Segment Information

9 Months Ended

Sep. 30, 2022

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.

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:

	Three Months Ended Sept. 30
(Millions of Dollars)	2022		2021
Regulated Electric
Total revenues (a)	$	274	$	252
Net income	42		38
Regulated Natural Gas
Operating revenues — external	$	20	$	22
Intersegment revenue	—		1
Total revenues	$	20	$	23
Net (loss)	(3)		(4)
All Other
Net income	$	1	$	2
Consolidated Total
Total revenues (a)	$	294	$	275
Reconciling eliminations	—		(1)
Total operating revenues	$	294	$	274
Net income	40		36

(a)Total revenues include $51 million and $49 million of affiliate electric revenue for the three months ended Sept. 30, 2022 and 2021, respectively.

	Nine Months Ended Sept. 30
(Millions of Dollars)	2022		2021
Regulated Electric
Total revenues (a)	$	767	$	700
Net income	89		77
Regulated Natural Gas
Operating revenues	$	133	$	110
Intersegment revenue	—		1
Total revenues	$	133	$	111
Net income	11		3
All Other
Net income	$	2	$	2
Consolidated Total
Operating revenues (a)	$	900	$	811
Reconciling eliminations	—		(1)
Total revenues	$	900	$	810
Net income	102		82

(a)Total revenues include $150 million and $141 million of affiliate electric revenue for the nine months ended Sept. 30, 2022 and 2021, respectively