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) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | 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 | Outstanding at July 28, 2022 | |||||||
Common Stock, $1.00 par value |
PART I | FINANCIAL INFORMATION | |||||||
Item 1 — | ||||||||
Item 2 — | ||||||||
Item 4 — | ||||||||
PART II | OTHER INFORMATION | |||||||
Item 1 — | ||||||||
Item 1A — | ||||||||
Item 6 — | ||||||||
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 | ||||
EPA | United States Environmental Protection Agency | ||||
FERC | Federal Energy Regulatory Commission | ||||
NMPRC | New Mexico Public Regulation Commission | ||||
PUCT | Public Utility Commission of Texas | ||||
SEC | Securities and Exchange Commission | ||||
Other | |||||
ACE | Affordable Clean Energy | ||||
BART | Best available retrofit technology | ||||
CEO | Chief executive officer | ||||
CFO | Chief financial officer | ||||
COVID-19 | Novel coronavirus | ||||
CPP | Clean Power Plan | ||||
ETR | Effective tax rate | ||||
FTR | Financial transmission right | ||||
GAAP | United States generally accepted accounting principles | ||||
IPP | Independent power producing entity | ||||
LP&L | Lubbock Power and Light | ||||
OATT | Open access transmission tariff | ||||
PPA | Power purchase agreement | ||||
PTC | Production tax credit | ||||
ROE | Return on equity | ||||
RTO | Regional Transmission Organization | ||||
SPP | Southwest Power Pool, Inc. | ||||
Measurements | |||||
MW | Megawatts |
Forward-Looking Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
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 income, net | |||||||||||||||||||||||
Allowance for funds used during construction — equity | |||||||||||||||||||||||
Interest charges and financing costs | |||||||||||||||||||||||
Interest charges — includes other financing costs of $ | |||||||||||||||||||||||
Allowance for funds used during construction — debt | ( | ( | ( | ( | |||||||||||||||||||
Total interest charges and financing costs | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
See Notes to Financial Statements |
Six Months Ended June 30 | |||||||||||
2022 | 2021 | ||||||||||
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 | ( | ( | |||||||||
Provision for bad debts | |||||||||||
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 | |||||||||||
Repayments of short-term borrowings, net | ( | ( | |||||||||
Proceeds from issuance of long-term debt, net | |||||||||||
Borrowings under utility money pool arrangement | |||||||||||
Repayments under utility money pool arrangement | ( | ( | |||||||||
Capital contributions from parent | |||||||||||
Dividends paid to parent | ( | ( | |||||||||
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 received for income taxes, net | |||||||||||
Supplemental disclosure of non-cash investing and financing transactions: | |||||||||||
Accrued property, plant and equipment additions | $ | $ | |||||||||
Inventory transfers to property, plant and equipment | |||||||||||
Allowance for equity funds used during construction |
June 30, 2022 | Dec. 31, 2021 | |||||||||||||
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 | ||||||||||||||
Operating lease liabilities | ||||||||||||||
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 — | ||||||||||||||
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 Stockholder's Equity | ||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Dividends declared to parent | ( | ( | |||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Dividends declared to parent | ( | ( | |||||||||||||||||||||||||||||||||
Contributions of capital by parent | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholder's Equity | ||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Dividends declared to parent | ( | ( | |||||||||||||||||||||||||||||||||
Contributions of capital by parent | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Dividends declared to parent | ( | ( | |||||||||||||||||||||||||||||||||
Contributions of capital by parent | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
See Notes to Financial Statements |
1. Summary of Significant Accounting Policies |
2. Accounting Pronouncements |
3. Selected Balance Sheet Data |
(Millions of Dollars) | June 30, 2022 | Dec. 31, 2021 | ||||||||||||
Accounts receivable, net | ||||||||||||||
Accounts receivable | $ | $ | ||||||||||||
Less allowance for bad debts | ( | ( | ||||||||||||
Accounts receivable, net | $ | $ |
(Millions of Dollars) | June 30, 2022 | Dec. 31, 2021 | ||||||||||||
Inventories | ||||||||||||||
Materials and supplies | $ | $ | ||||||||||||
Fuel | ||||||||||||||
Total inventories | $ | $ |
(Millions of Dollars) | June 30, 2022 | Dec. 31, 2021 | ||||||||||||
Property, plant and equipment, net | ||||||||||||||
Electric plant | $ | $ | ||||||||||||
Plant to be retired (a) | ||||||||||||||
CWIP | ||||||||||||||
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 June 30, 2022 | Year Ended Dec. 31, 2021 | ||||||||||||
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 June 30, 2022 | Year Ended Dec. 31, 2021 | ||||||||||||
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) | Drawn (b) | Available | ||||||||||||
$ | $ | $ |
5. Revenues |
Three Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Major revenue types | ||||||||||||||
Revenue from contracts with customers: | ||||||||||||||
Residential | $ | $ | ||||||||||||
Commercial and Industrial | ||||||||||||||
Other | ||||||||||||||
Total retail | ||||||||||||||
Wholesale | ||||||||||||||
Transmission | ||||||||||||||
Other | ||||||||||||||
Total revenue from contracts with customers | ||||||||||||||
Alternative revenue and other | ||||||||||||||
Total revenues | $ | $ | ||||||||||||
Six Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Major revenue types | ||||||||||||||
Revenue from contracts with customers: | ||||||||||||||
Residential | $ | $ | ||||||||||||
Commercial and Industrial | ||||||||||||||
Other | ||||||||||||||
Total retail | ||||||||||||||
Wholesale | ||||||||||||||
Transmission | ||||||||||||||
Other | ||||||||||||||
Total revenue from contracts with customers | ||||||||||||||
Alternative revenue and other | ||||||||||||||
Total revenues | $ | $ |
6. Income Taxes |
Six Months Ended June 30 | ||||||||||||||
2022 | 2021 | |||||||||||||
Federal statutory rate | % | % | ||||||||||||
State tax (net of federal tax effect) | ||||||||||||||
Increases (decreases) in tax from: | ||||||||||||||
Wind PTCs (a) | ( | ( | ||||||||||||
Plant regulatory differences (b) | ( | ( | ||||||||||||
Amortization of excess nonplant deferred taxes | ( | ( | ||||||||||||
Other (net) | ( | |||||||||||||
Effective income tax rate | ( | % | ( | % |
7. Fair Value of Financial Assets and Liabilities |
Amounts in Millions (a) | June 30, 2022 | Dec. 31, 2021 | ||||||||||||
Megawatt hours of electricity |
June 30, 2022 | Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Total | Netting (a) | Total | Fair Value | Fair Value Total | Netting (a) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other derivative instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Electric commodity (b) | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current derivative assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (c) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (c) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (c) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current derivative instruments | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPAs (c) | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent derivative instruments | $ | $ |
Three Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Balance at April 1 | $ | $ | ||||||||||||
Purchases/Issuances (a) | ||||||||||||||
Settlements (a) | ( | ( | ||||||||||||
Net transactions recorded during the period: | ||||||||||||||
Net gains recognized as regulatory assets and liabilities (a) | ||||||||||||||
Balance at June 30 | $ | $ | ||||||||||||
Six Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Balance at Jan. 1 | $ | $ | ||||||||||||
Purchases/Issuances (a) | ||||||||||||||
Settlements (a) | ( | ( | ||||||||||||
Net transactions recorded during the period: | ||||||||||||||
Net gains recognized as regulatory assets and liabilities (a) | ||||||||||||||
Balance at June 30 | $ | $ |
June 30, 2022 | Dec. 31, 2021 | |||||||||||||||||||||||||
(Millions of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Long-term debt | $ | $ | $ | $ |
8. Benefit Plans and Other Postretirement Benefits |
Three Months Ended June 30 | ||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost (a) | ||||||||||||||||||||||||||
Expected return on plan assets (a) | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of net loss (a) | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ( | |||||||||||||||||||||
Effects of regulation | ( | |||||||||||||||||||||||||
Net benefit cost recognized for financial reporting | $ | $ | $ | $ | ( |
Six Months Ended June 30 | ||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost (a) | ||||||||||||||||||||||||||
Expected return on plan assets (a) | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of net loss (gain) (a) | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ( | |||||||||||||||||||||
Effects of regulation | ||||||||||||||||||||||||||
Net benefit cost recognized for financial reporting | $ | $ | $ | $ | ( |
9. Commitments and Contingencies |
Three Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Operating leases | ||||||||||||||
PPA capacity payments | $ | $ | ||||||||||||
Other operating leases (a) | ||||||||||||||
Total operating lease expense (b) | $ | $ |
Six Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Operating leases | ||||||||||||||
PPA capacity payments | $ | $ | ||||||||||||
Other operating leases (a) | ||||||||||||||
Total operating lease expense (b) | $ | $ |
(Millions of Dollars) | PPA Operating Leases | Other Operating Leases | Total Operating Leases | |||||||||||||||||
Total minimum obligation | $ | $ | $ | |||||||||||||||||
Interest component of obligation | ( | ( | ( | |||||||||||||||||
Present value of minimum obligation | $ | $ | ||||||||||||||||||
Less current portion | ( | |||||||||||||||||||
Noncurrent operating lease liabilities | $ |
ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Results of Operations |
Six Months Ended June 30 | ||||||||||||||
(Millions of Dollars) | 2022 | 2021 | ||||||||||||
Electric revenues (a) | $ | 1,135 | $ | 1,432 | ||||||||||
Electric fuel and purchased power (a) | (519) | (945) | ||||||||||||
Electric margin | $ | 616 | $ | 487 |
(Millions of Dollars) | Six Months Ended June 30, 2022 vs. 2021 | |||||||
Revenue recognition for the Texas rate case surcharge (a) | $ | 85 | ||||||
Regulatory rate outcomes (Texas and New Mexico) | 50 | |||||||
Sales and demand | 33 | |||||||
Estimated impact of weather | 9 | |||||||
PTCs flowed back to customers (offset by lower ETR) | (19) | |||||||
Proprietary commodity trading, net of sharing (b) | (5) | |||||||
Other (net) | (24) | |||||||
Total increase | $ | 129 |
Public Utility Regulation and Other |
(Millions of Dollars) | Six Months Ended June 30, 2022 | |||||||
Revenue surcharge accrual | $ | 85 | ||||||
Depreciation and amortization | (43) | |||||||
O&M expenses | (16) | |||||||
Interest expense | (12) | |||||||
Taxes other than income taxes | (10) | |||||||
Fuel and purchased power | (2) | |||||||
Environmental |
ITEM 4 — CONTROLS AND PROCEDURES |
ITEM 1 — LEGAL PROCEEDINGS |
ITEM 1A — RISK FACTORS |
ITEM 6 — EXHIBITS |
Exhibit Number | Description | Report or Registration Statement | Exhibit Reference | ||||||||
3.01* | SPS Form 10-Q for the quarter ended Sept. 30, 2017 | 3.01 | |||||||||
3.02* | SPS Form 10-K for the year ended Dec. 31, 2018 | 3.02 | |||||||||
4.01* | SPS Form 8-K dated May 31, 2022 | 4.02 | |||||||||
101.INS | Inline 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 | Inline XBRL Schema | ||||||||||
101.CAL | Inline XBRL Calculation | ||||||||||
101.DEF | Inline XBRL Definition | ||||||||||
101.LAB | Inline XBRL Label | ||||||||||
101.PRE | Inline XBRL Presentation | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Southwestern Public Service Company | ||||||||
7/28/2022 | By: | /s/ BRIAN J. VAN ABEL | ||||||
Brian J. Van Abel | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
(Duly Authorized Officer and Principal Financial Officer) |
/s/ ROBERT C. FRENZEL | |||||
Robert C. Frenzel | |||||
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 | |||||
(Duly Authorized Officer and Principal Financial Officer) |
/s/ ROBERT C. FRENZEL | |||||
Robert C. Frenzel | |||||
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 | |||||
(Duly Authorized Officer and Principal Financial Officer) |
STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Operating revenues | ||||
Operating revenues | $ 658 | $ 498 | $ 1,135 | $ 1,432 |
Operating expenses | ||||
Electric fuel and purchased power | 282 | 252 | 519 | 945 |
Operating and maintenance expenses | 87 | 71 | 159 | 142 |
Demand side management expenses | 6 | 4 | 11 | 8 |
Depreciation and amortization | 132 | 78 | 210 | 156 |
Taxes (other than income taxes) | 33 | 18 | 58 | 39 |
Total operating expenses | 540 | 423 | 957 | 1,290 |
Operating income | 118 | 75 | 178 | 142 |
Other income, net | 1 | 0 | 1 | 1 |
Allowance for funds used during construction — equity | 1 | 1 | 1 | 2 |
Interest charges and financing costs | ||||
Interest charges — includes other financing costs of $1, $1, $2 and $2, respectively | 46 | 29 | 75 | 59 |
Allowance for funds used during construction — debt | (1) | (1) | (1) | (1) |
Total interest charges and financing costs | 45 | 28 | 74 | 58 |
Income before income taxes | 75 | 48 | 106 | 87 |
Income tax benefit | (18) | (20) | (39) | (39) |
Net income | $ 93 | $ 68 | $ 145 | $ 126 |
STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Interest charges and financing costs | ||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 1 | $ 1 | $ 2 | $ 2 |
BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200 | 200 |
Common Stock, Par or Stated Value Per Share | $ 1.00 | $ 1.00 |
Common Stock, Shares, Outstanding | 100 | 100 |
Legal $ in Millions |
Jun. 30, 2022
USD ($)
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Settled Litigation | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | $ 50 |
Management's Opinion |
6 Months Ended |
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Jun. 30, 2022 | |
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 GAAP, the financial position of SPS as of June 30, 2022 and Dec. 31, 2021; the results of SPS’ operations, including the components of net income and changes in stockholder’s equity for the three and six months ended June 30, 2022 and 2021; and SPS’ cash flows for the six months ended June 30, 2022 and 2021. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2022 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, 2021 balance sheet information has been derived from the audited 2021 financial statements included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2021. 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, 2021, filed with the SEC on Feb. 23, 2022. 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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Summary of Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2022 | |
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, 2021 appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | As of June 30, 2022, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on SPS’ financial statements. |
Selected Balance Sheet Data |
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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:
Commercial Paper — Commercial paper outstanding for SPS:
Letters of Credit — SPS uses letters of credit, generally with terms of one year, to provide financial guarantees for certain obligations. At both June 30, 2022 and Dec. 31, 2021, there were $2 million of letters of credit outstanding under the credit facility. Amounts approximate their fair value and are subject to fees. Revolving Credit Facility — In order to issue its commercial paper, 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 exceeding available capacity under this credit facility. The credit facility provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. 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. As of June 30, 2022, SPS had the following committed revolving credit facility available (in millions of dollars):
(a)Expires in June 2024. (b)Includes outstanding letters of credit. 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 June 30, 2022 and Dec. 31, 2021. Long-Term Borrowings During the six months ended June 30, 2022, SPS issued $200 million of 5.15% first mortgage bonds due June 1, 2052.
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Revenues |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue is classified by the type of goods/services rendered and market/customer type. SPS’ operating revenues consisted of the following:
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Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
Reconciliation between the statutory rate and ETR:
(a)Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b)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 taxes are offset by corresponding revenue reductions.
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Fair Value of Financial Assets and Liabilities |
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Fair Value of Financial Assets and Liabilities | Fair Value Measurements Accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. •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. •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. Specific valuation methods include: Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset value. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations and are generally assigned a Level 2 classification. When contractual settlements relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable inputs on a valuation is evaluated and may result in Level 3 classification. Electric commodity derivatives held by SPS include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from a RTO are financial instruments that entitle or obligate the holder to monthly revenues or charges based on transmission congestion across a given transmission path. The values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments. FTRs are recognized at estimated fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction values of FTRs, these fair value measurements have been assigned a Level 3. If costs of electric transmission congestion increase or decrease for a given path, the value of that particular instrument will likewise increase or decrease. Derivative Instruments Fair Value Measurements SPS enters into derivative instruments, including forward contracts, for trading purposes and to manage risk in connection with changes in interest rates and electric utility commodity prices. Interest Rate Derivatives — SPS may enter into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes. As of June 30, 2022, accumulated other comprehensive loss related to interest rate derivatives included immaterial net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings. As of June 30, 2022, SPS had no unsettled interest rate derivatives. Wholesale and Commodity Trading Risk — SPS conducts various wholesale and commodity trading activities, including the purchase and sale of electric capacity, energy and energy-related instruments, including derivatives. SPS is allowed to conduct these activities within guidelines and limitations as approved by its risk management committee, comprised of management personnel not directly involved in the activities governed by this policy. Sharing of any margins is determined through state regulatory proceedings as well as the operation of the FERC approved joint operating agreement. 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.
(a)Amounts are not reflective of net positions in the underlying commodities. Consideration of Credit Risk and Concentrations — SPS continuously monitors the creditworthiness of counterparties to its interest rate derivatives and commodity derivative contracts, prior to settlement, and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the balance sheets. SPS’ most significant concentrations of credit risk with particular entities or industries are contracts with counterparties to its wholesale, trading and non-trading commodity activities. At June 30, 2022, two of the eight most significant counterparties for these activities, comprising $10 million, or 26%, of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Five of the eight most significant counterparties, comprising $29 million, or 74%, of this credit exposure, were not rated by external ratings agencies, but based on SPS’ internal analysis, had credit quality consistent with investment grade. One of these significant counterparties, comprising an immaterial amount of this credit exposure, had credit quality less than investment grade, based on internal analysis. All eight of these significant counterparties are municipal or cooperative electric entities, RTOs or other utilities. Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — There were immaterial losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings for the three and six months ended June 30, 2022, respectively. There were no gains or immaterial losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings for the three and six months ended June 30, 2021, respectively. Changes in the fair value of FTRs resulting in pre-tax net gains $92 million and gains of $93 million were recognized for the three and six months ended June 30, 2022, respectively, were reclassified as regulatory assets or liabilities. Changes in the fair value of FTRs resulting in pre-tax net gains of $8 million and $10 million recognized for the three and six months ended June 30, 2021, respectively, were reclassified as regulatory assets or liabilities. The classification as a regulatory asset or liability is based on expected recovery of FTR settlements through fuel and purchased energy cost recovery mechanisms. FTR settlement losses of $24 million and losses of $34 million were recognized for the three and six months ended June 30, 2022, respectively, and were recorded to electric fuel and purchased power. FTR settlement losses of $4 million and gains of $11 million were recognized for the three and six months ended June 30, 2021, respectively, and were recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms and reclassified out of income as regulatory assets or liabilities, as appropriate. All FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value. SPS had immaterial derivative instruments designated as fair value hedges during the three and six months ended June 30, 2022 and 2021. Recurring Fair Value Measurements — SPS’ derivative assets and liabilities measured at fair value on a recurring basis were as follows:
(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 June 30, 2022 and Dec. 31, 2021. At June 30, 2022 and Dec. 31, 2021, 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)Amounts relate to FTR instruments administered by SPP (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income. (c)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 for the three and six months ended June 30, 2022 and 2021:
(a)Relates primarily to FTR instruments administered by SPP (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income. SPS recognizes transfers between levels as of the beginning of each period. There were no transfers of amounts between levels for derivative instruments for the three and six months ended June 30, 2022 and 2021.Fair Value of Long-Term Debt Other financial instruments for which the carrying amount did not equal fair value:
Fair value of SPS’ long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. Fair value estimates are based on information available to management as of June 30, 2022 and Dec. 31, 2021 and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2.
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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 income, net” in the statements of income or capitalized on the balance sheets as a regulatory asset. In January 2022, contributions of $50 million were made across four of Xcel Energy’s pension plans, none of which was attributable to SPS. Xcel Energy does not expect additional pension contributions during 2022.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | The following includes 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, 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. Legal fees are generally expensed as incurred. Other Litigation — In 2019, SPS and Xcel Energy Services, Inc. were served with a lawsuit related to a traffic accident that resulted in two fatalities in New Mexico. An estimate of a probable loss contingency of approximately $50 million was recorded as of June 30, 2022 within Other current liabilities. In July 2022, a confidential settlement was reached. No impact to earnings has or is expected to occur, as the amounts are expected to be reimbursed by SPS’ insurers. An offsetting asset has been recorded to reflect the reimbursement within Prepayments and other current assets. Rate Matters and Other SPS is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the financial statements. SPP OATT Upgrade Costs — Costs of transmission upgrades may be recovered from other SPP customers whose transmission service depends on capacity enabled by the upgrade under the SPP OATT. 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 previously unbilled charges was remanded to the FERC. In February 2019, the FERC reversed its 2016 decision and ordered SPP to refund charges retroactively collected from its transmission customers, including SPS, related to periods before September 2015. In March 2020, SPP and Oklahoma Gas & Electric separately filed petitions for review of the FERC’s orders at the D.C. Circuit. In August 2021, the D.C. Circuit issued a decision denying these appeals and upholding the FERC’s orders. Refunds received by SPS are expected to be given back to SPS customers through future rates. In October 2017, SPS filed a separate related complaint asserting SPP assessed upgrade charges to SPS in violation of the SPP OATT. In March 2018, the FERC issued an order denying the SPS complaint. SPS filed a request for rehearing in April 2018. The FERC issued a tolling order granting a rehearing for further consideration in May 2018. If SPS’ complaint results in additional charges or refunds, SPS will seek to recover or refund the amount through future SPS customer rates. In October 2020, SPS filed a petition for review of the FERC’s March 2018 order and May 2018 tolling order at the D.C. Circuit. In February 2022, FERC issued an order rejecting SPS’ request for hearing. SPS has appealed that order. That appeal has been combined with SPS’ prior appeal. Contract Termination — SPS and LP&L have a 25-year, 170 MW partial requirements contract. In May 2021, SPS and LP&L finalized a settlement which would terminate the contract upon LP&L’s move from the SPP to the Electric Reliability Council of Texas (expected in 2023). The settlement agreement requires LP&L to pay SPS $78 million, to the benefit of SPS’ remaining customers. LP&L would remain obligated to pay for SPP transmission charges associated with LP&L’s load in SPP. The agreement is subject to approval by the PUCT and FERC. Environmental Manufactured Gas Plant, Landfill and Disposal Sites SPS is remediating a former disposal site. SPS has recognized its best estimate of costs/liabilities from final resolution of these issues, however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. Leases SPS evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset. Components of lease expense:
(a)Includes immaterial short-term lease expense for 2022 and 2021. (b)PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power.
(a)Includes immaterial short-term lease expense for 2022 and 2021. (b)PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power. Commitments under operating leases as of June 30, 2022:
Variable Interest Entities 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 they purchase. These specific PPAs create a variable interest in the IPP. SPS had approximately 1,197 MW of capacity under long-term PPAs at both June 30, 2022 and Dec. 31, 2021 with entities that have been determined to be variable interest entities. 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. The PPAs have expiration dates through 2041.
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Selected Balance Sheet Data (Tables) |
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Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net |
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Borrowings and Other Financing Instruments (Tables) |
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Borrowings and Other Financing Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities | As of June 30, 2022, SPS had the following committed revolving credit facility available (in millions of dollars):
(a)Expires in June 2024. (b)Includes outstanding letters of credit.
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Borrowings and Other Financing Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings | Money pool borrowings for SPS:
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Short-Term Borrowings | Commercial paper outstanding for SPS:
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Revenues (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | SPS’ operating revenues consisted of the following:
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Income Taxes (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory rate and ETR:
(a)Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b)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 taxes are offset by corresponding revenue reductions.
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Fair Value of Financial Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Notional Amounts of Commodity FTRs |
(a)Amounts are not reflective of net positions in the underlying commodities.
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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 were as follows:
(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 June 30, 2022 and Dec. 31, 2021. At June 30, 2022 and Dec. 31, 2021, 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)Amounts relate to FTR instruments administered by SPP (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income. (c)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.
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Changes in Level 3 Commodity Derivatives | Changes in Level 3 commodity derivatives for the three and six months ended June 30, 2022 and 2021:
(a)Relates primarily to FTR instruments administered by SPP (annual auctions occurring in the second quarter). These instruments are utilized/intended to offset the impacts of transmission system congestion. Higher congestion costs have led to an increase in the fair value of FTRs. Due to regulatory recovery, changes in fair value are deferred as a regulatory asset or liability and do not have a material impact on net income.
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Carrying Amount and Fair Value of Long-term Debt | Other financial instruments for which the carrying amount did not equal fair value:
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Benefit Plans and Other Postretirement Benefits (Tables) |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (Credit) | 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 income, net” in the statements of income or capitalized on the balance sheets as a regulatory asset.
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Commitments and Contingencies (Tables) |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 |
Jun. 30, 2022 |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | Components of lease expense:
(a)Includes immaterial short-term lease expense for 2022 and 2021. (b)PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power.
(a)Includes immaterial short-term lease expense for 2022 and 2021. (b)PPA capacity payments are included in electric fuel and purchased power on the statements of income. Expense for other operating leases is included in operating and maintenance expense and electric fuel and purchased power.
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Lessee, Operating Lease, Liability, Maturity | Commitments under operating leases as of June 30, 2022:
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Selected Balance Sheet Data Accounts Receivable, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts receivable, net | ||
Accounts receivable | $ 176 | $ 127 |
Less allowance for bad debts | (12) | (12) |
Accounts receivable, net | $ 164 | $ 115 |
Selected Balance Sheet Data Selected Balance Sheet Data Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventories | $ 60 | $ 51 |
Inventory, Net | 60 | 51 |
Materials and supplies | ||
Inventories | 35 | 29 |
Fuel | ||
Inventories | $ 25 | $ 22 |
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 10,331 | $ 10,109 | ||
Accumulated depreciation | (2,393) | (2,271) | ||
Property, plant and equipment, net | 7,938 | 7,838 | ||
Electric plant | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 9,892 | 9,639 | ||
Plant to be Retired | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | [1] | 275 | 299 | |
Construction work in progress | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 164 | $ 171 | ||
|
Borrowings and Other Financing Instruments - Money Pool (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Short-term Debt [Line Items] | ||
Short-term Debt | $ 0 | $ 137 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 100 | 100 |
Short-term Debt | 0 | 91 |
Average amount outstanding | 65 | 51 |
Maximum amount outstanding | $ 100 | $ 100 |
Weighted average interest rate, computed on a daily basis | 0.44% | 0.05% |
Weighted average interest rate at period end | 0.05% | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | $ 500 | $ 500 |
Short-term Debt | 0 | 137 |
Average amount outstanding | 150 | 63 |
Maximum amount outstanding | $ 264 | $ 342 |
Weighted average interest rate, computed on a daily basis | 0.97% | 0.21% |
Weighted average interest rate at period end | 0.26% |
Borrowings and Other Financing Instruments - Commercial Paper (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Short-term Debt [Line Items] | ||
Short-term Debt | $ 0 | $ 137 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 500 | 500 |
Short-term Debt | 0 | 137 |
Average amount outstanding | 150 | 63 |
Maximum amount outstanding | $ 264 | $ 342 |
Weighted average interest rate, computed on a daily basis | 0.97% | 0.21% |
Weighted average interest rate at period end | 0.26% |
Borrowings and Other Financing Instruments - Letters of Credit (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Line of Credit Facility [Line Items] | ||
Short-term Debt | $ 0 | $ 137,000,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Short-term Debt | $ 2,000,000 | 2,000,000 |
Debt Instrument, Term | 1 year | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 |
Borrowings and Other Financing Instruments - Credit Facility (Details) |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
Plan
|
Dec. 31, 2021
USD ($)
|
|||||
Line of Credit Facility [Line Items] | ||||||
Number of extension you can request | Plan | 2 | |||||
Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit Facility | [1] | $ 500,000,000 | ||||
Outstanding | [2] | 2,000,000 | ||||
Available | 498,000,000 | |||||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | ||||
|
Borrowings and Other Financing Instruments - Long-Term Borrowings (Details) - Series Due June 1, 2052 - Bonds [Member] |
Jun. 30, 2022
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 200,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% |
Borrowings and Other Financing Instruments - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
Short-term Debt | $ 0 | $ 137 |
Income Taxes (Details) |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|||||
Income Tax Disclosure [Abstract] | ||||||
Federal statutory rate, percent | 21.00% | 21.00% | ||||
State tax (net of federal tax effect), percent | 2.50% | 2.60% | ||||
Wind PTCs, percent | [1] | (55.80%) | (61.60%) | |||
Plant regulatory differences, percent | [2] | (4.00%) | (5.00%) | |||
Other tax credits, percent | (1.10%) | (1.20%) | ||||
Other (net), percent | 0.60% | (0.60%) | ||||
Effective income tax rate, percent | (36.80%) | (44.80%) | ||||
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Fair Value of Financial Assets and Liabilities - Commodity Derivatives (Details) - MWh MWh in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Electric Commodity [Member] | ||||
Derivative [Line Items] | ||||
Mwh of electricity | [1] | 18 | 8 | |
|
Fair Value of Financial Assets and Liabilities - Consideration of Credit Risk Concentrations (Details) - Credit Concentration Risk $ in Millions |
Jun. 30, 2022
USD ($)
Counterparty
|
---|---|
Derivative [Line Items] | |
Significant counterparties | 8 |
Municipal or cooperative electric entities or other utilities | |
Derivative [Line Items] | |
Significant counterparties | 8 |
External credit rating, investment grade | |
Derivative [Line Items] | |
Significant counterparties | 2 |
Credit exposure | $ | $ 10 |
Credit exposure, percentage | 26.00% |
Internal investment grade | |
Derivative [Line Items] | |
Significant counterparties | 5 |
Credit exposure | $ | $ 29 |
Credit exposure, percentage | 74.00% |
External Credit Rating, Non Investment Grade [Member] | |
Derivative [Line Items] | |
Significant counterparties | 1 |
Fair Value of Financial Assets and Liabilities - Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Other Derivative Instruments | Electric Commodity | ||||
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Changes in fair value of FTRs pre-tax gains | 92 | 8 | 93 | 10 |
FTR settlement gains | $ 24 | $ 4 | $ 34 | $ (11) |
Fair Value of Financial Assets and Liabilities - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
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Derivatives, Fair Value | |||||||||||||||
Reclaim Cash Collateral | $ 0 | $ 0 | $ 0 | ||||||||||||
Return Cash Collateral | 0 | 0 | 0 | ||||||||||||
Commodity Contract [Member] | |||||||||||||||
Changes in Level 3 Commodity Derivatives | |||||||||||||||
Balance at beginning of period | 32 | $ 12 | 27 | $ 7 | |||||||||||
Purchases | [1] | 232 | 9 | 237 | 9 | ||||||||||
Settlements | [1] | (85) | (12) | (94) | (21) | ||||||||||
Net gains recognized as regulatory assets and liabilities | [1] | 105 | 32 | 114 | 46 | ||||||||||
Balance at end of period | 284 | 41 | 284 | 41 | |||||||||||
Transfers Level 3, Net | 0 | $ 0 | 0 | $ 0 | |||||||||||
Other Current Assets | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, net | 287 | 287 | 30 | ||||||||||||
Other Noncurrent Assets | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, net | 5 | 5 | 6 | ||||||||||||
Other Current Liabilities | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative liability, net | 4 | 4 | 4 | ||||||||||||
Other Noncurrent Liabilities | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative liability, net | 4 | 4 | 6 | ||||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | 284 | 284 | 27 | ||||||||||||
Asset, netting | [2] | 0 | 0 | 0 | |||||||||||
Derivative asset, net | 284 | 284 | 27 | ||||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 1 | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | 0 | 0 | 0 | ||||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 2 | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | 0 | 0 | 0 | ||||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 3 | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | 284 | 284 | 27 | ||||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | [3] | 284 | 284 | 27 | |||||||||||
Asset, netting | [2],[3] | 0 | 0 | 0 | |||||||||||
Derivative asset, net | [3] | 284 | 284 | 27 | |||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Electric Commodity | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | [3] | 0 | 0 | 0 | |||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 2 | Electric Commodity | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | [3] | 0 | 0 | 0 | |||||||||||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 3 | Electric Commodity | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, gross | [3] | 284 | 284 | 27 | |||||||||||
Fair Value, Measurements, Nonrecurring | Other Current Assets | PPAs | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, net | [4] | 3 | 3 | 3 | |||||||||||
Fair Value, Measurements, Nonrecurring | Other Noncurrent Assets | PPAs | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative asset, net | [4] | 5 | 5 | 6 | |||||||||||
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | PPAs | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative liability, net | 4 | [4] | 4 | [4] | 4 | ||||||||||
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | PPAs | |||||||||||||||
Derivatives, Fair Value | |||||||||||||||
Derivative liability, net | $ 4 | [4] | $ 4 | [4] | $ 6 | ||||||||||
|
Fair Value of Financial Assets and Liabilities - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Carrying Amount | $ 3,210 | $ 3,013 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 2,890 | $ 3,454 |
Commitments and Contingencies - SPP OATT Upgrade Costs (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Southwest Power Pool (SPP) | SPP Open Access Transmission Tariff Upgrade Costs | |
Public Utilities, General Disclosures [Line Items] | |
Charges For Transmission Service Upgrades | $ 13 |
Contract Termination (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
MW
| |
Commitments and Contingencies Disclosure [Abstract] | |
Megawatts, Lubbock Power and Light contract | MW | 170 |
Lubbock Power and Light contract length | 25 years |
Settlement Agreement Payment, Lubbock Power and Light Contract | $ | $ 78 |
Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|||||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||||||||
Operating Lease, Cost | $ 14 | [1] | $ 14 | [1] | $ 29 | [2] | $ 28 | [2] | |||||||||
Lessee, Operating Lease, Liability, to be Paid | 575 | 575 | |||||||||||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (126) | (126) | |||||||||||||||
Operating Lease, Liability | 449 | 449 | |||||||||||||||
Operating Lease, Liability, Current | (30) | (30) | $ (30) | ||||||||||||||
Operating lease liabilities | 419 | 419 | $ 434 | ||||||||||||||
PPAs | |||||||||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||||||||
Operating Lease, Cost | 13 | 13 | 26 | 26 | |||||||||||||
Lessee, Operating Lease, Liability, to be Paid | 520 | 520 | |||||||||||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (111) | (111) | |||||||||||||||
Operating Lease, Liability | 409 | 409 | |||||||||||||||
Property, Plant and Equipment, Other Types | |||||||||||||||||
Lessee, Lease, Description [Line Items] | |||||||||||||||||
Operating Lease, Cost | 1 | [3] | $ 1 | [3] | 3 | [4] | $ 2 | [4] | |||||||||
Lessee, Operating Lease, Liability, to be Paid | 55 | 55 | |||||||||||||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (15) | (15) | |||||||||||||||
Operating Lease, Liability | $ 40 | $ 40 | |||||||||||||||
|
Commitments and Contingencies - Variable Interest Entities (Details) - MW |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Purchased Power Agreements [Abstract] | ||
Generating capacity (in MW) | 1,197 | 1,197 |
Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income Tax Expense (Benefit) | $ (18) | $ (20) | $ (39) | $ (39) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of period | 3,603 | |||
Accumulated other comprehensive loss at end of period | $ 3,847 | $ 3,847 |
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