Segments and Related Information

12 Months Ended

Dec. 31, 2012

Segments and Related Information [Abstract]

Segments and Related Information

13. Segments and Related Information

Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by NSP-Wisconsin's chief operating decision maker. 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 reportable segment.

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.

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 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.

The accounting policies of the segments are the same as those described in Note 1.

	Regulated		Regulated		All			Reconciling			Consolidated
(Thousands of Dollars)	Electric		Natural Gas		Other			Eliminations			Total
2012
Operating revenues	$	757,565	$	103,100	$	1,177		$	-		$	861,842
Intersegment revenues		355		727		-			(1,082	)		-
Total revenues	$	757,920	$	103,827	$	1,177		$	(1,082	)	$	861,842
Depreciation and amortization	$	59,768	$	9,251	$	215		$	-		$	69,234
Interest charges and financing cost		20,303		2,554		80			-			22,937
Income tax expense		27,164		2,113		281			-			29,558
Net income		45,377		3,094		1,480			-			49,951
2011
Operating revenues	$	755,136	$	119,447	$	1,207		$	-		$	875,790
Intersegment revenues		405		1,581		-			(1,986	)		-
Total revenues	$	755,541	$	121,028	$	1,207		$	(1,986	)	$	875,790
Depreciation and amortization	$	58,800	$	9,599	$	175		$	-		$	68,574
Interest charges and financing cost		21,181		2,675		137			-			23,993
Income tax expense (benefit)		32,656		1,995		(1,037	)		-			33,614
Net income		47,093		2,964		949			-			51,006
2010
Operating revenues	$	708,179	$	118,076	$	1,036		$	-		$	827,291
Intersegment revenues		360		1,122		-			(1,482	)		-
Total revenues	$	708,539	$	119,198	$	1,036		$	(1,482	)	$	827,291
Depreciation and amortization	$	54,414	$	9,037	$	218		$	-		$	63,669
Interest charges and financing cost		20,738		2,597		143			-			23,478
Income tax expense (benefit)		24,819		1,836		(543	)		-			26,112
Net income		37,773		3,325		1,651			-			42,749