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Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Asset Retirement Obligations
SPS’ AROs were as follows:
2020
(Millions of 
Dollars)
Jan. 1, 2020
Amounts Incurred (a)
Amounts Settled (b)
Accretion
Dec. 31, 2020 (c)
Electric
Steam and other production$51 $— $(2)$$52 
Wind16 33 — 50 
Distribution10 — — — 10 
Total liability$77 $33 $(2)$$112 
(a)Amounts incurred related to the Sagamore wind farm placed in service in 2020.
(b)Amounts settled related mainly to asbestos abatement projects.
(c)No AROs were revised in 2020.
2019
(Millions of 
Dollars)
Jan. 1, 2019
Amounts Incurred
(a)
Amounts Settled
(b)
Accretion
Cash Flow
Revisions
(c)
Dec. 31, 2019
Electric
Steam and other production$22 $— $(2)$$30 $51 
Wind— 16 — — — 16 
Distribution— — — 10 
Miscellaneous— — — (1)— 
Total liability$32 $16 $(2)$$29 $77 
(a)Amounts incurred related to the Hale wind farm placed in service in 2019.
(b)Amounts settled related to asbestos abatement projects.
(c)In 2019, AROs were revised for changes in timing and estimates of cash flows. Changes in steam production AROs primarily related to the cost estimates to remediate ponds at production facilities.
Assets and Liabilities, Lessee [Table Text Block]
Operating lease ROU assets:
(Millions of Dollars)Dec. 31, 2020Dec. 31, 2019
PPAs$500 $500 
Other50 48 
Gross operating lease ROU assets550 548 
Accumulated amortization(58)(26)
Net operating lease ROU assets$492 $522 
Lease, Cost [Table Text Block]
Components of lease expense:
(Millions of Dollars)202020192018
Operating leases
PPA capacity payments$48 $48 $51 
Other operating leases (a)
Total operating lease expense (b)
$51 $53 $59 
(a)Includes short-term lease expense of $1 million, $2 million and $1 million for 2020, 2019 and 2018, respectively.
(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.
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
Commitments under operating leases as of Dec. 31, 2020:
(Millions of Dollars)
PPA (a) (b)
Operating
Leases
Other Operating
Leases
Total
Operating
Leases
2021$46 $$49 
202246 49 
202346 49 
202446 49 
202546 49 
Thereafter359 43 402 
Total minimum obligation589 58 647 
Interest component of obligation(139)(17)(156)
Present value of minimum obligation450 41 491 
Less current portion(28)
Noncurrent operating and finance lease liabilities$463 
Weighted-average remaining lease term in years13.0
(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, 2020, 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
2021$12 
202212 
202313 
2024
2025— 
Thereafter— 
Total
$43 
Estimated Minimum Purchases Under Fuel Contracts
Estimated minimum purchases under these contracts as of Dec. 31, 2020:
(Millions of Dollars)CoalNatural gas
supply
Natural gas
storage and
transportation
2021$80 $33 $31 
202235 — 31 
2023— — 29 
2024— — 16 
2025— — 12 
Thereafter— — 20 
Total$115 $33 $139