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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, 2022Dec. 31, 2021
MWh of electricity8 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, 2022Dec. 31, 2021
Fair ValueFair Value Total
Netting (a)
TotalFair ValueFair Value Total
Netting (a)
Total
(Millions of Dollars)Level 1Level 2Level 3Level 1Level 2Level 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)202220212020
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
20222021
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt$3,211 $2,674 $3,013 $3,454