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Fair Value of Financial Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity FTRs
(Amounts in Millions) (a)
Dec. 31, 2021Dec. 31, 2020
MWh of electricity8 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 SPS’ derivative assets and liabilities measured at fair value on a recurring basis were as follows:
Dec. 31, 2021Dec. 31, 2020
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:
Electric commodity$— $— $27 $27 $— $27 $— $— $7 $7 $— $7 
Total current derivative assets$— $— $27 $27 $— 27 $— $— $7 $7 $— 7 
PPAs (b)
3 3 
Current derivative instruments$30 $10 
Noncurrent derivative assets
PPAs (b)
$6 $9 
Noncurrent derivative instruments$6 $9 
Current derivative liabilities
Other derivative instruments:
PPAs (b)
$4 $4 
Current derivative instruments$4 $4 
Noncurrent derivative liabilities
PPAs (b)
$6 $9 
Noncurrent derivative instruments$6 $9 
(a)SPS nets derivative instruments and related collateral on its 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 Dec. 31, 2021 and 2020. At Dec. 31, 2021 and 2020, derivative assets and liabilities include no obligations to return cash collateral, respectively. At Dec. 31, 2021 and 2020, derivative assets and liabilities include no rights to reclaim cash collateral, respectively. 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 years ended Dec. 31, 2021, 2020 and 2019:
Year Ended Dec. 31
(Millions of Dollars)202120202019
Balance at Jan. 1$7 $12 $14 
Purchases10 23 27 
Settlements(79)(23)(34)
Net transactions recorded during the period:
Net gains (losses) recognized as regulatory assets89 (5)5 
Balance at Dec. 31$27 $7 $12 
Carrying Amount and Fair Value of Long-term Debt
20212020
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt$3,013 $3,454 $2,764 $3,381