Segments and Related Information

12 Months Ended

Dec. 31, 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, 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)	2022		2021		2020
Regulated Electric
Operating revenues — external (a)	$	1,002	$	922	$	855
Intersegment revenue	—		—		1
Total revenues	$	1,002	$	922	$	856
Depreciation and amortization	131		120		108
Interest charges and financing costs	38		36		34
Income tax expense	29		27		12
Net income	105		98		98
Regulated Natural Gas
Operating revenues — external	$	198	$	182	$	119
Intersegment revenue	—		1		—
Total revenues	$	198	$	183	$	119
Depreciation and amortization	27		27		48
Interest charges and financing costs	4		4		4
Income tax expense (benefit)	6		2		(20)
Net income	17		7		7
All Other
Total revenues	$	1	$	1	$	—
Income tax expense	—		1		1
Net income	3		3		2
Consolidated Total
Total revenues (a)	$	1,201	$	1,106	$	975
Reconciling eliminations	—		(1)		(1)
Total operating revenues	$	1,201	$	1,105	$	974
Depreciation and amortization	158		147		156
Interest charges and financing costs	42		40		38
Income tax expense (benefit)	35		30		(7)
Net income	125		108		107

(a)    Operating revenues include $202 million, $189 million and $168 million of affiliate electric revenue for the years ended Dec. 31, 2022, 2021 and 2020, respectively. See Note 12 for further information.