Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

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; and

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

NSP-Wisconsin presents Other, which includes operating segments with revenues below the necessary quantitative thresholds. Those operating segments 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. As an integrated electric and natural gas utility, NSP-Wisconsin operates significant assets that are not dedicated to a specific business segment. Reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations, which may not necessarily reflect the assets 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)	2020		2019
Regulated Electric
Operating revenues (a)	$	199.3	$	207.9
Intersegment revenues	0.1		0.1
Total operating revenue	$	199.4	$	208.0
Net income	16.3		10.9
Regulated Natural Gas
Operating revenues	$	19.0	$	20.9
Intersegment revenues	0.2		—
Total operating revenue	$	19.2	$	20.9
Net loss	(2.9)		(1.3)
All Other
Operating revenues	$	0.2	$	0.1
Net loss	(1.3)		(1.0)
Consolidated Total
Operating revenues (a)	$	218.8	$	229.0
Reconciling eliminations	(0.3)		(0.1)
Total operating revenues	$	218.5	$	228.9
Net income	12.1		8.6

^(a) Operating revenues include $41.5 million and $43.5 million of affiliate electric revenue for the three months ended June 30, 2020 and 2019, respectively.

	Six Months Ended June 30
(Millions of Dollars)	2020		2019
Regulated Electric
Operating revenues (a)	$	411.1	$	422.9
Intersegment revenues	0.2		0.2
Total operating revenue	$	411.3	$	423.1
Net income	41.0		24.1
Regulated Natural Gas
Operating revenues	$	64.2	$	82.0
Intersegment revenues	0.3		0.2
Total operating revenues	$	64.5	$	82.2
Net income	6.0		9.2
All Other
Operating revenues	$	0.2	$	0.2
Net loss	(1.3)		(0.7)
Consolidated Total
Operating revenues (a)	$	476.0	$	505.5
Reconciling eliminations	(0.5)		(0.4)
Total operating revenues	$	475.5	$	505.1
Net income	45.7		32.6

^(a) Operating revenues include $82.4 million and $87.6 million of affiliate electric revenue for the six months ended June 30, 2020 and 2019, respectively.