Segments and Related Information

12 Months Ended

Dec. 31, 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.

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

NSP-Wisconsin also presents All 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:

(Millions of Dollars)	2020		2019		2018
Regulated Electric
Operating revenues - external (a)	$	855	$	845	$	879
Intersegment revenue	1		—		—
Total revenues	$	856	$	845	$	879
Depreciation and amortization	108		109		98
Interest charges and financing costs	34		34		32
Income tax expense	12		13		28
Net income	98		68		85
Regulated Natural Gas
Total revenues	$	119	$	136	$	142
Depreciation and amortization	48		29		28
Interest charges and financing costs	4		4		3
Income tax (benefit) expense	(20)		2		5
Net income	7		10		13
All Other
Total revenues (a)	$	—	$	—	$	1
Income tax expense (benefit)	1		1		(1)
Net income	2		1		—
Consolidated Total
Total revenues (a)	$	975	$	981	$	1,022
Reconciling eliminations	(1)		—		—
Total operating revenues	$	974	$	981	$	1,022
Depreciation and amortization	156		138		126
Interest charges and financing costs	38		38		35
Income tax (benefit) expense	(7)		16		32
Net income	107		79		98

(a)    Operating revenues include $168 million, $177 million and $158 million of intercompany revenue for the years ended Dec. 31, 2020, 2019 and 2018, respectively. See Note 12 for further information.