Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NORTHERN STATES POWER CO /WI/ | |
Entity Central Index Key | 72,909 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 933,000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating revenues | ||
Electric | $ 216,366 | $ 216,309 |
Natural gas | 56,500 | 48,347 |
Other | 278 | 275 |
Total operating revenues | 273,144 | 264,931 |
Operating expenses | ||
Electric fuel and purchased power, non-affiliates | 2,898 | 2,873 |
Purchased power, affiliates | 101,311 | 106,458 |
Cost of natural gas sold and transported | 28,723 | 25,987 |
Operating and maintenance expenses | 50,344 | 49,184 |
Conservation expenses | 2,978 | 3,054 |
Depreciation and amortization | 30,587 | 27,049 |
Taxes (other than income taxes) | 7,313 | 6,873 |
Total operating expenses | 224,154 | 221,478 |
Operating income | 48,990 | 43,453 |
Other (expense), net | (359) | (432) |
Allowance for funds used during construction — equity | 1,855 | 1,287 |
Interest charges and financing costs | ||
Interest charges — includes other financing costs of $478 and $456, respectively | 9,595 | 8,682 |
Allowance for funds used during construction — debt | (836) | (550) |
Total interest charges and financing costs | 8,759 | 8,132 |
Income before income taxes | 41,727 | 36,176 |
Income taxes | 10,310 | 13,757 |
Net income | $ 31,417 | $ 22,419 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest charges and financing costs | ||
Other financing costs | $ 478 | $ 456 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Comprehensive income: | ||
Net income | $ 31,417 | $ 22,419 |
Derivative instruments: | ||
Reclassification of losses to net income, net of tax of $8 and $12, respectively | 23 | 19 |
Other comprehensive income | 23 | 19 |
Comprehensive income | $ 31,440 | $ 22,438 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative instruments: | ||
Reclassification of losses to net income, tax | $ 8 | $ 12 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 31,417 | $ 22,419 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 30,987 | 27,425 |
Deferred income taxes | 1,843 | 11,348 |
Amortization of investment tax credits | (131) | (131) |
Allowance for equity funds used during construction | (1,855) | (1,287) |
Net derivative losses | 154 | 166 |
Other, net | 511 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (9,504) | (10,867) |
Accrued unbilled revenues | 12,026 | 12,986 |
Inventories | 6,103 | 4,806 |
Other current assets | 5,854 | 4,305 |
Accounts payable | (15,873) | 19,809 |
Net regulatory assets and liabilities | 10,518 | 656 |
Other current liabilities | (1,837) | (9,158) |
Pension and other employee benefit obligations | (9,200) | (8,860) |
Change in other noncurrent assets | 157 | (294) |
Change in other noncurrent liabilities | (474) | (800) |
Net cash provided by operating activities | 60,696 | 72,523 |
Investing activities | ||
Utility capital/construction expenditures | (58,488) | (47,999) |
Allowance for equity funds used during construction | 1,855 | 1,287 |
Other, net | (197) | (159) |
Net cash used in investing activities | (56,830) | (46,871) |
Financing activities | ||
Proceeds from (repayments of) short-term borrowings, net | 11,000 | (27,000) |
Repayments of long-term debt | (6) | (13) |
Capital contributions from parent | 3,326 | 12,282 |
Dividends paid to parent | (15,481) | (10,729) |
Other, net | (331) | (70) |
Net cash used in financing activities | (1,492) | (25,530) |
Net change in cash and cash equivalents | 2,374 | 122 |
Cash and cash equivalents at beginning of period | 1,403 | 1,546 |
Cash and cash equivalents at end of period | 3,777 | 1,668 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of amounts capitalized) | (5,751) | (6,020) |
Cash paid for income taxes, net | (7,038) | (11,489) |
Supplemental disclosure of non-cash investing transactions: | ||
Property, plant and equipment additions in accounts payable | $ 21,757 | $ 15,150 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 3,777 | $ 1,403 |
Accounts receivable, net | 69,378 | 63,200 |
Accrued unbilled revenues | 47,982 | 60,008 |
Other Receivables | 15,256 | 15,144 |
Inventories | 11,655 | 17,758 |
Regulatory assets | 22,922 | 23,113 |
Prepaid taxes | 17,768 | 23,606 |
Prepayments and other | 3,262 | 3,450 |
Total current assets | 192,000 | 207,682 |
Property, plant and equipment, net | 2,116,095 | 2,088,728 |
Other assets | ||
Regulatory assets | 281,875 | 282,217 |
Other investments | 3,089 | 2,892 |
Other | 147 | 201 |
Total other assets | 285,111 | 285,310 |
Total assets | 2,593,206 | 2,581,720 |
Current liabilities | ||
Current portion of long-term debt | 151,074 | 151,080 |
Short-term debt | 22,000 | 11,000 |
Notes payable to affiliates | 500 | 500 |
Accounts payable | 40,301 | 58,365 |
Accounts payable to affiliates | 25,823 | 29,628 |
Dividends payable to parent | 16,042 | 15,481 |
Regulatory liabilities | 25,032 | 20,712 |
Environmental liabilities | 12,386 | 10,469 |
Accrued interest | 10,682 | 8,025 |
Other | 29,239 | 34,474 |
Total current liabilities | 333,079 | 339,734 |
Deferred credits and other liabilities | ||
Deferred income taxes | 258,599 | 256,687 |
Deferred investment tax credits | 7,383 | 7,514 |
Regulatory liabilities | 396,304 | 386,807 |
Environmental liabilities | 20,378 | 19,190 |
Customer advances | 16,448 | 16,325 |
Pension and employee benefit obligations | 40,668 | 50,027 |
Other | 18,322 | 18,747 |
Total deferred credits and other liabilities | 758,102 | 755,297 |
Commitments and contingencies | ||
Capitalization | ||
Long-term debt | 610,038 | 610,100 |
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at March 31, 2018 and Dec. 31, 2017, respectively | 93,300 | 93,300 |
Additional paid in capital | 449,350 | 449,350 |
Retained earnings | 349,383 | 334,008 |
Accumulated other comprehensive loss | (46) | (69) |
Total common stockholder’s equity | 891,987 | 876,589 |
Total liabilities and equity | $ 2,593,206 | $ 2,581,720 |
CONSOLIDATED BALANCE SHEETS (U8
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Capitalization | ||
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 100 | $ 100 |
Common stock, shares outstanding (in shares) | 933,000 | 933,000 |
Management's Opinion
Management's Opinion | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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, 2018 and Dec. 31, 2017 ; the results of its operations, including the components of net income and comprehensive income, for the three months ended March 31, 2018 and 2017; and its cash flows for the three months ended March 31, 2018 and 2017. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after March 31, 2018 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, 2017 balance sheet information has been derived from the audited 2017 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2017 . 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, 2017 , filed with the SEC on Feb. 26, 2018. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies set forth in Note 1 to the consolidated financial statements in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2017 , appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting Pronouncements
Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Recently Issued Leases — I n February 2016, the Financial Accounting Standards Board (FASB) issued Leases, Topic 842 (Accounting Standards Update (ASU) No. 2016-02) , which for lessees requires balance sheet recognition of right-of-use assets and lease liabilities for most leases. This guidance will be effective for interim and annual reporting periods beginning after Dec. 15, 2018. NSP-Wisconsin has not yet fully determined the impacts of implementation. However, adoption is expected to occur on Jan. 1, 2019 utilizing the practical expedients provided by the standard and proposed in Targeted Improvements, Topic 842 ( Proposed ASU 2018-200) . As such, agreements entered into prior to Jan. 1, 2019 that are currently considered leases are expected to be recognized on the consolidated balance sheet, including contracts for use of office space, equipment and natural gas storage assets, as well as certain purchased power agreements (PPAs) for natural gas-fueled generating facilities. NSP-Wisconsin expects that similar agreements entered into after Dec. 31, 2018 will generally qualify as leases under the new standard. Recently Adopted Revenue Recognition — In May 2014, the FASB issued Revenue from Contracts with Customers, Topic 606 (ASU No. 2014-09) , which provides a new framework for the recognition of revenue. NSP-Wisconsin implemented the guidance on a modified retrospective basis on Jan. 1, 2018. Results for reporting periods beginning after Dec. 31, 2017 are presented in accordance with Topic 606, while prior period results have not been adjusted and continue to be reported in accordance with prior accounting guidance. Other than increased disclosures regarding revenues related to contracts with customers, the implementation did not have a significant impact on NSP-Wisconsin’s consolidated financial statements. For related disclosures, see Note 13. Classification and Measurement of Financial Instruments — In January 2016, the FASB issued Recognition and Measurement of Financial Assets and Financial Liabilities, Subtopic 825-10 (ASU No. 2016-01) , which eliminated the available-for-sale classification for marketable equity securities and also replaced the cost method of accounting for non-marketable equity securities with a model for recognizing impairments and observable price changes. Under the new standard, other than when the consolidation or equity method of accounting is utilized, changes in the fair value of equity securities are recognized in earnings. NSP-Wisconsin implemented the guidance on Jan. 1, 2018 and the implementation did not have a material impact on its consolidated financial statements. Presentation of Net Periodic Benefit Cost — I n March 2017, the FASB issued Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, Topic 715 (ASU No. 2017-07) , which establishes that only the service cost element of pension cost may be presented as a component of operating income in the income statement. Also under the guidance, only the service cost component of pension cost is eligible for capitalization. As a result of application of accounting principles for rate regulated entities, a similar amount of pension cost, including non-service components, will be recognized consistent with the historical ratemaking treatment, and the impacts of adoption will be limited to changes in classification of non-service costs in the consolidated statement of income. NSP-Wisconsin implemented the new guidance on Jan. 1, 2018, and as a result, $0.7 million of pension costs were retrospectively reclassified from operating and maintenance expenses to other income, net on the consolidated income statement for the three months ended March 31, 2017. Under a practical expedient permitted by the standard, NSP-Wisconsin used benefit cost amounts disclosed for prior periods as the basis for retrospective application. |
Selected Balance Sheet Data
Selected Balance Sheet Data | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Selected Balance Sheet Data | Selected Balance Sheet Data (Thousands of Dollars) March 31, 2018 Dec. 31, 2017 Accounts receivable, net (a) Accounts receivable $ 74,732 $ 68,073 Less allowance for bad debts (5,354 ) (4,873 ) $ 69,378 $ 63,200 (a) Accounts receivable, net includes an immaterial amount and $3.4 million due from affiliates as of March 31, 2018 and Dec. 31, 2017 , respectively. (Thousands of Dollars) March 31, 2018 Dec. 31, 2017 Inventories Materials and supplies $ 7,015 $ 6,916 Fuel 3,842 3,866 Natural gas 798 6,976 $ 11,655 $ 17,758 (Thousands of Dollars) March 31, 2018 Dec. 31, 2017 Property, plant and equipment, net Electric plant $ 2,619,336 $ 2,602,671 Natural gas plant 330,055 326,723 Common and other property 182,685 181,105 Construction work in progress 178,000 148,770 Total property, plant and equipment 3,310,076 3,259,269 Less accumulated depreciation (1,193,981 ) (1,170,541 ) $ 2,116,095 $ 2,088,728 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Except to the extent noted below, Note 6 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2017 appropriately represents, in all material respects, the current status of other income tax matters, and are incorporated herein by reference. Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. The following reconciles such differences: Three Months ended March 31 2018 2017 Federal statutory rate 21.0 % 35.0 % State tax, net of federal tax effect 6.2 5.1 Increases (decreases) in tax from: Regulatory differences - ARAM (a) (4.7 ) (0.2 ) Regulatory differences - ARAM deferral (b) 4.6 — Regulatory differences - other utility plant items (1.7 ) (1.3 ) Other tax credits, net of federal income tax expense (0.8 ) (0.7 ) Other, net 0.1 0.1 Effective income tax rate 24.7 % 38.0 % (a) The average rate assumption method (ARAM); a method to flow back excess deferred taxes to customers. (b) As we receive further clarity or direction from our commissions regarding the flow back to customers of excess deferred taxes resulting from the TCJA, the ARAM deferral may decrease during the year, which would result in a reduction to tax expense with a correlating reduction to revenue. Federal Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. The statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows: Tax Year(s) Expiration 2009 - 2011 December 2018 2012 - 2013 October 2018 2014 September 2018 2015 September 2019 2016 September 2020 In 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011 , including the 2009 carryback claim. The IRS proposed an adjustment to the federal tax loss carryback claims and in 2015 the IRS forwarded the issue to the Office of Appeals (“Appeals”). In 2017 Xcel Energy and Appeals reached an agreement and the benefit related to the agreed upon portions was recognized. NSP-Wisconsin did not accrue any income tax benefit related to this adjustment. As of March 31, 2018, the case has been forwarded to the Joint Committee on Taxation. In the third quarter of 2015, the IRS commenced an examination of tax years 2012 and 2013 . In the third quarter of 2017, the IRS concluded the audit of tax years 2012 and 2013 and proposed an adjustment that would impact Xcel Energy’s net operating loss (NOL) and effective tax rate (ETR). After evaluating the proposed adjustment Xcel Energy filed a protest with the IRS. Xcel Energy anticipates the issue will be forwarded to Appeals. As of March 31, 2018, Xcel Energy has recognized its best estimate of income tax expense that will result from a final resolution of this issue; however, the outcome and timing of a resolution is uncertain. State Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of March 31, 2018 , NSP-Wisconsin’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2012 . In 2016, the state of Wisconsin began an audit of years 2012 and 2013 . As of March 31, 2018 , Wisconsin had not proposed any material adjustments, and there were no other state income tax audits in progress. Unrecognized Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual ETR. In addition, the unrecognized tax benefit balance includes temporary tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. A change in the period of deductibility would not affect the ETR but would accelerate the payment of cash to the taxing authority to an earlier period. A reconciliation of the amount of unrecognized tax benefit is as follows: (Millions of Dollars) March 31, 2018 Dec. 31, 2017 Unrecognized tax benefit — Permanent tax positions $ 1.5 $ 1.4 Unrecognized tax benefit — Temporary tax positions 1.0 1.0 Total unrecognized tax benefit $ 2.5 $ 2.4 The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: (Millions of Dollars) March 31, 2018 Dec. 31, 2017 NOL and tax credit carryforwards $ (1.9 ) $ (1.9 ) It is reasonably possible that NSP-Wisconsin’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS Appeals progresses and audit resumes, the Wisconsin audit progresses, and other state audits resume. As the IRS Appeals and Wisconsin audits progress, it is reasonably possible that the amount of unrecognized tax benefit could decrease up to approximately $1 million . The payable for interest related to unrecognized tax benefits is partially offset by the interest benefit associated with NOL and tax credit carryforwards. The payables for interest related to unrecognized tax benefits at March 31, 2018 and Dec. 31, 2017 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of March 31, 2018 or Dec. 31, 2017. |
Rate Matters Rate Matters
Rate Matters Rate Matters | 3 Months Ended |
Mar. 31, 2018 | |
Public Utilities, General Disclosures [Abstract] | |
Rate Matters | Rate Matters Except to the extent noted below, the circumstances set forth in Note 10 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2017, appropriately represent, in all material respects, the current status of other rate matters, and are incorporated herein by reference. Tax Reform — Regulatory Proceedings The specific impacts of the Tax Cuts and Jobs Act (TCJA) on customer rates are subject to regulatory approval. Each of the states in NSP-Wisconsin’s service areas have opened dockets to address the impacts of the TCJA. NSP-Wisconsin has made filings and is working with various stakeholders in its jurisdictions to determine the appropriate treatment for the TCJA. In January 2018, the Public Service Commission of Wisconsin (PSCW) issued an order requiring public utilities to apply deferred accounting for the impacts of the TCJA. In March 2018, NSP-Wisconsin filed recommended plans for Wisconsin, which for electric operations included an option for an immediate bill credit for a portion of the tax savings in 2018 and 2019, while deferring the remainder until NSP-Wisconsin’s 2020 electric rate case. For the natural gas operations, NSP-Wisconsin proposed using the TCJA to reduce the unamortized regulatory asset for the Ashland/Northern States Power Lakefront Superfund Site (the Site) clean-up. A PSCW decision on the regulatory treatment of the TCJA is anticipated later in 2018. For Michigan, NSP-Wisconsin has reached settlement in its electric rate case, which reflects the impacts of the TCJA, and has proposed customer refunds for natural gas operations. Federal Energy Regulatory Commission (FERC) Formula Rates — The FERC has not yet issued guidance on how or when electric utilities should reflect the impacts of the TCJA in FERC jurisdictional wholesale rates. The FERC issued a Notice of Inquiry (NOI) in March 2018 seeking comments on how to reflect TCJA impacts in wholesale rates, in particular changes to accumulated deferred income taxes and bonus depreciation. Comments for the NOI are due in May 2018. However, FERC-approved formula rates for wholesale customers are generally adjusted on an annual basis for certain changes in rate base and actual operating expenses, including income taxes. As a result, these revenues would be subject to an automatic reduction for the effect of the TCJA corporate tax rate change through the annual true-up process, absent specific FERC action. NSP-Wisconsin was a party to a February 2018 FERC filing by certain transmission owner (TO) members of the Midcontinent Independent System Operator, Inc. (MISO) proposing to commence early reductions to transmission formula rates in 2018 for corporate tax rate impacts of the TCJA. In March 2018, the FERC issued orders granting MISO TO waiver requests so that 2018 rates will reflect the lower federal corporate tax rate. Recently Concluded Regulatory Proceeding — Michigan Public Service Commission (MPSC) Michigan 2018 Electric Gas Rate Case — In November 2017, NSP-Wisconsin filed a request with the MPSC to increase rates for electric service by $1 million , or 7.1 percent . The filing was based on a 2018 forecast test year, a 10.1 percent return on equity (ROE), an equity ratio of 52.5 percent and a forecasted average rate base of approximately $43 million . The primary driver of the requested increase is continuing investment in transmission and distribution infrastructure. The filing also included a request for step increases in 2019 and 2020 related to electric distribution system investments in those years. In addition to the MPSC staff, intervenors in the case include the Michigan Attorney General and the Association of Businesses Advocating Tariff Equity, a voluntary association of large industrial businesses. In March 2018, NSP-Wisconsin reached a settlement in principle with the parties authorizing a 2018 rate increase of approximately $300 thousand , or approximately 2.0 percent , which reflects a portion of the TCJA benefits. The settlement was based on a 9.8 percent ROE and a 52.5 percent equity ratio. In April 2018, the MPSC issued an order approving the settlement agreement, and new rates are expected to be implemented on May 1, 2018. Pending Regulatory Proceeding — FERC MISO ROE Complaints — In November 2013, a group of customers filed a complaint at the FERC against MISO TOs, including NSP-Minnesota and NSP-Wisconsin. The complaint argued for a reduction in the ROE in transmission formula rates in the MISO region from 12.38 percent to 9.15 percent , and the removal of ROE adders (including those for Regional Transmission Organization (RTO) membership), effective Nov. 12, 2013. In September 2016, the FERC approved an Administrative Law Judge (ALJ) recommendation that MISO TOs be granted a 10.32 percent base ROE using the methodology adopted by FERC in June 2014 (Opinion 531). This ROE would be applicable for the 15 -month refund period from Nov. 12, 2013 to Feb. 11, 2015, and prospectively from the date of the FERC order. The total prospective ROE would be 10.82 percent , including a 50 basis point adder for RTO membership. Various parties requested rehearing of the September 2016 order. The requests are pending FERC action. In February 2015, a second complaint seeking to reduce the MISO ROE from 12.38 percent to 8.67 percent prior to any RTO adder was filed, resulting in a second period of potential refunds from Feb. 12, 2015 to May 11, 2016. In June 2016, an ALJ recommended a base ROE of 9.7 percent , applying the FERC Opinion 531 methodology. Various parties filed exceptions to the ALJ recommendation, and FERC action is pending. In April 2017, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) vacated and remanded Opinion 531. It is unclear how the D.C. Circuit’s opinion to vacate and remand Opinion 531 will affect the September 2016 FERC order or the timing and outcome of the second ROE complaint. NSP-Minnesota has recognized a current refund liability consistent with the best estimate of the final ROE for the Feb. 12, 2015 to May 11, 2016 complaint period. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Except to the extent noted below and in Note 5 above, the circumstances set forth in Notes 10 and 11 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2017 , appropriately represent, in all material respects, the current status of commitments and contingent liabilities and are incorporated herein by reference. The following include commitments, contingencies and unresolved contingencies that are material to NSP-Wisconsin’s financial position. Guarantees NSP-Wisconsin provides a guarantee for payment of customer loans related to NSP-Wisconsin’s farm rewiring program. NSP-Wisconsin’s exposure under the guarantee is based upon the net liability under the agreement. The guarantee issued by NSP-Wisconsin has a stated maximum amount. The guarantee contains no recourse provisions and requires no collateral. These agreements have expiration dates through 2020 . The following table presents the guarantee issued and outstanding for NSP-Wisconsin: (Millions of Dollars) March 31, 2018 Dec. 31, 2017 Guarantee issued and outstanding $ 1.0 $ 1.0 Current exposure under this guarantee — — Environmental Contingencies Ashland Manufactured Gas Plant (MGP) Site — NSP-Wisconsin was named a potentially responsible party for contamination at a site in Ashland, Wis. The Site includes NSP-Wisconsin property, previously operated as a MGP facility (the Upper Bluff), and two other properties: an adjacent city lakeshore park area (Kreher Park); and an area of Lake Superior’s Chequamegon Bay adjoining the park. In January 2017, NSP-Wisconsin agreed to remediate the Phase II Project Area (the Sediments), under a settlement agreement with the Environmental Protection Agency. The settlement agreements were approved by the U.S. District Court for the Western District of Wisconsin. NSP-Wisconsin initiated a full scale wet dredge remedy of the Sediments in 2017. Under the current plan, NSP-Wisconsin anticipates completion of restoration activities of the Sediments in 2018 with finalization of Phase I Project Area (which includes the Upper Bluff and Kreher Park areas of the Site) construction and restoration activities in early 2019 although April weather may challenge that schedule. Groundwater treatment activities at the Site will continue. The current cost estimate for the remediation of the entire site (both Phase I Project Area and the Sediments) is approximately $172 million , of which approximately $139 million has been spent. As of March 31, 2018 and Dec. 31, 2017 , NSP-Wisconsin had recorded a total liability of $33 million and $30 million , respectively, for the entire site. NSP-Wisconsin has deferred the unrecovered portion of the estimated Site remediation costs as a regulatory asset. The PSCW has authorized NSP-Wisconsin rate recovery for all remediation costs incurred at the Site. In 2012, the PSCW agreed to allow NSP-Wisconsin to pre-collect certain costs, to amortize costs over a ten -year period and to apply a three percent carrying cost to the unamortized regulatory asset. In December 2017, the PSCW approved an NSP-Wisconsin natural gas rate case, which included recovery of additional expenses associated with remediating the Site. The annual recovery of MGP clean-up costs increased from $12 million in 2017 to $18 million in 2018. Other MGP, Landfill or Disposal Sites — In addition to the site in Ashland, Wis., NSP-Wisconsin is currently involved in investigating and/or remediating an MGP, landfill or other disposal sites. NSP-Wisconsin has identified one site where contamination is present and where investigation and/or remediation activities are currently underway. Other parties may have responsibility for some portion of the investigation and/or remediation activities that are underway. NSP-Wisconsin anticipates that these investigation or remediation activities will continue through at least 2018. NSP-Wisconsin had accrued $0.1 million for this site as of March 31, 2018 and Dec. 31, 2017 . NSP-Wisconsin anticipates that any amounts spent will be fully recovered from customers. Legal Contingencies NSP-Wisconsin is involved in various litigation matters that are being defended and handled in the ordinary course of business. The assessment of whether a loss is probable or is a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. Management maintains accruals for such losses that are probable of being incurred and subject to reasonable estimation. Management is sometimes unable to estimate an amount or range of a reasonably possible loss in certain situations, including but not limited to when (1) the damages sought are indeterminate, (2) the proceedings are in the early stages, or (3) the matters involve novel or unsettled legal theories. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss. For current proceedings not specifically reported herein, management does not anticipate that the ultimate liabilities, if any, arising from such current proceedings would have a material effect on NSP-Wisconsin’s financial statements. Unless otherwise required by GAAP, legal fees are expensed as incurred. Employment, Tort and Commercial Litigation Gas Trading Litigation — e prime, inc. (e prime) is a wholly owned subsidiary of Xcel Energy. e prime was in the business of natural gas trading and marketing but has not engaged in natural gas trading or marketing activities since 2003. Thirteen lawsuits were commenced against e prime and Xcel Energy (and NSP-Wisconsin, in two instances) between 2003 and 2009 alleging fraud and anticompetitive activities in conspiring to restrain the trade of natural gas and manipulate natural gas prices. e prime, Xcel Energy Inc. and its other affiliates were sued along with several other gas marketing companies. These cases were all consolidated in the U.S. District Court in Nevada. Six of the cases remain active, which includes a multi-district litigation (MDL) matter consisting of a Colorado class (Breckenridge), a Wisconsin class (Arandell Corp.), a Missouri class, a Kansas class, and two other cases identified as “Sinclair Oil” and “Farmland.” In March 2017, summary judgment was granted by the MDL judge in favor of Xcel Energy and e prime in the Sinclair Oil and Farmland cases. In November 2017, the U.S District Court in Nevada granted summary judgment against two plaintiffs in the Arandell Corp. case in favor of Xcel Energy and NSP-Wisconsin, leaving only three individual plaintiffs remaining in the litigation. In addition, the plaintiffs’ motions for class certification and remand back to originating courts in these cases were denied in March 2017. Plaintiffs have appealed the summary judgment motions granted in the Farmland and Sinclair Oil cases and the denial of class certification and remand to the U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit). Oral arguments were heard before the Ninth Circuit in February 2018. In March 2018, the Ninth Circuit reversed and remanded the summary judgment in the Farmland case. The Farmland defendants subsequently filed a request for further review by the Ninth Circuit. In light of the decision in the Farmland case, the Sinclair plaintiffs have requested the Ninth Circuit to reverse the grant of summary judgment without hearing. Final rulings on all pending motions and appeals are expected by the end of 2018. Xcel Energy, NSP-Wisconsin and e prime have concluded that a loss is remote. |
Borrowings and Other Financing
Borrowings and Other Financing Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Financing Instruments | Borrowings and Other Financing Instruments Commercial Paper — NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility. Commercial paper outstanding for NSP-Wisconsin was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2018 Year Ended Dec. 31, 2017 Borrowing limit $ 150 $ 150 Amount outstanding at period end 22 11 Average amount outstanding 18 52 Maximum amount outstanding 46 129 Weighted average interest rate, computed on a daily basis 1.80 % 1.23 % Weighted average interest rate at period end 2.24 1.73 Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year , to provide financial guarantees for certain operating obligations. At March 31, 2018 and Dec. 31, 2017 , there were no letters of credit outstanding. Credit Facility — In order to use its commercial paper program to fulfill short-term funding needs, NSP-Wisconsin must have a revolving credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper in an aggregate amount exceeding available capacity under this credit facility. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings. At March 31, 2018 , NSP-Wisconsin had the following committed credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 150 $ 22 $ 128 (a) This credit facility expires in June 2021 . (b) Includes outstanding commercial paper. All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at March 31, 2018 and Dec. 31, 2017 . Other Short-Term Borrowings — The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.: (Amounts in Millions, Except Interest Rates) March 31, 2018 Dec. 31, 2017 Notes payable to affiliates $ 0.5 $ 0.5 Weighted average interest rate at period end 2.34 % 1.73 % |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair Value Measurements The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices. Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation. Specific valuation methods include the following: Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted net asset values. Interest rate derivatives — The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. Commodity derivatives — The methods used to measure the fair value of commodity derivative forwards and options utilize forward prices and volatilities, as well as pricing adjustments for specific delivery locations, and are generally assigned a Level 2 classification. When contractual settlements extend to periods beyond those readily observable on active exchanges or quoted by brokers, the significance of the use of less observable forecasts of long-term forward prices and volatilities on a valuation is evaluated and may result in Level 3 classification. Derivative Instruments Fair Value Measurements NSP-Wisconsin enters into derivative instruments, including forward contracts, futures, swaps and options, for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices. Interest Rate Derivatives — NSP-Wisconsin enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes. At March 31, 2018 , accumulated other comprehensive loss related to interest rate derivatives included immaterial net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings, including forecasted amounts for unsettled hedges, as applicable. Commodity Derivatives — NSP-Wisconsin may enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of natural gas to generate electric energy and natural gas for resale. The following table details the gross notional amounts of commodity options at March 31, 2018 and Dec. 31, 2017 : (Amounts in Thousands) (a)(b) March 31, 2018 Dec. 31, 2017 Million British thermal units of natural gas — 42 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. Impact of Derivative Activities on Income and Accumulated Other Comprehensive Loss — There were immaterial pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings during the three months ended March 31, 2018 and 2017 . During the three months ended March 31, 2018 and 2017, changes in the fair value of natural gas commodity derivatives resulted in immaterial and $0.1 million of net losses, respectively, recognized as regulatory assets and liabilities. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. There were no natural gas commodity derivative settlement gains or losses recognized and $0.2 million of losses recognized for the three months ended March 31, 2018 and 2017 , respectively, and were subject to purchased natural gas cost recovery mechanisms, which result in reclassifications of derivative settlement gains and losses out of income to a regulatory asset or liability, as appropriate. NSP-Wisconsin had no derivative instruments designated as fair value hedges during the three months ended March 31, 2018 and 2017 . Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. Consideration of Credit Risk and Concentrations — NSP-Wisconsin continuously monitors the creditworthiness of the counterparties to its interest rate derivatives and commodity derivative contracts prior to settlement, and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. Given this assessment, as well as an assessment of the impact of NSP-Wisconsin’s own credit risk when determining the fair value of derivative liabilities, the impact of credit risk was immaterial to the fair value of unsettled commodity derivatives presented in the consolidated balance sheets. NSP-Wisconsin employs additional credit risk control mechanisms when appropriate, such as letters of credit, parental guarantees, standardized master netting agreements and termination provisions that allow for offsetting of positive and negative exposures. Credit exposure is monitored and, when necessary, the activity with a specific counterparty is limited until credit enhancement is provided. Recurring Fair Value Measurements — The following table presents for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis: March 31, 2018 Fair Value Fair Value Total Counterparty Netting (a) Total (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ 11 $ — $ — $ 11 $ — $ 11 Dec. 31, 2017 Fair Value Fair Value Total Counterparty Netting (a) Total (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ — $ 14 $ — $ 14 $ — $ 14 (a) NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2018 and Dec. 31, 2017 . The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) Included in prepayments and other current assets balance of $3.3 million and $3.5 million at March 31, 2018 and Dec. 31, 2017, respectively, in the consolidated balance sheets. Fair Value of Long-Term Debt As of March 31, 2018 and Dec. 31, 2017 , other financial instruments for which the carrying amount did not equal fair value were as follows: March 31, 2018 Dec. 31, 2017 (Thousands of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 761,112 $ 827,506 $ 761,180 $ 856,106 The fair value of NSP-Wisconsin’s long-term debt is estimated based on recent trades and observable spreads from benchmark interest rates for similar securities. The fair value estimates are based on information available to management as of March 31, 2018 and Dec. 31, 2017 , and given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other (Expense), Net Other (expense), net consisted of the following: Three Months Ended March 31 (Thousands of Dollars) 2018 2017 Interest income $ 156 $ 143 Other nonoperating income 6 155 Benefits non-service cost (471 ) (678 ) Insurance policy expense (47 ) (49 ) Other nonoperating expense (3 ) (3 ) Other (expense), net $ (359 ) $ (432 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment 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 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, transmits and distributes electricity primarily in portions of Wisconsin and Michigan. • NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas primarily 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 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 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. (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2018 Operating revenues (a) $ 216,366 $ 56,500 $ 278 $ — $ 273,144 Intersegment revenues 109 148 — (257 ) — Total revenues $ 216,475 $ 56,648 $ 278 $ (257 ) $ 273,144 Net income $ 20,444 $ 10,399 $ 574 $ — $ 31,417 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2017 Operating revenues (a) $ 216,309 $ 48,347 $ 275 $ — $ 264,931 Intersegment revenues 96 114 — (210 ) — Total revenues $ 216,405 $ 48,461 $ 275 $ (210 ) $ 264,931 Net income $ 15,470 $ 6,545 $ 404 $ — $ 22,419 (a) Operating revenues include $38 million and $42 million of affiliate electric revenue for the three months ended March 31, 2018 and 2017 , respectively. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits Components of Net Periodic Benefit Cost Three Months Ended March 31 2018 2017 2018 2017 (Thousands of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 1,195 $ 1,154 $ 9 $ 7 Interest cost (a) 1,360 1,554 142 148 Expected return on plan assets (a) (2,256 ) (2,295 ) (16 ) (8 ) Amortization of prior service cost (credit) (a) (8 ) 35 (88 ) (88 ) Amortization of net loss (a) 1,418 1,462 139 109 Net periodic benefit cost $ 1,709 $ 1,910 $ 186 $ 168 Credits not recognized due to the effects of regulation $ 221 $ — $ — $ — Net benefit cost recognized for financial reporting $ 1,930 $ 1,910 $ 186 $ 168 a) The components of net periodic cost other than the service cost component are included in the line item “other income, net” in the income statement or capitalized on the balance sheet as a regulatory asset. In January 2018, contributions of $150 million were made across four of Xcel Energy’s pension plans, of which $10.0 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2018. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income (Loss) Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2018 and 2017 were as follows: Gains and Losses on Cash Flow Hedges (Thousands of Dollars) Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Accumulated other comprehensive loss at Jan. 1 $ (69 ) $ (133 ) Losses reclassified from net accumulated other comprehensive loss 23 19 Net current period other comprehensive income 23 19 Accumulated other comprehensive loss at March 31 $ (46 ) $ (114 ) Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Losses on cash flow hedges: Interest rate derivatives $ 31 (a) $ 31 (a) Total, pre-tax 31 31 Tax benefit (8 ) (12 ) Total amounts reclassified, net of tax $ 23 $ 19 (a) Included in interest charges. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues NSP-Wisconsin principally generates revenue from the transmission, distribution and sale of electricity and the transportation, distribution and sale of natural gas to retail customers. Performance obligations related to the sale of energy are satisfied as energy is delivered to customers. NSP-Wisconsin recognizes revenue in an amount that corresponds directly to the price of the energy delivered to the customer. The measurement of energy sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated, and the corresponding unbilled revenue is recognized. Contract terms are generally short-term in nature, and as such NSP-Wisconsin does not recognize a separate financing component of its collections from customers. NSP-Wisconsin presents its revenues net of any excise or other fiduciary-type taxes or fees. NSP-Wisconsin has various rate-adjustment mechanisms in place that provide for the recovery of natural gas, electric fuel and purchased energy costs. These cost-adjustment tariffs may increase or decrease the level of revenue collected from customers and are revised periodically for differences between the total amount collected under the clauses and the costs incurred. When applicable, under governing regulatory commission rate orders, fuel cost over-recoveries (the excess of fuel revenue billed to customers over fuel costs incurred) are deferred as regulatory liabilities and under-recoveries (the excess of fuel costs incurred over fuel revenues billed to customers) are deferred as regulatory assets. NSP-Wisconsin must submit a forward looking fuel cost plan annually for approval by the PSCW. The rules also allow for deferral of any under-recovery or over-recovery of fuel costs in excess of a two percent annual tolerance band, for future rate recovery or refund, subject to PSCW approval. Certain rate rider mechanisms qualify as alternative revenue programs under GAAP. These mechanisms arise from costs imposed upon the utility by action of a regulator or legislative body related to an environmental, public safety or other mandate. When certain criteria are met (including collection within 24 months), revenue is recognized equal to the revenue requirement, which may include return on rate base items and incentives. The mechanisms are revised periodically for differences between the total amount collected and the revenue recognized, which may increase or decrease the level of revenue collected from customers. Alternative revenue is recorded on a gross basis and is disclosed separate from revenue from contracts with customers in the period earned. In the following tables, revenue is classified by the type of goods/services rendered and market/customer type. The tables also reconcile revenue to the reportable segments. Three Months Ended March 31, 2018 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 67,803 $ 30,326 $ 16 $ 98,145 Commercial and industrial (C&I) 104,817 24,550 25 129,392 Other 1,606 — 237 1,843 Total retail 174,226 54,876 278 229,380 Interchange 37,674 — — 37,674 Other 1,504 1,007 — 2,511 Total revenue from contracts with customers 213,404 55,883 278 269,565 Alternative revenue and other 2,962 617 — 3,579 Total revenues $ 216,366 $ 56,500 $ 278 $ 273,144 Three Months Ended March 31, 2017 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 66,043 $ 26,628 $ 20 $ 92,691 C&I 102,380 20,258 24 122,662 Other 1,520 — 231 1,751 Total retail 169,943 46,886 275 217,104 Interchange 42,378 — — 42,378 Other 969 908 — 1,877 Total revenue from contracts with customers 213,290 47,794 275 261,359 Alternative revenue and other 3,019 553 — 3,572 Total revenues $ 216,309 $ 48,347 $ 275 $ 264,931 |
Selected Balance Sheet Data (Ta
Selected Balance Sheet Data (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | (Thousands of Dollars) March 31, 2018 Dec. 31, 2017 Accounts receivable, net (a) Accounts receivable $ 74,732 $ 68,073 Less allowance for bad debts (5,354 ) (4,873 ) $ 69,378 $ 63,200 |
Inventories | (Thousands of Dollars) March 31, 2018 Dec. 31, 2017 Inventories Materials and supplies $ 7,015 $ 6,916 Fuel 3,842 3,866 Natural gas 798 6,976 $ 11,655 $ 17,758 |
Property, Plant and Equipment, Net | (Thousands of Dollars) March 31, 2018 Dec. 31, 2017 Property, plant and equipment, net Electric plant $ 2,619,336 $ 2,602,671 Natural gas plant 330,055 326,723 Common and other property 182,685 181,105 Construction work in progress 178,000 148,770 Total property, plant and equipment 3,310,076 3,259,269 Less accumulated depreciation (1,193,981 ) (1,170,541 ) $ 2,116,095 $ 2,088,728 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. The following reconciles such differences: Three Months ended March 31 2018 2017 Federal statutory rate 21.0 % 35.0 % State tax, net of federal tax effect 6.2 5.1 Increases (decreases) in tax from: Regulatory differences - ARAM (a) (4.7 ) (0.2 ) Regulatory differences - ARAM deferral (b) 4.6 — Regulatory differences - other utility plant items (1.7 ) (1.3 ) Other tax credits, net of federal income tax expense (0.8 ) (0.7 ) Other, net 0.1 0.1 Effective income tax rate 24.7 % 38.0 % (a) The average rate assumption method (ARAM); a method to flow back excess deferred taxes to customers. (b) As we receive further clarity or direction from our commissions regarding the flow back to customers of excess deferred taxes resulting from the TCJA, the ARAM deferral may decrease during the year, which would result in a reduction to tax expense with a correlating reduction to revenue. |
Summary of Statute of Limitations Applicable to Open Tax Years [Table Text Block] | NSP-Wisconsin is a member of the Xcel Energy affiliated group that files a consolidated federal income tax return. The statute of limitations applicable to Xcel Energy’s federal income tax returns expire as follows: Tax Year(s) Expiration 2009 - 2011 December 2018 2012 - 2013 October 2018 2014 September 2018 2015 September 2019 2016 September 2020 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the amount of unrecognized tax benefit is as follows: (Millions of Dollars) March 31, 2018 Dec. 31, 2017 Unrecognized tax benefit — Permanent tax positions $ 1.5 $ 1.4 Unrecognized tax benefit — Temporary tax positions 1.0 1.0 Total unrecognized tax benefit $ 2.5 $ 2.4 |
Tax Benefits Associated with NOL and Tax Credit Carryforwards | The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: (Millions of Dollars) March 31, 2018 Dec. 31, 2017 NOL and tax credit carryforwards $ (1.9 ) $ (1.9 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees Issued and Outstanding | The following table presents the guarantee issued and outstanding for NSP-Wisconsin: (Millions of Dollars) March 31, 2018 Dec. 31, 2017 Guarantee issued and outstanding $ 1.0 $ 1.0 Current exposure under this guarantee — — |
Borrowings and Other Financin26
Borrowings and Other Financing Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Borrowings and Other Financing Instruments [Abstract] | |
Credit Facilities | At March 31, 2018 , NSP-Wisconsin had the following committed credit facility available (in millions of dollars): Credit Facility (a) Drawn (b) Available $ 150 $ 22 $ 128 (a) This credit facility expires in June 2021 . (b) Includes outstanding commercial paper. |
Commercial Paper | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Commercial paper outstanding for NSP-Wisconsin was as follows: (Amounts in Millions, Except Interest Rates) Three Months Ended March 31, 2018 Year Ended Dec. 31, 2017 Borrowing limit $ 150 $ 150 Amount outstanding at period end 22 11 Average amount outstanding 18 52 Maximum amount outstanding 46 129 Weighted average interest rate, computed on a daily basis 1.80 % 1.23 % Weighted average interest rate at period end 2.24 1.73 |
Notes Payable To Affiliates | |
Borrowings and Other Financing Instruments [Abstract] | |
Short-Term Borrowings | Other Short-Term Borrowings — The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.: (Amounts in Millions, Except Interest Rates) March 31, 2018 Dec. 31, 2017 Notes payable to affiliates $ 0.5 $ 0.5 Weighted average interest rate at period end 2.34 % 1.73 % |
Fair Value of Financial Asset27
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Gross Notional Amounts of Commodity Forwards and Options | The following table details the gross notional amounts of commodity options at March 31, 2018 and Dec. 31, 2017 : (Amounts in Thousands) (a)(b) March 31, 2018 Dec. 31, 2017 Million British thermal units of natural gas — 42 (a) Amounts are not reflective of net positions in the underlying commodities. (b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis by Hierarchy Level | Recurring Fair Value Measurements — The following table presents for each of the fair value hierarchy levels, NSP-Wisconsin’s derivative assets and liabilities measured at fair value on a recurring basis: March 31, 2018 Fair Value Fair Value Total Counterparty Netting (a) Total (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ 11 $ — $ — $ 11 $ — $ 11 Dec. 31, 2017 Fair Value Fair Value Total Counterparty Netting (a) Total (b) (Thousands of Dollars) Level 1 Level 2 Level 3 Current derivative assets Natural gas commodity $ — $ 14 $ — $ 14 $ — $ 14 (a) NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2018 and Dec. 31, 2017 . The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. (b) Included in prepayments and other current assets balance of $3.3 million and $3.5 million at March 31, 2018 and Dec. 31, 2017, respectively, in the consolidated balance sheets. |
Carrying Amount and Fair Value of Long-term Debt | As of March 31, 2018 and Dec. 31, 2017 , other financial instruments for which the carrying amount did not equal fair value were as follows: March 31, 2018 Dec. 31, 2017 (Thousands of Dollars) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ 761,112 $ 827,506 $ 761,180 $ 856,106 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other (expense), net consisted of the following: Three Months Ended March 31 (Thousands of Dollars) 2018 2017 Interest income $ 156 $ 143 Other nonoperating income 6 155 Benefits non-service cost (471 ) (678 ) Insurance policy expense (47 ) (49 ) Other nonoperating expense (3 ) (3 ) Other (expense), net $ (359 ) $ (432 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Results from Operations by Reportable Segment | (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2018 Operating revenues (a) $ 216,366 $ 56,500 $ 278 $ — $ 273,144 Intersegment revenues 109 148 — (257 ) — Total revenues $ 216,475 $ 56,648 $ 278 $ (257 ) $ 273,144 Net income $ 20,444 $ 10,399 $ 574 $ — $ 31,417 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Reconciling Eliminations Consolidated Total Three Months Ended March 31, 2017 Operating revenues (a) $ 216,309 $ 48,347 $ 275 $ — $ 264,931 Intersegment revenues 96 114 — (210 ) — Total revenues $ 216,405 $ 48,461 $ 275 $ (210 ) $ 264,931 Net income $ 15,470 $ 6,545 $ 404 $ — $ 22,419 (a) Operating revenues include $38 million and $42 million of affiliate electric revenue for the three months ended March 31, 2018 and 2017 , respectively. |
Benefit Plans and Other Postr30
Benefit Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Three Months Ended March 31 2018 2017 2018 2017 (Thousands of Dollars) Pension Benefits Postretirement Health Care Benefits Service cost $ 1,195 $ 1,154 $ 9 $ 7 Interest cost (a) 1,360 1,554 142 148 Expected return on plan assets (a) (2,256 ) (2,295 ) (16 ) (8 ) Amortization of prior service cost (credit) (a) (8 ) 35 (88 ) (88 ) Amortization of net loss (a) 1,418 1,462 139 109 Net periodic benefit cost $ 1,709 $ 1,910 $ 186 $ 168 Credits not recognized due to the effects of regulation $ 221 $ — $ — $ — Net benefit cost recognized for financial reporting $ 1,930 $ 1,910 $ 186 $ 168 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2018 and 2017 were as follows: Gains and Losses on Cash Flow Hedges (Thousands of Dollars) Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Accumulated other comprehensive loss at Jan. 1 $ (69 ) $ (133 ) Losses reclassified from net accumulated other comprehensive loss 23 19 Net current period other comprehensive income 23 19 Accumulated other comprehensive loss at March 31 $ (46 ) $ (114 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 were as follows: Amounts Reclassified from Accumulated Other Comprehensive Loss (Thousands of Dollars) Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Losses on cash flow hedges: Interest rate derivatives $ 31 (a) $ 31 (a) Total, pre-tax 31 31 Tax benefit (8 ) (12 ) Total amounts reclassified, net of tax $ 23 $ 19 (a) Included in interest charges. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2018 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 67,803 $ 30,326 $ 16 $ 98,145 Commercial and industrial (C&I) 104,817 24,550 25 129,392 Other 1,606 — 237 1,843 Total retail 174,226 54,876 278 229,380 Interchange 37,674 — — 37,674 Other 1,504 1,007 — 2,511 Total revenue from contracts with customers 213,404 55,883 278 269,565 Alternative revenue and other 2,962 617 — 3,579 Total revenues $ 216,366 $ 56,500 $ 278 $ 273,144 Three Months Ended March 31, 2017 (Thousands of Dollars) Regulated Electric Regulated Natural Gas All Other Total Major revenue types Revenue from contracts with customers: Residential $ 66,043 $ 26,628 $ 20 $ 92,691 C&I 102,380 20,258 24 122,662 Other 1,520 — 231 1,751 Total retail 169,943 46,886 275 217,104 Interchange 42,378 — — 42,378 Other 969 908 — 1,877 Total revenue from contracts with customers 213,290 47,794 275 261,359 Alternative revenue and other 3,019 553 — 3,572 Total revenues $ 216,309 $ 48,347 $ 275 $ 264,931 |
Accounting Pronouncements Accou
Accounting Pronouncements Accounting Pronouncements (Details) - Accounting Standards Update 2017-07 $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Operating and Maintenance Expense | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Net periodic benefit cost (credit) | $ (0.7) |
Other Income | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Net periodic benefit cost (credit) | $ 0.7 |
Selected Balance Sheet Data, Ac
Selected Balance Sheet Data, Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable, Net | ||
Accounts receivable | $ 74,732 | $ 68,073 |
Less allowance for bad debts | (5,354) | (4,873) |
Accounts receivable, net | $ 69,378 | $ 63,200 |
Selected Balance Sheet Data, In
Selected Balance Sheet Data, Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 11,655 | $ 17,758 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 7,015 | 6,916 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 3,842 | 3,866 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $ 798 | $ 6,976 |
Selected Balance Sheet Data, Pr
Selected Balance Sheet Data, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,310,076 | $ 3,259,269 |
Less accumulated depreciation | (1,193,981) | (1,170,541) |
Property, plant and equipment, net | 2,116,095 | 2,088,728 |
Electric plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,619,336 | 2,602,671 |
Natural gas plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 330,055 | 326,723 |
Common and other property | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 182,685 | 181,105 |
Construction work in progress | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 178,000 | $ 148,770 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2017 | ||
Income Tax Examination [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||||
Tax Audits [Abstract] | |||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 6.20% | 5.10% | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | [1] | (4.70%) | (0.20%) | ||||
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Percent | [2] | 4.60% | 0.00% | ||||
Effective Income Tax Rate Reconciliation, Other Regulatory Items, Percent | (1.70%) | (1.30%) | |||||
Effective Income Tax Rate Reconciliation Regulatory Differences Utility Plant Items | (0.80%) | (0.70%) | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.10% | 0.10% | |||||
Effective Income Tax Rate Reconciliation, Percent | 24.70% | 38.00% | |||||
Unrecognized Tax Benefits [Abstract] | |||||||
Unrecognized tax benefit — Permanent tax positions | $ 1,500,000 | $ 1,400,000 | |||||
Unrecognized tax benefit — Temporary tax positions | 1,000,000 | 1,000,000 | |||||
Total unrecognized tax benefit | 2,500,000 | 2,400,000 | |||||
NOL and tax credit carryforwards | (1,900,000) | (1,900,000) | |||||
Upper bound of decrease in unrecognized tax benefit that is reasonably possible | 1,000,000 | ||||||
Amounts accrued for penalties related to unrecognized tax benefits | $ 0 | $ 0 | |||||
Internal Revenue Service (IRS) | |||||||
Tax Audits [Abstract] | |||||||
Year(s) under examination | 2012 and 2013 | 2010 and 2011 | |||||
Year of carryback claim under examination | 2,009 | ||||||
State Jurisdiction (Wisconsin) | |||||||
Tax Audits [Abstract] | |||||||
Year(s) under examination | 2012 and 2013 | ||||||
Earliest year subject to examination | 2,012 | ||||||
[1] | The average rate assumption method (ARAM); a method to flow back excess deferred taxes to customers. | ||||||
[2] | As we receive further clarity or direction from our commissions regarding the flow back to customers of excess deferred taxes resulting from the TCJA, the ARAM deferral may decrease during the year, which would result in a reduction to tax expense with a correlating reduction to revenue. |
Rate Matters Rate Matters (Deta
Rate Matters Rate Matters (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Mar. 31, 2018 | Nov. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Feb. 28, 2015 | Nov. 30, 2013 | Mar. 31, 2018 | |
NSP-Wisconsin | MPSC Proceeding - Michigan 2018 Electric Rate Case [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 1,000 | ||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 7.10% | ||||||
Public Utilities, Requested Return on Equity, Percentage | 10.10% | ||||||
Public Utilities, Requested Rate Base, Amount | $ 43,000 | ||||||
Public Utilities, Requested Equity Capital Structure, Percentage | 52.50% | ||||||
NSP-Wisconsin | MPSC Staff [Member] | MPSC Proceeding - Michigan 2018 Electric Rate Case [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public Utilities, Requested Return on Equity, Percentage | 9.80% | ||||||
Public Utilities, Rate Increase Under the Settlement | $ 300 | ||||||
Public Utilities, Rate Increase Under the Settlement, Percentage | 2.00% | ||||||
Public Utilities, Requested Equity Capital Structure, Percentage | 52.50% | ||||||
NSP-Minnesota | FERC Proceeding, MISO ROE Complaint | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public Utilities, Base Return On Equity Charged To Customers Through Transmission Formula Rates | 12.38% | 12.38% | |||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties | 8.67% | 9.15% | |||||
NSP-Minnesota | Federal Energy Regulatory Commission (FERC) | FERC Proceeding, MISO ROE Complaint | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, Approved | 10.32% | ||||||
Public Utilities, Length of Refund Period, In Months | 15 months | ||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The MISO Region, with RTO Adder, Approved | 10.82% | ||||||
Public Utilities, ROE Basis Point Adder, Approved | 50 | ||||||
NSP-Minnesota | Administrative Law Judge | FERC Proceeding, MISO ROE Complaint | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Public Utilities, ROE Applicable To Transmission Formula Rates In The Regional Transmission Operator's Region, Recommended By Third Parties | 9.70% |
Commitments and Contingencies,
Commitments and Contingencies, Guarantees and Indemnifications (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Assets Held As Collateral | $ 0 | $ 0 |
Payment or Performance Guarantee | Customer Loans for Farm Rewiring Program | ||
Guarantor Obligations [Line Items] | ||
Payment Guarantee Expiration (year) | 2,020 | |
Guarantee issued and outstanding | $ 1,000,000 | 1,000,000 |
Current exposure under this guarantee | $ 0 | $ 0 |
Commitments and Contingencies40
Commitments and Contingencies, Environmental Contingencies - Site Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Site | Dec. 31, 2017USD ($) | |
Ashland MGP Site | ||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ||
Number of properties not owned included in superfund site | Site | 2 | |
Current Cost Estimate for Site Remediation | $ 172 | |
Estimated amount spent on cleanup | 139 | |
Accrual for Environmental Loss Contingencies, Gross | $ 33 | $ 30 |
Approved amortization period for recovery of remediation costs in natural gas rates (in years) | 10 years | |
Carrying cost percentage to be applied to unamortized regulatory asset | 3.00% | |
Other MGP Sites [Member] | ||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ||
Accrual for Environmental Loss Contingencies, Gross | $ 0.1 | 0.1 |
Number of identified MGP sites under current investigation and/or remediation in addition to those separately disclosed | 1 | |
PSCW Proceeding - Gas Rate Case 2017 - Gas Rates 2017 [Member] | Ashland MGP Site | ||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ||
Public Utilities, Approved annual recovery collected through base rates | $ 12 | |
PSCW Proceeding - Gas Rate Case 2017 - Gas Rates 2018 [Member] | Ashland MGP Site | ||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ||
Public Utilities, Requested annual recovery collected through base rates | $ 18 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Legal Contingencies (Details) - Gas Trading Litigation | Mar. 31, 2018 | Dec. 31, 2009 |
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 6 | 13 |
Loss Contingency, Subset of Cases within Multi-District Litigation, Number | 2 | |
NSP-Wisconsin | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 2 |
Borrowings and Other Financin42
Borrowings and Other Financing Instruments, Commercial Paper (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Amount outstanding at period end | $ 22,000,000 | $ 11,000,000 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Borrowing limit | 150,000,000 | 150,000,000 |
Amount outstanding at period end | 22,000,000 | 11,000,000 |
Average amount outstanding | 18,000,000 | 52,000,000 |
Maximum amount outstanding | $ 46,000,000 | $ 129,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 1.80% | 1.23% |
Weighted average interest rate at period end (percentage) | 2.24% | 1.73% |
Borrowings and Other Financin43
Borrowings and Other Financing Instruments, Letters of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 22,000 | $ 11,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | $ 0 | $ 0 |
Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year |
Borrowings and Other Financin44
Borrowings and Other Financing Instruments, Credit Facility (Details) - Credit Facility - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | ||
Line of Credit Facility [Line Items] | |||
Credit Facility | [1] | $ 150,000,000 | |
Drawn | [2] | 22,000,000 | |
Available | $ 128,000,000 | ||
Maturity Date | Jun. 30, 2021 | ||
Direct advances on the credit facility outstanding | $ 0 | $ 0 | |
[1] | This credit facility expires in June 2021. | ||
[2] | Includes outstanding commercial paper. |
Borrowings and Other Financin45
Borrowings and Other Financing Instruments, Intercompany Borrowing Arrangement and Other Short-Term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Notes payable to affiliates | $ 500 | $ 500 |
Notes Payable To Affiliates | ||
Short-term Debt [Line Items] | ||
Notes payable to affiliates | $ 500 | $ 500 |
Weighted average interest rate at period end (percentage) | 2.34% | 1.73% |
Fair Value of Financial Asset46
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) - MMBTU MMBTU in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Natural Gas Commodity (in million British thermal units) | |||
Gross Notional Amounts of Commodity Options [Abstract] | |||
Derivative, Nonmonetary Notional amount | [1],[2] | 0 | 42 |
[1] | Amounts are not reflective of net positions in the underlying commodities. | ||
[2] | Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. |
Fair Value of Financial Asset47
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | ||
Derivative instruments designated as fair value hedges | $ 0 | $ 0 |
Recognized gains (losses) from fair value hedges or related hedged transactions | 0 | 0 |
Other Derivative Instruments | Natural Gas Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax fair value gains (losses) recognized during the period in regulatory (assets) and liabilities | (100,000) | |
Pre-tax (gains) losses reclassified into income during the period from regulatory assets and (liabilities) | $ 0 | $ 200,000 |
Fair Value of Financial Asset48
Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Prepayments and other | $ 3,262 | $ 3,450 | |
Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 11 | 14 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [2] | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 11 | 0 | |
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 14 | |
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | |||
Derivatives, Fair Value [Line Items] | |||
Prepayments and other | 3,300 | 3,500 | |
Estimate of Fair Value Measurement [Member] | Fair Value Measured on a Recurring Basis | Other Current Assets | Other Derivative Instruments | Natural Gas Commodity | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 11 | $ 14 | |
[1] | Included in prepayments and other current assets balance of $3.3 million and $3.5 million at March 31, 2018 and Dec. 31, 2017, respectively, in the consolidated balance sheets. | ||
[2] | NSP-Wisconsin nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement, and all derivative instruments and related collateral amounts were subject to master netting agreements at March 31, 2018 and Dec. 31, 2017. The counterparty netting amounts presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements. |
Fair Value of Financial Asset49
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current portion | $ 761,112 | $ 761,180 |
Fair Value | ||
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current portion | $ 827,506 | $ 856,106 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 156 | $ 143 |
Other nonoperating income | 6 | 155 |
Defined Benefit Plan, Non-service Costs | (471) | (678) |
Insurance policy expense | (47) | (49) |
Other nonoperating expense | (3) | (3) |
Other (expense), net | $ (359) | $ (432) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 273,144 | $ 264,931 | |
Net income (loss) | 31,417 | 22,419 | |
Affiliate electric revenue | 38,000 | 42,000 | |
Regulated Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 216,475 | 216,405 | |
Net income (loss) | 20,444 | 15,470 | |
Regulated Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 56,648 | 48,461 | |
Net income (loss) | 10,399 | 6,545 | |
All Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 278 | 275 | |
Net income (loss) | 574 | 404 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | [1] | 273,144 | 264,931 |
Operating Segments | Regulated Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | [1] | 216,366 | 216,309 |
Operating Segments | Regulated Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 56,500 | 48,347 | |
Operating Segments | All Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 278 | 275 | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | (257) | (210) | |
Net income (loss) | 0 | 0 | |
Intersegment Eliminations | Regulated Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 109 | 96 | |
Intersegment Eliminations | Regulated Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 148 | 114 | |
Intersegment Eliminations | All Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 0 | $ 0 | |
[1] | (a) Operating revenues include $38 million and $42 million of affiliate electric revenue for the three months ended March 31, 2018 and 2017, respectively. |
Benefit Plans and Other Postr52
Benefit Plans and Other Postretirement Benefits (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018USD ($)Plan | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Pension Plan [Member] | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 1,195 | $ 1,154 | |
Interest cost | 1,360 | 1,554 | |
Expected return on plan assets | (2,256) | (2,295) | |
Amortization of prior service cost (credit) | (8) | 35 | |
Amortization of net loss | 1,418 | 1,462 | |
Defined Benefit Plan Net Benefit Cost (Credit) Recognized Before Regulatory Adjustments | 1,709 | 1,910 | |
Defined Benefit Plan Credits Not Recognized Due To Effects of Regulation | 221 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1,930 | 1,910 | |
Total contributions to the pension plans during the period | $ 10,000 | ||
Other Postretirement Benefits Plan [Member] | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Service cost | 9 | 7 | |
Interest cost | 142 | 148 | |
Expected return on plan assets | (16) | (8) | |
Amortization of prior service cost (credit) | (88) | (88) | |
Amortization of net loss | 139 | 109 | |
Defined Benefit Plan Net Benefit Cost (Credit) Recognized Before Regulatory Adjustments | 186 | 168 | |
Defined Benefit Plan Credits Not Recognized Due To Effects of Regulation | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 186 | $ 168 | |
Xcel Energy Inc. | Pension Plan [Member] | |||
Components of Net Periodic Benefit Cost [Abstract] | |||
Total contributions to the pension plans during the period | $ 150,000 | ||
Number of Xcel Energy's pension plans to which contributions were made | Plan | 4 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at beginning of period | $ 876,589 | |
Accumulated other comprehensive loss at end of period | 891,987 | |
Gains and Losses on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss at beginning of period | (69) | $ (133) |
Losses reclassified from net accumulated other comprehensive loss | 23 | 19 |
Net current period other comprehensive income | 23 | 19 |
Accumulated other comprehensive loss at end of period | $ (46) | $ (114) |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassification from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total, pre-tax | $ (41,727) | $ (36,176) | |
Tax benefit | 10,310 | 13,757 | |
Gains and Losses on Cash Flow Hedges | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total, pre-tax | 31 | 31 | |
Tax benefit | (8) | (12) | |
Total, net of tax | 23 | 19 | |
Gains and Losses on Cash Flow Hedges | Interest Rate Derivatives | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest charges | [1] | $ 31 | $ 31 |
[1] | Included in interest charges. |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 269,565 | $ 261,359 | |
Alternative revenue and other | 3,579 | 3,572 | |
Total operating revenues | $ 273,144 | 264,931 | |
Maximum number of months following end of annual period in which revenues are earned to be included in incentive programs | 24 months | ||
Tolerance band | 2 | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | [1] | $ 273,144 | 264,931 |
Retail | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 229,380 | 217,104 | |
Retail | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 98,145 | 92,691 | |
Retail | Commercial and industrial (C&I) | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 129,392 | 122,662 | |
Retail | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 1,843 | 1,751 | |
Interchange | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 37,674 | 42,378 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 2,511 | 1,877 | |
Regulated Electric | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 213,404 | 213,290 | |
Alternative revenue and other | 2,962 | 3,019 | |
Total operating revenues | 216,475 | 216,405 | |
Regulated Electric | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | [1] | 216,366 | 216,309 |
Regulated Electric | Retail | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 174,226 | 169,943 | |
Regulated Electric | Retail | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 67,803 | 66,043 | |
Regulated Electric | Retail | Commercial and industrial (C&I) | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 104,817 | 102,380 | |
Regulated Electric | Retail | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 1,606 | 1,520 | |
Regulated Electric | Interchange | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 37,674 | 42,378 | |
Regulated Electric | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 1,504 | 969 | |
Regulated Natural Gas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 55,883 | 47,794 | |
Alternative revenue and other | 617 | 553 | |
Total operating revenues | 56,648 | 48,461 | |
Regulated Natural Gas | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 56,500 | 48,347 | |
Regulated Natural Gas | Retail | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 54,876 | 46,886 | |
Regulated Natural Gas | Retail | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 30,326 | 26,628 | |
Regulated Natural Gas | Retail | Commercial and industrial (C&I) | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 24,550 | 20,258 | |
Regulated Natural Gas | Retail | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 0 | 0 | |
Regulated Natural Gas | Interchange | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 0 | 0 | |
Regulated Natural Gas | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 1,007 | 908 | |
All Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 278 | 275 | |
Alternative revenue and other | 0 | 0 | |
Total operating revenues | 278 | 275 | |
All Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 278 | 275 | |
All Other | Retail | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 278 | 275 | |
All Other | Retail | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 16 | 20 | |
All Other | Retail | Commercial and industrial (C&I) | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 25 | 24 | |
All Other | Retail | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 237 | 231 | |
All Other | Interchange | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 0 | 0 | |
All Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 0 | $ 0 | |
[1] | (a) Operating revenues include $38 million and $42 million of affiliate electric revenue for the three months ended March 31, 2018 and 2017, respectively. |