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22
Energy Source Statistics
Year Ended Dec. 31
2013 2012 2011
SPS Millions of
KWh Percent of
Generation Millions of
KWh Percent of
Generation Millions of
KWh Percent of
Generation
Coal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,184 49% 14,005 49% 14,818 48%
Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . 11,235 38 12,088 43 13,167 43
Wind (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,507 12 2,103 7 2,386 8
Other (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 1 177 1 409 1
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,093 100% 28,373 100% 30,780 100%
Owned generation . . . . . . . . . . . . . . . . . . . . . 18,814 65% 19,940 70% 19,310 63%
Purchased generation . . . . . . . . . . . . . . . . . . 10,279 35 8,433 30 11,470 37
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,093 100% 28,373 100% 30,780 100%
(a) This category includes wind energy de-bundled from RECs and also includes Windsource RECs. SPS uses RECs to meet or exceed state resource requirements
and may sell surplus RECs.
(b) Includes energy from other sources, including nuclear, hydroelectric, solar, biomass, oil and refuse. Distributed generation from the Solar*Rewards program is not
included, was approximately 0.011, 0.008, and 0.006 net million KWh for 2013, 2012, and 2011, respectively.
Fuel Supply and Costs
The following table shows the delivered cost per MMBtu of each significant category of fuel consumed for owned electric generation,
the percentage of total fuel requirements represented by each category of fuel and the total weighted average cost of all fuels.
Coal Natural Gas Weighted
Average Owned
Fuel Cost
SPS Generating Plants Cost Percent Cost Percent
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.14 71% $ 3.97 29% $ 2.68
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.87 67 2.99 33 2.24
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.89 67 4.37 33 2.71
See Items 1A and 7 for further discussion of fuel supply and costs.
Fuel Sources
Coal — SPS purchases all of the coal requirements for its two coal facilities, Harrington and Tolk electric generating stations, from
TUCO. TUCO arranges for the purchase, receiving, transporting, unloading, handling, crushing, weighing and delivery of coal to
meet SPS’ requirements. TUCO is responsible for negotiating and administering contracts with coal suppliers, transporters and
handlers. The coal supply contract with TUCO expires in 2016 and 2017 for the Harrington station and Tolk station, respectively. As
of Dec. 31, 2013 and 2012, coal inventories at SPS were approximately 42 and 40 days supply, respectively. TUCO has coal
agreements to supply 93 percent of SPS’ estimated coal requirements in 2014, and a declining percentage of the requirements in
subsequent years. SPS’ general coal purchasing objective is to contract for approximately 100 percent of requirements for the
following year, 67 percent of requirements in two years, and 33 percent of requirements in three years.
Natural gas — SPS uses both firm and interruptible natural gas supply and standby oil in combustion turbines and certain boilers.
Natural gas for SPS’ power plants is procured under contracts to provide an adequate supply of fuel; which typically is purchased with
terms of one year or less. The transportation and storage contracts expire in various years from 2014 to 2033. All of the natural gas
supply contracts have pricing that is tied to various natural gas indices.
Most transportation contract pricing is based on FERC and Railroad Commission of Texas approved transportation tariff rates.
Certain natural gas supply and transportation agreements include obligations for the purchase and/or delivery of specified volumes of
natural gas or to make payments in lieu of delivery. SPS’ commitments related to gas supply contracts were approximately $21
million and $57 million and commitments related to gas transportation and storage contracts were approximately $201 million and
$229 million at Dec. 31, 2013 and 2012, respectively.
SPS has limited on-site fuel oil storage facilities and primarily relies on the spot market for incremental supplies.