Benefit Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Benefit Plans and Other Postretirement Benefits [Abstract]

Projected Benefit Payments for the Pension and Postretirement Benefit Plans

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



(Thousands of Dollars)	Projected Pension Benefit Payments		Gross Projected Postretirement Health Care Benefit Payments		Expected Medicare Part D Subsidies		Net Projected Postretirement Health Care Benefit Payments
2017	$	12,324	$	1,371	$	6	$	1,365
2018	11,496		1,308		5		1,303
2019	12,957		1,271		4		1,267
2020	13,329		1,226		4		1,222
2021	12,964		1,169		3		1,166
2022-2026	61,280		5,031		15		5,016

Contributions to Multiemployer Plans

Contributions to multiemployer plans were as follows for the years ended Dec. 31, 2016, 2015 and 2014. There were no significant changes to the nature or magnitude of the participation of NSP-Wisconsin in multiemployer plans for the years presented:



(Thousands of Dollars)	2016		2015		2014
Multiemployer plan contributions:
Pension	$	707	$	944	$	156

Pension Plans

Benefit Plans and Other Postretirement Benefits [Abstract]

Target Asset Allocations and Plan Assets Measured at Fair Value

The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s pension plan assets that are measured at fair value as of Dec. 31, 2016 and 2015:



	Dec. 31, 2016
(Thousands of Dollars)	Level 1		Level 2		Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	3,939	$	—	$	—	$	—	$	3,939
Commingled funds:
U.S. equity funds	—		—		—		21,415		21,415
Non U.S. equity funds	—		—		—		16,348		16,348
U.S. corporate bond funds	—		—		—		10,581		10,581
Emerging market equity funds	—		—		—		8,577		8,577
Emerging market debt funds	—		—		—		7,306		7,306
Commodity funds	—		—		—		889		889
Private equity investments	—		—		—		4,652		4,652
Real estate	—		—		—		8,108		8,108
Other commingled funds	—		—		—		8,752		8,752
Debt securities:
Government securities	—		12,773		—		—		12,773
U.S. corporate bonds	—		9,432		—		—		9,432
Non U.S. corporate bonds	—		1,514		—		—		1,514
Mortgage-backed securities	—		254		—		—		254
Asset-backed securities	—		120		—		—		120
Equity securities:
U.S. equities	4,219		—		—		—		4,219
Other	—		97		—		—		97
Total	$	8,158	$	24,190	$	—	$	86,628	$	118,976


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.



	Dec. 31, 2015
(Thousands of Dollars)	Level 1		Level 2		Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	6,005	$	—	$	—	$	—	$	6,005
Derivatives	—		89		—		—		89
Commingled funds:
U.S. equity funds	—		—		—		17,338		17,338
Non U.S. equity funds	—		—		—		16,710		16,710
U.S. corporate bond funds	—		—		—		10,001		10,001
Emerging market equity funds	—		—		—		7,491		7,491
Emerging market debt funds	—		—		—		7,245		7,245
Commodity funds	—		—		—		2,461		2,461
Private equity investments	—		—		—		5,967		5,967
Real estate	—		—		—		8,663		8,663
Other commingled funds	—		—		—		9,321		9,321
Debt securities:
Government securities	—		13,048		—		—		13,048
U.S. corporate bonds	—		9,008		—		—		9,008
Non U.S. corporate bonds	—		1,446		—		—		1,446
Asset-backed securities	—		101		—		—		101
Equity securities:
U.S. equities	4,213		—		—		—		4,213
Other	—		207		—		—		207
Total	$	10,218	$	23,899	$	—	$	85,197	$	119,314


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.

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



	2016		2015
Domestic and international equity securities	40	%	41	%
Long-duration fixed income and interest rate swap securities	23		23
Short-to-intermediate fixed income securities	16		14
Alternative investments	19		20
Cash	2		2
Total	100	%	100	%

Change in Projected Benefit Obligation

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



(Thousands of Dollars)	2016			2015
Accumulated Benefit Obligation at Dec. 31	$	146,448		$	140,917

Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	152,545		$	165,669
Service cost	4,417			4,759
Interest cost	6,816			6,520
Plan amendments	305			—
Actuarial loss (gain)	7,315			(11,159		)
Benefit payments	(13,941		)	(13,244		)
Obligation at Dec. 31	$	157,457		$	152,545

Change in Fair Value of Plan Assets



(Thousands of Dollars)	2016			2015
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	119,314		$	132,713
Actual return (loss) on plan assets	6,163			(5,087		)
Employer contributions	7,440			4,932
Benefit payments	(13,941		)	(13,244		)
Fair value of plan assets at Dec. 31	$	118,976		$	119,314

Funded Status of Plans



(Thousands of Dollars)	2016			2015
Funded Status of Plans at Dec. 31:
Funded status ^(a)	$	(38,481	)	$	(33,231	)


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

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost



(Thousands of Dollars)	2016		2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	91,531	$	86,614
Prior service cost	750		556
Total	$	92,281	$	87,170

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



(Thousands of Dollars)	2016		2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	5,972	$	6,300
Noncurrent regulatory assets	86,309		80,870
Total	$	92,281	$	87,170

Schedule of Assumptions Used



	2016		2015		2014
Significant Assumptions Used to Measure Costs:
Discount rate	4.66	%	4.11	%	4.75	%
Expected average long-term increase in compensation level	4.00		3.75		3.75
Expected average long-term rate of return on assets	7.10		7.25		7.25



Measurement date	Dec. 31, 2016	Dec. 31, 2015



	2016		2015
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation	4.13	%	4.66	%
Expected average long-term increase in compensation level	3.75		4.00
Mortality table	RP 2014		RP 2014

Components of Net Periodic Benefit Costs

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



(Thousands of Dollars)	2016			2015			2014
Service cost	$	4,417		$	4,759		$	4,527
Interest cost	6,816			6,520			7,257
Expected return on plan assets	(9,157		)	(9,483		)	(9,642		)
Amortization of prior service cost	111			111			111
Amortization of net loss	5,392			6,804			6,617
Net periodic pension cost	$	7,579		$	8,711		$	8,870

Postretirement Benefit Plan

Benefit Plans and Other Postretirement Benefits [Abstract]

Target Asset Allocations and Plan Assets Measured at Fair Value

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



	2016		2015
Domestic and international equity securities	25	%	25	%
Short-to-intermediate fixed income securities	57		57
Alternative investments	13		13
Cash	5		5
Total	100	%	100	%

The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s proportionate allocation of the total postretirement benefit plan assets that are measured at fair value as of Dec. 31, 2016 and 2015:



	Dec. 31, 2016
(Thousands of Dollars)	Level 1		Level 2		Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	25	$	—	$	—	$	—	$	25
Insurance contracts	—		58		—		—		58
Commingled funds:
U.S. equity funds	—		—		—		67		67
U.S fixed income funds	—		—		—		33		33
Emerging market debt funds	—		—		—		38		38
Other commingled funds	—		—		—		67		67
Debt securities:
Government securities	—		46		—		—		46
U.S. corporate bonds	—		77		—		—		77
Non U.S. corporate bonds	—		21		—		—		21
Asset-backed securities	—		23		—		—		23
Mortgage-backed securities	—		36		—		—		36
Equity securities:
Non U.S. equities	50		—		—		—		50
Other	—		2		—		—		2
Total	$	75	$	263	$	—	$	205	$	543


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.



	Dec. 31, 2015
(Thousands of Dollars)	Level 1		Level 2		Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	18	$	—	$	—	$	—	$	18
Insurance contracts	—		44		—		—		44
Commingled funds:
U.S. equity funds	—		—		—		36		36
Non U.S. equity funds	—		—		—		31		31
U.S fixed income funds	—		—		—		23		23
Emerging market equity funds	—		—		—		10		10
Emerging market debt funds	—		—		—		33		33
Other commingled funds	—		—		—		58		58
Debt securities:
Government securities	—		37		—		—		37
U.S. corporate bonds	—		56		—		—		56
Non U.S. corporate bonds	—		12		—		—		12
Asset-backed securities	—		27		—		—		27
Mortgage-backed securities	—		33		—		—		33
Total	$	18	$	209	$	—	$	191	$	418


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.

Change in Projected Benefit Obligation

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



(Thousands of Dollars)	2016			2015
Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	14,718		$	16,768
Service cost	24			29
Interest cost	651			653
Medicare subsidy reimbursements	7			13
Plan participants’ contributions	87			130
Actuarial loss (gain)	775			(1,645		)
Benefit payments	(1,289		)	(1,230		)
Obligation at Dec. 31	$	14,973		$	14,718

Change in Fair Value of Plan Assets



(Thousands of Dollars)	2016			2015
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	418		$	512
Actual loss on plan assets	(12		)	(12		)
Plan participants’ contributions	87			130
Employer contributions	1,339			1,018
Benefit payments	(1,289		)	(1,230		)
Fair value of plan assets at Dec. 31	$	543		$	418

Funded Status of Plans



(Thousands of Dollars)	2016			2015
Funded Status of Plans at Dec. 31:
Funded status	$	(14,430	)	$	(14,300	)
Current liabilities	(822		)	(1,017		)
Noncurrent liabilities	(13,608		)	(13,283		)
Net postretirement amounts recognized on consolidated balance sheets	$	(14,430	)	$	(14,300	)

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost



(Thousands of Dollars)	2016			2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	8,883		$	8,402
Prior service credit	(2,134		)	(2,485		)
Total	$	6,749		$	5,917

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



(Thousands of Dollars)	2016		2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	—	$	99
Noncurrent regulatory assets	6,749		5,818
Total	$	6,749	$	5,917

Schedule of Assumptions Used



	2016		2015		2014
Significant Assumptions Used to Measure Costs:
Discount rate	4.65	%	4.08	%	4.82	%
Expected average long-term rate of return on assets	5.80		5.80		7.08



Measurement date	Dec. 31, 2016	Dec. 31, 2015



	2016		2015
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation	4.13	%	4.65	%
Mortality table	RP 2014		RP 2014
Health care costs trend rate — initial	5.50	%	6.00	%

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

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



	One-Percentage Point
(Thousands of Dollars)	Increase		Decrease
APBO	$	1,423	$	(1,212	)
Service and interest components	71		(60		)

Components of Net Periodic Benefit Costs

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



(Thousands of Dollars)	2016			2015			2014
Service cost	$	24		$	29		$	35
Interest cost	651			653			791
Expected return on plan assets	(24		)	(30		)	(52		)
Amortization of prior service credit	(351		)	(351		)	(351		)
Amortization of net loss	330			456			666
Net periodic postretirement benefit cost	$	630		$	757		$	1,089