Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

Note 7 to the financial statements included in SPS’ Annual Report on Form 10-K for the year ended Dec. 31, 2021 represents, in all material respects, the current status of other income tax matters except to the extent noted below, and are incorporated herein by reference.

Difference between the statutory rate and ETR:

	Three Months Ended March 31
	2022		2021
Federal statutory rate	21.0	%	21.0	%
State tax (net of federal tax effect)	2.5		2.6
Decreases in tax from:
Wind PTCs	(87.2)		(65.5)
Plant regulatory differences (a)	(4.0)		(4.7)
Amortization of excess nonplant deferred taxes	(1.1)		(1.2)
Other (net)	1.1		(0.9)
Effective income tax rate	(67.7)	%	(48.7)	%

(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.