10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended Sept. 30, 2016

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-03140

Northern States Power Company

(Exact name of registrant as specified in its charter)

Wisconsin	39-0508315
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1414 West Hamilton Avenue
Eau Claire, Wisconsin	54701
(Address of principal executive offices)	(Zip Code)

(715) 737-2625

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  x Yes  ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 and Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  x Yes  ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer x	Smaller reporting company ¨
(Do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes  x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at Oct. 31, 2016
Common Stock, $100 par value	933,000 shares

Northern States Power Company (a Wisconsin corporation) meets the conditions set forth in General Instruction H (1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format specified in General Instruction H (2) to such Form 10-Q.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item l    —	Financial Statements (Unaudited)	3
Item 2   —	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 4   —	Controls and Procedures	25
PART II — OTHER INFORMATION
Item 1    —	Legal Proceedings	25
Item 1A —	Risk Factors	25
Item 4    —	Mine Safety Disclosures	26
Item 5    —	Other Information	26
Item 6    —	Exhibits	26
SIGNATURES		27

Certifications Pursuant to Section 302	1
Certifications Pursuant to Section 906	1
Statement Pursuant to Private Litigation	1

This Form 10-Q is filed by Northern States Power Company, a Wisconsin corporation (NSP-Wisconsin).  NSP-Wisconsin is a wholly owned subsidiary of Xcel Energy Inc.  Xcel Energy Inc. wholly owns the following subsidiaries: Northern States Power Company, a Minnesota corporation (NSP-Minnesota); Southwestern Public Service Company, a New Mexico corporation (SPS); Public Service Company of Colorado, a Colorado corporation (PSCo); and NSP-Wisconsin.  NSP-Minnesota, NSP-Wisconsin, PSCo and SPS are also referred to collectively as utility subsidiaries.  The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin, which is operated on an integrated basis and is managed by NSP-Minnesota, is referred to collectively as the NSP System. Additional information on Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) is available on various filings with the Securities and Exchange Commission (SEC).

PART I — FINANCIAL INFORMATION

Item 1 — FINANCIAL STATEMENTS

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(amounts in thousands)

	Three Months Ended Sept. 30						Nine Months Ended Sept. 30
	2016			2015			2016			2015
Operating revenues
Electric	$	232,216		$	224,666		$	646,619		$	634,571
Natural gas	13,646			11,088			72,671			91,273
Other	282			407			877			1,090
Total operating revenues	246,144			236,161			720,167			726,934
Operating expenses
Electric fuel and purchased power, non-affiliates	4,238			2,624			11,870			5,066
Purchased power, affiliates	105,734			102,297			311,301			318,542
Cost of natural gas sold and transported	6,081			4,375			35,964			54,933
Operating and maintenance expenses	49,235			46,292			148,370			134,126
Conservation program expenses	3,308			2,977			9,468			8,821
Depreciation and amortization	24,700			23,019			72,869			66,908
Taxes (other than income taxes)	6,506			7,045			20,757			21,151
Loss on Monticello life cycle management/extended power uprate project	—			—			—			5,237
Total operating expenses	199,802			188,629			610,599			614,784
Operating income	46,342			47,532			109,568			112,150
Other (expense) income, net	(102		)	100			424			384
Allowance for funds used during construction — equity	1,241			1,929			2,969			5,926
Interest charges and financing costs
Interest charges — includes other financing costs of $465, $461, $1,388 and $1,273, respectively	8,613			8,625			25,800			24,152
Allowance for funds used during construction — debt	(525		)	(931		)	(1,264		)	(2,865		)
Total interest charges and financing costs	8,088			7,694			24,536			21,287
Income before income taxes	39,393			41,867			88,425			97,173
Income taxes	15,172			15,635			33,948			36,162
Net income	$	24,221		$	26,232		$	54,477		$	61,011

See Notes to Consolidated Financial Statements

3

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(amounts in thousands)

	Three Months Ended Sept. 30				Nine Months Ended Sept. 30
	2016		2015		2016		2015
Net income	$	24,221	$	26,232	$	54,477	$	61,011
Other comprehensive income
Derivative instruments:
Reclassification of losses to net income, net of tax of $13, $13, $38 and $37, respectively	19		19		57		57
Other comprehensive income	19		19		57		57
Comprehensive income	$	24,240	$	26,251	$	54,534	$	61,068

See Notes to Consolidated Financial Statements

4

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

	Nine Months Ended Sept. 30
	2016			2015
Operating activities
Net income	$	54,477		$	61,011
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	74,014			67,936
Deferred income taxes	27,769			38,595
Amortization of investment tax credits	(396		)	(396		)
Allowance for equity funds used during construction	(2,969		)	(5,926		)
Loss on Monticello life cycle management/extended power uprate project	—			5,237
Net derivative losses	112			338
Changes in operating assets and liabilities:
Accounts receivable	9,394			10,026
Accrued unbilled revenues	8,203			12,657
Inventories	1,290			2,847
Other current assets	7,791			14,471
Accounts payable	11,946			(25,023		)
Net regulatory assets and liabilities	(10,256		)	(13,962		)
Other current liabilities	1,523			5,948
Pension and other employee benefit obligations	(6,256		)	(3,931		)
Change in other noncurrent assets	(402		)	11
Change in other noncurrent liabilities	1,918			595
Net cash provided by operating activities	178,158			170,434
Investing activities
Utility capital/construction expenditures	(138,616		)	(171,586		)
Allowance for equity funds used during construction	2,969			5,926
Other, net	781			(90		)
Net cash used in investing activities	(134,866		)	(165,750		)
Financing activities
Repayments of short-term borrowings, net	(6,000		)	(78,000		)
Proceeds from issuance of long-term debt	—			98,038
Repayments of long-term debt	(44		)	—
Capital contributions from parent	1,108			25,060
Dividends paid to parent	(38,414		)	(40,265		)
Net cash (used in) provided by financing activities	(43,350		)	4,833
Net change in cash and cash equivalents	(58		)	9,517
Cash and cash equivalents at beginning of period	1,079			1,285
Cash and cash equivalents at end of period	$	1,021		$	10,802
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	$	(21,692	)	$	(18,647	)
Cash (paid) received for income taxes, net	(2,298		)	9,662
Supplemental disclosure of non-cash investing transactions:
Property, plant and equipment additions in accounts payable	$	16,011		$	13,520

See Notes to Consolidated Financial Statements

5

NSP-WISCONSIN AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in thousands, except share and per share data)

	Sept. 30, 2016			Dec. 31, 2015
Assets
Current assets
Cash and cash equivalents	$	1,021		$	1,079
Accounts receivable, net	47,811			56,378
Accrued unbilled revenues	39,495			47,698
Inventories	20,269			21,559
Regulatory assets	13,567			16,146
Prepaid taxes	17,495			25,976
Deferred income taxes	7,671			3,138
Prepayments and other	3,187			2,387
Total current assets	150,516			174,361
Property, plant and equipment, net	1,901,696			1,828,079
Other assets
Regulatory assets	292,969			289,196
Other investments	3,259			4,042
Other	471			67
Total other assets	296,699			293,305
Total assets	$	2,348,911		$	2,295,745
Liabilities and Equity
Current liabilities
Current portion of long-term debt	$	1,138		$	1,131
Short-term debt	4,000			10,000
Notes payable to affiliates	500			500
Accounts payable	38,153			34,317
Accounts payable to affiliates	30,386			24,538
Dividends payable to parent	14,687			15,322
Regulatory liabilities	17,546			11,781
Environmental liabilities	16,366			17,155
Accrued interest	9,615			7,945
Other	13,226			15,778
Total current liabilities	145,617			138,467
Deferred credits and other liabilities
Deferred income taxes	428,051			393,569
Deferred investment tax credits	8,164			8,560
Regulatory liabilities	146,247			141,289
Environmental liabilities	68,419			77,441
Customer advances	19,678			18,480
Pension and employee benefit obligations	43,461			49,889
Other	16,858			16,347
Total deferred credits and other liabilities	730,878			705,575
Commitments and contingencies
Capitalization
Long-term debt	661,796			661,318
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Sept. 30, 2016 and Dec. 31, 2015, respectively	93,300			93,300
Additional paid in capital	398,033			394,553
Retained earnings	319,439			302,741
Accumulated other comprehensive loss	(152		)	(209		)
Total common stockholder’s equity	810,620			790,385
Total liabilities and equity	$	2,348,911		$	2,295,745

See Notes to Consolidated Financial Statements

6

NSP-WISCONSIN AND SUBSIDIARIES

Notes to Consolidated Financial Statements (UNAUDITED)

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of NSP-Wisconsin and its subsidiaries as of Sept. 30, 2016 and Dec. 31, 2015; the results of its operations, including the components of net income and comprehensive income, for the three and nine months ended Sept. 30, 2016 and 2015; and its cash flows for the nine months ended Sept. 30, 2016 and 2015. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2016 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2015 balance sheet information has been derived from the audited 2015 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015. These notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto, included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015, filed with the SEC on Feb. 22, 2016. Due to the seasonality of NSP-Wisconsin’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.

1. Summary of Significant Accounting Policies

The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

2. Accounting Pronouncements

Recently Issued

Revenue Recognition— In May 2014, the Financial Accounting Standards Board (FASB) issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update (ASU) No. 2014-09), which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. The new guidance also includes additional disclosure requirements regarding revenue, cash flows and obligations related to contracts with customers. The guidance is effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements.

Presentation of Deferred Taxes — In November 2015, the FASB issued Balance Sheet Classification of Deferred Taxes, Topic 740 (ASU No 2015-17), which eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet based on the classification of the related asset or liability, and instead requires classification of all deferred tax assets and liabilities as noncurrent. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. Other than the prescribed classification of all deferred tax assets and liabilities as noncurrent, NSP-Wisconsin does not expect the implementation of ASU 2015-17 to have a material impact on its consolidated financial statements.

Classification and Measurement of Financial Instruments — In January 2016, the FASB issued Recognition and Measurement of Financial Assets and Financial Liabilities, Subtopic 825-10 (ASU No. 2016-01), which among other changes in accounting and disclosure requirements, replaces the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes, and also eliminates the available-for-sale classification for marketable equity securities. Under the new guidance, other than when the consolidation or equity method of accounting is utilized, changes in the fair value of equity securities are to be recognized in earnings. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-01 on its consolidated financial statements.

7

Leases — In February 2016, the FASB issued Leases, Topic 842 (ASU No. 2016-02), which, for lessees, requires balance sheet recognition of right-of-use assets and lease liabilities for all leases. Additionally, for leases that qualify as finance leases, the guidance requires expense recognition consisting of amortization of the right-of-use asset as well as interest on the related lease liability using the effective interest method. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2018, and early adoption is permitted. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements.

Stock Compensation — In March 2016, the FASB issued Improvements to Employee Share-Based Payment Accounting, Topic 718 (ASU 2016-09), which amends existing guidance to simplify several aspects of accounting and presentation for share-based payment transactions, including the accounting for income taxes and forfeitures, as well as presentation in the statement of cash flows. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. NSP-Wisconsin does not expect the implementation of ASU 2016-09 to have a material impact on its consolidated financial statements.

Recently Adopted

Consolidation— In February 2015, the FASB issued Amendments to the Consolidation Analysis, Topic 810 (ASU No. 2015-02), which reduces the number of consolidation models and amends certain consolidation principles related to variable interest entities. NSP-Wisconsin implemented the guidance on Jan. 1, 2016, and the implementation did not have a significant impact on its consolidated financial statements.

Presentation of Debt Issuance Costs— In April 2015, the FASB issued Simplifying the Presentation of Debt Issuance Costs, Subtopic 835-30 (ASU No. 2015-03), which requires the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt, instead of presentation as an asset. NSP-Wisconsin implemented the new guidance as required on Jan. 1, 2016, and as a result, $5.0 million of deferred debt issuance costs were presented as a deduction from the carrying amount of long-term debt on the consolidated balance sheet as of March 31, 2016, and $5.1 million of such deferred costs were retrospectively reclassified from other non-current assets to long-term debt on the consolidated balance sheet as of Dec. 31, 2015.

Fair Value Measurement— In May 2015, the FASB issued Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), Topic 820 (ASU No. 2015-07), which eliminates the requirement to categorize fair value measurements using a net asset value methodology in the fair value hierarchy. NSP-Wisconsin implemented the guidance on Jan. 1, 2016, and the implementation did not have a material impact on its consolidated financial statements.

3. Selected Balance Sheet Data

(Thousands of Dollars)	Sept. 30, 2016			Dec. 31, 2015
Accounts receivable, net (a)
Accounts receivable	$	52,270		$	61,506
Less allowance for bad debts	(4,459		)	(5,128		)
	$	47,811		$	56,378

(Thousands of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Inventories
Materials and supplies	$	7,100	$	6,785
Fuel	4,887		6,528
Natural gas	8,282		8,246
	$	20,269	$	21,559

8

(Thousands of Dollars)	Sept. 30, 2016			Dec. 31, 2015
Property, plant and equipment, net
Electric plant	$	2,471,420		$	2,411,562
Natural gas plant	285,829			275,376
Common and other property	134,988			132,329
Construction work in progress	117,543			65,755
Total property, plant and equipment	3,009,780			2,885,022
Less accumulated depreciation	(1,108,084		)	(1,056,943		)
	$	1,901,696		$	1,828,079

^(a)  Accounts receivable, net includes an immaterial amount due from affiliates as of Sept. 30, 2016 and Dec. 31, 2015, respectively.

4. Income Taxes

Except to the extent noted below, Note 6 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 appropriately represents, in all material respects, the current status of other income tax matters, and are incorporated herein by reference.

Federal Audit— NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. In 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011, including a 2009 carryback claim. As of Sept. 30, 2016, the IRS had proposed an adjustment to the federal tax loss carryback claims that would result in $14 million of income tax expense for the 2009 through 2011 claims, the 2013 through 2014 claims, and the anticipated claim for 2015. In the fourth quarter of 2015, the IRS forwarded the issue to the Office of Appeals (Appeals). In 2016 the IRS audit team and Xcel Energy presented their case to Appeals; however, the outcome and timing of a resolution is uncertain. The statute of limitations applicable to Xcel Energy’s 2009 through 2011 federal income tax returns, following extensions, expires in June 2017. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of the IRS's proposed adjustment of the carryback claims. NSP-Wisconsin is not expected to accrue any income tax expense related to this adjustment. In the third quarter of 2015, the IRS commenced an examination of tax years 2012 and 2013. As of Sept. 30, 2016, the IRS had not proposed any material adjustments to tax years 2012 and 2013.

State Audits— NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of Sept. 30, 2016, NSP-Wisconsin’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2012. In August 2016, Wisconsin began an audit of years 2012 and 2013. As of Sept. 30, 2016, Wisconsin had not proposed any adjustments, and there were no other state income tax audits in progress.

Unrecognized Tax Benefits— The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual effective tax rate (ETR). In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment of cash to the taxing authority to an earlier period.

A reconciliation of the amount of unrecognized tax benefit is as follows:

(Millions of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Unrecognized tax benefit — Permanent tax positions	$	0.3	$	0.2
Unrecognized tax benefit — Temporary tax positions	5.0		4.3
Total unrecognized tax benefit	$	5.3	$	4.5

The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows:

(Millions of Dollars)	Sept. 30, 2016			Dec. 31, 2015
NOL and tax credit carryforwards	$	(1.1	)	$	(0.9	)

9

It is reasonably possible that NSP-Wisconsin’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS Appeals and audit progress, the Wisconsin audit progresses, and other state audits resume. As the IRS Appeals and IRS and Wisconsin audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $2 million.

The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. The payables for interest related to unrecognized tax benefits at Sept. 30, 2016 and Dec. 31, 2015 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of Sept. 30, 2016 or Dec. 31, 2015.

5. Rate Matters

Except to the extent noted below, the circumstances set forth in Note 10 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, and in Note 5 to NSP-Wisconsin's Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016, appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference.

Pending Regulatory Proceedings — Public Service Commission of Wisconsin (PSCW)

Wisconsin 2017 Electric and Gas Rate Case — In April 2016, NSP-Wisconsin filed a request with the PSCW for an increase in annual electric rates of $17.4 million, or 2.4 percent, and an increase in natural gas rates by $4.8 million, or 3.9 percent, effective January 2017.

The electric rate request is for the limited purpose of recovering increases in (1) generation and transmission fixed charges and fuel and purchased power expenses related to the interchange agreement with NSP-Minnesota, and (2) costs associated with forecasted average rate base of $1.188 billion in 2017.

The natural gas rate request is for the limited purpose of recovering expenses related to the ongoing environmental remediation of a former manufactured gas plant (MGP) site and adjacent area in Ashland, Wis.

No changes are being requested to the capital structure or the 10.0 percent return on equity (ROE) authorized by the PSCW in the 2016 rate case. As part of an agreement with stakeholders to limit the size and scope of the case, NSP-Wisconsin also agreed to an earnings cap, solely for 2017, in which 100 percent of the earnings in excess of the authorized ROE would be refunded to customers.

In August 2016, the PSCW Staff (Staff) and the intervenors filed their direct testimony in the case. The Staff recommended an electric rate increase of $19.5 million, or 2.7 percent and a natural gas rate increase of $4.8 million, or 3.9 percent. The Staff adjustments reflect revisions to previously forecasted rate base as well as fuel and purchased power expense. The Staff’s recommended rate increase also encompasses the PSCW’s July 2016 decision to remove the $9.5 million fuel refund credit from the rate case and refund that amount directly to customers in 2016. Adjusting for the treatment of the fuel refund, the Staff’s recommendation is $7.4 million less than NSP-Wisconsin’s request.

On Oct. 26, 2016, the PSCW verbally approved an electric rate increase of approximately $22.5 million, or 3.2 percent, and a natural gas rate increase of $4.8 million, or 3.9 percent. The difference between the Staff’s recommendation and the PSCW’s approved electric increase is attributable to an increase in forecasted fuel and purchased power expense. Consistent with long-standing PSCW policy, these costs were updated prior to the PSCW’s decision to reflect current market forecasts. The PSCW approved NSP-Wisconsin’s requested natural gas rate increase consistent with the Staff’s recommendation.

10

The major components of the retail electric rate increase, the Staff’s recommendation, and the PSCW’s approval are summarized below:

Electric Rate Request (Millions of Dollars)	NSP-Wisconsin Request			Staff Recommendation			Final Decision
Rate base investments	$	11.0		$	7.6		7.6
Generation and transmission expenses (excluding fuel and purchased power) (a)	6.8			6.1			6.1
Fuel and purchased power expenses	11.0			7.7			10.7
Subtotal	28.8			21.4			24.4
2015 fuel refund (b)	(9.5		)	—			—
Department of Energy settlement refund	(1.9		)	(1.9		)	(1.9		)
Total electric rate increase	$	17.4		$	19.5		$	22.5

^(a)  Includes Interchange Agreement billings. The Interchange Agreement is a Federal Energy Regulatory Commission (FERC) tariff under which NSP-Wisconsin and its affiliate, NSP-Minnesota, own and operate a single integrated electric generation and transmission system and both companies pay a pro-rata share of system capital and operating costs. For financial reporting purposes, these expenses are included in operating and maintenance (O&M).

^(b)  In July 2016, the PSCW required NSP-Wisconsin to return the 2015 fuel refund directly to customers, rather than using it to offset the proposed 2017 rate increase, as originally proposed by NSP-Wisconsin. This decision, when combined with the increase in forecasted fuel and purchased power expense, effectively increases NSP-Wisconsin’s requested electric rate increase to $29.9 million, or 4.2 percent.

NSP-Wisconsin anticipates a final written order later this year, with new rates effective on Jan. 1, 2017.

Pending Regulatory Proceedings - Michigan Public Service Commission (MPSC)

Michigan 2017 Natural Gas Rate Case —In October 2016, NSP-Wisconsin filed a request with the MPSC to increase base rates for natural gas service by approximately $347 thousand annually, or 6.5 percent. The filing was based on a 2017 forecast test year, a 10.2 percent ROE, an equity ratio of 52.56 percent and a forecasted average rate base of approximately $6.4 million. The primary driver of the requested increase is investment in natural gas distribution infrastructure, mainly in conjunction with the company’s Distribution Integrity Management Program (DIMP). NSP-Wisconsin also proposed an Infrastructure Cost Recovery Mechanism (ICRM) rate rider to recover ongoing costs associated with the DIMP. In addition, the filing requested recovery of approximately $129 thousand, or 2.4 percent, through the ICRM, beginning in January 2018.  Under the proposal, the ICRM rider would be adjusted annually.

Recently Concluded Regulatory Proceedings — Minnesota Public Utilities Commission (MPUC)

Nuclear Project Prudence Investigation — In 2013, NSP-Minnesota completed the Monticello life cycle management (LCM)/extended power uprate (EPU) project. The multi-year project extended the life of the facility and increased the capacity from 600 to 671 megawatts (MW) in 2015. The Monticello LCM/EPU project expenditures were approximately $665 million. Total capitalized costs were approximately $748 million, which includes allowance for funds used during construction (AFUDC). In 2008, project expenditures were initially estimated at approximately $320 million, excluding AFUDC.

In 2013, the MPUC initiated an investigation to determine whether the final costs for the Monticello LCM/EPU project were prudent. In March 2015, the MPUC voted to allow for full recovery, including a return, on $415 million of the total plant costs (inclusive of AFUDC), but only allow recovery of the remaining $333 million of costs with no return on this portion of the investment over the remaining life of the plant. As a result of these determinations, Xcel Energy recorded an estimated pre-tax loss of $129 million in the first quarter of 2015, after which the remaining book value of the Monticello project represented the present value of the estimated future cash flows. As NSP-Wisconsin shares in the costs of the Monticello plant through the Interchange Agreement with NSP-Minnesota, the MPUC decision also affects NSP-Wisconsin. NSP-Wisconsin’s portion of the $129 million pre-tax loss, recorded in the first quarter of 2015, was approximately $5 million.

Pending Regulatory Proceedings — FERC

Midcontinent Independent System Operator, Inc. (MISO) ROE Complaints/ROE Adder — In November 2013, a group of customers filed a complaint at the FERC against MISO transmission owners (TOs), including NSP-Minnesota and NSP-Wisconsin. The complaint argued for a reduction in the ROE in transmission formula rates in the MISO region from 12.38 percent to 9.15 percent, a prohibition on capital structures in excess of 50 percent equity, and the removal of ROE adders (including those for regional transmission organization (RTO) membership and for being an independent transmission company), effective Nov. 12, 2013.

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In December 2015, an administrative law judge (ALJ) initial decision recommended the FERC approve a ROE of 10.32 percent, which the FERC upheld in an order issued on Sept. 28, 2016. This ROE is applicable for the 15 month refund period from Nov. 12, 2013 to Feb. 11, 2015, and prospectively from the date of the FERC order. The total prospective ROE is 10.82 percent, which includes a previously approved 50 basis point adder for RTO membership.

In February 2015, a second complaint seeking to reduce the MISO region ROE from 12.38 percent to 8.67 percent, prior to any adder was filed, which the FERC set for hearings, resulting in a second period of potential refund from Feb. 12, 2015 to May 11, 2016. The MPUC, the North Dakota Public Service Commission, the South Dakota Public Utilities Commission and the Minnesota Department of Commerce joined a joint complainant/intervenor initial brief recommending an ROE of approximately 8.81 percent. FERC staff recommended a ROE of 8.78 percent. The MISO TOs recommended a ROE of 10.92 percent. On June 30, 2016, the ALJ issued an initial decision recommending a ROE of 9.7 percent, the midpoint of the upper half of the discounted cash flow (DCF) range. A FERC decision is expected in 2017.

As of Sept. 30, 2016, NSP-Minnesota has recognized a current liability for the Nov. 12, 2013 to Feb. 11, 2015 complaint period based on the 10.32 percent ROE provided in the FERC order, as well as a current liability representing the best estimate of the final ROE for the second complaint period.

6. Commitments and Contingencies

Except to the extent noted below and in Note 5 above, the circumstances set forth in Notes 10 and 11 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, and in Note 6 to NSP-Wisconsin’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016, appropriately represent, in all material respects, the current status of commitments and contingent liabilities, and are incorporated herein by reference. The following include commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position.

Guarantees

NSP-Wisconsin provides a guarantee for payment of customer loans related to NSP-Wisconsin’s farm rewiring program. NSP-Wisconsin’s exposure under the guarantee is based upon the net liability under the agreement. The guarantee issued by NSP-Wisconsin has a stated maximum amount. The guarantee contains no recourse provisions and requires no collateral. These agreements have expiration dates through 2020.

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

(Millions of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Guarantee issued and outstanding	$	1.0	$	1.0
Current exposure under this guarantee	0.1		0.1

Environmental Contingencies

Ashland MGP Site — NSP-Wisconsin has been named a potentially responsible party for contamination at a site in Ashland, Wis. The Ashland/Northern States Power Lakefront Superfund Site (the Site) includes NSP-Wisconsin property, previously operated as a MGP facility (the Upper Bluff), and two other properties: an adjacent city lakeshore park area (Kreher Park); and an area of Lake Superior’s Chequamegon Bay adjoining the park (the Sediments).

In 2012, under a settlement agreement with the United States Environmental Protection Agency (EPA), NSP-Wisconsin agreed to remediate the Phase I Project Area (which includes the Upper Bluff and Kreher Park areas of the Site). The current cost estimate for the cleanup of the Phase I Project Area is approximately $71.4 million, of which approximately $52.6 million has been spent.

NSP-Wisconsin performed a wet dredge pilot study in the summer of 2016 and demonstrated that a wet dredge remedy can meet the performance standards for remediation of the Sediments. As a result, the EPA authorized NSP-Wisconsin to extend the wet dredge pilot to additional areas of the Site. Settlement negotiations are ongoing between the EPA and NSP-Wisconsin regarding the performance of the full scale cleanup of the Sediments. If a court-approved settlement can be reached with the EPA, NSP-Wisconsin anticipates a full scale wet dredge remedy of the Sediments could be performed beginning as early as 2017, and potentially conclude by 2018.

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At Sept. 30, 2016 and Dec. 31, 2015, NSP-Wisconsin had recorded a total liability of $84.6 million and $94.4 million, respectively, for the entire site. NSP-Wisconsin’s potential liability, the actual cost of remediation and the timing of expenditures are subject to change. NSP-Wisconsin also continues to work to identify and access state and federal funds to apply to the remediation cost.

NSP-Wisconsin has deferred the unrecovered portion of the estimated Site remediation costs as a regulatory asset. The PSCW has consistently authorized NSP-Wisconsin rate recovery for all remediation costs incurred at the Site. In 2012, the PSCW agreed to allow NSP-Wisconsin to pre-collect certain costs, to amortize costs over a ten-year period, and to apply a three percent carrying cost to the unamortized regulatory asset. In April 2016, NSP-Wisconsin filed a limited natural gas rate case for recovery of additional expenses associated with remediating the Site. If approved, the annual recovery of MGP clean-up costs would increase from $7.6 million in 2016 to $12.4 million in 2017.

Cross-State Air Pollution Rule (CSAPR) — CSAPR addresses long range transport of particulate matter and ozone by requiring reductions in sulfur dioxide and nitrogen oxide (NOx) from utilities in the eastern half of the United States, including Wisconsin, using an emissions trading program.

CSAPR was adopted to address interstate emissions impacting downwind states’ attainment of the 1997 ozone National Ambient Air Quality Standard (NAAQS) and the 1997 and 2006 particulate NAAQS. As the EPA revises the NAAQS, it will consider whether to make any further reductions to CSAPR emission budgets and whether to change which states are included in the emissions trading program. In December 2015, the EPA proposed adjustments to CSAPR emission budgets which address attainment of the more stringent 2008 ozone NAAQS. The EPA adopted a final rule in September 2016 for the ozone season emission budget for NOx which did not materially impact NSP-Wisconsin.

Legal Contingencies

NSP-Wisconsin is involved in various litigation matters that are being defended and handled in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, arising from such current proceedings would have a material effect on NSP-Wisconsin’s financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred.

Employment, Tort and Commercial Litigation

Gas Trading Litigation — e prime, inc. (e prime) is a wholly owned subsidiary of Xcel Energy.  e prime was in the business of natural gas trading and marketing, but has not engaged in natural gas trading or marketing activities since 2003.  Thirteen lawsuits were commenced against e prime and Xcel Energy (and NSP-Wisconsin, in two instances) between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices.

The cases were consolidated in U.S. District Court in Nevada. Five of the cases have since been settled and seven have been dismissed.  One multi-district litigation (MDL) matter remains and it consists of a Colorado class (Breckenridge), a Wisconsin class (NSP-Wisconsin), a Kansas class, and two other cases identified as “Sinclair Oil” and “Farmland.” In May 2016, the MDL judge granted summary judgment dismissing defendants from the Farmland lawsuit. e prime and Xcel Energy have filed a motion seeking clarification that this order includes them. This motion is currently pending and is expected to be heard in December 2016. The e prime defendants filed a summary judgment motion in the Colorado class lawsuit (Breckenridge) and oppositions to class certifications in all the class actions, which is also expected to be heard in December 2016. Trial dates are not expected to occur prior to early 2017. Xcel Energy, NSP-Wisconsin and e prime have concluded that a loss is remote.

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7. Borrowings and Other Financing Instruments

Commercial Paper — NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility. Commercial paper outstanding for NSP-Wisconsin was as follows:

(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2016			Year Ended Dec. 31, 2015
Borrowing limit	$	150		$	150
Amount outstanding at period end	4			10
Average amount outstanding	6			39
Maximum amount outstanding	23			122
Weighted average interest rate, computed on a daily basis	0.60		%	0.44		%
Weighted average interest rate at period end	0.60			0.70

Letters of Credit— NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At Sept. 30, 2016 and Dec. 31, 2015, there were no letters of credit outstanding.

Credit Facility — In order to use its commercial paper program, NSP-Wisconsin must have a credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper in an aggregate amount exceeding available credit facility capacity. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

At Sept. 30, 2016, NSP-Wisconsin had the following committed credit facility available (in millions of dollars):

Credit Facility (a)		Drawn(b)		Available
$	150	$	4	$	146

^(a)  This credit facility expires in June 2021.

^(b)  Includes outstanding commercial paper.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at Sept. 30, 2016 and Dec. 31, 2015.

Amended Credit Agreements - In June 2016, NSP-Wisconsin entered into an amended five-year credit agreement with a syndicate of banks. The total borrowing limit under the amended credit agreement remained at $150 million. The amended credit agreement has substantially the same terms and conditions as the prior credit agreement with the following exceptions:

• The maturity extended from October 2019 to June 2021.

• The Eurodollar borrowing margins on these lines of credit were reduced to a range of 75 to 150 basis points per year, from a range of 87.5 to 175 basis points per year, based upon applicable long-term credit ratings.

• The commitment fees, calculated on the unused portion of the lines of credit, were reduced to a range of 6 to 22.5 basis points per year, from a range of 7.5 to 27.5 basis points per year, also based on applicable long-term credit ratings.

NSP-Wisconsin has the right to request an extension of the revolving credit facility termination date for an additional one-year period, subject to majority bank group approval.

Other Short-Term Borrowings— The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.:

(Amounts in Millions, Except Interest Rates)	Sept. 30, 2016			Dec. 31, 2015
Notes payable to affiliates	$	0.5		$	0.5
Weighted average interest rate at period end	0.77		%	0.87		%

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8. Fair Value of Financial Assets and Liabilities

Fair Value Measurements

The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value.  A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows:

Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the measurement date.  The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices.

Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date.  The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.

Level 3 — Significant inputs to pricing have little or no observability as of the reporting date.  The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation.

Specific valuation methods include the following:

Cash equivalents— The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted prices.

Interest rate derivatives— The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts.

Commodity derivatives— The methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2.  When contractual settlements extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable forecasts of long-term forward prices and volatilities on a valuation is evaluated, and may result in Level 3 classification.

Derivative Instruments Fair Value Measurements

NSP-Wisconsin enters into derivative instruments, including forward contracts, futures, swaps and options for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices.

Interest Rate Derivatives — NSP-Wisconsin enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period.  These derivative instruments are generally designated as cash flow hedges for accounting purposes.

At Sept. 30, 2016, accumulated other comprehensive loss related to interest rate derivatives included $0.1 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable.

Commodity Derivatives — NSP-Wisconsin may enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of natural gas to generate electric energy and natural gas for resale.

The following table details the gross notional amounts of commodity options at Sept. 30, 2016 and Dec. 31, 2015:

(Amounts in Thousands)(a)(b)	Sept. 30, 2016	Dec. 31, 2015
Million British thermal units of natural gas	284	388

^(a)  Amounts are not reflective of net positions in the underlying commodities.

^(b)  Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.

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Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — There were immaterial pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings during the three months ended Sept. 30, 2016 and 2015, and $0.1 million of net losses reclassified from accumulated other comprehensive loss into earnings during the nine months ended Sept. 30, 2016 and 2015.

During the three and nine months ended Sept. 30, 2016, changes in the fair value of natural gas commodity derivatives resulted in net losses of $0.1 million and $0.2 million recognized as regulatory assets and liabilities, respectively. For the three and nine months ended Sept. 30, 2015, changes in the fair value of natural gas commodity derivatives resulted in immaterial and $0.1 million of net losses recognized as regulatory assets and liabilities, respectively. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms.

Natural gas commodity derivatives settlement losses of $0.6 million and $1.0 million were recognized for the nine months ended Sept. 30, 2016 and 2015, respectively, and were subject to purchased natural gas cost recovery mechanisms, which result in reclassifications of derivative settlement gains and losses out of income to a regulatory asset or liability, as appropriate. There were no natural gas commodity derivatives settlement losses recognized during the three months ended Sept. 30, 2016 and 2015, respectively.

NSP-Wisconsin had no derivative instruments designated as fair value hedges during the three and nine months ended Sept. 30, 2016 and 2015. Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods.

Consideration of Credit Risk and Concentrations—NSP-Wisconsin monitors the creditworthiness of the counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions. Given this assessment, as well as an assessment of the impact of NSP-Wisconsin’s own credit risk when determining the fair value of derivative liabilities, the impact of considering credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets.

NSP-Wisconsin employs additional credit risk control mechanisms, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided.

Recurring Fair Value Measurements — The following tables present for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis:

	Sept. 30, 2016
	Fair Value						Fair Value Total		Counterparty Netting(a)		Total(b)
(Thousands of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	114	$	—	$	114	$	—	$	114

	Dec. 31, 2015
	Fair Value						Fair Value Total		Counterparty Netting(a)			Total(c)
(Thousands of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	15	$	—	$	15	$	(11	)	$	4
Total current derivative assets	$	—	$	15	$	—	$	15	$	(11	)	$	4
Current derivative liabilities
Natural gas commodity	$	—	$	194	$	—	$	194	$	(11	)	$	183
Total current derivative liabilities	$	—	$	194	$	—	$	194	$	(11	)	$	183

^(a)  NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2016 and Dec. 31, 2015.  The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

^(b)  Included in other current assets balance of $3.2 million at Sept. 30, 2016, in the consolidated balance sheets.

^(c)  Included in other current assets balance of $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets.

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Fair Value of Long-Term Debt

As of Sept. 30, 2016 and Dec. 31, 2015, other financial instruments for which the carrying amount did not equal fair value were as follows:

	Sept. 30, 2016				Dec. 31, 2015
(Thousands of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion (a)	$	662,934	$	781,939	$	662,449	$	742,565

^(a)  Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03.

The fair value of NSP-Wisconsin’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of Sept. 30, 2016 and Dec. 31, 2015, and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2.

9. Other (Expense) Income, Net

Other (expense) income, net consisted of the following:

	Three Months Ended Sept. 30						Nine Months Ended Sept. 30
(Thousands of Dollars)	2016			2015			2016			2015
Interest (expense) income	$	(73	)	$	11		$	65		$	299
Other nonoperating income	33			72			299			202
Insurance policy (expense) income	(58		)	20			70			(109		)
Other nonoperating expense	(4		)	(3		)	(10		)	(8		)
Other (expense) income, net	$	(102	)	$	100		$	424		$	384

10. 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, transmits and distributes electricity primarily in portions of Wisconsin and Michigan. 

• NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas primarily 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 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 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.

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(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other			Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2016
Operating revenues (a)	$	232,216	$	13,646		$	282		$	—		$	246,144
Intersegment revenues	110		97			—			(207		)	—
Total revenues	$	232,326	$	13,743		$	282		$	(207	)	$	246,144
Net income (loss)	$	25,459	$	(1,201	)	$	(37	)	$	—		$	24,221

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other			Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2015
Operating revenues (a)	$	224,666	$	11,088		$	407		$	—		$	236,161
Intersegment revenues	101		177			—			(278		)	—
Total revenues	$	224,767	$	11,265		$	407		$	(278	)	$	236,161
Net income (loss)	$	28,285	$	(1,993	)	$	(60	)	$	—		$	26,232

^(a)  Operating revenues include $44 million and $42 million of affiliate electric revenue for the three months ended Sept. 30, 2016 and 2015, respectively.

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2016
Operating revenues (a)	$	646,619	$	72,671	$	877		$	—		$	720,167
Intersegment revenues	317		299		—			(616		)	—
Total revenues	$	646,936	$	72,970	$	877		$	(616	)	$	720,167
Net income	$	52,058	$	2,426	$	(7	)	$	—		$	54,477

(Thousands of Dollars)	Regulated Electric			Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2015
Operating revenues (a)	$	634,571		$	91,273	$	1,090		$	—		$	726,934
Intersegment revenues	308			475		—			(783		)	—
Total revenues	$	634,879		$	91,748	$	1,090		$	(783	)	$	726,934
Net income (loss)	$	57,586	(b)	$	3,714	$	(289	)	$	—		$	61,011

^(a)  Operating revenues include $127 million and $121 million of affiliate electric revenue for the nine months ended Sept. 30, 2016 and 2015, respectively.

^(b)  Includes a net of tax charge related to the Monticello LCM/EPU project.  See Note 5.

11. Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost

	Three Months Ended Sept. 30
	2016			2015			2016			2015
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Service cost	$	1,104		$	1,190		$	6		$	7
Interest cost	1,704			1,630			163			164
Expected return on plan assets	(2,289		)	(2,371		)	(6		)	(8		)
Amortization of prior service cost (credit)	28			27			(88		)	(87		)
Amortization of net loss	1,348			1,701			83			114
Net benefit cost recognized for financial reporting	$	1,895		$	2,177		$	158		$	190

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	Nine Months Ended Sept. 30
	2016			2015			2016			2015
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Service cost	$	3,312		$	3,570		$	18		$	21
Interest cost	5,112			4,890			489			490
Expected return on plan assets	(6,867		)	(7,113		)	(18		)	(23		)
Amortization of prior service cost (credit)	84			83			(264		)	(263		)
Amortization of net loss	4,044			5,103			249			342
Net benefit cost recognized for financial reporting	$	5,685		$	6,533		$	474		$	567

In January 2016, contributions of $125.0 million were made across four of Xcel Energy’s pension plans, of which $7.4 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2016.

12. Other Comprehensive Income

Changes in accumulated other comprehensive loss, net of tax, for the three and nine months ended Sept. 30, 2016 and 2015 were as follows:

	Gains and Losses on Cash Flow Hedges
(Thousands of Dollars)	Three Months Ended Sept. 30, 2016			Three Months Ended Sept. 30, 2015
Accumulated other comprehensive loss at July 1	$	(171	)	$	(247	)
Losses reclassified from net accumulated other comprehensive loss	19			19
Net current period other comprehensive income	19			19
Accumulated other comprehensive loss at Sept. 30	$	(152	)	$	(228	)

	Gains and Losses on Cash Flow Hedges
(Thousands of Dollars)	Nine Months Ended Sept. 30, 2016			Nine Months Ended Sept. 30, 2015
Accumulated other comprehensive loss at Jan. 1	$	(209	)	$	(285	)
Losses reclassified from net accumulated other comprehensive loss	57			57
Net current period other comprehensive income	57			57
Accumulated other comprehensive loss at Sept. 30	$	(152	)	$	(228	)

Reclassifications from accumulated other comprehensive loss for the three and nine months ended Sept. 30, 2016 and 2015 were as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
(Thousands of Dollars)	Three Months Ended Sept. 30, 2016				Three Months Ended Sept. 30, 2015
Losses on cash flow hedges:
Interest rate derivatives	$	32		(a)	$	32		(a)
Total, pre-tax	32				32
Tax benefit	(13		)		(13		)
Total amounts reclassified, net of tax	$	19			$	19

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	Amounts Reclassified from Accumulated Other Comprehensive Loss
(Thousands of Dollars)	Nine Months Ended Sept. 30, 2016				Nine Months Ended Sept. 30, 2015
Losses on cash flow hedges:
Interest rate derivatives	$	95		(a)	$	94		(a)
Total, pre-tax	95				94
Tax benefit	(38		)		(37		)
Total amounts reclassified, net of tax	$	57			$	57

^(a)  Included in interest charges.

Item 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Discussion of financial condition and liquidity for NSP-Wisconsin is omitted per conditions set forth in general instructions H (1) (a) and (b) of Form 10-Q for wholly owned subsidiaries. It is replaced with management’s narrative analysis of the results of operations set forth in general instructions H (2) (a) of Form 10-Q for wholly owned subsidiaries (reduced disclosure format).

Financial Review

The following discussion and analysis by management focuses on those factors that had a material effect on NSP-Wisconsin’s financial condition, results of operations and cash flows during the periods presented, or are expected to have a material impact in the future. It should be read in conjunction with the accompanying unaudited consolidated financial statements and related notes to the consolidated financial statements. Due to the seasonality of NSP-Wisconsin’s electric and natural gas sales, such interim results are not necessarily an appropriate base from which to project annual results.

Forward-Looking Statements

Except for the historical statements contained in this report, the matters discussed herein, are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed elsewhere in this Quarterly Report on Form 10-Q and in other securities filings (including NSP-Wisconsin’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016), could cause actual results to differ materially from management expectations as suggested by such forward-looking information: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of NSP-Wisconsin and its subsidiaries to obtain financing on favorable terms; business conditions in the energy industry; including the risk of a slow down in the U.S. economy or delay in growth, recovery, trade, fiscal, taxation and environmental policies in areas where NSP-Wisconsin has a financial interest; customer business conditions; actions of credit rating agencies; competitive factors including the extent and timing of the entry of additional competition in the markets served by NSP-Wisconsin and its subsidiaries; unusual weather; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; financial or regulatory accounting policies imposed by regulatory bodies; outcomes of regulatory proceedings; availability of cost of capital; and employee work force factors.

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Results of Operations

NSP-Wisconsin’s net income was $54.5 million for the nine months ended Sept. 30, 2016 compared with $61.0 million for the same period in 2015. The impact of the 2015 Monticello LCM/EPU project loss along with higher electric margins primarily driven by an electric rate increase were more than offset by higher O&M expenses and depreciation. See Note 5 to the consolidated financial statements for further discussion of the Monticello LCM/EPU project loss.

Electric Revenues and Margin

Electric production expenses tend to vary with the quantity of electricity sold and changes in the unit costs of fuel and purchased power. The electric fuel and purchased power cost recovery mechanism of the Wisconsin jurisdiction may not allow for complete recovery of all expenses and, therefore, changes in fuel or purchased power costs can impact earnings. The following table details the electric revenues and margin:

	Nine Months Ended Sept. 30
(Millions of Dollars)	2016			2015
Electric revenues	$	647		$	635
Electric fuel and purchased power	(323		)	(324		)
Electric margin	$	324		$	311

The following tables summarize the components of the changes in electric revenues and electric margin for the nine months ended

Sept. 30:

Electric Revenues

(Millions of Dollars)	2016 vs. 2015
Retail rate increases (Wisconsin)	$	23
Interchange agreement billings with NSP-Minnesota	7
Fuel and purchased power cost recovery	(19		)
Other, net	1
Total increase in electric revenues	$	12

Electric Margin

(Millions of Dollars)	2016 vs. 2015
Retail rate increases (Wisconsin)	$	23
Interchange agreement billings with NSP-Minnesota	(7		)
Fuel cost recovery	(7		)
Other, net	4
Total increase in electric margin	$	13

Natural Gas Revenues and Margin

Total natural gas expense tends to vary with changing sales requirements and the cost of natural gas purchases. However, due to the design of purchased natural gas cost recovery mechanisms to recover current expenses for sales to retail customers, fluctuations in the cost of natural gas have little effect on natural gas margin. The following table details the natural gas revenues and margin:

	Nine Months Ended Sept. 30
(Millions of Dollars)	2016			2015
Natural gas revenues	$	73		$	91
Cost of natural gas sold and transported	(36		)	(55		)
Natural gas margin	$	37		$	36

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The following tables summarize the components of the changes in natural gas revenues and natural gas margin for the nine months ended Sept. 30:

Natural Gas Revenues

(Millions of Dollars)	2016 vs. 2015
Purchased natural gas adjustment clause recovery	$	(19	)
Estimated impact of weather	(2		)
Retail rate increases	3
Total decrease in natural gas revenues	$	(18	)

Natural Gas Margin

(Millions of Dollars)	2016 vs. 2015
Retail rate increases (Wisconsin)	$	3
Estimated impact of weather	(2		)
Total increase in natural gas margin	$	1

Non-Fuel Operating Expenses and Other Items

O&M Expenses — O&M expenses increased$14.2 million, or 10.6 percent, for the nine months ended Sept. 30, 2016 compared with the same period in 2015. The increase was primarily due to interchange agreement billings with NSP-Minnesota related to timing of transmission projects.

Depreciation and Amortization — Depreciation and amortization increased $6.0 million, or 8.9 percent, for the nine months ended Sept. 30, 2016 compared with the same period in 2015. The increase was primarily attributable to capital investments.

Income Taxes — Income tax expense decreased $2.2 million for the nine months ended Sept. 30, 2016 compared with the same period in 2015. The decrease in income tax expense was primarily due to lower pretax earnings in 2016 partially offset by decreased permanent plant-related adjustments (e.g., AFUDC-equity) in 2016. The ETR was 38.4 percent for the nine months ended Sept. 30, 2016 compared with 37.2 percent for the same period in 2015. The higher ETR in 2016 is primarily due to the adjustments referenced above.

Public Utility Regulation

Except to the extent noted below, the circumstances set forth in Public Utility Regulation included in Item 1. of NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, and Public Utility Regulation included in Item 2 of NSP-Wisconsin’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016, appropriately represent, in all material respects, the current status of public utility regulation, and are incorporated herein by reference.

NSP Resource Plans — In January 2015, NSP-Minnesota filed its 2016-2030 Integrated Resource Plan (the Plan) with the MPUC.

Subsequently, NSP-Minnesota proposed revisions to the Plan, which addressed stakeholder recommendations as well as the Clean Power Plan issued by the EPA. The revised plan was based on four primary elements: (1) accelerate the transition from coal energy to renewables, (2) preserve regional system reliability, (3) pursue energy efficiency gains and grid modernization, and (4) ensure customer benefits. The revised plan includes substantial opportunities for NSP-Minnesota ownership of renewable generation, and would result in 63 percent of NSP System energy being carbon-free by 2030 and a 60 percent reduction in carbon emissions from 2005 levels by 2030.

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Specific terms of the proposal include:

• The addition of 1,800 MW of wind and 1,400 MW of solar between 2016-2030, including approximately 650 MW of solar from NSP-Minnesota’s community solar gardens program by 2020;

• The retirement of Sherco Unit 2 in 2023 and Sherco Unit 1 in 2026;

• Partial replacement of Sherco coal generation with a 786 MW natural gas combined cycle unit at the Sherco site to coincide with the Unit 1 retirement;

• The addition of a 230 MW natural gas combustion turbine in North Dakota by the end of 2025;

• Operation of the Monticello and PI nuclear plants through their current license periods in the early 2030’s - and a commitment to provide additional information regarding forecasted cost increases at PI through end of licensed life if the MPUC wishes to further explore alternatives to operating PI through its current license periods.

In October 2016, the MPUC verbally approved NSP-Minnesota’s plan, with modifications as follows:

• The acquisition of at least 1,000 MW of wind by 2019, with additional acquisitions dependent on considerations such as price, bidder qualifications, rate impact, transmission availability and location;

• The acquisition of 650 MW of solar before 2021 through the community solar gardens program or other acquisitions - and pursuit of additional, cost-effective solar resources if it is in the best interests of its customers;

• Determination of the proper mix of purchased power and Company-owned renewable resources shall be made during the resource acquisition process;

• Retirement of Sherco Unit 2 in 2023 and Sherco Unit 1 in 2026, and a finding that more likely than not, there will be a need for approximately 750 MW of capacity coinciding with the retirement of Sherco Unit 1 in 2026;

• Authorization for NSP-Minnesota to file a petition for a certificate of need to select the resource that best meets the system resource and local reliability needs associated with the retirement of Sherco Unit 1 in 2026;

• Acquisition of no less than 400 MW of additional demand response by 2023; and

• Submission of NSP-Minnesota’s next Resource Plan by February 2019.

The MPUC’s order on NSP-Minnesota’s Resource Plan is expected in late 2016.

NSP-Minnesota – Request for Proposal (RFP) —In September 2016, NSP-Minnesota issued a RFP for 1,500 MW of wind generation to be in service by 2020.  The RFP requests both purchased power agreements and Build-Own-Transfer proposals.  NSP-Minnesota intends to compare self-build options to the RFP bids to ensure that all resource additions are cost-competitive.

In October 2016, NSP-Minnesota submitted a petition for approval to the MPUC of a 750 MW self-build wind farm portfolio. RFP bids were received in October 2016 and will be evaluated in conjunction with the self-build proposal.

An overview of the anticipated RFP schedule is as follows:

• Project proposal selection and negotiation will occur from November 2016 to March 2017;

• An NSP-Minnesota recommendation for proposed wind additions to the MPUC in the first quarter of 2017; and

• MPUC approval is expected by July 2017.

2016 Electric Fuel Cost Recovery — NSP-Wisconsin’s electric fuel costs for the nine months ended Sept. 30, 2016 were lower than authorized in rates and outside the two percent annual tolerance band established in the Wisconsin fuel cost recovery rules. Under the fuel cost recovery rules, NSP-Wisconsin may retain the amount of over-recovery up to two percent of authorized annual fuel costs, or approximately $3.5 million. However, NSP-Wisconsin must defer the amount of over-recovery in excess of the two percent annual tolerance band for future refund to customers. Accordingly, NSP-Wisconsin recorded a deferral of approximately $6.6 million through Sept. 30, 2016. The amount of the deferral could increase or decrease based on actual fuel costs incurred for the remainder of the year. In the first quarter of 2017 NSP-Wisconsin will file a reconciliation of 2016 fuel costs with the PSCW. The amount of any potential refund is subject to review and approval by the PSCW, which is not expected until mid-2017.

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Summary of Recent Federal Regulatory Developments

The Pipeline and Hazardous Materials Safety Administration

Pipeline Safety Act — The Pipeline Safety, Regulatory Certainty, and Job Creation Act (Pipeline Safety Act) requires additional verification of pipeline infrastructure records by pipeline owners and operators to confirm the maximum allowable operating pressure of lines located in high consequence areas or more-densely populated areas.  In April 2016, the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) released proposed rules that address this verification requirement along with a number of other significant changes to gas transmission regulations.  These changes include requirements around use of automatic or remote-controlled shut-off valves; testing of certain previously untested transmission lines; and expanding integrity management requirements. The Pipeline Safety Act also includes a maximum penalty for violating pipeline safety rules of $2 million per day for related violations. 

NSP-Wisconsin continues to analyze the proposed rule changes as they relate to costs, current operations and financial results.  PHMSA has indicated that they intend for the rules to go into effect in late 2017 or early 2018. 

While NSP-Wisconsin cannot predict the ultimate impact Pipeline Safety Act will have on its costs, operations or financial results, it is taking actions that are intended to comply with the Pipeline Safety Act and any related PHMSA regulations as they become effective.

FERC

The FERC has jurisdiction over rates for electric transmission service in interstate commerce and electricity sold at wholesale, hydro facility licensing, natural gas transportation, asset transactions and mergers, accounting practices and certain other activities of NSP-Wisconsin, including enforcement of North American Electric Reliability Corporation mandatory electric reliability standards. State and local agencies have jurisdiction over many of NSP-Wisconsin’s activities, including regulation of retail rates and environmental matters. See additional discussion in the summary of recent federal regulatory developments and public utility regulation sections of the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015 and Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016. In addition to the matters discussed below, see Note 5 to the consolidated financial statements for a discussion of other regulatory matters.

FERC Order, New ROE Policy — The FERC has adopted a new two-step ROE methodology for electric utilities. The issue of how to apply the new FERC ROE methodology is being contested in various complaint proceedings. There are two ROE complaints against the MISO TOs, which include NSP-Minnesota and NSP-Wisconsin. In September 2016, the FERC issued an order in the first MISO ROE complaint which upheld the initial decision made by the ALJ in December 2015. The second complaint is pending FERC action after issuance of an initial decision by the ALJ in June 2016. FERC is not expected to issue an order in the second litigated MISO ROE complaint proceeding until 2017. See Note 5 to the consolidated financial statements for discussion of the MISO ROE Complaints.

Formula Rate Treatment of Accumulated Deferred Income Taxes (ADIT) — In 2015, NSP-Minnesota and NSP-Wisconsin filed changes to their transmission formula rates to comply with IRS guidance regarding how ADIT must be reflected in formula rates using future test years and a true-up. The filings were intended to ensure that NSP-Minnesota and NSP-Wisconsin are in compliance with IRS rules and may continue to use accelerated tax depreciation. In December 2015, the FERC partially accepted the proposed NSP-Minnesota and NSP-Wisconsin transmission formula rate changes, but rejected changes regarding the treatment of ADIT in the formula rate true-up. In September 2016, FERC issued an order clarifying that NSP-Minnesota and NSP-Wisconsin may incorporate ADIT true-up provisions in their formula rate. However, submission of a new tariff change filing is required to implement the change. NSP-Minnesota and NSP-Wisconsin expect to file a change to their transmission formula rate in the fourth quarter of 2016 and will request a Jan. 1, 2016 effective date.

Southwest Power Pool, Inc. (SPP) and MISO Complaints Regarding RTO Joint Operating Agreement (JOA) —SPP and MISO were involved in a long-running dispute regarding the interpretation of their JOA, which is intended to coordinate RTO operations along the MISO/SPP system boundary. SPP and MISO disagreed over MISO’s authority to transmit power between the traditional MISO region in the Midwest and the Entergy system. Several cases were filed with the FERC by MISO and SPP between 2011 and 2014.

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In January 2016, the FERC approved a settlement between SPP, MISO and other parties that resolves various disputed matters and provides a defined settlement compensation plan by MISO to SPP. MISO will pay SPP $16 million for the two-year retroactive period (February 2014 to January 2016) and $16 million annually prospectively starting Feb. 1, 2016, subject to a true-up. In January 2016, SPP filed a proposal regarding distribution of the MISO revenues to SPP members, including SPS. In March 2016, the FERC issued an order rejecting one component of the SPP filing, accepting the remainder of the SPP tariff proposal subject to refund. In August 2016, MISO and other parties filed a settlement regarding the April 2014 MISO tariff change filing to recover SPP JOA charges in MISO rates. The settlement is pending FERC approval. NSP-Minnesota and NSP-Wisconsin expect to be able to recover any resulting MISO charges in retail rates. The JOA revenue allocated to SPS under the filed SPP proposal was not expected to be material.

Item 4 — CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

NSP-Wisconsin maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. In addition, the disclosure controls and procedures ensure that information required to be disclosed is accumulated and communicated to management, including the chief executive officer (CEO) and chief financial officer (CFO), allowing timely decisions regarding required disclosure. As of Sept. 30, 2016, based on an evaluation carried out under the supervision and with the participation of NSP-Wisconsin’s management, including the CEO and CFO, of the effectiveness of its disclosure controls and the procedures, the CEO and CFO have concluded that NSP-Wisconsin’s disclosure controls and procedures were effective.

Internal Control Over Financial Reporting

Effective January 2016, NSP-Wisconsin implemented the general ledger modules of a new enterprise resource planning (ERP) system to improve certain financial and related transaction processes. During 2016 and 2017, NSP-Wisconsin will continue implementing additional modules and expects to begin conversion of existing work management systems to this new ERP system. In connection with this ongoing implementation, NSP-Wisconsin has updated and will continue updating its internal control over financial reporting, as necessary, to accommodate modifications to its business processes and accounting procedures. NSP-Wisconsin does not expect the implementation of the additional modules to materially affect its internal control over financial reporting.

No changes in NSP-Wisconsin’s internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, NSP-Wisconsin’s internal control over financial reporting.

Part II — OTHER INFORMATION

Item 1 — LEGAL PROCEEDINGS

NSP-Wisconsin is involved in various litigation matters that are being defended and handled in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss.

Additional Information

See Note 6 to the consolidated financial statements for further discussion of legal claims and environmental proceedings. See Note 5 to the consolidated financial statements for a discussion of proceedings involving utility rates and other regulatory matters.

Item 1A — RISK FACTORS

NSP-Wisconsin’s risk factors are documented in Item 1A of Part I of its Annual Report on Form 10-K for the year ended Dec. 31, 2015, which is incorporated herein by reference. There have been no material changes from the risk factors previously disclosed in the Form 10-K.

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Item 4 — MINE SAFETY DISCLOSURES

None.

Item 5 — OTHER INFORMATION

None.

Item 6 — EXHIBITS

*	Indicates incorporation by reference
+	Executive Compensation Arrangements and Benefit Plans Covering Executive Officers and Directors

3.01*	Amended and Restated Articles of Incorporation of NSP-Wisconsin (Exhibit 3.01 to Form S-4 (file no. 333-112033) dated Jan. 21, 2004).
3.02*	By-Laws of Northern States Power Co. (a Wisconsin corporation) as Amended and Restated on Sept. 26, 2013. (Exhibit 3.02 to Form 10-Q/A for the quarter ended Sept. 30, 2013 (file no. 001-03140)).
10.01*+	Third Amendment dated Sept. 30, 2016 to the Xcel Energy Inc. Nonqualified Deferred Compensation Plan (2009 Restatement) (Exhibit 10.01 to Form 10-Q of Xcel Energy dated Oct. 28, 2016 (file no. 001-03034)).
31.01	Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.01	Statement pursuant to Private Securities Litigation Reform Act of 1995.
101	The following materials from NSP-Wisconsin’s Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2016 are formatted in XBRL (eXtensible Business Reporting Language):  (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Balance Sheets, (v) Notes to Consolidated Financial Statements, and (vi) document and entity information.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Northern States Power Company (a Wisconsin corporation)
Oct. 31, 2016	By:	/s/ JEFFREY S. SAVAGE
		Jeffrey S. Savage
		Senior Vice President, Controller
		(Principal Accounting Officer)
		/s/ ROBERT C. FRENZEL
		Robert C. Frenzel
		Executive Vice President, Chief Financial Officer and Director
		(Principal Financial Officer)

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EX-31.01

Exhibit 31.01

CERTIFICATION

I, Ben Fowke, certify that:

1. I have reviewed this report on Form 10-Q of Northern States Power Company (a Wisconsin corporation);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: Oct. 31, 2016

/s/ BEN FOWKE

Ben Fowke

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

1

EX-31.02

Exhibit 31.02

CERTIFICATION

I, Robert C. Frenzel, certify that:

1. I have reviewed this report on Form 10-Q of Northern States Power Company (a Wisconsin corporation);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: Oct. 31, 2016

/s/ ROBERT C. FRENZEL

Robert C. Frenzel

Executive Vice President, Chief Financial Officer and Director

(Principal Financial Officer)

2

EX-32.01

Exhibit 32.01

OFFICER CERTIFICATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Northern States Power Company, a Wisconsin Corporation (NSP-Wisconsin) on Form 10-Q for the quarter ended Sept. 30, 2016, as filed with the SEC on the date hereof (Form 10-Q), each of the undersigned officers of NSP-Wisconsin certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NSP-Wisconsin as of the dates and for the periods expressed in the Form 10-Q.

Date: Oct. 31, 2016

/s/ BEN FOWKE

Ben Fowke

Chairman, Chief Executive Officer and Director

(Principal Executive Officer)

/s/ ROBERT C. FRENZEL

Robert C. Frenzel

Executive Vice President, Chief Financial Officer and Director

(Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to NSP-Wisconsin and will be retained by NSP-Wisconsin and furnished to the SEC or its staff upon request.

1

EX-99.01

Exhibit 99.01

NSP-Wisconsin Cautionary Factors

The Private Securities Litigation Reform Act provides a “safe harbor” for forward-looking statements to encourage disclosures without the threat of litigation, providing those statements are identified as forward-looking and are accompanied by meaningful, cautionary statements identifying important factors that could cause the actual results to differ materially from those projected in the statement. Forward-looking statements are made in written documents and oral presentations of NSP-Wisconsin, Xcel Energy Inc. or any of its other subsidiaries. These statements are based on management’s beliefs as well as assumptions and information currently available to management.  Such forward-looking statements are intended to be identified in this document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” and similar expressions.  In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause NSP-Wisconsin’s actual results to differ materially from those contemplated in any forward-looking statements include, among others, the following:

• Economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures;

• The risk of a significant slowdown in growth or decline in the U.S. economy, the risk of delay in growth recovery in the U.S. economy or the risk of increased cost for insurance premiums, security and other items as a consequence of past or future terrorist attacks;

• Trade, monetary, fiscal, taxation and environmental policies of governments, agencies and similar organizations in geographic areas where NSP-Wisconsin has a financial interest;

• Customer business conditions, including demand for their products or services and supply of labor and materials used in creating their products and services;

• Financial or regulatory accounting principles or policies imposed by the FASB, the SEC, the FERC and similar entities with regulatory oversight;

• Availability or cost of capital such as changes in: interest rates; market perceptions of the utility industry, NSP-Wisconsin, Xcel Energy Inc. or any of its other subsidiaries; or security ratings;

• Factors affecting utility and nonutility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages, maintenance or repairs; unanticipated changes to fossil fuel, nuclear fuel or natural gas supply costs or availability due to higher demand, shortages, transportation problems or other developments; nuclear or environmental incidents; cyber incidents; or electric transmission or natural gas pipeline constraints;

• Employee workforce factors, including loss or retirement of key executives, collective-bargaining agreements with union employees, or work stoppages;

• Increased competition in the utility industry or additional competition in the markets served by NSP-Wisconsin, Xcel Energy Inc. and its other subsidiaries;

• State, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures and affect the speed and degree to which competition enters the electric and natural gas markets; industry restructuring initiatives; transmission system operation and/or administration initiatives; recovery of investments made under traditional regulation; nature of competitors entering the industry; retail wheeling; a new pricing structure; and former customers entering the generation market;

• Environmental laws and regulations, including legislation and regulations relating to climate change, and the associated cost of  compliance;

• Rate-setting policies or procedures of regulatory entities, including environmental externalities, which are values established by regulators assigning environmental costs to each method of electricity generation when evaluating generation resource options;

• Nuclear regulatory policies and procedures, including operating regulations and spent nuclear fuel storage;

• Social attitudes regarding the utility and power industries;

• Cost and other effects of legal and administrative proceedings, settlements, investigations and claims;

• Technological developments that result in competitive disadvantages and create the potential for impairment of existing assets;

• Risks associated with implementations of new technologies; and

• Other business or investment considerations that may be disclosed from time to time in NSP-Wisconsin’s SEC filings, including “Risk Factors” in Item 1A of NSP-Wisconsin’s Form 10-K for the year ended Dec. 31, 2015, or in other publicly disseminated written documents.

NSP-Wisconsin undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  The foregoing review of factors should not be construed as exhaustive.

1

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	NORTHERN STATES POWER CO /WI/
Entity Central Index Key	0000072909
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		933,000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues
Electric	$ 232,216	$ 224,666	$ 646,619	$ 634,571
Natural gas	13,646	11,088	72,671	91,273
Other	282	407	877	1,090
Total operating revenues	246,144	236,161	720,167	726,934
Operating expenses
Electric fuel and purchased power, non-affiliates	4,238	2,624	11,870	5,066
Purchased power, affiliates	105,734	102,297	311,301	318,542
Cost of natural gas sold and transported	6,081	4,375	35,964	54,933
Operating and maintenance expenses	49,235	46,292	148,370	134,126
Conservation program expenses	3,308	2,977	9,468	8,821
Depreciation and amortization	24,700	23,019	72,869	66,908
Taxes (other than income taxes)	6,506	7,045	20,757	21,151
Loss on Monticello life cycle management/extended power uprate project	0	0	0	5,237
Total operating expenses	199,802	188,629	610,599	614,784
Operating income	46,342	47,532	109,568	112,150
Other (expense) income, net	(102)	100	424	384
Allowance for funds used during construction — equity	1,241	1,929	2,969	5,926
Interest charges and financing costs
Interest charges — includes other financing costs of $465, $461, $1,388 and $1,273, respectively	8,613	8,625	25,800	24,152
Allowance for funds used during construction — debt	(525)	(931)	(1,264)	(2,865)
Total interest charges and financing costs	8,088	7,694	24,536	21,287
Income before income taxes	39,393	41,867	88,425	97,173
Income taxes	15,172	15,635	33,948	36,162
Net income	$ 24,221	$ 26,232	$ 54,477	$ 61,011

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest charges and financing costs
Other financing costs	$ 465	$ 461	$ 1,388	$ 1,273

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Comprehensive income:
Net income	$ 24,221	$ 26,232	$ 54,477	$ 61,011
Derivative instruments:
Reclassification of losses to net income, net of tax of $13, $13, $38 and $37, 2016 and 2015, respectively	19	19	57	57
Other comprehensive income	19	19	57	57
Comprehensive income	$ 24,240	$ 26,251	$ 54,534	$ 61,068

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative instruments:
Reclassification of losses to net income, net of tax	$ 13	$ 13	$ 38	$ 37

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income	$ 54,477	$ 61,011
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	74,014	67,936
Deferred income taxes	27,769	38,595
Amortization of investment tax credits	(396)	(396)
Allowance for equity funds used during construction	(2,969)	(5,926)
Loss on Monticello life cycle management/extended power uprate project	0	5,237
Net derivative losses	112	338
Changes in operating assets and liabilities:
Accounts receivable	9,394	10,026
Accrued unbilled revenues	8,203	12,657
Inventories	1,290	2,847
Other current assets	7,791	14,471
Accounts payable	11,946	(25,023)
Net regulatory assets and liabilities	(10,256)	(13,962)
Other current liabilities	1,523	5,948
Pension and other employee benefit obligations	(6,256)	(3,931)
Change in other noncurrent assets	(402)	11
Change in other noncurrent liabilities	1,918	595
Net cash provided by operating activities	178,158	170,434
Investing activities
Utility capital/construction expenditures	(138,616)	(171,586)
Allowance for equity funds used during construction	2,969	5,926
Other, net	781	(90)
Net cash used in investing activities	(134,866)	(165,750)
Financing activities
Repayments of short-term borrowings, net	(6,000)	(78,000)
Proceeds from issuance of long-term debt	0	98,038
Repayments of long-term debt	(44)	0
Capital contributions from parent	1,108	25,060
Dividends paid to parent	(38,414)	(40,265)
Net cash (used in) provided by financing activities	(43,350)	4,833
Net change in cash and cash equivalents	(58)	9,517
Cash and cash equivalents at beginning of period	1,079	1,285
Cash and cash equivalents at end of period	1,021	10,802
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amounts capitalized)	(21,692)	(18,647)
Cash (paid) received for income taxes, net	(2,298)	9,662
Supplemental disclosure of non-cash investing transactions:
Property, plant and equipment additions in accounts payable	$ 16,011	$ 13,520

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents		$ 1,021	$ 1,079
Accounts receivable, net	[1]	47,811	56,378
Accrued unbilled revenues		39,495	47,698
Inventories		20,269	21,559
Regulatory assets		13,567	16,146
Prepaid taxes		17,495	25,976
Deferred income taxes		7,671	3,138
Prepayments and other		3,187	2,387
Total current assets		150,516	174,361
Property, plant and equipment, net		1,901,696	1,828,079
Other assets
Regulatory assets		292,969	289,196
Other investments		3,259	4,042
Other		471	67
Total other assets		296,699	293,305
Total assets		2,348,911	2,295,745
Current liabilities
Current portion of long-term debt		1,138	1,131
Short-term debt		4,000	10,000
Notes payable to affiliates		500	500
Accounts payable		38,153	34,317
Accounts payable to affiliates		30,386	24,538
Dividends payable to parent		14,687	15,322
Regulatory liabilities		17,546	11,781
Environmental liabilities		16,366	17,155
Accrued interest		9,615	7,945
Other		13,226	15,778
Total current liabilities		145,617	138,467
Deferred credits and other liabilities
Deferred income taxes		428,051	393,569
Deferred investment tax credits		8,164	8,560
Regulatory liabilities		146,247	141,289
Environmental liabilities		68,419	77,441
Customer advances		19,678	18,480
Pension and employee benefit obligations		43,461	49,889
Other		16,858	16,347
Total deferred credits and other liabilities		730,878	705,575
Commitments and contingencies
Capitalization
Long-term debt		661,796	661,318
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Sept. 30, 2016 and Dec. 31, 2015, respectively		93,300	93,300
Additional paid in capital		398,033	394,553
Retained earnings		319,439	302,741
Accumulated other comprehensive loss		(152)	(209)
Total common stockholder’s equity		810,620	790,385
Total liabilities and equity		$ 2,348,911	$ 2,295,745

[1] Accounts receivable, net includes an immaterial amount due from affiliates as of Sept. 30, 2016 and Dec. 31, 2015, respectively.

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Capitalization
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 100	$ 100
Common stock, shares outstanding (in shares)	933,000	933,000

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Management's Opinion

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Management's Opinion

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of NSP-Wisconsin and its subsidiaries as of Sept. 30, 2016 and Dec. 31, 2015; the results of its operations, including the components of net income and comprehensive income, for the three and nine months ended Sept. 30, 2016 and 2015; and its cash flows for the nine months ended Sept. 30, 2016 and 2015. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after Sept. 30, 2016 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2015 balance sheet information has been derived from the audited 2015 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015. These notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto, included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015, filed with the SEC on Feb. 22, 2016. Due to the seasonality of NSP-Wisconsin’s electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2015, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference.

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Accounting Pronouncements

9 Months Ended

Sep. 30, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Accounting Pronouncements

Accounting Pronouncements

Recently Issued

Revenue Recognition— In May 2014, the Financial Accounting Standards Board (FASB) issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update (ASU) No. 2014-09), which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. The new guidance also includes additional disclosure requirements regarding revenue, cash flows and obligations related to contracts with customers. The guidance is effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements.

Presentation of Deferred Taxes — In November 2015, the FASB issued Balance Sheet Classification of Deferred Taxes, Topic 740 (ASU No 2015-17), which eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet based on the classification of the related asset or liability, and instead requires classification of all deferred tax assets and liabilities as noncurrent. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. Other than the prescribed classification of all deferred tax assets and liabilities as noncurrent, NSP-Wisconsin does not expect the implementation of ASU 2015-17 to have a material impact on its consolidated financial statements.

Classification and Measurement of Financial Instruments — In January 2016, the FASB issued Recognition and Measurement of Financial Assets and Financial Liabilities, Subtopic 825-10 (ASU No. 2016-01), which among other changes in accounting and disclosure requirements, replaces the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes, and also eliminates the available-for-sale classification for marketable equity securities. Under the new guidance, other than when the consolidation or equity method of accounting is utilized, changes in the fair value of equity securities are to be recognized in earnings. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2017. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-01 on its consolidated financial statements.

Leases — In February 2016, the FASB issued Leases, Topic 842 (ASU No. 2016-02), which, for lessees, requires balance sheet recognition of right-of-use assets and lease liabilities for all leases. Additionally, for leases that qualify as finance leases, the guidance requires expense recognition consisting of amortization of the right-of-use asset as well as interest on the related lease liability using the effective interest method. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2018, and early adoption is permitted. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2016-02 on its consolidated financial statements.

Stock Compensation — In March 2016, the FASB issued Improvements to Employee Share-Based Payment Accounting, Topic 718 (ASU 2016-09), which amends existing guidance to simplify several aspects of accounting and presentation for share-based payment transactions, including the accounting for income taxes and forfeitures, as well as presentation in the statement of cash flows. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2016, and early adoption is permitted. NSP-Wisconsin does not expect the implementation of ASU 2016-09 to have a material impact on its consolidated financial statements.

Recently Adopted

Consolidation— In February 2015, the FASB issued Amendments to the Consolidation Analysis, Topic 810 (ASU No. 2015-02), which reduces the number of consolidation models and amends certain consolidation principles related to variable interest entities. NSP-Wisconsin implemented the guidance on Jan. 1, 2016, and the implementation did not have a significant impact on its consolidated financial statements.

Presentation of Debt Issuance Costs— In April 2015, the FASB issued Simplifying the Presentation of Debt Issuance Costs, Subtopic 835-30 (ASU No. 2015-03), which requires the presentation of debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt, instead of presentation as an asset. NSP-Wisconsin implemented the new guidance as required on Jan. 1, 2016, and as a result, $5.0 million of deferred debt issuance costs were presented as a deduction from the carrying amount of long-term debt on the consolidated balance sheet as of March 31, 2016, and $5.1 million of such deferred costs were retrospectively reclassified from other non-current assets to long-term debt on the consolidated balance sheet as of Dec. 31, 2015.

Fair Value Measurement— In May 2015, the FASB issued Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), Topic 820 (ASU No. 2015-07), which eliminates the requirement to categorize fair value measurements using a net asset value methodology in the fair value hierarchy. NSP-Wisconsin implemented the guidance on Jan. 1, 2016, and the implementation did not have a material impact on its consolidated financial statements.

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Selected Balance Sheet Data

9 Months Ended

Sep. 30, 2016

Balance Sheet Related Disclosures [Abstract]

Selected Balance Sheet Data

Selected Balance Sheet Data

(Thousands of Dollars)	Sept. 30, 2016			Dec. 31, 2015
Accounts receivable, net (a)
Accounts receivable	$	52,270		$	61,506
Less allowance for bad debts	(4,459		)	(5,128		)
	$	47,811		$	56,378

(Thousands of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Inventories
Materials and supplies	$	7,100	$	6,785
Fuel	4,887		6,528
Natural gas	8,282		8,246
	$	20,269	$	21,559

(Thousands of Dollars)	Sept. 30, 2016			Dec. 31, 2015
Property, plant and equipment, net
Electric plant	$	2,471,420		$	2,411,562
Natural gas plant	285,829			275,376
Common and other property	134,988			132,329
Construction work in progress	117,543			65,755
Total property, plant and equipment	3,009,780			2,885,022
Less accumulated depreciation	(1,108,084		)	(1,056,943		)
	$	1,901,696		$	1,828,079

^(a)  Accounts receivable, net includes an immaterial amount due from affiliates as of Sept. 30, 2016 and Dec. 31, 2015, respectively.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Except to the extent noted below, Note 6 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015 appropriately represents, in all material respects, the current status of other income tax matters, and are incorporated herein by reference.

Federal Audit— NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. In 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011, including a 2009 carryback claim. As of Sept. 30, 2016, the IRS had proposed an adjustment to the federal tax loss carryback claims that would result in $14 million of income tax expense for the 2009 through 2011 claims, the 2013 through 2014 claims, and the anticipated claim for 2015. In the fourth quarter of 2015, the IRS forwarded the issue to the Office of Appeals (Appeals). In 2016 the IRS audit team and Xcel Energy presented their case to Appeals; however, the outcome and timing of a resolution is uncertain. The statute of limitations applicable to Xcel Energy’s 2009 through 2011 federal income tax returns, following extensions, expires in June 2017. Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of the IRS's proposed adjustment of the carryback claims. NSP-Wisconsin is not expected to accrue any income tax expense related to this adjustment. In the third quarter of 2015, the IRS commenced an examination of tax years 2012 and 2013. As of Sept. 30, 2016, the IRS had not proposed any material adjustments to tax years 2012 and 2013.

State Audits— NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of Sept. 30, 2016, NSP-Wisconsin’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2012. In August 2016, Wisconsin began an audit of years 2012 and 2013. As of Sept. 30, 2016, Wisconsin had not proposed any adjustments, and there were no other state income tax audits in progress.

Unrecognized Tax Benefits— The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual effective tax rate (ETR). In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment of cash to the taxing authority to an earlier period.

A reconciliation of the amount of unrecognized tax benefit is as follows:

(Millions of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Unrecognized tax benefit — Permanent tax positions	$	0.3	$	0.2
Unrecognized tax benefit — Temporary tax positions	5.0		4.3
Total unrecognized tax benefit	$	5.3	$	4.5

The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows:

(Millions of Dollars)	Sept. 30, 2016			Dec. 31, 2015
NOL and tax credit carryforwards	$	(1.1	)	$	(0.9	)

It is reasonably possible that NSP-Wisconsin’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS Appeals and audit progress, the Wisconsin audit progresses, and other state audits resume. As the IRS Appeals and IRS and Wisconsin audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $2 million.

The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. The payables for interest related to unrecognized tax benefits at Sept. 30, 2016 and Dec. 31, 2015 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of Sept. 30, 2016 or Dec. 31, 2015.

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Rate Matters Rate Matters (Notes)

9 Months Ended

Sep. 30, 2016

Public Utilities, General Disclosures [Abstract]

Rate Matters

Rate Matters

Except to the extent noted below, the circumstances set forth in Note 10 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, and in Note 5 to NSP-Wisconsin's Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016, appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference.

Pending Regulatory Proceedings — Public Service Commission of Wisconsin (PSCW)

Wisconsin 2017 Electric and Gas Rate Case — In April 2016, NSP-Wisconsin filed a request with the PSCW for an increase in annual electric rates of $17.4 million, or 2.4 percent, and an increase in natural gas rates by $4.8 million, or 3.9 percent, effective January 2017.

The electric rate request is for the limited purpose of recovering increases in (1) generation and transmission fixed charges and fuel and purchased power expenses related to the interchange agreement with NSP-Minnesota, and (2) costs associated with forecasted average rate base of $1.188 billion in 2017.

The natural gas rate request is for the limited purpose of recovering expenses related to the ongoing environmental remediation of a former manufactured gas plant (MGP) site and adjacent area in Ashland, Wis.

No changes are being requested to the capital structure or the 10.0 percent return on equity (ROE) authorized by the PSCW in the 2016 rate case. As part of an agreement with stakeholders to limit the size and scope of the case, NSP-Wisconsin also agreed to an earnings cap, solely for 2017, in which 100 percent of the earnings in excess of the authorized ROE would be refunded to customers.

In August 2016, the PSCW Staff (Staff) and the intervenors filed their direct testimony in the case. The Staff recommended an electric rate increase of $19.5 million, or 2.7 percent and a natural gas rate increase of $4.8 million, or 3.9 percent. The Staff adjustments reflect revisions to previously forecasted rate base as well as fuel and purchased power expense. The Staff’s recommended rate increase also encompasses the PSCW’s July 2016 decision to remove the $9.5 million fuel refund credit from the rate case and refund that amount directly to customers in 2016. Adjusting for the treatment of the fuel refund, the Staff’s recommendation is $7.4 million less than NSP-Wisconsin’s request.

On Oct. 26, 2016, the PSCW verbally approved an electric rate increase of approximately $22.5 million, or 3.2 percent, and a natural gas rate increase of $4.8 million, or 3.9 percent. The difference between the Staff’s recommendation and the PSCW’s approved electric increase is attributable to an increase in forecasted fuel and purchased power expense. Consistent with long-standing PSCW policy, these costs were updated prior to the PSCW’s decision to reflect current market forecasts. The PSCW approved NSP-Wisconsin’s requested natural gas rate increase consistent with the Staff’s recommendation.

The major components of the retail electric rate increase, the Staff’s recommendation, and the PSCW’s approval are summarized below:

Electric Rate Request (Millions of Dollars)	NSP-Wisconsin Request			Staff Recommendation			Final Decision
Rate base investments	$	11.0		$	7.6		7.6
Generation and transmission expenses (excluding fuel and purchased power) (a)	6.8			6.1			6.1
Fuel and purchased power expenses	11.0			7.7			10.7
Subtotal	28.8			21.4			24.4
2015 fuel refund (b)	(9.5		)	—			—
Department of Energy settlement refund	(1.9		)	(1.9		)	(1.9		)
Total electric rate increase	$	17.4		$	19.5		$	22.5

^(a)  Includes Interchange Agreement billings. The Interchange Agreement is a Federal Energy Regulatory Commission (FERC) tariff under which NSP-Wisconsin and its affiliate, NSP-Minnesota, own and operate a single integrated electric generation and transmission system and both companies pay a pro-rata share of system capital and operating costs. For financial reporting purposes, these expenses are included in operating and maintenance (O&M).

^(b)  In July 2016, the PSCW required NSP-Wisconsin to return the 2015 fuel refund directly to customers, rather than using it to offset the proposed 2017 rate increase, as originally proposed by NSP-Wisconsin. This decision, when combined with the increase in forecasted fuel and purchased power expense, effectively increases NSP-Wisconsin’s requested electric rate increase to $29.9 million, or 4.2 percent.

NSP-Wisconsin anticipates a final written order later this year, with new rates effective on Jan. 1, 2017.

Pending Regulatory Proceedings - Michigan Public Service Commission (MPSC)

Michigan 2017 Natural Gas Rate Case —In October 2016, NSP-Wisconsin filed a request with the MPSC to increase base rates for natural gas service by approximately $347 thousand annually, or 6.5 percent. The filing was based on a 2017 forecast test year, a 10.2 percent ROE, an equity ratio of 52.56 percent and a forecasted average rate base of approximately $6.4 million. The primary driver of the requested increase is investment in natural gas distribution infrastructure, mainly in conjunction with the company’s Distribution Integrity Management Program (DIMP). NSP-Wisconsin also proposed an Infrastructure Cost Recovery Mechanism (ICRM) rate rider to recover ongoing costs associated with the DIMP. In addition, the filing requested recovery of approximately $129 thousand, or 2.4 percent, through the ICRM, beginning in January 2018.  Under the proposal, the ICRM rider would be adjusted annually.

Recently Concluded Regulatory Proceedings — Minnesota Public Utilities Commission (MPUC)

Nuclear Project Prudence Investigation — In 2013, NSP-Minnesota completed the Monticello life cycle management (LCM)/extended power uprate (EPU) project. The multi-year project extended the life of the facility and increased the capacity from 600 to 671 megawatts (MW) in 2015. The Monticello LCM/EPU project expenditures were approximately $665 million. Total capitalized costs were approximately $748 million, which includes allowance for funds used during construction (AFUDC). In 2008, project expenditures were initially estimated at approximately $320 million, excluding AFUDC.

In 2013, the MPUC initiated an investigation to determine whether the final costs for the Monticello LCM/EPU project were prudent. In March 2015, the MPUC voted to allow for full recovery, including a return, on $415 million of the total plant costs (inclusive of AFUDC), but only allow recovery of the remaining $333 million of costs with no return on this portion of the investment over the remaining life of the plant. As a result of these determinations, Xcel Energy recorded an estimated pre-tax loss of $129 million in the first quarter of 2015, after which the remaining book value of the Monticello project represented the present value of the estimated future cash flows. As NSP-Wisconsin shares in the costs of the Monticello plant through the Interchange Agreement with NSP-Minnesota, the MPUC decision also affects NSP-Wisconsin. NSP-Wisconsin’s portion of the $129 million pre-tax loss, recorded in the first quarter of 2015, was approximately $5 million.

Pending Regulatory Proceedings — FERC

Midcontinent Independent System Operator, Inc. (MISO) ROE Complaints/ROE Adder — In November 2013, a group of customers filed a complaint at the FERC against MISO transmission owners (TOs), including NSP-Minnesota and NSP-Wisconsin. The complaint argued for a reduction in the ROE in transmission formula rates in the MISO region from 12.38 percent to 9.15 percent, a prohibition on capital structures in excess of 50 percent equity, and the removal of ROE adders (including those for regional transmission organization (RTO) membership and for being an independent transmission company), effective Nov. 12, 2013.

In December 2015, an administrative law judge (ALJ) initial decision recommended the FERC approve a ROE of 10.32 percent, which the FERC upheld in an order issued on Sept. 28, 2016. This ROE is applicable for the 15 month refund period from Nov. 12, 2013 to Feb. 11, 2015, and prospectively from the date of the FERC order. The total prospective ROE is 10.82 percent, which includes a previously approved 50 basis point adder for RTO membership.

In February 2015, a second complaint seeking to reduce the MISO region ROE from 12.38 percent to 8.67 percent, prior to any adder was filed, which the FERC set for hearings, resulting in a second period of potential refund from Feb. 12, 2015 to May 11, 2016. The MPUC, the North Dakota Public Service Commission, the South Dakota Public Utilities Commission and the Minnesota Department of Commerce joined a joint complainant/intervenor initial brief recommending an ROE of approximately 8.81 percent. FERC staff recommended a ROE of 8.78 percent. The MISO TOs recommended a ROE of 10.92 percent. On June 30, 2016, the ALJ issued an initial decision recommending a ROE of 9.7 percent, the midpoint of the upper half of the discounted cash flow (DCF) range. A FERC decision is expected in 2017.

As of Sept. 30, 2016, NSP-Minnesota has recognized a current liability for the Nov. 12, 2013 to Feb. 11, 2015 complaint period based on the 10.32 percent ROE provided in the FERC order, as well as a current liability representing the best estimate of the

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Except to the extent noted below and in Note 5 above, the circumstances set forth in Notes 10 and 11 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2015, and in Note 6 to NSP-Wisconsin’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016, appropriately represent, in all material respects, the current status of commitments and contingent liabilities, and are incorporated herein by reference. The following include commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position.

Guarantees

NSP-Wisconsin provides a guarantee for payment of customer loans related to NSP-Wisconsin’s farm rewiring program. NSP-Wisconsin’s exposure under the guarantee is based upon the net liability under the agreement. The guarantee issued by NSP-Wisconsin has a stated maximum amount. The guarantee contains no recourse provisions and requires no collateral. These agreements have expiration dates through 2020.

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

(Millions of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Guarantee issued and outstanding	$	1.0	$	1.0
Current exposure under this guarantee	0.1		0.1

Environmental Contingencies

Ashland MGP Site — NSP-Wisconsin has been named a potentially responsible party for contamination at a site in Ashland, Wis. The Ashland/Northern States Power Lakefront Superfund Site (the Site) includes NSP-Wisconsin property, previously operated as a MGP facility (the Upper Bluff), and two other properties: an adjacent city lakeshore park area (Kreher Park); and an area of Lake Superior’s Chequamegon Bay adjoining the park (the Sediments).

In 2012, under a settlement agreement with the United States Environmental Protection Agency (EPA), NSP-Wisconsin agreed to remediate the Phase I Project Area (which includes the Upper Bluff and Kreher Park areas of the Site). The current cost estimate for the cleanup of the Phase I Project Area is approximately $71.4 million, of which approximately $52.6 million has been spent.

NSP-Wisconsin performed a wet dredge pilot study in the summer of 2016 and demonstrated that a wet dredge remedy can meet the performance standards for remediation of the Sediments. As a result, the EPA authorized NSP-Wisconsin to extend the wet dredge pilot to additional areas of the Site. Settlement negotiations are ongoing between the EPA and NSP-Wisconsin regarding the performance of the full scale cleanup of the Sediments. If a court-approved settlement can be reached with the EPA, NSP-Wisconsin anticipates a full scale wet dredge remedy of the Sediments could be performed beginning as early as 2017, and potentially conclude by 2018.

At Sept. 30, 2016 and Dec. 31, 2015, NSP-Wisconsin had recorded a total liability of $84.6 million and $94.4 million, respectively, for the entire site. NSP-Wisconsin’s potential liability, the actual cost of remediation and the timing of expenditures are subject to change. NSP-Wisconsin also continues to work to identify and access state and federal funds to apply to the remediation cost.

NSP-Wisconsin has deferred the unrecovered portion of the estimated Site remediation costs as a regulatory asset. The PSCW has consistently authorized NSP-Wisconsin rate recovery for all remediation costs incurred at the Site. In 2012, the PSCW agreed to allow NSP-Wisconsin to pre-collect certain costs, to amortize costs over a ten-year period, and to apply a three percent carrying cost to the unamortized regulatory asset. In April 2016, NSP-Wisconsin filed a limited natural gas rate case for recovery of additional expenses associated with remediating the Site. If approved, the annual recovery of MGP clean-up costs would increase from $7.6 million in 2016 to $12.4 million in 2017.

Cross-State Air Pollution Rule (CSAPR) — CSAPR addresses long range transport of particulate matter and ozone by requiring reductions in sulfur dioxide and nitrogen oxide (NOx) from utilities in the eastern half of the United States, including Wisconsin, using an emissions trading program.

CSAPR was adopted to address interstate emissions impacting downwind states’ attainment of the 1997 ozone National Ambient Air Quality Standard (NAAQS) and the 1997 and 2006 particulate NAAQS. As the EPA revises the NAAQS, it will consider whether to make any further reductions to CSAPR emission budgets and whether to change which states are included in the emissions trading program. In December 2015, the EPA proposed adjustments to CSAPR emission budgets which address attainment of the more stringent 2008 ozone NAAQS. The EPA adopted a final rule in September 2016 for the ozone season emission budget for NOx which did not materially impact NSP-Wisconsin.

Legal Contingencies

NSP-Wisconsin is involved in various litigation matters that are being defended and handled in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, arising from such current proceedings would have a material effect on NSP-Wisconsin’s financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred.

Employment, Tort and Commercial Litigation

Gas Trading Litigation — e prime, inc. (e prime) is a wholly owned subsidiary of Xcel Energy.  e prime was in the business of natural gas trading and marketing, but has not engaged in natural gas trading or marketing activities since 2003.  Thirteen lawsuits were commenced against e prime and Xcel Energy (and NSP-Wisconsin, in two instances) between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices.

The cases were consolidated in U.S. District Court in Nevada. Five of the cases have since been settled and seven have been dismissed.  One multi-district litigation (MDL) matter remains and it consists of a Colorado class (Breckenridge), a Wisconsin class (NSP-Wisconsin), a Kansas class, and two other cases identified as “Sinclair Oil” and “Farmland.” In May 2016, the MDL judge granted summary judgment dismissing defendants from the Farmland lawsuit. e prime and Xcel Energy have filed a motion seeking clarification that this order includes them. This motion is currently pending and is expected to be heard in December 2016. The e prime defendants filed a summary judgment motion in the Colorado class lawsuit (Breckenridge) and oppositions to class certifications in all the class actions, which is also expected to be heard in December 2016. Trial dates are not expected to occur prior to early 2017. Xcel Energy, NSP-Wisconsin and e prime have concluded that a loss is remote.

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Borrowings and Other Financing Instruments

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Borrowings and Other Financing Instruments

Borrowings and Other Financing Instruments

Commercial Paper — NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility. Commercial paper outstanding for NSP-Wisconsin was as follows:

(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2016			Year Ended Dec. 31, 2015
Borrowing limit	$	150		$	150
Amount outstanding at period end	4			10
Average amount outstanding	6			39
Maximum amount outstanding	23			122
Weighted average interest rate, computed on a daily basis	0.60		%	0.44		%
Weighted average interest rate at period end	0.60			0.70

Letters of Credit— NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At Sept. 30, 2016 and Dec. 31, 2015, there were no letters of credit outstanding.

Credit Facility — In order to use its commercial paper program, NSP-Wisconsin must have a credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper in an aggregate amount exceeding available credit facility capacity. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

At Sept. 30, 2016, NSP-Wisconsin had the following committed credit facility available (in millions of dollars):

Credit Facility (a)		Drawn(b)		Available
$	150	$	4	$	146

^(a)  This credit facility expires in June 2021.

^(b)  Includes outstanding commercial paper.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at Sept. 30, 2016 and Dec. 31, 2015.

Amended Credit Agreements - In June 2016, NSP-Wisconsin entered into an amended five-year credit agreement with a syndicate of banks. The total borrowing limit under the amended credit agreement remained at $150 million. The amended credit agreement has substantially the same terms and conditions as the prior credit agreement with the following exceptions:

• The maturity extended from October 2019 to June 2021.

• The Eurodollar borrowing margins on these lines of credit were reduced to a range of 75 to 150 basis points per year, from a range of 87.5 to 175 basis points per year, based upon applicable long-term credit ratings.

• The commitment fees, calculated on the unused portion of the lines of credit, were reduced to a range of 6 to 22.5 basis points per year, from a range of 7.5 to 27.5 basis points per year, also based on applicable long-term credit ratings.

NSP-Wisconsin has the right to request an extension of the revolving credit facility termination date for an additional one-year period, subject to majority bank group approval.

Other Short-Term Borrowings— The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.:

(Amounts in Millions, Except Interest Rates)	Sept. 30, 2016			Dec. 31, 2015
Notes payable to affiliates	$	0.5		$	0.5
Weighted average interest rate at period end	0.77		%	0.87		%

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Fair Value of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

Fair Value Measurements

The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value.  A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows:

Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the measurement date.  The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices.

Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date.  The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.

Level 3 — Significant inputs to pricing have little or no observability as of the reporting date.  The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation.

Specific valuation methods include the following:

Cash equivalents— The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted prices.

Interest rate derivatives— The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts.

Commodity derivatives— The methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2.  When contractual settlements extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable forecasts of long-term forward prices and volatilities on a valuation is evaluated, and may result in Level 3 classification.

Derivative Instruments Fair Value Measurements

NSP-Wisconsin enters into derivative instruments, including forward contracts, futures, swaps and options for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices.

Interest Rate Derivatives — NSP-Wisconsin enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period.  These derivative instruments are generally designated as cash flow hedges for accounting purposes.

At Sept. 30, 2016, accumulated other comprehensive loss related to interest rate derivatives included $0.1 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable.

Commodity Derivatives — NSP-Wisconsin may enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of natural gas to generate electric energy and natural gas for resale.

The following table details the gross notional amounts of commodity options at Sept. 30, 2016 and Dec. 31, 2015:

(Amounts in Thousands)(a)(b)	Sept. 30, 2016	Dec. 31, 2015
Million British thermal units of natural gas	284	388

^(a)  Amounts are not reflective of net positions in the underlying commodities.

^(b)  Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.

Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — There were immaterial pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings during the three months ended Sept. 30, 2016 and 2015, and $0.1 million of net losses reclassified from accumulated other comprehensive loss into earnings during the nine months ended Sept. 30, 2016 and 2015.

During the three and nine months ended Sept. 30, 2016, changes in the fair value of natural gas commodity derivatives resulted in net losses of $0.1 million and $0.2 million recognized as regulatory assets and liabilities, respectively. For the three and nine months ended Sept. 30, 2015, changes in the fair value of natural gas commodity derivatives resulted in immaterial and $0.1 million of net losses recognized as regulatory assets and liabilities, respectively. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms.

Natural gas commodity derivatives settlement losses of $0.6 million and $1.0 million were recognized for the nine months ended Sept. 30, 2016 and 2015, respectively, and were subject to purchased natural gas cost recovery mechanisms, which result in reclassifications of derivative settlement gains and losses out of income to a regulatory asset or liability, as appropriate. There were no natural gas commodity derivatives settlement losses recognized during the three months ended Sept. 30, 2016 and 2015, respectively.

NSP-Wisconsin had no derivative instruments designated as fair value hedges during the three and nine months ended Sept. 30, 2016 and 2015. Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods.

Consideration of Credit Risk and Concentrations—NSP-Wisconsin monitors the creditworthiness of the counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions. Given this assessment, as well as an assessment of the impact of NSP-Wisconsin’s own credit risk when determining the fair value of derivative liabilities, the impact of considering credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets.

NSP-Wisconsin employs additional credit risk control mechanisms, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided.

Recurring Fair Value Measurements — The following tables present for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis:

	Sept. 30, 2016
	Fair Value						Fair Value Total		Counterparty Netting(a)		Total(b)
(Thousands of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	114	$	—	$	114	$	—	$	114

	Dec. 31, 2015
	Fair Value						Fair Value Total		Counterparty Netting(a)			Total(c)
(Thousands of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	15	$	—	$	15	$	(11	)	$	4
Total current derivative assets	$	—	$	15	$	—	$	15	$	(11	)	$	4
Current derivative liabilities
Natural gas commodity	$	—	$	194	$	—	$	194	$	(11	)	$	183
Total current derivative liabilities	$	—	$	194	$	—	$	194	$	(11	)	$	183

^(a)  NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2016 and Dec. 31, 2015.  The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

^(b)  Included in other current assets balance of $3.2 million at Sept. 30, 2016, in the consolidated balance sheets.

^(c)  Included in other current assets balance of $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets.

Fair Value of Long-Term Debt

As of Sept. 30, 2016 and Dec. 31, 2015, other financial instruments for which the carrying amount did not equal fair value were as follows:

	Sept. 30, 2016				Dec. 31, 2015
(Thousands of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion (a)	$	662,934	$	781,939	$	662,449	$	742,565

^(a)  Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03.

The fair value of NSP-Wisconsin’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of Sept. 30, 2016 and Dec. 31, 2015, and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2.

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Other (Expense) Income, Net

9 Months Ended

Sep. 30, 2016

Other Income and Expenses [Abstract]

Other (Expense) Income, Net

Other (Expense) Income, Net

Other (expense) income, net consisted of the following:

	Three Months Ended Sept. 30						Nine Months Ended Sept. 30
(Thousands of Dollars)	2016			2015			2016			2015
Interest (expense) income	$	(73	)	$	11		$	65		$	299
Other nonoperating income	33			72			299			202
Insurance policy (expense) income	(58		)	20			70			(109		)
Other nonoperating expense	(4		)	(3		)	(10		)	(8		)
Other (expense) income, net	$	(102	)	$	100		$	424		$	384

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Segment Information

9 Months Ended

Sep. 30, 2016

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, transmits and distributes electricity primarily in portions of Wisconsin and Michigan. 

• NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas primarily 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 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 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, 2016
Operating revenues (a)	$	232,216	$	13,646		$	282		$	—		$	246,144
Intersegment revenues	110		97			—			(207		)	—
Total revenues	$	232,326	$	13,743		$	282		$	(207	)	$	246,144
Net income (loss)	$	25,459	$	(1,201	)	$	(37	)	$	—		$	24,221

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other			Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2015
Operating revenues (a)	$	224,666	$	11,088		$	407		$	—		$	236,161
Intersegment revenues	101		177			—			(278		)	—
Total revenues	$	224,767	$	11,265		$	407		$	(278	)	$	236,161
Net income (loss)	$	28,285	$	(1,993	)	$	(60	)	$	—		$	26,232

^(a)  Operating revenues include $44 million and $42 million of affiliate electric revenue for the three months ended Sept. 30, 2016 and 2015, respectively.

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2016
Operating revenues (a)	$	646,619	$	72,671	$	877		$	—		$	720,167
Intersegment revenues	317		299		—			(616		)	—
Total revenues	$	646,936	$	72,970	$	877		$	(616	)	$	720,167
Net income	$	52,058	$	2,426	$	(7	)	$	—		$	54,477

(Thousands of Dollars)	Regulated Electric			Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2015
Operating revenues (a)	$	634,571		$	91,273	$	1,090		$	—		$	726,934
Intersegment revenues	308			475		—			(783		)	—
Total revenues	$	634,879		$	91,748	$	1,090		$	(783	)	$	726,934
Net income (loss)	$	57,586	(b)	$	3,714	$	(289	)	$	—		$	61,011

^(a)  Operating revenues include $127 million and $121 million of affiliate electric revenue for the nine months ended Sept. 30, 2016 and 2015, respectively.

^(b)  Includes a net of tax charge related to the Monticello LCM/EPU project.  See Note 5.

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Benefit Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Benefit Plans and Other Postretirement Benefits

Benefit Plans and Other Postretirement Benefits

Components of Net Periodic Benefit Cost

	Three Months Ended Sept. 30
	2016			2015			2016			2015
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Service cost	$	1,104		$	1,190		$	6		$	7
Interest cost	1,704			1,630			163			164
Expected return on plan assets	(2,289		)	(2,371		)	(6		)	(8		)
Amortization of prior service cost (credit)	28			27			(88		)	(87		)
Amortization of net loss	1,348			1,701			83			114
Net benefit cost recognized for financial reporting	$	1,895		$	2,177		$	158		$	190

	Nine Months Ended Sept. 30
	2016			2015			2016			2015
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Service cost	$	3,312		$	3,570		$	18		$	21
Interest cost	5,112			4,890			489			490
Expected return on plan assets	(6,867		)	(7,113		)	(18		)	(23		)
Amortization of prior service cost (credit)	84			83			(264		)	(263		)
Amortization of net loss	4,044			5,103			249			342
Net benefit cost recognized for financial reporting	$	5,685		$	6,533		$	474		$	567

In January 2016, contributions of $125.0 million were made across four of Xcel Energy’s pension plans, of which $7.4 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2016.

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Other Comprehensive Income

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

Other Comprehensive Income

Other Comprehensive Income

Changes in accumulated other comprehensive loss, net of tax, for the three and nine months ended Sept. 30, 2016 and 2015 were as follows:

	Gains and Losses on Cash Flow Hedges
(Thousands of Dollars)	Three Months Ended Sept. 30, 2016			Three Months Ended Sept. 30, 2015
Accumulated other comprehensive loss at July 1	$	(171	)	$	(247	)
Losses reclassified from net accumulated other comprehensive loss	19			19
Net current period other comprehensive income	19			19
Accumulated other comprehensive loss at Sept. 30	$	(152	)	$	(228	)

	Gains and Losses on Cash Flow Hedges
(Thousands of Dollars)	Nine Months Ended Sept. 30, 2016			Nine Months Ended Sept. 30, 2015
Accumulated other comprehensive loss at Jan. 1	$	(209	)	$	(285	)
Losses reclassified from net accumulated other comprehensive loss	57			57
Net current period other comprehensive income	57			57
Accumulated other comprehensive loss at Sept. 30	$	(152	)	$	(228	)

Reclassifications from accumulated other comprehensive loss for the three and nine months ended Sept. 30, 2016 and 2015 were as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
(Thousands of Dollars)	Three Months Ended Sept. 30, 2016				Three Months Ended Sept. 30, 2015
Losses on cash flow hedges:
Interest rate derivatives	$	32		(a)	$	32		(a)
Total, pre-tax	32				32
Tax benefit	(13		)		(13		)
Total amounts reclassified, net of tax	$	19			$	19

	Amounts Reclassified from Accumulated Other Comprehensive Loss
(Thousands of Dollars)	Nine Months Ended Sept. 30, 2016				Nine Months Ended Sept. 30, 2015
Losses on cash flow hedges:
Interest rate derivatives	$	95		(a)	$	94		(a)
Total, pre-tax	95				94
Tax benefit	(38		)		(37		)
Total amounts reclassified, net of tax	$	57			$	57

^(a)  Included in interest charges.

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Selected Balance Sheet Data (Tables)

9 Months Ended

Sep. 30, 2016

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

(Thousands of Dollars)	Sept. 30, 2016			Dec. 31, 2015
Accounts receivable, net (a)
Accounts receivable	$	52,270		$	61,506
Less allowance for bad debts	(4,459		)	(5,128		)
	$	47,811		$	56,378

^[1]

Inventories

(Thousands of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Inventories
Materials and supplies	$	7,100	$	6,785
Fuel	4,887		6,528
Natural gas	8,282		8,246
	$	20,269	$	21,559

Property, Plant and Equipment, Net

(Thousands of Dollars)	Sept. 30, 2016			Dec. 31, 2015
Property, plant and equipment, net
Electric plant	$	2,471,420		$	2,411,562
Natural gas plant	285,829			275,376
Common and other property	134,988			132,329
Construction work in progress	117,543			65,755
Total property, plant and equipment	3,009,780			2,885,022
Less accumulated depreciation	(1,108,084		)	(1,056,943		)
	$	1,901,696		$	1,828,079

[1] Accounts receivable, net includes an immaterial amount due from affiliates as of Sept. 30, 2016 and Dec. 31, 2015, respectively.

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the amount of unrecognized tax benefit is as follows:

(Millions of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Unrecognized tax benefit — Permanent tax positions	$	0.3	$	0.2
Unrecognized tax benefit — Temporary tax positions	5.0		4.3
Total unrecognized tax benefit	$	5.3	$	4.5

Tax Benefits Associated with NOL and Tax Credit Carryforwards

The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows:

(Millions of Dollars)	Sept. 30, 2016			Dec. 31, 2015
NOL and tax credit carryforwards	$	(1.1	)	$	(0.9	)

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Rate Matters Rate Matters (Tables)

9 Months Ended

Sep. 30, 2016

Public Utilities, General Disclosures [Abstract]

NSP-WI 2017 Electric Rate Request [Table Text Block]

On Oct. 26, 2016, the PSCW verbally approved an electric rate increase of approximately $22.5 million, or 3.2 percent, and a natural gas rate increase of $4.8 million, or 3.9 percent. The difference between the Staff’s recommendation and the PSCW’s approved electric increase is attributable to an increase in forecasted fuel and purchased power expense. Consistent with long-standing PSCW policy, these costs were updated prior to the PSCW’s decision to reflect current market forecasts. The PSCW approved NSP-Wisconsin’s requested natural gas rate increase consistent with the Staff’s recommendation.

The major components of the retail electric rate increase, the Staff’s recommendation, and the PSCW’s approval are summarized below:

Electric Rate Request (Millions of Dollars)	NSP-Wisconsin Request			Staff Recommendation			Final Decision
Rate base investments	$	11.0		$	7.6		7.6
Generation and transmission expenses (excluding fuel and purchased power) (a)	6.8			6.1			6.1
Fuel and purchased power expenses	11.0			7.7			10.7
Subtotal	28.8			21.4			24.4
2015 fuel refund (b)	(9.5		)	—			—
Department of Energy settlement refund	(1.9		)	(1.9		)	(1.9		)
Total electric rate increase	$	17.4		$	19.5		$	22.5

^(a)  Includes Interchange Agreement billings. The Interchange Agreement is a Federal Energy Regulatory Commission (FERC) tariff under which NSP-Wisconsin and its affiliate, NSP-Minnesota, own and operate a single integrated electric generation and transmission system and both companies pay a pro-rata share of system capital and operating costs. For financial reporting purposes, these expenses are included in operating and maintenance (O&M).

^(b)  In July 2016, the PSCW required NSP-Wisconsin to return the 2015 fuel refund directly to customers, rather than using it to offset the proposed 2017 rate increase, as originally proposed by NSP-Wisconsin. This decision, when combined with the increase in forecasted fuel and purchased power expense, effectively increases NSP-Wisconsin’s requested electric rate increase to $29.9 million, or 4.2 percent.

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Guarantees Issued and Outstanding

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

(Millions of Dollars)	Sept. 30, 2016		Dec. 31, 2015
Guarantee issued and outstanding	$	1.0	$	1.0
Current exposure under this guarantee	0.1		0.1

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Borrowings and Other Financing Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Borrowings and Other Financing Instruments [Abstract]

Credit Facilities

At Sept. 30, 2016, NSP-Wisconsin had the following committed credit facility available (in millions of dollars):

Credit Facility (a)		Drawn(b)		Available
$	150	$	4	$	146

^(a)  This credit facility expires in June 2021.

^(b)  Includes outstanding commercial paper.

Commercial Paper

Borrowings and Other Financing Instruments [Abstract]

Short-Term Borrowings

Commercial paper outstanding for NSP-Wisconsin was as follows:

(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2016			Year Ended Dec. 31, 2015
Borrowing limit	$	150		$	150
Amount outstanding at period end	4			10
Average amount outstanding	6			39
Maximum amount outstanding	23			122
Weighted average interest rate, computed on a daily basis	0.60		%	0.44		%
Weighted average interest rate at period end	0.60			0.70

Notes Payable To Affiliates

Borrowings and Other Financing Instruments [Abstract]

Short-Term Borrowings

Other Short-Term Borrowings— The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.:

(Amounts in Millions, Except Interest Rates)	Sept. 30, 2016			Dec. 31, 2015
Notes payable to affiliates	$	0.5		$	0.5
Weighted average interest rate at period end	0.77		%	0.87		%

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Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Gross Notional Amounts of Commodity Forwards and Options

The following table details the gross notional amounts of commodity options at Sept. 30, 2016 and Dec. 31, 2015:

(Amounts in Thousands)(a)(b)	Sept. 30, 2016	Dec. 31, 2015
Million British thermal units of natural gas	284	388

^(a)  Amounts are not reflective of net positions in the underlying commodities.

^(b)  Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level

Recurring Fair Value Measurements — The following tables present for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis:

	Sept. 30, 2016
	Fair Value						Fair Value Total		Counterparty Netting(a)		Total(b)
(Thousands of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	114	$	—	$	114	$	—	$	114

	Dec. 31, 2015
	Fair Value						Fair Value Total		Counterparty Netting(a)			Total(c)
(Thousands of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity	$	—	$	15	$	—	$	15	$	(11	)	$	4
Total current derivative assets	$	—	$	15	$	—	$	15	$	(11	)	$	4
Current derivative liabilities
Natural gas commodity	$	—	$	194	$	—	$	194	$	(11	)	$	183
Total current derivative liabilities	$	—	$	194	$	—	$	194	$	(11	)	$	183

^(a)  NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2016 and Dec. 31, 2015.  The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

^(b)  Included in other current assets balance of $3.2 million at Sept. 30, 2016, in the consolidated balance sheets.

^(c)  Included in other current assets balance of $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets.

Carrying Amount and Fair Value of Long-term Debt

As of Sept. 30, 2016 and Dec. 31, 2015, other financial instruments for which the carrying amount did not equal fair value were as follows:

	Sept. 30, 2016				Dec. 31, 2015
(Thousands of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion (a)	$	662,934	$	781,939	$	662,449	$	742,565

^(a)  Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03.

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Other (Expense) Income, Net (Tables)

9 Months Ended

Sep. 30, 2016

Other Income and Expenses [Abstract]

Other (Expense) Income, Net

Other (expense) income, net consisted of the following:

	Three Months Ended Sept. 30						Nine Months Ended Sept. 30
(Thousands of Dollars)	2016			2015			2016			2015
Interest (expense) income	$	(73	)	$	11		$	65		$	299
Other nonoperating income	33			72			299			202
Insurance policy (expense) income	(58		)	20			70			(109		)
Other nonoperating expense	(4		)	(3		)	(10		)	(8		)
Other (expense) income, net	$	(102	)	$	100		$	424		$	384

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Results from Operations by Reportable Segment

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other			Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2016
Operating revenues (a)	$	232,216	$	13,646		$	282		$	—		$	246,144
Intersegment revenues	110		97			—			(207		)	—
Total revenues	$	232,326	$	13,743		$	282		$	(207	)	$	246,144
Net income (loss)	$	25,459	$	(1,201	)	$	(37	)	$	—		$	24,221

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas			All Other			Reconciling Eliminations			Consolidated Total
Three Months Ended Sept. 30, 2015
Operating revenues (a)	$	224,666	$	11,088		$	407		$	—		$	236,161
Intersegment revenues	101		177			—			(278		)	—
Total revenues	$	224,767	$	11,265		$	407		$	(278	)	$	236,161
Net income (loss)	$	28,285	$	(1,993	)	$	(60	)	$	—		$	26,232

^(a)  Operating revenues include $44 million and $42 million of affiliate electric revenue for the three months ended Sept. 30, 2016 and 2015, respectively.

(Thousands of Dollars)	Regulated Electric		Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2016
Operating revenues (a)	$	646,619	$	72,671	$	877		$	—		$	720,167
Intersegment revenues	317		299		—			(616		)	—
Total revenues	$	646,936	$	72,970	$	877		$	(616	)	$	720,167
Net income	$	52,058	$	2,426	$	(7	)	$	—		$	54,477

(Thousands of Dollars)	Regulated Electric			Regulated Natural Gas		All Other			Reconciling Eliminations			Consolidated Total
Nine Months Ended Sept. 30, 2015
Operating revenues (a)	$	634,571		$	91,273	$	1,090		$	—		$	726,934
Intersegment revenues	308			475		—			(783		)	—
Total revenues	$	634,879		$	91,748	$	1,090		$	(783	)	$	726,934
Net income (loss)	$	57,586	(b)	$	3,714	$	(289	)	$	—		$	61,011

^(a)  Operating revenues include $127 million and $121 million of affiliate electric revenue for the nine months ended Sept. 30, 2016 and 2015, respectively.

^(b)  Includes a net of tax charge related to the Monticello LCM/EPU project.  See Note 5.

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Benefit Plans and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

	Three Months Ended Sept. 30
	2016			2015			2016			2015
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Service cost	$	1,104		$	1,190		$	6		$	7
Interest cost	1,704			1,630			163			164
Expected return on plan assets	(2,289		)	(2,371		)	(6		)	(8		)
Amortization of prior service cost (credit)	28			27			(88		)	(87		)
Amortization of net loss	1,348			1,701			83			114
Net benefit cost recognized for financial reporting	$	1,895		$	2,177		$	158		$	190

	Nine Months Ended Sept. 30
	2016			2015			2016			2015
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Service cost	$	3,312		$	3,570		$	18		$	21
Interest cost	5,112			4,890			489			490
Expected return on plan assets	(6,867		)	(7,113		)	(18		)	(23		)
Amortization of prior service cost (credit)	84			83			(264		)	(263		)
Amortization of net loss	4,044			5,103			249			342
Net benefit cost recognized for financial reporting	$	5,685		$	6,533		$	474		$	567

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Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

Changes in Accumulated Other Comprehensive Loss, Net of Tax

Changes in accumulated other comprehensive loss, net of tax, for the three and nine months ended Sept. 30, 2016 and 2015 were as follows:

	Gains and Losses on Cash Flow Hedges
(Thousands of Dollars)	Three Months Ended Sept. 30, 2016			Three Months Ended Sept. 30, 2015
Accumulated other comprehensive loss at July 1	$	(171	)	$	(247	)
Losses reclassified from net accumulated other comprehensive loss	19			19
Net current period other comprehensive income	19			19
Accumulated other comprehensive loss at Sept. 30	$	(152	)	$	(228	)

	Gains and Losses on Cash Flow Hedges
(Thousands of Dollars)	Nine Months Ended Sept. 30, 2016			Nine Months Ended Sept. 30, 2015
Accumulated other comprehensive loss at Jan. 1	$	(209	)	$	(285	)
Losses reclassified from net accumulated other comprehensive loss	57			57
Net current period other comprehensive income	57			57
Accumulated other comprehensive loss at Sept. 30	$	(152	)	$	(228	)

Reclassifications out of Accumulated Other Comprehensive Loss

Reclassifications from accumulated other comprehensive loss for the three and nine months ended Sept. 30, 2016 and 2015 were as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
(Thousands of Dollars)	Three Months Ended Sept. 30, 2016				Three Months Ended Sept. 30, 2015
Losses on cash flow hedges:
Interest rate derivatives	$	32		(a)	$	32		(a)
Total, pre-tax	32				32
Tax benefit	(13		)		(13		)
Total amounts reclassified, net of tax	$	19			$	19

	Amounts Reclassified from Accumulated Other Comprehensive Loss
(Thousands of Dollars)	Nine Months Ended Sept. 30, 2016				Nine Months Ended Sept. 30, 2015
Losses on cash flow hedges:
Interest rate derivatives	$	95		(a)	$	94		(a)
Total, pre-tax	95				94
Tax benefit	(38		)		(37		)
Total amounts reclassified, net of tax	$	57			$	57

^(a)  Included in interest charges.

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Accounting Pronouncements Debt Issuance Costs (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Long-term Debt
Debt Instrument [Line Items]
Reclassification of deferred debt issuance costs, net	$ 5.0	$ 5.1
Other Noncurrent Assets
Debt Instrument [Line Items]
Reclassification of deferred debt issuance costs, net		$ (5.1)

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Selected Balance Sheet Data, Accounts Receivable (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Accounts Receivable, Net
Accounts receivable		$ 52,270	$ 61,506
Less allowance for bad debts		(4,459)	(5,128)
Accounts receivable, net	[1]	$ 47,811	$ 56,378

[1] Accounts receivable, net includes an immaterial amount due from affiliates as of Sept. 30, 2016 and Dec. 31, 2015, respectively.

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Selected Balance Sheet Data, Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Public Utilities, Inventory [Line Items]
Inventories	$ 20,269	$ 21,559
Materials and supplies
Public Utilities, Inventory [Line Items]
Inventories	7,100	6,785
Fuel
Public Utilities, Inventory [Line Items]
Inventories	4,887	6,528
Natural gas
Public Utilities, Inventory [Line Items]
Inventories	$ 8,282	$ 8,246

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Selected Balance Sheet Data, Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,009,780	$ 2,885,022
Less accumulated depreciation	(1,108,084)	(1,056,943)
Property, plant and equipment, net	1,901,696	1,828,079
Electric plant
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,471,420	2,411,562
Natural gas plant
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	285,829	275,376
Common and other property
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	134,988	132,329
Construction work in progress
Public Utility, Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 117,543	$ 65,755

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Income Taxes (Details) - USD ($)	1 Months Ended	9 Months Ended		12 Months Ended
	Aug. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2012	Dec. 31, 2015
Unrecognized Tax Benefits [Abstract]
Unrecognized tax benefit — Permanent tax positions		$ 300,000			$ 200,000
Unrecognized tax benefit — Temporary tax positions		5,000,000			4,300,000
Total unrecognized tax benefit		5,300,000			4,500,000
NOL and tax credit carryforwards		(1,100,000)			(900,000)
Upper bound of decrease in unrecognized tax benefit that is reasonably possible		2,000,000
Amounts accrued for penalties related to unrecognized tax benefits		0			$ 0
Internal Revenue Service (IRS)
Tax Audits [Abstract]
Year(s) under examination			2012 and 2013	2010 and 2011
Year of carryback claim under examination				2009
Potential Tax Adjustments		$ 14,000,000
Earliest year subject to examination		2009
State Jurisdiction (Wisconsin)
Tax Audits [Abstract]
Year(s) under examination	2012 and 2013
Earliest year subject to examination		2012

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Rate Matters Rate Matters (Details)				1 Months Ended							3 Months Ended			9 Months Ended		12 Months Ended
	Oct. 26, 2016 USD ($)	Sep. 28, 2016	Jun. 30, 2016	Oct. 31, 2016 USD ($)	Aug. 31, 2016 USD ($)	Jul. 31, 2016 USD ($)	Apr. 30, 2016 USD ($)	Mar. 31, 2015 USD ($)	Feb. 28, 2015	Nov. 30, 2013	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2015 MW	Dec. 31, 2013 USD ($)	Dec. 31, 2008 USD ($)
Public Utilities, General Disclosures [Line Items]
Loss on Monticello life cycle management/extended power uprate project											$ 0	$ 0		$ 0	$ 5,237,000
NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Electric Rates 2017
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount							$ 17,400,000
Public Utilities, Requested Rate Increase (Decrease), Percentage							2.40%
Public Utilities, Requested Rate Base, Amount							$ 1,188,000,000
Public Utilities, Requested Increase Related to Rate Base Investments							11,000,000
Public Utilities, Requested Increase Related to Generation and Transmission Expenses							6,800,000
Public Utilities, Requested Increase Related to Fuel and Purchased Power Expenses							11,000,000
Public Utilities, Total Requested Rate Increase Excluding Refunds							28,800,000
Public Utilities, Requested Decrease Related to Fuel Refunds							(9,500,000)
Public Utilities, Requested Decrease Related to Settlement Refund							(1,900,000)
NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Electric Rates 2017 | Public Service Commission of Wisconsin (PSCW) Staff [Member]
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount					$ 19,500,000
Public Utilities, Requested Rate Increase (Decrease), Percentage					2.70%
Public Utilities, Difference Between Filed Request and PSCW Staff Recommendation					$ 7,400,000
Public Utilities, Requested Increase Related to Rate Base Investments					7,600,000
Public Utilities, Requested Increase Related to Generation and Transmission Expenses					6,100,000
Public Utilities, Requested Increase Related to Fuel and Purchased Power Expenses					7,700,000
Public Utilities, Total Requested Rate Increase Excluding Refunds					21,400,000
Public Utilities, Requested Decrease Related to Fuel Refunds					0
Public Utilities, Requested Decrease Related to Settlement Refund					(1,900,000)
NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Electric Rates 2017 | Public Service Commission of Wisconsin (PSCW)
Public Utilities, General Disclosures [Line Items]
Public Utilities, Adjustment to Rate Request Related to Fuel Refund						$ 9,500,000
Public Utilities, Revised Requested Rate Increase, Amount						$ 29,900,000
Public Utilities, Revised Requested Rate Increase, Percentage						4.20%
NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Gas Rates 2017
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount							$ 4,800,000
Public Utilities, Requested Rate Increase (Decrease), Percentage							3.90%
NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Gas Rates 2017 | Public Service Commission of Wisconsin (PSCW) Staff [Member]
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount					$ 4,800,000
Public Utilities, Requested Rate Increase (Decrease), Percentage					3.90%
NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Return on Equity, Percentage							10.00%
Public Utilities, Percentage of Excess Earnings to be Refunded due to Earnings Cap							100.00%
NSP-Wisconsin | MPUC Proceeding - Nuclear Project Prudency Investigation
Public Utilities, General Disclosures [Line Items]
Loss on Monticello life cycle management/extended power uprate project													$ 5,000,000
NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation
Public Utilities, General Disclosures [Line Items]
Nuclear Project Expenditures, Amount																	$ 665,000,000
Total Capitalized Nuclear Project Costs																	$ 748,000,000
Initial Estimated Nuclear Project Expenditures																		$ 320,000,000
NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation | Minnesota Public Utilities Commission
Public Utilities, General Disclosures [Line Items]
Public Utilities, Amount Of Recoverable Investment, With Return								$ 415,000,000
Public Utilities, Amount Of Recoverable Investment, Without A Return								$ 333,000,000
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint
Public Utilities, General Disclosures [Line Items]
Public Utilities, Base Return On Equity Charged To Customers Through Transmission Formula Rates									12.38%	12.38%
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties									8.67%	9.15%
Public Utilities, Maximum Equity Capital Structure Percentage Allowed Per The Complaint										50.00%
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint | Administrative Law Judge
Public Utilities, General Disclosures [Line Items]
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties			9.70%
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint | MPUC, NDPSC, SDPUC, and DOC
Public Utilities, General Disclosures [Line Items]
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties														8.81%
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint | FERC Staff
Public Utilities, General Disclosures [Line Items]
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties														8.78%
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint | MISO TOs
Public Utilities, General Disclosures [Line Items]
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties														10.92%
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint | Federal Energy Regulatory Commission (FERC)
Public Utilities, General Disclosures [Line Items]
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Approved		10.32%
Public Utilities, Length of Refund Period, In Months		15 months
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, with RTO Adder, Approved														10.82%
Public Utilities, ROE Basis Point Adder, Approved														50
Xcel Energy Inc. | MPUC Proceeding - Nuclear Project Prudency Investigation
Public Utilities, General Disclosures [Line Items]
Loss on Monticello life cycle management/extended power uprate project													$ 129,000,000
Minimum | NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation
Public Utilities, General Disclosures [Line Items]
Public Utilities, Facility Generating Capacity, In MW | MW																600
Maximum | NSP-Minnesota | MPUC Proceeding - Nuclear Project Prudency Investigation
Public Utilities, General Disclosures [Line Items]
Public Utilities, Facility Generating Capacity, In MW | MW																671
Subsequent Event [Member] | NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Electric Rates 2017 | Public Service Commission of Wisconsin (PSCW)
Public Utilities, General Disclosures [Line Items]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 22,500,000
Public Utilities, Approved Rate Increase (Decrease), Percentage	3.20%
Public Utilities, Approved Increase Related to Rate Base Investments	$ 7,600,000
Public Utilities, Approved Increase Related to Generation and Transmission Expenses	6,100,000
Public Utilities, Approved Increase Related to Fuel and Purchased Power Expenses	10,700,000
Public Utilities, Total Approved Rate Increase, Excluding Refunds	24,400,000
Public Utilities, Approved Decrease Related to Fuel Refunds	0
Public Utilities, Approved Decrease Related to Settlement Refund	(1,900,000)
Subsequent Event [Member] | NSP-Wisconsin | PSCW Proceeding - Wisconsin 2017 Electric and Gas Rate Case - Gas Rates 2017 | Public Service Commission of Wisconsin (PSCW)
Public Utilities, General Disclosures [Line Items]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 4,800,000
Public Utilities, Approved Rate Increase (Decrease), Percentage	3.90%
Subsequent Event [Member] | NSP-Wisconsin | MPSC Proceeding - Michigan 2017 Natural Gas Rate Case [Member]
Public Utilities, General Disclosures [Line Items]
Public Utilities, Requested Rate Increase (Decrease), Amount				$ 347,000
Public Utilities, Requested Rate Increase (Decrease), Percentage				6.50%
Public Utilities, Requested Rate Base, Amount				$ 6,400,000
Public Utilities, Requested Return on Equity, Percentage				10.20%
Public Utilities, Requested Equity Capital Structure, Percentage				52.56%
Public Utilities, Requested Rider Revenue, Amount				$ 129,000
Public Utilities, Requested Rider Revenue, Percentage				2.40%

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Commitments and Contingencies, Guarantees and Indemnifications (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Guarantor Obligations [Line Items]
Assets Held As Collateral	$ 0	$ 0
Payment or Performance Guarantee | Customer Loans for Farm Rewiring Program
Guarantor Obligations [Line Items]
Payment Guarantee Expiration (year)	2020
Guarantee issued and outstanding	$ 1,000,000	1,000,000
Current exposure under this guarantee	$ 100,000	$ 100,000

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Commitments and Contingencies, Environmental Contingencies - Site Contingencies (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) Site	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($)
Ashland MGP Site
Ashland Manufactured Gas Plant (MGP) Site [Abstract]
Number of properties not owned included in superfund site | Site	2
Accrual for Environmental Loss Contingencies, Gross	$ 84.6		$ 94.4
Ashland MGP Site - Phase I Project Area
Ashland Manufactured Gas Plant (MGP) Site [Abstract]
Accrual for Environmental Loss Contingencies, Gross	71.4
Estimated amount spent on cleanup	$ 52.6
Approved amortization period for recovery of remediation costs in natural gas rates (in years)	10 years
Carrying cost percentage to be applied to unamortized regulatory asset	3.00%
PSCW Proceeding - Electric and Gas Rate Case 2016 - Gas Rates 2016 | Ashland MGP Site
Ashland Manufactured Gas Plant (MGP) Site [Abstract]
Public Utilities, Approved annual recovery collected through base rates	$ 7.6
Scenario, Forecast [Member] | PSCW Proceeding - Gas Rate Case 2017 - Gas Rates 2017 | Ashland MGP Site
Ashland Manufactured Gas Plant (MGP) Site [Abstract]
Public Utilities, Requested annual recovery collected through base rates		$ 12.4

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Commitments and Contingencies Commitments and Contingencies - Legal Contingencies (Details) - Gas Trading Litigation	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2009
Loss Contingencies [Line Items]
Loss Contingency, Pending Claims, Number	1	13
Loss Contingency, Claims Settled, Number	5
Loss Contingency, Claims Dismissed, Number	7
Loss Contingency, Subset of Cases within Multi-District Litigation, Number	2
NSP-Wisconsin
Loss Contingencies [Line Items]
Loss Contingency, Pending Claims, Number		2

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Borrowings and Other Financing Instruments, Commercial Paper (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Amount outstanding at period end	$ 4,000,000	$ 10,000,000
Commercial Paper
Short-term Debt [Line Items]
Borrowing limit	150,000,000	150,000,000
Amount outstanding at period end	4,000,000	10,000,000
Average amount outstanding	6,000,000	39,000,000
Maximum amount outstanding	$ 23,000,000	$ 122,000,000
Weighted average interest rate, computed on a daily basis (percentage)	0.60%	0.44%
Weighted average interest rate at period end (percentage)	0.60%	0.70%

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Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Amount outstanding at period end	$ 4,000	$ 10,000
Letter of Credit
Line of Credit Facility [Line Items]
Amount outstanding at period end	$ 0	$ 0
Letter of Credit | Letter of Credit
Line of Credit Facility [Line Items]
Term of letters of credit (in years)	1 year

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Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($)		9 Months Ended
		Sep. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Credit Facility	[1]	$ 150,000,000
Drawn	[2]	4,000,000
Available		$ 146,000,000
Debt Instrument, Maturity Date		Jun. 30, 2021
Direct advances on the credit facility outstanding		$ 0	$ 0

[1] This credit facility expires in June 2021.

[2] Includes outstanding commercial paper.

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Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Amended Credit Agreements (Details) - Credit Facility	9 Months Ended
	Sep. 30, 2016 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000,000	[1]
Debt Instrument, Maturity Date	Jun. 30, 2021
NSP-Wisconsin
Line of Credit Facility [Line Items]
Debt Instrument, Term	5 years
Number Of Additional Periods Revolving Termination Date Can Be Extended Subject To Majority Bank Group Approval	1
Term Of Each Additional Period Revolving Termination Date Can Be Extended Subject To Majority Bank Group Approval	1 year
NSP-Wisconsin | Original Terms and Conditions [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Maturity Date	Oct. 31, 2019
Line Of Credit Facility Minimum Borrowing Margin Based On Long Term Credit Ratings	0.875%
Line Of Credit Facility Maximum Borrowing Margin Based On Long Term Credit Ratings	1.75%
Line Of Credit Facility Minimum Commitment Fees Calculated On Unused Portion Of Lines Of Credit	0.075%
Line Of Credit Facility Maximum Commitment Fees Calculated On Unused Portion Of Lines Of Credit	0.275%
NSP-Wisconsin | Amended Terms and Conditions [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Maturity Date	Jun. 30, 2021
Line Of Credit Facility Minimum Borrowing Margin Based On Long Term Credit Ratings	0.75%
Line Of Credit Facility Maximum Borrowing Margin Based On Long Term Credit Ratings	1.50%
Line Of Credit Facility Minimum Commitment Fees Calculated On Unused Portion Of Lines Of Credit	0.06%
Line Of Credit Facility Maximum Commitment Fees Calculated On Unused Portion Of Lines Of Credit	0.225%

[1] This credit facility expires in June 2021.

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Borrowings and Other Financing Instruments, Intercompany Borrowing Arrangement and Other Short-Term Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Notes payable to affiliates	$ 500	$ 500
Notes Payable To Affiliates
Short-term Debt [Line Items]
Notes payable to affiliates	$ 500	$ 500
Weighted average interest rate at period end (percentage)	0.77%	0.87%

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Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) MMBTU in Thousands, $ in Millions		Sep. 30, 2016 USD ($) MMBTU	Dec. 31, 2015 MMBTU
Interest Rate Swap
Interest Rate Derivatives [Abstract]
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | $		$ (0.1)
Natural Gas Commodity (in million British thermal units)
Gross Notional Amounts of Commodity Options [Abstract]
Derivative, Nonmonetary Notional amount | MMBTU	[1],[2]	284	388

[1] Amounts are not reflective of net positions in the underlying commodities.

[2] Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.

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Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract]
Derivative instruments designated as fair value hedges	$ 0	$ 0	$ 0	$ 0
Recognized gains (losses) from fair value hedges or related hedged transactions	0	$ 0	0	0
Designated as Hedging Instrument | Cash Flow Hedges | Interest Rate
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax (gains) losses reclassified into income during the period from accumulated other comprehensive loss			100,000	100,000
Other Derivative Instruments | Natural Gas Commodity
Impact of Derivative Activity on Accumulated Other Comprehensive Loss, Regulatory Assets and Liabilities, and Income [Abstract]
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities	$ (100,000)		(200,000)	(100,000)
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities)			$ 600,000	$ 1,000,000

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Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Prepayments and other		$ 3,187		$ 2,387
Other Liabilities, Current		13,226		15,778
Fair Value Measured on a Recurring Basis | Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	[1]			(11)
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[2]			4
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset		114	[3]	4
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	[1]	0		(11)
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	[2]			183
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	[1]			(11)
Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				183
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	[1]			(11)
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset				0
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset		0		0
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				0
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				0
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset				15
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset		114		15
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				194
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				194
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset				0
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset		0		0
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				0
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				0
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis
Derivatives, Fair Value [Line Items]
Prepayments and other		3,200		2,400
Other Liabilities, Current				15,800
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset				15
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset		$ 114		15
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				194
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Liabilities | Other Derivative Instruments | Natural Gas Commodity
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability				$ 194

[1] NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at Sept. 30, 2016 and Dec. 31, 2015. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

[2] Included in other current assets balance of $2.4 million and other current liabilities balance of $15.8 million at Dec. 31, 2015, in the consolidated balance sheets.

[3] Included in other current assets balance of $3.2 million at Sept. 30, 2016, in the consolidated balance sheets.

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Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Carrying Amount
Financial Liabilities, Balance Sheet Groupings [Abstract]
Long-term debt, including current portion (a)	[1]	$ 662,934	$ 662,449
Fair Value
Financial Liabilities, Balance Sheet Groupings [Abstract]
Long-term debt, including current portion (a)	[1]	$ 781,939	$ 742,565

[1] Amounts reflect the classification of debt issuance costs as a deduction from the carrying amount of the related debt. See Note 2, Accounting Pronouncements for more information on the adoption of ASU 2015-03.

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Other (Expense) Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Income and Expenses [Abstract]
Interest (expense) income	$ (73)	$ 11	$ 65	$ 299
Other nonoperating income	33	72	299	202
Insurance policy (expense) income	(58)	20	70	(109)
Other nonoperating expense	(4)	(3)	(10)	(8)
Other (expense) income, net	$ (102)	$ 100	$ 424	$ 384

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2016		Sep. 30, 2015
Segment Reporting Information [Line Items]
Operating revenues	$ 246,144		$ 236,161		$ 720,167		$ 726,934
Net income (loss)	24,221		26,232		54,477		61,011
Affiliate electric revenue	44,000		42,000		127,000		121,000
Regulated Electric
Segment Reporting Information [Line Items]
Operating revenues	232,326		224,767		646,936		634,879
Net income (loss)	25,459		28,285		52,058		57,586	[1]
Regulated Natural Gas
Segment Reporting Information [Line Items]
Operating revenues	13,743		11,265		72,970		91,748
Net income (loss)	(1,201)		(1,993)		2,426		3,714
All Other
Segment Reporting Information [Line Items]
Operating revenues	282		407		877		1,090
Net income (loss)	(37)		(60)		(7)		(289)
Operating Segments
Segment Reporting Information [Line Items]
Operating revenues	246,144	[2]	236,161	[2]	720,167	[3]	726,934	[3]
Operating Segments | Regulated Electric
Segment Reporting Information [Line Items]
Operating revenues	232,216	[2]	224,666	[2]	646,619	[3]	634,571	[3]
Operating Segments | Regulated Natural Gas
Segment Reporting Information [Line Items]
Operating revenues	13,646		11,088		72,671		91,273
Operating Segments | All Other
Segment Reporting Information [Line Items]
Operating revenues	282		407		877		1,090
Intersegment Eliminations
Segment Reporting Information [Line Items]
Operating revenues	(207)		(278)		(616)		(783)
Net income (loss)	0		0		0		0
Intersegment Eliminations | Regulated Electric
Segment Reporting Information [Line Items]
Operating revenues	110		101		317		308
Intersegment Eliminations | Regulated Natural Gas
Segment Reporting Information [Line Items]
Operating revenues	97		177		299		475
Intersegment Eliminations | All Other
Segment Reporting Information [Line Items]
Operating revenues	$ 0		$ 0		$ 0		$ 0

[1] (b) Includes a net of tax charge related to the Monticello LCM/EPU project. See Note 5.

[2] (a) Operating revenues include $44 million and $42 million of affiliate electric revenue for the three months ended Sept. 30, 2016 and 2015, respectively.

[3] (a) Operating revenues include $127 million and $121 million of affiliate electric revenue for the nine months ended Sept. 30, 2016 and 2015, respectively.

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Benefit Plans and Other Postretirement Benefits (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2016 USD ($) Plan	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Pension Benefits
Components of Net Periodic Benefit Cost [Abstract]
Service cost		$ 1,104	$ 1,190	$ 3,312	$ 3,570
Interest cost		1,704	1,630	5,112	4,890
Expected return on plan assets		(2,289)	(2,371)	(6,867)	(7,113)
Amortization of prior service cost (credit)		28	27	84	83
Amortization of net loss		1,348	1,701	4,044	5,103
Net benefit cost recognized for financial reporting		1,895	2,177	5,685	6,533
Total contributions to the pension plans during the period	$ 7,400
Postretirement Health Care Benefits
Components of Net Periodic Benefit Cost [Abstract]
Service cost		6	7	18	21
Interest cost		163	164	489	490
Expected return on plan assets		(6)	(8)	(18)	(23)
Amortization of prior service cost (credit)		(88)	(87)	(264)	(263)
Amortization of net loss		83	114	249	342
Net benefit cost recognized for financial reporting		$ 158	$ 190	$ 474	$ 567
Xcel Energy Inc. | Pension Benefits
Components of Net Periodic Benefit Cost [Abstract]
Total contributions to the pension plans during the period	$ 125,000
Number of Xcel Energy's pension plans to which contributions were made | Plan	4

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Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive loss at beginning of period			$ 790,385
Accumulated other comprehensive loss at end of period	$ 810,620		810,620
Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive loss at beginning of period	(171)	$ (247)	(209)	$ (285)
Losses reclassified from net accumulated other comprehensive loss	19	19	57	57
Net current period other comprehensive income	19	19	57	57
Accumulated other comprehensive loss at end of period	$ (152)	$ (228)	$ (152)	$ (228)

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Other Comprehensive Income (Reclassification from AOCI) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total, pre-tax		$ (39,393)	$ (41,867)	$ (88,425)	$ (97,173)
Tax benefit		15,172	15,635	33,948	36,162
Gains and Losses on Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total, pre-tax		32	32	95	94
Tax benefit		(13)	(13)	(38)	(37)
Total, net of tax		19	19	57	57
Gains and Losses on Cash Flow Hedges | Interest Rate Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest charges	[1]	$ 32	$ 32	$ 95	$ 94

[1] Included in interest charges.