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Fair Value of Financial Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity FTRs
Gross notional amounts of commodity FTRs at Dec. 31, 2019 and 2018:
(Amounts in Millions) (a)
 
Dec. 31, 2019
 
Dec. 31, 2018
MWh of electricity
 
6.4

 
5.5

(a) 
Amounts are not reflective of net positions in the underlying commodities.
Financial Impact of Qualifying Cash Flow Hedges on Accumulated Other Comprehensive Loss
(Millions of Dollars)
 
2019
 
2018
 
2017
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1
 
$
(0.7
)
 
$
(0.8
)
 
$
(0.7
)
After-tax net realized losses on derivative transactions reclassified into earnings
 
—

 
0.1

 
—

Adoption of ASU. 2018-02 (a)
 
—

 
—

 
(0.1
)
Accumulated other comprehensive loss related to cash flow hedges at Dec. 31
 
$
(0.7
)
 
$
(0.7
)
 
$
(0.8
)
(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, 2019 and 2018:
 
 
Dec. 31, 2019
 
Dec. 31, 2018
 
 
Fair Value
 
 
 
 
 
 
 
Fair Value
 
 
 
 
 
 
(Millions of Dollars)
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
Total
 

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

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

 
$
—

 
$
11.8

 
$
11.8

 
$
—

 
$
11.8

 
$
—

 
$
—

 
$
14.9

 
$
14.9

 
$
(0.2
)
 
$
14.7

Total current derivative assets
 
$
—

 
$
—

 
$
11.8

 
$
11.8

 
$
—

 
11.8

 
$
—

 
$
—

 
$
14.9

 
$
14.9

 
$
(0.2
)
 
14.7

PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
3.2

 
 
 
 
 
 
 
 
 
 
 
3.1

Current derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
15.0

 
 
 
 
 
 
 
 
 
 
 
$
17.8

Noncurrent derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
12.6

 
 
 
 
 
 
 
 
 
 
 
15.8

Noncurrent derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
12.6

 
 
 
 
 
 
 
 
 
 
 
$
15.8

Current derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric commodity
 
$
—

 
$
—

 
$
0.1

 
$
0.1

 
$
—

 
$
0.1

 
$
—

 
$
—

 
$
0.2

 
$
0.2

 
$
(0.2
)
 
$
—

Total current derivative liabilities
 
$
—

 
$
—

 
$
0.1

 
$
0.1

 
$
—

 
0.1

 
$
—

 
$
—

 
$
0.2

 
$
0.2

 
$
(0.2
)
 
—

PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
3.6

 
 
 
 
 
 
 
 
 
 
 
3.6

Current derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
3.7

 
 
 
 
 
 
 
 
 
 
 
$
3.6

Noncurrent derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPAs (b)
 
 
 
 
 
 
 
 
 
 
 
12.8

 
 
 
 
 
 
 
 
 
 
 
16.4

Noncurrent derivative instruments
 
 
 
 
 
 
 
 
 
 
 
$
12.8

 
 
 
 
 
 
 
 
 
 
 
$
16.4

(a) 
SPS nets derivative instruments and related collateral in its balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2019 and 2018. At both Dec. 31, 2019 and 2018, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral. The counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
(b) 
During 2006, SPS qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.
Changes in Level 3 Commodity Derivatives
Changes in Level 3 commodity derivatives for the years ended Dec. 31, 2019, 2018 and 2017:
 
 
Year Ended Dec. 31
(Millions of Dollars)
 
2019
 
2018
 
2017
Balance at Jan. 1
 
$
14.7

 
$
12.7

 
$
2.0

Purchases
 
26.7

 
32.3

 
41.2

Settlements
 
(34.2
)
 
(41.6
)
 
(55.8
)
Net transactions recorded during the period:
 


 
 
 
 
Net gains recognized as regulatory assets
 
4.5

 
11.3

 
25.3

Balance at Dec. 31
 
$
11.7

 
$
14.7

 
$
12.7
Carrying Amount and Fair Value of Long-term Debt
 
 
2019
 
2018
(Millions of Dollars)
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Long-term debt, including current portion
 
$
2,419.7

 
$
2,706.1

 
$
2,126.1

 
$
2,139.8