Benefit Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2014

Benefit Plans and Other Postretirement Benefits [Abstract]

Projected Benefit Payments for the Pension and Postretirement Benefit Plans

The following table lists NSP-Wisconsin’s projected benefit payments for the pension and postretirement benefit plans:

(Thousands of Dollars)	ProjectedPension BenefitPayments		Gross Projected Postretirement Health Care BenefitPayments		ExpectedMedicare Part DSubsidies		Net Projected Postretirement Health Care BenefitPayments
2015	$	12,517	$	1,547	$	13	$	1,534
2016	13,288		1,473		11		1,462
2017	13,164		1,397		9		1,388
2018	12,564		1,352		8		1,344
2019	13,289		1,311		7		1,304
2020-2024	65,118		5,816		30		5,786

Contributions to Multiemployer Plans

Contributions to multiemployer plans were as follows for the years ended Dec. 31, 2014, 2013 and 2012. There were no significant changes to the nature or magnitude of the participation of NSP-Wisconsin in multiemployer plans for the years presented:

(Thousands of Dollars)	2014		2013		2012
Multiemployer plan contributions:
Pension	$	156	$	130	$	163
Total	$	156	$	130	$	163

Pension Plans

Benefit Plans and Other Postretirement Benefits [Abstract]

Target Asset Allocations and Plan Assets Measured at Fair Value

The following table presents the target pension asset allocations for NSP-Wisconsin at Dec. 31 for the upcoming year:

	2014		2013
Domestic and international equity securities	39	%	31	%
Long-duration fixed income and interest rate swap securities	23		29
Short-to-intermediate term fixed income securities	14		16
Alternative investments	22		22
Cash	2		2
Total	100	%	100	%

The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s pension plan assets that are measured at fair value as of Dec. 31, 2014 and 2013:

	Dec. 31, 2014
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	7,910	$	—		$	—	$	7,910
Derivatives	—		28			—		28
Government securities	—		16,084			—		16,084
Corporate bonds	—		13,231			—		13,231
Asset-backed securities	—		162			—		162
Mortgage-backed securities	—		475			—		475
Common stock	4,424		—			—		4,424
Private equity investments	—		—			7,078		7,078
Commingled funds	—		81,806			—		81,806
Real estate	—		—			2,510		2,510
Securities lending collateral obligation and other	—		(995		)	—		(995		)
Total	$	12,334	$	110,791		$	9,588	$	132,713

	Dec. 31, 2013
(Thousands of Dollars)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,332	$	—	$	—	$	4,332
Derivatives	—		937		—		937
Government securities	—		6,711		—		6,711
Corporate bonds	—		24,955		—		24,955
Asset-backed securities	—		307		—		307
Mortgage-backed securities	—		684		—		684
Common stock	4,533		—		—		4,533
Private equity investments	—		—		7,502		7,502
Commingled funds	—		84,364		—		84,364
Real estate	—		—		2,299		2,299
Securities lending collateral obligation and other	—		311		—		311
Total	$	8,865	$	118,269	$	9,801	$	136,935

Changes in Level 3 Plan Assets

The following tables present the changes in NSP-Wisconsin’s Level 3 pension plan assets for the years ended Dec. 31, 2014, 2013 and 2012:

(Thousands of Dollars)	Jan. 1, 2014		Net Realized Gains (Losses)		Net Unrealized Gains (Losses)			Purchases, Issuances and Settlements, Net			Transfer Out of Level 3		Dec. 31, 2014
Private equity investments	$	7,502	$	1,197	$	(1,197	)	$	(424	)	$	—	$	7,078
Real estate	2,299		166		(234		)	279			—		2,510
Total	$	9,801	$	1,363	$	(1,431	)	$	(145	)	$	—	$	9,588

(Thousands of Dollars)	Jan. 1, 2013		Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Purchases, Issuances and Settlements, Net			Transfers Out of Level 3 (a)			Dec. 31, 2013
Asset-backed securities	$	749	$	—		$	—		$	—		$	(749	)	$	—
Mortgage-backed securities	2,128		—			—			—			(2,128		)	—
Private equity investments	8,545		1,083			(1,960		)	(166		)	—			7,502
Real estate	3,472		(129		)	247			450			(1,741		)	2,299
Total	$	14,894	$	954		$	(1,713	)	$	284		$	(4,618	)	$	9,801

^(a)  Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013.

(Thousands of Dollars)	Jan. 1, 2012		Net Realized Gains (Losses)		Net Unrealized Gains (Losses)			Purchases, Issuances and Settlements, Net			Transfers Out of Level 3		Dec. 31, 2012
Asset-backed securities	$	1,578	$	197	$	(273	)	$	(753	)	$	—	$	749
Mortgage-backed securities	3,781		93		(112		)	(1,634		)	—		2,128
Private equity investments	8,440		945		(1,197		)	357			—		8,545
Real estate	2,008		1		328			1,135			—		3,472
Total	$	15,807	$	1,236	$	(1,254	)	$	(895	)	$	—	$	14,894

Change in Projected Benefit Obligation

Benefit Obligations — A comparison of the actuarially computed pension benefit obligation and plan assets for NSP-Wisconsin is presented in the following table:

(Thousands of Dollars)	2014			2013
Accumulated Benefit Obligation at Dec. 31	$	153,590		$	153,894
Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	163,930		$	179,995
Service cost	4,527			5,682
Interest cost	7,257			6,924
Plan amendments	—			(1,109		)
Actuarial loss (gain)	9,126			(11,097		)
Benefit payments	(19,171		)	(16,465		)
Obligation at Dec. 31	$	165,669		$	163,930

Change in Fair Value of Plan Assets

(Thousands of Dollars)	2014			2013
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	136,935		$	136,546
Actual return on plan assets	6,916			5,525
Employer contributions	8,033			11,329
Benefit payments	(19,171		)	(16,465		)
Fair value of plan assets at Dec. 31	$	132,713		$	136,935

Funded Status of Plans

(Thousands of Dollars)	2014			2013
Funded Status of Plans at Dec. 31:
Funded status (a)	$	(32,956	)	$	(26,995	)

^(a)  Amounts are recognized in noncurrent liabilities on NSP-Wisconsin’s consolidated balance sheets.

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost

(Thousands of Dollars)	2014		2013
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	90,007	$	84,773
Prior service cost	667		778
Total	$	90,674	$	85,551

Amounts Not Yet Recognized as Components of Net Periodic Benefit Costs Recorded on the Balance Sheet Based Upon Expected Recovery in Rates

(Thousands of Dollars)	2014		2013
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	6,728	$	7,631
Noncurrent regulatory assets	83,946		77,920
Total	$	90,674	$	85,551

Schedule of Assumptions Used

Measurement date Dec. 31, 2014 Dec. 31, 2013

	2014		2013
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation	4.11	%	4.75	%
Expected average long-term increase in compensation level	3.75		3.75
Mortality table	RP 2014		RP 2000

	2014		2013		2012
Significant Assumptions Used to Measure Costs:
Discount rate	4.75	%	4.00	%	5.00	%
Expected average long-term increase in compensation level	3.75		3.75		4.00
Expected average long-term rate of return on assets	7.25		7.25		7.50

Components of Net Periodic Benefit Costs

Benefit Costs —The components of NSP-Wisconsin’s net periodic pension cost were:

(Thousands of Dollars)	2014			2013			2012
Service cost	$	4,527		$	5,682		$	4,568
Interest cost	7,257			6,924			7,765
Expected return on plan assets	(9,642		)	(9,995		)	(10,489		)
Amortization of prior service cost	111			417			1,771
Amortization of net loss	6,617			7,924			6,004
Net periodic pension cost	$	8,870		$	10,952		$	9,619

Postretirement Benefit Plan

Benefit Plans and Other Postretirement Benefits [Abstract]

Target Asset Allocations and Plan Assets Measured at Fair Value

The following table presents the target postretirement asset allocations for Xcel Energy Inc. and NSP-Wisconsin at Dec. 31 for the upcoming year:

	2014		2013
Domestic and international equity securities	25	%	41	%
Short-to-intermediate fixed income securities	57		40
Alternative investments	13		13
Cash	5		6
Total	100	%	100	%

The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s proportionate allocation of the total postretirement benefit plan assets that are measured at fair value as of Dec. 31, 2014 and 2013:

	Dec. 31, 2014
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	28	$	—		$	—	$	28
Government securities	—		52			—		52
Insurance contracts	—		54			—		54
Corporate bonds	—		59			—		59
Asset-backed securities	—		4			—		4
Mortgage-backed securities	—		12			—		12
Commingled funds	—		304			—		304
Other	—		(1		)	—		(1		)
Total	$	28	$	484		$	—	$	512

	Dec. 31, 2013
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	31	$	—		$	—	$	31
Derivatives	—		(2		)	—		(2		)
Government securities	—		89			—		89
Insurance contracts	—		80			—		80
Corporate bonds	—		79			—		79
Asset-backed securities	—		5			—		5
Mortgage-backed securities	—		37			—		37
Commingled funds	—		452			—		452
Other	—		(25		)	—		(25		)
Total	$	31	$	715		$	—	$	746

Changes in Level 3 Plan Assets

For the year ended Dec. 31, 2014 there were no assets transferred in or out of Level 3. The following tables present the changes in NSP-Wisconsin’s Level 3 postretirement benefit plan assets for the years ended Dec. 31, 2013 and 2012:

(Thousands of Dollars)	Jan. 1, 2013		Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Purchases, Issuances and Settlements, Net		Transfers Out of Level 3 (a)			Dec. 31, 2013
Asset-backed securities	$	1	$	—	$	—	$	—	$	(1	)	$	—
Mortgage-backed securities	54		—		—		—		(54		)	—
Total	$	55	$	—	$	—	$	—	$	(55	)	$	—

^(a)  Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013.

(Thousands of Dollars)	Jan. 1, 2012		Net Realized Gains (Losses)			Net Unrealized Gains (Losses)		Purchases, Issuances and Settlements, Net			Transfers Out of Level 3		Dec. 31, 2012
Asset-backed securities	$	14	$	—		$	3	$	(16	)	$	—	$	1
Mortgage-backed securities	48		(1		)	6		1			—		54
Total	$	62	$	(1	)	$	9	$	(15	)	$	—	$	55

Change in Projected Benefit Obligation

Benefit Obligations — A comparison of the actuarially computed benefit obligation and plan assets for NSP-Wisconsin is presented in the following table:

(Thousands of Dollars)	2014			2013
Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	17,153		$	19,432
Service cost	35			25
Interest cost	791			760
Medicare subsidy reimbursements	2			31
Plan participants’ contributions	284			621
Actuarial gain	(38		)	(1,724		)
Benefit payments	(1,459		)	(1,992		)
Obligation at Dec. 31	$	16,768		$	17,153

Change in Fair Value of Plan Assets

(Thousands of Dollars)	2014			2013
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	746		$	647
Actual return on plan assets	(15		)	(13		)
Plan participants’ contributions	284			621
Employer contributions	956			1,483
Benefit payments	(1,459		)	(1,992		)
Fair value of plan assets at Dec. 31	$	512		$	746

Funded Status of Plans

(Thousands of Dollars)	2014			2013
Funded Status of Plans at Dec. 31:
Funded status	$	(16,256	)	$	(16,407	)
Current liabilities	(1,022		)	(718		)
Noncurrent liabilities	(15,234		)	(15,689		)
Net postretirement amounts recognized on consolidated balance sheets	$	(16,256	)	$	(16,407	)

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost

(Thousands of Dollars)	2014			2013
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	10,461		$	11,098
Prior service credit	(2,836		)	(3,187		)
Total	$	7,625		$	7,911

Amounts Not Yet Recognized as Components of Net Periodic Benefit Costs Recorded on the Balance Sheet Based Upon Expected Recovery in Rates

(Thousands of Dollars)	2014		2013
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	95	$	570
Noncurrent regulatory assets	7,530		7,341
Total	$	7,625	$	7,911

Schedule of Assumptions Used

	2014		2013		2012
Significant Assumptions Used to Measure Costs:
Discount rate	4.82	%	4.10	%	5.00	%
Expected average long-term rate of return on assets	7.08		7.11		6.75

Measurement date Dec. 31, 2014 Dec. 31, 2013

	2014		2013
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation	4.08	%	4.82	%
Mortality table	RP 2014		RP 2000
Health care costs trend rate — initial	6.50	%	7.00	%

Effects of One-Percent Change in Assumed Health Care Cost Trend Rate

A one-percent change in the assumed health care cost trend rate would have the following effects on NSP-Wisconsin:

	One-Percentage Point
(Thousands of Dollars)	Increase		Decrease
APBO	$	1,722	$	(1,450	)
Service and interest components	98		(80		)

Components of Net Periodic Benefit Costs

Benefit Costs — The components of NSP-Wisconsin’s net periodic postretirement benefit costs were:

(Thousands of Dollars)	2014			2013			2012
Service cost	$	35		$	25		$	20
Interest cost	791			760			1,075
Expected return on plan assets	(52		)	(42		)	(50		)
Amortization of transition obligation	—			1			171
Amortization of prior service credit	(351		)	(351		)	(14		)
Amortization of net loss	666			963			486
Net periodic postretirement benefit cost	$	1,089		$	1,356		$	1,688