are offset by corresponding revenue reductions.
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Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block] | Federal Audits — SPS is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows:
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Reconciliation of Unrecognized Tax Benefits | Unrecognized tax benefits — permanent vs temporary:
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Tax Benefits Associated with NOL and Tax Credit Carryforwards | Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards:
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Revenues |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | ue is classified by the type of goods/services rendered and market/customer type. SPS’ operating revenues consists of the following:
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Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
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, 2019, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.
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Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | e following include commitments, contingencies and unresolved contingencies that are material to SPS’ financial position. 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 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, would have a material effect on SPS’ financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. Rate Matters SPP OATT Upgrade Costs — Under the SPP OATT, costs of transmission upgrades may be recovered from other SPP customers whose transmission service depends on capacity enabled by the upgrade. 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 July 2018, SPS’ appeal to the D.C. Circuit over the FERC rulings granting SPP the right to recover these previously unbilled charges was remanded to the FERC. In February 2019, the FERC reversed its 2016 decision and ordered SPP to refund the charges retroactively collected from its transmission customers, including SPS, related to periods before September 2015. In April 2019, several parties, including SPP, filed requests for a rehearing. In February 2020, FERC issued an order rejecting all rehearing requests and providing certain clarifications. In March 2020, SPP and Oklahoma Gas & Electric separately filed petitions for review of FERC’s orders at the D.C. Circuit. SPS has intervened in both appeals in support of FERC. The timing of an appeals decision is uncertain. Any refunds received by SPS are expected to be given back to SPS customers through future rates. In October 2017, SPS filed a separate complaint against SPP asserting that SPP has assessed upgrade charges to SPS in violation of the SPP OATT. The FERC granted a rehearing for further consideration in May 2018. The timing of FERC action on the SPS rehearing is uncertain. If SPS’ complaint results in additional charges or refunds, SPS will seek to recover or refund the amounts through future SPS customer rates. SPP Filing to Assign GridLiance Facilities to SPS Rate Zone — In August 2018, SPP filed a request with the FERC to amend its OATT to include the costs of the GridLiance High Plains, LLC. facilities in the SPS rate zone. In a previous filing, the FERC determined that some of these facilities did not qualify as transmission facilities under the SPP OATT. SPP’s proposed tariff changes resulted in an increase in the ATRR of $9.5 million per year, with $6 million allocated to SPS’ retail customers. The remaining $3.5 million would be paid by other wholesale loads in the SPS rate zone. In September 2018, SPS protested the proposed SPP tariff charges, and asked the FERC to reject the SPP filing. On Oct. 31, 2018, the FERC issued an order accepting the proposed charges, subject to refund, as of Nov. 1, 2018, and set the case for settlement hearing procedures. Hearings are scheduled to begin in August 2020, and the ALJ’s initial decision is expected in February 2021. In addition, the chief administrative law judge has appointed a new settlement judge who has ordered additional settlement discussions prior to the scheduled hearing date. SPS has incurred approximately $8.3 million in associated charges as of March 31, 2020. SPS Filing to Modify Wholesale Transmission Rates — In 2018, SPS filed revisions to its wholesale transmission formula rate. The proposal includes an update to the depreciation rates for transmission plant. The new formula rate would also provide a credit to customers of “excess” ADIT resulting from the TCJA and recover certain wholesale regulatory commission expenses. The proposed changes would increase wholesale transmission revenues by approximately $9.4 million, with approximately $4.4 million of the total being recovered in SPP regional transmission rates. SPS proposed that the formula rate changes be effective Feb. 1, 2019. In January 2019, the FERC issued an order accepting the proposed rate changes as of Feb. 1, 2019, subject to refund and settlement procedures. On Dec. 23, 2019, SPS filed a Stipulation and Agreement of Settlement. If approved by the FERC, the settlement would implement the requested depreciation and TCJA related changes, but would not modify current treatment of wholesale regulatory commission expenses. Environmental MGP, Landfill and Disposal Sites — SPS is currently remediating a former disposal site. SPS has recognized its best estimate of costs/liabilities that will result from final resolution of these issues, however, the outcome and timing is unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. VIEs Under certain PPAs, SPS purchases power from IPPs for which SPS is required to reimburse fuel costs, or to participate in tolling arrangements under which SPS procures the natural gas required to produce the energy that it purchases. These specific PPAs create a variable interest in the IPP. SPS had approximately 1,197 MW of capacity under long-term PPAs at March 31, 2020 and Dec. 31, 2019 with entities that have been determined to be VIEs. SPS concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. Agreements have expiration dates through 2041.
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STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Comprehensive income: | ||
Net income | $ 42.7 | $ 54.1 |
Derivative instruments: | ||
Reclassification of loss to net income, net of tax of $0 | 0.0 | 0.0 |
Total other comprehensive income | 0.0 | 0.0 |
Total comprehensive income | $ 42.7 | $ 54.1 |
Letters of Credit (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
|
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 40.0 | $ 0.0 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 2.0 | $ 2.0 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of Credit, Term | 1 year |
Income Taxes Federal Audits (Details) |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Internal Revenue Service (IRS) [Member] | |
Investments, Owned, Federal Income Tax Note [Line Items] | |
Proposed Tax Adjustments | $ 0 |
Cover Page - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
May 07, 2020 |
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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 | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-3034 | |
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 |
BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Capitalization, Long-term Debt and Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 200 | 200 |
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares outstanding (in shares) | 100 | 100 |
Benefit Plans and Other Postretirement Benefits |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans and Other Postretirement Benefits | Components of Net Periodic Benefit Cost (Credit)
(a) The components of net periodic cost other than the service cost component are included in the line item “other (expense) income, net” in the income statement or capitalized on the balance sheet as a regulatory asset. In January 2020, contributions of $150.0 million were made across four of Xcel Energy’s pension plans, of which $14.4 million was attributable to SPS. Xcel Energy does not expect additional pension contributions during 2020.
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Borrowings and Other Financing Instruments |
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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 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:
Commercial Paper — Commercial paper outstanding for SPS was as follows:
Letters of Credit — SPS uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At both March 31, 2020 and Dec. 31, 2019, there were $2 million of letters of credit outstanding under the credit facility. The contract amounts of these letters of credit approximate their fair value and are subject to fees. Revolving 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. As of March 31, 2020, SPS had the following committed revolving credit facility available (in millions of dollars):
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. 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 as of March 31, 2020 and Dec. 31, 2019.
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Management's Opinion |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
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 U.S. GAAP, the financial position of SPS as of March 31, 2020 and Dec. 31, 2019; the results of its operations, including the components of net income and comprehensive income, and changes in stockholder’s equity for the three months ended March 31, 2020 and 2019; and its cash flows for the three months ended March 31, 2020 and 2019. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2020 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, 2019 balance sheet information has been derived from the audited 2019 financial statements included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2019. 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, 2019, filed with the SEC on Feb. 21, 2020. Due to the seasonality of SPS’ electric sales, interim results are not necessarily an appropriate base from which to project annual results.
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BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Current assets | ||
Cash and cash equivalents | $ 1.6 | $ 16.2 |
Accounts receivable, net | 86.5 | 92.7 |
Accounts receivable from affiliates | 13.5 | 4.2 |
Accrued unbilled revenues | 103.1 | 115.1 |
Inventories | 31.9 | 31.0 |
Regulatory assets | 21.0 | 20.0 |
Derivative instruments | 18.1 | 15.0 |
Prepaid taxes | 3.5 | 0.8 |
Prepayments and other | 23.6 | 21.4 |
Total current assets | 302.8 | 316.4 |
Property, plant and equipment, net | 6,774.8 | 6,631.6 |
Other assets | ||
Regulatory assets | 371.8 | 364.0 |
Derivative instruments | 13.3 | 12.6 |
Operating lease right-of-use assets | 515.8 | 522.4 |
Other | 3.3 | 3.9 |
Total other assets | 904.2 | 902.9 |
Total assets | 7,981.8 | 7,850.9 |
Current liabilities | ||
Short-term debt | 40.0 | 0.0 |
Borrowings Payable Under Utility Money Pool Arrangement | 100.0 | 0.0 |
Accounts payable | 167.6 | 168.1 |
Accounts payable to affiliates | 27.2 | 20.4 |
Regulatory liabilities | 139.5 | 118.1 |
Taxes accrued | 20.3 | 40.4 |
Accrued interest | 29.3 | 26.2 |
Dividends payable to parent | 47.6 | 46.3 |
Derivative instruments | 3.6 | 3.7 |
Operating Lease, Liability, Current | 27.4 | 26.9 |
Other | 31.3 | 30.7 |
Total current liabilities | 633.8 | 480.8 |
Deferred credits and other liabilities | ||
Deferred income taxes | 677.7 | 671.8 |
Regulatory liabilities | 726.5 | 732.3 |
Asset retirement obligations | 78.2 | 77.3 |
Derivative instruments | 11.9 | 12.8 |
Pension and employee benefit obligations | 51.9 | 67.0 |
Operating lease liabilities | 488.4 | 495.3 |
Other | 9.8 | 9.4 |
Total deferred credits and other liabilities | 2,044.4 | 2,065.9 |
Capitalization | ||
Long-term debt | 2,420.1 | 2,419.7 |
Common stock — 200 shares authorized of $1.00 par value; 100 shares outstanding at March 31, 2020 and Dec. 31, 2019, respectively | 0.0 | 0.0 |
Additional paid in capital | 2,382.9 | 2,350.9 |
Retained earnings | 502.0 | 535.0 |
Accumulated other comprehensive loss | (1.4) | (1.4) |
Total common stockholder’s equity | 2,883.5 | 2,884.5 |
Total liabilities and equity | $ 7,981.8 | $ 7,850.9 |
STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Interest charges and financing costs | ||
Other financing costs | $ 0.9 | $ 0.8 |
Credit Facility (Details) - Credit Facility |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2020
USD ($)
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Dec. 31, 2019
USD ($)
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Line of Credit Facility [Line Items] | ||||||
Credit Facility | [1] | $ 500,000,000 | ||||
Outstanding | [2] | 42,000,000 | ||||
Available | $ 458,000,000 | |||||
Number of extension you can request | 2 | |||||
Letters of Credit, Term | 1 year | |||||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | ||||
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Income Taxes Unrecognized Benefits (Details) - USD ($) |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefit - Permanent tax positions | $ 3,800,000 | $ 3,700,000 |
Unrecognized tax benefit - Temporary tax positions | 1,500,000 | 1,500,000 |
Total unrecognized tax benefit | 5,300,000 | 5,200,000 |
NOL and tax credit carryforwards | 4,600,000 | 4,400,000 |
Related NOLs and tax credit carryforwards | (1,600,000) | (1,400,000) |
Reasonably possible decrease in unrecognized tax benefits | 3,700,000 | |
Penalties related to unrecognized tax benefits | $ 0 | $ 0 |
Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Carrying Amount | $ 2,420.1 | $ 2,419.7 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 2,676.6 | $ 2,706.1 |
Commitments and Contingencies SPS Filing to Modify Wholesale Transmission Rates (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Public Utilities, General Disclosure [Abstract] | |
Amount proposed changes would increase wholesale transmission revenues | $ 9.4 |
Amount of proposed changes would be recoverable | $ 4.4 |
Accounting Pronouncements (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 01, 2020 |
Mar. 31, 2020 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit Losses, Topic 326 (ASC Topic 326) | $ 0.1 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit Losses, Topic 326 (ASC Topic 326) | $ 0.1 | $ 0.1 |
Revenues (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | SPS’ operating revenues consists of the following:
|
Fair Value of Financial Assets and Liabilities Commodity Derivatives (Details) - MWh MWh in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Electric Commodity [Member] | ||||
Derivative [Line Items] | ||||
Mwh of electricity | [1] | 8.1 | 6.4 | |
|
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Derivative instruments: | ||
Reclassification of losses to net income, tax | $ 0.0 | $ 0.0 |
Borrowings and Other Financing Instruments Commercial Paper (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
|
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 40,000,000.0 | $ 0 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 500,000,000 | 500,000,000 |
Amount outstanding at period end | 40,000,000 | 0 |
Average amount outstanding | 64,000,000 | 72,000,000 |
Maximum amount outstanding | $ 146,000,000 | $ 316,000,000 |
Weighted average interest rate, computed on a daily basis | 1.94% | 2.68% |
Weighted average interest rate at period end | 2.20% |
Income Taxes (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|||
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate, percent | 21.00% | 21.00% | ||
State tax (net of federal tax effect), percent | 2.30% | 2.10% | ||
Wind PTCs, percent | (35.70%) | 0.00% | ||
Plant regulatory differences, percent | [1] | (6.10%) | (4.60%) | |
Other tax credits, percent | (0.70%) | (0.60%) | ||
Other (net), percent | (0.70%) | (0.70%) | ||
Effective income tax rate, percent | (19.90%) | 17.20% | ||
|
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, 2018 | 100 | ||||
Beginning balance at Dec. 31, 2018 | $ 2,536.6 | $ 0.0 | $ 1,932.3 | $ 605.7 | $ (1.4) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 54.1 | 54.1 | |||
Other comprehensive income | 0.0 | ||||
Dividends declared to parent | (57.5) | (57.5) | |||
Ending balance (in shares) at Mar. 31, 2019 | 100 | ||||
Ending balance at Mar. 31, 2019 | $ 2,533.2 | $ 0.0 | 1,932.3 | 602.3 | (1.4) |
Beginning balance (in shares) at Dec. 31, 2019 | 100 | 100 | |||
Beginning balance at Dec. 31, 2019 | $ 2,884.5 | $ 0.0 | 2,350.9 | 535.0 | (1.4) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 42.7 | 42.7 | |||
Other comprehensive income | 0.0 | ||||
Dividends declared to parent | (75.6) | (75.6) | |||
Contributions of capital by parent | $ 32.0 | 32.0 | |||
Ending balance (in shares) at Mar. 31, 2020 | 100 | 100 | |||
Ending balance at Mar. 31, 2020 | $ 2,883.5 | $ 0.0 | $ 2,382.9 | 502.0 | $ (1.4) |
Increase (Decrease) in Stockholders' Equity | |||||
Credit Losses, Topic 326 (ASC Topic 326) | $ (0.1) | $ (0.1) |
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