Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Entity Registrant Name | SOUTHWESTERN PUBLIC SERVICE CO | |
Entity Central Index Key | 0000092521 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-3034 | |
Entity Tax Identification Number | 75-0575400 | |
Entity Incorporation, State or Country Code | NM | |
Entity Address, Address Line One | 790 South Buchanan Street | |
Entity Address, City or Town | Amarillo | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79101 | |
City Area Code | 303 | |
Local Phone Number | 571-7511 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 100 | ||||
Beginning balance at Dec. 31, 2017 | $ 2,130.3 | $ 0 | $ 1,590.2 | $ 541.6 | $ (1.5) |
Increase (Decrease) in Stockholders' Equity | |||||
Other comprehensive income | 0.1 | 0.1 | |||
Ending balance (in shares) at Jun. 30, 2018 | 100 | ||||
Ending balance at Jun. 30, 2018 | 2,159.1 | $ 0 | 1,591.4 | 569.2 | (1.5) |
Beginning balance (in shares) at Dec. 31, 2017 | 100 | ||||
Beginning balance at Dec. 31, 2017 | 2,130.3 | $ 0 | 1,590.2 | 541.6 | (1.5) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 173.1 | 173.1 | |||
Other comprehensive income | 0.1 | ||||
Dividends declared to parent | (104) | (104) | |||
Contributions of capital by parent | 181.2 | 181.2 | |||
Ending balance (in shares) at Sep. 30, 2018 | 100 | ||||
Ending balance at Sep. 30, 2018 | 2,380.7 | $ 0 | 1,771.4 | 610.7 | (1.4) |
Beginning balance (in shares) at Jun. 30, 2018 | 100 | ||||
Beginning balance at Jun. 30, 2018 | 2,159.1 | $ 0 | 1,591.4 | 569.2 | (1.5) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 81.5 | 81.5 | |||
Other comprehensive income | 0.1 | ||||
Dividends declared to parent | (40) | (40) | |||
Contributions of capital by parent | 180 | 180 | |||
Ending balance (in shares) at Sep. 30, 2018 | 100 | ||||
Ending balance at Sep. 30, 2018 | $ 2,380.7 | $ 0 | 1,771.4 | 610.7 | (1.4) |
Beginning balance (in shares) at Dec. 31, 2018 | 100 | 100 | |||
Beginning balance at Dec. 31, 2018 | $ 2,536.6 | $ 0 | 1,932.3 | 605.7 | (1.4) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 218 | 218 | |||
Other comprehensive income | 0.1 | 0.1 | |||
Dividends declared to parent | (255.5) | (255.5) | |||
Contributions of capital by parent | $ 393 | 393 | |||
Ending balance (in shares) at Sep. 30, 2019 | 100 | 100 | |||
Ending balance at Sep. 30, 2019 | $ 2,892.2 | $ 0 | 2,325.3 | 568.2 | (1.3) |
Beginning balance (in shares) at Jun. 30, 2019 | 100 | ||||
Beginning balance at Jun. 30, 2019 | 2,883.7 | $ 0 | 2,307.3 | 577.7 | (1.3) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 105.1 | 105.1 | |||
Other comprehensive income | 0 | ||||
Dividends declared to parent | (114.6) | (114.6) | |||
Contributions of capital by parent | $ 18 | 18 | |||
Ending balance (in shares) at Sep. 30, 2019 | 100 | 100 | |||
Ending balance at Sep. 30, 2019 | $ 2,892.2 | $ 0 | $ 2,325.3 | $ 568.2 | $ (1.3) |
STATEMENTS OF INCOME (UNAUDITED
STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating revenues | ||||
Operating revenues | $ 533.1 | $ 540.1 | $ 1,397.7 | $ 1,468.6 |
Operating expenses | ||||
Electric fuel and purchased power | 240.2 | 284 | 651 | 795.6 |
Operating and maintenance expenses | 74.1 | 71.5 | 216.6 | 203.7 |
Demand side management expenses | 4.5 | 4.6 | 12.9 | 13.5 |
Depreciation and amortization | 61.3 | 52.2 | 172.3 | 150.2 |
Taxes (other than income taxes) | 17.6 | 16.8 | 53.1 | 50 |
Total operating expenses | 397.7 | 429.1 | 1,105.9 | 1,213 |
Operating income | 135.4 | 111 | 291.8 | 255.6 |
Other income (expense), net | 1.5 | (1) | 2.4 | (2.4) |
Allowance for funds used during construction — equity | 3.2 | 5 | 22.2 | 11.6 |
Interest charges and financing costs | ||||
Interest charges — includes other financing costs of $0.9, $0.7, $2.5 and $2.1, respectively | 26 | 21 | 76 | 61.8 |
Allowance for funds used during construction — debt | (1.5) | (2.2) | (10.2) | (5.5) |
Total interest charges and financing costs | 24.5 | 18.8 | 65.8 | 56.3 |
Income before income taxes | 115.6 | 96.2 | 250.6 | 208.5 |
Income taxes | 10.5 | 14.7 | 32.6 | 35.4 |
Net income | $ 105.1 | $ 81.5 | $ 218 | $ 173.1 |
STATEMENTS OF INCOME (UNAUDIT_2
STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest charges and financing costs | ||||
Other financing costs | $ 0.9 | $ 0.7 | $ 2.5 | $ 2.1 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive income: | ||||
Net income | $ 105.1 | $ 81.5 | $ 218 | $ 173.1 |
Derivative instruments: | ||||
Amortization of losses included in net periodic benefit cost, net of tax of $0 | 0 | 0.1 | 0.1 | 0.1 |
Other comprehensive income | 0 | 0.1 | 0.1 | 0.1 |
Comprehensive income | $ 105.1 | $ 81.6 | $ 218.1 | $ 173.2 |
STATEMENTS OF COMPREHENSIVE I_2
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative instruments: | ||||
Reclassification of losses to net income, tax | $ 0 | $ 0 | $ 0 | $ 0 |
STATEMENTS OF CASH FLOWS (UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 218 | $ 173.1 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 174 | 150.4 |
Demand side management program amortization | 0 | 1.3 |
Deferred income taxes | 16.2 | 14.4 |
Allowance for equity funds used during construction | (22.2) | (11.6) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (26.5) | (25.1) |
Accrued unbilled revenues | (10.4) | 9.6 |
Inventories | (16.3) | 7 |
Prepayments and other | 6 | 0.6 |
Accounts payable | (15.1) | (0.9) |
Net regulatory assets and liabilities | 17.6 | 58.8 |
Other current liabilities | 14.1 | 13 |
Pension and other employee benefit obligations | (17.6) | (7.9) |
Change in other noncurrent assets | 0.7 | 3.5 |
Change in other noncurrent liabilities | 1.3 | (0.2) |
Net cash provided by operating activities | 339.8 | 386 |
Investing activities | ||
Utility capital/construction expenditures | (632.8) | (610) |
Investments in utility money pool arrangement | 133 | 46 |
Repayments from utility money pool arrangement | 133 | 111 |
Net cash used in investing activities | (632.8) | (545) |
Financing activities | ||
(Repayments of) Proceeds from short-term borrowings, net | (42) | 35 |
Proceeds from issuance of long-term debt, net | 292.2 | 0 |
Borrowings under utility money pool arrangement | 283 | 446 |
Repayments under utility money pool arrangement | (283) | (423) |
Capital contributions from parent | 400.8 | 181.4 |
Dividends paid to parent | (255) | (90.7) |
Net cash provided by financing activities | 396 | 148.7 |
Net change in cash and cash equivalents | 103 | (10.3) |
Cash and cash equivalents at beginning of period | 44 | 10.9 |
Cash and cash equivalents at end of period | 147 | 0.6 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (60.3) | (57.9) |
Cash paid for income taxes, net | (4.4) | (15.3) |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Property, plant and equipment additions in accounts payable | 67.5 | 54.6 |
Inventory transfer additions in PPE | 18.7 | 17 |
Operating lease right-of-use assets | 548.3 | 0 |
Allowance for equity funds used during construction | $ 22.2 | $ 11.6 |
BALANCE SHEETS (UNAUDITED)
BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 147 | $ 44 |
Accounts receivable, net | 113.9 | 90.7 |
Accounts receivable from affiliates | 6.1 | 10.5 |
Accrued unbilled revenues | 124.9 | 114.5 |
Inventories | 31.4 | 33.9 |
Regulatory assets | 20.8 | 26 |
Derivative instruments | 20.4 | 17.8 |
Prepaid taxes | 1.5 | 14.2 |
Prepayments and other | 17.6 | 10.7 |
Total current assets | 483.6 | 362.3 |
Property, plant and equipment, net | 6,441.9 | 5,946.4 |
Other assets | ||
Regulatory assets | 362 | 366.2 |
Derivative instruments | 13.4 | 15.8 |
Operating lease right-of-use assets | 529 | 0 |
Other | 4.4 | 5.1 |
Total other assets | 908.8 | 387.1 |
Total assets | 7,834.3 | 6,695.8 |
Current liabilities | ||
Short-term debt | 0 | 42 |
Accounts payable | 168.3 | 191.8 |
Accounts payable to affiliates | 14.9 | 19.9 |
Regulatory liabilities | 116.8 | 85.8 |
Taxes accrued | 51.5 | 41.6 |
Accrued interest | 29.1 | 25.8 |
Dividends payable to parent | 45.6 | 45.2 |
Derivative instruments | 3.7 | 3.6 |
Other | 53 | 28.3 |
Total current liabilities | 482.9 | 484 |
Deferred credits and other liabilities | ||
Deferred income taxes | 653.4 | 619.1 |
Regulatory liabilities | 736.5 | 780.9 |
Asset retirement obligations | 49.9 | 32.4 |
Derivative instruments | 13.7 | 16.4 |
Pension and employee benefit obligations | 75.2 | 92.4 |
Operating lease liabilities | 502.2 | 0 |
Other | 9 | 7.9 |
Total deferred credits and other liabilities | 2,039.9 | 1,549.1 |
Capitalization | ||
Long-term debt | 2,419.3 | 2,126.1 |
Common stock — 200 shares authorized of $1.00 par value; 100 shares outstanding at Sept. 30, 2019 and Dec. 31, 2018, respectively | 0 | 0 |
Additional paid in capital | 2,325.3 | 1,932.3 |
Retained earnings | 568.2 | 605.7 |
Accumulated other comprehensive loss | (1.3) | (1.4) |
Total common stockholder’s equity | 2,892.2 | 2,536.6 |
Total liabilities and equity | $ 7,834.3 | $ 6,695.8 |
BALANCE SHEETS (UNAUDITED) (Par
BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Capitalization, Long-term Debt and Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 200 | 200 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | 100 | 100 |
Management's Opinion
Management's Opinion | 9 Months Ended |
Sep. 30, 2019 | |
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 U.S. GAAP, the financial position of SPS as of Sept. 30, 2019 and Dec. 31, 2018 ; the results of its operations, including the components of net income and comprehensive income, and change in stockholder’s equity for the three and nine months ended Sept. 30, 2019 and 2018 ; and its cash flows for the nine months ended Sept. 30, 2019 and 2018 . All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2019 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, 2018 balance sheet information has been derived from the audited 2018 financial statements included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2018 . These 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, 2018 , filed with the SEC on Feb. 22, 2019. Due to the seasonality of SPS’ electric sales, interim results are not necessarily an appropriate base from which to project annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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, 2018 , appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Recently Issued Credit Losses — In 2016, the FASB issued Financial Instruments - Credit Losses, Topic 326 (ASC Topic 326), which changes how entities account for losses on receivables and certain other assets. The guidance requires use of a current expected credit loss model, which may result in earlier recognition of credit losses than under previous accounting standards. ASC Topic 326 is effective for interim and annual periods beginning on or after Dec. 15, 2019, and will be applied on a modified-retrospective approach through a cumulative-effect adjustment to retained earnings as of Jan. 1, 2020. SPS expects the impact of adoption of the new standard to include first-time recognition of expected credit losses (i.e., bad debt expense) on unbilled revenues, with the initial allowance established at Jan. 1, 2020 charged to retained earnings. Recently Adopted Leases — In 2016, the FASB issued Leases , Topic 842 (ASC Topic 842) , which provides new accounting and disclosure guidance for leasing activities, most significantly requiring that operating leases be recognized on the balance sheet. SPS adopted the guidance on Jan. 1, 2019 utilizing the package of transition practical expedients provided by the new standard, including carrying forward prior conclusions on whether agreements existing before the adoption date contain leases and whether existing leases are operating or finance leases; ASC Topic 842 refers to capital leases as finance leases. Specifically for land easement contracts, SPS has elected the practical expedient provided by ASU No. 2018-01 Leases: Land Easement Practical Expedient for Transition to Topic 842 , and as a result, only those easement contracts entered on or after Jan. 1, 2019 will be evaluated to determine if lease treatment is appropriate. SPS also utilized the transition practical expedient offered by ASU No. 2018-11 Leases: Targeted Improvements to implement the standard on a prospective basis. As a result, reporting periods in the financial statements beginning Jan. 1, 2019 reflect the implementation of ASC Topic 842, while prior periods continue to be reported in accordance with Leases, Topic 840 (ASC Topic 840) . Other than first-time recognition of operating leases on its balance sheet, the implementation of ASC Topic 842 did not have a significant impact on SPS’ financial statements. Adoption resulted in recognition of approximately $0.5 billion of operating lease ROU assets and current/noncurrent operating lease liabilities. See Note 9 to the financial statements for leasing disclosures. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | Selected Balance Sheet Data (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Accounts receivable, net Accounts receivable $ 119.5 $ 96.3 Less allowance for bad debts (5.6 ) (5.6 ) Accounts receivable, net $ 113.9 $ 90.7 (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Inventories Materials and supplies $ 24.8 $ 25.7 Fuel 6.6 8.2 Total inventories $ 31.4 $ 33.9 (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Property, plant and equipment, net Electric plant $ 8,296.6 $ 7,227.7 Construction work in progress 419.2 847.3 Total property, plant and equipment 8,715.8 8,075.0 Less accumulated depreciation (2,273.9 ) (2,128.6 ) Property, plant and equipment, net $ 6,441.9 $ 5,946.4 |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | 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 were as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended Sept. 30, 2019 Year Ended Dec. 31, 2018 Borrowing limit $ 100 $ 100 Amount outstanding at period end — — Average amount outstanding — 29 Maximum amount outstanding — 100 Weighted average interest rate, computed on a daily basis N/A 1.96 % Weighted average interest rate at period end N/A N/A Commercial Paper — Commercial paper outstanding for SPS was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended Sept. 30, 2019 Year Ended Dec. 31, 2018 Borrowing limit $ 500 $ 400 Amount outstanding at period end — 42 Average amount outstanding — 30 Maximum amount outstanding — 144 Weighted average interest rate, computed on a daily basis N/A 2.27 % Weighted average interest rate at period end N/A 2.80 Letters of Credit — SPS uses letters of credit, generally with terms of one year , to provide financial guarantees for certain operating obligations. At Sept. 30, 2019 and Dec. 31, 2018 , there were $2 million of letters of credit outstanding under the credit facility. 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. Amended Credit Agreement — In June 2019, SPS entered into an amended five-year credit agreement with a syndicate of banks. The amended credit agreements have substantially the same terms and conditions as the prior credit agreements with the exception of the following: • Maturity extended from June 2021 to June 2024. • Borrowing limit increased from $400 million to $500 million 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 Sept. 30, 2019 , SPS had the following committed credit facility available (in millions of dollars): Credit Facility (a) Outstanding (b) Available $ 500 $ 2 $ 498 (a) This credit facility 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 Sept. 30, 2019 and Dec. 31, 2018 . Long-Term Borrowings During the nine months ended Sept. 30, 2019 , SPS issued $300 million of 3.75% |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenues Revenue is classified by the type of goods/services rendered and market/customer type. SPS’ operating revenues consists of the following: Three Months Ended (Millions of Dollars) Sept. 30, 2019 Sept. 30, 2018 Major revenue types Revenue from contracts with customers: Residential $ 119.3 $ 114.4 C&I 222.4 229.4 Other 12.8 13.0 Total retail 354.5 356.8 Wholesale 106.6 118.0 Transmission 64.4 60.7 Other 0.6 1.8 Total revenue from contracts with customers 526.1 537.3 Alternative revenue and other 7.0 2.8 Total revenues $ 533.1 $ 540.1 Nine Months Ended (Millions of Dollars) Sept. 30, 2019 Sept. 30, 2018 Major revenue types Revenue from contracts with customers: Residential $ 277.8 $ 279.5 C&I 619.6 626.0 Other 32.3 34.0 Total retail 929.7 939.5 Wholesale 263.4 326.8 Transmission 181.8 175.4 Other 2.0 12.2 Total revenue from contracts with customers 1,376.9 1,453.9 Alternative revenue and other 20.8 14.7 Total revenues $ 1,397.7 $ 1,468.6 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Note 7 to the financial statements included in SPS’ Annual Report on Form 10-K for the year ended Dec. 31, 2018 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. The following table reconciles the difference between the statutory rate and the ETR: Nine Months Ended Sept. 30, 2019 2018 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 2.2 2.3 Decreases in tax from: Plant regulatory differences (a) (4.7 ) (3.8 ) Wind PTCs (3.9 ) — Other tax credits and tax credit and NOL allowances (net) (0.6 ) (0.7 ) Prior period adjustments (0.5 ) (1.8 ) Other (net) (0.5 ) — Effective income tax rate 13.0 % 17.0 % (a) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method and the timing of regulatory decisions regarding the return of excess deferred taxes. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions. Federal Audits — SPS is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows: Tax Year(s) Expiration 2009 - 2013 June 2020 2014 - 2016 September 2020 In 2015, the IRS commenced an examination of tax years 2012 and 2013. In 2017, the IRS concluded the audit of tax years 2012 and 2013 and proposed an adjustment that would impact Xcel Energy’s NOL and ETR. Xcel Energy filed a protest with the IRS. As of Sept. 30, 2019 , the case has been forwarded to the Office of Appeals and Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is unknown. In 2018, the IRS began an audit of tax years 2014 - 2016. As of Sept. 30, 2019 no adjustments have been proposed. State Audits — SPS is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of Sept. 30, 2019 , SPS’ earliest open tax year subject to examination by state taxing authorities under applicable statutes of limitations is 2009. There are currently no state income tax audits in progress. Unrecognized Benefits — Unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment to the taxing authority to an earlier period. Unrecognized tax benefits — permanent vs temporary: (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Unrecognized tax benefit — Permanent tax positions $ 3.5 $ 3.0 Unrecognized tax benefit — Temporary tax positions 1.5 1.5 Total unrecognized tax benefit $ 5.0 $ 4.5 Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 NOL and tax credit carryforwards $ (4.4 ) $ (3.8 ) Net deferred tax liability associated with the unrecognized tax benefit amounts and related NOLs and tax credits carryforwards were $1.4 million and $0.8 million at Sept. 30, 2019 and Dec. 31, 2018 , respectively. As the IRS Appeals and federal audit progresses, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $3.7 million in the next 12 months. Payables for interest related to unrecognized tax benefits were not material and no amounts were accrued for penalties related to unrecognized tax benefits as of Sept. 30, 2019 or Dec. 31, 2018 . |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair Value Measurements The accounting guidance for fair value measurements and disclosures provides a single definition of fair value, hierarchical framework for measuring assets and liabilities and requires disclosure about assets and liabilities measured at fair value. 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 NAVs. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The methods used to measure the fair value of commodity derivative forwards and options generally utilize observable forward prices and volatilities, as well as observable pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contractual settlements relate to delivery locations for which pricing is relatively unobservable, 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, purchased from SPP. FTRs purchased from an 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 value of an FTR is derived from, and designed to offset, the cost 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 an FTR. If forecasted costs of electric transmission congestion increase or decrease for a given FTR path, the value of that particular FTR instrument will likewise increase or decrease. Given the limited observability of important inputs to the value of FTRs between auction processes, including expected plant operating schedules and retail and wholesale demand, fair value measurements for FTRs have been assigned a Level 3. Non-trading monthly FTR settlements are expected to be recovered through fuel and purchased energy cost recovery mechanisms, and therefore changes in the fair value of the yet to be settled portions of FTRs are deferred as a regulatory asset or liability. Given this regulatory treatment and the limited magnitude of FTRs relative to the electric utility operations of SPS, the numerous unobservable quantitative inputs pertinent to the value of FTRs are insignificant to the financial statements of SPS. 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 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 Sept. 30, 2019 , accumulated other comprehensive loss related to interest rate derivatives included $0.1 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable. 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. 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. (Amounts in Millions) (a) Sept. 30, 2019 Dec. 31, 2018 Mwh of electricity 9.4 5.5 (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 Sept. 30, 2019 , one of the six most significant counterparties for these activities, comprising $14.2 million or 31% of this credit exposure, had investment grade ratings from S&P Global Ratings, Moody’s Investor Services or Fitch Ratings. Five of the six most significant counterparties, comprising $9.7 million or 21% of this credit exposure, were not rated by external rating agencies, but based on SPS’ internal analysis, had credit quality consistent with investment grade. Six of these significant counterparties are municipal or cooperative electric entities, or other utilities. Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — Pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings were immaterial for the three and nine months ended Sept. 30, 2019 and 2018 . Changes in the fair value of FTRs resulting in immaterial pre-tax net gains and pre-tax net gains of $4.7 million were recognized for the three and nine months ended Sept. 30, 2019 , respectively, were reclassified as regulatory assets and liabilities. For the three and nine months ended Sept. 30, 2018 , changes in the fair value of FTRs resulted in pre-tax net losses of $3.3 million and pre-tax net gains of $10.1 million , respectively, and were recognized as regulatory assets and 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 gains of $1.7 million and $1.5 million were recognized for the three and nine months ended Sept. 30, 2019 , respectively, and were recorded to electric fuel and purchased power. There were immaterial FTR settlement losses and $3.4 million of FTR settlement gains recognized for the three and nine months ended Sept. 30, 2018 , 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. SPS had no derivative instruments designated as fair value hedges during the three and nine months ended Sept. 30, 2019 and 2018 . Recurring Fair Value Measurements — SPS’ derivative assets and liabilities measured at fair value on a recurring basis: Sept. 30, 2019 Dec. 31, 2018 Fair Value Fair Value (Millions of Dollars) Level 1 Level 2 Level 3 Fair Value Total Netting (a) Total Level 1 Level 2 Level 3 Fair Value Total Netting (a) Total Current derivative assets Other derivative instruments: Electric commodity $ — $ — $ 17.3 $ 17.3 $ — $ 17.3 $ — $ — $ 14.9 $ 14.9 $ (0.2 ) $ 14.7 Total current derivative assets $ — $ — $ 17.3 $ 17.3 $ — 17.3 $ — $ — $ 14.9 $ 14.9 $ (0.2 ) 14.7 PPAs (b) 3.1 3.1 Current derivative instruments $ 20.4 $ 17.8 Noncurrent derivative assets PPAs (b) 13.4 15.8 Noncurrent derivative instruments $ 13.4 $ 15.8 Current derivative liabilities Other derivative instruments: Electric commodity $ — $ — $ 0.2 $ 0.2 $ — $ 0.2 $ — $ — $ 0.2 $ 0.2 $ (0.2 ) $ — Total current derivative liabilities $ — $ — $ 0.2 $ 0.2 $ — 0.2 $ — $ — $ 0.2 $ 0.2 $ (0.2 ) — PPAs (b) 3.5 . 3.6 Current derivative instruments $ 3.7 $ 3.6 Noncurrent derivative liabilities PPAs (b) 13.7 16.4 Noncurrent derivative instruments $ 13.7 $ 16.4 (a) SPS nets derivative instruments and related collateral in its balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2019 and Dec. 31, 2018 . At both Sept. 30, 2019 and Dec. 31, 2018 , 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) 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 nine months ended Sept. 30, 2019 and 2018 : Three Months Ended Sept. 30, (Millions of Dollars) 2019 2018 Balance at July 1 $ 22.2 $ 35.4 Purchases 4.4 3.2 Settlements (5.2 ) (10.1 ) Net transactions recorded during the period: Net losses recognized as regulatory assets and liabilities (4.3 ) (3.2 ) Balance at Sept. 30 $ 17.1 $ 25.3 Nine Months Ended Sept. 30, (Millions of Dollars) 2019 2018 Balance at Jan. 1 $ 14.7 $ 12.7 Purchases 25.5 22.5 Settlements (24.9 ) (35.3 ) Net transactions recorded during the period: Net gains recognized as regulatory assets and liabilities 1.8 25.4 Balance at Sept. 30 $ 17.1 $ 25.3 SPS recognizes transfers between fair value hierarchy levels as of the beginning of each period. There were no transfers of amounts between levels for derivative instruments for the three and nine months ended Sept. 30, 2019 and 2018 . Fair Value of Long-Term Debt Other financial instruments for which the carrying amount did not equal fair value: Sept. 30, 2019 Dec. 31, 2018 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 2,419.3 $ 2,763.2 $ 2,126.1 $ 2,139.8 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 Sept. 30, 2019 and Dec. 31, 2018 , and given the observability of the inputs, fair values presented for long-term debt were assigned as Level 2. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost (Credit) Three Months Ended Sept. 30 2019 2018 2019 2018 (Millions of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 2.2 $ 2.4 $ 0.2 $ 0.3 Interest cost (a) 5.0 4.6 0.4 0.4 Expected return on plan assets (a) (7.1 ) (7.1 ) (0.5 ) (0.6 ) Amortization of prior service credit (a) — — (0.1 ) (0.1 ) Amortization of net loss (gain) (a) 2.8 3.5 (0.1 ) (0.1 ) Net periodic benefit cost (credit) 2.9 3.4 (0.1 ) (0.1 ) Credits (costs) not recognized due to the effects of regulation 0.5 (0.4 ) — — Net benefit cost (credit) recognized for financial reporting $ 3.4 $ 3.0 $ (0.1 ) $ (0.1 ) Nine Months Ended Sept. 30 2019 2018 2019 2018 (Millions of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 6.6 $ 7.3 $ 0.7 $ 0.8 Interest cost (a) 15.1 13.8 1.3 1.2 Expected return on plan assets (a) (21.5 ) (21.2 ) (1.5 ) (1.8 ) Amortization of prior service credit (a) (0.1 ) (0.1 ) (0.4 ) (0.3 ) Amortization of net loss (gain) (a) 8.5 10.5 (0.3 ) (0.3 ) Net periodic benefit cost (credit) 8.6 10.3 (0.2 ) (0.4 ) Credits not recognized due to the effects of regulation 1.3 1.3 — — Net benefit cost (credit) recognized for financial reporting $ 9.9 $ 11.6 $ (0.2 ) $ (0.4 ) (a) The components of net periodic cost other than the service cost component are included in the line item “other expense, net” in the income statement or capitalized on the balance sheet as a regulatory asset. In January 2019, contributions of $150.0 million were made across four of Xcel Energy’s pension plans, of which $16.5 million was attributable to SPS. In July 2019, Xcel Energy made a $4.0 million contribution to the Xcel Energy Inc. Non-Bargaining Pension Plan (South), of which $1.2 million |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following include 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 of such matters, 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. Unless otherwise required by GAAP, legal fees are expensed as incurred. Rate Matters SPP OATT Upgrade Costs — Under the SPP OATT, costs of transmission upgrades may be recovered from other SPP customers whose transmission service depends on capacity enabled by the upgrade. 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 these previously unbilled charges was remanded to the FERC. In February 2019, the FERC reversed its 2016 decision and ordered SPP to refund the charges retroactively collected from its transmission customers, including SPS, related to periods before September 2015. In April 2019, several parties, including SPP, filed requests for rehearing. The timing of a FERC response to the rehearing requests is uncertain. Any refunds received by SPS are expected to be given back to SPS customers through future rates. In October 2017, SPS filed a separate complaint against SPP asserting that SPP has assessed upgrade charges to SPS in violation of the SPP OATT. The FERC granted a rehearing for further consideration in May 2018. The timing of FERC action on the SPS rehearing is uncertain. If SPS’ complaint results in additional charges or refunds, SPS will seek to recover or refund the amounts through future SPS customer rates. SPP Filing to Assign GridLiance Facilities to SPS Rate Zone — In August 2018, SPP filed a request with the FERC to amend its OATT to include the costs of the GridLiance High Plains, LLC. facilities in the SPS rate zone. In a previous filing, the FERC determined that some of these facilities did not qualify as transmission facilities under the SPP OATT. SPP’s proposed tariff changes resulted in an increase in the ATRR of $9.5 million per year, with $6 million allocated to SPS’ retail customers. The remaining $3.5 million would be paid by other wholesale loads in the SPS rate zone. In September 2018, SPS protested the proposed SPP tariff charges, and asked the FERC to reject the SPP filing. On Oct. 31, 2018, the FERC issued an order accepting the proposed charges, subject to refund, as of Nov. 1, 2018, and set the case for settlement hearing procedures. Hearings are scheduled for May 2020, with the ALJ’s initial decision expected in October 2020. SPS Filing to Modify Wholesale Transmission Rates — In 2018, SPS filed revisions to its wholesale transmission formula rate. The proposal includes an update to the depreciation rates for transmission plant. The new formula rate would also provide a credit to customers of “excess” ADIT resulting from the TCJA and recover certain wholesale regulatory commission expenses. The proposed changes would increase wholesale transmission revenues by approximately $9.4 million , with approximately $4.4 million of the total being recovered in SPP regional transmission rates. SPS proposed that the formula rate changes be effective Feb. 1, 2019. In January 2019, the FERC issued an order accepting the proposed rate changes as of Feb. 1, 2019, subject to refund and settlement procedures. Settlement procedures started in February 2019, and are ongoing. Environmental MGP, Landfill or Disposal Sites — SPS is currently remediating the site of a former facility. SPS has recognized its best estimate of costs/liabilities that will result from final resolution of these issues, however, the outcome and timing is unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of the 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. Under ASC Topic 842, adopted by SPS on Jan. 1, 2019, a contract contains a lease if it conveys the exclusive right to control the use of a specific asset. A contract determined to contain a lease is evaluated further to determine if the arrangement is a finance lease. ROU assets represent SPS’ rights to use leased assets. Starting in 2019, the present value of future operating lease payments are recognized in other current liabilities and noncurrent operating lease liabilities. These amounts, adjusted for any prepayments or incentives, are recognized as operating lease ROU assets. Most of SPS’ leases do not contain a readily determinable discount rate. Therefore, the present value of future lease payments is calculated using the estimated incremental borrowing rate (weighted-average of 4.4% ). SPS has elected the practical expedient under which non-lease components, such as asset maintenance costs included in payments, are not deducted from minimum lease payments for the purposes of lease accounting and disclosure. Leases with an initial term of 12 months or less are classified as short-term leases and are not recognized on the balance sheet. Operating lease ROU assets: (Millions of Dollars) Sept. 30, 2019 PPAs $ 500.3 Other 48.0 Gross operating lease ROU assets 548.3 Accumulated amortization (19.3 ) Net operating lease ROU assets $ 529.0 Components of lease expense: (Millions of Dollars) Three Months Ended Sept. 30, 2019 Nine Months Ended Sept. 30, 2019 Operating leases PPA capacity payments $ 11.4 $ 36.8 Other operating leases (a) 1.2 3.7 Total operating lease expense (b) $ 12.6 $ 40.5 (a) Includes short-term lease expense of $0.3 million for the three months ended Sept. 30, 2019 and $1.2 million for the nine months ended Sept. 30, 2019 . (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 O&M expense. Future commitments under operating leases as of Sept. 30, 2019 : (Millions of Dollars) PPA (a) (b) Operating Leases Other Operating Leases Total Leases 2019 $ 11.6 $ 0.8 $ 12.4 2020 46.2 3.4 49.6 2021 46.2 3.3 49.5 2022 46.2 3.4 49.6 2023 46.2 3.4 49.6 Thereafter 450.8 54.8 505.6 Total minimum obligation 647.2 69.1 716.3 Interest component of obligation (165.3 ) (22.0 ) (187.3 ) Present value of minimum obligation 481.9 47.1 529.0 Less current portion (26.8 ) Noncurrent operating lease liabilities $ 502.2 Weighted-average remaining lease term in years 14.3 (a) Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. (b) PPA operating leases contractually expire at various dates through 2033. Future commitments under operating leases as of Dec. 31, 2018 : (Millions of Dollars) PPA (a) (b) Operating Leases Other Operating Leases Total Leases 2019 $ 46.7 $ 5.2 $ 51.9 2020 46.2 5.2 51.4 2021 46.2 5.1 51.3 2022 46.2 5.1 51.3 2023 46.2 5.1 51.3 Thereafter 450.8 56.3 507.1 (a) Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. (b) PPA operating leases contractually expire at various dates through 2033. Variable Interest Entities Under certain PPAs, SPS purchases power from IPPs and is required to reimburse the IPPs for fuel costs, or to participate in tolling arrangements under which SPS procures the natural gas required to produce the energy that it purchases. These specific PPAs create a variable interest in the associated IPP. SPS had approximately 1,197 MW of capacity under long-term PPAs as of Sept. 30, 2019 and Dec. 31, 2018 , with entities that have been determined to be VIEs. 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 significantly impact the entities’ economic performance. These agreements have expiration dates through 2041 . |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Accounts receivable, net Accounts receivable $ 119.5 $ 96.3 Less allowance for bad debts (5.6 ) (5.6 ) Accounts receivable, net $ 113.9 $ 90.7 |
Inventories | (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Inventories Materials and supplies $ 24.8 $ 25.7 Fuel 6.6 8.2 Total inventories $ 31.4 $ 33.9 |
Property, Plant and Equipment, Net | (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Property, plant and equipment, net Electric plant $ 8,296.6 $ 7,227.7 Construction work in progress 419.2 847.3 Total property, plant and equipment 8,715.8 8,075.0 Less accumulated depreciation (2,273.9 ) (2,128.6 ) Property, plant and equipment, net $ 6,441.9 $ 5,946.4 |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | As of Sept. 30, 2019 , SPS had the following committed credit facility available (in millions of dollars): Credit Facility (a) Outstanding (b) Available $ 500 $ 2 $ 498 (a) This credit facility expires in June 2024. (b) Includes outstanding letters of credit. |
Money Pool | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Money pool borrowings for SPS were as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended Sept. 30, 2019 Year Ended Dec. 31, 2018 Borrowing limit $ 100 $ 100 Amount outstanding at period end — — Average amount outstanding — 29 Maximum amount outstanding — 100 Weighted average interest rate, computed on a daily basis N/A 1.96 % Weighted average interest rate at period end N/A N/A |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for SPS was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended Sept. 30, 2019 Year Ended Dec. 31, 2018 Borrowing limit $ 500 $ 400 Amount outstanding at period end — 42 Average amount outstanding — 30 Maximum amount outstanding — 144 Weighted average interest rate, computed on a daily basis N/A 2.27 % Weighted average interest rate at period end N/A 2.80 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | SPS’ operating revenues consists of the following: Three Months Ended (Millions of Dollars) Sept. 30, 2019 Sept. 30, 2018 Major revenue types Revenue from contracts with customers: Residential $ 119.3 $ 114.4 C&I 222.4 229.4 Other 12.8 13.0 Total retail 354.5 356.8 Wholesale 106.6 118.0 Transmission 64.4 60.7 Other 0.6 1.8 Total revenue from contracts with customers 526.1 537.3 Alternative revenue and other 7.0 2.8 Total revenues $ 533.1 $ 540.1 Nine Months Ended (Millions of Dollars) Sept. 30, 2019 Sept. 30, 2018 Major revenue types Revenue from contracts with customers: Residential $ 277.8 $ 279.5 C&I 619.6 626.0 Other 32.3 34.0 Total retail 929.7 939.5 Wholesale 263.4 326.8 Transmission 181.8 175.4 Other 2.0 12.2 Total revenue from contracts with customers 1,376.9 1,453.9 Alternative revenue and other 20.8 14.7 Total revenues $ 1,397.7 $ 1,468.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles the difference between the statutory rate and the ETR: Nine Months Ended Sept. 30, 2019 2018 Federal statutory rate 21.0 % 21.0 % State tax (net of federal tax effect) 2.2 2.3 Decreases in tax from: Plant regulatory differences (a) (4.7 ) (3.8 ) Wind PTCs (3.9 ) — Other tax credits and tax credit and NOL allowances (net) (0.6 ) (0.7 ) Prior period adjustments (0.5 ) (1.8 ) Other (net) (0.5 ) — Effective income tax rate 13.0 % 17.0 % (a) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method and the timing of regulatory decisions regarding the return of excess deferred taxes. Income tax benefits associated with the credit of excess deferred credits are offset by corresponding revenue reductions. |
Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block] | Federal Audits — SPS is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. Statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows: Tax Year(s) Expiration 2009 - 2013 June 2020 2014 - 2016 September 2020 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized tax benefits — permanent vs temporary: (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 Unrecognized tax benefit — Permanent tax positions $ 3.5 $ 3.0 Unrecognized tax benefit — Temporary tax positions 1.5 1.5 Total unrecognized tax benefit $ 5.0 $ 4.5 |
Tax Benefits Associated with NOL and Tax Credit Carryforwards | Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) Sept. 30, 2019 Dec. 31, 2018 NOL and tax credit carryforwards $ (4.4 ) $ (3.8 ) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity FTRs | 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. (Amounts in Millions) (a) Sept. 30, 2019 Dec. 31, 2018 Mwh of electricity 9.4 5.5 (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 | Recurring Fair Value Measurements — SPS’ derivative assets and liabilities measured at fair value on a recurring basis: Sept. 30, 2019 Dec. 31, 2018 Fair Value Fair Value (Millions of Dollars) Level 1 Level 2 Level 3 Fair Value Total Netting (a) Total Level 1 Level 2 Level 3 Fair Value Total Netting (a) Total Current derivative assets Other derivative instruments: Electric commodity $ — $ — $ 17.3 $ 17.3 $ — $ 17.3 $ — $ — $ 14.9 $ 14.9 $ (0.2 ) $ 14.7 Total current derivative assets $ — $ — $ 17.3 $ 17.3 $ — 17.3 $ — $ — $ 14.9 $ 14.9 $ (0.2 ) 14.7 PPAs (b) 3.1 3.1 Current derivative instruments $ 20.4 $ 17.8 Noncurrent derivative assets PPAs (b) 13.4 15.8 Noncurrent derivative instruments $ 13.4 $ 15.8 Current derivative liabilities Other derivative instruments: Electric commodity $ — $ — $ 0.2 $ 0.2 $ — $ 0.2 $ — $ — $ 0.2 $ 0.2 $ (0.2 ) $ — Total current derivative liabilities $ — $ — $ 0.2 $ 0.2 $ — 0.2 $ — $ — $ 0.2 $ 0.2 $ (0.2 ) — PPAs (b) 3.5 . 3.6 Current derivative instruments $ 3.7 $ 3.6 Noncurrent derivative liabilities PPAs (b) 13.7 16.4 Noncurrent derivative instruments $ 13.7 $ 16.4 (a) SPS nets derivative instruments and related collateral in its balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2019 and Dec. 31, 2018 . At both Sept. 30, 2019 and Dec. 31, 2018 , 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) 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 three and nine months ended Sept. 30, 2019 and 2018 : Three Months Ended Sept. 30, (Millions of Dollars) 2019 2018 Balance at July 1 $ 22.2 $ 35.4 Purchases 4.4 3.2 Settlements (5.2 ) (10.1 ) Net transactions recorded during the period: Net losses recognized as regulatory assets and liabilities (4.3 ) (3.2 ) Balance at Sept. 30 $ 17.1 $ 25.3 Nine Months Ended Sept. 30, (Millions of Dollars) 2019 2018 Balance at Jan. 1 $ 14.7 $ 12.7 Purchases 25.5 22.5 Settlements (24.9 ) (35.3 ) Net transactions recorded during the period: Net gains recognized as regulatory assets and liabilities 1.8 25.4 Balance at Sept. 30 $ 17.1 $ 25.3 |
Carrying Amount and Fair Value of Long-term Debt | Other financial instruments for which the carrying amount did not equal fair value: Sept. 30, 2019 Dec. 31, 2018 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 2,419.3 $ 2,763.2 $ 2,126.1 $ 2,139.8 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | Components of Net Periodic Benefit Cost (Credit) Three Months Ended Sept. 30 2019 2018 2019 2018 (Millions of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 2.2 $ 2.4 $ 0.2 $ 0.3 Interest cost (a) 5.0 4.6 0.4 0.4 Expected return on plan assets (a) (7.1 ) (7.1 ) (0.5 ) (0.6 ) Amortization of prior service credit (a) — — (0.1 ) (0.1 ) Amortization of net loss (gain) (a) 2.8 3.5 (0.1 ) (0.1 ) Net periodic benefit cost (credit) 2.9 3.4 (0.1 ) (0.1 ) Credits (costs) not recognized due to the effects of regulation 0.5 (0.4 ) — — Net benefit cost (credit) recognized for financial reporting $ 3.4 $ 3.0 $ (0.1 ) $ (0.1 ) Nine Months Ended Sept. 30 2019 2018 2019 2018 (Millions of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 6.6 $ 7.3 $ 0.7 $ 0.8 Interest cost (a) 15.1 13.8 1.3 1.2 Expected return on plan assets (a) (21.5 ) (21.2 ) (1.5 ) (1.8 ) Amortization of prior service credit (a) (0.1 ) (0.1 ) (0.4 ) (0.3 ) Amortization of net loss (gain) (a) 8.5 10.5 (0.3 ) (0.3 ) Net periodic benefit cost (credit) 8.6 10.3 (0.2 ) (0.4 ) Credits not recognized due to the effects of regulation 1.3 1.3 — — Net benefit cost (credit) recognized for financial reporting $ 9.9 $ 11.6 $ (0.2 ) $ (0.4 ) (a) The components of net periodic cost other than the service cost component are included in the line item “other expense, net” in the income statement or capitalized on the balance sheet as a regulatory asset. |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Right-of-Use Assets | Operating lease ROU assets: (Millions of Dollars) Sept. 30, 2019 PPAs $ 500.3 Other 48.0 Gross operating lease ROU assets 548.3 Accumulated amortization (19.3 ) Net operating lease ROU assets $ 529.0 |
Schedule of Components of Lease Expense | Components of lease expense: (Millions of Dollars) Three Months Ended Sept. 30, 2019 Nine Months Ended Sept. 30, 2019 Operating leases PPA capacity payments $ 11.4 $ 36.8 Other operating leases (a) 1.2 3.7 Total operating lease expense (b) $ 12.6 $ 40.5 (a) Includes short-term lease expense of $0.3 million for the three months ended Sept. 30, 2019 and $1.2 million for the nine months ended Sept. 30, 2019 . (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 O&M expense. |
Schedule of Future Commitments under Operating Leases | Future commitments under operating leases as of Sept. 30, 2019 : (Millions of Dollars) PPA (a) (b) Operating Leases Other Operating Leases Total Leases 2019 $ 11.6 $ 0.8 $ 12.4 2020 46.2 3.4 49.6 2021 46.2 3.3 49.5 2022 46.2 3.4 49.6 2023 46.2 3.4 49.6 Thereafter 450.8 54.8 505.6 Total minimum obligation 647.2 69.1 716.3 Interest component of obligation (165.3 ) (22.0 ) (187.3 ) Present value of minimum obligation 481.9 47.1 529.0 Less current portion (26.8 ) Noncurrent operating lease liabilities $ 502.2 Weighted-average remaining lease term in years 14.3 (a) Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. (b) PPA operating leases contractually expire at various dates through 2033. Future commitments under operating leases as of Dec. 31, 2018 : (Millions of Dollars) PPA (a) (b) Operating Leases Other Operating Leases Total Leases 2019 $ 46.7 $ 5.2 $ 51.9 2020 46.2 5.2 51.4 2021 46.2 5.1 51.3 2022 46.2 5.1 51.3 2023 46.2 5.1 51.3 Thereafter 450.8 56.3 507.1 (a) Amounts do not include PPAs accounted for as executory contracts and/or contingent payments, such as energy payments on renewable PPAs. (b) PPA operating leases contractually expire at various dates through 2033. |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 529 | $ 0 | |
Operating Lease, Liability | $ 529 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 500 | ||
Operating Lease, Liability | $ 500 |
Selected Balance Sheet Data Acc
Selected Balance Sheet Data Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, net | ||
Accounts receivable | $ 119.5 | $ 96.3 |
Less allowance for bad debts | (5.6) | (5.6) |
Accounts receivable, net | $ 113.9 | $ 90.7 |
Selected Balance Sheet Data Sel
Selected Balance Sheet Data Selected Balance Sheet Data Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories | $ 31.4 | $ 33.9 |
Inventory, Net | 31.4 | 33.9 |
Materials and supplies | ||
Inventories | 24.8 | 25.7 |
Fuel | ||
Inventories | $ 6.6 | $ 8.2 |
Selected Balance Sheet Data Bal
Selected Balance Sheet Data Balance Sheet Related Disclosures, Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,715.8 | $ 8,075 |
Accumulated depreciation | 2,273.9 | 2,128.6 |
Property, plant and equipment, net | 6,441.9 | 5,946.4 |
Electric plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,296.6 | 7,227.7 |
Construction work in progress | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 419.2 | $ 847.3 |
Money Pool (Details)
Money Pool (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 42,000,000 |
Money Pool | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 100,000,000 | 100,000,000 |
Amount outstanding at period end | 0 | 0 |
Average amount outstanding | 0 | 29,000,000 |
Maximum amount outstanding | $ 0 | $ 100,000,000 |
Weighted average interest rate, computed on a daily basis | 1.96% |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments Commercial Paper (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 42,000,000 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 500,000,000 | 400,000,000 |
Amount outstanding at period end | 0 | 42,000,000 |
Average amount outstanding | 0 | 30,000,000 |
Maximum amount outstanding | $ 0 | $ 144,000,000 |
Weighted average interest rate, computed on a daily basis | 2.27% | |
Weighted average interest rate at period end | 2.80% |
Letters of Credit (Details)
Letters of Credit (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 42 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 2 | $ 2 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of Credit, Term | 1 year |
Credit Facility (Details)
Credit Facility (Details) - Credit Facility | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Jun. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |||
Line of Credit Facility [Line Items] | |||||
Credit Facility | $ 500,000,000 | [1] | $ 400,000,000 | ||
Outstanding | [2] | 2,000,000 | |||
Available | 498,000,000 | ||||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |||
Number of extension you can request | 2 | ||||
[1] | This credit facility expires in June 2024 | ||||
[2] | Includes outstanding letters of credit. |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments Long-Term Borrowings (Details) - Bonds [Member] - Series Due June 15, 2049 [Domain] $ in Millions | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 300 |
Debt Instrument, Interest Rate | 3.75% |
Revenues (Details)
Revenues (Details) - Regulated Electric - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 526.1 | $ 537.3 | $ 1,376.9 | $ 1,453.9 |
Total revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 533.1 | 540.1 | 1,397.7 | 1,468.6 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 354.5 | 356.8 | 929.7 | 939.5 |
Retail | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 119.3 | 114.4 | 277.8 | 279.5 |
Retail | Commercial and industrial (C&I) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 222.4 | 229.4 | 619.6 | 626 |
Retail | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 12.8 | 13 | 32.3 | 34 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 106.6 | 118 | 263.4 | 326.8 |
Transmission | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 64.4 | 60.7 | 181.8 | 175.4 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0.6 | 1.8 | 2 | 12.2 |
Alternative and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue and other | $ 7 | $ 2.8 | $ 20.8 | $ 14.7 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate, percent | 21.00% | 21.00% |
State tax (net of federal tax effect), percent | 2.20% | 2.30% |
Plant regulatory differences, percent | (4.70%) | (3.80%) |
Prior period adjustments, percent | (3.90%) | 0.00% |
Other tax credits, percent | (0.60%) | (0.70%) |
Wind PTCs, percent | (0.50%) | (1.80%) |
Other (net), percent | (0.50%) | 0.00% |
Effective income tax rate, percent | 13.00% | 17.00% |
Income Taxes Federal Audits (De
Income Taxes Federal Audits (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Internal Revenue Service (IRS) [Member] | |
Investments, Owned, Federal Income Tax Note [Line Items] | |
Proposed Tax Adjustments | $ 0 |
Income Taxes Unrecognized Benef
Income Taxes Unrecognized Benefits (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefit - Permanent tax positions | $ 3,500,000 | $ 3,000,000 |
Unrecognized tax benefit - Temporary tax positions | 1,500,000 | 1,500,000 |
Total unrecognized tax benefit | 5,000,000 | 4,500,000 |
NOL and tax credit carryforwards | 4,400,000 | 3,800,000 |
Related NOLs and tax credit carryforwards | (1,400,000) | (800,000) |
Reasonably possible decrease in unrecognized tax benefits | 3,700,000 | |
Penalties related to unrecognized tax benefits | $ 0 | $ 0 |
Interest Rate Derivatives (Deta
Interest Rate Derivatives (Details) $ in Millions | Sep. 30, 2019USD ($) |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Interest rate derivatives net losses reclassified during next 12 months | $ 0.1 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities Commodity Derivatives (Details) - MWh MWh in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Electric Commodity [Member] | |||
Derivative [Line Items] | |||
Derivative, Mwh of electricity | [1] | 9.4 | 5.5 |
[1] | Amounts are not reflective of net positions in the underlying commodities. |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities Consideration of Credit Risk Concentrations (Details) - Credit Concentration Risk $ in Millions | Sep. 30, 2019USD ($)Counterparty |
Derivative [Line Items] | |
Significant counterparties | 6 |
Municipal or cooperative electric entities or other utilities | |
Derivative [Line Items] | |
Significant counterparties | 6 |
External credit rating, investment grade | |
Derivative [Line Items] | |
Significant counterparties | 1 |
Credit exposure | $ | $ 14.2 |
Credit exposure, percentage | 31.00% |
Internal investment grade | |
Derivative [Line Items] | |
Significant counterparties | 5 |
Credit exposure | $ | $ 9.7 |
Credit exposure, percentage | 21.00% |
Impact of Derivative Activities
Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract] | ||||
Derivative instruments designated as fair value hedges | $ 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 | $ 3.3 | 4.7 | 10.1 | |
FTR settlement gains | $ 1.7 | $ 1.5 | $ 3.4 |
Recurring Fair Value Measuremen
Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Derivatives, Fair Value | ||||||
Return Cash Collateral | $ 0 | $ 0 | $ 0 | |||
Reclaim Cash Collateral | 0 | 0 | 0 | |||
Commodity Contract | ||||||
Changes in Level 3 Commodity Derivatives | ||||||
Balance at beginning of period | 22.2 | $ 35.4 | 14.7 | $ 12.7 | ||
Purchases | 4.4 | 3.2 | 25.5 | 22.5 | ||
Settlements | (5.2) | (10.1) | (24.9) | (35.3) | ||
Net gains recognized as regulatory assets and liabilities | (4.3) | (3.2) | 1.8 | 25.4 | ||
Balance at end of period | 17.1 | 25.3 | 17.1 | 25.3 | ||
Transfers Level 3, Net | 0 | $ 0 | 0 | $ 0 | ||
Other Current Assets | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, net | 20.4 | 20.4 | 17.8 | |||
Other Noncurrent Assets | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, net | 13.4 | 13.4 | 15.8 | |||
Other Current Liabilities | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, net | 3.7 | 3.7 | 3.6 | |||
Other Noncurrent Liabilities | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, net | 13.7 | 13.7 | 16.4 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, gross | 17.3 | 17.3 | 14.9 | |||
Asset, netting | [1] | 0 | 0 | (0.2) | ||
Derivative asset, net | 17.3 | 17.3 | 14.7 | |||
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 | 17.3 | 17.3 | 14.9 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, gross | 17.3 | 17.3 | 14.9 | |||
Asset, netting | [1] | 0 | 0 | (0.2) | ||
Derivative asset, net | 17.3 | 17.3 | 14.7 | |||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Level 1 | Electric Commodity | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, gross | 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 | 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 | 17.3 | 17.3 | 14.9 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0.2 | 0.2 | 0.2 | |||
Liabilities, netting | [1] | 0 | 0 | (0.2) | ||
Derivative liability, net | 0.2 | 0.2 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 1 | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 2 | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Level 3 | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0.2 | 0.2 | 0.2 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Electric Commodity | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0.2 | 0.2 | 0.2 | |||
Liabilities, netting | [1] | 0 | 0 | (0.2) | ||
Derivative liability, net | 0.2 | 0.2 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 1 | Electric Commodity | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 2 | Electric Commodity | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0 | 0 | 0 | |||
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Level 3 | Electric Commodity | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, gross | 0.2 | 0.2 | 0.2 | |||
Fair Value, Measurements, Nonrecurring | Other Current Assets | PPAs | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, net | [2] | 3.1 | 3.1 | 3.1 | ||
Fair Value, Measurements, Nonrecurring | Other Noncurrent Assets | PPAs | ||||||
Derivatives, Fair Value | ||||||
Derivative asset, net | [2] | 13.4 | 13.4 | 15.8 | ||
Fair Value, Measurements, Nonrecurring | Other Current Liabilities | PPAs | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, net | [2] | 3.5 | 3.5 | 3.6 | ||
Fair Value, Measurements, Nonrecurring | Other Noncurrent Liabilities | PPAs | ||||||
Derivatives, Fair Value | ||||||
Derivative liability, net | [2] | $ 13.7 | $ 13.7 | $ 16.4 | ||
[1] | SPS nets derivative instruments and related collateral in its balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2019 and Dec. 31, 2018 . At both Sept. 30, 2019 and Dec. 31, 2018 , 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. | |||||
[2] | 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. |
Fair Value of Long-Term Debt (D
Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Carrying Amount | $ 2,419.3 | $ 2,126.1 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 2,763.2 | $ 2,139.8 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits (Details) $ in Millions | Jul. 01, 2019USD ($) | Jan. 31, 2019USD ($)Plan | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Pension Plan [Member] | |||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Service cost | $ 2.2 | $ 2.4 | $ 6.6 | $ 7.3 | |||
Interest cost (a) | [1] | 5 | 4.6 | 15.1 | 13.8 | ||
Expected return on plan assets (a) | [1] | (7.1) | (7.1) | (21.5) | (21.2) | ||
Amortization of prior service cost (credit) (a) | [1] | 0 | 0 | (0.1) | (0.1) | ||
Amortization of net loss (gain) (a) | [1] | 2.8 | 3.5 | 8.5 | 10.5 | ||
Net periodic benefit cost (credit) | 2.9 | 3.4 | 8.6 | 10.3 | |||
Credits (costs) not recognized due to the effects of regulation | 0.5 | (0.4) | 1.3 | 1.3 | |||
Net benefit cost (credit) recognized for financial reporting | 3.4 | 3 | 9.9 | 11.6 | |||
Contributions to pension plans | $ 1.2 | $ 16.5 | |||||
Pension Plan [Member] | Xcel Energy Inc. | |||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Contributions to pension plans | $ 4 | $ 150 | |||||
Number of pension plans to which contributions were made | Plan | 4 | ||||||
Other Postretirement Benefits Plan [Member] | |||||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Service cost | 0.2 | 0.3 | 0.7 | 0.8 | |||
Interest cost (a) | [1] | 0.4 | 0.4 | 1.3 | 1.2 | ||
Expected return on plan assets (a) | [1] | (0.5) | (0.6) | (1.5) | (1.8) | ||
Amortization of prior service cost (credit) (a) | [1] | (0.1) | (0.1) | (0.4) | (0.3) | ||
Amortization of net loss (gain) (a) | [1] | (0.1) | (0.1) | (0.3) | (0.3) | ||
Net periodic benefit cost (credit) | (0.1) | (0.1) | (0.2) | (0.4) | |||
Credits (costs) not recognized due to the effects of regulation | 0 | 0 | 0 | 0 | |||
Net benefit cost (credit) recognized for financial reporting | $ (0.1) | $ (0.1) | $ (0.2) | $ (0.4) | |||
[1] | The components of net periodic cost other than the service cost component are included in the line item “other expense, net” in the income statement or capitalized on the balance sheet as a regulatory asset. |
SPP OATT Upgrade Costs (Details
SPP OATT Upgrade Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
SPS | Southwest Power Pool (SPP) | SPP Open Access Transmission Tariff Upgrade Costs | |
Public Utilities, General Disclosures [Line Items] | |
Charges For Transmission Service Upgrades | $ 13 |
Commitments and Contingencies S
Commitments and Contingencies SPP Filing to Assign GridLiance Facilities to SPS Rate Zone (Details) - Southwest Power Pool (SPP) - SPP Open Access Transmission Tariff Upgrade Costs $ in Millions | 1 Months Ended |
Aug. 31, 2018USD ($) | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement Increase | $ 9.5 |
Annual Transmission Revenue Requirement (Other Utilities) | 3.5 |
SPS | |
Public Utilities, General Disclosures [Line Items] | |
Annual Transmission Revenue Requirement Increase (SPS) | $ 6 |
Commitments and Contingencies_2
Commitments and Contingencies SPS Filing to Modify Wholesale Transmission Rates (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Public Utilities, General Disclosure [Abstract] | |
Amount proposed changes would increase wholesale transmission revenues | $ 9.4 |
Amount of proposed changes would be recoverable | $ 4.4 |
Commitments and Contingencies L
Commitments and Contingencies Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Weighted Average Discount Rate, Percent | 4.40% | 4.40% | |
Maximum lease term for short-term lease classification | 12 months | ||
Operating Lease Right of Use Assets | |||
Operating Lease, Right-of-Use Asset, Gross | $ 548.3 | $ 548.3 | |
Operating Lease, Right-of-Use Asset, Accumulated Depreciation | (19.3) | (19.3) | |
Operating Lease, Right-of-Use Asset | 529 | 529 | $ 0 |
Operating Leases | |||
Total operating lease expense | 12.6 | 40.5 | |
Short-term lease expense | 0.3 | 1.2 | |
Operating Leases after Adoption of ASC Topic 842 | |||
2019 | 12.4 | 12.4 | |
2020 | 49.6 | 49.6 | |
2021 | 49.5 | 49.5 | |
2022 | 49.6 | 49.6 | |
2023 | 49.6 | 49.6 | |
Thereafter | 505.6 | 505.6 | |
Total minimum obligation | 716.3 | 716.3 | |
Interest component of obligation | (187.3) | (187.3) | |
Present value of minimum obligation | 529 | 529 | |
Less current portion | (26.8) | (26.8) | |
Noncurrent operating lease liabilities | $ 502.2 | $ 502.2 | 0 |
Weighted-average remaining lease term in years | 14 years 4 months | 14 years 4 months | |
Operating Leases before Adoption of ASC 842 | |||
2019 | 51.9 | ||
2020 | 51.4 | ||
2021 | 51.3 | ||
2022 | 51.3 | ||
2023 | 51.3 | ||
Thereafter | 507.1 | ||
PPAs | |||
Operating Lease Right of Use Assets | |||
Operating Lease, Right-of-Use Asset, Gross | $ 500.3 | $ 500.3 | |
Operating Leases | |||
Total operating lease expense | 11.4 | 36.8 | |
Operating Leases after Adoption of ASC Topic 842 | |||
2019 | 11.6 | 11.6 | |
2020 | 46.2 | 46.2 | |
2021 | 46.2 | 46.2 | |
2022 | 46.2 | 46.2 | |
2023 | 46.2 | 46.2 | |
Thereafter | 450.8 | 450.8 | |
Total minimum obligation | 647.2 | 647.2 | |
Interest component of obligation | (165.3) | (165.3) | |
Present value of minimum obligation | 481.9 | 481.9 | |
Operating Leases before Adoption of ASC 842 | |||
2019 | 46.7 | ||
2020 | 46.2 | ||
2021 | 46.2 | ||
2022 | 46.2 | ||
2023 | 46.2 | ||
Thereafter | 450.8 | ||
Other | |||
Operating Lease Right of Use Assets | |||
Operating Lease, Right-of-Use Asset, Gross | 48 | 48 | |
Operating Leases | |||
Total operating lease expense | 1.2 | 3.7 | |
Operating Leases after Adoption of ASC Topic 842 | |||
2019 | 0.8 | 0.8 | |
2020 | 3.4 | 3.4 | |
2021 | 3.3 | 3.3 | |
2022 | 3.4 | 3.4 | |
2023 | 3.4 | 3.4 | |
Thereafter | 54.8 | 54.8 | |
Total minimum obligation | 69.1 | 69.1 | |
Interest component of obligation | (22) | (22) | |
Present value of minimum obligation | $ 47.1 | $ 47.1 | |
Operating Leases before Adoption of ASC 842 | |||
2019 | 5.2 | ||
2020 | 5.2 | ||
2021 | 5.1 | ||
2022 | 5.1 | ||
2023 | 5.1 | ||
Thereafter | $ 56.3 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - MW | Sep. 30, 2019 | Dec. 31, 2018 |
Independent Power Producing Entities | ||
Purchased Power Agreements [Abstract] | ||
Generating capacity (in MW) | 1,197 | 1,197 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income Tax Expense (Benefit) | $ 10.5 | $ 14.7 | $ 32.6 | $ 35.4 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of period | 2,536.6 | |||
Accumulated other comprehensive loss at end of period | $ 2,892.2 | $ 2,892.2 |
Uncategorized Items - sps093019
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | $ 100,000 |