x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Wisconsin
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39-0508315
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1414 West Hamilton Avenue
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Eau Claire, Wisconsin
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54701
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer x
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Smaller reporting company o
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(Do not check if smaller reporting company)
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Class
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Outstanding at April 30, 2012
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Common Stock, $100 par value
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933,000 shares
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PART I — FINANCIAL INFORMATION
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Item l —
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3
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Item 2 —
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15
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Item 4 —
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18
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PART II — OTHER INFORMATION
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Item 1 —
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18
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Item 1A —
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18
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Item 4 —
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18
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Item 5 —
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18
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Item 6 —
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19
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20
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Certifications Pursuant to Section 302
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1
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Certifications Pursuant to Section 906
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1
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Statement Pursuant to Private Litigation
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1
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Three Months Ended March 31
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||||||||
2012
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2011
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|||||||
Operating revenues
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||||||||
Electric
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$ | 182,001 | $ | 184,368 | ||||
Natural gas
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41,492 | 53,483 | ||||||
Other
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306 | 257 | ||||||
Total operating revenues
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223,799 | 238,108 | ||||||
Operating expenses
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||||||||
Electric fuel and purchased power
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102,614 | 105,482 | ||||||
Cost of natural gas sold and transported
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26,879 | 37,264 | ||||||
Operating and maintenance expenses
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38,500 | 39,588 | ||||||
Conservation program expenses
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3,502 | 3,061 | ||||||
Depreciation and amortization
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17,009 | 16,739 | ||||||
Taxes (other than income taxes)
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6,381 | 6,077 | ||||||
Total operating expenses
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194,885 | 208,211 | ||||||
Operating income
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28,914 | 29,897 | ||||||
Other income, net
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500 | 74 | ||||||
Allowance for funds used during construction — equity
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999 | 106 | ||||||
Interest charges and financing costs
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||||||||
Interest charges — includes other financing costs of $426 and $364, respectively
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6,015 | 6,003 | ||||||
(86 | ) | (38 | ) | |||||
Total interest charges and financing costs
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5,929 | 5,965 | ||||||
Income before income taxes
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24,484 | 24,112 | ||||||
Income taxes
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9,606 | 9,469 | ||||||
Net income
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$ | 14,878 | $ | 14,643 |
Three Months Ended March 31
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||||||||
2012
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2011
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|||||||
Net income
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$ | 14,878 | $ | 14,643 | ||||
Other comprehensive income
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||||||||
Derivative instruments:
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||||||||
Reclassification of losses to net income, net of tax of $13 for each of the three months ended March 31, 2012 and 2011
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19 | 19 | ||||||
Other comprehensive income
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19 | 19 | ||||||
Comprehensive income
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$ | 14,897 | $ | 14,662 |
Three Months Ended March 31
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2012
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2011
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|||||||
Operating activities
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||||||||
Net income
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$ | 14,878 | $ | 14,643 | ||||
Adjustments to reconcile net income to cash provided by operating activities:
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||||||||
Depreciation and amortization
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17,319 | 17,065 | ||||||
Deferred income taxes
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5,304 | 8,453 | ||||||
Amortization of investment tax credits
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(157 | ) | (154 | ) | ||||
Allowance for equity funds used during construction
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(999 | ) | (106 | ) | ||||
Net derivative losses
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32 | 31 | ||||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable
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(7,818 | ) | (5,762 | ) | ||||
Accrued unbilled revenues
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14,184 | 12,221 | ||||||
Inventories
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7,886 | 9,982 | ||||||
Other current assets
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6,395 | 5,854 | ||||||
Accounts payable
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(3,996 | ) | (16,461 | ) | ||||
Net regulatory assets and liabilities
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3,359 | 1,346 | ||||||
Pension and other employee benefit obligations
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(12,473 | ) | (7,038 | ) | ||||
Other current liabilities
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2,082 | 40 | ||||||
Change in other noncurrent assets
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(197 | ) | 45 | |||||
Change in other noncurrent liabilities
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(21 | ) | (1,380 | ) | ||||
Net cash provided by operating activities
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45,778 | 38,779 | ||||||
Investing activities
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||||||||
Utility capital/construction expenditures
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(36,748 | ) | (26,200 | ) | ||||
Allowance for equity funds used during construction
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999 | 106 | ||||||
Other, net
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1,034 | (174 | ) | |||||
Net cash used in investing activities
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(34,715 | ) | (26,268 | ) | ||||
Financing activities
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||||||||
Proceeds from short-term borrowings, net
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5,000 | 31,000 | ||||||
Proceeds from notes payable to affiliate
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50 | 111,300 | ||||||
Repayments of notes payable to affiliate
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- | (148,300 | ) | |||||
Repayments of long-term debt
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(16 | ) | (13 | ) | ||||
Dividends paid to parent
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(16,225 | ) | (8,442 | ) | ||||
Net cash used in financing activities
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(11,191 | ) | (14,455 | ) | ||||
Net change in cash and cash equivalents
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(128 | ) | (1,944 | ) | ||||
Cash and cash equivalents at beginning of period
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1,571 | 6,445 | ||||||
Cash and cash equivalents at end of period
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$ | 1,443 | $ | 4,501 | ||||
Supplemental disclosure of cash flow information:
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Cash paid for interest (net of amounts capitalized)
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$ | (6,546 | ) | $ | (6,430 | ) | ||
Cash (paid) received for income taxes, net
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(833 | ) | 440 | |||||
Supplemental disclosure of non-cash investing transactions:
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Property, plant and equipment additions in accounts payable
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$ | 4,406 | $ | 1,630 |
March 31, 2012
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Dec. 31, 2011
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Assets
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||||||||
Current assets
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||||||||
Cash and cash equivalents
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$ | 1,443 | $ | 1,571 | ||||
Accounts receivable, net
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46,488 | 51,838 | ||||||
Accrued unbilled revenues
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34,484 | 48,668 | ||||||
Inventories
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17,817 | 25,703 | ||||||
Regulatory assets
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11,357 | 14,133 | ||||||
Prepaid taxes
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15,814 | 21,841 | ||||||
Deferred income taxes
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6,136 | - | ||||||
Prepayments and other
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2,623 | 2,991 | ||||||
Total current assets
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136,162 | 166,745 | ||||||
Property, plant and equipment, net
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1,223,762 | 1,207,698 | ||||||
Other assets
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||||||||
Regulatory assets
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230,364 | 229,910 | ||||||
Other investments
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3,114 | 4,148 | ||||||
Other
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3,127 | 2,970 | ||||||
Total other assets
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236,605 | 237,028 | ||||||
Total assets
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$ | 1,596,529 | $ | 1,611,471 | ||||
Liabilities and Equity
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||||||||
Current liabilities
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||||||||
Current portion of long-term debt
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$ | 1,276 | $ | 1,286 | ||||
Short-term debt
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71,000 | 66,000 | ||||||
Notes payable to affiliates
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550 | 500 | ||||||
Accounts payable
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21,642 | 30,897 | ||||||
Accounts payable to affiliates
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24,175 | 23,285 | ||||||
Dividends payable to parent
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- | 8,107 | ||||||
Regulatory liabilities
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6,807 | 16,609 | ||||||
Environmental liabilities
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31,003 | 30,699 | ||||||
Taxes accrued
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3,973 | 1,238 | ||||||
Accrued interest
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5,549 | 6,521 | ||||||
Derivative instruments
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- | 2,514 | ||||||
Other
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9,410 | 10,155 | ||||||
Total current liabilities
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175,385 | 197,811 | ||||||
Deferred credits and other liabilities
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||||||||
Deferred income taxes
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246,292 | 234,222 | ||||||
Deferred investment tax credits
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8,642 | 8,499 | ||||||
Regulatory liabilities
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120,270 | 119,187 | ||||||
Environmental liabilities
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79,446 | 79,399 | ||||||
Customer advances
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16,045 | 15,765 | ||||||
Pension and employee benefit obligations
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47,752 | 60,328 | ||||||
Other
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6,662 | 7,024 | ||||||
Total deferred credits and other liabilities
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525,109 | 524,424 | ||||||
Commitments and contingencies
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||||||||
Capitalization
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||||||||
Long-term debt
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368,104 | 368,083 | ||||||
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at March 31, 2012 and Dec. 31, 2011, respectively
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93,300 | 93,300 | ||||||
Additional paid in capital
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187,071 | 187,071 | ||||||
Retained earnings
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248,055 | 241,296 | ||||||
Accumulated other comprehensive loss
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(495 | ) | (514 | ) | ||||
Total common stockholder’s equity
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527,931 | 521,153 | ||||||
Total liabilities and equity
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$ | 1,596,529 | $ | 1,611,471 |
1.
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Summary of Significant Accounting Policies
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2.
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Accounting Pronouncements
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3.
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Selected Balance Sheet Data
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(Thousands of Dollars)
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March 31, 2012
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Dec. 31, 2011
|
||||||
Accounts receivable, net (a)
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||||||||
Accounts receivable
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$ | 51,132 | $ | 56,604 | ||||
Less allowance for bad debts
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(4,644 | ) | (4,766 | ) | ||||
$ | 46,488 | $ | 51,838 | |||||
Inventories
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||||||||
Materials and supplies
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$ | 6,068 | $ | 5,838 | ||||
Fuel
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9,283 | 9,335 | ||||||
Natural gas
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2,466 | 10,530 | ||||||
$ | 17,817 | $ | 25,703 | |||||
Property, plant and equipment, net
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||||||||
Electric plant
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$ | 1,704,038 | $ | 1,684,537 | ||||
Natural gas plant
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214,655 | 213,665 | ||||||
Common and other property
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112,213 | 113,597 | ||||||
Construction work in progress
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64,528 | 54,627 | ||||||
Total property, plant and equipment
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2,095,434 | 2,066,426 | ||||||
Less accumulated depreciation
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(871,672 | ) | (858,728 | ) | ||||
$ | 1,223,762 | $ | 1,207,698 |
(a)
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Accounts receivable, net includes $51 due from affiliates as of March 31, 2012.
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4.
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Income Taxes
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(Millions of Dollars)
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March 31, 2012
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Dec. 31, 2011
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||||||
NOL and tax credit carryforwards
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$ | (0.9 | ) | $ | (1.1 | ) |
5.
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Commitments and Contingencies
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(Millions of Dollars)
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March 31, 2012
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Dec. 31, 2011
|
||||||
Guarantee issued and outstanding
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$ | 1.0 | $ | 1.0 | ||||
Current exposure under the guarantee
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0.4 | 0.5 |
6.
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Borrowings and Other Financing Instruments
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(Amounts in Millions, Except Interest Rates)
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Three Months Ended
March 31, 2012
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Twelve Months Ended
Dec. 31, 2011
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||||||
Borrowing limit
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$
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150
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$
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150
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Amount outstanding at period end
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71
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66
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||||||
Average amount outstanding
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65
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24
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||||||
Maximum amount outstanding
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89
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70
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||||||
Weighted average interest rate, computed on a daily basis
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0.40
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%
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0.37
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%
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||||
Weighted average interest rate at period end
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0.41
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0.46
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Credit Facility
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Drawn (a)
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Available
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|||||||
$ | 150.0 | $ | 71.0 | $ | 79.0 |
(a)
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Includes outstanding commercial paper.
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(Amounts in Millions, Except Interest Rates)
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March 31, 2012
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Dec. 31, 2011
|
||||||
Notes payable to affiliates
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$
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0.6
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$
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0.5
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||||
Weighted average interest rate
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0.41
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%
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0.46
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%
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7.
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Fair Value of Financial Assets and Liabilities
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(Amounts in Thousands) (a)
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Dec. 31, 2011
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|||
MMBtu of natural gas
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1,393 |
(a)
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Amounts are not reflective of net positions in the underlying commodities.
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Dec. 31, 2011 | ||||||||||||||||
Fair Value | ||||||||||||||||
Fair Value
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||||||||||||||||
(Thousands of Dollars)
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Level 1
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Level 2
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Level 3
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Total
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||||||||||||
Current derivative liabilities
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||||||||||||||||
Natural gas commodity
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$ | 418 | $ | 2,096 | $ | - | $ | 2,514 |
March 31, 2012
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Dec. 31, 2011
|
|||||||||||||||
Carrying
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Carrying
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|||||||||||||||
(Thousands of Dollars)
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Amount
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Fair Value
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Amount
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Fair Value
|
||||||||||||
Long-term debt, including current portion
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$ | 369,380 | $ | 459,012 | $ | 369,369 | $ | 474,356 |
8.
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Other Income, Net
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Three Months Ended March 31
|
||||||||
(Thousands of Dollars)
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2012
|
2011
|
||||||
Interest income
|
$ | 657 | $ | 171 | ||||
Insurance policy expense
|
(150 | ) | (76 | ) | ||||
Other nonoperating expense
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(7 | ) | (21 | ) | ||||
Other income, net
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$ | 500 | $ | 74 |
9.
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Segment Information
|
|
·
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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.
|
|
·
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NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan.
|
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·
|
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.
|
Regulated
|
Regulated
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All
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Reconciling
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Consolidated
|
||||||||||||||||
(Thousands of Dollars)
|
Electric
|
Natural Gas
|
Other
|
Eliminations
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Total
|
|||||||||||||||
Three Months Ended March 31, 2012
|
||||||||||||||||||||
Operating revenues from external customers
|
$ | 182,001 | $ | 41,492 | $ | 306 | $ | - | $ | 223,799 | ||||||||||
Intersegment revenues
|
87 | 203 | - | (290 | ) | - | ||||||||||||||
Total revenues
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$ | 182,088 | $ | 41,695 | $ | 306 | $ | (290 | ) | $ | 223,799 | |||||||||
Net income
|
$ | 11,248 | $ | 3,400 | $ | 230 | $ | - | $ | 14,878 | ||||||||||
Three Months Ended March 31, 2011
|
||||||||||||||||||||
Operating revenues from external customers
|
$ | 184,368 | $ | 53,483 | $ | 257 | $ | - | $ | 238,108 | ||||||||||
Intersegment revenues
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100 | 562 | - | (662 | ) | - | ||||||||||||||
Total revenues
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$ | 184,468 | $ | 54,045 | $ | 257 | $ | (662 | ) | $ | 238,108 | |||||||||
Net income
|
$ | 10,381 | $ | 4,210 | $ | 52 | $ | - | $ | 14,643 |
10.
|
Benefit Plans and Other Postretirement Benefits
|
Three Months Ended March 31
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Postretirement Health
|
||||||||||||||||
(Thousands of Dollars)
|
Pension Benefits
|
Care Benefits
|
||||||||||||||
Service cost
|
$ | 1,134 | $ | 902 | $ | 5 | $ | 4 | ||||||||
Interest cost
|
1,910 | 2,018 | 264 | 272 | ||||||||||||
Expected return on plan assets
|
(2,611 | ) | (2,901 | ) | (13 | ) | (19 | ) | ||||||||
Amortization of transition obligation
|
- | - | 43 | 43 | ||||||||||||
Amortization of prior service cost (credit)
|
443 | 474 | (4 | ) | (4 | ) | ||||||||||
Amortization of net loss
|
1,435 | 968 | 114 | 88 | ||||||||||||
Net benefit cost recognized for financial reporting
|
$ | 2,311 | $ | 1,461 | $ | 409 | $ | 384 |
Three Months Ended March 31
|
||||||||
(Millions of Dollars)
|
2012
|
2011
|
||||||
Electric revenues
|
$ | 182 | $ | 184 | ||||
Electric fuel and purchased power
|
(103 | ) | (105 | ) | ||||
Electric margin
|
$ | 79 | $ | 79 |
(Millions of Dollars)
|
2012 vs. 2011
|
|||
Estimated impact of weather
|
$ | (5 | ) | |
Firm wholesale
|
(2 | ) | ||
Retail rate increase
|
2 | |||
Retail sales increase (excluding weather impact)
|
1 | |||
Sales mix and demand revenue
|
1 | |||
Other, net
|
1 | |||
Total decrease in electric revenues
|
$ | (2 | ) |
(Millions of Dollars)
|
2012 vs. 2011
|
|||
Estimated impact of weather
|
$
|
(5
|
) | |
Firm wholesale
|
(1
|
) | ||
Interchange agreement billing with NSP-Minnesota
|
3
|
|||
Retail rate increase
|
2
|
|||
Retail sales increase (excluding weather impact)
|
1
|
|||
Total change in electric margin
|
$
|
-
|
Three Months Ended March 31
|
||||||||
(Millions of Dollars)
|
2012
|
2011
|
||||||
Natural gas revenues
|
$ | 41 | $ | 53 | ||||
Cost of natural gas sold and transported
|
(27 | ) | (37 | ) | ||||
Natural gas margin
|
$ | 14 | $ | 16 |
(Millions of Dollars)
|
2012 vs. 2011
|
|||
Purchased natural gas adjustment clause recovery
|
$ | (11 | ) | |
Estimated impact of weather
|
(3 | ) | ||
Retail rate increase
|
1 | |||
Other, net
|
1 | |||
Total decrease in natural gas revenues
|
$ | (12 | ) |
(Millions of Dollars)
|
2012 vs. 2011
|
|||
Estimated impact of weather
|
$ | (3 | ) | |
Retail rate increase
|
1 | |||
Total decrease in natural gas margin
|
$ | (2 | ) |
Year Ended Dec. 31
|
||||||||||||
(Thousands of Dollars)
|
2011
|
2010
|
2009
|
|||||||||
Net income
|
$ | 51,006 | $ | 42,749 | $ | 47,363 | ||||||
Other comprehensive income
|
||||||||||||
Derivative instruments:
|
||||||||||||
Reclassification of losses to net income, net of tax of $51 for each of the years ended Dec. 31, 2011, 2010 and 2009
|
76 | 76 | 76 | |||||||||
Other comprehensive income
|
76 | 76 | 76 | |||||||||
Comprehensive income
|
$ | 51,082 | $ | 42,825 | $ | 47,439 |
*
|
Indicates incorporation by reference
|
†
|
Furnished, herewith, not filed. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
3.01*
|
Amended and Restated Articles of Incorporation of NSP-Wisconsin (Exhibit 3.01 to Form S-4 (file no. 333-112033) Jan. 21, 2004).
|
|
3.02*
|
By-Laws of NSP-Wisconsin as amended June 3, 2008 (Exhibit 3.02 to Form 10-Q (file no. 001-03140) Aug. 4, 2008).
|
|
Principal Executive Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Principal Financial Officer’s certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
Statement pursuant to Private Securities Litigation Reform Act of 1995.
|
||
101 †
|
The following materials from NSP-Wisconsin’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 are formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Balance Sheets, (v) Notes to Condensed Consolidated Financial Statements, and (vi) document and entity information.
|
Northern States Power Company (a Wisconsin corporation)
|
||
April 30, 2012
|
||
By:
|
/s/ JEFFREY S. SAVAGE
|
|
Jeffrey S. Savage
|
||
Vice President and Controller
|
||
/s/ TERESA S. MADDEN
|
||
Teresa S. Madden
|
||
Senior Vice President, Chief Financial Officer and Director
|
1.
|
I have reviewed this report on Form 10-Q of Northern States Power Company (a Wisconsin corporation);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: April 30, 2012
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/s/ MARK E. STOERING
|
|
Mark E. Stoering
|
|
President, Chief Executive Officer and Director
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1.
|
I have reviewed this report on Form 10-Q of Northern States Power Company (a Wisconsin corporation);
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: April 30, 2012
|
|
/s/ TERESA S. MADDEN
|
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Teresa S. Madden
|
|
Senior Vice President, Chief Financial Officer and Director
|
(1)
|
The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NSP-Wisconsin as of the dates and for the periods expressed in the Form 10-Q.
|
Date: April 30, 2012
|
|
/s/ MARK E. STOERING
|
|
Mark E. Stoering
|
|
President, Chief Executive Officer and Director
|
|
/s/ TERESA S. MADDEN
|
|
Teresa S. Madden
|
|
Senior Vice President, Chief Financial Officer and Director
|
|
·
|
Economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures;
|
|
·
|
The risk of a significant slowdown in growth or decline in the U.S. economy, the risk of delay in growth recovery in the U.S. economy or the risk of increased cost for insurance premiums, security and other items as a consequence of past or future terrorist attacks;
|
|
·
|
Trade, monetary, fiscal, taxation and environmental policies of governments, agencies and similar organizations in geographic areas where NSP-Wisconsin has a financial interest;
|
|
·
|
Customer business conditions, including demand for their products or services and supply of labor and materials used in creating their products and services;
|
|
·
|
Financial or regulatory accounting principles or policies imposed by the FASB, the SEC, the FERC and similar entities with regulatory oversight;
|
|
·
|
Availability or cost of capital such as changes in: interest rates; market perceptions of the utility industry, NSP-Wisconsin, Xcel Energy Inc. or any of its other subsidiaries; or security ratings;
|
|
·
|
Factors affecting utility and nonutility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages, maintenance or repairs; unanticipated changes to fossil fuel, nuclear fuel or natural gas supply costs or availability due to higher demand, shortages, transportation problems or other developments; nuclear or environmental incidents; cyber incidents; or electric transmission or natural gas pipeline constraints;
|
|
·
|
Employee workforce factors, including loss or retirement of key executives, collective bargaining agreements with union employees, or work stoppages;
|
|
·
|
Increased competition in the utility industry or additional competition in the markets served by NSP-Wisconsin, Xcel Energy Inc. and its other subsidiaries;
|
|
·
|
State, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures and affect the speed and degree to which competition enters the electric and natural gas markets; industry restructuring initiatives; transmission system operation and/or administration initiatives; recovery of investments made under traditional regulation; nature of competitors entering the industry; retail wheeling; a new pricing structure; and former customers entering the generation market;
|
|
·
|
Environmental laws and regulations, including legislation and regulations relating to climate change, and the associated cost of compliance;
|
|
·
|
Rate-setting policies or procedures of regulatory entities, including environmental externalities, which are values established by regulators assigning environmental costs to each method of electricity generation when evaluating generation resource options;
|
|
·
|
Nuclear regulatory policies and procedures, including operating regulations and spent nuclear fuel storage;
|
|
·
|
Social attitudes regarding the utility and power industries;
|
|
·
|
Cost and other effects of legal and administrative proceedings, settlements, investigations and claims;
|
|
·
|
Technological developments that result in competitive disadvantages and create the potential for impairment of existing assets;
|
|
·
|
Risks associated with implementations of new technologies; and
|
|
·
|
Other business or investment considerations that may be disclosed from time to time in NSP-Wisconsin’s SEC filings, including “Risk Factors” in Item 1A of NSP-Wisconsin’s form 10-K for the year ended Dec. 31, 2011, or in other publicly disseminated written documents.
|
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Management's Opinion
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Management's Opinion [Abstract] | |
Management's Opinion | In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (GAAP), the financial position of NSP-Wisconsin and its subsidiaries as of March 31, 2012 and Dec. 31, 2011, and the results of its operations and its cash flows for the three months ended March 31, 2012 and 2011. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2012 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. The Dec. 31, 2011 balance sheet information has been derived from the audited 2011 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2011. These notes to the consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP on an annual basis have been condensed or omitted pursuant to such rules and regulations. For further information, refer to the consolidated financial statements and notes thereto, included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2011, filed with the SEC on Feb. 27, 2012. Due to the seasonality of NSP-Wisconsin's electric and natural gas sales, interim results are not necessarily an appropriate base from which to project annual results. |