Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

8. Commitments and Contingencies

Legal Contingencies

From time to time, TEC and its subsidiaries are involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss.

Long-Term Commitments

TEC has commitments for various purchases as disclosed below, including payment obligations under contractual agreements for fuel, fuel transportation and power purchases that are recovered from customers under regulatory clauses. The following is a schedule of future payments under PPAs, minimum lease payments with non-cancelable lease terms in excess of one year, and other net purchase obligations/commitments at March 31, 2024:


					Fuel		Long-term
			Capital		and		Service
(millions)	Transportation		Projects		Gas Supply		Agreements		Other (1)		Total

2024	$	103	$	601	$	162	$	9	$	8	$	883
2025		131		98		69		22		8		328
2026		130		58		17		23		2		230
2027		130		6		4		22		2		164
2028		102		0		1		17		1		121
Thereafter		840		0		0		33		75		948
Total future minimum payments	$	1,436	$	763	$	253	$	126	$	96	$	2,674

(1) Other includes contractual obligations under operating leases, demand side management and purchased power agreements.

Debt Covenants

TEC must meet certain financial tests, including a debt to capital ratio, as defined in the applicable debt agreements and has certain restrictive covenants in specific agreements and debt instruments. At March 31, 2024, TEC was in compliance with all required covenants.