Segments and Related Information

12 Months Ended

Dec. 31, 2023

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, purchases, transmits, distributes and sells electricity in Michigan and Wisconsin.

•Regulated Natural Gas — The regulated natural gas utility segment purchases, transports, stores, distributes and sells natural gas in portions of Michigan and Wisconsin.

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)	2023		2022		2021
Regulated Electric
Total revenues (a)	$	1,019	$	1,002	$	922
Depreciation and amortization	142		131		120
Interest charges and financing costs	45		38		36
Income tax expense	38		29		27
Net income	126		105		98
Regulated Natural Gas
Operating revenues — external	$	157	$	198	$	182
Intersegment revenue	1		—		1
Total revenues	$	158	$	198	$	183
Depreciation and amortization	28		27		27
Interest charges and financing costs	5		4		4
Income tax expense	2		6		2
Net income	9		17		7
All Other
Total revenues	$	1	$	1	$	1
Income tax expense	—		—		1
Net income	1		3		3
Consolidated Total
Total revenues (a)	$	1,178	$	1,201	$	1,106
Reconciling eliminations	(1)		—		(1)
Total operating revenues	$	1,177	$	1,201	$	1,105
Depreciation and amortization	170		158		147
Interest charges and financing costs	50		42		40
Income tax expense	40		35		30
Net income	136		125		108

(a)Operating revenues include $204 million, $202 million and $189 million of affiliate electric revenue for the years ended Dec. 31, 2023, 2022 and 2021, respectively. See Note 12 for further information.