Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'NORTHERN STATES POWER CO /WI/ | ' |
Entity Central Index Key | '0000072909 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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_INC
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating revenues | ' | ' | ' | ' |
Electric | $198,277 | $185,374 | $409,374 | $376,185 |
Natural gas | 29,539 | 24,555 | 103,330 | 74,912 |
Other | 298 | 246 | 552 | 493 |
Total operating revenues | 228,114 | 210,175 | 513,256 | 451,590 |
Operating expenses | ' | ' | ' | ' |
Electric fuel and purchased power, non-affiliates | 2,684 | 1,862 | 9,180 | 6,032 |
Purchased power, affiliates | 104,532 | 100,043 | 216,458 | 198,985 |
Cost of natural gas sold and transported | 19,194 | 14,302 | 70,336 | 45,287 |
Operating and maintenance expenses | 48,433 | 42,992 | 92,664 | 84,668 |
Conservation program expenses | 3,015 | 3,118 | 5,687 | 6,110 |
Depreciation and amortization | 19,874 | 19,051 | 39,181 | 37,906 |
Taxes (other than income taxes) | 6,652 | 6,341 | 13,449 | 12,735 |
Total operating expenses | 204,384 | 187,709 | 446,955 | 391,723 |
Operating income | 23,730 | 22,466 | 66,301 | 59,867 |
Other (expense) income, net | -70 | 155 | 54 | 270 |
Allowance for funds used during construction — equity | 1,767 | 780 | 3,339 | 1,726 |
Interest charges and financing costs | ' | ' | ' | ' |
Interest charges — includes other financing costs of $377, $380, $751 and $761, respectively | 6,968 | 6,814 | 13,835 | 13,669 |
Allowance for funds used during construction — debt | -850 | -400 | -1,608 | -809 |
Total interest charges and financing costs | 6,118 | 6,414 | 12,227 | 12,860 |
Income before income taxes | 19,309 | 16,987 | 57,467 | 49,003 |
Income taxes | 7,287 | 6,443 | 21,210 | 18,774 |
Net income | $12,022 | $10,544 | $36,257 | $30,229 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest charges and financing costs | ' | ' | ' | ' |
Other financing costs | $377 | $380 | $751 | $761 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Comprehensive income: | ' | ' | ' | ' |
Net income | $12,022 | $10,544 | $36,257 | $30,229 |
Derivative instruments: | ' | ' | ' | ' |
Reclassification of losses to net income, net of tax of $12, $14, $25 and $26, respectively | 19 | 18 | 37 | 37 |
Other comprehensive income | 19 | 18 | 37 | 37 |
Comprehensive income | $12,041 | $10,562 | $36,294 | $30,266 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative instruments: | ' | ' | ' | ' |
Reclassification of losses to net income, net of tax | $12 | $14 | $25 | $26 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net income | $36,257 | $30,229 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 39,754 | 38,476 |
Deferred income taxes | 16,877 | 15,407 |
Amortization of investment tax credits | -337 | -332 |
Allowance for equity funds used during construction | -3,339 | -1,726 |
Net derivative losses (gains) | 108 | -344 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 2,105 | 1,134 |
Accrued unbilled revenues | 10,460 | 9,928 |
Inventories | 2,672 | 1,913 |
Other current assets | 3,680 | 3,442 |
Accounts payable | -3,981 | -5,435 |
Net regulatory assets and liabilities | -23,547 | -806 |
Other current liabilities | -22 | 1,670 |
Pension and other employee benefit obligations | -7,378 | -10,234 |
Change in other noncurrent assets | 101 | 329 |
Change in other noncurrent liabilities | 872 | 630 |
Net cash provided by operating activities | 74,282 | 84,281 |
Investing activities | ' | ' |
Utility capital/construction expenditures | -124,624 | -81,603 |
Allowance for equity funds used during construction | 3,339 | 1,726 |
Other, net | 8 | -230 |
Net cash used in investing activities | -121,277 | -80,107 |
Financing activities | ' | ' |
Repayments of short-term borrowings, net | -57,000 | -37,000 |
Proceeds from (repayments of) notes payable to affiliate | 30 | -80 |
Proceeds from Issuance of Long-term Debt | 98,926 | 0 |
Repayments of long-term debt | -36 | -92 |
Capital contributions from parent | 20,479 | 45,093 |
Dividends paid to parent | -16,089 | -15,186 |
Net cash provided by (used in) financing activities | 46,310 | -7,265 |
Net change in cash and cash equivalents | -685 | -3,091 |
Cash and cash equivalents at beginning of period | 1,349 | 4,459 |
Cash and cash equivalents at end of period | 664 | 1,368 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest (net of amounts capitalized) | -11,516 | -12,122 |
Cash (paid) received for income taxes, net | -359 | 39 |
Supplemental disclosure of non-cash investing transactions: | ' | ' |
Property, plant and equipment additions in accounts payable | $16,844 | $9,134 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $664 | $1,349 |
Accounts receivable, net | 51,684 | 57,674 |
Accounts receivable from affiliates | 5,480 | 1,595 |
Accrued unbilled revenues | 41,174 | 51,634 |
Inventories | 18,803 | 21,475 |
Regulatory assets | 24,835 | 14,866 |
Prepaid taxes | 24,278 | 27,518 |
Deferred income taxes | 10,975 | 14,953 |
Prepayments and other | 4,356 | 5,056 |
Total current assets | 182,249 | 196,120 |
Property, plant and equipment, net | 1,521,829 | 1,442,779 |
Other assets | ' | ' |
Regulatory assets | 252,169 | 233,193 |
Other investments | 3,643 | 3,650 |
Other | 4,164 | 3,651 |
Total other assets | 259,976 | 240,494 |
Total assets | 1,964,054 | 1,879,393 |
Current liabilities | ' | ' |
Current portion of long-term debt | 1,207 | 107 |
Short-term debt | 11,000 | 68,000 |
Notes payable to affiliates | 500 | 470 |
Accounts payable | 34,353 | 52,086 |
Accounts payable to affiliates | 28,360 | 24,986 |
Dividends payable to parent | 16,243 | 8,032 |
Regulatory liabilities | 4,047 | 9,717 |
Taxes accrued | 5,539 | 5,638 |
Environmental liabilities | 34,380 | 28,785 |
Accrued interest | 7,593 | 7,507 |
Other | 8,341 | 9,376 |
Total current liabilities | 151,563 | 214,704 |
Deferred credits and other liabilities | ' | ' |
Deferred income taxes | 320,334 | 305,139 |
Deferred investment tax credits | 9,361 | 9,698 |
Regulatory liabilities | 134,492 | 126,424 |
Environmental liabilities | 80,109 | 79,703 |
Customer advances | 16,678 | 16,008 |
Pension and employee benefit obligations | 38,330 | 45,708 |
Other | 9,362 | 9,237 |
Total deferred credits and other liabilities | 608,666 | 591,917 |
Commitments and contingencies | ' | ' |
Capitalization | ' | ' |
Long-term debt | 567,070 | 468,490 |
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at June 30, 2014 and Dec. 31, 2013, respectively | 93,300 | 93,300 |
Additional paid in capital | 269,322 | 248,844 |
Retained earnings | 274,457 | 262,499 |
Accumulated other comprehensive loss | -324 | -361 |
Total common stockholder’s equity | 636,755 | 604,282 |
Total liabilities and equity | $1,964,054 | $1,879,393 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 |
Managements_Opinion
Management's Opinion | 6 Months Ended |
Jun. 30, 2014 | |
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 June 30, 2014 and Dec. 31, 2013; the results of its operations, including the components of net income and comprehensive income, for the three and six months ended June 30, 2014 and 2013; and its cash flows for the six months ended June 30, 2014 and 2013. All adjustments are of a normal, recurring nature, except as otherwise disclosed. Management has also evaluated the impact of events occurring after June 30, 2014 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, 2013 balance sheet information has been derived from the audited 2013 consolidated financial statements included in the NSP-Wisconsin Annual Report on Form 10-K for the year ended Dec. 31, 2013. 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, 2013, filed with the SEC on Feb. 24, 2014. 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_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
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, 2013, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. |
Accounting_Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Accounting Pronouncements | ' |
Accounting Pronouncements | |
Recently Issued | |
Revenue Recognition - In May 2014, the Financial Accounting Standards Board issued Revenue from Contracts with Customers, Topic 606 (Accounting Standards Update (ASU) No. 2014-09), which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. This guidance, which includes additional disclosure requirements regarding revenue, cash flows and obligations related to contracts with customers, will be effective for interim and annual reporting periods beginning after Dec. 15, 2016. NSP-Wisconsin is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. |
Selected_Balance_Sheet_Data
Selected Balance Sheet Data | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Selected Balance Sheet Data | ' | ||||||||
Selected Balance Sheet Data | |||||||||
(Thousands of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Accounts receivable, net | |||||||||
Accounts receivable | $ | 56,469 | $ | 62,585 | |||||
Less allowance for bad debts | (4,785 | ) | (4,911 | ) | |||||
$ | 51,684 | $ | 57,674 | ||||||
(Thousands of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Inventories | |||||||||
Materials and supplies | $ | 6,882 | $ | 6,437 | |||||
Fuel | 7,071 | 5,915 | |||||||
Natural gas | 4,850 | 9,123 | |||||||
$ | 18,803 | $ | 21,475 | ||||||
(Thousands of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Property, plant and equipment, net | |||||||||
Electric plant | $ | 1,984,497 | $ | 1,913,354 | |||||
Natural gas plant | 239,659 | 236,047 | |||||||
Common and other property | 114,063 | 112,886 | |||||||
Construction work in progress | 154,992 | 127,954 | |||||||
Total property, plant and equipment | 2,493,211 | 2,390,241 | |||||||
Less accumulated depreciation | (971,382 | ) | (947,462 | ) | |||||
$ | 1,521,829 | $ | 1,442,779 | ||||||
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
Except to the extent noted below, the circumstances set forth in Note 6 to the consolidated financial statements included in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2013 appropriately represent, in all material respects, the current status of other income tax matters, and are incorporated herein by reference. | |||||||||
Federal Audit — 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 2008 federal income tax return expired in September 2012. The statute of limitations applicable to Xcel Energy’s 2009 federal income tax return expires in June 2015. In the third quarter of 2012, the Internal Revenue Service (IRS) commenced an examination of tax years 2010 and 2011, including a 2009 carryback claim. As of June 30, 2014, the IRS had proposed an adjustment to several federal tax loss carryback claims that would result in $10 million of income tax expense for the 2009 through 2011 claims and the anticipated claim for 2013. NSP-Wisconsin is not expected to accrue any income tax expense related to this adjustment. Xcel Energy is continuing to work through the audit process, but 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 June 30, 2014, NSP-Wisconsin’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2009. In the first quarter of 2014, the state of Wisconsin completed an examination of tax years 2009 through 2011. No material adjustments were proposed for those tax years. As of June 30, 2014, there were no state income tax audits in progress. | |||||||||
Unrecognized Tax Benefits — The unrecognized tax benefit balance includes permanent tax positions, which if recognized would affect the annual effective tax rate (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) | June 30, 2014 | Dec. 31, 2013 | |||||||
Unrecognized tax benefit — Permanent tax positions | $ | 0.1 | $ | 0.1 | |||||
Unrecognized tax benefit — Temporary tax positions | 1.7 | 1.4 | |||||||
Total unrecognized tax benefit | $ | 1.8 | $ | 1.5 | |||||
The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: | |||||||||
(Millions of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
NOL and tax credit carryforwards | $ | (0.4 | ) | $ | (0.4 | ) | |||
It is reasonably possible that NSP-Wisconsin’s amount of unrecognized tax benefits could significantly change in the next 12 months as the IRS audit progresses and state audits resume. As the IRS examination moves closer to completion, the change in the unrecognized tax benefit is not expected to be material. | |||||||||
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 June 30, 2014 and Dec. 31, 2013 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of June 30, 2014 or Dec. 31, 2013. |
Rate_Matters_Rate_Matters_Note
Rate Matters Rate Matters (Notes) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Public Utilities, General Disclosures [Abstract] | ' | ||||
Public Utilities Disclosure [Text Block] | ' | ||||
Rate Matters | |||||
Pending Regulatory Proceedings — Public Service Commission of Wisconsin (PSCW) | |||||
NSP-Wisconsin 2015 Electric Rate Case — In May 2014, NSP-Wisconsin filed a request with the PSCW to increase electric rates by $20.6 million, or 3.2 percent, effective Jan. 1, 2015. The request is for the limited purpose of updating 2015 electric rates to reflect anticipated increases in the production and transmission fixed charges and the fuel and purchased power components of the interchange agreement with NSP-Minnesota. No changes are being requested to the capital structure or the 10.2 percent return on equity (ROE) authorized by the PSCW in the 2014 rate case. As part of an agreement with stakeholders to limit the size and scope of the case, NSP-Wisconsin also agreed to an earnings cap for 2015 only, in which 100 percent of the earnings above the authorized ROE would be refunded to customers. | |||||
The major cost components of the requested increase are summarized below: | |||||
(Millions of Dollars) | Request | ||||
Production and transmission fixed charges | $ | 28.1 | |||
Fuel and purchased power | 13.9 | ||||
Sub-Total | $ | 42 | |||
NSP-Minnesota transmission depreciation reserve | $ | (16.2 | ) | ||
Monticello extended power uprate deferral | (5.2 | ) | |||
Total | $ | 20.6 | |||
The next steps in the procedural schedule are expected to be as follows: | |||||
• | Direct Testimony (PSCW staff and intervenors) — Oct. 3, 2014; | ||||
• | Rebuttal Testimony — Oct. 17, 2014; | ||||
• | Surrebuttal Testimony — Oct. 24, 2014; and | ||||
• | Evidentiary Hearing — Oct. 28, 2014; | ||||
A final PSCW decision is anticipated by the end of the year with final rates implemented in January 2015. | |||||
Recently Concluded Regulatory Proceedings — Michigan Public Service Commission (MPSC) | |||||
Michigan 2014 Natural Gas Rate Case — In December 2013, NSP-Wisconsin filed a request with the MPSC to increase rates for natural gas distribution service by $527,000, or 8.8 percent and implement a gas meter pressure correction factor. The filing was based on a 2014 forecast test year, a ROE of 10.4 percent, an equity ratio of 52.54 percent and a forecasted average rate base of approximately $4.7 million. The MPSC staff was the only other party to the proceeding. | |||||
In May 2014, the MPSC issued an order approving the settlement agreement reached by NSP-Wisconsin and the MPSC staff, authorizing an increase of $500,000 or 8.4 percent, based on a 10.2 percent ROE and accepting the proposed gas meter pressure correction factor. Under the terms of the settlement agreement, the rate increase will be phased in over two years, with phase one rates effective July 1, 2014 and phase two rates effective July 1, 2015. | |||||
Pending Regulatory Proceedings — Federal Energy Regulatory Commission (FERC) | |||||
MISO ROE Complaint — In November 2013, a group of customers filed a complaint at the FERC against MISO transmission owners, including NSP-Minnesota and NSP-Wisconsin. The complaint argues for a reduction in the ROE applicable to transmission formula rates in the MISO region from 12.38 percent to 9.15 percent, a prohibition on capital structures in excess of 50 percent equity, and the removal of ROE adders (including those for regional transmission organization (RTO) membership and being an independent transmission company), effective Nov. 12, 2013. | |||||
In January 2014, Xcel Energy filed an answer to the complaint asserting that the 9.15 percent ROE would be unreasonable and that the complainants failed to demonstrate the NSP System equity capital structure was unreasonable. The MISO transmission owners separately answered the complaint, arguing the complainants do not have standing to challenge the MISO Tariff provisions, have not met their burden of proof to demonstrate that the current FERC-approved ROE, capital structure and other incentives are unjust and unreasonable, and the complaint should be dismissed. Other parties filed comments supporting a reduction in the MISO regional ROE, the equity capital structure limitations, and limits on ROE incentives, and supported the proposed effective date. In January 2014, the complainants filed an answer to the MISO transmission owners’ motion to dismiss. The complaint is pending FERC action. | |||||
In June 2014, the FERC issued an order in a different ROE proceeding adopting a new ROE methodology for electric utilities. The new ROE methodology requires electric utilities to use a two-step discounted cash flow analysis to estimate cost of equity that incorporates both short-term and long-term growth projections, instead of only short-term growth. The FERC set the issue of the appropriate long-term growth rate for further hearing procedures. The FERC could order settlement judge procedures, and if necessary a hearing, to apply the new methodology to MISO transmission owners. The new FERC ROE methodology is expected to reduce transmission revenue, net of expense, between $5 million and $7 million annually for NSP-Minnesota and NSP-Wisconsin. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
Commitments and Contingencies | |||||||||
Except to the extent noted below and in Note 5, the circumstances set forth in Notes 10 and 11 to the consolidated financial statements in NSP-Wisconsin’s Annual Report on Form 10-K for the year ended Dec. 31, 2013 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 limits their exposure to a maximum amount stated in the guarantee. The guarantee contains no recourse provisions and requires no collateral. | |||||||||
The following table presents the guarantee issued and outstanding for NSP-Wisconsin: | |||||||||
(Millions of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Guarantees issued and outstanding | $ | 1 | $ | 1 | |||||
Current exposure under these guarantees | 0.2 | 0.3 | |||||||
Environmental Contingencies | |||||||||
Ashland Manufactured Gas Plant (MGP) Site — NSP-Wisconsin has been named a potentially responsible party (PRP) for contamination at a site in Ashland, Wis. The Ashland/Northern States Power Lakefront Superfund Site (the Ashland site) includes property owned by NSP-Wisconsin, which was a site previously operated by a predecessor company as a MGP facility (the Upper Bluff), and two other properties: an adjacent city lakeshore park area (Kreher Park), on which an unaffiliated third party previously operated a sawmill and conducted creosote treating operations; and an area of Lake Superior’s Chequamegon Bay adjoining the park (the Sediments). | |||||||||
The U.S. Environmental Protection Agency (EPA) issued its Record of Decision (ROD) in 2010, which describes the preferred remedy the EPA has selected for the cleanup of the Ashland site. For the Sediments at the Ashland Site, the ROD preferred remedy is a hybrid remedy involving both dry excavation and wet conventional dredging methodologies (the Hybrid Remedy). The ROD also identifies the possibility of a wet conventional dredging only remedy for the Sediments (the Wet Dredge), contingent upon the completion of a successful Wet Dredge pilot study. | |||||||||
In 2011, the EPA issued special notice letters identifying several entities, including NSP-Wisconsin, as PRPs, for future remediation at the Ashland site. The special notice letters requested that those PRPs participate in negotiations with the EPA regarding how the PRPs intended to conduct or pay for the remediation at the Ashland site. As a result of settlement negotiations with NSP-Wisconsin, the EPA agreed to segment the Ashland site into separate areas. The first area (Phase I Project Area) includes soil and groundwater in Kreher Park and the Upper Bluff. The second area includes the Sediments. | |||||||||
In October 2012, a settlement among the EPA, the Wisconsin Department of Natural Resources, the Bad River and Red Cliff Bands of the Lake Superior Tribe of Chippewa Indians and NSP-Wisconsin was approved by the U.S. District Court for the Western District of Wisconsin. This settlement resolves claims against NSP-Wisconsin for its alleged responsibility for the remediation of the Phase I Project Area. Under the terms of the settlement, NSP-Wisconsin agreed to perform the remediation of the Phase I Project Area, but does not admit any liability with respect to the Ashland site. The settlement reflects a cost estimate for the cleanup of the Phase I Project Area of $40 million. Demolition activities occurred at the Ashland site in 2013. The final design for the soil, including excavation and treatment, as well as containment wall remedies was submitted to the EPA in April 2014 and work commenced in May 2014. A preliminary design for the groundwater remedy was also submitted to the EPA in April 2014 and those activities are expected to commence in 2015. Based on these updated designs, the updated cost estimate for the cleanup of the Phase I Project Area is approximately $52 million, of which $12 million has already been spent. The settlement also resolves claims by the federal, state and tribal trustees against NSP-Wisconsin for alleged natural resource damages at the Ashland site, including both the Phase I Project Area and the Sediments. As part of the settlement, NSP-Wisconsin has conveyed approximately 1,390 acres of land to the State of Wisconsin and tribal trustees. Fieldwork to address the Phase I Project Area at the Ashland site began at the end of 2012 and continues. | |||||||||
Negotiations are ongoing between the EPA and NSP-Wisconsin regarding who will pay for or perform the cleanup of the Sediments and what remedy will be implemented at the site to address the Sediments. In August and September 2013, NSP-Wisconsin performed field studies in the Sediments to gather more data about site conditions. The data from that investigation was received and reported to the EPA at the end of 2013. It is NSP-Wisconsin’s view that this data demonstrates the Hybrid Remedy is not safe or feasible to implement. The EPA’s ROD for the Ashland site includes estimates that the cost of the Hybrid Remedy is between $63 million and $77 million, with a potential deviation in such estimated costs of up to 50 percent higher to 30 percent lower. Also, in September 2013, the EPA requested NSP-Wisconsin consider re-submitting another proposal to perform a Wet Dredge pilot study for a portion of the Sediments. NSP-Wisconsin previously submitted a proposal for a Wet Dredge pilot study in 2011. In November 2013, NSP-Wisconsin submitted a revised Wet Dredge pilot study work plan proposal to the EPA. In May 2014, NSP-Wisconsin entered into a final administrative order on consent for the Wet Dredge pilot study with the EPA. Implementation of the pilot is anticipated in late summer or early fall of 2014. | |||||||||
In August 2012, NSP-Wisconsin also filed litigation against other PRPs for their share of the cleanup costs for the Ashland site. Trial for this matter is scheduled for April 2015. Negotiations between the EPA, NSP-Wisconsin and several of the other PRPs regarding the PRPs’ fair share of the cleanup costs for the Ashland site are also ongoing. | |||||||||
At June 30, 2014 and Dec. 31, 2013, NSP-Wisconsin had recorded a liability of $113.3 million and $104.6 million, respectively, for the Ashland site based upon potential remediation and design costs together with estimated outside legal and consultant costs; of which $33.4 million and $25.2 million, respectively, was considered a current liability. NSP-Wisconsin’s potential liability, the actual cost of remediation and the time frame over which the amounts may be paid are subject to change. NSP-Wisconsin also continues to work to identify and access state and federal funds to apply to the ultimate remediation cost of the entire site. Unresolved issues or factors that could result in higher or lower NSP-Wisconsin remediation costs for the Ashland site include the cleanup approach implemented for the Sediments, which party implements the cleanup, the timing of when the cleanup is implemented, potential contributions by other PRPs and whether federal or state funding may be directed to help offset remediation costs at the Ashland site. | |||||||||
NSP-Wisconsin has deferred the estimated site remediation costs, as a regulatory asset, based on an expectation that the PSCW will continue to allow NSP-Wisconsin to recover payments for environmental remediation from its customers. The PSCW has consistently authorized in NSP-Wisconsin rates recovery of all remediation costs incurred at the Ashland site, and has authorized recovery of MGP remediation costs by other Wisconsin utilities. External MGP remediation costs are subject to deferral in the Wisconsin retail jurisdiction and are reviewed for prudence as part of the Wisconsin retail rate case process. Under an existing PSCW policy, utilities have recovered remediation costs for MGPs in natural gas rates, amortized over a four- to six-year period. The PSCW historically has not allowed utilities to recover their carrying costs on unamortized regulatory assets for MGP remediation. | |||||||||
In the 2013 rate case decision, the PSCW recognized the potential magnitude of the future liability for the cleanup at the Ashland site and granted an exception to its existing policy at the request of NSP-Wisconsin. The elements of this exception include: (1) approval to begin recovery of estimated Phase 1 Project costs beginning on Jan. 1, 2013; (2) approval to amortize these estimated costs over a ten-year period; and (3) approval to apply a three percent carrying cost to the unamortized regulatory asset. In the 2014 rate case decision, the PSCW continued the cost recovery treatment established in the 2013 rate case, with respect to the 2013 and 2014 cleanup costs for the Phase I Project Area. The PSCW determined the timing of the cleanup of the Sediments was uncertain and declined NSP-Wisconsin’s request to begin cost recovery for this portion of the cleanup in 2014 rates. However, the PSCW allowed NSP-Wisconsin to increase its 2014 amortization expense related to the cleanup by an additional $1.1 million to offset the need for a rate decrease for the natural gas utility. The cost recovery treatment granted by the PSCW in the 2013 and 2014 rate cases will help mitigate the rate impact to natural gas customers and the risk to NSP-Wisconsin from a longer amortization period. | |||||||||
Environmental Requirements | |||||||||
Water and waste | |||||||||
Federal Clean Water Act (CWA) Effluent Limitations Guidelines (ELG) — In June 2013, the EPA published a proposed ELG rule for power plants that use coal, natural gas, oil or nuclear materials as fuel and discharge treated effluent to surface waters as well as utility-owned landfills that receive coal combustion residuals. The final rule is now expected in September 2015. Under the current proposed rule, facilities would need to comply as soon as possible after July 2017 but no later than July 2022. The impact of this rule on NSP-Wisconsin is uncertain at this time. | |||||||||
Federal CWA Section 316 (b) — The federal CWA requires the EPA to regulate cooling water intake structures to assure that these structures reflect the best technology available for minimizing adverse environmental impacts to aquatic species. In 2011, the EPA published the proposed rule that sets standards for minimization of aquatic species impingement, but leaves entrainment reduction requirements at the discretion of the permit writer and the regional EPA office. A final rule was signed by the EPA in May 2014. The timing of compliance with the requirements will vary from plant-to-plant since the new rules do not have a final compliance deadline. Since some of the compliance requirements depend on site-specific determinations by state regulators, the exact cost is somewhat uncertain. NSP-Wisconsin estimates the most likely cost for compliance is approximately $4 million and anticipates these costs will be fully recoverable in rates. | |||||||||
Federal CWA Waters of the United States Rule — In April 2014, the EPA and the U.S. Army Corps of Engineers issued a proposed rule that significantly expands the types of water bodies regulated under the CWA. If finalized as proposed, this rule could delay the siting of new pipelines, transmission lines and distribution lines, increase project costs and expand permitting and reporting requirements. The ultimate impact of the proposed rule will depend on the specific requirements of the final rule and cannot be determined at this time. A final rule is not anticipated before the first quarter of 2015. | |||||||||
Air | |||||||||
EPA Greenhouse Gas (GHG) Permitting — In 2011, new EPA permitting requirements became effective for GHG emissions of new and modified large stationary sources, which were applicable to the construction of new power plants or power plant modifications that increase emissions above a certain threshold. These rules were upheld by the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit), but in June 2014 the U.S. Supreme Court reversed the EPA’s GHG emission thresholds for this program. The Supreme Court decided the EPA could not adopt GHG thresholds that would require permitting for new and modified large stationary sources. However, the Supreme Court also decided if a new or modified stationary source becomes subject to the permitting requirements by exceeding emission thresholds for other pollutants, then GHG emissions may be evaluated as part of the permitting process. NSP-Wisconsin is unable to determine the cost of compliance with these new EPA requirements as it is not clear whether these requirements will apply to future changes at NSP-Wisconsin’s power plants. | |||||||||
GHG Emission Standard for Existing Sources — In June 2014, the EPA published its proposed rule on GHG emission standards for existing power plants. Comments are due to the EPA on Oct. 16, 2014 and a final rule is anticipated in June 2015. Following adoption of the final rule, states must develop implementation plans by June 2016, with the possibility of an extension to June 2017 (June 2018 if submitting a joint plan with other states). Among other things, the proposed rule would require that state plans include enforceable measures to ensure emissions from existing power plants in the state achieve the EPA’s state-specific interim (2020-2029) and final (2030 and thereafter) emission performance targets. The plan will likely require additional emission reductions in states in which NSP-Wisconsin operates. It is not possible to evaluate the impact of existing source standards until the EPA promulgates a final rule and states have adopted their applicable state plans. | |||||||||
GHG New Source Performance Standard (NSPS) Proposal — In January 2014, the EPA re-proposed a GHG NSPS for newly constructed power plants which would set performance standards (maximum carbon dioxide emission rates) for coal- and natural gas-fired power plants. For coal power plants, the NSPS requires an emissions level equivalent to partial carbon capture and storage (CCS) technology; for gas-fired power plants, the NSPS reflects emissions levels from combined cycle technology with no CCS. The EPA continues to propose that the NSPS not apply to modified or reconstructed existing power plants. In addition, installation of control equipment on existing plants would not constitute a “modification” to those plants under the NSPS program. It is not possible to evaluate the impact of the re-proposed NSPS until its final requirements are known. | |||||||||
GHG NSPS for Modified and Reconstructed Power Plants — In June 2014, the EPA published a proposed NSPS that would apply to GHG emissions from power plants that are modified or reconstructed. Comments are due to the EPA on Oct. 16, 2014 and a final rule is anticipated in June 2015. A modification is a change to an existing source that increases the maximum achievable hourly rate of emissions. A reconstruction involves the replacement of components at a unit to the extent that the capital cost of the new components exceeds 50 percent of the capital cost of an entirely new comparable unit. The proposed standards are not based on and would not require installation of CCS technology. Instead, the proposed standard for coal-fired power plants would require a combination of best operating practices and equipment upgrades. The proposal for gas-fired power plants would require emissions standards based on efficient combined cycle technology. It is not possible to evaluate the impact of these proposed standards until the final requirements are known. In addition, it is not clear whether these requirements, once adopted, would apply to future changes at NSP-Wisconsin’s power plants. | |||||||||
Cross-State Air Pollution Rule (CSAPR) — In 2011, the EPA issued the CSAPR to address long range transport of particulate matter and ozone by requiring reductions in sulfur dioxide (SO2) and nitrous oxide (NOx) from utilities in the eastern half of the United States, including Wisconsin. The CSAPR would set more stringent requirements than the proposed Clean Air Transport Rule. The rule would also create an emissions trading program. | |||||||||
In August 2012, the D.C. Circuit vacated the CSAPR and remanded it back to the EPA. The D.C. Circuit stated the EPA must continue administering the Clean Air Interstate Rule (CAIR) pending adoption of a valid replacement. In April 2014, the U.S. Supreme Court reversed and remanded the case to the D.C. Circuit. The Supreme Court held that the EPA’s rule design did not violate the Clean Air Act and that states had received adequate opportunity to develop their own plans. Because the D.C. Circuit overturned the CSAPR on two over-arching issues, there are many other issues the D.C. Circuit did not rule on that will now need to be considered on remand. In June 2014, the EPA filed a motion with the D.C. Circuit asking it to lift the stay of the CSAPR. The EPA requested CSAPR’s 2012 compliance obligations be imposed starting in January 2015. The D.C. Circuit has not yet ruled on the motion to lift the stay. Because it is not yet known how the litigation over the remaining issues will be resolved or how the D.C. Circuit will rule on the motion to lift the stay, it is not yet known what requirements may be imposed in the future, or their timing. | |||||||||
As the EPA continues administering the CAIR while the CSAPR or a replacement rule is pending, NSP-Wisconsin expects to comply with the CAIR as described below. | |||||||||
CAIR — In 2005, the EPA issued the CAIR to further regulate SO2 and NOx emissions. Under the CAIR’s cap and trade structure, companies can comply through capital investments in emission controls or purchase of emission allowances from other utilities making reductions on their systems. NSP-Wisconsin purchased allowances in 2012 and 2013 and plans to continue to purchase allowances in 2014 to comply with the CAIR. At June 30, 2014, the estimated annual CAIR NOx allowance cost for NSP-Wisconsin did not have a material impact on the results of operations, financial position or cash flows. | |||||||||
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. |
Borrowings_and_Other_Financing
Borrowings and Other Financing Instruments | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
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 June 30, 2014 | Twelve Months Ended Dec. 31, 2013 | |||||||||
Borrowing limit | $ | 150 | $ | 150 | |||||||
Amount outstanding at period end | 11 | 68 | |||||||||
Average amount outstanding | 72 | 20 | |||||||||
Maximum amount outstanding | 101 | 71 | |||||||||
Weighted average interest rate, computed on a daily basis | 0.25 | % | 0.31 | % | |||||||
Weighted average interest rate at period end | 0.24 | 0.27 | |||||||||
Letters of Credit — NSP-Wisconsin may use letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At June 30, 2014 and Dec. 31, 2013, 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 June 30, 2014, NSP-Wisconsin had the following committed credit facility available (in millions of dollars): | |||||||||||
Credit Facility (a) | Drawn (b) | Available | |||||||||
$ | 150 | $ | 11 | $ | 139 | ||||||
(a) | Credit facility expires in July 2017. | ||||||||||
(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 June 30, 2014 and Dec. 31, 2013. | |||||||||||
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) | June 30, 2014 | Dec. 31, 2013 | |||||||||
Notes payable to affiliates | $ | 0.5 | $ | 0.5 | |||||||
Weighted average interest rate at period end | 0.43 | % | 0.24 | % | |||||||
Long-Term Borrowings | |||||||||||
In June 2014, NSP-Wisconsin issued $100 million of 3.30 percent first mortgage bonds due June 15, 2024. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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. 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, 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 June 30, 2014, accumulated other comprehensive loss related to interest rate derivatives included $0.1 million of net losses expected to be reclassified into earnings during the next 12 months as the related hedged interest rate transactions impact earnings. | |||||||||||||||||||||||||
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 June 30, 2014 and Dec. 31, 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) (a)(b) | June 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Million British thermal units of natural gas | 448 | 987 | |||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
There were immaterial pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings during the three months ended June 30, 2014 and 2013, and $0.1 million of net losses reclassified from accumulated other comprehensive loss into earnings during the six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
During the three months ended June 30, 2014, changes in the fair value of natural gas commodity derivatives resulted in immaterial net losses recognized as regulatory assets and liabilities. For the three months ended June 30, 2013, changes in the fair value of natural gas commodity derivatives resulted in net losses of $0.2 million, recognized as regulatory assets and liabilities. During the six months ended June 30, 2014, changes in the fair value of natural gas commodity derivatives resulted in net gains of $0.7 million, recognized as regulatory assets and liabilities. During the six months ended June 30, 2013, changes in the fair value of natural gas commodity derivatives resulted in net losses of $0.2 million, recognized as regulatory assets and liabilities. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. | |||||||||||||||||||||||||
Natural gas commodity derivatives settlement gains of $0.5 million were recognized for the six months ended June 30, 2014, 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. There were immaterial natural gas commodity derivatives settlement losses recognized during the three months ended June 30, 2014, and three and six months ended June 30, 2013. | |||||||||||||||||||||||||
NSP-Wisconsin had no derivative instruments designated as fair value hedges during the three and six months ended June 30, 2014 and 2013. 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 considering 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 at June 30, 2014 and Dec. 31, 2013: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Fair Value | Counterparty | Total (b) | |||||||||||||||||||
Total | Netting (a) | ||||||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 321 | $ | — | $ | 321 | $ | — | $ | 321 | |||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | Counterparty | Total (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | Netting (a) | ||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 580 | $ | — | $ | 580 | $ | — | $ | 580 | |||||||||||||
(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 June 30, 2014 and Dec. 31, 2013. 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 assets balance of $4.4 million and $5.1 million at June 30, 2014 and Dec. 31, 2013, respectively, in the consolidated balance sheets. | ||||||||||||||||||||||||
Fair Value of Long-Term Debt | |||||||||||||||||||||||||
As of June 30, 2014 and Dec. 31, 2013, other financial instruments for which the carrying amount did not equal fair value were as follows: | |||||||||||||||||||||||||
June 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
(Thousands of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt, including current portion | $ | 568,277 | $ | 652,505 | $ | 468,597 | $ | 518,269 | |||||||||||||||||
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 June 30, 2014 and Dec. 31, 2013, 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_Expense_Income_Net
Other (Expense) Income, Net | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other (Expense) Income, Net | ' | ||||||||||||||||
Other (Expense) Income, Net | |||||||||||||||||
Other (expense) income, net consisted of the following: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest income | $ | 12 | $ | 197 | $ | 216 | $ | 396 | |||||||||
Other nonoperating income | 44 | 29 | 79 | 70 | |||||||||||||
Insurance policy expense | (124 | ) | (69 | ) | (236 | ) | (191 | ) | |||||||||
Other nonoperating expense | (2 | ) | (2 | ) | (5 | ) | (5 | ) | |||||||||
Other (expense) income, net | $ | (70 | ) | $ | 155 | $ | 54 | $ | 270 | ||||||||
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 (O&M) expenses and interest expense are allocated based on cost causation allocators. A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising. | |||||||||||||||||||||
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | ||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Operating revenues (a) | $ | 198,277 | $ | 29,539 | $ | 298 | $ | — | $ | 228,114 | |||||||||||
Intersegment revenues | 123 | 849 | — | (972 | ) | — | |||||||||||||||
Total revenues | $ | 198,400 | $ | 30,388 | $ | 298 | $ | (972 | ) | $ | 228,114 | ||||||||||
Net income (loss) | $ | 11,799 | $ | (141 | ) | $ | 364 | $ | — | $ | 12,022 | ||||||||||
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | ||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||
Operating revenues (a) | $ | 185,374 | $ | 24,555 | $ | 246 | $ | — | $ | 210,175 | |||||||||||
Intersegment revenues | 83 | 278 | — | (361 | ) | — | |||||||||||||||
Total revenues | $ | 185,457 | $ | 24,833 | $ | 246 | $ | (361 | ) | $ | 210,175 | ||||||||||
Net income | $ | 10,068 | $ | 201 | $ | 275 | $ | — | $ | 10,544 | |||||||||||
(a) | Operating revenues include $33 million of affiliate electric revenue for the three months ended June 30, 2014 and 2013. | ||||||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Other | Eliminations | Total | |||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Operating revenues (a) | $ | 409,374 | $ | 103,330 | $ | 552 | $ | — | $ | 513,256 | |||||||||||
Intersegment revenues | 215 | 3,766 | — | (3,981 | ) | — | |||||||||||||||
Total revenues | $ | 409,589 | $ | 107,096 | $ | 552 | $ | (3,981 | ) | $ | 513,256 | ||||||||||
Net income | $ | 26,865 | $ | 7,568 | $ | 1,824 | $ | — | $ | 36,257 | |||||||||||
(Thousands of Dollars) | Regulated | Regulated | All | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Other | Eliminations | Total | |||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Operating revenues (a) | $ | 376,185 | $ | 74,912 | $ | 493 | $ | — | $ | 451,590 | |||||||||||
Intersegment revenues | 161 | 586 | — | (747 | ) | — | |||||||||||||||
Total revenues | $ | 376,346 | $ | 75,498 | $ | 493 | $ | (747 | ) | $ | 451,590 | ||||||||||
Net income | $ | 23,671 | $ | 5,825 | $ | 733 | $ | — | $ | 30,229 | |||||||||||
(a) | Operating revenues include $63 million and $65 million of affiliate electric revenue for the six months ended June 30, 2014 and 2013, respectively. |
Benefit_Plans_and_Other_Postre
Benefit Plans and Other Postretirement Benefits | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Benefit Plans and Other Postretirement Benefits | ' | ||||||||||||||||
Benefit Plans and Other Postretirement Benefits | |||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
Three Months Ended June 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 1,132 | $ | 1,420 | $ | 8 | $ | 6 | |||||||||
Interest cost | 1,814 | 1,731 | 197 | 190 | |||||||||||||
Expected return on plan assets | (2,410 | ) | (2,498 | ) | (13 | ) | (10 | ) | |||||||||
Amortization of prior service cost (credit) | 28 | 104 | (87 | ) | (88 | ) | |||||||||||
Amortization of net loss | 1,654 | 1,981 | 166 | 241 | |||||||||||||
Net benefit cost recognized for financial reporting | $ | 2,218 | $ | 2,738 | $ | 271 | $ | 339 | |||||||||
Six Months Ended June 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 2,264 | $ | 2,841 | $ | 17 | $ | 12 | |||||||||
Interest cost | 3,628 | 3,462 | 395 | 380 | |||||||||||||
Expected return on plan assets | (4,821 | ) | (4,997 | ) | (26 | ) | (21 | ) | |||||||||
Amortization of prior service cost (credit) | 56 | 208 | (175 | ) | (176 | ) | |||||||||||
Amortization of net loss | 3,308 | 3,962 | 333 | 482 | |||||||||||||
Net benefit cost recognized for financial reporting | $ | 4,435 | $ | 5,476 | $ | 544 | $ | 677 | |||||||||
In January 2014, contributions of $130.0 million were made across three of Xcel Energy’s pension plans, of which $8.0 million was attributable to NSP-Wisconsin. Xcel Energy does not expect additional pension contributions during 2014. |
Other_Comprehensive_Income
Other Comprehensive Income | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||
Other Comprehensive Income | ' | |||||||||
Other Comprehensive Income | ||||||||||
Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||
Accumulated other comprehensive loss at April 1 | $ | (343 | ) | $ | (418 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 19 | 18 | ||||||||
Net current period other comprehensive income | 19 | 18 | ||||||||
Accumulated other comprehensive loss at June 30 | $ | (324 | ) | $ | (400 | ) | ||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (361 | ) | $ | (437 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 37 | 37 | ||||||||
Net current period other comprehensive income | 37 | 37 | ||||||||
Accumulated other comprehensive loss at June 30 | $ | (324 | ) | $ | (400 | ) | ||||
Reclassifications from accumulated other comprehensive loss for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 31 | (a) | $ | 32 | (a) | ||||
Total, pre-tax | 31 | 32 | ||||||||
Tax benefit | (12 | ) | (14 | ) | ||||||
Total amounts reclassified, net of tax | $ | 19 | $ | 18 | ||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 62 | (a) | $ | 63 | (a) | ||||
Total, pre-tax | 62 | 63 | ||||||||
Tax benefit | (25 | ) | (26 | ) | ||||||
Total amounts reclassified, net of tax | $ | 37 | $ | 37 | ||||||
(a) | Included in interest charges. |
Selected_Balance_Sheet_Data_Ta
Selected Balance Sheet Data (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Accounts Receivable, Net | ' | ||||||||
(Thousands of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Accounts receivable, net | |||||||||
Accounts receivable | $ | 56,469 | $ | 62,585 | |||||
Less allowance for bad debts | (4,785 | ) | (4,911 | ) | |||||
$ | 51,684 | $ | 57,674 | ||||||
Inventories | ' | ||||||||
(Thousands of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Inventories | |||||||||
Materials and supplies | $ | 6,882 | $ | 6,437 | |||||
Fuel | 7,071 | 5,915 | |||||||
Natural gas | 4,850 | 9,123 | |||||||
$ | 18,803 | $ | 21,475 | ||||||
Property, Plant and Equipment, Net | ' | ||||||||
(Thousands of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Property, plant and equipment, net | |||||||||
Electric plant | $ | 1,984,497 | $ | 1,913,354 | |||||
Natural gas plant | 239,659 | 236,047 | |||||||
Common and other property | 114,063 | 112,886 | |||||||
Construction work in progress | 154,992 | 127,954 | |||||||
Total property, plant and equipment | 2,493,211 | 2,390,241 | |||||||
Less accumulated depreciation | (971,382 | ) | (947,462 | ) | |||||
$ | 1,521,829 | $ | 1,442,779 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||
A reconciliation of the amount of unrecognized tax benefit is as follows: | |||||||||
(Millions of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Unrecognized tax benefit — Permanent tax positions | $ | 0.1 | $ | 0.1 | |||||
Unrecognized tax benefit — Temporary tax positions | 1.7 | 1.4 | |||||||
Total unrecognized tax benefit | $ | 1.8 | $ | 1.5 | |||||
Tax Benefits Associated with NOL and Tax Credit Carryforwards | ' | ||||||||
The unrecognized tax benefit amounts were reduced by the tax benefits associated with net operating loss (NOL) and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: | |||||||||
(Millions of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
NOL and tax credit carryforwards | $ | (0.4 | ) | $ | (0.4 | ) |
Rate_Matters_Rate_Matters_Tabl
Rate Matters Rate Matters (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Public Utilities, General Disclosures [Abstract] | ' | ||||
NSP-Wisconsin 2015 Electric Rate Case [Table Text Block] | ' | ||||
The major cost components of the requested increase are summarized below: | |||||
(Millions of Dollars) | Request | ||||
Production and transmission fixed charges | $ | 28.1 | |||
Fuel and purchased power | 13.9 | ||||
Sub-Total | $ | 42 | |||
NSP-Minnesota transmission depreciation reserve | $ | (16.2 | ) | ||
Monticello extended power uprate deferral | (5.2 | ) | |||
Total | $ | 20.6 | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Guarantees Issued and Outstanding | ' | ||||||||
The following table presents the guarantee issued and outstanding for NSP-Wisconsin: | |||||||||
(Millions of Dollars) | June 30, 2014 | Dec. 31, 2013 | |||||||
Guarantees issued and outstanding | $ | 1 | $ | 1 | |||||
Current exposure under these guarantees | 0.2 | 0.3 | |||||||
Borrowings_and_Other_Financing1
Borrowings and Other Financing Instruments (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Debt Instruments [Abstract] | ' | ||||||||||
Committed Credit Facility Available | ' | ||||||||||
At June 30, 2014, NSP-Wisconsin had the following committed credit facility available (in millions of dollars): | |||||||||||
Credit Facility (a) | Drawn (b) | Available | |||||||||
$ | 150 | $ | 11 | $ | 139 | ||||||
(a) | Credit facility expires in July 2017. | ||||||||||
(b) | Includes outstanding commercial paper. | ||||||||||
Commercial Paper | ' | ||||||||||
Debt Instruments [Abstract] | ' | ||||||||||
Short-Term Borrowings | ' | ||||||||||
Commercial paper outstanding for NSP-Wisconsin was as follows: | |||||||||||
(Amounts in Millions, Except Interest Rates) | Three Months Ended June 30, 2014 | Twelve Months Ended Dec. 31, 2013 | |||||||||
Borrowing limit | $ | 150 | $ | 150 | |||||||
Amount outstanding at period end | 11 | 68 | |||||||||
Average amount outstanding | 72 | 20 | |||||||||
Maximum amount outstanding | 101 | 71 | |||||||||
Weighted average interest rate, computed on a daily basis | 0.25 | % | 0.31 | % | |||||||
Weighted average interest rate at period end | 0.24 | 0.27 | |||||||||
Intercompany Borrowing Arrangement | ' | ||||||||||
Debt 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) | June 30, 2014 | Dec. 31, 2013 | |||||||||
Notes payable to affiliates | $ | 0.5 | $ | 0.5 | |||||||
Weighted average interest rate at period end | 0.43 | % | 0.24 | % | |||||||
Long-Term Borrowings | |||||||||||
In June 2014, NSP-Wisconsin issued $100 million of 3.30 percent first mortgage bonds due June 15, 2024. |
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Gross Notional Amounts of Commodity Forwards and Options | ' | ||||||||||||||||||||||||
The following table details the gross notional amounts of commodity options at June 30, 2014 and Dec. 31, 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) (a)(b) | June 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Million British thermal units of natural gas | 448 | 987 | |||||||||||||||||||||||
(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 at June 30, 2014 and Dec. 31, 2013: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Fair Value | Counterparty | Total (b) | |||||||||||||||||||
Total | Netting (a) | ||||||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 321 | $ | — | $ | 321 | $ | — | $ | 321 | |||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | Counterparty | Total (b) | ||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | Netting (a) | ||||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 580 | $ | — | $ | 580 | $ | — | $ | 580 | |||||||||||||
(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 June 30, 2014 and Dec. 31, 2013. 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 assets balance of $4.4 million and $5.1 million at June 30, 2014 and Dec. 31, 2013, respectively, in the consolidated balance sheets. | ||||||||||||||||||||||||
Carrying Amount and Fair Value of Long-term Debt | ' | ||||||||||||||||||||||||
As of June 30, 2014 and Dec. 31, 2013, other financial instruments for which the carrying amount did not equal fair value were as follows: | |||||||||||||||||||||||||
June 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
(Thousands of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt, including current portion | $ | 568,277 | $ | 652,505 | $ | 468,597 | $ | 518,269 | |||||||||||||||||
Other_Expense_Income_Net_Table
Other (Expense) Income, Net (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other (Expense) Income, Net | ' | ||||||||||||||||
Other (expense) income, net consisted of the following: | |||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest income | $ | 12 | $ | 197 | $ | 216 | $ | 396 | |||||||||
Other nonoperating income | 44 | 29 | 79 | 70 | |||||||||||||
Insurance policy expense | (124 | ) | (69 | ) | (236 | ) | (191 | ) | |||||||||
Other nonoperating expense | (2 | ) | (2 | ) | (5 | ) | (5 | ) | |||||||||
Other (expense) income, net | $ | (70 | ) | $ | 155 | $ | 54 | $ | 270 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Results by Reportable Segment | ' | ||||||||||||||||||||
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | ||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Operating revenues (a) | $ | 198,277 | $ | 29,539 | $ | 298 | $ | — | $ | 228,114 | |||||||||||
Intersegment revenues | 123 | 849 | — | (972 | ) | — | |||||||||||||||
Total revenues | $ | 198,400 | $ | 30,388 | $ | 298 | $ | (972 | ) | $ | 228,114 | ||||||||||
Net income (loss) | $ | 11,799 | $ | (141 | ) | $ | 364 | $ | — | $ | 12,022 | ||||||||||
(Thousands of Dollars) | Regulated Electric | Regulated Natural Gas | All Other | Reconciling Eliminations | Consolidated Total | ||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||
Operating revenues (a) | $ | 185,374 | $ | 24,555 | $ | 246 | $ | — | $ | 210,175 | |||||||||||
Intersegment revenues | 83 | 278 | — | (361 | ) | — | |||||||||||||||
Total revenues | $ | 185,457 | $ | 24,833 | $ | 246 | $ | (361 | ) | $ | 210,175 | ||||||||||
Net income | $ | 10,068 | $ | 201 | $ | 275 | $ | — | $ | 10,544 | |||||||||||
(a) | Operating revenues include $33 million of affiliate electric revenue for the three months ended June 30, 2014 and 2013. | ||||||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Other | Eliminations | Total | |||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Operating revenues (a) | $ | 409,374 | $ | 103,330 | $ | 552 | $ | — | $ | 513,256 | |||||||||||
Intersegment revenues | 215 | 3,766 | — | (3,981 | ) | — | |||||||||||||||
Total revenues | $ | 409,589 | $ | 107,096 | $ | 552 | $ | (3,981 | ) | $ | 513,256 | ||||||||||
Net income | $ | 26,865 | $ | 7,568 | $ | 1,824 | $ | — | $ | 36,257 | |||||||||||
(Thousands of Dollars) | Regulated | Regulated | All | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Other | Eliminations | Total | |||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Operating revenues (a) | $ | 376,185 | $ | 74,912 | $ | 493 | $ | — | $ | 451,590 | |||||||||||
Intersegment revenues | 161 | 586 | — | (747 | ) | — | |||||||||||||||
Total revenues | $ | 376,346 | $ | 75,498 | $ | 493 | $ | (747 | ) | $ | 451,590 | ||||||||||
Net income | $ | 23,671 | $ | 5,825 | $ | 733 | $ | — | $ | 30,229 | |||||||||||
(a) | Operating revenues include $63 million and $65 million of affiliate electric revenue for the six months ended June 30, 2014 and 2013, respectively. |
Benefit_Plans_and_Other_Postre1
Benefit Plans and Other Postretirement Benefits (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
Three Months Ended June 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 1,132 | $ | 1,420 | $ | 8 | $ | 6 | |||||||||
Interest cost | 1,814 | 1,731 | 197 | 190 | |||||||||||||
Expected return on plan assets | (2,410 | ) | (2,498 | ) | (13 | ) | (10 | ) | |||||||||
Amortization of prior service cost (credit) | 28 | 104 | (87 | ) | (88 | ) | |||||||||||
Amortization of net loss | 1,654 | 1,981 | 166 | 241 | |||||||||||||
Net benefit cost recognized for financial reporting | $ | 2,218 | $ | 2,738 | $ | 271 | $ | 339 | |||||||||
Six Months Ended June 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Thousands of Dollars) | Pension Benefits | Postretirement Health | |||||||||||||||
Care Benefits | |||||||||||||||||
Service cost | $ | 2,264 | $ | 2,841 | $ | 17 | $ | 12 | |||||||||
Interest cost | 3,628 | 3,462 | 395 | 380 | |||||||||||||
Expected return on plan assets | (4,821 | ) | (4,997 | ) | (26 | ) | (21 | ) | |||||||||
Amortization of prior service cost (credit) | 56 | 208 | (175 | ) | (176 | ) | |||||||||||
Amortization of net loss | 3,308 | 3,962 | 333 | 482 | |||||||||||||
Net benefit cost recognized for financial reporting | $ | 4,435 | $ | 5,476 | $ | 544 | $ | 677 | |||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
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 and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||
Accumulated other comprehensive loss at April 1 | $ | (343 | ) | $ | (418 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 19 | 18 | ||||||||
Net current period other comprehensive income | 19 | 18 | ||||||||
Accumulated other comprehensive loss at June 30 | $ | (324 | ) | $ | (400 | ) | ||||
Gains and Losses on | ||||||||||
Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (361 | ) | $ | (437 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 37 | 37 | ||||||||
Net current period other comprehensive income | 37 | 37 | ||||||||
Accumulated other comprehensive loss at June 30 | $ | (324 | ) | $ | (400 | ) | ||||
Reclassifications out of Accumulated Other Comprehensive Loss | ' | |||||||||
Reclassifications from accumulated other comprehensive loss for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 31 | (a) | $ | 32 | (a) | ||||
Total, pre-tax | 31 | 32 | ||||||||
Tax benefit | (12 | ) | (14 | ) | ||||||
Total amounts reclassified, net of tax | $ | 19 | $ | 18 | ||||||
Amounts Reclassified from | ||||||||||
Accumulated Other | ||||||||||
Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 62 | (a) | $ | 63 | (a) | ||||
Total, pre-tax | 62 | 63 | ||||||||
Tax benefit | (25 | ) | (26 | ) | ||||||
Total amounts reclassified, net of tax | $ | 37 | $ | 37 | ||||||
(a) | Included in interest charges. |
Selected_Balance_Sheet_Data_Ac
Selected Balance Sheet Data, Accounts Receivable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net | ' | ' |
Accounts receivable | $56,469 | $62,585 |
Less allowance for bad debts | -4,785 | -4,911 |
Accounts receivable, net | $51,684 | $57,674 |
Selected_Balance_Sheet_Data_In
Selected Balance Sheet Data, Inventory (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | $18,803 | $21,475 |
Materials and supplies | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | 6,882 | 6,437 |
Fuel | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | 7,071 | 5,915 |
Natural gas | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Inventories | $4,850 | $9,123 |
Selected_Balance_Sheet_Data_Pr
Selected Balance Sheet Data, Property, Plant and Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $2,493,211 | $2,390,241 |
Less accumulated depreciation | -971,382 | -947,462 |
Property, plant and equipment, net | 1,521,829 | 1,442,779 |
Electric plant | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 1,984,497 | 1,913,354 |
Natural gas plant | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 239,659 | 236,047 |
Common and other property | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 114,063 | 112,886 |
Construction work in progress | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $154,992 | $127,954 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 |
Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | State Jurisdiction (Wisconsin) | State Jurisdiction (Wisconsin) | |||
Tax Audits [Abstract] | ' | ' | ' | ' | ' | ' |
Year(s) no longer subject to audit as statute of limitations has expired | ' | ' | ' | '2008 | ' | ' |
Earliest year subject to examination | ' | ' | ' | '2009 | ' | '2009 |
Year(s) under examination | ' | ' | '2010 and 2011 | ' | ' | ' |
Potential Tax Adjustments | ' | ' | ' | $10,000,000 | ' | ' |
Tax year(s) for which income tax examination has been completed | ' | ' | ' | ' | '2009 through 2011 | ' |
Unrecognized Tax Benefits [Abstract] | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefit — Permanent tax positions | 100,000 | 100,000 | ' | ' | ' | ' |
Unrecognized tax benefit — Temporary tax positions | 1,700,000 | 1,400,000 | ' | ' | ' | ' |
Total unrecognized tax benefit | 1,800,000 | 1,500,000 | ' | ' | ' | ' |
NOL and tax credit carryforwards | -400,000 | -400,000 | ' | ' | ' | ' |
Amounts accrued for penalties related to unrecognized tax benefits | $0 | $0 | ' | ' | ' | ' |
Rate_Matters_Rate_Matters_Deta
Rate Matters Rate Matters (Details) (USD $) | 1 Months Ended | |||||
31-May-14 | 31-May-14 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 31, 2014 | Nov. 30, 2013 | |
Electric Rate Case 2015 [Member] | Natural Gas Rate Case 2014 [Member] | Natural Gas Rate Case 2014 [Member] | FERC Proceeding, MISO ROE Complaint [Member] | FERC Proceeding, MISO ROE Complaint [Member] | FERC Proceeding, MISO ROE Complaint [Member] | |
Public Service Commission of Wisconsin (PSCW) [Member] | Michigan Public Service Commission (MPSC) [Member] | Michigan Public Service Commission (MPSC) [Member] | Federal Energy Regulatory Commission (FERC) [Member] | Federal Energy Regulatory Commission (FERC) [Member] | Federal Energy Regulatory Commission (FERC) [Member] | |
Public Utilities, General Disclosures [Line Items] | ' | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Percentage | 3.20% | ' | 8.80% | ' | ' | ' |
Public Utilities, Requested Return on Equity, Percentage | 10.20% | ' | 10.40% | ' | ' | ' |
Public Utilities, percentage of earnings above the authorized ROE that will be refunded to customers | 100.00% | ' | ' | ' | ' | ' |
Public Utilities, amount requested by public utility related to production and transmission fixed charges | $28,100,000 | ' | ' | ' | ' | ' |
Public Utilities, amount requested by public utility related to fuel and purchased power | 13,900,000 | ' | ' | ' | ' | ' |
Public Utilities, requested base revenue increase (decrease) excluding NSP-Minnesota depreciation reserve and Monticello EPU deferral adjustments | 42,000,000 | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to requested rate increase (decrease) related to the NSP-Minnesota transmission depreciation reserve | -16,200,000 | ' | ' | ' | ' | ' |
Public Utilities, Adjustment to requested rate increase (decrease) related to the Monticello EPU deferral | -5,200,000 | ' | ' | ' | ' | ' |
Public Utilities, Requested Rate Increase (Decrease), Amount | 20,600,000 | ' | 527,000 | ' | ' | ' |
Public Utilities, Requested Equity Capital Structure, Percentage | ' | ' | 52.54% | ' | ' | ' |
Public Utilities, Requested Rate Base, Amount | ' | ' | 4,700,000 | ' | ' | ' |
Public Utilities, Approved Rate Increase (Decrease), Amount | ' | 500,000 | ' | ' | ' | ' |
Public Utilities, Approved Rate Increase (Decrease), Percentage | ' | 8.40% | ' | ' | ' | ' |
Public Utilities, Approved Return on Equity, Percentage | ' | 10.20% | ' | ' | ' | ' |
Public Utilities, number of years rate case is applicable for | ' | '2 years | ' | ' | ' | ' |
Public Utilities, ROE applicable to transmission formula rates in the MISO region, upper bound | ' | ' | ' | ' | ' | 12.38% |
Public Utilities, ROE applicable to transmission formula rates in the MISO region, lower bound | ' | ' | ' | ' | 9.15% | 9.15% |
Public Utilities, maximum equity capital structure percentage allowed per the complaint | ' | ' | ' | ' | ' | 50.00% |
Public Utilities, number of steps required for newly adopted ROE discounted cash flow methodology | ' | ' | ' | 2 | ' | ' |
Public Utilities, reduction of transmission revenue, net of expense due to the new ROE methodology, lower bound | ' | ' | ' | 5,000,000 | ' | ' |
Public Utilities, reduction of transmission revenue, net of expense due to the new ROE methodology, upper bound | ' | ' | ' | $7,000,000 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies, Guarantees and Indemnifications (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Guarantor Obligations [Line Items] | ' | ' |
Assets Held As Collateral | $0 | $0 |
Payment or Performance Guarantee | Customer Loans for Farm Rewiring Program | ' | ' |
Guarantees [Abstract] | ' | ' |
Guarantees issued and outstanding | 1,000,000 | 1,000,000 |
Current exposure under these guarantees | $200,000 | $300,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies, Environmental Contingencies - Site Contingencies (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Site | ||
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ' | ' |
Liability for estimated cost of remediating sites, current | $34,380,000 | $28,785,000 |
Ashland MGP Site | ' | ' |
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ' | ' |
Number of properties included in superfund site which NSP-Wisconsin does not own | 2 | ' |
Liability for estimated cost of remediating sites | 113,300,000 | 104,600,000 |
Liability for estimated cost of remediating sites, current | 33,400,000 | 25,200,000 |
Amortization period for recovery of remediation costs in natural gas rates, low end of range (in years) | '4 years | ' |
Amortization period for recovery of remediation costs in natural gas rates, high end of range (in years) | '6 years | ' |
Ashland MGP Site - Phase I Project Area | ' | ' |
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ' | ' |
Liability for estimated cost of remediating sites as reflected in the settlement | 40,000,000 | ' |
Liability for estimated cost of remediating sites | 52,000,000 | ' |
Estimated amount spent on Phase I Project Area cleanup | 12,000,000 | ' |
Number of acres of land conveyed to the State of Wisconsin and tribal trustees (in acres) | 1,390 | ' |
Approved amortization period for recovery of remediation costs in natural gas rates (in years) | '10 years | ' |
Carrying cost percentage to be applied to the unamortized regulatory asset for MGP remediation (in hundredths) | 3.00% | ' |
Approved increase (decrease) in amortization expense granted by a regulatory body | 1,100,000 | ' |
Ashland MGP Site - Sediments | ' | ' |
Ashland Manufactured Gas Plant (MGP) Site [Abstract] | ' | ' |
Estimated cost of remediating site, low end of range | 63,000,000 | ' |
Estimated cost of remediating site, high end of range | $77,000,000 | ' |
Potential percent of increase to the high end of the range of estimated site remediation costs (in hundredths) | 50.00% | ' |
Potential percent of decrease to the low end of the range of estimated site remediation costs (in hundredths) | 30.00% | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies, Environmental Contingencies - Unrecorded Unconditional Purchase Obligation (Details) (USD $) | Jun. 30, 2014 | Apr. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Greenhouse Gas New Source Performance Standard for Modified and Reconstructed Power Plants | Cross-State Air Pollution Rule | Capital Commitments |
Federal Clean Water Act Section 316 (b) | |||
Environmental Requirements [Abstract] | ' | ' | ' |
Liability for estimated cost to comply with regulation | ' | ' | $4 |
Percentage of a comparable new plant's capital cost which would have to be exceeded to consider a project as a reconstruction under the proposed GHG NSPS for Modified and Reconstructed Power Plants (in hundredths) | 50.00% | ' | ' |
Number of issues on which the D.C. Circuit overturned the CSAPR | ' | 2 | ' |
Borrowings_and_Other_Financing2
Borrowings and Other Financing Instruments, Commercial Paper (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ' | ' |
Amount outstanding at period end | $11,000,000 | $68,000,000 |
Commercial Paper | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Borrowing limit | 150,000,000 | 150,000,000 |
Amount outstanding at period end | 11,000,000 | 68,000,000 |
Average amount outstanding | 72,000,000 | 20,000,000 |
Maximum amount outstanding | $101,000,000 | $71,000,000 |
Weighted average interest rate, computed on a daily basis (in hundredths) | 0.25% | 0.31% |
Weighted average interest rate at period end (in hundredths) | 0.24% | 0.27% |
Borrowings_and_Other_Financing3
Borrowings and Other Financing Instruments, Letters of Credit (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Letters of Credit [Abstract] | ' | ' |
Terms of letters of credit (in years) | '1 year | ' |
Letters of credit outstanding under credit facilities | $0 | $0 |
Borrowings_and_Other_Financing4
Borrowings and Other Financing Instruments, Credit Facility (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Credit Facility [Abstract] | ' | ' | |
Credit facility | $150,000,000 | [1] | ' |
Drawn | 11,000,000 | [2] | ' |
Available | 139,000,000 | ' | |
Credit facility bank borrowings outstanding | $0 | $0 | |
[1] | Credit facility expires in July 2017. | ||
[2] | Includes outstanding commercial paper. |
Borrowings_and_Other_Financing5
Borrowings and Other Financing Instruments, Intercompany Borrowing Arrangement and Other Short-Term Borrowings (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Notes payable to affiliates | $500 | $470 |
Intercompany Borrowing Arrangement | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Notes payable to affiliates | $500 | $500 |
Weighted average interest rate at period end (in hundredths) | 0.43% | 0.24% |
Borrowings_and_Other_Financing6
Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Long-Term Borrowings and Other Financing Instruments (Details) (First Mortgage Bonds, Series Due June 15, 2024, USD $) | 1 Months Ended |
Jun. 30, 2014 | |
First Mortgage Bonds | Series Due June 15, 2024 | ' |
Debt Instrument [Line Items] | ' |
Face Amount | $100,000,000 |
Interest Rate, Stated Percentage (in hundredths) | 3.30% |
Maturity Date | 15-Jun-24 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | MMBTU | MMBTU | ||
Interest Rate Swap | ' | ' | ||
Interest Rate Derivatives [Abstract] | ' | ' | ||
Amount of accumulated other comprehensive gains (losses) related to interest rate derivatives expected to be reclassified into earnings within the next twelve months | -0.1 | ' | ||
Natural Gas Commodity Contract | ' | ' | ||
Gross Notional Amounts of Commodity Options [Abstract] | ' | ' | ||
Notional amount | 448,000 | [1],[2] | 987,000 | [1],[2] |
[1] | Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise. | |||
[2] | Amounts are not reflective of net positions in the underlying commodities. |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | ' | ' | ' | ' |
Derivative instruments designated as fair value hedges | $0 | $0 | $0 | $0 |
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Interest Rate Contract | ' | ' | ' | ' |
Impact of Derivative Activity on Accumulated Other Comprehensive Income (Loss) Regulatory Assets and Liabilities and Income [Abstract] | ' | ' | ' | ' |
Pre-tax losses reclassified into income during the period from accumulated other comprehensive loss | ' | ' | -100,000 | -100,000 |
Other Derivative Instruments | Natural Gas Commodity Contract | ' | ' | ' | ' |
Impact of Derivative Activity on Accumulated Other Comprehensive Income (Loss) Regulatory Assets and Liabilities and Income [Abstract] | ' | ' | ' | ' |
Pre-tax fair value gains (losses) recognized during the period in regulatory assets and liabilities | ' | -200,000 | 700,000 | -200,000 |
Pre-tax gains reclassified into income during the period from regulatory assets and liabilities | ' | ' | $500,000 | ' |
Fair_Value_of_Financial_Assets4
Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Prepayments and other | $4,356 | $5,056 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets | Natural Gas Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 321 | [1] | 580 | [1] |
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets | Natural Gas Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Level 2 | Other Current Assets | Natural Gas Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 321 | 580 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets | Natural Gas Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Prepayments and other | 4,400 | 5,100 | ||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Assets | Natural Gas Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 321 | 580 | ||
Fair Value Measured on a Recurring Basis | Counterparty Netting | Other Current Assets | Natural Gas Commodity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | $0 | [2] | $0 | [2] |
[1] | Included in prepayments and other assets balance of $4.4 million and $5.1 million at June 30, 2014 and Dec. 31, 2013, 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 June 30, 2014 and Dec. 31, 2013. 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_Assets5
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Long-term debt, including current portion | $568,277 | $468,597 |
Fair Value | ' | ' |
Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Long-term debt, including current portion | $652,505 | $518,269 |
Other_Expense_Income_Net_Detai
Other (Expense) Income, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Interest income | $12 | $197 | $216 | $396 |
Other nonoperating income | 44 | 29 | 79 | 70 |
Insurance policy expense | -124 | -69 | -236 | -191 |
Other nonoperating expense | -2 | -2 | -5 | -5 |
Other (expense) income, net | ($70) | $155 | $54 | $270 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | $228,114,000 | $210,175,000 | $513,256,000 | $451,590,000 | ||||
Net income (loss) | 12,022,000 | 10,544,000 | 36,257,000 | 30,229,000 | ||||
Affiliate electric revenue | 33,000,000 | 33,000,000 | 63,000,000 | 65,000,000 | ||||
Regulated Electric | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 198,400,000 | 185,457,000 | 409,589,000 | 376,346,000 | ||||
Net income (loss) | 11,799,000 | 10,068,000 | 26,865,000 | 23,671,000 | ||||
Regulated Natural Gas | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 30,388,000 | 24,833,000 | 107,096,000 | 75,498,000 | ||||
Net income (loss) | -141,000 | 201,000 | 7,568,000 | 5,825,000 | ||||
All Other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 298,000 | 246,000 | 552,000 | 493,000 | ||||
Net income (loss) | 364,000 | 275,000 | 1,824,000 | 733,000 | ||||
Operating Segments | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 228,114,000 | [1] | 210,175,000 | [1] | 513,256,000 | [2] | 451,590,000 | [2] |
Operating Segments | Regulated Electric | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 198,277,000 | [1] | 185,374,000 | [1] | 409,374,000 | [2] | 376,185,000 | [2] |
Operating Segments | Regulated Natural Gas | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 29,539,000 | 24,555,000 | 103,330,000 | 74,912,000 | ||||
Operating Segments | All Other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 298,000 | 246,000 | 552,000 | 493,000 | ||||
Intersegment Eliminations | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | -972,000 | -361,000 | -3,981,000 | -747,000 | ||||
Intersegment Eliminations | Regulated Electric | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 123,000 | 83,000 | 215,000 | 161,000 | ||||
Intersegment Eliminations | Regulated Natural Gas | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 849,000 | 278,000 | 3,766,000 | 586,000 | ||||
Intersegment Eliminations | All Other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | $0 | $0 | $0 | $0 | ||||
[1] | Operating revenues include $33 million of affiliate electric revenue for the three months ended June 30, 2014 and 2013. | |||||||
[2] | Operating revenues include $63 million and $65 million of affiliate electric revenue for the six months ended June 30, 2014 and 2013, respectively. |
Benefit_Plans_and_Other_Postre2
Benefit Plans and Other Postretirement Benefits (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Pension Benefits | ' | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' | ' |
Service cost | ' | $1,132,000 | $1,420,000 | $2,264,000 | $2,841,000 |
Interest cost | ' | 1,814,000 | 1,731,000 | 3,628,000 | 3,462,000 |
Expected return on plan assets | ' | -2,410,000 | -2,498,000 | -4,821,000 | -4,997,000 |
Amortization of prior service cost (credit) | ' | 28,000 | 104,000 | 56,000 | 208,000 |
Amortization of net loss | ' | 1,654,000 | 1,981,000 | 3,308,000 | 3,962,000 |
Net benefit cost recognized for financial reporting | ' | 2,218,000 | 2,738,000 | 4,435,000 | 5,476,000 |
Total contributions to the pension plans during the period | 8,000,000 | ' | ' | ' | ' |
Postretirement Health Care Benefits | ' | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' | ' |
Service cost | ' | 8,000 | 6,000 | 17,000 | 12,000 |
Interest cost | ' | 197,000 | 190,000 | 395,000 | 380,000 |
Expected return on plan assets | ' | -13,000 | -10,000 | -26,000 | -21,000 |
Amortization of prior service cost (credit) | ' | -87,000 | -88,000 | -175,000 | -176,000 |
Amortization of net loss | ' | 166,000 | 241,000 | 333,000 | 482,000 |
Net benefit cost recognized for financial reporting | ' | 271,000 | 339,000 | 544,000 | 677,000 |
Xcel Energy Inc. | Pension Benefits | ' | ' | ' | ' | ' |
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' | ' |
Total contributions to the pension plans during the period | $130,000,000 | ' | ' | ' | ' |
Number of Xcel Energy's pension plans to which contributions were made | 3 | ' | ' | ' | ' |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ||||
Accumulated other comprehensive loss at beginning of period | ' | ' | ($361) | ' | ||||
Accumulated other comprehensive loss at end of period | -324 | ' | -324 | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total, pre-tax | -19,309 | -16,987 | -57,467 | -49,003 | ||||
Tax benefit | 7,287 | 6,443 | 21,210 | 18,774 | ||||
Gains and Losses on Cash Flow Hedges | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ||||
Accumulated other comprehensive loss at beginning of period | -343 | -418 | -361 | -437 | ||||
Losses reclassified from net accumulated other comprehensive loss | 19 | 18 | 37 | 37 | ||||
Net current period other comprehensive income | 19 | 18 | 37 | 37 | ||||
Accumulated other comprehensive loss at end of period | -324 | -400 | -324 | -400 | ||||
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 | 32 | 62 | 63 | ||||
Tax benefit | -12 | -14 | -25 | -26 | ||||
Total, net of tax | 19 | 18 | 37 | 37 | ||||
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 | $31 | [1] | $32 | [1] | $62 | [1] | $63 | [1] |
[1] | Included in interest charges. |