Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 23, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-03789 | ||
Entity Incorporation, State or Country Code | NM | ||
Entity Tax Identification Number | 75-0575400 | ||
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 Well-Known Season Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 100 | ||
Entity Registrant Name | SOUTHWESTERN PUBLIC SERVICE CO | ||
Entity Central Index Key | 0000092521 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
Auditor Location | Minneapolis, Minnesota |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | As of Dec. 31, 2022, there was no material impact from the recent adoption of new accounting pronouncements, nor expected material impact from recently issued accounting pronouncements yet to be adopted, on SPS’ financial statements. |
STATEMENTS OF INCOME
STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues [Abstract] | |||
Operating revenue | $ 2,426 | $ 2,465 | $ 1,870 |
Operating expenses | |||
Electric fuel and purchased power | 1,157 | 1,432 | 835 |
Operating and maintenance expenses | 317 | 271 | 275 |
Demand side management program expenses | 23 | 17 | 16 |
Depreciation and amortization | 388 | 300 | 295 |
Taxes (other than income taxes) | 107 | 79 | 90 |
Total operating expenses | 1,992 | 2,099 | 1,511 |
Operating income | 434 | 366 | 359 |
Other income (expense), net | 0 | 1 | (2) |
Allowance for funds used during construction — equity | 3 | 4 | 33 |
Interest charges and financing costs | |||
Interest Expense | 143 | 114 | 119 |
Allowance for funds used during construction — debt | (2) | (2) | (14) |
Total interest charges and financing costs | 141 | 112 | 105 |
Income before income taxes | 296 | 259 | 285 |
Income taxes | (53) | (59) | (10) |
Net income | $ 349 | $ 318 | $ 295 |
STATEMENTS OF INCOME (Parenthet
STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | |||
Other financing costs | $ 4 | $ 4 | $ 4 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net Income (Loss) Attributable to Parent | $ 349 | $ 318 | $ 295 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 391 | 303 | 298 |
Deferred income taxes | 17 | (47) | 22 |
Allowance for equity funds used during construction | (3) | (4) | (33) |
Provision for bad debts | 9 | 6 | 6 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (67) | (29) | (14) |
Increase (Decrease) in Accrued Unbilled Revenues | (16) | (10) | 0 |
Inventories | (19) | (21) | (35) |
Prepayments and other | (50) | 16 | (14) |
Accounts payable | 22 | 4 | 8 |
Net regulatory assets and liabilities | (5) | (154) | (115) |
Other current liabilities | 52 | (1) | 13 |
Pension and other employee benefit obligations | 1 | (18) | (16) |
Other, net | (5) | (4) | (1) |
Net cash provided by operating activities | 676 | 359 | 414 |
Investing activities | |||
Utility capital/construction expenditures | (578) | (580) | (1,142) |
Investments in utility money pool arrangement | (176) | (83) | (4) |
Receipts from utility money pool arrangement | 176 | 83 | 4 |
Net cash used in investing activities | (578) | (580) | (1,142) |
Financing activities | |||
(Repayments of) proceeds from short-term borrowings, net | (103) | (113) | 250 |
Proceeds from issuance of long-term debt | 196 | 247 | 343 |
Borrowings under utility money pool arrangement | 336 | 539 | 561 |
Repayments under utility money pool arrangement | (427) | (448) | (561) |
Capital contributions from parent | 220 | 301 | 438 |
Dividends paid to parent | (319) | (310) | (313) |
Net cash provided by financing activities | (97) | 216 | 718 |
Net change in cash and cash equivalents | 1 | (5) | (10) |
Cash and cash equivalents at beginning of period | 1 | 6 | 16 |
Cash and cash equivalents at end of period | 2 | 1 | 6 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest (net of amounts capitalized) | (137) | (108) | (98) |
Cash paid for income taxes, net | 81 | 21 | 10 |
Supplemental disclosure of non-cash investing transactions: | |||
Accrued property, plant and equipment additions | 86 | 37 | 99 |
Inventory transfers to plant, property and equipment | 10 | 6 | 31 |
Allowance for Funds Used During Construction, Investing Activities | $ 3 | $ 4 | $ 33 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 2 | $ 1 |
Accounts receivable, net | 167 | 115 |
Accounts receivable from affiliates | 15 | 9 |
Accrued unbilled revenues | 140 | 125 |
Inventories | 61 | 51 |
Regulatory assets | 217 | 193 |
Derivative instruments | 122 | 30 |
Prepaid taxes | 5 | 3 |
Prepayments and other | 68 | 21 |
Total current assets | 797 | 548 |
Property, plant and equipment, net | 8,129 | 7,838 |
Other assets | ||
Regulatory assets | 359 | 380 |
Derivative instruments | 3 | 6 |
Operating lease right-of-use assets | 434 | 463 |
Other | 26 | 27 |
Total other assets | 822 | 876 |
Total assets | 9,748 | 9,262 |
Current liabilities | ||
Short-term debt | 34 | 137 |
Borrowings under utility money pool arrangement | 0 | 91 |
Accounts payable | 209 | 172 |
Accounts payable to affiliates | 23 | 16 |
Regulatory liabilities | 148 | 54 |
Taxes accrued | 61 | 47 |
Accrued interest | 31 | 30 |
Dividends payable to parent | 61 | 58 |
Derivative instruments | 4 | 4 |
Operating lease liabilities | 31 | 30 |
Other | 58 | 24 |
Total current liabilities | 660 | 663 |
Deferred credits and other liabilities | ||
Deferred income taxes | 739 | 702 |
Regulatory liabilities | 715 | 709 |
Asset retirement obligations | 147 | 116 |
Derivative instruments | 2 | 6 |
Pension and employee benefit obligations | 12 | 8 |
Operating lease liabilities | 403 | 434 |
Other | 9 | 8 |
Total deferred credits and other liabilities | 2,027 | 1,983 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | 3,211 | 3,013 |
Common Stock, Value, Issued | 0 | 0 |
Additional paid in capital | 3,311 | 3,091 |
Retained earnings | 540 | 513 |
Accumulated other comprehensive loss | (1) | (1) |
Total common stockholder's equity | 3,850 | 3,603 |
Total liabilities and equity | $ 9,748 | $ 9,262 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200 | 200 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares, Outstanding | 100 | 100 |
STATEMENTS OF COMMON STOCKHOLDE
STATEMENTS OF COMMON STOCKHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common stock | Additional Paid In Capital | Retained Earnings | AOCI Attributable to Parent |
Beginning Balance (in shares) at Dec. 31, 2019 | 100 | ||||
Beginning Balance at Dec. 31, 2019 | $ 2,885 | $ 0 | $ 2,351 | $ 535 | $ (1) |
Increase (Decrease) in Stockholder's Equity | |||||
Net Income (Loss) Attributable to Parent | 295 | 295 | |||
Common dividends declared to parent | (321) | (321) | |||
Contribution of capital by parent | 439 | 439 | |||
Ending Balance (in shares) at Dec. 31, 2020 | 100 | ||||
Ending Balance at Dec. 31, 2020 | 3,298 | $ 0 | 2,790 | 509 | (1) |
Increase (Decrease) in Stockholder's Equity | |||||
Net Income (Loss) Attributable to Parent | 318 | 318 | |||
Common dividends declared to parent | (314) | (314) | |||
Contribution of capital by parent | $ 301 | 301 | |||
Ending Balance (in shares) at Dec. 31, 2021 | 100 | 100 | |||
Ending Balance at Dec. 31, 2021 | $ 3,603 | $ 0 | 3,091 | 513 | (1) |
Increase (Decrease) in Stockholder's Equity | |||||
Net Income (Loss) Attributable to Parent | 349 | 349 | |||
Common dividends declared to parent | (322) | (322) | |||
Contribution of capital by parent | $ 220 | 220 | |||
Ending Balance (in shares) at Dec. 31, 2022 | 100 | 100 | |||
Ending Balance at Dec. 31, 2022 | $ 3,850 | $ 0 | $ 3,311 | $ 540 | $ (1) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal SPS is involved in various litigation matters in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for losses probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, would have a material effect on SPS’ financial statements. Legal fees are generally expensed as incurred. Other Litigation — In 2019, SPS and Xcel Energy Services, Inc. were served with a lawsuit related to a traffic accident that resulted in two fatalities in New Mexico. In July 2022, a confidential settlement was reached of approximately $50 million. No impact to earnings occurred, as the amounts were reimbursed by SPS’ insurers. An asset has been recorded to reflect the reimbursement within Prepayments and other current assets. Rate Matters SPS is involved in various regulatory proceedings arising in the ordinary course of business. Until resolution, typically in the form of a rate order, uncertainties may exist regarding the ultimate rate treatment for certain activities and transactions. Amounts have been recognized for probable and reasonably estimable losses that may result. Unless otherwise disclosed, any reasonably possible range of loss in excess of any recognized amount is not expected to have a material effect on the financial statements. SPP OATT Upgrade Costs — Costs of transmission upgrades may be recovered from other SPP customers whose transmission service depends on capacity enabled by the upgrade under the SPP OATT. SPP had not been charging its customers for these upgrades, even though the SPP OATT had allowed SPP to do so since 2008. In 2016, the FERC granted SPP’s request to recover these previously unbilled charges and SPP subsequently billed SPS approximately $13 million. In July 2018, SPS’ appeal to the D.C. Circuit over the FERC rulings granting SPP the right to recover previously unbilled charges was remanded to the FERC. In February 2019, the FERC reversed its 2016 decision and ordered SPP to refund charges retroactively collected from its transmission customers, including SPS, related to periods before September 2015. In March 2020, SPP and Oklahoma Gas & Electric separately filed petitions for review of the FERC’s orders at the D.C. Circuit. In August 2021, the D.C. Circuit issued a decision denying these appeals and upholding the FERC’s orders. Refunds received by SPS are expected to be given back to SPS customers through future rates. In October 2017, SPS filed a separate related complaint asserting SPP assessed upgrade charges to SPS in violation of the SPP OATT. In March 2018, the FERC issued an order denying the SPS complaint. SPS filed a request for rehearing in April 2018. The FERC issued a tolling order granting a rehearing for further consideration in May 2018. If SPS’ complaint results in additional charges or refunds, SPS will seek to recover or refund the amount through future SPS customer rates. In October 2020, SPS filed a petition for review of the FERC’s March 2018 order and May 2018 tolling order at the D.C. Circuit. In February 2022, FERC issued an order rejecting SPS’ request for hearing. SPS has appealed that order. That appeal has been combined with SPS’ prior appeal. Environmental New and changing federal and state environmental mandates can create financial liabilities for SPS, which are normally recovered through the regulated rate process. Site Remediation Various federal and state environmental laws impose liability where hazardous substances or other regulated materials have been released to the environment. SPS may sometimes pay all or a portion of the cost to remediate sites where past activities of SPS’ predecessors or other parties have caused environmental contamination. Environmental contingencies could arise from various situations, including sites of former MGPs; and third-party sites, such as landfills, for which SPS is alleged to have sent wastes to that site. Historical MGP, Landfill and Disposal Sites SPS is remediating one former disposal site. SPS has recognized its best estimate of costs/liabilities from final resolution of these issues; however, the outcome and timing are unknown. In addition, there may be insurance recovery and/or recovery from other potentially responsible parties, offsetting a portion of costs incurred. Environmental Requirements — Air Reasonable Progress Rule and BART — In 2016, the EPA adopted a final rule establishing a federal implementation plan for reasonable further progress under the regional haze program for the state of Texas. The rule imposes SO 2 emission limitations which would require the installation of dry scrubbers on Tolk Units 1 and 2; compliance would have been required by February 2021. SPS appealed the EPA’s decision and obtained a stay of the final rule. In 2017, the EPA adopted a final BART rule for Texas. Under that rule, Harrington Units 1, 2, and 3 and Tolk Units 1 and 2 participate in intrastate SO 2 AROs — AROs have been recorded for SPS’ assets, as follows: 2022 (Millions of Dollars) Jan. 1, 2022 Accretion Cash Flow Revisions (a) Dec. 31, 2022 Electric Steam and other production $ 54 $ 3 $ 26 $ 83 Wind 52 2 — 54 Distribution 10 — — 10 Total liability $ 116 $ 5 $ 26 $ 147 (a) In 2022, AROs were revised for changes in estimates of cash flows. Revisions in steam and other production AROs primarily related to changes in costs for steam production ponds remediation. 2021 (Millions of Dollars) Jan. 1, 2021 Accretion Dec. 31, 2021 (a) Electric Steam and other production $ 52 $ 2 $ 54 Wind 50 2 52 Distribution 10 — 10 Total liability $ 112 $ 4 $ 116 (a) No AROs were revised in 2021. Indeterminate AROs — Outside of the recorded asbestos AROs, other plants or buildings may contain asbestos due to the age of many of SPS’ facilities, but no confirmation or measurement of the cost of removal could be determined as of Dec. 31, 2022. Therefore, an ARO has not been recorded for these facilities. Leases SPS evaluates contracts that may contain leases, including PPAs and arrangements for the use of office space and other facilities, vehicles and equipment. A contract contains a lease if it conveys the exclusive right to control the use of a specific asset. 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. The present value of future operating lease payments is recognized in current 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 generally calculated using the estimated incremental borrowing rate (weighted average of 4.4%). SPS has elected to utilize 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) Dec. 31, 2022 Dec. 31, 2021 PPAs $ 500 $ 500 Other 44 45 Gross operating lease ROU assets 544 545 Accumulated amortization (110) (82) Net operating lease ROU assets $ 434 $ 463 Components of lease expense: (Millions of Dollars) 2022 2021 2020 Operating leases PPA capacity payments $ 53 $ 53 $ 48 Other operating leases (a) 4 4 3 Total operating lease expense (b) $ 57 $ 57 $ 51 (a) Includes short-term lease expense o f $1 million for 2022, 2021 and 2020. (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. Commitments under operating leases as of Dec. 31, 2022: (Millions of Dollars) PPA (a) (b) Operating Leases Other Operating Leases Total Leases 2023 $ 46 $ 3 $ 49 2024 46 3 49 2025 46 4 50 2026 46 4 50 2027 46 4 50 Thereafter 266 36 302 Total minimum obligation 496 54 550 Interest component of obligation (102) (14) (116) Present value of minimum obligation 394 40 434 Less current portion (31) Noncurrent operating and finance lease liabilities $ 403 Weighted-average remaining lease term in years 11 (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. Non-Lease PPAs — SPS has entered into PPAs with other utilities and energy suppliers for purchased power to meet system load and energy requirements, operating reserve obligations and as part of wholesale and commodity trading activities. In general, these agreements provide for energy payments, based on actual energy delivered and capacity payments. Certain PPAs, accounted for as executory contracts with various expiration dates through 2024, contain minimum energy purchase requirements. Included in electric fuel and purchased power expenses for PPAs accounted for as executory contracts, were payments for capacity of $12 million in 2022, 2021 and 2020. Capacity and energy payments are contingent on the IPPs meeting contract obligations, including plant availability requirements. Certain contractual payments are adjusted based on market indices. At Dec. 31, 2022, the estimated future payments for capacity that SPS is obligated to purchase pursuant to these executory contracts, subject to availability, were as follows: (Millions of Dollars) Capacity 2023 $ 13 2024 6 2025 — 2026 — 2027 — Thereafter — Total $ 19 Fuel Contracts — SPS has entered into various long-term commitments for the purchase and delivery of a significant portion of its coal and natural gas requirements. These contracts expire between 2023 and 2033. SPS is required to pay additional amounts depending on actual quantities shipped under these agreements. Estimated minimum purchases under these contracts as of Dec. 31, 2022: (Millions of Dollars) Coal Natural gas Natural gas 2023 $ 201 $ 33 30 2024 133 — 16 2025 18 — 12 2026 19 — 6 2027 19 — 6 Thereafter — — 8 Total $ 390 $ 33 $ 78 VIEs PPAs — Under certain PPAs, SPS purchases power from IPPs for which SPS is required to reimburse fuel costs, or to participate in tolling arrangements under which SPS procures the natural gas required to produce the energy that it purchases. SPS has determined that certain IPPs are VIEs. SPS is not subject to risk of loss from the operations of these entities, and no significant financial support is required other than contractual payments for energy and capacity. In addition, certain solar PPAs provide an option to purchase emission allowances or sharing provisions related to production credits generated by the solar facility under contract. These specific PPAs create a variable interest in the IPP. SPS evaluated each of these VIEs for possible consolidation, including review of qualitative factors such as the length and terms of the contract, control over O&M, control over dispatch of electricity, historical and estimated future fuel and electricity prices, and financing activities. SPS concluded that these entities are not required to be consolidated in its financial statements because it does not have the power to direct the activities that most significantly impact the entities’ economic performance. SPS had approximately 1,197 MW of capacity under long-term PPAs at both Dec. 31, 2022 and 2021 with entities that have been determined to be VIEs. These agreements have expiration dates through 2041. Fuel Contracts — SPS purchases all of its coal requirements for its Harrington and Tolk plants from TUCO Inc. under contracts that will expire in December 2024 and December 2027, respectively. TUCO arranges for the purchase, receiving, transporting, unloading, handling, crushing, weighing, and delivery of coal to meet SPS’ requirements. TUCO is responsible for negotiating and administering contracts with coal suppliers, transporters and handlers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | General — SPS is engaged in the regulated generation, purchase, transmission, distribution and sale of electricity. SPS’ financial statements are presented in accordance with GAAP. All of SPS’ underlying accounting records also conform to the FERC uniform system of accounts or to systems required by various state regulatory commissions. Certain amounts in the financial statements or notes have been reclassified for comparative purposes; however, such reclassifications did not affect net income, total assets, liabilities, equity or cash flows. SPS has evaluated events occurring after Dec. 31, 2022 up to the date of issuance of these financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. Use of Estimates — SPS uses estimates based on the best information available in recording transactions and balances resulting from business operations. Estimates are used for items such as plant depreciable lives or potential disallowances, AROs, certain regulatory assets and liabilities, tax provisions, uncollectible amounts, environmental costs, unbilled revenues, jurisdictional fuel and energy cost allocations and actuarially determined benefit costs. Recorded estimates are revised when better information becomes available or actual amounts can be determined. Revisions can affect operating results. Regulatory Accounting — SPS accounts for income and expense items in accordance with accounting guidance for regulated operations. Under this guidance: • Certain costs, which would otherwise be charged to expense or other comprehensive income, are deferred as regulatory assets based on the expected ability to recover the costs in future rates. • Certain credits, which would otherwise be reflected as income or other comprehensive income, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates or because the amounts were collected in rates prior to the costs being incurred. Estimates and assumptions for recovery of deferred costs and refund of deferred credits are based on specific ratemaking decisions, precedent or other information available. Regulatory assets and liabilities are amortized consistent with the treatment in the rate setting process. If changes in the regulatory environment occur, SPS may no longer be eligible to apply this accounting treatment and may be required to eliminate regulatory assets and liabilities. Such changes could have a material effect on SPS’ results of operations, financial condition and cash flows. See Note 4 for further information. Income Taxes — SPS accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax bases of assets and liabilities. SPS uses rates that are scheduled to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The effects of tax rate changes that are attributable to the utility subsidiaries are generally subject to a normalization method of accounting. Therefore, the revaluation of most of the utility subsidiaries’ net deferred taxes upon a tax rate reduction results in the establishment of a net regulatory liability, refundable to utility customers over the remaining life of the related assets. SPS anticipates that a tax rate increase would predominantly result in the establishment of a regulatory asset, subject to an evaluation of whether future recovery is expected. Reversal of certain temporary differences are accounted for as current income tax expense due to the effects of past regulatory practices when deferred taxes were not required to be recorded due to the use of flow through accounting for ratemaking purposes. Tax credits are recorded when earned unless there is a requirement to defer the benefit and amortize over the book depreciable lives of the related property. The requirement to defer and amortize these credits specifically applies to certain federal ITCs, as determined by tax regulations and SPS tax elections. For tax credits otherwise eligible to be recognized when earned, SPS considers the impact of rate regulation to determine if these credits and related adjustments should be deferred as regulatory assets or liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Utility rate regulation has resulted in the recognition of regulatory assets and liabilities related to income taxes. SPS measures and discloses uncertain tax positions that it has taken or expects to take in its income tax returns. A tax position is recognized in the financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. Recognition of changes in uncertain tax positions are reflected as a component of income tax expense. Interest and penalties related to income taxes are reported within other (expense) income or interest charges in the statements of income. Xcel Energy Inc. and its subsidiaries, including SPS file consolidated federal income tax returns as well as consolidated or separate state income tax returns. Federal income taxes paid by Xcel Energy Inc. are allocated to its subsidiaries based on separate company computations. A similar allocation is made for state income taxes paid by Xcel Energy Inc. in connection with consolidated state filings. Xcel Energy Inc. also allocates its own income tax benefits to its direct subsidiaries. See Note 7 for further information. Property, Plant and Equipment and Depreciation in Regulated Operations — Property, plant and equipment is stated at original cost. The cost of plant includes direct labor and materials, contracted work, overhead costs and AFUDC. The cost of plant retired is charged to accumulated depreciation and amortization. Amounts recovered in rates for future removal costs are recorded as regulatory liabilities. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance costs are charged to expense as incurred. Maintenance and replacement of items determined to be less than a unit of property are charged to operating expenses as incurred. Property, plant and equipment is tested for impairment when it is determined that the carrying value of the assets may not be recoverable. A loss is recognized in the current period if it becomes probable that part of a cost of a plant under construction or recently completed plant will be disallowed for recovery from customers and a reasonable estimate of the disallowance can be made. For investments in property, plant and equipment that are abandoned and not expected to go into service, incurred costs and related deferred tax amounts are compared to the discounted estimated future rate recovery, and a loss is recognized, if necessary. Depreciation expense is recorded using the straight-line method over the plant’s commission approved useful life. Actuarial life studies are performed and submitted to the state and federal commissions for review. Upon acceptance by the various commissions, the resulting lives and net salvage rates are used to calculate depreciation. Plant removal costs are typically recognized at the amounts recovered in rates as authorized by the applicable regulator. Accumulated removal costs are reflected in the balance sheet as a regulatory liability. Depreciation expense, expressed as a percentage of average depreciable property, was 3.4% i n 2022, 3.3% in 2021 and 3.1% in 2020. See Note 3 for further information. AROs — SPS records AROs as a liability for the fair value of an ARO to be recognized in the period incurred (if it can be reasonably estimated), with the offsetting/associated costs capitalized as a long-lived asset. The liability is generally increased over time by applying the effective interest method of accretion and the capitalized costs are typically depreciated over the useful life of the long-lived asset. Changes resulting from revisions to timing or amounts of expected asset retirement cash flows are recognized as an increase or a decrease in the ARO. See Note 10 for further information. Benefit Plans and Other Postretirement Benefits — SPS maintains pension and postretirement benefit plans for eligible employees. Recognizing the cost of providing benefits and measuring the projected benefit obligation of these plans requires management to make various assumptions and estimates. Certain unrecognized actuarial gains and losses and unrecognized prior service costs or credits are deferred as regulatory assets and liabilities, rather than recorded as other comprehensive income, based on regulatory recovery mechanisms. See Note 9 for further information. Environmental Costs — Environmental costs are recorded when it is probable SPS is liable for remediation costs and the amount can be reasonably estimated. Costs are deferred as a regulatory asset if it is probable the costs will be recovered from customers in future rates. Otherwise, the costs are expensed. For certain environmental costs related to facilities currently in use, such as for emission-control equipment, the cost is capitalized and depreciated over the life of the plant. Estimated remediation costs are regularly adjusted as estimates are revised and remediation is performed. If other participating potentially responsible parties exist and acknowledge their potential involvement with a site, costs are estimated and recorded only for SPS’ expected share of the cost. Future costs of restoring sites are treated as a capitalized cost of plant retirement. The depreciation expense levels recoverable in rates include a provision for removal expenses. Removal costs recovered in rates before the related costs are incurred are classified as a regulatory liability. See Note 10 for further information. Revenue from Contracts with Customers — Performance obligations related to the sale of energy are satisfied as energy is delivered to customers. SPS recognizes revenue that corresponds to the price of the energy delivered to the customer. The measurement of energy sales to customers is generally based on the reading of their meters, which occurs systematically throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is recognized. A separate financing component of collections from customers is not recognized as contract terms are short-term in nature. Revenues are net of any excise or sales taxes or fees. SPS participates in SPP. SPS recognizes physical sales to customers (native load and wholesale) on a gross basis in electric revenues and cost of sales. Revenues and charges for short-term physical wholesale sales of excess energy transacted through RTOs are also recorded on a gross basis. Other revenues and charges settled/facilitated through an RTO are recorded on a net basis in cost of sales. See Note 6 for further information. Cash and Cash Equivalents — SPS considers investments in instruments with a remaining maturity of 3 months or less at the time of purchase to be cash equivalents. Accounts Receivable and Allowance for Bad Debts — Accounts receivable are stated at the actual billed amount net of an allowance for bad debts. SPS establishes an allowance for uncollectible receivables based on a policy that reflects its expected exposure to the credit risk of customers. As of Dec. 31, 2022 and 2021, the allowance for bad debts was $13 million and $12 million, respectively. Inventory — Inventory is recorded at the lower of average cost or net realizable value and consisted of the following: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Inventories Materials and supplies $ 42 $ 29 Fuel 19 22 Total inventories $ 61 $ 51 Fair Value Measurements — SPS presents cash equivalents, interest rate derivatives and commodity derivatives at estimated fair values in its financial statements. For interest rate derivatives, quoted prices based primarily on observable market interest rate curves are used to estimate fair value. For commodity derivatives, the most observable inputs available are generally used to determine the fair value of each contract. In the absence of a quoted price, quoted prices for similar contracts or internally prepared valuation models may be used to determine fair value. For the pension and postretirement plan assets and nuclear decommissioning fund, published trading data and pricing models, generally using the most observable inputs available, are utilized to determine fair value for each security. See Notes 8 and 9 for further information. Derivative Instruments — SPS uses derivative instruments in connection with its commodity trading activities, and to manage risk associated with changes in interest rates, and utility commodity prices, including forward contracts, futures, swaps and options. Any derivative instruments not qualifying for the normal purchases and normal sales exception are recorded on the balance sheets at fair value as derivative instruments. Classification of changes in fair value for those derivative instruments is dependent on the designation of a qualifying hedging relationship. Changes in fair value of derivative instruments not designated in a qualifying hedging relationship are reflected in current earnings or as a regulatory asset or liability. Classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Gains or losses on commodity trading transactions are recorded as a component of electric operating revenues. Normal Purchases and Normal Sales — SPS enters into contracts for purchases and sales of commodities for use in its operations. At inception, contracts are evaluated to determine whether they contain a derivative, and if so, whether they may be exempted from derivative accounting if designated as normal purchases or normal sales. See Note 8 for further information. Other Utility Items AFUDC — AFUDC represents the cost of capital used to finance utility construction activity and is computed by applying a composite financing rate to qualified CWIP. The amount of AFUDC capitalized as a utility construction cost is credited to other nonoperating income (for equity capital) and interest charges (for debt capital). AFUDC amounts capitalized are included in SPS’ rate base. Alternative Revenue — Certain rate rider mechanisms (including DSM programs) qualify as alternative revenue programs. These mechanisms arise from instances in which the regulator authorizes a future surcharge in response to past activities or completed events. When certain criteria are met, including expected collection within 24 months, revenue is recognized equal to the revenue requirement, which may include incentives and return on rate base items. Billing amounts are revised periodically for differences between total amount collected and revenue earned, which may increase or decrease the level of revenue collected from customers. Alternative revenues arising from these programs are presented on a gross basis and disclosed separately from revenue from contracts with customers. See Note 6 for further information. Conservation Programs — SPS has implemented programs in its jurisdictions to assist customers in conserving energy and reducing peak demand on the electric system. These programs include commercial motor, air conditioner and lighting upgrades, as well as residential rebates for participation in air conditioner interruption and home weatherization. The costs incurred for some DSM programs are deferred as permitted by the applicable regulatory jurisdiction. For those programs, costs are deferred if it is probable future revenue will be provided to permit recovery of the incurred cost. Revenues recognized for incentive programs designed for recovery of lost margins and/or conservation performance incentives are limited to amounts expected to be collected within 24 months from the annual period in which they are earned. SPS recovers approved conservation program costs in base rate revenue or through a rider. Emissions Allowances — Emissions allowances are recorded at cost, including broker commission fees. The inventory accounting model is utilized for all emission allowances and sales of these allowances are included in electric revenues. RECs — Cost of RECs that are utilized for compliance is recorded as electric fuel and purchased power expense. SPS reduces recoverable fuel and purchased power costs for the cost of RECs received. An inventory accounting model is used to account for RECs, however these assets are classified as regulatory assets if amounts are recoverable in future rates. Sales of RECs are recorded in electric revenues on a gross basis. Cost of these RECs and amounts credited to customers under margin-sharing mechanisms are recorded in electric fuel and purchased power expense. |
Property Plant and Equipment Pr
Property Plant and Equipment Property Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Major classes of property, plant and equipment (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Property, plant and equipment, net Electric plant $ 10,182 $ 9,639 Plant to be retired (a) 266 299 CWIP 167 171 Total property, plant and equipment 10,615 10,109 Less accumulated depreciation (2,486) (2,271) Property, plant and equipment, net $ 8,129 $ 7,838 (a) Amounts include Tolk and coal generation assets at Harrington pending facility gas conversion and are presented net of accumulated depreciation. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory assets and liabilities are created for amounts that regulators may allow to be collected or may require to be paid back to customers in future electric rates. SPS would be required to recognize the write-off of regulatory assets and liabilities in net income or other comprehensive income if changes in the utility industry no longer allow for the application of regulatory accounting guidance under GAAP. Components of regulatory assets: (Millions of Dollars) See Note(s) Remaining Amortization Period Dec. 31, 2022 Dec. 31, 2021 (a) Regulatory Assets Current Noncurrent Current Noncurrent Pension and retiree medical obligations 9 Various $ 2 $ 146 $ 11 $ 135 Net AROs (b) 1, 10 Various — 48 — 40 Excess deferred taxes — TCJA 7 Various 1 48 2 50 Recoverable deferred taxes on AFUDC Plant lives — 40 — 41 Deferred natural gas and electric energy/fuel costs One three 136 34 146 4 Losses on reacquired debt Term of related debt 1 19 1 19 Texas revenue surcharges One 69 — 20 64 Other Various 8 24 13 27 Total regulatory assets $ 217 $ 359 $ 193 $ 380 (a) Prior period amounts have been restated to conform with current year presentation. (b) Includes amounts recorded for future recovery of AROs. Components of regulatory liabilities: (Millions of Dollars) See Note(s) Remaining Amortization Period Dec. 31, 2022 Dec. 31, 2021 (a) Regulatory Liabilities Current Noncurrent Current Noncurrent Deferred income tax adjustments and TCJA refunds (b) 7 Various $ — $ 469 $ 15 $ 486 Plant removal costs 1, 10 Various — 198 — 190 Effects of regulation on employee benefit costs Various — 20 — 19 Renewable resources and environmental initiatives Various — 14 — 7 Formula rates One two 10 8 6 4 Contract valuation adjustments (c) 1, 8 One two 119 1 27 1 Other Various 19 5 6 2 Total regulatory liabilities $ 148 $ 715 $ 54 $ 709 (a) Prior period amounts have been restated to conform with current year presentation. (b) Includes the revaluation of recoverable/regulated plant accumulated deferred income taxes and revaluation impact of non-plant accumulated deferred income taxes due to the TCJA. (c) Includes the fair value of FTR instruments utilized/intended to offset the impacts of transmission system congestion. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Year Ended Dec. 31 2022 2021 2020 Borrowing limit $ 100 $ 100 $ 100 $ 100 Amount outstanding at period end — — 91 — Average amount outstanding 7 35 51 43 Maximum amount outstanding 42 100 100 100 Weighted average interest rate, computed on a daily basis 3.17 % 0.44 % 0.05 % 0.54 % Weighted average interest rate at end of period N/A N/A 0.05 N/A Commercial Paper — Commercial paper outstanding: (Millions of Dollars, Except Interest Rates) Three Months Ended Dec. 31, 2022 Year Ended Dec. 31 2022 2021 2020 Borrowing limit $ 500 $ 500 $ 500 $ 500 Amount outstanding at period end 34 34 137 250 Average amount outstanding 20 100 63 44 Maximum amount outstanding 65 324 342 250 Weighted average interest rate, computed on a daily basis 4.08 % 0.79 % 0.21 % 1.11 % Weighted average interest rate at end of period 4.55 4.55 0.26 0.29 Letters of Credit — SPS may use letters of credit, typically with terms of one year, to provide financial guarantees for certain operating obligations. At both Dec. 31, 2022 and 2021, 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. 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) 2022 2021 46% 47% $50 2 (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, 2022, SPS was in compliance with all financial covenants. SPS had the following committed credit facility available as of Dec. 31, 2022 (in millions) of dollars: Credit Facility (a) Drawn (b) Available $ 500 $ 36 $ 464 (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, 2022 and 2021. 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 Instrument Interest Rate Maturity Date 2022 2021 First mortgage bonds 3.30 % June 15, 2024 $ 150 $ 150 First mortgage bonds 3.30 June 15, 2024 200 200 Unsecured senior notes 6.00 Oct. 1, 2033 100 100 Unsecured senior notes 6.00 Oct. 1, 2036 250 250 First mortgage bonds 4.50 Aug. 15, 2041 200 200 First mortgage bonds 4.50 Aug. 15, 2041 100 100 First mortgage bonds 4.50 Aug. 15, 2041 100 100 First mortgage bonds 3.40 Aug. 15, 2046 300 300 First mortgage bonds 3.70 Aug. 15, 2047 450 450 First mortgage bonds 4.40 Nov. 15, 2048 300 300 First mortgage bonds 3.75 June 15, 2049 300 300 First mortgage bonds 3.15 May 1, 2050 350 350 First mortgage bonds (a) 3.15 May 1, 2050 250 250 First mortgage bonds (b) 5.15 June 1, 2052 200 — Unamortized discount (10) (9) Unamortized debt issuance cost (29) (28) Total long-term debt $ 3,211 $ 3,013 (a) 2020 financing re-opened in 2021. (b) 2022 financing. Maturities of long-term debt: (Millions of Dollars) 2023 $ — 2024 350 2025 — 2026 — 2027 — Deferred Financing Costs — Deferred financing costs of approximately $29 million and $28 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt at Dec. 31, 2022 and 2021, respectively. SPS is amortizing these financing costs over the remaining maturity periods of the related debt. Capital Stock — SPS has the following preferred stock: Preferred Stock Authorized (Shares) Par Value of Preferred Stock Preferred Stock Outstanding (Shares) 2022 and 2021 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, 2022: Equity to Total Capitalization Ratio Equity to Total Capitalization Ratio Actual (a) Low High 2022 45.0 % 55.0 % 54.3 % (a) Excludes short-term debt. Unrestricted Retained Earnings Total Capitalization Limit on Total Capitalization (a) $ 540 million $ 7,094 million N/A |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenue is classified by the type of goods/services rendered and market/customer type. SPS’ operating revenues consisted of the following: Year Ended Dec. 31 (Millions of Dollars) 2022 2021 2020 Major revenue types Revenue from contracts with customers: Residential $ 445 $ 375 $ 359 C&I 1,102 842 739 Other 51 38 39 Total retail 1,598 1,255 1,137 Wholesale 407 873 345 Transmission 296 287 279 Other 10 6 4 Total revenue from contracts with customers 2,311 2,421 1,765 Alternative revenue and other 115 44 105 Total revenues $ 2,426 $ 2,465 $ 1,870 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. Effective income tax rate for years ended Dec. 31: 2022 2021 (c) 2020 (c) Federal statutory rate 21.0 % 21.0 % 21.0 % State income tax on pretax income, net of federal tax effect 2.3 2.5 2.3 Increases (decreases) in tax from: Wind PTCs (a) (35.9) (39.7) (18.3) Plant regulatory differences (b) (3.8) (4.8) (6.4) Amortization of excess nonplant deferred taxes (0.9) (1.1) (0.8) Other, net (0.6) (0.7) (1.3) Effective income tax rate (17.9) % (22.8) % (3.5) % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions. (c) Prior period amounts have been restated to conform to current year presentation. Components of income tax expense for years ended Dec. 31: (Millions of Dollars) 2022 2021 2020 Current federal tax benefit $ (65) $ (11) $ (31) Current state tax benefit (5) (1) (1) Deferred federal tax expense (benefit) 3 (57) 13 Deferred state tax expense 13 9 8 Deferred change in unrecognized tax expense 1 1 1 Total income tax benefit $ (53) $ (59) $ (10) Components of deferred income tax expense as of Dec. 31: (Millions of Dollars) 2022 2021 2020 Deferred tax expense (benefit) excluding items below $ 37 $ (23) $ 53 Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities (20) (24) (31) Deferred tax expense (benefit) $ 17 $ (47) $ 22 Components of the net deferred tax liability as of Dec. 31: (Millions of Dollars) 2022 2021 (a) Deferred tax liabilities: Differences between book and tax bases of property $ 1,015 $ 942 Operating lease assets 97 103 Regulatory assets 61 65 Deferred fuel costs 35 34 Pension expense 33 34 Other 1 1 Total deferred tax liabilities $ 1,242 $ 1,179 Deferred tax assets: Operating lease liabilities $ 97 $ 103 Regulatory liabilities 98 98 Tax credit carryforward 294 187 NOL carryforward 2 76 Other employee benefits 6 7 Other 6 6 Total deferred tax assets 503 477 Net deferred tax liability $ 739 $ 702 (a) Prior periods have been reclassified to conform to current year presentation. Other Income Tax Matters — NOL amounts represent the tax loss that is carried forward and tax credits represent the deferred tax asset. NOL and tax credit carryforwards as of Dec. 31 were as follows: (Millions of Dollars) 2022 2021 Federal NOL carryforward $ 8 $ 336 Federal tax credit carryforwards 294 187 State NOL carryforwards 4 111 Federal carryforward periods expire starting 2033 and state carryforward periods expire starting 2034. Federal Tax Loss Carryback Claims — In 2020, Xcel Energy identified certain expenses related to tax years 2009 - 2011 that qualify for an extended carryback claim. SPS is not expected to accrue any income tax expense related to this adjustment. Unrecognized Tax Benefits Federal Audit — SPS is a member of Xcel Energy affiliated group that files a consolidated federal income tax return. The statute of limitations applicable to Xcel Energy’s consolidated federal tax returns expire as follows: Tax Year(s) Expiration 2014 - 2016 March 2024 2019 October 2023 Additionally, the statute of limitations related to the federal tax credit carryforwards will remain open until those credits are utilized in subsequent returns. Further, the statute of limitations related to the additional federal tax loss carryback claim filed in 2020 has been extended. 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. State Audits — SPS is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of Dec. 31, 2022, SPS’ earliest open tax years that are subject to examination by state taxing authorities under applicable statutes of limitations are as follows: State Tax Year(s) Expiration Texas 2016 May 2023 Texas 2017 July 2025 Texas 2018 November 2023 In 2021, Texas began an audit of tax years 2016 - 2019. As of Dec. 31, 2022, no material adjustments have been proposed. Unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which deductibility is highly certain, but for which there is uncertainty about the timing. A change in the timing of deductibility would not affect the ETR but would accelerate the payment to the taxing authority. Unrecognized tax benefits — permanent vs temporary: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Unrecognized tax benefit — Permanent tax positions $ 5 $ 4 Unrecognized tax benefit — Temporary tax positions 4 4 Total unrecognized tax benefit $ 9 $ 8 Changes in unrecognized tax benefits: (Millions of Dollars) 2022 2021 2020 Balance at Jan. 1 $ 8 $ 7 $ 5 Additions based on tax positions related to the current year 1 1 1 Additions for tax positions of prior years — — 5 Reductions for tax positions of prior years — — (4) Balance at Dec. 31 $ 9 $ 8 $ 7 Unrecognized tax benefits were reduced by tax benefits associated with NOL and tax credit carryforwards: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 NOL and tax credit carryforwards $ (8) $ (7) As the IRS progresses its review of the tax loss carryback claim and as state audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $6 million in the next 12 months. Payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. Interest payable related to unrecognized tax benefits: (Millions of Dollars) 2022 2021 2020 (Payable) receivable for interest related to unrecognized tax benefits at Jan. 1 $ (1) $ (1) $ 1 Interest expense related to unrecognized tax benefits 1 — (2) (Payable) receivable for interest related to unrecognized tax benefits at Dec. 31 $ — $ (1) $ (1) No amounts were accrued for penalties related to unrecognized tax benefits as of Dec. 31, 2022, 2021 or 2020. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value Measurements Accounting guidance for fair value measurements and disclosures provides a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities 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 actively traded instruments with observable actual trading prices. • Level 2 — Pricing inputs are other than actual trading 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 include those valued with models requiring significant judgment or estimation. Specific valuation methods include: Interest rate derivatives — Fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — Methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contracts relate to inactive delivery locations or extend to periods beyond those readily observable on active exchanges, the significance of the use of less observable inputs on a valuation is evaluated, and may result in Level 3 classification. Electric commodity derivatives held by SPS include transmission congestion instruments, generally referred to as FTRs. FTRs purchased from 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 values of these instruments are derived from, and designed to offset, the costs of transmission congestion. In addition to overall transmission load, congestion is also influenced by the operating schedules of power plants and the consumption of electricity pertinent to a given transmission path. Unplanned plant outages, scheduled plant maintenance, changes in the relative costs of fuels used in generation, weather and overall changes in demand for electricity can each impact the operating schedules of the power plants on the transmission grid and the value of these instruments. FTRs are recognized at fair value and adjusted each period prior to settlement. Given the limited observability of certain variables underlying the reported auction, values of FTRs, these fair value measurements have been assigned a Level 3 classification. Net congestion costs, including the impact of FTR settlements, are shared through fuel and purchased energy cost recovery mechanisms. As such, the fair value of the unsettled instruments (i.e., derivative asset or liability) is offset/deferred as a regulatory asset or liability. Derivative Activities and 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 utility commodity prices. Interest Rate Derivatives — SPS enters into contracts that effectively fix the interest rate on a specified principal amount of a hypothetical future debt issuance. These financial swaps net settle based on changes in a specified benchmark interest rate, acting as a hedge of changes in market interest rates that will impact specified anticipated debt issuances. These derivative instruments are designated as cash flow hedges for accounting purposes, with changes in fair value prior to occurrence of the hedged transactions recorded as other comprehensive loss. As of Dec. 31, 2022, accumulated other comprehensive loss related to interest rate derivatives included immaterial net losses expected to be reclassified into earnings during the next 12 months as the hedged transactions impact earnings. As of Dec. 31, 2022, SPS had no unsettled interest rate derivatives. Wholesale and Commodity Trading — 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. Derivative instruments entered into for trading purposes are presented in the statements of income as electric revenues, net of any sharing with customers. These activities are not intended to mitigate commodity price risk associated with regulated electric operations. Sharing of these margins is determined through state regulatory proceedings as well as the operation of the FERC-approved joint operating agreement. Commodity Derivatives — SPS enters into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric utility operations. This could include the purchase or sale of energy or energy-related products and FTRs. The most significant derivative positions outstanding at December 31, 2022 and 2021 for this purpose relate to FTR instruments administered by SPP. These instruments are intended to offset the impacts of transmission system congestion. Higher congestion costs in recent years have led to an increase in the fair value of FTRs. Settlements of FTRs are shared with electric customers through fuel and purchased energy cost-recovery mechanisms. When SPS enters into derivative instruments that mitigate commodity price risk on behalf of electric customers, the instruments are not typically designated as qualifying hedging transactions. The classification of unrealized losses or gains on these instruments as a regulatory asset or liability, if applicable, is based on approved regulatory recovery mechanisms. Gross notional amounts of FTRs: (Amounts in Millions) (a) Dec. 31, 2022 Dec. 31, 2021 MWh of electricity 8 8 (a) 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 on 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. As of Dec. 31, 2022, two of SPS’ eight most significant counterparties for these activities, comprising $7 million or 23% of this credit exposure, had investment grade credit ratings from S&P Global Ratings, Moody’s Investor Services, or Fitch Ratings. Five of the eight most significant counterparties, comprising $24 million or 77% of this credit exposure, were not rated by these external ratings agencies, but based on SPS’ internal analysis, had credit quality consistent with investment grade. One of these significant counterparties, comprising an immaterial amount or less than 1% of this credit exposure, had credit quality less than investment grade, based on internal analysis. These eight significant counterparties are municipal or cooperative electric entities, RTOs or other utilities. Recurring Derivative Fair Value Measurements Impact of derivative activity: Pre-Tax Fair Value Gains (Losses) Recognized During the Period in: (Millions of Dollars) Regulatory (Assets) and Liabilities Year Ended Dec. 31, 2022 Other derivative instruments Electric commodity $ (3) Total $ (3) Year Ended Dec. 31, 2021 Other derivative instruments Electric commodity $ 28 Total $ 28 Year Ended Dec. 31, 2020 Other derivative instruments Electric commodity $ (7) Total $ (7) Pre-Tax (Gains) Losses (Millions of Dollars) Regulatory Year Ended Dec. 31, 2022 Other derivative instruments Electric commodity 2 (a) Total $ 2 Year Ended Dec. 31, 2021 Other derivative instruments Electric commodity (20) (a) Total $ (20) (a) 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. An immaterial amount of settlements were recorded in 2020. SPS had no derivative instruments designated as fair value hedges during the years ended Dec. 31, 2022, 2021 and 2020. Derivative assets and liabilities measured at fair value on a recurring basis were as follows: Dec. 31, 2022 Dec. 31, 2021 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Electric commodity $ — $ — $ 119 $ 119 $ — $ 119 $ — $ — $ 27 $ 27 $ — $ 27 Total current derivative assets $ — $ — $ 119 $ 119 $ — 119 $ — $ — $ 27 $ 27 $ — 27 PPAs (b) 3 3 Current derivative instruments $ 122 $ 30 Noncurrent derivative assets PPAs (b) $ 3 $ 6 Noncurrent derivative instruments $ 3 $ 6 Current derivative liabilities Other derivative instruments: PPAs (b) $ 4 $ 4 Current derivative instruments $ 4 $ 4 Noncurrent derivative liabilities PPAs (b) $ 2 $ 6 Noncurrent derivative instruments $ 2 $ 6 (a) SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At Dec. 31, 2022 and 2021, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) SPS currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities. Changes in Level 3 commodity derivatives: Year Ended Dec. 31 (Millions of Dollars) 2022 2021 2020 Balance at Jan. 1 $ 27 $ 7 $ 12 Purchases (a) 248 10 23 Settlements (a) (168) (79) (23) Net transactions recorded during the period: Net gains (losses) recognized as regulatory assets and liabilities (a) 12 89 (5) Balance at Dec. 31 $ 119 $ 27 $ 7 (a) Relates primarily to FTR instruments administered by SPP. Fair Value of Long-Term Debt As of Dec. 31, other financial instruments for which the carrying amount did not equal fair value: 2022 2021 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 3,211 $ 2,674 $ 3,013 $ 3,454 |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | 9. Benefit Plans and Other Postretirement Benefits Pension and Postretirement Health Care Benefits Xcel Energy, which includes SPS, has several noncontributory, qualified, defined benefit pension plans that cover almost all employees. All newly hired or rehired employees participate under the Cash Balance formula, which is based on pay credits using a percentage of annual eligible pay and annual interest credits. The average annual interest crediting rates for these plans was 4.69, 2.35 and 2.37 percent in 2022, 2021, and 2020, respectively. Some employees may participate under legacy formulas such as the traditional final average pay or pension equity. Xcel Energy’s policy is to fully fund into an external trust the actuarially determined pension costs subject to the limitations of applicable employee benefit and tax laws. In addition to the qualified pension plans, Xcel Energy maintains a SERP and a nonqualified pension plan. The SERP is maintained for certain executives who participated in the plan in 2008, when the SERP was closed to new participants. The nonqualified pension plan provides benefits for compensation that is in excess of the limits applicable to the qualified pension plans, with distributions funded by Xcel Energy’s consolidated operating cash flows. Obligations of the SERP and nonqualified plan as of Dec. 31, 2022 and 2021 were $11 million and $43 million, respectively, of which $1 million and $2 million was attributable to SPS in 2022 and 2021, respectively. In 2022 and 2021, Xcel Energy recognized net benefit cost for the SERP and nonqualified plans of $17 million and $4 million, respectively, of which immaterial amounts were attributable to SPS. Investment-return assumption considers the expected long-term performance for each of the asset classes in its pension and postretirement health care portfolio. Xcel Energy considers the historical returns achieved by its asset portfolios over long time periods, as well as long-term projected return levels by investment experts. Xcel Energy and SPS continually review pension assumptions. Pension cost determination assumes a forecasted mix of investment types over the long-term. • Investment returns in 2022 were below the assumed level of 6.39%. • Investment returns in 2021 were above the assumed level of 6.39%. • Investment returns in 2020 were above the assumed level of 6.78%. • In 2023, SPS’s expected investment-return assumption is 6.96%. Pension plan and postretirement benefit assets are invested in a portfolio according to Xcel Energy’s return, liquidity and diversification objectives to provide a source of funding for plan obligations and minimize contributions to the plan, within appropriate levels of risk. The principal mechanism for achieving these objectives is the asset allocation given the long-term risk, return, correlation and liquidity characteristics of each particular asset class. There were no significant concentrations of risk in any industry, index, or entity. Market volatility can impact even well-diversified portfolios and significantly affect the return levels achieved by the assets in any year. State agencies also have issued guidelines to the funding of postretirement benefit costs. SPS is required to fund postretirement benefit costs for Texas and New Mexico amounts collected in rates. These assets are invested in a manner consistent with the investment strategy for the pension plan. Xcel Energy’s ongoing investment strategy is based on plan-specific investment recommendations that seek to minimize potential investment and interest rate risk as a plan’s funded status increases over time. The investment recommendations consider many factors and generally result in a greater percentage of long-duration fixed income securities being allocated to specific plans having relatively higher funded status ratios and a greater percentage of growth assets being allocated to plans having relatively lower funded status ratios. Plan Assets For each of the fair value hierarchy levels, SPS’ pension plan assets measured at fair value: Dec. 31, 2022 (a) Dec. 31, 2021 (a) (Millions of Dollars) Level 1 Level 2 Level 3 Measured at NAV Total Level 1 Level 2 Level 3 Measured at NAV Total Cash equivalents $ 21 $ — $ — $ — $ 21 $ 20 $ — $ — $ — $ 20 Commingled funds 144 — — 129 273 202 — — 169 371 Debt securities — 115 — — 115 — 148 1 — 149 Equity securities 7 — — — 7 10 — — — 10 Other — 1 — — 1 — 2 — 5 7 Total $ 172 $ 116 $ — $ 129 $ 417 $ 232 $ 150 $ 1 $ 174 $ 557 (a) See Note 8 for further information on fair value measurement inputs and methods. For each of the fair value hierarchy levels, SPS’ proportionate allocation of the total postretirement benefit plan assets that were measured at fair value: Dec. 31, 2022 (a) Dec. 31, 2021 (a) (Millions of Dollars) Level 1 Level 2 Level 3 Measured at NAV Total Level 1 Level 2 Level 3 Measured at NAV Total Cash equivalents $ 3 $ — $ — $ — $ 3 $ 3 $ — $ — $ — $ 3 Insurance contracts — 4 — — 4 — 5 — — 5 Commingled funds 5 — — 6 11 6 — — 7 13 Debt securities — 18 — — 18 — 22 — — 22 Total $ 8 $ 22 $ — $ 6 $ 36 $ 9 $ 27 $ — $ 7 $ 43 (a) See Note 8 for further information on fair value measurement inputs and methods. No assets were transferred in or out of Level 3 for 2022 or 2021. Funded Status — Benefit obligations for both pension and postretirement plans decreased from Dec. 31, 2021 to Dec. 31, 2022, due primarily to benefit payments and increases in discount rates used in actuarial valuations. Comparisons of the actuarially computed benefit obligation, changes in plan assets and funded status of the pension and postretirement health care plans for SPS are as follows: Pension Benefits Postretirement Benefits (Millions of Dollars) 2022 2021 2022 2021 Change in Benefit Obligation: Obligation at Jan. 1 $ 545 $ 562 $ 34 $ 38 Service cost 10 11 1 1 Interest cost 16 15 1 1 Actuarial gain (123) (13) (8) (3) Plan participants’ contributions — — 1 — Benefit payments (34) (30) (3) (3) Obligation at Dec. 31 $ 414 $ 545 $ 26 $ 34 Change in Fair Value of Plan Assets: Fair value of plan assets at Jan. 1 $ 557 $ 527 $ 43 $ 44 Actual return on plan assets (106) 46 (5) 1 Employer contributions — 14 — — Plan participants’ contributions — — 1 1 Benefit payments (34) (30) (3) (3) Fair value of plan assets at Dec. 31 $ 417 $ 557 $ 36 $ 43 Funded status of plans at Dec. 31 $ 3 $ 12 $ 10 $ 9 Amounts recognized in the Balance Sheet at Dec. 31: Noncurrent assets 7 12 10 9 Noncurrent liabilities (4) — — — Net amounts recognized $ 3 $ 12 $ 10 $ 9 Pension Benefits Postretirement Benefits Significant Assumptions Used to Measure Benefit Obligations: 2022 2021 2022 2021 Discount rate for year-end valuation 5.80 % 3.08 % 5.80 % 3.09 % Expected average long-term increase in compensation level 4.25 % 3.75 % N/A N/A Mortality table Pri-2012 Pri-2012 Pri-2012 Pri-2012 Health care costs trend rate — initial: Pre-65 N/A N/A 6.50 % 5.30 % Health care costs trend rate — initial: Post-65 N/A N/A 5.50 % 4.90 % Ultimate trend assumption — initial: Pre-65 N/A N/A 4.50 % 4.50 % Ultimate trend assumption — initial: Post-65 N/A N/A 4.50 % 4.50 % Years until ultimate trend is reached N/A N/A 7 4 Accumulated benefit obligation for the pension plan was $386 million and $506 million as of Dec. 31, 2022 and 2021, respectively. Net Periodic Benefit Cost (Credit) — Net periodic benefit cost (credit), other than the service cost component, is included in other income (expense) in the statements of income. Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income and regulatory assets and liabilities: Pension Benefits Postretirement Benefits (Millions of Dollars) 2022 2021 2020 2022 2021 2020 Service cost $ 10 $ 11 $ 10 $ 1 $ 1 $ 1 Interest cost 16 15 18 1 1 1 Expected return on plan assets (31) (30) (29) (2) (2) (2) Amortization of net loss (gain) 10 14 12 (1) (1) — Settlement charge (a) 2 — — — — — Net periodic pension cost 7 10 11 (1) (1) — Effects of regulation (1) — 2 — — — Net benefit cost recognized for financial reporting $ 6 $ 10 $ 13 $ (1) $ (1) $ — Significant Assumptions Used to Measure Costs: Discount rate 3.08 % 2.71 % 3.49 % 3.09 % 2.65 % 3.47 % Expected average long-term increase in compensation level 3.75 3.75 3.75 — — — Expected average long-term rate of return on assets 6.39 6.39 6.78 4.10 4.10 4.50 (a) A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2022, as a result of lump-sum distributions during each plan year, SPS recorded a total pension settlement charge of $2 million. An immaterial amount was recorded in the income statement in 2022. There were no settlement charges recorded to the qualified pension plans in 2021 or 2020. Pension Benefits Postretirement Benefits (Millions of Dollars) 2022 2021 2022 2021 Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost: Net loss (gain) $ 145 $ 143 $ (21) $ (19) Prior service credit (1) (1) — (1) Total $ 144 $ 142 $ (21) $ (20) Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates: Current regulatory assets $ 2 $ 11 $ — $ — Noncurrent regulatory assets 142 131 — — Current regulatory liabilities — — (1) (1) Noncurrent regulatory liabilities — — (20) (19) Total $ 144 $ 142 $ (21) $ (20) Measurement date Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Cash Flows — Funding requirements can be impacted by changes to actuarial assumptions, actual asset levels and other calculations prescribed by the requirements of income tax and other pension-related regulations. Required contributions were made in 2020 - 2023 to meet minimum funding requirements. Total voluntary and required pension funding contributions across all four of Xcel Energy’s pension plans were as follows: • $50 million in January 2023, of which none was attributable to SPS. • $50 million in 2022, of which none was attributable to SPS. • $131 million in 2021, of which $15 million was attributable to SPS. • $150 million in 2020, of which $14 million was attributable to SPS. For future years, Xcel Energy and SPS anticipate contributions will be made as necessary. The postretirement health care plans have no funding requirements other than fulfilling benefit payment obligations when claims are presented and approved. Additional cash funding requirements are prescribed by certain state and federal rate regulatory authorities. Xcel Energy’s voluntary postretirement funding contributions, of which the amounts attributable to SPS were immaterial, were as follows: • $12 million expected in 2023. • $13 million during 2022. • $15 million during 2021. • $11 million during 2020. Target asset allocations: Pension Benefits Postretirement Benefits 2022 2021 2022 2021 Domestic and international equity securities 33 % 33 % 16 % 15 % Long-duration fixed income securities 38 37 — — Short-to-intermediate fixed income securities 9 11 71 71 Alternative investments 18 17 12 8 Cash 2 2 1 6 Total 100 % 100 % 100 % 100 % The asset allocations above reflect target allocations approved in the calendar year to take effect in the subsequent year Plan Amendments — There were no significant plan amendments made in 2022 or 2020 which affected the postretirement benefit obligation. In 2021, Xcel Energy amended the Xcel Energy Pension Plan and Xcel Energy Inc. Nonbargaining Pension Plan (South) to reduce supplemental benefits for non-bargaining participants as well as to allow the transfer of a portion of non-qualified pension obligations into the qualified plans. Projected Benefit Payments SPS’ projected benefit payments: (Millions of Dollars) Projected Net Projected Postretirement Health Care Benefit Payments (a) 2023 $ 33 $ 2 2024 31 2 2025 32 2 2026 31 2 2027 32 2 2028-2032 157 11 (a) Amount is reported net of expected Medicare Part D subsidies, which are immaterial. Defined Contribution Plans Xcel Energy, which includes SPS, maintains 401(k) and other defined contribution plans that cover most employees. The expense to these plans for SPS was approximately $3 million in 2022, 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions Xcel Energy Services Inc. provides management, administrative and other services for the subsidiaries of Xcel Energy Inc., including SPS. The services are provided and billed to each subsidiary in accordance with service agreements executed by each subsidiary. SPS uses services provided by Xcel Energy Services Inc. whenever possible. Costs are charged directly to the subsidiary and are allocated if they cannot be directly assigned. Xcel Energy, Inc., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS have established a utility money pool arrangement. See Note 5 for further information. Significant affiliate transactions among the companies and related parties for the years ended Dec. 31: (Millions of Dollars) 2022 2021 2020 Operating expenses: Other operating expenses — paid to Xcel Energy Services Inc. $ 238 $ 209 $ 200 Interest expense 1 — — Accounts receivable and payable with affiliates at Dec. 31 were: 2022 2021 (Millions of Dollars) Accounts Receivable Accounts Payable Accounts Receivable Accounts Payable NSP-Minnesota $ 3 $ — $ 2 $ — PSCo 11 — 7 — Other subsidiaries of Xcel Energy Inc. 1 23 — 16 $ 15 $ 23 $ 9 $ 16 |
Schedule II, Valuation and Qual
Schedule II, Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II, Valuation and Qualifying Accounts | Southwestern Public Service Co. Valuation and Qualifying Accounts Years Ended Dec. 31 Allowance for bad debts (Millions of Dollars) 2022 2021 2020 Balance at Jan. 1 $ 12 $ 8 $ 5 Additions charged to costs and expenses 9 6 6 Additions charged to other accounts (a) 1 3 2 Deductions from reserves (b) (9) (5) (5) Balance at Dec. 31 $ 13 $ 12 $ 8 (a) Recovery of amounts previously written-off. (b) Deductions related primarily to bad debt write-offs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business and System of Accounts | General — SPS is engaged in the regulated generation, purchase, transmission, distribution and sale of electricity. SPS’ financial statements are presented in accordance with GAAP. All of SPS’ underlying accounting records also conform to the FERC uniform system of accounts or to systems required by various state regulatory commissions. Certain amounts in the financial statements or notes have been reclassified for comparative purposes; however, such reclassifications did not affect net income, total assets, liabilities, equity or cash flows. |
Subsequent Events | SPS has evaluated events occurring after Dec. 31, 2022 up to the date of issuance of these financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. |
Use of Estimates | Use of Estimates — SPS uses estimates based on the best information available in recording transactions and balances resulting from business operations. Estimates are used for items such as plant depreciable lives or potential disallowances, AROs, certain regulatory assets and liabilities, tax provisions, uncollectible amounts, environmental costs, unbilled revenues, jurisdictional fuel and energy cost allocations and actuarially determined benefit costs. Recorded estimates are revised when better information becomes available or actual amounts can be determined. Revisions can affect operating results. |
Regulatory Accounting | Regulatory Accounting — SPS accounts for income and expense items in accordance with accounting guidance for regulated operations. Under this guidance: • Certain costs, which would otherwise be charged to expense or other comprehensive income, are deferred as regulatory assets based on the expected ability to recover the costs in future rates. • Certain credits, which would otherwise be reflected as income or other comprehensive income, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates or because the amounts were collected in rates prior to the costs being incurred. Estimates and assumptions for recovery of deferred costs and refund of deferred credits are based on specific ratemaking decisions, precedent or other information available. Regulatory assets and liabilities are amortized consistent with the treatment in the rate setting process. If changes in the regulatory environment occur, SPS may no longer be eligible to apply this accounting treatment and may be required to eliminate regulatory assets and liabilities. Such changes could have a material effect on SPS’ results of operations, financial condition and cash flows. See Note 4 for further information. |
Income Taxes | Income Taxes — SPS accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Income taxes are deferred for all temporary differences between pretax financial and taxable income and between the book and tax bases of assets and liabilities. SPS uses rates that are scheduled to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The effects of tax rate changes that are attributable to the utility subsidiaries are generally subject to a normalization method of accounting. Therefore, the revaluation of most of the utility subsidiaries’ net deferred taxes upon a tax rate reduction results in the establishment of a net regulatory liability, refundable to utility customers over the remaining life of the related assets. SPS anticipates that a tax rate increase would predominantly result in the establishment of a regulatory asset, subject to an evaluation of whether future recovery is expected. Reversal of certain temporary differences are accounted for as current income tax expense due to the effects of past regulatory practices when deferred taxes were not required to be recorded due to the use of flow through accounting for ratemaking purposes. Tax credits are recorded when earned unless there is a requirement to defer the benefit and amortize over the book depreciable lives of the related property. The requirement to defer and amortize these credits specifically applies to certain federal ITCs, as determined by tax regulations and SPS tax elections. For tax credits otherwise eligible to be recognized when earned, SPS considers the impact of rate regulation to determine if these credits and related adjustments should be deferred as regulatory assets or liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Utility rate regulation has resulted in the recognition of regulatory assets and liabilities related to income taxes. SPS measures and discloses uncertain tax positions that it has taken or expects to take in its income tax returns. A tax position is recognized in the financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. Recognition of changes in uncertain tax positions are reflected as a component of income tax expense. Interest and penalties related to income taxes are reported within other (expense) income or interest charges in the statements of income. Xcel Energy Inc. and its subsidiaries, including SPS file consolidated federal income tax returns as well as consolidated or separate state income tax returns. Federal income taxes paid by Xcel Energy Inc. are allocated to its subsidiaries based on separate company computations. A similar allocation is made for state income taxes paid by Xcel Energy Inc. in connection with consolidated state filings. Xcel Energy Inc. also allocates its own income tax benefits to its direct subsidiaries. See Note 7 for further information. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation in Regulated Operations — Property, plant and equipment is stated at original cost. The cost of plant includes direct labor and materials, contracted work, overhead costs and AFUDC. The cost of plant retired is charged to accumulated depreciation and amortization. Amounts recovered in rates for future removal costs are recorded as regulatory liabilities. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance costs are charged to expense as incurred. Maintenance and replacement of items determined to be less than a unit of property are charged to operating expenses as incurred. Property, plant and equipment is tested for impairment when it is determined that the carrying value of the assets may not be recoverable. A loss is recognized in the current period if it becomes probable that part of a cost of a plant under construction or recently completed plant will be disallowed for recovery from customers and a reasonable estimate of the disallowance can be made. For investments in property, plant and equipment that are abandoned and not expected to go into service, incurred costs and related deferred tax amounts are compared to the discounted estimated future rate recovery, and a loss is recognized, if necessary. Depreciation expense is recorded using the straight-line method over the plant’s commission approved useful life. Actuarial life studies are performed and submitted to the state and federal commissions for review. Upon acceptance by the various commissions, the resulting lives and net salvage rates are used to calculate depreciation. Plant removal costs are typically recognized at the amounts recovered in rates as authorized by the applicable regulator. Accumulated removal costs are reflected in the balance sheet as a regulatory liability. Depreciation expense, expressed as a percentage of average depreciable property, was 3.4% i n 2022, 3.3% in 2021 and 3.1% in 2020. See Note 3 for further information. |
Asset Retirement Obligations | AROs — SPS records AROs as a liability for the fair value of an ARO to be recognized in the period incurred (if it can be reasonably estimated), with the offsetting/associated costs capitalized as a long-lived asset. The liability is generally increased over time by applying the effective interest method of accretion and the capitalized costs are typically depreciated over the useful life of the long-lived asset. Changes resulting from revisions to timing or amounts of expected asset retirement cash flows are recognized as an increase or a decrease in the ARO. See Note 10 for further information. |
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits — SPS maintains pension and postretirement benefit plans for eligible employees. Recognizing the cost of providing benefits and measuring the projected benefit obligation of these plans requires management to make various assumptions and estimates. Certain unrecognized actuarial gains and losses and unrecognized prior service costs or credits are deferred as regulatory assets and liabilities, rather than recorded as other comprehensive income, based on regulatory recovery mechanisms. See Note 9 for further information. |
Environmental Costs | Environmental Costs — Environmental costs are recorded when it is probable SPS is liable for remediation costs and the amount can be reasonably estimated. Costs are deferred as a regulatory asset if it is probable the costs will be recovered from customers in future rates. Otherwise, the costs are expensed. For certain environmental costs related to facilities currently in use, such as for emission-control equipment, the cost is capitalized and depreciated over the life of the plant. Estimated remediation costs are regularly adjusted as estimates are revised and remediation is performed. If other participating potentially responsible parties exist and acknowledge their potential involvement with a site, costs are estimated and recorded only for SPS’ expected share of the cost. |
Revenue From Contracts With Customers | Revenue from Contracts with Customers — Performance obligations related to the sale of energy are satisfied as energy is delivered to customers. SPS recognizes revenue that corresponds to the price of the energy delivered to the customer. The measurement of energy sales to customers is generally based on the reading of their meters, which occurs systematically throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is recognized. A separate financing component of collections from customers is not recognized as contract terms are short-term in nature. Revenues are net of any excise or sales taxes or fees. SPS participates in SPP. SPS recognizes physical sales to customers (native load and wholesale) on a gross basis in electric revenues and cost of sales. Revenues and charges for short-term physical wholesale sales of excess energy transacted through RTOs are also recorded on a gross basis. Other revenues and charges settled/facilitated through an RTO are recorded on a net basis in cost of sales. See Note 6 for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents — SPS considers investments in instruments with a remaining maturity of 3 months or less at the time of purchase to be cash equivalents. |
Accounts Receivable and Allowance for Bad Debts | Accounts Receivable and Allowance for Bad Debts — Accounts receivable are stated at the actual billed amount net of an allowance for bad debts. SPS establishes an allowance for uncollectible receivables based on a policy that reflects its expected exposure to the credit risk of customers. |
Inventory | Inventory — Inventory is recorded at the lower of average cost or net realizable value and consisted of the following: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Inventories Materials and supplies $ 42 $ 29 Fuel 19 22 Total inventories $ 61 $ 51 |
Fair Value Measurements | Fair Value Measurements — SPS presents cash equivalents, interest rate derivatives and commodity derivatives at estimated fair values in its financial statements. For interest rate derivatives, quoted prices based primarily on observable market interest rate curves are used to estimate fair value. For commodity derivatives, the most observable inputs available are generally used to determine the fair value of each contract. In the absence of a quoted price, quoted prices for similar contracts or internally prepared valuation models may be used to determine fair value. For the pension and postretirement plan assets and nuclear decommissioning fund, published trading data and pricing models, generally using the most observable inputs available, are utilized to determine fair value for each security. See Notes 8 and 9 for further information. |
Derivative Instruments | Derivative Instruments — SPS uses derivative instruments in connection with its commodity trading activities, and to manage risk associated with changes in interest rates, and utility commodity prices, including forward contracts, futures, swaps and options. Any derivative instruments not qualifying for the normal purchases and normal sales exception are recorded on the balance sheets at fair value as derivative instruments. Classification of changes in fair value for those derivative instruments is dependent on the designation of a qualifying hedging relationship. Changes in fair value of derivative instruments not designated in a qualifying hedging relationship are reflected in current earnings or as a regulatory asset or liability. Classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Gains or losses on commodity trading transactions are recorded as a component of electric operating revenues. Normal Purchases and Normal Sales — SPS enters into contracts for purchases and sales of commodities for use in its operations. At inception, contracts are evaluated to determine whether they contain a derivative, and if so, whether they may be exempted from derivative accounting if designated as normal purchases or normal sales. See Note 8 for further information. |
AFUDC | AFUDC — AFUDC represents the cost of capital used to finance utility construction activity and is computed by applying a composite financing rate to qualified CWIP. The amount of AFUDC capitalized as a utility construction cost is credited to other nonoperating income (for equity capital) and interest charges (for debt capital). AFUDC amounts capitalized are included in SPS’ rate base. |
Alternative Revenue Programs | Alternative Revenue — Certain rate rider mechanisms (including DSM programs) qualify as alternative revenue programs. These mechanisms arise from instances in which the regulator authorizes a future surcharge in response to past activities or completed events. When certain criteria are met, including expected collection within 24 months, revenue is recognized equal to the revenue requirement, which may include incentives and return on rate base items. Billing amounts are revised periodically for differences between total amount collected and revenue earned, which may increase or decrease the level of revenue collected from customers. Alternative revenues arising from these programs are presented on a gross basis and disclosed separately from revenue from contracts with customers. See Note 6 for further information. Conservation Programs — SPS has implemented programs in its jurisdictions to assist customers in conserving energy and reducing peak demand on the electric system. These programs include commercial motor, air conditioner and lighting upgrades, as well as residential rebates for participation in air conditioner interruption and home weatherization. The costs incurred for some DSM programs are deferred as permitted by the applicable regulatory jurisdiction. For those programs, costs are deferred if it is probable future revenue will be provided to permit recovery of the incurred cost. Revenues recognized for incentive programs designed for recovery of lost margins and/or conservation performance incentives are limited to amounts expected to be collected within 24 months from the annual period in which they are earned. SPS recovers approved conservation program costs in base rate revenue or through a rider. |
Emission Allowances | Emissions Allowances — Emissions allowances are recorded at cost, including broker commission fees. The inventory accounting model is utilized for all emission allowances and sales of these allowances are included in electric revenues. |
Renewable Energy Credits | RECs — Cost of RECs that are utilized for compliance is recorded as electric fuel and purchased power expense. SPS reduces recoverable fuel and purchased power costs for the cost of RECs received. An inventory accounting model is used to account for RECs, however these assets are classified as regulatory assets if amounts are recoverable in future rates. |
Segment Reporting, Policy [Policy Text Block] | Segment Information — SPS has only one reportable segment. SPS is a wholly owned subsidiary of Xcel Energy Inc. and operates in the regulated electric utility industry providing wholesale and retail electric service in the states of Texas and New Mexico. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosure - Inventory [Abstract] | |
Schedule of Utility Inventory [Table Text Block] | Inventory — Inventory is recorded at the lower of average cost or net realizable value and consisted of the following: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Inventories Materials and supplies $ 42 $ 29 Fuel 19 22 Total inventories $ 61 $ 51 |
Property Plant and Equipment _2
Property Plant and Equipment Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Public Utility Property, Plant, and Equipment | Major classes of property, plant and equipment (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Property, plant and equipment, net Electric plant $ 10,182 $ 9,639 Plant to be retired (a) 266 299 CWIP 167 171 Total property, plant and equipment 10,615 10,109 Less accumulated depreciation (2,486) (2,271) Property, plant and equipment, net $ 8,129 $ 7,838 (a) Amounts include Tolk and coal generation assets at Harrington pending facility gas conversion and are presented net of accumulated depreciation. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets | Components of regulatory assets: (Millions of Dollars) See Note(s) Remaining Amortization Period Dec. 31, 2022 Dec. 31, 2021 (a) Regulatory Assets Current Noncurrent Current Noncurrent Pension and retiree medical obligations 9 Various $ 2 $ 146 $ 11 $ 135 Net AROs (b) 1, 10 Various — 48 — 40 Excess deferred taxes — TCJA 7 Various 1 48 2 50 Recoverable deferred taxes on AFUDC Plant lives — 40 — 41 Deferred natural gas and electric energy/fuel costs One three 136 34 146 4 Losses on reacquired debt Term of related debt 1 19 1 19 Texas revenue surcharges One 69 — 20 64 Other Various 8 24 13 27 Total regulatory assets $ 217 $ 359 $ 193 $ 380 (a) Prior period amounts have been restated to conform with current year presentation. (b) Includes amounts recorded for future recovery of AROs. |
Regulatory Liabilities | Components of regulatory liabilities: (Millions of Dollars) See Note(s) Remaining Amortization Period Dec. 31, 2022 Dec. 31, 2021 (a) Regulatory Liabilities Current Noncurrent Current Noncurrent Deferred income tax adjustments and TCJA refunds (b) 7 Various $ — $ 469 $ 15 $ 486 Plant removal costs 1, 10 Various — 198 — 190 Effects of regulation on employee benefit costs Various — 20 — 19 Renewable resources and environmental initiatives Various — 14 — 7 Formula rates One two 10 8 6 4 Contract valuation adjustments (c) 1, 8 One two 119 1 27 1 Other Various 19 5 6 2 Total regulatory liabilities $ 148 $ 715 $ 54 $ 709 (a) Prior period amounts have been restated to conform with current year presentation. (b) Includes the revaluation of recoverable/regulated plant accumulated deferred income taxes and revaluation impact of non-plant accumulated deferred income taxes due to the TCJA. (c) Includes the fair value of FTR instruments utilized/intended to offset the impacts of transmission system congestion. |
Borrowings and Other Financin_2
Borrowings and Other Financing Instruments (Tables) | 12 Months Ended | |
Dec. 31, 2022 | ||
Debt Disclosure [Abstract] | ||
Money Pool [Table Text Block] | Money pool borrowings: (Millions of Dollars, Except Interest Rates) Three Months Ended Dec. 31, 2022 Year Ended Dec. 31 2022 2021 2020 Borrowing limit $ 100 $ 100 $ 100 $ 100 Amount outstanding at period end — — 91 — Average amount outstanding 7 35 51 43 Maximum amount outstanding 42 100 100 100 Weighted average interest rate, computed on a daily basis 3.17 % 0.44 % 0.05 % 0.54 % Weighted average interest rate at end of period N/A N/A 0.05 N/A | |
Short-Term Borrowings | Commercial paper outstanding: (Millions of Dollars, Except Interest Rates) Three Months Ended Dec. 31, 2022 Year Ended Dec. 31 2022 2021 2020 Borrowing limit $ 500 $ 500 $ 500 $ 500 Amount outstanding at period end 34 34 137 250 Average amount outstanding 20 100 63 44 Maximum amount outstanding 65 324 342 250 Weighted average interest rate, computed on a daily basis 4.08 % 0.79 % 0.21 % 1.11 % Weighted average interest rate at end of period 4.55 4.55 0.26 0.29 | |
Schedule Of Debt To Total Capitalization Ratio [Table Text Block] | 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) 2022 2021 46% 47% $50 2 (a) The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%. | [1],[2] |
Credit Facilities | SPS had the following committed credit facility available as of Dec. 31, 2022 (in millions) of dollars: Credit Facility (a) Drawn (b) Available $ 500 $ 36 $ 464 (a) This credit facility matures in September 2027. (b) Includes letters of credit and outstanding commercial paper. | [3],[4] |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt obligations for SPS as of Dec. 31 (in millions of dollars): Financing Instrument Interest Rate Maturity Date 2022 2021 First mortgage bonds 3.30 % June 15, 2024 $ 150 $ 150 First mortgage bonds 3.30 June 15, 2024 200 200 Unsecured senior notes 6.00 Oct. 1, 2033 100 100 Unsecured senior notes 6.00 Oct. 1, 2036 250 250 First mortgage bonds 4.50 Aug. 15, 2041 200 200 First mortgage bonds 4.50 Aug. 15, 2041 100 100 First mortgage bonds 4.50 Aug. 15, 2041 100 100 First mortgage bonds 3.40 Aug. 15, 2046 300 300 First mortgage bonds 3.70 Aug. 15, 2047 450 450 First mortgage bonds 4.40 Nov. 15, 2048 300 300 First mortgage bonds 3.75 June 15, 2049 300 300 First mortgage bonds 3.15 May 1, 2050 350 350 First mortgage bonds (a) 3.15 May 1, 2050 250 250 First mortgage bonds (b) 5.15 June 1, 2052 200 — Unamortized discount (10) (9) Unamortized debt issuance cost (29) (28) Total long-term debt $ 3,211 $ 3,013 (a) 2020 financing re-opened in 2021. (b) 2022 financing. | [5] |
Schedule of Maturities of Long-term Debt [Table Text Block] | Maturities of long-term debt: (Millions of Dollars) 2023 $ — 2024 350 2025 — 2026 — 2027 — | |
Schedule of Stock by Class [Table Text Block] | SPS has the following preferred stock: Preferred Stock Authorized (Shares) Par Value of Preferred Stock Preferred Stock Outstanding (Shares) 2022 and 2021 10,000,000 1.00 — | |
Dividend Payment Restrictions [Text Block] | Requirements and actuals as of Dec. 31, 2022: Equity to Total Capitalization Ratio Equity to Total Capitalization Ratio Actual (a) Low High 2022 45.0 % 55.0 % 54.3 % (a) Excludes short-term debt. Unrestricted Retained Earnings Total Capitalization Limit on Total Capitalization (a) $ 540 million $ 7,094 million N/A | |
[1]All extension requests are subject to majority bank group approval.[2]The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%.[3]Includes letters of credit and outstanding commercial paper.[4]This credit facility matures in September 2027.[5]2022 financing |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | SPS’ operating revenues consisted of the following: Year Ended Dec. 31 (Millions of Dollars) 2022 2021 2020 Major revenue types Revenue from contracts with customers: Residential $ 445 $ 375 $ 359 C&I 1,102 842 739 Other 51 38 39 Total retail 1,598 1,255 1,137 Wholesale 407 873 345 Transmission 296 287 279 Other 10 6 4 Total revenue from contracts with customers 2,311 2,421 1,765 Alternative revenue and other 115 44 105 Total revenues $ 2,426 $ 2,465 $ 1,870 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Statute of Limitations Applicable to Open Tax Years | Tax Year(s) Expiration 2014 - 2016 March 2024 2019 October 2023 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized tax benefits — permanent vs temporary: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 Unrecognized tax benefit — Permanent tax positions $ 5 $ 4 Unrecognized tax benefit — Temporary tax positions 4 4 Total unrecognized tax benefit $ 9 $ 8 Changes in unrecognized tax benefits: (Millions of Dollars) 2022 2021 2020 Balance at Jan. 1 $ 8 $ 7 $ 5 Additions based on tax positions related to the current year 1 1 1 Additions for tax positions of prior years — — 5 Reductions for tax positions of prior years — — (4) Balance at Dec. 31 $ 9 $ 8 $ 7 |
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) Dec. 31, 2022 Dec. 31, 2021 NOL and tax credit carryforwards $ (8) $ (7) |
Interest Payable related to Unrecognized Tax Benefits | Interest payable related to unrecognized tax benefits: (Millions of Dollars) 2022 2021 2020 (Payable) receivable for interest related to unrecognized tax benefits at Jan. 1 $ (1) $ (1) $ 1 Interest expense related to unrecognized tax benefits 1 — (2) (Payable) receivable for interest related to unrecognized tax benefits at Dec. 31 $ — $ (1) $ (1) |
NOL and Tax Credit Carryforwards | NOL amounts represent the tax loss that is carried forward and tax credits represent the deferred tax asset. NOL and tax credit carryforwards as of Dec. 31 were as follows: (Millions of Dollars) 2022 2021 Federal NOL carryforward $ 8 $ 336 Federal tax credit carryforwards 294 187 State NOL carryforwards 4 111 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. Effective income tax rate for years ended Dec. 31: 2022 2021 (c) 2020 (c) Federal statutory rate 21.0 % 21.0 % 21.0 % State income tax on pretax income, net of federal tax effect 2.3 2.5 2.3 Increases (decreases) in tax from: Wind PTCs (a) (35.9) (39.7) (18.3) Plant regulatory differences (b) (3.8) (4.8) (6.4) Amortization of excess nonplant deferred taxes (0.9) (1.1) (0.8) Other, net (0.6) (0.7) (1.3) Effective income tax rate (17.9) % (22.8) % (3.5) % (a) Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income. (b) Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions. (c) Prior period amounts have been restated to conform to current year presentation. |
Schedule of Components of Income Tax Expense (Benefit) | Components of income tax expense for years ended Dec. 31: (Millions of Dollars) 2022 2021 2020 Current federal tax benefit $ (65) $ (11) $ (31) Current state tax benefit (5) (1) (1) Deferred federal tax expense (benefit) 3 (57) 13 Deferred state tax expense 13 9 8 Deferred change in unrecognized tax expense 1 1 1 Total income tax benefit $ (53) $ (59) $ (10) Components of deferred income tax expense as of Dec. 31: (Millions of Dollars) 2022 2021 2020 Deferred tax expense (benefit) excluding items below $ 37 $ (23) $ 53 Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities (20) (24) (31) Deferred tax expense (benefit) $ 17 $ (47) $ 22 |
Schedule of Deferred Tax Assets and Liabilities | Components of the net deferred tax liability as of Dec. 31: (Millions of Dollars) 2022 2021 (a) Deferred tax liabilities: Differences between book and tax bases of property $ 1,015 $ 942 Operating lease assets 97 103 Regulatory assets 61 65 Deferred fuel costs 35 34 Pension expense 33 34 Other 1 1 Total deferred tax liabilities $ 1,242 $ 1,179 Deferred tax assets: Operating lease liabilities $ 97 $ 103 Regulatory liabilities 98 98 Tax credit carryforward 294 187 NOL carryforward 2 76 Other employee benefits 6 7 Other 6 6 Total deferred tax assets 503 477 Net deferred tax liability $ 739 $ 702 (a) Prior periods have been reclassified to conform to current year presentation. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity FTRs | (Amounts in Millions) (a) Dec. 31, 2022 Dec. 31, 2021 MWh of electricity 8 8 (a) Not reflective of net positions in the underlying commodities. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Derivative assets and liabilities measured at fair value on a recurring basis were as follows: Dec. 31, 2022 Dec. 31, 2021 Fair Value Fair Value Total Netting (a) Total Fair Value Fair Value Total Netting (a) Total (Millions of Dollars) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Current derivative assets Other derivative instruments: Electric commodity $ — $ — $ 119 $ 119 $ — $ 119 $ — $ — $ 27 $ 27 $ — $ 27 Total current derivative assets $ — $ — $ 119 $ 119 $ — 119 $ — $ — $ 27 $ 27 $ — 27 PPAs (b) 3 3 Current derivative instruments $ 122 $ 30 Noncurrent derivative assets PPAs (b) $ 3 $ 6 Noncurrent derivative instruments $ 3 $ 6 Current derivative liabilities Other derivative instruments: PPAs (b) $ 4 $ 4 Current derivative instruments $ 4 $ 4 Noncurrent derivative liabilities PPAs (b) $ 2 $ 6 Noncurrent derivative instruments $ 2 $ 6 (a) SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At Dec. 31, 2022 and 2021, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) SPS currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being 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: Year Ended Dec. 31 (Millions of Dollars) 2022 2021 2020 Balance at Jan. 1 $ 27 $ 7 $ 12 Purchases (a) 248 10 23 Settlements (a) (168) (79) (23) Net transactions recorded during the period: Net gains (losses) recognized as regulatory assets and liabilities (a) 12 89 (5) Balance at Dec. 31 $ 119 $ 27 $ 7 (a) Relates primarily to FTR instruments administered by SPP. |
Carrying Amount and Fair Value of Long-term Debt | 2022 2021 (Millions of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 3,211 $ 2,674 $ 3,013 $ 3,454 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Benefit Plans and Other Postretirement Benefits [Abstract] | |
Target Asset Allocations and Plan Assets Measured at Fair Value | For each of the fair value hierarchy levels, SPS’ pension plan assets measured at fair value: Dec. 31, 2022 (a) Dec. 31, 2021 (a) (Millions of Dollars) Level 1 Level 2 Level 3 Measured at NAV Total Level 1 Level 2 Level 3 Measured at NAV Total Cash equivalents $ 21 $ — $ — $ — $ 21 $ 20 $ — $ — $ — $ 20 Commingled funds 144 — — 129 273 202 — — 169 371 Debt securities — 115 — — 115 — 148 1 — 149 Equity securities 7 — — — 7 10 — — — 10 Other — 1 — — 1 — 2 — 5 7 Total $ 172 $ 116 $ — $ 129 $ 417 $ 232 $ 150 $ 1 $ 174 $ 557 (a) See Note 8 for further information on fair value measurement inputs and methods. For each of the fair value hierarchy levels, SPS’ proportionate allocation of the total postretirement benefit plan assets that were measured at fair value: Dec. 31, 2022 (a) Dec. 31, 2021 (a) (Millions of Dollars) Level 1 Level 2 Level 3 Measured at NAV Total Level 1 Level 2 Level 3 Measured at NAV Total Cash equivalents $ 3 $ — $ — $ — $ 3 $ 3 $ — $ — $ — $ 3 Insurance contracts — 4 — — 4 — 5 — — 5 Commingled funds 5 — — 6 11 6 — — 7 13 Debt securities — 18 — — 18 — 22 — — 22 Total $ 8 $ 22 $ — $ 6 $ 36 $ 9 $ 27 $ — $ 7 $ 43 (a) See Note 8 for further information on fair value measurement inputs and methods. Target asset allocations: Pension Benefits Postretirement Benefits 2022 2021 2022 2021 Domestic and international equity securities 33 % 33 % 16 % 15 % Long-duration fixed income securities 38 37 — — Short-to-intermediate fixed income securities 9 11 71 71 Alternative investments 18 17 12 8 Cash 2 2 1 6 Total 100 % 100 % 100 % 100 % |
Funded Status of Plans | Funded Status — Benefit obligations for both pension and postretirement plans decreased from Dec. 31, 2021 to Dec. 31, 2022, due primarily to benefit payments and increases in discount rates used in actuarial valuations. Comparisons of the actuarially computed benefit obligation, changes in plan assets and funded status of the pension and postretirement health care plans for SPS are as follows: Pension Benefits Postretirement Benefits (Millions of Dollars) 2022 2021 2022 2021 Change in Benefit Obligation: Obligation at Jan. 1 $ 545 $ 562 $ 34 $ 38 Service cost 10 11 1 1 Interest cost 16 15 1 1 Actuarial gain (123) (13) (8) (3) Plan participants’ contributions — — 1 — Benefit payments (34) (30) (3) (3) Obligation at Dec. 31 $ 414 $ 545 $ 26 $ 34 Change in Fair Value of Plan Assets: Fair value of plan assets at Jan. 1 $ 557 $ 527 $ 43 $ 44 Actual return on plan assets (106) 46 (5) 1 Employer contributions — 14 — — Plan participants’ contributions — — 1 1 Benefit payments (34) (30) (3) (3) Fair value of plan assets at Dec. 31 $ 417 $ 557 $ 36 $ 43 Funded status of plans at Dec. 31 $ 3 $ 12 $ 10 $ 9 Amounts recognized in the Balance Sheet at Dec. 31: Noncurrent assets 7 12 10 9 Noncurrent liabilities (4) — — — Net amounts recognized $ 3 $ 12 $ 10 $ 9 Pension Benefits Postretirement Benefits Significant Assumptions Used to Measure Benefit Obligations: 2022 2021 2022 2021 Discount rate for year-end valuation 5.80 % 3.08 % 5.80 % 3.09 % Expected average long-term increase in compensation level 4.25 % 3.75 % N/A N/A Mortality table Pri-2012 Pri-2012 Pri-2012 Pri-2012 Health care costs trend rate — initial: Pre-65 N/A N/A 6.50 % 5.30 % Health care costs trend rate — initial: Post-65 N/A N/A 5.50 % 4.90 % Ultimate trend assumption — initial: Pre-65 N/A N/A 4.50 % 4.50 % Ultimate trend assumption — initial: Post-65 N/A N/A 4.50 % 4.50 % Years until ultimate trend is reached N/A N/A 7 4 Accumulated benefit obligation for the pension plan was $386 million and $506 million as of Dec. 31, 2022 and 2021, respectively. Net Periodic Benefit Cost (Credit) — Net periodic benefit cost (credit), other than the service cost component, is included in other income (expense) in the statements of income. Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive income and regulatory assets and liabilities: |
Components of Net Periodic Benefit Costs | Pension Benefits Postretirement Benefits (Millions of Dollars) 2022 2021 2020 2022 2021 2020 Service cost $ 10 $ 11 $ 10 $ 1 $ 1 $ 1 Interest cost 16 15 18 1 1 1 Expected return on plan assets (31) (30) (29) (2) (2) (2) Amortization of net loss (gain) 10 14 12 (1) (1) — Settlement charge (a) 2 — — — — — Net periodic pension cost 7 10 11 (1) (1) — Effects of regulation (1) — 2 — — — Net benefit cost recognized for financial reporting $ 6 $ 10 $ 13 $ (1) $ (1) $ — Significant Assumptions Used to Measure Costs: Discount rate 3.08 % 2.71 % 3.49 % 3.09 % 2.65 % 3.47 % Expected average long-term increase in compensation level 3.75 3.75 3.75 — — — Expected average long-term rate of return on assets 6.39 6.39 6.78 4.10 4.10 4.50 |
Projected Benefit Payments for the Pension and Postretirement Benefit Plans | Projected Benefit Payments SPS’ projected benefit payments: (Millions of Dollars) Projected Net Projected Postretirement Health Care Benefit Payments (a) 2023 $ 33 $ 2 2024 31 2 2025 32 2 2026 31 2 2027 32 2 2028-2032 157 11 (a) Amount is reported net of expected Medicare Part D subsidies, which are immaterial. |
Other Postretirement Benefits Plan [Member] | |
Benefit Plans and Other Postretirement Benefits [Abstract] | |
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost | Pension Benefits Postretirement Benefits (Millions of Dollars) 2022 2021 2022 2021 Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost: Net loss (gain) $ 145 $ 143 $ (21) $ (19) Prior service credit (1) (1) — (1) Total $ 144 $ 142 $ (21) $ (20) Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates: Current regulatory assets $ 2 $ 11 $ — $ — Noncurrent regulatory assets 142 131 — — Current regulatory liabilities — — (1) (1) Noncurrent regulatory liabilities — — (20) (19) Total $ 144 $ 142 $ (21) $ (20) Measurement date Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Asset Retirement Obligations | 2022 (Millions of Dollars) Jan. 1, 2022 Accretion Cash Flow Revisions (a) Dec. 31, 2022 Electric Steam and other production $ 54 $ 3 $ 26 $ 83 Wind 52 2 — 54 Distribution 10 — — 10 Total liability $ 116 $ 5 $ 26 $ 147 (a) In 2022, AROs were revised for changes in estimates of cash flows. Revisions in steam and other production AROs primarily related to changes in costs for steam production ponds remediation. 2021 (Millions of Dollars) Jan. 1, 2021 Accretion Dec. 31, 2021 (a) Electric Steam and other production $ 52 $ 2 $ 54 Wind 50 2 52 Distribution 10 — 10 Total liability $ 112 $ 4 $ 116 (a) No AROs were revised in 2021. |
Assets and Liabilities, Lessee [Table Text Block] | Operating lease ROU assets: (Millions of Dollars) Dec. 31, 2022 Dec. 31, 2021 PPAs $ 500 $ 500 Other 44 45 Gross operating lease ROU assets 544 545 Accumulated amortization (110) (82) Net operating lease ROU assets $ 434 $ 463 |
Lease, Cost [Table Text Block] | Components of lease expense: (Millions of Dollars) 2022 2021 2020 Operating leases PPA capacity payments $ 53 $ 53 $ 48 Other operating leases (a) 4 4 3 Total operating lease expense (b) $ 57 $ 57 $ 51 (a) Includes short-term lease expense o f $1 million for 2022, 2021 and 2020. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Commitments under operating leases as of Dec. 31, 2022: (Millions of Dollars) PPA (a) (b) Operating Leases Other Operating Leases Total Leases 2023 $ 46 $ 3 $ 49 2024 46 3 49 2025 46 4 50 2026 46 4 50 2027 46 4 50 Thereafter 266 36 302 Total minimum obligation 496 54 550 Interest component of obligation (102) (14) (116) Present value of minimum obligation 394 40 434 Less current portion (31) Noncurrent operating and finance lease liabilities $ 403 Weighted-average remaining lease term in years 11 (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. |
Estimated Future Payments for Capacity and Energy Pursuant to Purchased Power Agreements | At Dec. 31, 2022, the estimated future payments for capacity that SPS is obligated to purchase pursuant to these executory contracts, subject to availability, were as follows: (Millions of Dollars) Capacity 2023 $ 13 2024 6 2025 — 2026 — 2027 — Thereafter — Total $ 19 |
Estimated Minimum Purchases Under Fuel Contracts | Estimated minimum purchases under these contracts as of Dec. 31, 2022: (Millions of Dollars) Coal Natural gas Natural gas 2023 $ 201 $ 33 30 2024 133 — 16 2025 18 — 12 2026 19 — 6 2027 19 — 6 Thereafter — — 8 Total $ 390 $ 33 $ 78 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Significant affiliate transactions among the companies and related parties for the years ended Dec. 31: (Millions of Dollars) 2022 2021 2020 Operating expenses: Other operating expenses — paid to Xcel Energy Services Inc. $ 238 $ 209 $ 200 Interest expense 1 — — Accounts receivable and payable with affiliates at Dec. 31 were: 2022 2021 (Millions of Dollars) Accounts Receivable Accounts Payable Accounts Receivable Accounts Payable NSP-Minnesota $ 3 $ — $ 2 $ — PSCo 11 — 7 — Other subsidiaries of Xcel Energy Inc. 1 23 — 16 $ 15 $ 23 $ 9 $ 16 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense expressed as a percentage of average depreciable property | 3.40% | 3.30% | 3.10% |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 13 | $ 12 | |
Alternative Revenue Programs [Abstract] | |||
maximum number of months following end of annual period | 24 months | ||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 61 | 51 | |
maximum number of months following end of annual period | 24 months | ||
Maturity period | 3 months | ||
Supplies | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 42 | 29 | |
Fuel | |||
Public Utilities, Inventory [Line Items] | |||
Inventory | $ 19 | $ 22 |
Property Plant and Equipment _3
Property Plant and Equipment Property Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 10,615 | $ 10,109 | |
Accumulated Depreciation | (2,486) | (2,271) | |
Property, plant and equipment, net | 8,129 | 7,838 | |
Electric plant | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 10,182 | 9,639 | |
Plant to be Retired [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | [1] | 266 | 299 |
CWIP | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 167 | $ 171 | |
[1]Amounts include Tolk and coal generation assets at Harrington pending facility gas conversion and are presented net of accumulated depreciation. |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities, Regulatory Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | $ 217 | $ 193 | ||
Regulatory Asset, Noncurrent | 359 | 380 | ||
Regulatory assets not currently earning a return | 48 | 292 | ||
Pension and Retiree Medical Obligations | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 2 | 11 | [1] | |
Regulatory Asset, Noncurrent | 146 | 135 | [1] | |
Texas revenue surcharge [Member] | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 69 | 20 | [1] | |
Regulatory Asset, Noncurrent | $ 0 | 64 | [1] | |
Texas revenue surcharge [Member] | Minimum [Member] | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Amortization Period | 1 year | |||
Excess deferred taxes - TCJA | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | $ 1 | 2 | [1] | |
Regulatory Asset, Noncurrent | 48 | 50 | [1] | |
Recoverable Deferred Taxes on AFUDC Recorded in Plant | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 0 | 0 | [1] | |
Regulatory Asset, Noncurrent | 40 | 41 | [1] | |
Net AROs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | [2] | 0 | 0 | [1] |
Regulatory Asset, Noncurrent | [2] | 48 | 40 | [1] |
Losses on Reacquired Debt | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 1 | 1 | [1] | |
Regulatory Asset, Noncurrent | 19 | 19 | [1] | |
Deferred Fuel Costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 136 | 146 | [1] | |
Regulatory Asset, Noncurrent | $ 34 | 4 | [1] | |
Deferred Fuel Costs | Minimum [Member] | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Amortization Period | 1 year | |||
Deferred Fuel Costs | Maximum [Member] | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Amortization Period | 3 years | |||
Other | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | $ 8 | 13 | [1] | |
Regulatory Asset, Noncurrent | $ 24 | $ 27 | [1] | |
[1]Prior period amounts have been restated to conform with current year presentation.[2]Includes amounts recorded for future recovery of AROs. |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities, Regulatory Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | $ 148 | $ 54 | ||
Regulatory Liability, Noncurrent | 715 | 709 | ||
Deferred Income Tax Adjustments and TCJA Refunds | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | [1] | 0 | 15 | [2] |
Regulatory Liability, Noncurrent | [1] | 469 | 486 | [2] |
Plant Removal Costs | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | 0 | 0 | [2] | |
Regulatory Liability, Noncurrent | 198 | 190 | [2] | |
Contract Valuation Adjustments | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | [3] | 119 | 27 | [2] |
Regulatory Liability, Noncurrent | [3] | $ 1 | 1 | [2] |
Contract Valuation Adjustments | Minimum [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Amortization Period | 1 year | |||
Contract Valuation Adjustments | Maximum [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Amortization Period | 2 years | |||
Other | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | $ 19 | 6 | [2] | |
Regulatory Liability, Noncurrent | 5 | 2 | [2] | |
Effect of regulation on employee benefit costs | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | 0 | 0 | [2] | |
Regulatory Liability, Noncurrent | 20 | 19 | [2] | |
Renewable resources and environmental initiatives | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | 0 | 0 | [2] | |
Regulatory Liability, Noncurrent | 14 | 7 | [2] | |
Formula rates | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Current | 10 | 6 | [2] | |
Regulatory Liability, Noncurrent | $ 8 | $ 4 | [2] | |
Formula rates | Minimum [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Amortization Period | 1 year | |||
Formula rates | Maximum [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory Liability, Amortization Period | 2 years | |||
[1]Includes the revaluation of recoverable/regulated plant accumulated deferred income taxes and revaluation impact of non-plant accumulated deferred income taxes due to the TCJA.[2]Prior period amounts have been restated to conform with current year presentation.[3]Includes the fair value of FTR instruments utilized/intended to offset the impacts of transmission system congestion. |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||||
Amount outstanding at period end | $ 34 | $ 34 | $ 137 | |
Money Pool | ||||
Short-term Debt [Line Items] | ||||
Borrowing limit | 100 | 100 | 100 | $ 100 |
Amount outstanding at period end | 0 | 0 | 91 | 0 |
Average amount outstanding | 7 | 35 | 51 | 43 |
Maximum amount outstanding | $ 42 | $ 100 | $ 100 | $ 100 |
Weighted average interest rate, computed on a daily basis (percentage) | 3.17% | 0.44% | 0.05% | 0.54% |
Line of Credit Facility, Interest Rate at Period End | 0.05% | |||
Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Borrowing limit | $ 500 | $ 500 | $ 500 | $ 500 |
Amount outstanding at period end | 34 | 34 | 137 | 250 |
Average amount outstanding | 20 | 100 | 63 | 44 |
Maximum amount outstanding | $ 65 | $ 324 | $ 342 | $ 250 |
Weighted average interest rate, computed on a daily basis (percentage) | 4.08% | 0.79% | 0.21% | 1.11% |
Weighted average interest rate at period end (percentage) | 4.55% | 4.55% | 0.26% | 0.29% |
Letters of Credit (Details)
Letters of Credit (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 34 | $ 137 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 2 | $ 2 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Period | 1 year |
Credit Facility (Details)
Credit Facility (Details) - Credit Facility $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Line of Credit Facility [Line Items] | |||
Line Of Credit Facility Debt To Total Capitalization Ratio | [1] | 46% | 47% |
Line Of Credit Facility Maximum Amount Credit Facility May Be Increased | $ 50 | ||
Number Of Additional Periods Revolving Termination Date Can Be Extended Subject To Majority Bank Group Approval | [2] | 2 | |
Line Of Credit Facility Maximum Debt To Total Capitalization Ratio Allowed | 65% | ||
Line Of Credit Facility Minimum Threshhold Percentage Of Subsidiary Assets To Consolidated Assets Required To Initiate Cross Default Provisions | 15% | ||
Line of Credit Facility, Minimum Amount of Indebtedness in Default to Initiate Cross Default Provisions | $ 75 | ||
Direct advances on the credit outstanding | 0 | $ 0 | |
SPS [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility | [3] | 500 | |
Drawn | [4] | 36 | |
Available | $ 464 | ||
[1]The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65%.[2]All extension requests are subject to majority bank group approval.[3]This credit facility matures in September 2027.[4]Includes letters of credit and outstanding commercial paper. |
Long-Term Borrowings (Details)
Long-Term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ (10) | $ (9) | |
Unamortized Debt Issuance Expense | (29) | (28) | |
Long-term Debt, Excluding Current Maturities | 3,211 | 3,013 | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 350 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | ||
Deferred Finance Costs, Noncurrent, Net | $ 29 | 28 | |
First Mortgage Bonds, Series due: | Series Due June 15, 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 3.30% | ||
Face Amount | $ 150 | 150 | |
First Mortgage Bonds, Series due: | Series Due June 15, 2024 2 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 3.30% | ||
Face Amount | $ 200 | 200 | |
First Mortgage Bonds, Series due: | Series Due Aug. 15, 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 4.50% | ||
Face Amount | $ 200 | 200 | |
First Mortgage Bonds, Series due: | Series Due Aug. 15, 2041 2 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 4.50% | ||
Face Amount | $ 100 | 100 | |
First Mortgage Bonds, Series due: | Series Due Aug. 15, 2041 3 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 4.50% | ||
Face Amount | $ 100 | 100 | |
First Mortgage Bonds, Series due: | Series Due August 15, 2046 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 3.40% | ||
Face Amount | $ 300 | 300 | |
First Mortgage Bonds, Series due: | Series Due August 15, 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 3.70% | ||
Face Amount | $ 450 | 450 | |
First Mortgage Bonds, Series due: | Series Due Nov. 15, 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 4.40% | ||
Face Amount | $ 300 | 300 | |
First Mortgage Bonds, Series due: | Series Due June 15, 2049 [Domain] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 3.75% | ||
Face Amount | $ 300 | 300 | |
First Mortgage Bonds, Series due: | Series due May 1, 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 3.15% | ||
Face Amount | $ 350 | 350 | |
First Mortgage Bonds, Series due: | Series due May 1, 2050 2 | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | [1] | 3.15% | |
Face Amount | [1] | $ 250 | 250 |
First Mortgage Bonds, Series due: | Series Due June 1, 2052 | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | [2] | 5.15% | |
Face Amount | [2] | $ 200 | 0 |
Unsecured Debt [Member] | Senior C and D Due Oct. 1, 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 6% | ||
Face Amount | $ 100 | 100 | |
Unsecured Debt [Member] | Senior F Due Oct. 1, 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage (in hundredths) | 6% | ||
Face Amount | $ 250 | 250 | |
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 3,211 | $ 3,013 | |
[1]2020 financing re-opened in 2021.[2]2022 financing |
Borrowings and Other Financin_3
Borrowings and Other Financing Instruments Preferred Stock (Details) | Dec. 31, 2022 $ / shares shares |
Preferred Stock [Abstract] | |
Preferred Stock, Shares Authorized | 10,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 1 |
Preferred Stock, Shares Outstanding | 0 |
Borrowings and Other Financin_4
Borrowings and Other Financing Instruments Dividend and Other Restrictions (Details) $ in Millions | Dec. 31, 2022 USD ($) | |
Dividend and Other Restrictions [Abstract] | ||
Equity to total capitalization ratio (excluding short-term debt), low end of range | 45% | |
Equity to total capitalization ratio (excluding short-term debt), high end of range | 55% | |
Equity to total capitalization ratio (excluding short-term debt) | 54.30% | [1] |
Unrestricted Retained Earnings Per State Regulatory Commissions Dividend Restrictions | $ 540 | |
Capitalization, Short term debt, long term debt and equity | $ 7,094,000 | |
[1]Excludes short-term debt. |
Revenues (Details)
Revenues (Details) - Regulated Electric - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retail | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | $ 1,598 | $ 1,255 | $ 1,137 |
Retail | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 445 | 375 | 359 |
Retail | C&I | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 1,102 | 842 | 739 |
Retail | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 51 | 38 | 39 |
Wholesale | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 407 | 873 | 345 |
Transmission | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 296 | 287 | 279 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 10 | 6 | 4 |
Total revenue from contracts with customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contracts with Customers | 2,311 | 2,421 | 1,765 |
Alternative revenue and other | |||
Disaggregation of Revenue [Line Items] | |||
Alternative revenue and other | 115 | 44 | 105 |
Total revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 2,426 | $ 2,465 | $ 1,870 |
State Audits (Details)
State Audits (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Statement of Financial Position [Abstract] | |
state audits | $ 0 |
Unrealized Tax Benefits (Detail
Unrealized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Statement of Financial Position [Abstract] | |||||||
Unrecognized tax benefit — Permanent tax positions | $ 5 | $ 4 | |||||
Unrecognized tax benefit — Temporary tax positions | 4 | 4 | |||||
Balance at Dec. 31 | 9 | 8 | $ 7 | $ 8 | $ 7 | $ 5 | |
Additions based on tax positions related to the current year | 1 | 1 | 1 | ||||
Additions for tax positions of prior years | 0 | 0 | 5 | ||||
Reductions for tax positions of prior years | 0 | 0 | (4) | ||||
NOL and tax credit carryforwards | (8) | (7) | |||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 6 | ||||||
Payable for interest related to unrecognized tax benefits | 0 | (1) | (1) | $ 1 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 1 | 0 | $ (2) | ||||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 0 | $ 0 |
Other Income Tax Matters (Detai
Other Income Tax Matters (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Income Tax [Line Items] | ||||||
Federal NOL carryforward | $ 8 | $ 336 | ||||
Federal tax credit carryforwards | 294 | 187 | ||||
State NOL carryforwards | $ 4 | $ 111 | ||||
Federal statutory rate | 21% | 21% | [1] | 21% | [1] | |
State income tax on pretax income, net of federal tax effect | 2.30% | 2.50% | [1] | 2.30% | [1] | |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | [2] | (35.90%) | (39.70%) | [1] | (18.30%) | [1] |
Plant regulatory differences (b) | [3] | (3.80%) | (4.80%) | [1] | (6.40%) | [1] |
Amortization of excess nonplant deferred taxes | (0.90%) | (1.10%) | [1] | (0.80%) | [1] | |
Other, net | (0.60%) | (0.70%) | [1] | (1.30%) | [1] | |
Effective income tax rate | (17.90%) | (22.80%) | [1] | (3.50%) | [1] | |
Total income tax benefit | $ (53) | $ (59) | $ (10) | |||
Deferred tax expense (benefit) excluding items below | 37 | (23) | 53 | |||
Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities | (20) | (24) | (31) | |||
Total deferred tax assets | (17) | (47) | (22) | |||
Deferred fuel costs | 35 | 34 | [4] | |||
Operating lease liabilities | 434 | |||||
NOL carryforward | 2 | 76 | [4] | |||
income tax expense [Member] | ||||||
Income Tax [Line Items] | ||||||
Current federal tax benefit | (65) | (11) | (31) | |||
Current state tax benefit | (5) | (1) | (1) | |||
Deferred federal tax expense (benefit) | 3 | (57) | 13 | |||
Deferred state tax expense | 13 | 9 | 8 | |||
Deferred change in unrecognized tax expense | 1 | 1 | 1 | |||
Total income tax benefit | (53) | (59) | $ (10) | |||
Net Deferred Tax Liablility [Member] | ||||||
Income Tax [Line Items] | ||||||
Federal tax credit carryforwards | 294 | 187 | [4] | |||
Total deferred tax assets | (503) | (477) | [4] | |||
Differences between book and tax bases of property | 1,015 | 942 | [4] | |||
Operating lease assets | 97 | 103 | [4] | |||
Regulatory assets | 61 | 65 | [4] | |||
Pension expense | 33 | 34 | [4] | |||
Other | 1 | 1 | [4] | |||
Total deferred tax liabilities | 1,242 | 1,179 | [4] | |||
Operating lease liabilities | 97 | 103 | [4] | |||
Regulatory liabilities | 98 | 98 | [4] | |||
Other employee benefits | 6 | 7 | [4] | |||
Other | 6 | 6 | [4] | |||
Net deferred tax liability | $ 739 | $ 702 | [4] | |||
[1]Prior period amounts have been restated to conform to current year presentation.[2]Wind PTCs are credited to customers (reduction to revenue) and do not materially impact net income.[3]Regulatory differences for income tax primarily relate to the credit of excess deferred taxes to customers through the average rate assumption method. Income tax benefits associated with the credit of excess deferred taxes are offset by corresponding revenue reductions.[4]Prior periods have been reclassified to conform to current year presentation. |
Commodity Derivatives (Details)
Commodity Derivatives (Details) MWh in Millions, $ in Millions | Dec. 31, 2022 USD ($) MWh | Dec. 31, 2021 MWh | |
Electric Commodity [Member] | |||
Derivative [Line Items] | |||
Notional Amount | MWh | [1] | 8 | 8 |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative Liability, Notional Amount | $ | $ 0 | ||
[1]Not reflective of net positions in the underlying commodities. |
Consideration of Credit Risk an
Consideration of Credit Risk and Concentrations (Details) - Credit Concentration Risk $ in Millions | Dec. 31, 2022 USD ($) Counterparty |
Derivative [Line Items] | |
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | 8 |
External Credit Rating, Investment Grade | |
Derivative [Line Items] | |
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | 2 |
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ | $ 7 |
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 23% |
External Credit Rating, Non Investment Grade | |
Derivative [Line Items] | |
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | 1 |
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 1% |
Internal Investment Grade | |
Derivative [Line Items] | |
Number of most significant counterparties for wholesale, trading and non-trading commodity activities with credit exposure | 5 |
Wholesale, trading and non trading commodity credit exposure for the most significant counterparties | $ | $ 24 |
Percentage of wholesale, trading and non trading commodity credit exposure for the most significant counterparties | 77% |
Impact of Derivative Activities
Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Derivative [Line Items] | ||||
Derivative Instruments Gain (Loss) Reclassified To Regulatory Assets And Liabilities Net | $ (3) | $ 28 | $ (7) | |
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | 2 | (20) | ||
Electric Commodity Contract | ||||
Derivative [Line Items] | ||||
Derivative Instruments Gain (Loss) Reclassified To Regulatory Assets And Liabilities Net | (3) | 28 | $ (7) | |
Pre-tax gains (losses) reclassified into income during the period from regulatory assets and (liabilities) | [1] | $ (2) | $ 20 | |
[1]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. |
Recurring Fair Value Measuremen
Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Net | $ 3 | $ 6 | ||
Derivative Liability, Current | 4 | 4 | ||
Derivative Liability, Net | 2 | 6 | ||
Return Cash Collateral | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Derivative Asset, Current | $ 122 | $ 30 | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Derivative instruments | Derivative instruments | ||
Commodity Contract [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 27 | $ 7 | $ 12 | |
Purchases | [1] | 248 | 10 | 23 |
Settlements | [1] | (168) | (79) | (23) |
Gains (losses) recognized as regulatory assets | [1] | 12 | 89 | (5) |
Balance at end of period | 119 | 27 | $ 7 | |
Fair Value Measured on a Recurring Basis | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Derivative Asset, Current | 119 | 27 | ||
Fair Value Measured on a Recurring Basis | Other Derivative Instruments | Electric Commodity Contract | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Derivative Asset, Current | 119 | 27 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 119 | 27 | ||
Netting | [2] | 0 | 0 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 1 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Level 3 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 119 | 27 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 119 | 27 | ||
Netting | [2] | 0 | 0 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | Level 1 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | Level 2 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Electric Commodity Contract | Level 3 | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Gross | 119 | 27 | ||
Fair Value, Measurements, Nonrecurring | Purchased Power Agreements | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Net | [3] | 3 | 6 | |
Derivative Liability, Current | [3] | 4 | 4 | |
Derivative Liability, Net | [3] | 2 | 6 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Derivative Asset, Current | [3] | $ 3 | $ 3 | |
[1]Relates primarily to FTR instruments administered by SPP.[2]SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At Dec. 31, 2022 and 2021, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.[3]SPS currently applies the normal purchase exception to qualifying PPAs. Balance relates to specific contracts that were previously recognized at fair value prior to applying the normal purchase exception, and are being 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term Debt, Gross | $ 3,211 | $ 3,013 |
Long-term debt, Fair Value | $ 2,674 | $ 3,454 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits, Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Pension Plan [Member] | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | $ 417 | [1] | $ 557 | [1] | $ 527 | ||
Plan asset investments measured at net asset value | [1] | 129 | 174 | ||||
Total benefit obligation | 414 | 545 | 562 | ||||
Net benefit cost recognized for financial reporting | $ 6 | $ 10 | $ 13 | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.39% | 6.39% | 6.78% | ||||
Pension Plan [Member] | Forecast [Member] | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets For Next Fiscal Year | 6.96% | ||||||
Pension Plan [Member] | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | $ 172 | $ 232 | ||||
Pension Plan [Member] | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 116 | 150 | ||||
Pension Plan [Member] | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 1 | ||||
Pension Plan [Member] | Cash equivalents | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 21 | 20 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 0 | ||||
Pension Plan [Member] | Cash equivalents | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 21 | 20 | ||||
Pension Plan [Member] | Cash equivalents | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Cash equivalents | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Commingled funds | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 273 | 371 | ||||
Plan asset investments measured at net asset value | [1] | 129 | 169 | ||||
Pension Plan [Member] | Commingled funds | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 144 | 202 | ||||
Pension Plan [Member] | Commingled funds | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Commingled funds | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Debt securities | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 115 | 149 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 0 | ||||
Pension Plan [Member] | Debt securities | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Debt securities | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 115 | 148 | ||||
Pension Plan [Member] | Debt securities | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 1 | ||||
Pension Plan [Member] | Equity securities | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 7 | 10 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 0 | ||||
Pension Plan [Member] | Equity securities | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 7 | 10 | ||||
Pension Plan [Member] | Equity securities | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Equity securities | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Other Investments [Member] | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 1 | 7 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 5 | ||||
Pension Plan [Member] | Other Investments [Member] | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Pension Plan [Member] | Other Investments [Member] | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 1 | 2 | ||||
Pension Plan [Member] | Other Investments [Member] | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | 36 | [1] | 43 | [1] | $ 44 | ||
Plan asset investments measured at net asset value | [1] | 6 | 7 | ||||
Total benefit obligation | 26 | 34 | 38 | ||||
Net benefit cost recognized for financial reporting | $ (1) | $ (1) | $ 0 | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.10% | 4.10% | 4.50% | ||||
Other Postretirement Benefits Plan [Member] | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | $ 8 | $ 9 | ||||
Other Postretirement Benefits Plan [Member] | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 22 | 27 | ||||
Other Postretirement Benefits Plan [Member] | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Cash equivalents | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 3 | 3 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Cash equivalents | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 3 | 3 | ||||
Other Postretirement Benefits Plan [Member] | Cash equivalents | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Cash equivalents | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Insurance contracts | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 4 | 5 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Insurance contracts | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Insurance contracts | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 4 | 5 | ||||
Other Postretirement Benefits Plan [Member] | Insurance contracts | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Commingled funds | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 11 | 13 | ||||
Plan asset investments measured at net asset value | [1] | 6 | 7 | ||||
Other Postretirement Benefits Plan [Member] | Commingled funds | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 5 | 6 | ||||
Other Postretirement Benefits Plan [Member] | Commingled funds | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Commingled funds | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Debt securities | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 18 | 22 | ||||
Plan asset investments measured at net asset value | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Debt securities | Level 1 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Other Postretirement Benefits Plan [Member] | Debt securities | Level 2 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 18 | 22 | ||||
Other Postretirement Benefits Plan [Member] | Debt securities | Level 3 | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Fair value of plan assets | [1] | 0 | 0 | ||||
Supplemental Executive Retirement Plan (SERP) and Nonqualified Pension Plan | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Total benefit obligation | 2 | 2 | |||||
Net benefit cost recognized for financial reporting | 17 | 4 | |||||
Supplemental Executive Retirement Plan (SERP) and Nonqualified Pension Plan | Parent Company [Member] | |||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | |||||||
Total benefit obligation | $ 11 | $ 43 | |||||
[1]See Note 8 for further information on fair value measurement inputs and methods. |
Benefit Plans and Other Postr_4
Benefit Plans and Other Postretirement Benefits, Pension Plan Benefit Obligations, Cash Flows and Benefit Costs (Details) | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) Plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Operating and maintenance expenses | $ 317,000,000 | $ 271,000,000 | $ 275,000,000 | |||
Funded Status of Plans at Dec. 31 [Abstract] | ||||||
Liability, Defined Benefit Plan, Noncurrent | (12,000,000) | (8,000,000) | ||||
Significant Assumptions Used to Measure Costs [Abstract] | ||||||
annual interest crediting rates | 4.69 | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 2,000,000 | |||||
Accumulated Benefit Obligation at Dec. 31 | 386,000,000 | 506,000,000 | ||||
Change in Projected Benefit Obligation [Roll Forward] | ||||||
Obligation at Jan. 1 | 545,000,000 | 562,000,000 | ||||
Service cost | 10,000,000 | 11,000,000 | 10,000,000 | |||
Interest cost | 16,000,000 | 15,000,000 | 18,000,000 | |||
Actuarial loss | (123,000,000) | (13,000,000) | ||||
Benefit payments | (34,000,000) | (30,000,000) | ||||
Obligation at Dec. 31 | 414,000,000 | 545,000,000 | 562,000,000 | |||
Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets at Jan. 1 | 557,000,000 | [1] | 527,000,000 | |||
Actual return on plan assets | (106,000,000) | 46,000,000 | ||||
Employer contributions | 0 | 14,000,000 | ||||
Benefit payments | (34,000,000) | (30,000,000) | ||||
Fair value of plan assets at Dec. 31 | 417,000,000 | [1] | 557,000,000 | [1] | 527,000,000 | |
Funded Status of Plans at Dec. 31 [Abstract] | ||||||
Funded status | 3,000,000 | 12,000,000 | ||||
Liability, Defined Benefit Plan, Noncurrent | (4,000,000) | 0 | ||||
Assets for Plan Benefits, Defined Benefit Plan | 7,000,000 | 12,000,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery Rates [Abstract] | ||||||
Net loss | 145,000,000 | 143,000,000 | ||||
Prior service credit | (1,000,000) | (1,000,000) | ||||
Total | 144,000,000 | 142,000,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates [Abstract] | ||||||
Current regulatory assets | 2,000,000 | 11,000,000 | ||||
Noncurrent regulatory assets | 142,000,000 | 131,000,000 | ||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Liabilities | 0 | 0 | ||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Liabilities | 0 | 0 | ||||
Total | $ 144,000,000 | $ 142,000,000 | ||||
Significant Assumptions Used to Measure Benefit Obligations [Abstract] | ||||||
Discount rate for year-end valuation (as a percent) | 5.80% | 3.08% | ||||
Expected average long-term increase in compensation level (as a percent) | 4.25% | 3.75% | ||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | $ 10,000,000 | $ 11,000,000 | 10,000,000 | |||
Interest cost | 16,000,000 | 15,000,000 | 18,000,000 | |||
Expected return on plan assets | (31,000,000) | (30,000,000) | (29,000,000) | |||
Amortization of net loss | 10,000,000 | 14,000,000 | 12,000,000 | |||
Net periodic pension cost | 7,000,000 | 10,000,000 | 11,000,000 | |||
Net benefit cost recognized for financial reporting | $ 6,000,000 | $ 10,000,000 | $ 13,000,000 | |||
Significant Assumptions Used to Measure Costs [Abstract] | ||||||
Discount rate (as a percent) | 3.08% | 2.71% | 3.49% | |||
Expected average long-term increase in compensation level (as a percent) | 3.75% | 3.75% | 3.75% | |||
Expected average long-term rate of return on assets (as a percent) | 6.39% | 6.39% | 6.78% | |||
Plan participant's contributions | $ 0 | $ 0 | ||||
Plan participant's contributions | 0 | 0 | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | 3,000,000 | 12,000,000 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | [2] | 2,000,000 | 0 | $ 0 | ||
Defined Benefit Plan, Costs Not Recognized Due To Regulation | (1,000,000) | 0 | 2,000,000 | |||
Pension Plan [Member] | SPS [Member] | ||||||
Cash Flows [Abstract] | ||||||
Payment for Pension Benefits | 15,000,000 | 14,000,000 | ||||
Other Postretirement Benefits Plan [Member] | ||||||
Change in Projected Benefit Obligation [Roll Forward] | ||||||
Obligation at Jan. 1 | 34,000,000 | 38,000,000 | ||||
Service cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Interest cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Actuarial loss | (8,000,000) | (3,000,000) | ||||
Benefit payments | (3,000,000) | (3,000,000) | ||||
Obligation at Dec. 31 | 26,000,000 | 34,000,000 | 38,000,000 | |||
Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets at Jan. 1 | 43,000,000 | [1] | 44,000,000 | |||
Actual return on plan assets | (5,000,000) | 1,000,000 | ||||
Employer contributions | 0 | 0 | ||||
Benefit payments | (3,000,000) | (3,000,000) | ||||
Fair value of plan assets at Dec. 31 | 36,000,000 | [1] | 43,000,000 | [1] | 44,000,000 | |
Funded Status of Plans at Dec. 31 [Abstract] | ||||||
Funded status | 10,000,000 | 9,000,000 | ||||
Liability, Defined Benefit Plan, Noncurrent | 0 | 0 | ||||
Assets for Plan Benefits, Defined Benefit Plan | 10,000,000 | 9,000,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery Rates [Abstract] | ||||||
Net loss | (21,000,000) | (19,000,000) | ||||
Prior service credit | 0 | (1,000,000) | ||||
Total | (21,000,000) | (20,000,000) | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates [Abstract] | ||||||
Current regulatory assets | 0 | 0 | ||||
Noncurrent regulatory assets | 0 | 0 | ||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Liabilities | (1,000,000) | (1,000,000) | ||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Liabilities | (20,000,000) | (19,000,000) | ||||
Total | $ (21,000,000) | $ (20,000,000) | ||||
Significant Assumptions Used to Measure Benefit Obligations [Abstract] | ||||||
Discount rate for year-end valuation (as a percent) | 5.80% | 3.09% | ||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | $ 1,000,000 | $ 1,000,000 | 1,000,000 | |||
Interest cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Expected return on plan assets | (2,000,000) | (2,000,000) | (2,000,000) | |||
Amortization of net loss | (1,000,000) | (1,000,000) | 0 | |||
Net periodic pension cost | (1,000,000) | (1,000,000) | 0 | |||
Net benefit cost recognized for financial reporting | $ (1,000,000) | $ (1,000,000) | $ 0 | |||
Significant Assumptions Used to Measure Costs [Abstract] | ||||||
Discount rate (as a percent) | 3.09% | 2.65% | 3.47% | |||
Expected average long-term increase in compensation level (as a percent) | 0% | 0% | 0% | |||
Expected average long-term rate of return on assets (as a percent) | 4.10% | 4.10% | 4.50% | |||
Plan participant's contributions | $ 1,000,000 | $ 0 | ||||
Plan participant's contributions | 1,000,000 | 1,000,000 | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ 10,000,000 | $ 9,000,000 | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Pre-65 | 6.50% | 5.30% | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Post-65 | 5.50% | 4.90% | ||||
Ultimate health care trend assumption rate (as a percent) | 4.50% | 4.50% | ||||
Period until ultimate trend rate is reached (in years) | $ 7 | $ 4 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | [2] | 0 | 0 | $ 0 | ||
Defined Benefit Plan, Costs Not Recognized Due To Regulation | $ 0 | $ 0 | $ 0 | |||
Parent Company [Member] | Pension Plan [Member] | ||||||
Cash Flows [Abstract] | ||||||
Number of pension plans to which contributions were made | Plan | 4 | |||||
[1]See Note 8 for further information on fair value measurement inputs and methods.[2]A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2022, as a result of lump-sum distributions during each plan year, SPS recorded a total pension settlement charge of $2 million. An immaterial amount was recorded in the income statement in 2022. There were no settlement charges recorded to the qualified pension plans in 2021 or 2020. |
Benefit Plans and Other Postr_5
Benefit Plans and Other Postretirement Benefits, Postretirement Health Care Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Postretirement Benefits Plan [Member] | |||
Postretirement Health Care Benefits [Abstract] | |||
Discount rate for year-end valuation (as a percent) | 5.80% | 3.09% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Pre-65 | 6.50% | 5.30% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Post-65 | 5.50% | 4.90% | |
Ultimate health care trend assumption rate (as a percent) | 4.50% | 4.50% | |
Period until ultimate trend rate is reached (in years) | $ 7 | $ 4 | |
Total benefit obligation | $ 26,000,000 | $ 34,000,000 | $ 38,000,000 |
Target pension asset allocations (as a percent) | 100% | 100% | |
Other Postretirement Benefits Plan [Member] | Equity securities | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 16% | 15% | |
Other Postretirement Benefits Plan [Member] | Long-Duration Fixed Income and Long-duration fixed income and interest rate swap securities | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 0% | 0% | |
Other Postretirement Benefits Plan [Member] | Short-to-intermediate fixed income securities | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 71% | 71% | |
Other Postretirement Benefits Plan [Member] | Alternative investments | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 12% | 8% | |
Other Postretirement Benefits Plan [Member] | Cash | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 1% | 6% | |
Pension Plan [Member] | |||
Postretirement Health Care Benefits [Abstract] | |||
Discount rate for year-end valuation (as a percent) | 5.80% | 3.08% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.25% | 3.75% | |
Total benefit obligation | $ 414,000,000 | $ 545,000,000 | $ 562,000,000 |
Target pension asset allocations (as a percent) | 100% | 100% | |
Pension Plan [Member] | Equity securities | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 33% | 33% | |
Pension Plan [Member] | Long-Duration Fixed Income and Long-duration fixed income and interest rate swap securities | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 38% | 37% | |
Pension Plan [Member] | Short-to-intermediate fixed income securities | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 9% | 11% | |
Pension Plan [Member] | Alternative investments | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 18% | 17% | |
Pension Plan [Member] | Cash | |||
Postretirement Health Care Benefits [Abstract] | |||
Target pension asset allocations (as a percent) | 2% | 2% | |
Supplemental Executive Retirement Plan (SERP) and Nonqualified Pension Plan | |||
Postretirement Health Care Benefits [Abstract] | |||
Total benefit obligation | $ 2,000,000 | $ 2,000,000 |
Benefit Plans and Other Postr_6
Benefit Plans and Other Postretirement Benefits, Fair Value of Postretirement Benefit Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Operating and maintenance expenses | $ 317 | $ 271 | $ 275 | |||
Other Postretirement Benefits Plan [Member] | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | 36 | [1] | 43 | [1] | 44 | |
Plan assets at net asset value | [1] | 6 | 7 | |||
Other Postretirement Benefits Plan [Member] | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 8 | 9 | |||
Other Postretirement Benefits Plan [Member] | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 22 | 27 | |||
Other Postretirement Benefits Plan [Member] | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Cash equivalents | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 3 | 3 | |||
Plan assets at net asset value | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Cash equivalents | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 3 | 3 | |||
Other Postretirement Benefits Plan [Member] | Cash equivalents | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Cash equivalents | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Commingled funds | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 11 | 13 | |||
Plan assets at net asset value | [1] | 6 | 7 | |||
Other Postretirement Benefits Plan [Member] | Commingled funds | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 5 | 6 | |||
Other Postretirement Benefits Plan [Member] | Commingled funds | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Commingled funds | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Insurance contracts | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 4 | 5 | |||
Plan assets at net asset value | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Insurance contracts | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Insurance contracts | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 4 | 5 | |||
Other Postretirement Benefits Plan [Member] | Insurance contracts | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Debt securities | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 18 | 22 | |||
Plan assets at net asset value | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Debt securities | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Other Postretirement Benefits Plan [Member] | Debt securities | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 18 | 22 | |||
Other Postretirement Benefits Plan [Member] | Debt securities | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | 417 | [1] | 557 | [1] | $ 527 | |
Plan assets at net asset value | [1] | 129 | 174 | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 2 | |||||
Pension Plan [Member] | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 172 | 232 | |||
Pension Plan [Member] | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 116 | 150 | |||
Pension Plan [Member] | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 1 | |||
Pension Plan [Member] | Cash equivalents | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 21 | 20 | |||
Plan assets at net asset value | [1] | 0 | 0 | |||
Pension Plan [Member] | Cash equivalents | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 21 | 20 | |||
Pension Plan [Member] | Cash equivalents | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | Cash equivalents | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | Commingled funds | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 273 | 371 | |||
Plan assets at net asset value | [1] | 129 | 169 | |||
Pension Plan [Member] | Commingled funds | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 144 | 202 | |||
Pension Plan [Member] | Commingled funds | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | Commingled funds | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | Debt securities | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 115 | 149 | |||
Plan assets at net asset value | [1] | 0 | 0 | |||
Pension Plan [Member] | Debt securities | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | Debt securities | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 115 | 148 | |||
Pension Plan [Member] | Debt securities | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 1 | |||
Pension Plan [Member] | Equity securities | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 7 | 10 | |||
Plan assets at net asset value | [1] | 0 | 0 | |||
Pension Plan [Member] | Equity securities | Level 1 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 7 | 10 | |||
Pension Plan [Member] | Equity securities | Level 2 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | 0 | 0 | |||
Pension Plan [Member] | Equity securities | Level 3 | ||||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||||
Fair value of plan assets | [1] | $ 0 | $ 0 | |||
[1]See Note 8 for further information on fair value measurement inputs and methods. |
Benefit Plans and Other Postr_7
Benefit Plans and Other Postretirement Benefits, Postretirement Benefit Plan Benefit Obligations, Cash Flows and Benefit Costs (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Operating and maintenance expenses | $ 317,000,000 | $ 271,000,000 | $ 275,000,000 | |||
Other Postretirement Benefits Plan [Member] | ||||||
Change in Projected Benefit Obligation [Roll Forward] | ||||||
Obligation at Jan. 1 | 34,000,000 | 38,000,000 | ||||
Service cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Interest cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Plan participant's contributions | 1,000,000 | 0 | ||||
Actuarial loss | (8,000,000) | (3,000,000) | ||||
Benefit payments | (3,000,000) | (3,000,000) | ||||
Obligation at Dec. 31 | 26,000,000 | 34,000,000 | 38,000,000 | |||
Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets at Jan. 1 | 43,000,000 | [1] | 44,000,000 | |||
Actual return on plan assets | (5,000,000) | 1,000,000 | ||||
Plan participant's contributions | 1,000,000 | 1,000,000 | ||||
Employer contributions | 0 | 0 | ||||
Benefit payments | (3,000,000) | (3,000,000) | ||||
Fair value of plan assets at Dec. 31 | 36,000,000 | [1] | 43,000,000 | [1] | 44,000,000 | |
Funded Status of Plans at Dec. 31 [Abstract] | ||||||
Funded status | 10,000,000 | 9,000,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery Rates [Abstract] | ||||||
Net loss | (21,000,000) | (19,000,000) | ||||
Prior service credit | 0 | (1,000,000) | ||||
Total | (21,000,000) | (20,000,000) | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost (Credit) Have Been Recorded as Follows Based Upon Expected Recovery in Rates [Abstract] | ||||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Assets | 0 | 0 | ||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Assets | 0 | 0 | ||||
Current regulatory liabilities | (1,000,000) | (1,000,000) | ||||
Noncurrent regulatory liabilities | (20,000,000) | (19,000,000) | ||||
Total | $ (21,000,000) | $ (20,000,000) | ||||
Significant Assumptions Used to Measure Benefit Obligations [Abstract] | ||||||
Discount rate for year-end valuation (as a percent) | 5.80% | 3.09% | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Pre-65 | 6.50% | 5.30% | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Post-65 | 5.50% | 4.90% | ||||
Ultimate health care trend assumption rate (as a percent) | 4.50% | 4.50% | ||||
Period until ultimate trend rate is reached (in years) | $ 7 | $ 4 | ||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Interest cost | 1,000,000 | 1,000,000 | 1,000,000 | |||
Expected return on plan assets | (2,000,000) | (2,000,000) | (2,000,000) | |||
Amortization of net loss | (1,000,000) | (1,000,000) | 0 | |||
Settlement charge (a) | [2] | 0 | 0 | 0 | ||
Net periodic pension cost | (1,000,000) | (1,000,000) | 0 | |||
Defined Benefit Plan, Costs Not Recognized Due To Regulation | 0 | 0 | 0 | |||
Net benefit cost recognized for financial reporting | $ (1,000,000) | $ (1,000,000) | $ 0 | |||
Significant Assumptions Used to Measure Costs [Abstract] | ||||||
Discount rate (as a percent) | 3.09% | 2.65% | 3.47% | |||
Expected average long-term increase in compensation level (as a percent) | 0% | 0% | 0% | |||
Expected average long-term rate of return on assets (as a percent) | 4.10% | 4.10% | 4.50% | |||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 2,000,000 | |||||
Change in Projected Benefit Obligation [Roll Forward] | ||||||
Obligation at Jan. 1 | $ 545,000,000 | 562,000,000 | ||||
Service cost | 10,000,000 | 11,000,000 | $ 10,000,000 | |||
Interest cost | 16,000,000 | 15,000,000 | 18,000,000 | |||
Plan participant's contributions | 0 | 0 | ||||
Actuarial loss | (123,000,000) | (13,000,000) | ||||
Benefit payments | (34,000,000) | (30,000,000) | ||||
Obligation at Dec. 31 | 414,000,000 | 545,000,000 | 562,000,000 | |||
Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets at Jan. 1 | 557,000,000 | [1] | 527,000,000 | |||
Actual return on plan assets | (106,000,000) | 46,000,000 | ||||
Plan participant's contributions | 0 | 0 | ||||
Employer contributions | 0 | 14,000,000 | ||||
Benefit payments | (34,000,000) | (30,000,000) | ||||
Fair value of plan assets at Dec. 31 | 417,000,000 | [1] | 557,000,000 | [1] | 527,000,000 | |
Funded Status of Plans at Dec. 31 [Abstract] | ||||||
Funded status | 3,000,000 | 12,000,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery Rates [Abstract] | ||||||
Net loss | 145,000,000 | 143,000,000 | ||||
Prior service credit | (1,000,000) | (1,000,000) | ||||
Total | 144,000,000 | 142,000,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost (Credit) Have Been Recorded as Follows Based Upon Expected Recovery in Rates [Abstract] | ||||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Assets | 2,000,000 | 11,000,000 | ||||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Assets | 142,000,000 | 131,000,000 | ||||
Current regulatory liabilities | 0 | 0 | ||||
Noncurrent regulatory liabilities | 0 | 0 | ||||
Total | $ 144,000,000 | $ 142,000,000 | ||||
Significant Assumptions Used to Measure Benefit Obligations [Abstract] | ||||||
Discount rate for year-end valuation (as a percent) | 5.80% | 3.08% | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.25% | 3.75% | ||||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | $ 10,000,000 | $ 11,000,000 | 10,000,000 | |||
Interest cost | 16,000,000 | 15,000,000 | 18,000,000 | |||
Expected return on plan assets | (31,000,000) | (30,000,000) | (29,000,000) | |||
Amortization of net loss | 10,000,000 | 14,000,000 | 12,000,000 | |||
Settlement charge (a) | [2] | (2,000,000) | 0 | 0 | ||
Net periodic pension cost | 7,000,000 | 10,000,000 | 11,000,000 | |||
Defined Benefit Plan, Costs Not Recognized Due To Regulation | 1,000,000 | 0 | (2,000,000) | |||
Net benefit cost recognized for financial reporting | $ 6,000,000 | $ 10,000,000 | $ 13,000,000 | |||
Significant Assumptions Used to Measure Costs [Abstract] | ||||||
Discount rate (as a percent) | 3.08% | 2.71% | 3.49% | |||
Expected average long-term increase in compensation level (as a percent) | 3.75% | 3.75% | 3.75% | |||
Expected average long-term rate of return on assets (as a percent) | 6.39% | 6.39% | 6.78% | |||
[1]See Note 8 for further information on fair value measurement inputs and methods.[2]A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2022, as a result of lump-sum distributions during each plan year, SPS recorded a total pension settlement charge of $2 million. An immaterial amount was recorded in the income statement in 2022. There were no settlement charges recorded to the qualified pension plans in 2021 or 2020. |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Operating and maintenance expenses | $ 317 | $ 271 | $ 275 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 10 | 11 | 10 | |
Interest cost | 16 | 15 | 18 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (31) | (30) | (29) | |
Defined Benefit Plan, Amortization of Gain (Loss) | 10 | 14 | 12 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | [1] | 2 | 0 | 0 |
Net periodic pension cost | 7 | 10 | 11 | |
Defined Benefit Plan, Costs Not Recognized Due To Regulation | (1) | 0 | 2 | |
Net benefit cost recognized for financial reporting | $ 6 | $ 10 | $ 13 | |
Discount rate (as a percent) | 3.08% | 2.71% | 3.49% | |
Expected average long-term increase in compensation level (as a percent) | 3.75% | 3.75% | 3.75% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.39% | 6.39% | 6.78% | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 2 | |||
Net loss | $ 145 | 143 | ||
Prior service credit | (1) | (1) | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Total | 144 | 142 | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Assets | 2 | 11 | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Assets | 142 | 131 | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Liabilities | 0 | 0 | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Liabilities | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | $ 1 | |
Interest cost | 1 | 1 | 1 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (2) | (2) | (2) | |
Defined Benefit Plan, Amortization of Gain (Loss) | (1) | (1) | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | [1] | 0 | 0 | 0 |
Net periodic pension cost | (1) | (1) | 0 | |
Defined Benefit Plan, Costs Not Recognized Due To Regulation | 0 | 0 | 0 | |
Net benefit cost recognized for financial reporting | $ (1) | $ (1) | $ 0 | |
Discount rate (as a percent) | 3.09% | 2.65% | 3.47% | |
Expected average long-term increase in compensation level (as a percent) | 0% | 0% | 0% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.10% | 4.10% | 4.50% | |
Net loss | $ (21) | $ (19) | ||
Prior service credit | 0 | (1) | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Total | (21) | (20) | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Assets | 0 | 0 | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Assets | 0 | 0 | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Current Regulatory Liabilities | (1) | (1) | ||
Amounts Not Yet Recognized As Components Of Net Periodic Benefit Cost Recorded As Noncurrent Regulatory Liabilities | $ (20) | $ (19) | ||
[1]A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2022, as a result of lump-sum distributions during each plan year, SPS recorded a total pension settlement charge of $2 million. An immaterial amount was recorded in the income statement in 2022. There were no settlement charges recorded to the qualified pension plans in 2021 or 2020. |
Cash Flow (Details)
Cash Flow (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) Plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 100% | 100% | |||
Pension Plan [Member] | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 33% | 33% | |||
Pension Plan [Member] | Long-Duration Fixed Income and Long-duration fixed income and interest rate swap securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 38% | 37% | |||
Pension Plan [Member] | Short-to-intermediate fixed income securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 9% | 11% | |||
Pension Plan [Member] | Alternative investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 18% | 17% | |||
Pension Plan [Member] | Cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 2% | 2% | |||
Pension Plan [Member] | Xcel Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for Pension Benefits | $ 50 | $ 131 | $ 150 | ||
Pension Plan [Member] | SPS [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for Pension Benefits | 15 | 14 | |||
Pension Plan [Member] | Subsequent Event | Xcel Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for Pension Benefits | $ 50 | ||||
Defined Benefit Plan, Overfunded Plan [Member] | Xcel Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for Pension Benefits | $ 13 | $ 15 | $ 11 | ||
Defined Benefit Plan, Overfunded Plan [Member] | Subsequent Event | Xcel Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for Pension Benefits | $ 12 | ||||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 100% | 100% | |||
Other Postretirement Benefits Plan [Member] | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 16% | 15% | |||
Other Postretirement Benefits Plan [Member] | Long-Duration Fixed Income and Long-duration fixed income and interest rate swap securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 0% | 0% | |||
Other Postretirement Benefits Plan [Member] | Short-to-intermediate fixed income securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 71% | 71% | |||
Other Postretirement Benefits Plan [Member] | Alternative investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 12% | 8% | |||
Other Postretirement Benefits Plan [Member] | Cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target pension asset allocations (as a percent) | 1% | 6% | |||
Parent Company [Member] | Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan number of pension plans to which contributions were made | Plan | 4 |
Plan Amendments (Details)
Plan Amendments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||
plan ammendments | $ 0 | $ 0 |
Projected Benefit Payments (Det
Projected Benefit Payments (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
Defined Contribution Plan, Administrative Expense | $ 3 | $ 3 | $ 3 | ||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Accumulated Benefit Obligation | 386 | 506 | |||
Defined Benefit Plan, Gross Projected Benefit Payments [Abstract] | |||||
2022 | 33 | ||||
2023 | 31 | ||||
2024 | 32 | ||||
2025 | 31 | ||||
2026 | 32 | ||||
2027-2031 | 157 | ||||
Pension Plan [Member] | Xcel Energy [Member] | |||||
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
Payment for Pension Benefits | 50 | 131 | 150 | ||
Pension Plan [Member] | Xcel Energy [Member] | Subsequent Event | |||||
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
Payment for Pension Benefits | $ 50 | ||||
Pension Plan [Member] | SPS [Member] | |||||
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
Payment for Pension Benefits | 15 | 14 | |||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
2022 | 2 | ||||
2023 | 2 | ||||
2024 | 2 | ||||
2025 | 2 | ||||
2026 | 2 | ||||
2027-2031 | 11 | ||||
Defined Benefit Plan, Overfunded Plan [Member] | Xcel Energy [Member] | |||||
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
Payment for Pension Benefits | $ 13 | $ 15 | $ 11 | ||
Defined Benefit Plan, Overfunded Plan [Member] | Xcel Energy [Member] | Subsequent Event | |||||
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |||||
Payment for Pension Benefits | $ 12 |
Commitments and Contingencies S
Commitments and Contingencies SPP OATT Upgrade Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018 USD ($) | |
Southwest Power Pool (SPP) [Member] | SPP Open Access Transmission Tariff Upgrade Costs [Member] | SPS [Member] | |
Public Utilities, General Disclosures [Line Items] | |
Public Utilities, Billed Charges For Transmission Service Upgrades | $ 13 |
Commitment and Contingencies Wi
Commitment and Contingencies Wind Operating Commitments (Details) | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Wind operating commitments, minimum net capacity factor | 48% |
Commitments and Contingencies E
Commitments and Contingencies Environmental Requirements - Air (Details) | Dec. 31, 2022 |
Other MGP, Landfill, or Disposal Sites [Domain] | |
Loss Contingencies [Line Items] | |
Number of identified MGP, landfill, or disposal sites under current investigation and/or remediation | 1 |
Commitments and Contingencies,
Commitments and Contingencies, Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning balance | $ 116 | [1] | $ 112 | ||
Accretion | 5 | 4 | |||
Ending balance | 147 | 116 | [1] | ||
Cash flow revisions | 26 | [2] | 0 | ||
Electric Plant Steam Production Asbestos | |||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning balance | 54 | [1] | 52 | ||
Accretion | 3 | 2 | |||
Ending balance | 83 | 54 | [1] | ||
Electric Plant Wind Production [Member] | |||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning balance | 52 | [1] | 50 | ||
Accretion | 2 | 2 | |||
Ending balance | 54 | 52 | [1] | ||
Cash flow revisions | [2] | 0 | |||
Electric Plant Distribution | |||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning balance | 10 | [1] | 10 | ||
Accretion | 0 | 0 | |||
Ending balance | 10 | $ 10 | [1] | ||
Cash flow revisions | [2] | 0 | |||
Electric Plant Steam and Other Production Ash Containment | |||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Cash flow revisions | [2] | $ 26 | |||
[1]No AROs were revised in 2021.[2]In 2022, AROs were revised for changes in estimates of cash flows. Revisions in steam and other production AROs primarily related to changes in costs for steam production ponds remediation. |
Indeterminate AROs (Details)
Indeterminate AROs (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Statement of Financial Position [Abstract] | |
Indeterminate Costs Incurred, Asset Retirement Obligation Due to Asbestos | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies, Leases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Lessee, Lease, Description [Line Items] | ||||
Maximum Length - Short-Term Leases | 12 months | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.40% | |||
Short-term Lease, Cost | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Operating Lease, Assets and Liabilities, Lessee [Abstract] | ||||
Operating Lease, Right-of-Use Asset, Gross | 544,000,000 | 545,000,000 | ||
Operating Lease, Right-of-Use Asset, Accumulated Depreciation | (110,000,000) | (82,000,000) | ||
Operating lease right-of-use assets | 434,000,000 | 463,000,000 | ||
Lease, Cost [Abstract] | ||||
Operating Lease, Cost | [1] | 57,000,000 | 57,000,000 | 51,000,000 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2023 | 49,000,000 | |||
2024 | 49,000,000 | |||
2025 | 50,000,000 | |||
2026 | 50,000,000 | |||
2027 | 50,000,000 | |||
Thereafter | 302,000,000 | |||
Total minimum obligation | 550,000,000 | |||
Interest component of obligation | (116,000,000) | |||
Operating lease liabilities | 434,000,000 | |||
Less current portion | (31,000,000) | (30,000,000) | ||
Operating Lease, Liability, Noncurrent | 403,000,000 | 434,000,000 | ||
Weighted Average Remaining lease term, operating | 11 | |||
Property, Plant and Equipment, Other Types [Member] | ||||
Operating Lease, Assets and Liabilities, Lessee [Abstract] | ||||
Operating Lease, Right-of-Use Asset, Gross | 44,000,000 | 45,000,000 | ||
Lease, Cost [Abstract] | ||||
Operating Lease, Cost | [2] | 4,000,000 | 4,000,000 | 3,000,000 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2023 | 3,000,000 | |||
2024 | 3,000,000 | |||
2025 | 4,000,000 | |||
2026 | 4,000,000 | |||
2027 | 4,000,000 | |||
Thereafter | 36,000,000 | |||
Total minimum obligation | 54,000,000 | |||
Interest component of obligation | (14,000,000) | |||
Operating lease liabilities | 40,000,000 | |||
Purchased Power Agreements | ||||
Operating Lease, Assets and Liabilities, Lessee [Abstract] | ||||
Operating Lease, Right-of-Use Asset, Gross | 500,000,000 | 500,000,000 | ||
Lease, Cost [Abstract] | ||||
Operating Lease, Cost | 53,000,000 | $ 53,000,000 | $ 48,000,000 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2023 | [3],[4] | 46,000,000 | ||
2024 | [3],[4] | 46,000,000 | ||
2025 | [3],[4] | 46,000,000 | ||
2026 | [3],[4] | 46,000,000 | ||
2027 | [3],[4] | 46,000,000 | ||
Thereafter | [3],[4] | 266,000,000 | ||
Total minimum obligation | [3],[4] | 496,000,000 | ||
Interest component of obligation | [3],[4] | (102,000,000) | ||
Operating lease liabilities | [3],[4] | $ 394,000,000 | ||
[1]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.[2] Includes short-term lease expense o f $1 million for 2022, 2021 and 2020. |
Commitments and Contingencies_3
Commitments and Contingencies, Purchased Power Agreements (Details) - Capacity $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Purchased Power Agreements (PPAs) [Abstract] | |
Payments for capacity | $ 12 |
Estimated Future Payments Under PPAs [Abstract] | |
2023 | 13 |
2024 | 6 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 19 |
Commitments and Contingencies_4
Commitments and Contingencies, Fuel Contracts (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Coal | |
Fuel Contracts [Abstract] | |
2023 | $ 201 |
2024 | 133 |
2025 | 18 |
2026 | 19 |
2027 | 19 |
Thereafter | 0 |
Total | 390 |
Natural Gas Supply [Member] | |
Fuel Contracts [Abstract] | |
2023 | 33 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 33 |
Natural Gas Storage and Transportation [Member] | |
Fuel Contracts [Abstract] | |
2023 | 30 |
2024 | 16 |
2025 | 12 |
2026 | 6 |
2027 | 6 |
Thereafter | 8 |
Total | $ 78 |
Commitments and Contingencies_5
Commitments and Contingencies, Variable Interest Entities (Details) - MW | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Purchased Power Agreements [Abstract] | ||
Generating capacity (in MW) | 1,197 | 1,197 |
Commitments and Contingencies O
Commitments and Contingencies Other Litigation $ in Millions | Dec. 31, 2022 USD ($) |
Settled Litigation | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | $ 50 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses [Abstract] | |||
Interest expense | $ 1 | $ 0 | $ 0 |
Accounts Receivable and Payable with Affiliates [Abstract] | |||
Accounts receivable | 15 | 9 | |
Accounts payable | 23 | 16 | |
NSP-Minnesota | |||
Accounts Receivable and Payable with Affiliates [Abstract] | |||
Accounts receivable | 3 | 2 | |
Accounts payable | 0 | 0 | |
PSCo | |||
Accounts Receivable and Payable with Affiliates [Abstract] | |||
Accounts receivable | 11 | 7 | |
Accounts payable | 0 | 0 | |
Other Subsidiaries of Xcel Energy Inc. | |||
Accounts Receivable and Payable with Affiliates [Abstract] | |||
Accounts receivable | 1 | 0 | |
Accounts payable | 23 | 16 | |
Other Expense [Member] | |||
Operating expenses [Abstract] | |||
Costs and Expenses, Related Party | $ 238 | $ 209 | $ 200 |
Schedule II, Valuation and Qu_2
Schedule II, Valuation and Qualifying Accounts (Details) - Allowance for Bad Debts - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Jan. 1 | $ 12 | $ 8 | $ 5 | |
Charged to costs and expenses | 9 | 6 | 6 | |
Charged to other accounts | [1] | 1 | 3 | 2 |
Deductions from reserves | [2] | (9) | (5) | (5) |
Balance at Dec. 31 | $ 13 | $ 12 | $ 8 | |
[1]Recovery of amounts previously written-off.[2]Deductions related primarily to bad debt write-offs |