Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

10. Segment Information

NSP-Wisconsin has the following reportable segments: regulated electric, regulated natural gas and all other.

· NSP-Wisconsin's regulated electric utility segment generates electricity which is transmitted and distributed in Wisconsin and Michigan.  In addition, this segment includes sales for resale and provides wholesale transmission service to various entities primarily in Wisconsin.

· NSP-Wisconsin's regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan.

· Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category.  Those primarily include investments in rental housing projects that qualify for low-income housing tax credits.

Operating results from the regulated electric utility and regulated natural gas serve as the primary basis for the chief operating decision maker to evaluate the dual performance of NSP-Wisconsin.  The accounting policies of the segments are the same as those described in Note 1 to the consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2010.  These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment.

Asset and capital expenditure information is not provided for NSP-Wisconsin's reportable segments because as an integrated electric and natural gas utility, NSP-Wisconsin operates significant assets that are not dedicated to a specific business segment, and 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.

To report income from continuing operations for regulated electric and regulated natural gas utility segments the majority of costs are directly assigned to each segment.  However, some costs, such as common depreciation, common operating and maintenance (O&M) expenses and interest expense are allocated based on cost causation allocators.  A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising.

	Regulated		Regulated			All			Reconciling			Consolidated
(Thousands of Dollars)	Electric		Natural Gas			Other			Eliminations			Total
Three Months Ended June 30, 2011
Operating revenues from external customers	$	178,692	$	19,880		$	278		$	-		$	198,850
Intersegment revenues		116		276			-			(392	)		-
Total revenues	$	178,808	$	20,156		$	278		$	(392	)	$	198,850
Net income (loss)	$	9,139	$	(618	)	$	(43	)	$	-		$	8,478
Three Months Ended June 30, 2010
Operating revenues from external customers	$	164,082	$	15,281		$	234		$	-		$	179,597
Intersegment revenues		94		418			-			(512	)		-
Total revenues	$	164,176	$	15,699		$	234		$	(512	)	$	179,597
Net income (loss)	$	3,300	$	(759	)	$	138		$	-		$	2,679

	Regulated		Regulated		All		Reconciling			Consolidated
(Thousands of Dollars)	Electric		Natural Gas		Other		Eliminations			Total
Six Months Ended June 30, 2011
Operating revenues from external customers	$	363,060	$	73,363	$	535	$	-		$	436,958
Intersegment revenues		216		838		-		(1,054	)		-
Total revenues	$	363,276	$	74,201	$	535	$	(1,054	)	$	436,958
Net income	$	19,520	$	3,592	$	9	$	-		$	23,121
Six Months Ended June 30, 2010
Operating revenues from external customers	$	337,144	$	66,762	$	460	$	-		$	404,366
Intersegment revenues		181		688		-		(869	)		-
Total revenues	$	337,325	$	67,450	$	460	$	(869	)	$	404,366
Net income	$	12,986	$	3,224	$	13	$	-		$	16,223