Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level

Recurring Derivative Fair Value Measurements

Impact of derivative activity:

Changes in the fair value of natural gas commodity derivatives resulted in $1 million of net gains for the three months ended March 31, 2023, which were recognized as regulatory assets and liabilities. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Immaterial net gains were recognized for the three months ended March 31, 2022.

During the three months ended March 31, 2023 and 2022, there were immaterial natural gas commodity derivatives settlement losses and gains.

During the three months ended March 31, 2023, $2 million of pre-tax losses were recognized during the period in income related to option premium amortization. During the three months ended March 31, 2022, similar activity was immaterial.

NSP-Wisconsin had no outstanding derivative assets or liabilities measured at fair value as of March 31, 2023. Derivative assets and liabilities measured at fair value on a recurring basis were as follows as of Dec. 31, 2022:

	Dec. 31, 2022
	Fair Value						Fair Value Total		Netting (a)		Total
(Millions of Dollars)	Level 1		Level 2		Level 3
Current derivative assets
Natural gas commodity (b)	$	—	$	2	$	—	$	2	$	—	$	2
Current derivative liabilities
Natural gas commodity (b)	$	—	$	1	$	—	$	1	$	—	$	1

(a)NSP-Wisconsin nets derivative instruments and related collateral on its consolidated balance sheets when supported by a legally enforceable master netting agreement. Counterparty netting excludes settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.

(b)$2 million included in prepayments and other current assets and $1 million included in other current liabilities at Dec. 31, 2022 on the consolidated balance sheet.

Carrying Amount and Fair Value of Long-term Debt

	March 31, 2023				Dec. 31, 2022
(Millions of Dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	1,087	$	1,006	$	1,086	$	980