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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New Mexico
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75-0575400
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Tyler at Sixth
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Amarillo, Texas
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79101
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer x
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Smaller reporting company o
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(Do not check if smaller reporting company)
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Class
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Outstanding at May 6, 2013
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Common Stock, $1 par value
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100 shares
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PART I — FINANCIAL INFORMATION
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Item l —
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3
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Item 2 —
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16
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Item 4 —
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18
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PART II — OTHER INFORMATION
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Item 1 —
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18
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Item 1A —
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19
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Item 4 —
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19
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Item 5 —
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19
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Item 6 —
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19
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20
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Certifications Pursuant to Section 302
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1
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Certifications Pursuant to Section 906
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1
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Statement Pursuant to Private Litigation
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1
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Three Months Ended March 31
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||||||||
2013
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2012
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|||||||
Operating revenues
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$ | 374,257 | $ | 340,488 | ||||
Operating expenses
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||||||||
Electric fuel and purchased power
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231,234 | 203,261 | ||||||
Operating and maintenance expenses
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64,570 | 63,140 | ||||||
Demand side management program expenses
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3,040 | 3,077 | ||||||
Depreciation and amortization
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30,205 | 27,846 | ||||||
Taxes (other than income taxes)
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12,149 | 11,319 | ||||||
Total operating expenses
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341,198 | 308,643 | ||||||
Operating income
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33,059 | 31,845 | ||||||
Other expense, net
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(48 | ) | (122 | ) | ||||
Allowance for funds used during construction – equity
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2,622 | 1,690 | ||||||
Interest charges and financing costs
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||||||||
Interest charges – includes other financing costs of
$736 and $768, respectively
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17,773 | 16,706 | ||||||
(1,609 | ) | (1,083 | ) | |||||
Total interest charges and financing costs
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16,164 | 15,623 | ||||||
Income before income taxes
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19,469 | 17,790 | ||||||
6,885 | 6,430 | |||||||
Net income
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$ | 12,584 | $ | 11,360 |
Three Months Ended March 31
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2013
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2012
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|||||||
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|||||||
Net income
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$ | 12,584 | $ | 11,360 | ||||
Other comprehensive income
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||||||||
Derivative instruments:
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||||||||
Reclassification of losses to net income, net of tax of $24 for each of the three months ended
March 31, 2013 and 2012
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42 | 43 | ||||||
Other comprehensive income
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42 | 43 | ||||||
Comprehensive income
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$ | 12,626 | $ | 11,403 |
Three Months Ended March 31
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2013
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2012
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|||||||
Operating activities
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||||||
Net income
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$ | 12,584 | $ | 11,360 | ||||
Adjustments to reconcile net income to cash provided by operating activities:
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||||||||
Depreciation and amortization
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30,724 | 28,407 | ||||||
Demand side management program amortization
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418 | 453 | ||||||
Deferred income taxes
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10,433 | 12,584 | ||||||
Amortization of investment tax credits
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(82 | ) | (69 | ) | ||||
Allowance for equity funds used during construction
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(2,622 | ) | (1,690 | ) | ||||
Net derivative losses
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66 | 67 | ||||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable
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4,777 | (36 | ) | |||||
Accrued unbilled revenues
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(7,384 | ) | 7,536 | |||||
Inventories
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6,856 | 11,690 | ||||||
Prepayments and other
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(10,870 | ) | (6,440 | ) | ||||
Accounts payable
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11,987 | (27,344 | ) | |||||
Net regulatory assets and liabilities
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(7,047 | ) | 23,622 | |||||
Other current liabilities
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6,556 | 1,424 | ||||||
Pension and other employee benefit obligations
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(20,739 | ) | (12,110 | ) | ||||
Change in other noncurrent assets
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(2,593 | ) | (171 | ) | ||||
Change in other noncurrent liabilities
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(2,683 | ) | 392 | |||||
Net cash provided by operating activities
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30,381 | 49,675 | ||||||
Investing activities
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Utility capital/construction expenditures
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(106,376 | ) | (86,030 | ) | ||||
Allowance for equity funds used during construction
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2,622 | 1,690 | ||||||
Investments in utility money pool arrangement
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(12,000 | ) | - | |||||
Repayments from utility money pool arrangement
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12,000 | - | ||||||
Net cash used in investing activities
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(103,754 | ) | (84,340 | ) | ||||
Financing activities
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||||||||
Proceeds from short-term borrowings, net
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7,000 | 26,000 | ||||||
Borrowings under utility money pool arrangement
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49,000 | 165,000 | ||||||
Repayments under utility money pool arrangement
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(29,000 | ) | (139,000 | ) | ||||
Capital contributions from parent
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65,000 | - | ||||||
Dividends paid to parent
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(16,773 | ) | (16,913 | ) | ||||
Net cash provided by financing activities
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75,227 | 35,087 | ||||||
Net change in cash and cash equivalents
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1,854 | 422 | ||||||
Cash and cash equivalents at beginning of period
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482 | 650 | ||||||
Cash and cash equivalents at end of period
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$ | 2,336 | $ | 1,072 | ||||
Supplemental disclosure of cash flow information:
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||||||||
Cash paid for interest (net of amounts capitalized)
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$ | (5,171 | ) | $ | (4,648 | ) | ||
Cash received (paid) for income taxes, net
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1,015 | (3,080 | ) | |||||
Supplemental disclosure of non-cash investing transactions:
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||||||||
Property, plant and equipment additions in accounts payable
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$ | 31,586 | $ | 20,041 |
March 31, 2013
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Dec. 31, 2012
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Assets
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Current assets
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Cash and cash equivalents
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$ | 2,336 | $ | 482 | ||||
Accounts receivable, net
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58,950 | 62,067 | ||||||
Accounts receivable from affiliates
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3,131 | 4,791 | ||||||
Accrued unbilled revenues
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106,276 | 98,892 | ||||||
Inventories
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24,481 | 31,337 | ||||||
Regulatory assets
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23,792 | 24,020 | ||||||
Derivative instruments
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7,892 | 7,892 | ||||||
Deferred income taxes
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34,367 | 27,528 | ||||||
Prepayments and other
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22,257 | 11,387 | ||||||
Total current assets
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283,482 | 268,396 | ||||||
Property, plant and equipment, net
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2,931,276 | 2,861,756 | ||||||
Other assets
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||||||||
Regulatory assets
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320,541 | 324,081 | ||||||
Derivative instruments
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46,976 | 48,949 | ||||||
Other
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17,128 | 14,759 | ||||||
Total other assets
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384,645 | 387,789 | ||||||
Total assets
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$ | 3,599,403 | $ | 3,517,941 | ||||
Liabilities and Equity
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Current liabilities
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Short-term debt
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$ | 16,000 | $ | 9,000 | ||||
Borrowings under utility money pool arrangement
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20,000 | - | ||||||
Accounts payable
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147,394 | 141,327 | ||||||
Accounts payable to affiliates
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11,117 | 12,363 | ||||||
Regulatory liabilities
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68,123 | 75,891 | ||||||
Taxes accrued
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16,724 | 19,380 | ||||||
Accrued interest
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25,547 | 15,104 | ||||||
Dividends payable
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17,113 | 16,773 | ||||||
Derivative instruments
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3,601 | 3,601 | ||||||
Other
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29,374 | 31,084 | ||||||
Total current liabilities
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354,993 | 324,523 | ||||||
Deferred credits and other liabilities
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Deferred income taxes
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680,046 | 662,201 | ||||||
Regulatory liabilities
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88,582 | 91,815 | ||||||
Asset retirement obligations
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17,854 | 17,607 | ||||||
Derivative instruments
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36,890 | 37,790 | ||||||
Pension and employee benefit obligations
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76,505 | 97,273 | ||||||
Other
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3,325 | 6,093 | ||||||
Total deferred credits and other liabilities
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903,202 | 912,779 | ||||||
Commitments and contingencies
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Capitalization
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Long-term debt
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1,103,740 | 1,103,684 | ||||||
Common stock – 200 shares authorized of $1.00 par value; 100 shares outstanding at
March 31, 2013 and Dec. 31, 2012, respectively
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- | - | ||||||
Additional paid in capital
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908,186 | 843,186 | ||||||
Retained earnings
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330,572 | 335,101 | ||||||
Accumulated other comprehensive loss
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(1,290 | ) | (1,332 | ) | ||||
Total common stockholder’s equity
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1,237,468 | 1,176,955 | ||||||
Total liabilities and equity
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$ | 3,599,403 | $ | 3,517,941 |
1.
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Summary of Significant Accounting Policies
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2.
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Accounting Pronouncements
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3.
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Selected Balance Sheet Data
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(Thousands of Dollars)
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March 31, 2013
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Dec. 31, 2012
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Accounts receivable, net
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Accounts receivable
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$ | 63,520 | $ | 66,789 | ||||
Less allowance for bad debts
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(4,570 | ) | (4,722 | ) | ||||
$ | 58,950 | $ | 62,067 |
(Thousands of Dollars)
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March 31, 2013
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Dec. 31, 2012
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Inventories
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Materials and supplies
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$ | 18,932 | $ | 18,129 | ||||
Fuel
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5,549 | 13,208 | ||||||
$ | 24,481 | $ | 31,337 |
(Thousands of Dollars)
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March 31, 2013
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Dec. 31, 2012
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Property, plant and equipment, net
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Electric plant
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$ | 4,428,802 | $ | 4,379,208 | ||||
Construction work in progress
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276,176 | 237,136 | ||||||
Total property, plant and equipment
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4,704,978 | 4,616,344 | ||||||
Less accumulated depreciation
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(1,773,702 | ) | (1,754,588 | ) | ||||
$ | 2,931,276 | $ | 2,861,756 |
4.
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Income Taxes
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(Millions of Dollars)
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March 31, 2013
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Dec. 31, 2012
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||||||
Unrecognized tax benefit — Permanent tax positions
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$ | 0.2 | $ | 0.2 | ||||
Unrecognized tax benefit — Temporary tax positions
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3.7 | 3.7 | ||||||
Total unrecognized tax benefit
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$ | 3.9 | $ | 3.9 |
(Millions of Dollars)
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March 31, 2013
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Dec. 31, 2012
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NOL and tax credit carryforwards
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$ | (2.2 | ) | $ | (2.0 | ) |
5.
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Rate Matters
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●
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Staff/Intervenor Direct Testimony – Aug. 8, 2013
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●
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Rebuttal Testimony – Aug. 29, 2013
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●
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Evidentiary Hearings – Sept. 16-27, 2013
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6.
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Commitments and Contingencies
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7.
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Borrowings and Other Financing Instruments
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(Amounts in Millions, Except Interest Rates)
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Three Months Ended
March 31, 2013
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Twelve Months Ended
Dec. 31, 2012
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||||||
Borrowing limit
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$ | 100 | $ | 100 | ||||
Amount outstanding at period end
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20 | - | ||||||
Average amount outstanding
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2 | 10 | ||||||
Maximum amount outstanding
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30 | 63 | ||||||
Weighted average interest rate, computed on a daily basis
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0.34 | % | 0.33 | % | ||||
Weighted average interest rate at period end
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0.34 | N/A |
(Amounts in Millions, Except Interest Rates)
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Three Months Ended
March 31, 2013
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Twelve Months Ended
Dec. 31, 2012
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||||||
Borrowing limit
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$ | 300 | $ | 300 | ||||
Amount outstanding at period end
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16 | 9 | ||||||
Average amount outstanding
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28 | 18 | ||||||
Maximum amount outstanding
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49 | 106 | ||||||
Weighted average interest rate, computed on a daily basis
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0.34 | % | 0.39 | % | ||||
Weighted average interest rate at period end
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0.34 | 0.36 |
Credit Facility (a)
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Drawn (b)
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Available
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$ | 300.0 | $ | 16.0 | $ | 284.0 |
(a)
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Credit facility expires in July 2017.
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(b)
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Includes outstanding commercial paper.
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8.
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Fair Value of Financial Assets and Liabilities
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Three Months Ended March 31
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(Thousands of Dollars)
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2013
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2012
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Accumulated other comprehensive loss related to cash flow hedges at Jan. 1
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$ | (1,332 | ) | $ | (1,504 | ) | |||
After-tax net realized losses on derivative transactions reclassified into earnings
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42 | 43 | |||||||
Accumulated other comprehensive loss related to cash flow hedges at March 31
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$ | (1,290 | ) | $ | (1,461 | ) |
March 31, 2013
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Dec. 31, 2012
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Carrying
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Carrying
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(Thousands of Dollars)
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Amount
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Fair Value
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Amount
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Fair Value
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||||||||||||
Long-term debt, including current portion
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$ | 1,103,740 | $ | 1,317,029 | $ | 1,103,684 | $ | 1,327,538 |
9.
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Other Expense, Net
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Three Months Ended March 31
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(Thousands of Dollars)
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2013
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2012
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||||||
Interest income
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$ | 113 | $ | 43 | ||||
Other nonoperating income
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3 | 28 | ||||||
Insurance policy expense
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(164 | ) | (193 | ) | ||||
Other expense, net
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$ | (48 | ) | $ | (122 | ) |
10.
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Segment Information
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●
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Revenues from external customers of $374.3 million and $340.5 million, respectively;
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●
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Net income of $12.6 million and $11.4 million, respectively; and
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●
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Capital expenditures of $99.2 million and $82.5 million, respectively.
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11.
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Benefit Plans and Other Postretirement Benefits
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Three Months Ended March 31
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||||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
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Postretirement Health
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(Thousands of Dollars)
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Pension Benefits
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Care Benefits
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||||||||||||||
Service cost
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$ | 2,404 | $ | 2,133 | $ | 342 | $ | 328 | ||||||||
Interest cost
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4,477 | 4,880 | 588 | 671 | ||||||||||||
Expected return on plan assets
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(5,993 | ) | (6,247 | ) | (796 | ) | (677 | ) | ||||||||
Amortization of transition obligation
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- | - | - | 386 | ||||||||||||
Amortization of prior service cost (credit)
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218 | 360 | (121 | ) | (37 | ) | ||||||||||
Amortization of net loss (gain)
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4,287 | 3,142 | (2 | ) | 283 | |||||||||||
Net periodic benefit cost
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5,393 | 4,268 | 11 | 954 | ||||||||||||
Costs not recognized due to the effects of regulation
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(1,075 | ) | (1,075 | ) | - | - | ||||||||||
Net benefit cost recognized for financial reporting
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$ | 4,318 | $ | 3,193 | $ | 11 | $ | 954 |
12.
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Other Comprehensive Income
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(Thousands of Dollars)
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Gains and
Losses on Cash Flow
Hedges
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|||
Accumulated other comprehensive loss at Jan. 1
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$ | (1,332 | ) | |
Losses reclassified from net accumulated
other comprehensive loss
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42 | |||
Net current period other comprehensive income
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42 | |||
Accumulated other comprehensive loss at March 31
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$ | (1,290 | ) |
(Thousands of Dollars)
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Amounts Reclassified
from Accumulated
Other Comprehensive
Loss
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Losses on cash flow hedges:
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|||
Interest rate derivatives
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$ | 66 | (a) | |
Total, pre-tax
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66 | |||
Tax benefit
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(24 | ) | ||
Total amounts reclassified, net of tax
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$ | 42 |
(a)
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Included in interest charges.
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Three Months Ended March 31
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||||||||
(Millions of Dollars)
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2013
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2012
|
||||||
Electric revenues
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$ | 374 | $ | 340 | ||||
Electric fuel and purchased power
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(231 | ) | (203 | ) | ||||
Electric margin
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$ | 143 | $ | 137 |
(Millions of Dollars)
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2013 vs. 2012
|
|||
Fuel and purchased power cost recovery
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$ | 26 | ||
Transmission revenue
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5 | |||
Demand revenue
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3 | |||
Estimated impact of weather
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1 | |||
Other, net
|
(1 | ) | ||
Total increase in electric revenues
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$ | 34 |
(Millions of Dollars)
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2013 vs. 2012
|
|||
Demand revenue
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$ | 3 | ||
Estimated impact of weather
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1 | |||
Other, net
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2 | |||
Total increase in electric margin
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$ | 6 |
(Millions of Dollars)
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2013 vs. 2012
|
|||
Insurance costs
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$ | 1 | ||
Employee benefit expense
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1 | |||
Plant generation costs
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(1 | ) | ||
Total increase in O&M expenses
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$ | 1 |
*
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Indicates incorporation by reference
|
t
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Furnished, herewith, not filed. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
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3.01*
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Amended and Restated Articles of Incorporation of SPS dated Sept. 30, 1997 (Exhibit 3(a)(2) to Form 10-K (file no. 001-03789) dated March 3, 1998).
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3.02*
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By-Laws of SPS dated Sept. 29, 1997 (Exhibit 3(b)(2) to Form 10-K (file no. 001-03789) dated March 3, 1998).
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Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
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Statement pursuant to Private Securities Litigation Reform Act of 1995.
|
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101 t
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The following materials from SPS’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 are formatted in XBRL (eXtensible Business Reporting Language): (i) the Statements of Income, (ii) the Statements of Comprehensive Income (iii) the Statements of Cash Flows, (iv) the Balance Sheets, (v) Notes to Condensed Financial Statements, and (vi) document and entity information.
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Southwestern Public Service Company | ||
May 6, 2013
|
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By:
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/s/ JEFFREY S. SAVAGE
|
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Jeffrey S. Savage
|
||
Vice President and Controller
|
||
/s/ TERESA S. MADDEN
|
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Teresa S. Madden
|
||
Senior Vice President, Chief Financial Officer and Director
|
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1.
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I have reviewed this report on Form 10-Q of Southwestern Public Service Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 6, 2013
|
|
/s/ C. RILEY HILL
|
|
C. Riley Hill
|
|
President, Chief Executive Officer and Director
|
|
1.
|
I have reviewed this report on Form 10-Q of Southwestern Public Service Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: May 6, 2013
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/s/ TERESA S. MADDEN
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Teresa S. Madden
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Senior Vice President, Chief Financial Officer and Director
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(1)
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The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of SPS as of the dates and for the periods expressed in the Form 10-Q.
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Date: May 6, 2013
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/s/ C. RILEY HILL
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C. Riley Hill
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President, Chief Executive Officer and Director
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/s/ TERESA S. MADDEN
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Teresa S. Madden
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|
Senior Vice President, Chief Financial Officer and Director
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●
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Economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures;
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The risk of a significant slowdown in growth or decline in the U.S. economy, the risk of delay in growth recovery in the U.S. economy or the risk of increased cost for insurance premiums, security and other items as a consequence of past or future terrorist attacks;
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Trade, monetary, fiscal, taxation and environmental policies of governments, agencies and similar organizations in geographic areas where SPS has a financial interest;
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Customer business conditions, including demand for their products or services and supply of labor and materials used in creating their products and services;
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Financial or regulatory accounting principles or policies imposed by the FASB, the SEC, the FERC and similar entities with regulatory oversight;
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Availability or cost of capital such as changes in: interest rates; market perceptions of the utility industry, SPS, Xcel Energy Inc. or any of its other subsidiaries; or security ratings;
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Factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages, maintenance or repairs; unanticipated changes to fossil fuel or natural gas supply costs or availability due to higher demand, shortages, transportation problems or other developments; environmental incidents; cyber incidents; or electric transmission or natural gas pipeline constraints;
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Employee workforce factors, including loss or retirement of key executives, collective-bargaining agreements with union employees, or work stoppages;
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Increased competition in the utility industry or additional competition in the markets served by SPS, Xcel Energy Inc. and its other subsidiaries;
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State and federal legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures and affect the speed and degree to which competition enters the electric market; industry restructuring initiatives; transmission system operation and/or administration initiatives; recovery of investments made under traditional regulation; nature of competitors entering the industry; retail wheeling; a new pricing structure; and former customers entering the generation market;
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Environmental laws and regulations, including legislation and regulations relating to climate change, and the associated cost of compliance;
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Rate-setting policies or procedures of regulatory entities, including environmental externalities, which are values established by regulators assigning environmental costs to each method of electricity generation when evaluating generation resource options;
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Social attitudes regarding the utility and power industries;
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Cost and other effects of legal and administrative proceedings, settlements, investigations and claims;
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Technological developments that result in competitive disadvantages and create the potential for impairment of existing assets;
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Risks associated with implementation of new technologies; and
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●
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Other business or investment considerations that may be disclosed from time to time in SPS’ SEC filings, including “Risk Factors” in Item 1A of SPS’ Form 10-K for the year ended Dec. 31, 2012, or in other publicly disseminated written documents.
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Fair Value of Financial Assets and Liabilities, Financial Impact of Qualifying Cash Flow Hedges (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Financial Impact of Qualifying Cash Flow Hedges on Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss related to cash flow hedges at beginning of period | $ (1,332) | $ (1,504) |
After-tax net realized losses on derivative transactions reclassified into earnings | 42 | 43 |
Accumulated other comprehensive loss related to cash flow hedges at end of period | $ (1,290) | $ (1,461) |
Commitments and Contingencies, Legal Contingencies (Details) (USD $)
|
Mar. 31, 2013
Native Village of Kivalina vs. Xcel Energy Inc. et al. [Member]
|
Feb. 29, 2008
Native Village of Kivalina vs. Xcel Energy Inc. et al. [Member]
Counterparty
|
Mar. 31, 2013
Comer vs. Xcel Energy Inc. et al. [Member]
|
May 31, 2011
Comer vs. Xcel Energy Inc. et al. [Member]
Counterparty
|
Mar. 31, 2013
Exelon Wind Complaint [Member]
Dispute
Site
|
---|---|---|---|---|---|
Legal Contingencies [Abstract] | |||||
Number of other entities against which the native village of Kivalina has filed a lawsuit | 23 | ||||
Estimated cost of relocating the village of Kivalina, low end of range | $ 95,000,000 | ||||
Estimated cost of relocating the village of Kivalina, high end of range | 400,000,000 | ||||
Accrual for legal contingency | $ 0 | $ 0 | $ 0 | ||
Minimum number of utility, oil, chemical and coal companies against which a lawsuit was filed in U.S. District Court in Mississippi | 85 | ||||
Number of main areas of dispute | 2 | ||||
Number of wind facilities | 12 |
Fair Value of Financial Assets and Liabilities (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Impact of Qualifying Cash Flow Hedges on Accumulated Other Comprehensive Loss | Financial Impact of Qualifying Cash Flow Hedges — The impact of qualifying interest rate cash flow hedges on SPS' accumulated other comprehensive loss, included as a component of common stockholder's equity and in the statement of comprehensive income, is detailed in the following table:
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Carrying Amount and Fair Value of Long-term Debt | As of March 31, 2013 and Dec. 31, 2012, other financial instruments for which the carrying amount did not equal fair value were as follows:
|
Segment Information (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2013
Segment
|
Mar. 31, 2012
|
Dec. 31, 2012
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 1 | ||
Net income | $ 12,584,000 | $ 11,360,000 | |
Assets | 3,599,403,000 | 3,517,941,000 | |
Regulated Electric [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 374,257,000 | 340,488,000 | |
Net income | 12,584,000 | 11,360,000 | |
Capital expenditures | 99,200,000 | 82,500,000 | |
Assets | $ 3,599,403,000 | $ 3,517,941,000 |
Fair Value of Financial Assets and Liabilities, Fair Value Measurements (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | $ 0 |
Total liabilities | $ 0 | $ 0 |
Management's Opinion
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Management's Opinion [Abstract] | |
Management's Opinion | In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of SPS as of March 31, 2013, and Dec. 31, 2012; the results of its operations, including the components of net income and comprehensive income, for the three months ended March 31, 2013 and 2012; and its cash flows for the three months ended March 31, 2013 and 2012. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2013 up to the date of issuance of these financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2012 balance sheet information has been derived from the audited 2012 financial statements included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2012. These notes to the financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the financial statements and notes thereto included in the SPS Annual Report on Form 10-K for the year ended Dec. 31, 2012, filed with the SEC on Feb. 25, 2013. Due to the seasonality of SPS' electric sales, interim results are not necessarily an appropriate base from which to project annual results. |