Commitments and Contingencies

9 Months Ended

Sep. 30, 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 net purchase obligations/commitments at September 30, 2024:


					Fuel		Long-term
			Capital		and		Service
(millions)	Transportation		Projects (1)		Gas Supply		Agreements		Other (2)		Total

2024	$	35	$	496	$	60	$	6	$	6	$	603
2025		146		54		144		22		8		374
2026		145		14		30		23		2		214
2027		177		5		4		22		2		210
2028		138		0		1		17		1		157
Thereafter		1,320		0		0		33		75		1,428
Total future minimum payments	$	1,961	$	569	$	239	$	123	$	94	$	2,986

(1) These estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

(2) 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 September 30, 2024, TEC was in compliance with all required covenants.