Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by NSP-Wisconsin’s chief operating decision maker.  NSP-Wisconsin evaluates performance based on profit or loss generated from the product or service provided.  These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.

NSP-Wisconsin has the following reportable segments: regulated electric utility, regulated natural gas utility and all other.

• NSP-Wisconsin’s regulated electric utility segment generates electricity which is transmitted and distributed in Wisconsin and Michigan.  In addition, this segment includes sales for resale and provides wholesale transmission service to various entities primarily in Wisconsin.

• NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan.

• Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category.  Those primarily include investments in rental housing projects that qualify for low-income housing tax credits.

Asset and capital expenditure information is not provided for NSP-Wisconsin’s reportable segments because as an integrated electric and natural gas utility, NSP-Wisconsin operates significant assets that are not dedicated to a specific business segment, and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis.

To report income from continuing operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment.  However, some costs, such as common depreciation, common operating and maintenance (O&M) expenses and interest expense are allocated based on cost causation allocators.  A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other		Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2013
Operating revenues from external customers	$	216,545	$	14,266		$	249	$	—		$	231,060
Intersegment revenues	89		962			—		(1,051		)	—
Total revenues	$	216,634	$	15,228		$	249	$	(1,051	)	$	231,060
Net income (loss)	$	22,859	$	(1,726	)	$	880	$	—		$	22,013

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other		Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2012
Operating revenues from external customers	$	214,426	$	11,742		$	307	$	—		$	226,475
Intersegment revenues	82		321			—		(403		)	—
Total revenues	$	214,508	$	12,063		$	307	$	(403	)	$	226,475
Net income (loss)	$	21,743	$	(1,461	)	$	1,918	$	—		$	22,200

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other		Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2013
Operating revenues from external customers	$	592,730	$	89,178	$	742	$	—		$	682,650
Intersegment revenues	250		1,549		—		(1,799		)	—
Total revenues	$	592,980	$	90,727	$	742	$	(1,799	)	$	682,650
Net income	$	46,530	$	4,100	$	1,612	$	—		$	52,242

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other		Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2012
Operating revenues from external customers	$	575,532	$	68,064	$	851	$	—		$	644,447
Intersegment revenues	278		585		—		(863		)	—
Total revenues	$	575,810	$	68,649	$	851	$	(863	)	$	644,447
Net income	$	39,118	$	992	$	2,710	$	—		$	42,820