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Fair Value of Financial Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity FTRs
Gross notional amounts of commodity FTRs at Dec. 31, 2018 and 2017:
(Amounts in Millions) (a)
 
Dec. 31, 2018
 
Dec. 31, 2017
MWh of electricity
 
5.5

 
4.3

(a) 
amounts are not reflective of net positions in the underlying commodities.
Financial Impact of Qualifying Cash Flow Hedges on Accumulated Other Comprehensive Loss
Financial impact of qualifying interest rate cash flow hedges on SPS’ accumulated other comprehensive loss, included in the statements of common stockholder’s equity and in the statements of comprehensive income:
(Millions of Dollars)
 
2018
 
2017
 
2016
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1
 
$
(0.8
)
 
$
(0.7
)
 
$
(0.8
)
After-tax net realized losses on derivative transactions reclassified into earnings
 
0.1

 
—

 
0.1

Adoption of ASU. 2018-02 (a)
 
—

 
(0.1
)
 
—

Accumulated other comprehensive loss related to cash flow hedges at Dec. 31
 
$
(0.7
)
 
$
(0.8
)
 
$
(0.7
)
(a) 
In 2017, SPS implemented ASU No. 2018-02 related to TCJA, which resulted in reclassification of certain credit balances within net accumulated other comprehensive loss to retained earnings.
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level
The following table presents for each of the fair value hierarchy levels, SPS’ derivative assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2018 and 2017:
 
 
Dec. 31, 2018
 
Dec. 31, 2017
 
 
Fair Value
 
 
 
 
 
 
 
Fair Value
 
 
 
 
 
 
(Millions of Dollars)
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
Total
 

Netting (a)
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
Total
 

Netting (a)
 
Total
Current derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric commodity
 
$
—

 
$
—

 
$
14.9

 
$
14.9

 
$
(0.2
)
 
$
14.7

 
$
—

 
$
—

 
$
14.7

 
$
14.7

 
$
(2.0
)
 
$
12.7

Total current derivative assets
 
$
—

 
$
—

 
$
14.9

 
$
14.9

 
$
(0.2
)
 
14.7

 
$
—

 
$
—

 
$
14.7

 
$
14.7

 
$
(2.0
)
 
12.7

PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
3.1

 
 
 
 
 
 
 
 
 
 
 
3.2

Current derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
17.8

 
 
 
 
 
 
 
 
 
 
 
$
15.9

Noncurrent derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
15.8

 
 
 
 
 
 
 
 
 
 
 
19.0

Noncurrent derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
15.8

 
 
 
 
 
 
 
 
 
 
 
$
19.0

Current derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric commodity
 
$
—

 
$
—

 
$
0.2

 
$
0.2

 
$
(0.2
)
 
$
—

 
$
—

 
$
—

 
$
2.0

 
$
2.0

 
$
(2.0
)
 
$
—

Total current derivative liabilities
 
$
—

 
$
—

 
$
0.2

 
$
0.2

 
$
(0.2
)
 
—

 
$
—

 
$
—

 
$
2.0

 
$
2.0

 
$
(2.0
)
 
—

PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
3.6

 
 
 
 
 
 
 
 
 
 
 
3.6

Current derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
3.6

 
 
 
 
 
 
 
 
 
 
 
$
3.6

Noncurrent derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
16.4

 
 
 
 
 
 
 
 
 
 
 
19.9

Noncurrent derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
16.4

 
 
 
 
 
 
 
 
 
 
 
$
19.9

(a) 
SPS nets derivative instruments and related collateral in its balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2018 and 2017. At both Dec. 31, 2018 and 2017, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
(b) 
During 2006, SPS qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.
Changes in Level 3 Commodity Derivatives
Changes in Level 3 commodity derivatives for the years ended Dec. 31, 2018, 2017 and 2016:
 
 
Year Ended Dec. 31
(Millions of Dollars)
 
2018
 
2017
 
2016
Balance at Jan. 1
 
$
12.7

 
$
2.0

 
$
5.1

Purchases
 
32.3

 
41.2

 
7.6

Settlements
 
(41.6
)
 
(55.8
)
 
(41.9
)
Net transactions recorded during the period:
 


 
 
 
 
Net gains recognized as regulatory assets
 
11.3

 
25.3

 
31.2

Balance at Dec. 31
 
$
14.7

 
$
12.7

 
$
2.0
Carrying Amount and Fair Value of Long-term Debt
 
 
2018
 
2017
(Millions of Dollars)
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Long-term debt, including current portion
 
$
2,126.1

 
$
2,139.8

 
$
1,829.9

 
$
2,002.0