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Benefit Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Benefit Plans and Other Postretirement Benefits [Abstract]

Projected Benefit Payments for the Pension and Postretirement Benefit Plans

The following table lists NSP-Wisconsin's projected benefit payments for the pension and postretirement benefit plans:

(Thousands of Dollars)	Projected Pension Benefit Payments		Gross Projected Postretirement Health Care Benefit Payments		Expected Medicare Part D Subsidies		Net Projected Postretirement Health Care Benefit Payments
2013	$	16,388	$	1,598	$	8	$	1,590
2014		15,152		1,468		11		1,457
2015		16,117		1,459		9		1,450
2016		14,986		1,433		8		1,425
2017		14,664		1,365		3		1,362
2018-2022		69,528		6,286		16		6,270

Contributions to Multiemployer Plans

Contributions to multiemployer plans were as follows for the years ended Dec. 31, 2012, 2011 and 2010. There were no significant changes to the nature or magnitude of the participation of NSP-Wisconsin in multiemployer plans for the years presented:


(Thousands of Dollars)	2012		2011		2010
Multiemployer plan contributions:
Pension	$	163	$	169	$	170
Total	$	163	$	169	$	170

Pension Plans [Member]

Benefit Plans and Other Postretirement Benefits [Abstract]

Target Asset Allocations and Plan Assets Measured at Fair Value

The following table presents the target pension asset allocations for NSP-Wisconsin:

	2012			2011
Domestic and international equity securities		29	%		31	%
Long-duration fixed income securities		30			26
Short-to-intermediate term fixed income securities		12			14
Alternative investments		27			26
Cash		2			3
Total		100	%		100	%

The ongoing investment strategy is based on plan-specific investment recommendations that seek to minimize potential investment and interest rate risk as a plan's funded status increases over time. The investment recommendations result in a greater percentage of long-duration fixed income securities being allocated to specific plans having relatively higher funded status ratios, and a greater percentage of growth assets being allocated to plans having relatively lower funded status ratios. The aggregate projected asset allocation presented in the table above for the master pension trust results from the plan-specific strategies.

Pension Plan Assets

The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin's pension plan assets that are measured at fair value as of Dec. 31, 2012 and 2011:

	Dec. 31, 2012
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	7,956	$	-		$	-	$	7,956
Derivatives		-		390			-		390
Government securities		-		9,406			-		9,406
Corporate bonds		-		25,046			-		25,046
Asset-backed securities		-		-			749		749
Mortgage-backed securities		-		-			2,128		2,128
Common stock		3,977		-			-		3,977
Private equity investments		-		-			8,545		8,545
Commingled funds		-		76,398			-		76,398
Real estate		-		-			3,472		3,472
Securities lending collateral obligation and other		-		(1,521	)		-		(1,521	)
Total	$	11,933	$	109,719		$	14,894	$	136,546

	Dec. 31, 2011
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents.	$	6,604	$	-		$	-	$	6,604
Derivatives		-		296			-		296
Government securities		-		7,578			-		7,578
Corporate bonds		-		25,454			-		25,454
Asset-backed securities		-		-			1,578		1,578
Mortgage-backed securities		-		-			3,781		3,781
Common stock		3,693		-			-		3,693
Private equity investments		-		-			8,440		8,440
Commingled funds		-		64,520			-		64,520
Real estate		-		-			2,008		2,008
Securities lending collateral obligation and other		-		(2,604	)		-		(2,604	)
Total	$	10,297	$	95,244		$	15,807	$	121,348

Changes in Level 3 Plan Assets

The following tables present the changes in NSP-Wisconsin's Level 3 pension plan assets for the years ended Dec. 31, 2012, 2011 and 2010:

								Purchases,
			Net Realized		Net Unrealized			Issuances, and
(Thousands of Dollars)	Jan. 1, 2012		Gains (Losses)		Gains (Losses)			Settlements, Net			Dec. 31, 2012
Asset-backed securities	$	1,578	$	197	$	(273	)	$	(753	)	$	749
Mortgage-backed securities		3,781		93		(112	)		(1,634	)		2,128
Private equity investments		8,440		945		(1,197	)		357			8,545
Real estate		2,008		1		328			1,135			3,472
Total	$	15,807	$	1,236	$	(1,254	)	$	(895	)	$	14,894

									Purchases,
			Net Realized			Net Unrealized			Issuances, and
(Thousands of Dollars)	Jan. 1, 2011		Gains (Losses)			Gains (Losses)			Settlements, Net			Dec. 31, 2011
Asset-backed securities	$	1,367	$	121		$	(125	)	$	215		$	1,578
Mortgage-backed securities		5,984		55			(295	)		(1,963	)		3,781
Private equity investments		6,704		210			648			878			8,440
Real estate		3,746		(34	)		1,002			(2,706	)		2,008
Total	$	17,801	$	352		$	1,230		$	(3,576	)	$	15,807

									Purchases,
			Net Realized			Net Unrealized			Issuances, and
(Thousands of Dollars)	Jan. 1, 2010		Gains (Losses)			Gains (Losses)			Settlements, Net			Dec. 31, 2010
Asset-backed securities	$	2,357	$	173		$	(140	)	$	(1,023	)	$	1,367
Mortgage-backed securities		7,280		707			(717	)		(1,286	)		5,984
Private equity investments		4,053		(55	)		809			1,897			6,704
Real estate		3,294		(2	)		288			166			3,746
Total	$	16,984	$	823		$	240		$	(246	)	$	17,801

Change in Projected Benefit Obligation

(Thousands of Dollars)	2012			2011
Accumulated Benefit Obligation at Dec. 31	$	169,939		$	150,405

Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	159,766		$	154,147
Service cost		4,568			4,271
Interest cost		7,765			8,031
Plan amendments		216			-
Actuarial loss		21,083			7,430
Benefit payments		(13,403	)		(14,113	)
Obligation at Dec. 31	$	179,995		$	159,766

Change in Fair Value of Plan Assets

(Thousands of Dollars)	2012			2011
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	121,348		$	123,541
Actual return on plan assets		16,079			5,474
Employer contributions		12,522			6,446
Benefit payments		(13,403	)		(14,113	)
Fair value of plan assets at Dec. 31	$	136,546		$	121,348

Funded Status of Plans

Funded Status of Plans at Dec. 31:		2012				2011
Funded status (a)		$	(43,449	)		$	(38,418	)

(a)	Amounts are recognized in noncurrent liabilities on NSP-Wisconsin's consolidated balance sheets.

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost

(Thousands of Dollars)	2012		2011
NSP-Wisconsin Amounts Not Yet Recognized as Components of Net
Periodic Benefit Cost:
Net loss	$	99,338	$	89,730
Prior service cost		2,290		4,061
Total	$	101,628	$	93,791

(Thousands of Dollars)	2012		2011
Amounts Related to the Funded Status of the Plans Have Been
Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	6,895	$	7,530
Noncurrent regulatory assets		94,733		86,261
Total	$	101,628	$	93,791

Significant Assumptions Used to Measure Benefit Obligations

Measurement Date	Dec. 31, 2012			Dec. 31, 2011
	2012			2011
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation		4.00	%		5.00	%
Expected average long-term increase in compensation level		3.75			4.00
Mortality table	RP 2000			RP 2000

Components of Net Periodic Benefit Costs

Benefit Costs — The components of NSP-Wisconsin's net periodic pension cost were:

(Thousands of Dollars)	2012			2011			2010
Service cost	$	4,568		$	4,271		$	4,260
Interest cost		7,765			8,031			8,311
Expected return on plan assets		(10,489	)		(11,484	)		(11,800	)
Amortization of prior service cost		1,771			1,895			1,629
Amortization of net loss		6,004			4,070			2,463
Net periodic pension cost	$	9,619		$	6,783		$	4,863

Schedule of Assumptions Used to Measure Costs

Significant Assumptions Used to Measure Costs:	2012			2011			2010
Discount rate		5.00	%		5.50	%		6.00	%
Expected average long-term increase in compensation level		4.00			4.00			4.00
Expected average long-term rate of return on assets		7.50			8.00			8.00

Postretirement Benefit Plan [Member]

Benefit Plans and Other Postretirement Benefits [Abstract]

Target Asset Allocations and Plan Assets Measured at Fair Value

The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin's postretirement benefit plan assets that are measured at fair value as of Dec. 31, 2012 and 2011:

	Dec. 31, 2012
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	123	$	-		$	-	$	123
Government securities		-		99			-		99
Insurance contracts		-		67			-		67
Corporate bonds		-		59			-		59
Asset-backed securities		-		-			1		1
Mortgage-backed securities		-		-			54		54
Commingled funds		-		307			-		307
Other		-		(63	)		-		(63	)
Total	$	123	$	469		$	55	$	647

	Dec. 31, 2011
(Thousands of Dollars)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	101	$	-		$	-	$	101
Derivatives		-		23			-		23
Government securities		-		116			-		116
Corporate bonds		-		108			-		108
Asset-backed securities		-		-			14		14
Mortgage-backed securities		-		-			48		48
Preferred stock		-		1			-		1
Commingled funds		-		355			-		355
Securities lending collateral obligation and other		-		(20	)		-		(20	)
Total	$	101	$	583		$	62	$	746

Changes in Level 3 Plan Assets

The following tables present the changes in NSP-Wisconsin's Level 3 postretirement benefit plan assets for the years ended Dec. 31, 2012, 2011 and 2010:

								Purchases,
			Net Realized			Net Unrealized		Issuances, and
(Thousands of Dollars)	Jan. 1, 2012		Gains (Losses)			Gains (Losses)		Settlements, Net			Dec. 31, 2012
Asset-backed securities	$	14	$	-		$	3	$	(16	)	$	1
Mortgage-backed securities		48		(1	)		6		1			54
Total	$	62	$	(1	)	$	9	$	(15	)	$	55

									Purchases,
			Net Realized			Net Unrealized			Issuances, and
(Thousands of Dollars)	Jan. 1, 2011		Gains (Losses)			Gains (Losses)			Settlements, Net		Dec. 31, 2011
Asset-backed securities	$	6	$	-		$	(2	)	$	10	$	14
Mortgage-backed securities		45		(3	)		6			-		48
Total	$	51	$	(3	)	$	4		$	10	$	62

								Purchases,
			Net Realized			Net Unrealized		Issuances, and
(Thousands of Dollars)	Jan. 1, 2010		Gains (Losses)			Gains (Losses)		Settlements, Net			Dec. 31, 2010
Asset-backed securities	$	30	$	(1	)	$	4	$	(27	)	$	6
Mortgage-backed securities		168		(2	)		16		(137	)		45
Total	$	198	$	(3	)	$	20	$	(164	)	$	51

Change in Projected Benefit Obligation

(Thousands of Dollars)	2012			2011
Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	22,127		$	20,753
Service cost		20			17
Interest cost		1,075			1,144
Medicare subsidy reimbursements		189			180
Early Retiree Reinsurance Program proceeds shared with retirees		-			298
Plan amendments		(3,440	)		-
Plan participants' contributions		893			1,059
Actuarial loss		1,486			2,425
Benefit payments		(2,918	)		(3,749	)
Obligation at Dec. 31	$	19,432		$	22,127

Change in Fair Value of Plan Assets

(Thousands of Dollars)	2012			2011
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	746		$	992
Actual return (loss) on plan assets		3			(1	)
Plan participants' contributions		893			1,059
Employer contributions		1,923			2,445
Benefit payments		(2,918	)		(3,749	)
Fair value of plan assets at Dec. 31	$	647		$	746

Funded Status of Plans

(Thousands of Dollars)	2012			2011
Funded Status of Plans at Dec. 31:
Funded status	$	(18,785	)	$	(21,381	)
Current liabilities		(943	)		(1,281	)
Noncurrent liabilities		(17,842	)		(20,100	)
Net postretirement amounts recognized on consolidated balance sheets	$	(18,785	)	$	(21,381	)

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost

(Thousands of Dollars)	2012			2011
NSP-Wisconsin Amounts Not Yet Recognized as Components of Net Periodic Cost:
Net loss	$	13,730		$	12,683
Prior service credit		(3,538	)		(112	)
Transition obligation		1			172
Total	$	10,193		$	12,743

(Thousands of Dollars)	2012		2011
Amounts Related to the Funded Status of the Plans Have Been Recorded as
Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	433	$	697
Noncurrent regulatory assets		9,760		12,046
Total	$	10,193	$	12,743

Significant Assumptions Used to Measure Benefit Obligations

Measurement Date	Dec. 31, 2012			Dec. 31, 2011
	2012			2011
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation		4.10	%		5.00	%
Mortality table	RP 2000			RP 2000
Health care costs trend rate - initial		7.50	%		6.31	%

Components of Net Periodic Benefit Costs

Benefit Costs — The components of NSP-Wisconsin's net periodic postretirement benefit cost were:

(Thousands of Dollars)	2012			2011			2010
Service cost	$	20		$	17		$	15
Interest cost		1,075			1,144			1,234
Expected return on plan assets		(50	)		(74	)		(103	)
Amortization of transition obligation		171			171			171
Amortization of prior service cost		(14	)		(14	)		(14	)
Amortization of net loss		486			366			342
Net periodic postretirement benefit cost	$	1,688		$	1,610		$	1,645

Schedule of Assumptions Used to Measure Costs

Significant Assumptions Used to Measure Costs:	2012			2011			2010
Discount rate		5.00	%		5.50	%		6.00	%
Expected average long-term rate of return on assets		6.75			7.50			7.50

Effects of 1-Percent Change in Assumed Health Care Cost Trend Rate

A 1-percent change in the assumed health care cost trend rate would have the following effects on NSP-Wisconsin:

	One Percentage Point
(Thousands of Dollars)	Increase		Decrease
APBO	$	1,712	$	(1,376	)
Service and interest components		126		(102	)