Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Estimated Minimum Purchases Under Fuel Contracts

The estimated minimum purchases for SPS under these contracts as of Dec. 31, 2012, are as follows:

(Millions of Dollars)	Coal		Natural gas supply		Natural gas storage and transportation
2013	$	317.3	$	45.1	$	27.7
2014		236.3		12.0		23.5
2015		196.8		-		22.1
2016		50.3		-		22.1
2017		40.9		-		21.3
Thereafter		-		-		112.1
Total	$	841.6	$	57.1	$	228.8

Estimated Future Payments for Capacity Pursuant to Purchased Power Agreements

Included in electric fuel and purchased power expenses for PPAs accounted for as executory contracts, were payments for capacity of $36.2 million, $39.7 million and $42.0 million in 2012, 2011 and 2010, respectively. At Dec. 31, 2012, the estimated future payments for capacity that SPS is obligated to purchase pursuant to these executory contracts, subject to availability, are as follows:

(Millions of Dollars)
2013	$	40.7
2014		54.7
2015		58.8
2016		59.3
2017		60.5
Thereafter		130.0
Total (a)	$	404.0

(a)	Excludes contingent energy payments for renewable energy PPAs.

Future Commitments Under Operating Leases

Included in the future commitments under operating leases are estimated future capacity payments under PPAs that have been accounted for as operating leases in accordance with the applicable guidance. Future commitments under operating leases are:

					Total
	Operating		PPA		Operating
(Millions of Dollars)	Leases		Operating Leases (a) (b)		Leases
2013	$	2.9	$	52.3	$	55.2
2014		3.0		49.7		52.7
2015		3.1		44.4		47.5
2016		3.0		44.5		47.5
2017		2.1		44.5		46.6
Thereafter		13.6		699.6		713.2

(a)	Amounts do not include PPAs accounted for as executory contracts.

(b)	PPA operating leases contractually expire through 2033.

Asset Retirement Obligations

A reconciliation of SPS' AROs is shown in the tables below for the years ended Dec. 31, 2012 and 2011:

(Thousands of Dollars)	Beginning Balance Jan. 1, 2012		Liabilities Settled		Accretion		Revisions to Prior Estimates			Ending Balance Dec. 31, 2012
Steam production asbestos	$	20,803	$	-	$	1,422	$	(11,246	)	$	10,979
Steam production ash containment		719		-		45		-			764
Electric transmission and distribution		5,744		-		208		(88	)		5,864
Total liability	$	27,266	$	-	$	1,675	$	(11,334	)	$	17,607

(Thousands of Dollars)	Beginning Balance Jan. 1, 2011		Liabilities Settled			Accretion		Revisions to Prior Estimates		Ending Balance Dec. 31, 2011
Steam production asbestos	$	19,960	$	(514	)	$	1,357	$	-	$	20,803
Steam production ash containment		345		-			22		352		719
Electric transmission and distribution		826		-			49		4,869		5,744
Total liability	$	21,131	$	(514	)	$	1,428	$	5,221	$	27,266

- Definition

Tabular disclosure of information concerning the terms and significance of long term contracts to purchase power (generally referred to as purchase power agreements (PPAs) or power sale agreements (PSAs)) including date of contract expiration, share of plant output being purchased, estimated annual cost, annual minimum debt service payment required and amount of related long-term debt or lease obligations outstanding.

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- Definition

Tabular disclosure of unconditional purchase obligations that are not recognized as a liability on the balance sheet, including the nature and significant terms of an unconditional purchase obligation; the amount of the fixed and determinable portion of the obligation as of the date of the latest balance sheet presented in the aggregate and, if determinable, for each of the five succeeding fiscal years; the nature of any variable components of the obligation; the amount purchased under the obligation (for example, the take-or-pay or throughput contract) for the reporting period; and may include the amount of imputed interest necessary to reduce the obligation to present value.

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