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Benefit Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2020

Benefit Plans and Other Postretirement Benefits [Abstract]


	Pension Benefits				Postretirement Benefits
(Millions of Dollars)	2020		2019		2020		2019
Change in Benefit Obligation:
Obligation at Jan. 1	$	144	$	140	$	13	$	13
Service cost	4		4		—		—
Interest cost	5		6		1		1


Actuarial loss	13		8		—		—
Benefit payments	(12)		(14)		(1)		(1)
Obligation at Dec. 31	$	154	$	144	$	13	$	13
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	124	$	110	$	—	$	—
Actual return on plan assets	21		21		—		—

Employer contributions	7		7		1		1
Benefit payments	(12)		(14)		(1)		(1)
Fair value of plan assets at Dec. 31	$	140	$	124	$	—	$	—
Funded status of plans at Dec. 31	$	(14)	$	(20)	$	(13)	$	(13)
Amounts recognized in the Consolidated Balance Sheet at Dec. 31:
Current liabilities	$	—	$	—	$	(1)	$	(1)
Noncurrent liabilities	(14)		(20)		(12)		(12)
Net amounts recognized	$	(14)	$	(20)	$	(13)	$	(13)


	Pension Benefits				Postretirement Benefits
Significant Assumptions Used to Measure Benefit Obligations:	2020		2019		2020		2019
Discount rate for year-end valuation	2.71	%	3.49	%	2.65	%	3.47	%
Expected average long-term increase in compensation level	3.75	%	3.75	%	N/A		N/A
Mortality table	Pri-2012		Pri-2012		Pri-2012		Pri-2012
Health care costs trend rate — initial: Pre-65	N/A		N/A		5.50	%	6.00	%
Health care costs trend rate — initial: Post-65	N/A		N/A		5.00	%	5.10	%
Ultimate trend assumption — initial: Pre-65	N/A		N/A		4.50	%	4.50	%
Ultimate trend assumption — initial: Post-65	N/A		N/A		4.50	%	4.50	%
Years until ultimate trend is reached	N/A		N/A		5		3

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost


	Pension Benefits				Postretirement Benefits
(Millions of Dollars)	2020		2019		2020		2019
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	60	$	64	$	7	$	7
Prior service credit	—		—		(1)		(1)
Total	$	60	$	64	$	6	$	6
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	4	$	4	$	—	$	—
Noncurrent regulatory assets	56		60		6		6
Total	$	60	$	64	$	6	$	6

Components of Net Periodic Benefit Costs


	Pension Benefits									Postretirement Benefits
(Millions of Dollars)	2020			2019			2018			2020			2019			2018
Service cost	$	4		$	4		$	5		$	—		$	—		$	—
Interest cost	5			6			5			1			1			1
Expected return on plan assets	(8)			(8)			(9)			—			—			—

Amortization of net loss	5			4			6			—			—			—
Settlement charge (a)	—			—			7			—			—			—
Net periodic pension cost	$	6		$	6		$	14		$	1		$	1		$	1
Effects of regulation	7			—			(3)			—			—			—
Net benefit cost recognized for financial reporting	$	13		$	6		$	11		$	1		$	1		$	1
Significant Assumptions Used to Measure Costs:
Discount rate	3.49		%	4.31		%	3.63		%	3.47		%	4.32		%	3.62		%
Expected average long-term increase in compensation level	3.75			3.75			3.75			—			—			—
Expected average long-term rate of return on assets	7.10			7.10			7.10			4.50			4.50			5.30

(a)A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2018, as a result of lump-sum distributions during the 2018 plan year, NSP-Wisconsin recorded a total pension settlement charge of $7 million in 2018, a total of $2 million of that amount was recorded in the income statement in 2018. There were no settlement charges recorded to the qualified pension plans in 2020 and 2019.

Target Asset Allocations and Plan Assets Measured at Fair Value

Target asset allocations:


	Pension Benefits				Postretirement Benefits
	2020		2019		2020		2019
Domestic and international equity securities	35	%	37	%	15	%	15	%
Long-duration fixed income and interest rate swap securities	35		30		—		—
Short-to-intermediate fixed income securities	13		14		72		72
Alternative investments	15		17		9		9
Cash	2		2		4		4
Total	100	%	100	%	100	%	100	%

The asset allocations above reflect target allocations approved in the calendar year to take effect in the subsequent year

Projected Benefit Payments for the Pension and Postretirement Benefit Plans


(Millions of Dollars)	Projected Pension Benefit Payments		Gross Projected Postretirement Health Care Benefit Payments		Expected Medicare Part D Subsidies		Net Projected Postretirement Health Care Benefit Payments
2021	$	13	$	1	$	—	$	1
2022	12		1		—		1
2023	12		1		—		1
2024	12		1		—		1
2025	12		1		—		1
2026-2030	57		3		—		3