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Fair Value of Financial Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity FTRs
Amounts in Millions (a)
June 30, 2024Dec. 31, 2023
Megawatt hours of electricity16 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
June 30, 2024Dec. 31, 2023
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$— $— $146 $146 $— $146 $— $— $39 $39 $— $39 
Total current derivative assets$— $— $146 $146 $— 146 $— $— $39 $39 $— 39 
PPAs (b)
2 3 
Current derivative instruments$148 $42 
Current derivative liabilities
PPAs (b)
— 2 
Current derivative instruments$— $2 
(a)SPS nets derivative instruments and related collateral on its balance sheet when supported by a legally enforceable master netting agreement. At June 30, 2024 and Dec. 31, 2023, derivative assets and liabilities include no obligations to return cash collateral or rights to reclaim cash collateral.
(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
Three Months Ended June 30
(Millions of Dollars)20242023
Balance at April 1$52 $23 
Purchases (a)
102 68 
Settlements (a)
(83)(32)
Net transactions recorded during the period:
Net gains recognized as regulatory assets and liabilities (a)
75 24 
Balance at June 30$146 $83 
Six Months Ended June 30
(Millions of Dollars)20242023
Balance at Jan. 1$39 $119 
Purchases (a)
105 74 
Settlements (a)
(119)(48)
Net transactions recorded during the period:
Net gains (losses) recognized as regulatory assets and liabilities (a)
121 (62)
Balance at June 30$146 $83 
(a)Relates primarily to FTR instruments administered by SPP.
Carrying Amount and Fair Value of Long-term Debt
June 30, 2024Dec. 31, 2023
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$3,550 $2,919 $3,311 $2,818 
Derivative Instruments, Gain (Loss)
Pre-Tax Fair Value Gains (Losses) Recognized During the Period in:
(Millions of Dollars)Regulatory Assets and Liabilities
Three Months Ended June 30, 2024
Other derivative instruments
Electric commodity$41 
Total$41 
Six Months Ended June 30, 2024
Other derivative instruments
Electric commodity$40 
Total$40 
Three Months Ended June 30, 2023
Other derivative instruments
Electric commodity$(8)
Total$(8)
Six Months Ended June 30, 2023
Other derivative instruments
Electric commodity$(83)
Total$(83)
Pre-Tax Losses Reclassified into Income During the Period from:
(Millions of Dollars)Regulatory Assets and Liabilities
Three Months Ended June 30, 2024
Other derivative instruments
Electric commodity$(16)
(a)
Total$(16)
Six Months Ended June 30, 2024
Other derivative instruments
Electric commodity$(8)
(a)
Total$(8)
Three Months Ended June 30, 2023
Other derivative instruments
Electric commodity$4 
(a)
Total$4 
Six Months Ended June 30, 2023
Other derivative instruments
Electric commodity$72 
(a)
Total$72 
(a)Recorded to electric fuel and purchased power. These derivative settlement gains and losses are shared with electric customers through fuel and purchased energy cost-recovery mechanisms, and reclassified out of income as regulatory assets or liabilities, as appropriate. FTR settlements are shared with customers and do not have a material impact on net income. Presented amounts reflect changes in fair value between auction and settlement dates, but exclude the original auction fair value.