Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

10. Segment Information

NSP-Wisconsin has the following reportable segments: regulated electric utility, regulated natural gas utility 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 utility 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 utility 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 Sept. 30, 2011
Operating revenues from external customers	$	210,810	$	13,312		$	346	$	-		$	224,468
Intersegment revenues		83		212			-		(295	)		-
Total revenues	$	210,893	$	13,524		$	346	$	(295	)	$	224,468
Net income (loss)	$	21,178	$	(1,835	)	$	630	$	-		$	19,973
Three Months Ended Sept. 30, 2010
Operating revenues from external customers	$	198,617	$	12,186		$	265	$	-		$	211,068
Intersegment revenues		84		226			-		(310	)		-
Total revenues	$	198,701	$	12,412		$	265	$	(310	)	$	211,068
Net income (loss)	$	18,749	$	(1,639	)	$	514	$	-		$	17,624

	Regulated		Regulated		All		Reconciling			Consolidated
(Thousands of Dollars)	Electric		Natural Gas		Other		Eliminations			Total
Nine Months Ended Sept. 30, 2011
Operating revenues from external customers	$	573,870	$	86,675	$	881	$	-		$	661,426
Intersegment revenues		299		1,050		-		(1,349	)		-
Total revenues	$	574,169	$	87,725	$	881	$	(1,349	)	$	661,426
Net income	$	40,698	$	1,757	$	639	$	-		$	43,094
Nine Months Ended Sept. 30, 2010
Operating revenues from external customers	$	535,761	$	78,948	$	725	$	-		$	615,434
Intersegment revenues		265		914		-		(1,179	)		-
Total revenues	$	536,026	$	79,862	$	725	$	(1,179	)	$	615,434
Net income	$	31,735	$	1,585	$	527	$	-		$	33,847