v3.25.2
Fair Value of Financial Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Gross Notional Amounts of Commodity Forwards and Options
Gross notional amounts of commodity forwards and options:
(Amounts in Millions) (a)(b)
June 30, 2025Dec. 31, 2024
MWh of electricity1 1 
MMBtu of natural gas13 19 
(a)Not reflective of net positions in the underlying commodities.
(b)Notional amounts for options included on a gross basis, but weighted for the probability of exercise.
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income
(Millions of Dollars)Pre-Tax Losses Reclassified into Income During the Period from Accumulated Other Comprehensive LossPre-Tax Gains (Losses) Recognized During the Period in Income
Three Months Ended June 30, 2025
Derivatives designated as cash flow hedges:
Interest rate$1 
(a)
$— 
Total$1 $— 
Other derivative instruments:
Commodity trading$— $2 
(b)
Total$— $2 
Six Months Ended June 30, 2025
Derivatives designated as cash flow hedges:
Interest rate$1 
(a)
$— 
Total$1 $— 
Other derivative instruments:
Commodity trading$— $2 
(b)
Natural gas commodity— (9)
(c)(d)
Total$— $(7)
Three Months Ended June 30, 2024
Derivatives designated as cash flow hedges:
Interest rate$1 
(a)
$— 
Total$1 $— 
Six Months Ended June 30, 2024
Derivatives designated as cash flow hedges:
Interest rate$1 
(a)
$— 
Total$1 $— 
Other derivative instruments:
Commodity trading$— $(8)
(b)
Natural gas commodity— (8)
(c)(d)
Total$— $(16)
(a)Recorded to interest charges.
(b)Recorded to electric revenues. Presented amounts do not reflect non-derivative transactions or margin sharing with customers.
(c)Other than $2 million of 2025 and 2024 losses recorded to electric fuel and purchased power, amounts are recorded to cost of natural gas sold and transported. Amounts are subject to cost-recovery mechanisms and reclassified out of income to a regulatory asset, as appropriate.
(d)Relates primarily to option premium amortization.
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level
June 30, 2025Dec. 31, 2024
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:
Commodity trading$2 $2 $— $4 $(3)$1 $2 $— $— $2 $(1)$1 
Natural gas commodity— — — — — — — 9 — 9 — 9 
Total current derivative assets (b)
$2 $2 $— $4 $(3)$1 $2 $9 $— $11 $(1)$10 
Noncurrent derivative assets
Other derivative instruments:
Commodity trading$5 $4 $— $9 $(1)$8 $5 $4 $— $9 $(3)$6 
Total noncurrent derivative assets (b)
$5 $4 $— $9 $(1)$8 $5 $4 $— $9 $(3)$6 
June 30, 2025Dec. 31, 2024
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 liabilities
Other derivative instruments:
Commodity trading$2 $1 $— $3 $(3)$— $1 $— $— $1 $(1)$— 
Natural gas commodity— — — — — — — 6 — 6 — 6 
Total current derivative liabilities (b)
$2 $1 $— $3 $(3)$— $1 $6 $— $7 $(1)$6 
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading$1 $1 $— $2 $(2)$— $2 $2 $— $4 $(4)$— 
Total noncurrent derivative liabilities (b)
$1 $1 $— $2 $(2)$— $2 $2 $— $4 $(4)$— 
(a)PSCo nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. At June 30, 2025 and Dec. 31, 2024, derivative assets and liabilities include no obligations to return cash collateral. At both June 30, 2025 and Dec. 31, 2024, derivative assets and liabilities include rights to reclaim cash collateral of $1 million. Counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.
(b)Current derivative assets are included in prepayments and other as of June 30, 2025 and Dec. 31, 2024. Total noncurrent derivative assets are included in other long-term assets as of June 30, 2025 and Dec. 31, 2024. Total current derivative liabilities are included in other current liabilities and total noncurrent derivative liabilities are included in other deferred credits and other liabilities as of June 30, 2025 and Dec. 31, 2024.
Carrying Amount and Fair Value of Long-term Debt
June 30, 2025Dec. 31, 2024
(Millions of Dollars)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion$9,382 $8,267 $8,641 $7,515