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Borrowings and Other Financing Instruments
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Borrowings and Other Financing Instruments
5. 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:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2023Year Ended Dec. 31
202320222021
Borrowing limit$100 $100 $100 $100 
Amount outstanding at period end27 27 — 91 
Average amount outstanding14 46 35 51 
Maximum amount outstanding44 100 100 100 
Weighted average interest rate, computed on a daily basis5.34 %5.04 %0.44 %0.05 %
Weighted average interest rate at end of period5.34 5.34 N/A0.05 
Commercial Paper — Commercial paper outstanding:
(Millions of Dollars, Except Interest Rates)Three Months Ended Dec. 31, 2023Year Ended Dec. 31
202320222021
Borrowing limit$500 $500 $500 $500 
Amount outstanding at period end75 75 34 137 
Average amount outstanding18 50 100 63 
Maximum amount outstanding95 119 324 342 
Weighted average interest rate, computed on a daily basis5.54 %5.12 %0.79 %0.21 %
Weighted average interest rate at end of period5.56 5.56 4.55 0.26 
Letters of Credit — SPS may use letters of credit, typically with terms of one year, to provide financial guarantees for certain operating obligations. At Dec. 31, 2023 and 2022, there were $0 and $2 million of letters of credit outstanding under the credit facility, respectively. The contract amounts of these letters of credit approximate their fair value and are subject to fees.
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.
Features of SPS’ credit facility:
Debt-to-Total Capitalization Ratio (a)
Amount Facility May Be Increased (millions of dollars)
Additional Periods for Which a One-Year Extension May Be Requested (b)
20232022
46.1%45.7%$502
(a)The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%.
(b)All extension requests are subject to majority bank group approval.
The credit facility has a cross-default provision that SPS would be in default on its borrowings under the facility if SPS or any of its future significant subsidiaries whose total assets exceed 15% of SPS’ total assets default on indebtedness in an aggregate principal amount exceeding $75 million.
If SPS does not comply with the covenant, an event of default may be declared, and if not remedied, any outstanding amounts due under the facility can be declared due by the lender. As of Dec. 31, 2023, SPS was in compliance with all financial covenants.
SPS had the following committed credit facility available as of Dec. 31, 2023 (in millions) of dollars:
Credit Facility (a)
Drawn (b)
Available
$500 $75 $425 
(a)This credit facility matures in September 2027.
(b)Includes letters of credit and outstanding commercial paper.
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 facility outstanding at Dec. 31, 2023 and 2022.
Long-Term Borrowings and Other Financing Instruments
Generally, the property of SPS is subject to the lien of its first mortgage indenture for the benefit of bondholders. Debt premiums, discounts and expenses are amortized over the life of the related debt. The premiums, discounts and expenses for refinanced debt are deferred and amortized over the life of the new issuance.
Long-term debt obligations for SPS as of Dec. 31 (in millions of dollars):
Financing InstrumentInterest RateMaturity Date20232022
First mortgage bonds3.30 %June 15, 2024$150 $150 
First mortgage bonds3.30 June 15, 2024200 200 
Unsecured senior notes6.00 Oct. 1, 2033100 100 
Unsecured senior notes6.00 Oct. 1, 2036250 250 
First mortgage bonds4.50 Aug. 15, 2041200 200 
First mortgage bonds4.50 Aug. 15, 2041100 100 
First mortgage bonds4.50 Aug. 15, 2041100 100 
First mortgage bonds3.40 Aug. 15, 2046300 300 
First mortgage bonds3.70 Aug. 15, 2047450 450 
First mortgage bonds4.40 Nov. 15, 2048300 300 
First mortgage bonds 3.75 June 15, 2049300 300 
First mortgage bonds3.15 May 1, 2050350 350 
First mortgage bonds3.15 May 1, 2050250 250 
First mortgage bonds (a)
5.15 June 1, 2052200 200 
First mortgage bonds (b)
6.00 Sept. 15, 2053100 — 
Unamortized discount(10)(10)
Unamortized debt issuance cost(29)(29)
Current maturities(350)— 
Total long-term debt$2,961 $3,211 
(a)2022 financing.
(b)2023 financing.
Maturities of long-term debt:
(Millions of Dollars)
2024$350 
2025— 
2026— 
2027— 
2028— 
Deferred Financing Costs — Deferred financing costs of approximately $29 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt at Dec. 31, 2023 and 2022, respectively.
Capital Stock — SPS has the following preferred stock:
Preferred Stock Authorized (Shares)Par Value of Preferred StockPreferred Stock Outstanding (Shares) 2023 and 2022
10,000,000 1.00 — 
Dividend Restrictions — SPS dividends are subject to the FERC’s jurisdiction, which prohibits the payment of dividends out of capital accounts. Dividends are solely to be paid from retained earnings. SPS is required to be current on particular interest payments before dividends can be paid.
SPS’ state regulatory commissions additionally impose dividend limitations, which are more restrictive than those imposed by the FERC.
Requirements and actuals as of Dec. 31, 2023:
Equity to Total Capitalization Ratio
Required Range
Equity to Total Capitalization Ratio Actual (a)
LowHigh2023
45.0 %55.0 %54.6 %
(a)Excludes short-term debt.
Unrestricted Retained EarningsTotal Capitalization
Limit on Total Capitalization (a)
$617  million$7,298 millionN/A
(a)SPS may not pay a dividend that would cause it to lose its investment grade bond rating.