Short-Term Debt — NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility.



(Millions of Dollars, Except Interest Rates)	Three Months Ended Dec. 31, 2019			Year Ended
(Millions of Dollars, Except Interest Rates)	Three Months Ended Dec. 31, 2019			2019			2018			2017
Borrowing limit	$	150		$	150		$	150		$	150
Amount outstanding at period end	65			65			51			11
Average amount outstanding	72			51			28			52
Maximum amount outstanding	93			93			103			129
Weighted average interest rate, computed on a daily basis	1.98		%	2.38		%	2.31		%	1.23		%
Weighted average interest rate at period end	1.97			1.97			2.89			1.73

Letters of Credit — NSP-Wisconsin may use letters of credit, typically with terms of one year, to provide financial guarantees for certain operating obligations. At Dec. 31, 2019 and 2018, there were no letters of credit outstanding.

Credit Facility — In order to use its commercial paper program to fulfill short-term funding needs, NSP-Wisconsin must have a revolving 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 capacity under this credit facility. 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.

Amended Credit Agreement — In June 2019, NSP-Wisconsin entered into an amended five-year credit agreement with a syndicate of banks. The amended credit agreements have substantially the same terms and conditions as the prior credit agreements with the exception of the maturity, which was extended from June 2021 to June 2024.



Debt-to-Total Capitalization Ratio^(a)				Amount Facility May Be Increased (millions)	Additional Periods for Which a One-Year Extension May Be Requested ^(b)
2019		2018
48	%	48	%	N/A	1

The credit facility has a cross-default provision that NSP-Wisconsin will be in default on borrowings under the facility if NSP-Wisconsin or any of its subsidiaries, whose total assets exceed 15% of NSP-Wisconsin’s consolidated total assets, default on certain indebtedness in an aggregate principal amount exceeding $75 million.

If NSP-Wisconsin does not comply with the covenant, an event of default may be declared, and if not remedied, any outstanding amounts due under the facility can be declared due by the lender. As of Dec. 31, 2019, NSP-Wisconsin was in compliance with all financial covenants.

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 facility outstanding at Dec. 31, 2019 and 2018.

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



(Millions of Dollars, Except Interest Rates)	Dec. 31, 2019		Dec. 31, 2018
Notes payable to affiliates	$	—	$	0.6
Weighted average interest rate	N/A		2.89		%

Generally, all property of NSP-Wisconsin is subject to the liens of its first mortgage indentures. Debt premiums, discounts and expenses are amortized over the life of the related debt. The premiums, discounts and expenses for refinanced debt are deferred and amortized over the life of new issuance.



Financing Instrument	Interest Rate		Maturity Date	2019			2018
City of La Crosse resource recovery bond	6.00	%	Nov 1, 2021	$	19		$	19
First mortgage bonds	3.30		June 15, 2024	100			100
First mortgage bonds	3.30		June 15, 2024	100			100
First mortgage bonds	6.38		Sept. 1, 2038	200			200
First mortgage bonds	3.70		Oct. 1, 2042	100			100
First mortgage bonds	3.75		Dec. 1, 2047	100			100
First mortgage bonds ^(a)	4.20		Sept. 1, 2048	200			200
Unamortized discount				(3		)	(3		)
Unamortized debt issuance cost				(8		)	(9		)
Total				$	808		$	807

Deferred Financing Costs — Deferred financing costs of approximately $8 million and $9 million, net of amortization, are presented as a deduction from the carrying amount of long-term debt at Dec. 31, 2019 and 2018, respectively. NSP-Wisconsin is amortizing these financing costs over the remaining maturity periods of the related debt.

Dividend Restrictions — NSP-Wisconsin’s dividends are subject to the FERC’s jurisdiction, which prohibits the payment of dividends out of capital accounts. Dividends are solely to be paid from retained earnings.

NSP-Wisconsin’s state regulatory commission additionally imposes dividend limitations, which are more restrictive than those imposed by the FERC.



Unrestricted Retained Earnings			Total Capitalization			Limit on Total Capitalization
$	11.5	million	$	1.8	billion	N/A

Equity to Total Capitalization Ratio - Required Range

Equity to Total Capitalization Ratio Actual