Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Estimated Minimum Purchases Under Fuel Contracts

The estimated minimum purchases for NSP-Wisconsin under these contracts as of Dec. 31, 2015 are as follows:



(Millions of Dollars)	Coal		Natural gas supply		Natural gas storage and transportation
2016	$	6.7	$	9.7	$	13.1
2017	2.5		0.2		10.4
2018	2.5		—		4.7
2019	0.8		—		3.1
2020	0.8		—		1.9
Thereafter	2.5		—		11.6
Total ^(a)	$	15.8	$	9.9	$	44.8


^(a)	Excludes additional amounts allocated to NSP-Wisconsin through intercompany charges.

Future Commitments Under Operating Leases

Future commitments under operating leases are:



(Millions of Dollars)
2016	$	0.9
2017	1.0
2018	0.9
2019	0.9
2020	0.8
Thereafter	7.0
Total	$	11.5

Low-income Housing Limited Partnerships

Amounts reflected in NSP-Wisconsin’s consolidated balance sheets for low-income housing limited partnerships include the following:



(Thousands of Dollars)	Dec. 31, 2015		Dec. 31, 2014
Current assets	$	377	$	246
Property, plant and equipment, net	2,199		2,278
Other noncurrent assets	127		122
Total assets	$	2,703	$	2,646

Current liabilities	$	1,246	$	1,349
Mortgages and other long-term debt payable	537		486
Other noncurrent liabilities	51		48
Total liabilities	$	1,834	$	1,883

Guarantee Issued and Outstanding

The following table presents the guarantee issued and outstanding for NSP-Wisconsin:



(Millions of Dollars)	Guarantee Amount		Current Exposure		Term or Expiration Date	Triggering Event
Guarantee of customer loans for the Farm Rewiring Program	$	1.0	$	0.1	2020	^(a)


^(a)	The debtor becomes the subject of bankruptcy or other insolvency proceedings.

Asset Retirement Obligations

A reconciliation of NSP-Wisconsin’s AROs for the years ended Dec. 31, 2015 and 2014 is as follows:



(Thousands of Dollars)	Beginning Balance Jan. 1, 2015		Accretion		Cash Flow Revisions			Ending Balance Dec. 31, 2015 ^(a)
Electric plant
Steam production asbestos	$	2,049	$	45	$	51		$	2,145
Steam production ash containment	374		14		229			617
Electric distribution	37		1		34			72
Other	412		15		(36		)	391
Natural gas plant
Gas distribution	6,127		240		—			6,367
Common and other property
Common miscellaneous	91		4		—			95
Total liability ^(b)	$	9,090	$	319	$	278		$	9,687


^(a)	There were no ARO liabilities recognized or settled during the year ended Dec. 31, 2015.


^(b)	Included in other long-term liabilities balance in the consolidated balance sheet.



(Thousands of Dollars)	Beginning Balance Jan. 1, 2014		Liabilities Recognized		Accretion		Cash Flow Revisions ^(a)		Ending Balance Dec. 31, 2014 ^(b)
Electric plant
Steam production asbestos	$	2,005	$	—	$	44	$	—	$	2,049
Steam production ash containment	361		—		13		—		374
Electric distribution	36		—		1		—		37
Other	289		113		10		—		412
Natural gas plant
Gas distribution	75		402		5		5,645		6,127
Common and other property
Common miscellaneous	87		—		3		1		91
Total liability ^(c)	$	2,853	$	515	$	76	$	5,646	$	9,090


^(a)	In 2014, revisions were made to various AROs due to revised estimated cash flows and the timing of those cash flows. Changes in estimated excavation costs and the timing of future retirement activities resulted in revisions to AROs related to gas distribution.


^(b)	There were no ARO liabilities settled during the year ended Dec. 31, 2014.


^(c)	Included in other long-term liabilities balance in the consolidated balance sheet.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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