QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Commission File Number) | (I.R.S. Employer Identification No.) |
(Registrant, State of Incorporation or Organization, Address of Principal Executive Officers and Telephone Number) | ||
Northern States Power Company | ||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
N/A | N/A | N/A |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||
☒ | Smaller reporting company | ||||
Emerging growth company |
Class | Oct. 25, 2019 | |
Common Stock, $100 par value |
PART I | FINANCIAL INFORMATION | |
Item 1 — | ||
Item 2 — | ||
Item 4 — | ||
PART II | OTHER INFORMATION | |
Item 1 — | ||
Item 1A — | ||
Item 6 — | ||
Certifications Pursuant to Section 302 | |
Certifications Pursuant to Section 906 |
Xcel Energy Inc.’s Subsidiaries and Affiliates (current and former) | |
e prime | e prime inc. |
NSP-Minnesota | Northern States Power Company, a Minnesota corporation |
NSP System | The electric production and transmission system of NSP-Minnesota and NSP-Wisconsin operated on an integrated basis and managed by NSP-Minnesota |
NSP-Wisconsin | Northern States Power Company, a Wisconsin corporation |
PSCo | Public Service Company of Colorado |
SPS | Southwestern Public Service Company |
Utility subsidiaries | NSP-Minnesota, NSP-Wisconsin, PSCo and SPS |
Xcel Energy | Xcel Energy Inc. and its subsidiaries |
Federal and State Regulatory Agencies | |
D.C. Circuit | United States Court of Appeals for the District of Columbia Circuit |
EPA | United States Environmental Protection Agency |
FERC | Federal Energy Regulatory Commission |
IRS | Internal Revenue Service |
PSCW | Public Service Commission of Wisconsin |
SEC | Securities and Exchange Commission |
Other | |
ACE | Affordable Clean Energy |
AFUDC | Allowance for funds used during construction |
ASC | FASB Accounting Standards Codification |
ASU | FASB Accounting Standards Update |
C&I | Commercial and Industrial |
CEO | Chief executive officer |
CFO | Chief financial officer |
ETR | Effective tax rate |
FASB | Financial Accounting Standards Board |
GAAP | Generally accepted accounting principles |
MDL | Multi-district litigation |
MGP | Manufactured gas plant |
MISO | Midcontinent Independent System Operator, Inc. |
NAV | Net asset value |
NOI | Notice of inquiry |
NOL | Net operating loss |
O&M | Operating and maintenance |
ROE | Return on equity |
RTO | Regional Transmission Organization |
TO | Transmission owner |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues | |||||||||||||||
Electric, non-affiliates | $ | $ | $ | $ | |||||||||||
Electric, affiliates | |||||||||||||||
Natural gas | |||||||||||||||
Other | |||||||||||||||
Total operating revenues | |||||||||||||||
Operating expenses | |||||||||||||||
Electric fuel and purchased power, non-affiliates | |||||||||||||||
Purchased power, affiliates | |||||||||||||||
Cost of natural gas sold and transported | |||||||||||||||
Operating and maintenance expenses | |||||||||||||||
Conservation expenses | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Taxes (other than income taxes) | |||||||||||||||
Total operating expenses | |||||||||||||||
Operating income | |||||||||||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Allowance for funds used during construction — equity | |||||||||||||||
Interest charges and financing costs | |||||||||||||||
Interest charges — includes other financing costs of $0.3, $0.5, $1.0 and $1.5, respectively | |||||||||||||||
Allowance for funds used during construction — debt | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total interest charges and financing costs | |||||||||||||||
Income before income taxes | |||||||||||||||
Income taxes | |||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Other comprehensive income | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Reclassification of losses to net income, net of tax of $0 | ||||||||||||||||
Other comprehensive income | ||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Nine Months Ended Sept. 30 | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes | |||||||
Amortization of investment tax credits | ( | ) | ( | ) | |||
Allowance for equity funds used during construction | ( | ) | ( | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | |||||||
Accrued unbilled revenues | |||||||
Inventories | ( | ) | ( | ) | |||
Other current assets | |||||||
Accounts payable | ( | ) | ( | ) | |||
Net regulatory assets and liabilities | ( | ) | ( | ) | |||
Other current liabilities | ( | ) | |||||
Pension and other employee benefit obligations | ( | ) | ( | ) | |||
Other, net | |||||||
Net cash provided by operating activities | |||||||
Investing activities | |||||||
Utility capital/construction expenditures | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Financing activities | |||||||
Proceeds from (repayments of) short-term borrowings, net | ( | ) | |||||
Proceeds from issuance of long-term debt | |||||||
Repayments of issuances of long-term debt | ( | ) | |||||
Capital contributions from parent | |||||||
Dividends paid to parent | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Net cash used in financing activities | ( | ) | |||||
Net change in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest (net of amounts capitalized) | $ | ( | ) | $ | ( | ) | |
Cash paid for income taxes, net | ( | ) | ( | ) | |||
Supplemental disclosure of non-cash investing transactions: | |||||||
Accrued property, plant and equipment additions | $ | $ | |||||
Inventory transfers to property, plant and equipment | |||||||
Allowance for equity funds used during construction |
Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, net | |||||||
Accrued unbilled revenues | |||||||
Other receivables | |||||||
Inventories | |||||||
Regulatory assets | |||||||
Prepaid taxes | |||||||
Prepayments and other | |||||||
Total current assets | |||||||
Property, plant and equipment, net | |||||||
Other assets | |||||||
Regulatory assets | |||||||
Other investments | |||||||
Other | |||||||
Total other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Short-term debt | $ | $ | |||||
Notes payable to affiliates | |||||||
Accounts payable | |||||||
Accounts payable to affiliates | |||||||
Dividends payable to parent | |||||||
Regulatory liabilities | |||||||
Taxes accrued | |||||||
Environmental liabilities | |||||||
Accrued interest | |||||||
Other | |||||||
Total current liabilities | |||||||
Deferred credits and other liabilities | |||||||
Deferred income taxes | |||||||
Deferred investment tax credits | |||||||
Regulatory liabilities | |||||||
Environmental liabilities | |||||||
Customer advances | |||||||
Pension and employee benefit obligations | |||||||
Other | |||||||
Total deferred credits and other liabilities | |||||||
Commitments and contingencies | |||||||
Capitalization | |||||||
Long-term debt | |||||||
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Sept. 30, 2019 and Dec. 31, 2018, respectively | |||||||
Additional paid in capital | |||||||
Retained earnings | |||||||
Total common stockholder’s equity | |||||||
Total liabilities and equity | $ | $ |
NSP-WISCONSIN AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS’ EQUITY (UNAUDITED) (amounts in millions, shares in thousands) | ||||||||||||||||||||||
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholders’ Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Three Months Ended Sept. 30, 2019 and 2018 | ||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | $ | |||||||||||||||||
Net income | ||||||||||||||||||||||
Common dividends declared to parent | ( | ) | ( | ) | ||||||||||||||||||
Contribution of capital by parent | ||||||||||||||||||||||
Balance at Sept. 30, 2018 | $ | $ | $ | $ | $ | |||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||
Net income | ||||||||||||||||||||||
Common dividends declared to parent | ( | ) | ( | ) | ||||||||||||||||||
Balance at Sept. 30, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||
See Notes to Consolidated Financial Statements |
NSP-WISCONSIN AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS’ EQUITY (UNAUDITED) (amounts in millions, shares in thousands) | ||||||||||||||||||||||
Common Stock Issued | Retained Earnings | Accumulated Other Comprehensive Loss | Total Common Stockholders’ Equity | |||||||||||||||||||
Shares | Par Value | Additional Paid In Capital | ||||||||||||||||||||
Nine Months Ended Sept. 30, 2019 and 2018 | ||||||||||||||||||||||
Balance at Dec. 31, 2017 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||
Net income | ||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||
Common dividends declared to parent | ( | ) | ( | ) | ||||||||||||||||||
Contribution of capital by parent | ||||||||||||||||||||||
Balance at Sept. 30, 2018 | $ | $ | $ | $ | $ | |||||||||||||||||
Balance at Dec. 31, 2018 | $ | $ | $ | $ | $ | |||||||||||||||||
Net income | ||||||||||||||||||||||
Common dividends declared to parent | ( | ) | ( | ) | ||||||||||||||||||
Contribution of capital by parent | ||||||||||||||||||||||
Balance at Sept. 30, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||
See Notes to Consolidated Financial Statements |
1. | Summary of Significant Accounting Policies |
2. | Accounting Pronouncements |
3. | Selected Balance Sheet Data |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Accounts receivable, net | ||||||||
Accounts receivable | $ | $ | ||||||
Less allowance for bad debts | ( | ) | ( | ) | ||||
Accounts receivable, net | $ | $ |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Inventories | ||||||||
Materials and supplies | $ | $ | ||||||
Fuel | ||||||||
Natural gas | ||||||||
Total inventories | $ | $ |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Property, plant and equipment, net | ||||||||
Electric plant | $ | $ | ||||||
Natural gas plant | ||||||||
Common and other property | ||||||||
Construction work in progress | ||||||||
Total property, plant and equipment | ||||||||
Less accumulated depreciation | ( | ) | ( | ) | ||||
Property, plant and equipment, net | $ | $ |
4. | Borrowings and Other Financing Instruments |
(Amounts in Millions, Except Interest Rates) | Three Months Ended Sept. 30, 2019 | Year Ended Dec. 31, 2018 | ||||||
Borrowing limit | $ | $ | ||||||
Amount outstanding at period end | ||||||||
Average amount outstanding | ||||||||
Maximum amount outstanding | ||||||||
Weighted average interest rate, computed on a daily basis | % | % | ||||||
Weighted average interest rate at period end |
Credit Facility (a) | Outstanding (b) | Available | ||||||||
$ | $ | $ |
(a) | This credit facility expires in June 2024. |
(b) | Includes outstanding commercial paper. |
(Amounts in Millions, Except Interest Rates) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Notes payable to affiliates | $ | $ | ||||||
Weighted average interest rate at period end | N/A | % |
Three Months Ended Sept. 30, 2019 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Interchange | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended Sept. 30, 2018 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Interchange | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Nine Months Ended Sept. 30, 2019 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Interchange | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
Nine Months Ended Sept. 30, 2018 | ||||||||||||||||
(Millions of Dollars) | Electric | Natural Gas | All Other | Total | ||||||||||||
Major revenue types | ||||||||||||||||
Revenue from contracts with customers: | ||||||||||||||||
Residential | $ | $ | $ | $ | ||||||||||||
C&I | ||||||||||||||||
Other | ||||||||||||||||
Total retail | ||||||||||||||||
Interchange | ||||||||||||||||
Other | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Alternative revenue and other | ||||||||||||||||
Total revenues | $ | $ | $ | $ |
6. | Income Taxes |
Nine Months Ended Sept. 30 | ||||||
2019 | 2018 | |||||
Federal statutory rate | % | % | ||||
State tax (net of federal tax effect) | ||||||
Increases (decreases) in tax from: | ||||||
Tax credits and tax credit and NOL allowances (net) | ( | ) | ( | ) | ||
Prior period adjustments | ( | ) | ||||
Plant regulatory differences (a) | ( | ) | ( | ) | ||
Other (net) | ||||||
Effective income tax rate | % | % |
(a) | Regulatory differences for income tax primarily relates to the credit of excess deferred taxes to customers through the average rate assumption method and the impact of AFUDC - equity. Year-to-date variations primarily relate to the impact of AFUDC - equity. |
Tax Year(s) | Expiration | |
2009 - 2013 | June 2020 | |
2014 - 2016 | September 2020 |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
Unrecognized tax benefit — Permanent tax positions | $ | $ | ||||||
Unrecognized tax benefit — Temporary tax positions | ||||||||
Total unrecognized tax benefit | $ | $ |
(Millions of Dollars) | Sept. 30, 2019 | Dec. 31, 2018 | ||||||
NOL and tax credit carryforwards | $ | ( | ) | $ | ( | ) |
7. | Fair Value of Financial Assets and Liabilities |
(Amounts in Millions) (a)(b) | Sept. 30, 2019 | Dec. 31, 2018 | ||||
Million British thermal Units (MMBtu) of natural gas |
(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. |
Sept. 30, 2019 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Netting (a) | Total (b) | |||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||
Natural gas commodity | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Current derivative liabilities | ||||||||||||||||||||||||
Natural gas commodity | $ | $ | $ | $ | $ | $ |
Dec. 31, 2018 | ||||||||||||||||||||||||
Fair Value | Fair Value Total | Netting (a) | Total (c) | |||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Current derivative assets | ||||||||||||||||||||||||
Natural gas commodity | $ | $ | $ | $ | $ | $ |
(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, 2019 and Dec. 31, 2018. 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 prepayments and other current assets balance of $ |
(c) | Included in prepayments and other current assets balance of $ |
Sept. 30, 2019 | Dec. 31, 2018 | |||||||||||||||
(Millions of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt, including current portion | $ | $ | $ | $ |
8. | Benefit Plans and Other Postretirement Benefits |
Three Months Ended Sept. 30 | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost (a) | ||||||||||||||||
Expected return on plan assets (a) | ( | ) | ( | ) | ||||||||||||
Amortization of prior service credit (a) | ( | ) | ( | ) | ||||||||||||
Amortization of net loss (a) | ||||||||||||||||
Settlement charge (b) | ||||||||||||||||
Net periodic benefit cost | ||||||||||||||||
Costs not recognized due to the effects of regulation | ( | ) | ||||||||||||||
Net benefit cost recognized for financial reporting | $ | $ | $ | $ |
Nine Months Ended Sept. 30 | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Millions of Dollars) | Pension Benefits | Postretirement Health Care Benefits | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost (a) | ||||||||||||||||
Expected return on plan assets (a) | ( | ) | ( | ) | ||||||||||||
Amortization of prior service credit (a) | ( | ) | ( | ) | ||||||||||||
Amortization of net loss (a) | ||||||||||||||||
Settlement charge (b) | ||||||||||||||||
Net periodic benefit cost | ||||||||||||||||
Credits (costs) not recognized due to the effects of regulation | ( | ) | ||||||||||||||
Net benefit cost recognized for financial reporting | $ | $ | $ | $ |
(a) | The components of net periodic cost other than the service cost component are included in the line item “other expense, net” in the consolidated statement of income or capitalized on the consolidated balance sheet as a regulatory asset. |
9. | Commitments and Contingencies |
10. | Segment Information |
• | 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. |
Three Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Regulated Electric | ||||||||
Operating revenues (a) | $ | $ | ||||||
Intersegment revenues | ||||||||
Total operating revenue | ||||||||
Net income | ||||||||
Regulated Natural Gas | ||||||||
Operating revenues | $ | $ | ||||||
Intersegment revenues | ||||||||
Total operating revenue | ||||||||
Net loss | ( | ) | ( | ) | ||||
All Other | ||||||||
Operating revenues | $ | $ | ||||||
Net income | ||||||||
Consolidated Total | ||||||||
Operating revenues (a) | $ | $ | ||||||
Reconciling Eliminations | ( | ) | ( | ) | ||||
Total operating revenue | $ | $ | ||||||
Net income |
(a) | Operating revenues include $ |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Regulated Electric | ||||||||
Operating revenues (a) | $ | $ | ||||||
Intersegment revenues | ||||||||
Total operating revenue | ||||||||
Net income | ||||||||
Regulated Natural Gas | ||||||||
Operating revenues | $ | $ | ||||||
Intersegment revenues | ||||||||
Total operating revenue | ||||||||
Net income | ||||||||
All Other | ||||||||
Operating revenues | $ | $ | ||||||
Net (loss) income | ( | ) | ||||||
Consolidated Total | ||||||||
Operating revenues (a) | $ | $ | ||||||
Reconciling Eliminations | ( | ) | ( | ) | ||||
Total operating revenue | $ | $ | ||||||
Net income |
(a) | Operating revenues include $ |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Electric revenues | $ | 651.9 | $ | 666.2 | ||||
Electric fuel and purchased power | (306.5 | ) | (319.4 | ) | ||||
Electric margin | $ | 345.4 | $ | 346.8 |
(Millions of Dollars) | 2019 vs. 2018 | |||
Interchange agreement billings with NSP-Minnesota | $ | 11.5 | ||
Timing of fuel recovery | 1.7 | |||
Estimated impact of weather | (7.3 | ) | ||
Purchased capacity costs | (4.5 | ) | ||
Sales decline | (1.4 | ) | ||
Other (net) | (1.4 | ) | ||
Total decrease in electric margin | $ | (1.4 | ) |
Nine Months Ended Sept. 30 | ||||||||
(Millions of Dollars) | 2019 | 2018 | ||||||
Natural gas revenues | $ | 96.6 | $ | 93.8 | ||||
Cost of natural gas sold and transported | (45.9 | ) | (43.3 | ) | ||||
Natural gas margin | $ | 50.7 | $ | 50.5 |
(Millions of Dollars) | 2019 vs. 2018 | |||
Estimated impact of weather | $ | 0.5 | ||
Sales growth | (0.7 | ) | ||
Other (net) | 0.4 | |||
Total increase in natural gas margin | $ | 0.2 |
• | Allowed ROE of 10.0%; |
• | Allowed equity ratio of 52.5%; |
• | Retain expected fuel cost savings from new wind farms for the NSP System; |
• | Allow deferral of pension settlement costs, if any, for 2019-2021; |
• | Utilize a portion of tax reform benefits to offset revenue deficiency; |
• | Allow deferral of certain large customer non-fuel cost of service impacts and bad debt expense in 2019-2021; and |
• | Apply an earnings sharing mechanism for 2020 and 2021. The mechanism would return to customers 50% of earnings between 10.25% and 10.75% ROE and 100% of earnings equal to or in excess of 10.75% ROE. |
• | Utilize tax reform benefits of $22.3 million to offset a portion of the regulatory asset for remediation of the MGP site in Ashland, WI. |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference |
3.01* | NSP-Wisconsin Form S-4 dated Jan. 21, 2004 | 333-112033 | 3.01 | |
3.02* | NSP-Wisconsin Form 10-K for the year ended Dec. 31, 2018 | 001-03140 | 3.02 | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH | XBRL Schema | |||
101.CAL | XBRL Calculation | |||
101.DEF | XBRL Definition | |||
101.LAB | XBRL Label | |||
101.PRE | XBRL Presentation | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Northern States Power Company (a Wisconsin corporation) | ||
Oct. 25, 2019 | 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) |
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. |
/s/ BEN FOWKE | |
Ben Fowke | |
Chairman, Chief Executive Officer and Director | |
(Principal Executive Officer) |
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. |
/s/ ROBERT C. FRENZEL | |
Robert C. Frenzel | |
Executive Vice President, Chief Financial Officer and Director | |
(Principal Financial Officer) |
(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. |
/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) |
Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($) |
Sep. 30, 2019 |
Dec. 31, 2018 |
|||||
---|---|---|---|---|---|---|---|
Line of Credit Facility [Line Items] | |||||||
Credit Facility | [1] | $ 150,000,000 | |||||
Outstanding | [2] | 68,000,000 | |||||
Available | 82,000,000 | ||||||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |||||
|
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