Segments and Related Information

12 Months Ended

Dec. 31, 2021

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, transmits and distributes electricity in Wisconsin and Michigan.

•Regulated Natural Gas — The regulated natural gas utility segment 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 that would be 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)	2021		2020		2019
Regulated Electric
Operating revenues — external (a)	$	922	$	855	$	845
Intersegment revenue	—		1		—
Total revenues	$	922	$	856	$	845
Depreciation and amortization	120		108		109
Interest charges and financing costs	36		34		34
Income tax expense	27		12		13
Net income	98		98		68
Regulated Natural Gas
Operating revenues — external	$	182	$	119	$	136
Intersegment revenue	1		—		—
Total revenues	$	183	$	119	$	136
Depreciation and amortization	27		48		29
Interest charges and financing costs	4		4		4
Income tax expense (benefit)	2		(20)		2
Net income	7		7		10
All Other
Total revenues	$	1	$	—	$	—
Income tax expense	1		1		1
Net income	3		2		1
Consolidated Total
Total revenues (a)	$	1,106	$	975	$	981
Reconciling eliminations	(1)		(1)		—
Total operating revenues	$	1,105	$	974	$	981
Depreciation and amortization	147		156		138
Interest charges and financing costs	40		38		38
Income tax expense (benefit)	30		(7)		16
Net income	108		107		79

(a)    Operating revenues include $189 million, $168 million and $177 million of affiliate electric revenue for the years ended Dec. 31, 2021, 2020 and 2019, respectively. See Note 12 for further information.