Segment Information

6 Months Ended

Jun. 30, 2019

Operating results from 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 - The regulated electric utility segment generates electricity which is transmitted and distributed in Wisconsin and Michigan.


•	Regulated Natural Gas - The regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan.


•	All Other - 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-Minnesota’s reportable segments because as an integrated electric and natural gas utility, NSP-Minnesota 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.

Certain costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators across each segment. In addition, a general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

NSP-Wisconsin's segment information for the three and six months ended June 30:



	Three Months Ended June 30
(Millions of Dollars)	2019			2018
Regulated Electric
Operating revenues^(a)	$	207.9		$	209.5
Intersegment revenues	0.1			0.1
Total operating revenue	208.0			209.6
Net income	10.9			15.5
Regulated Natural Gas
Operating revenues^(a)	$	20.9		$	22.0
Intersegment revenues	—			0.1
Total operating revenue	20.9			22.1
Net loss	(1.3		)	(0.1		)
All Other
Operating revenues^(a)	$	0.1		$	0.3
Net loss	(1.0		)	(0.2		)
Consolidated Total
Operating revenues^(a)	$	229.0		$	232.0
Reconciling Eliminations	(0.1		)	(0.2		)
Total operating revenue	$	228.9		$	231.8
Net income	8.6			15.2


^(a)	Operating revenues include $43.5 million and $38.4 million of affiliate electric revenue for the three months ended June 30, 2019 and 2018, respectively.



	Six Months Ended June 30
(Millions of Dollars)	2019			2018
Regulated Electric
Operating revenues^(a)	$	422.9		$	425.9
Intersegment revenues	0.2			0.2
Total operating revenue	423.1			426.1
Net income	24.1			35.9
Regulated Natural Gas
Operating revenues^(a)	$	82.0		$	78.5
Intersegment revenues	0.2			0.3
Total operating revenue	82.2			78.8
Net income	9.2			10.3
All Other
Operating revenues^(a)	$	0.2		$	0.5
Net income (loss)	(0.7		)	0.4
Consolidated Total
Operating revenues^(a)	$	505.5		$	505.4
Reconciling Eliminations	(0.4		)	(0.5		)
Total operating revenue	$	505.1		$	504.9
Net income	32.6			46.6

^(a)

Operating revenues include $87.6 million and $76.1 million of affiliate electric revenue for the six months ended June 30 2019 and 2018, respectively.