Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NORTHERN STATES POWER CO /WI/ | ||
Entity Central Index Key | 72909 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Public Float | $0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues | |||
Electric | $829,748 | $789,168 | $757,565 |
Natural gas | 169,629 | 132,867 | 103,100 |
Other | 1,085 | 1,003 | 1,177 |
Total operating revenues | 1,000,462 | 923,038 | 861,842 |
Operating expenses | |||
Electric fuel and purchased power, non-affiliates | 19,595 | 18,129 | 19,440 |
Purchased power, affiliates | 425,471 | 416,173 | 405,016 |
Cost of natural gas sold and transported | 114,250 | 81,572 | 61,370 |
Operating and maintenance expenses | 191,213 | 175,522 | 167,503 |
Conservation program expenses | 11,537 | 12,333 | 14,442 |
Depreciation and amortization | 79,654 | 76,897 | 69,234 |
Taxes (other than income taxes) | 27,114 | 25,231 | 24,971 |
Total operating expenses | 868,834 | 805,857 | 761,976 |
Operating income | 131,628 | 117,181 | 99,866 |
Other income, net | 270 | 253 | 476 |
Allowance for funds used during construction — equity | 7,060 | 4,259 | 2,104 |
Interest charges and financing costs | |||
Interest charges — includes other financing costs of $1,570, $1,538, and $1,574, respectively | 29,273 | 27,797 | 24,799 |
Allowance for funds used during construction — debt | -3,360 | -1,981 | -1,862 |
Total interest charges and financing costs | 25,913 | 25,816 | 22,937 |
Income before income taxes | 113,045 | 95,877 | 79,509 |
Income taxes | 42,403 | 36,409 | 29,558 |
Net income | $70,642 | $59,468 | $49,951 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest charges and financing costs | |||
Other financing costs | $1,570 | $1,538 | $1,574 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive income: | |||
Net income | $70,642 | $59,468 | $49,951 |
Derivative instruments: | |||
Reclassification of losses to net income, net of tax of $51, $51 and $51, respectively. | 76 | 76 | 77 |
Other comprehensive income | 76 | 76 | 77 |
Comprehensive income | $70,718 | $59,544 | $50,028 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative instruments: | |||
Reclassification of losses to net income, net of tax | ($51) | ($51) | ($51) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $70,642 | $59,468 | $49,951 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 80,875 | 78,048 | 70,372 |
Deferred income taxes | 45,396 | 25,789 | 27,107 |
Amortization of investment tax credits | -527 | -664 | -626 |
Allowance for equity funds used during construction | -7,060 | -4,259 | -2,104 |
Provision for bad debts | 4,431 | 3,988 | 3,329 |
Net derivative losses (gains) | 10 | -279 | 127 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -5,558 | -12,702 | -15,953 |
Accrued unbilled revenues | -1,933 | -2,496 | -470 |
Inventories | -3,210 | -1,879 | 6,018 |
Other current assets | -3,501 | -3,749 | -3,172 |
Accounts payable | 2,936 | -1,811 | 5,828 |
Net regulatory assets and liabilities | -34,697 | -2,062 | 3,623 |
Other current liabilities | -911 | 7,589 | 3,681 |
Pension and other employee benefit obligations | -6,134 | -8,759 | -10,857 |
Change in other noncurrent assets | -113 | 232 | 14 |
Change in other noncurrent liabilities | 2,534 | 1,119 | -595 |
Net cash provided by operating activities | 143,180 | 137,573 | 136,273 |
Investing activities | |||
Utility capital/construction expenditures | -288,209 | -201,278 | -152,759 |
Allowance for equity funds used during construction | 7,060 | 4,259 | 2,104 |
Other, net | -166 | -421 | 916 |
Net cash used in investing activities | -281,315 | -197,440 | -149,739 |
Financing activities | |||
Proceeds from (repayments of) short-term borrowings, net | 10,000 | 29,000 | -27,000 |
Proceeds from notes payable to affiliates | 30 | 0 | 50 |
Repayments Of Notes Payable To Affiliates | 0 | -80 | 0 |
Proceeds from Issuance of Long-term Debt | 98,534 | 0 | 97,916 |
Repayments of long-term debt | -107 | -160 | -97 |
Capital contributions from parent | 73,432 | 58,977 | 2,796 |
Dividends paid to parent | -43,818 | -30,980 | -57,311 |
Net cash provided by financing activities | 138,071 | 56,757 | 16,354 |
Net change in cash and cash equivalents | -64 | -3,110 | 2,888 |
Cash and cash equivalents at beginning of period | 1,349 | 4,459 | 1,571 |
Cash and cash equivalents at end of period | 1,285 | 1,349 | 4,459 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest (net of amounts capitalized) | -24,442 | -24,376 | -21,035 |
Cash received (paid) for income taxes, net | 3,474 | -9,842 | -5,841 |
Supplemental disclosure of non-cash investing transactions: | |||
Property, plant and equipment additions in accounts payable | $35,267 | $27,222 | $10,618 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $1,285 | $1,349 | ||
Accounts receivable, net | 60,396 | [1] | 59,269 | [1] |
Accrued unbilled revenues | 53,567 | 51,634 | ||
Inventories | 24,685 | 21,475 | ||
Regulatory assets | 20,036 | 14,866 | ||
Prepaid taxes | 28,628 | 27,518 | ||
Deferred income taxes | 8,201 | 14,953 | ||
Prepayments and other | 6,918 | 5,056 | ||
Total current assets | 203,716 | 196,120 | ||
Property, plant and equipment, net | 1,674,281 | 1,442,779 | ||
Other assets | ||||
Regulatory assets | 280,693 | 233,193 | ||
Other investments | 3,818 | 3,650 | ||
Other | 4,612 | 3,651 | ||
Total other assets | 289,123 | 240,494 | ||
Total assets | 2,167,120 | 1,879,393 | ||
Current liabilities | ||||
Current portion of long-term debt | 1,235 | 107 | ||
Short-term debt | 78,000 | 68,000 | ||
Notes payable to affiliates | 500 | 470 | ||
Accounts payable | 61,530 | 52,086 | ||
Accounts payable to affiliates | 26,524 | 24,986 | ||
Dividends payable to parent | 14,957 | 8,032 | ||
Regulatory liabilities | 16,940 | 9,717 | ||
Environmental liabilities | 29,116 | 28,785 | ||
Other | 19,923 | 22,521 | ||
Total current liabilities | 248,725 | 214,704 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 348,180 | 305,139 | ||
Deferred investment tax credits | 9,089 | 9,698 | ||
Regulatory liabilities | 132,674 | 126,424 | ||
Environmental liabilities | 78,620 | 79,703 | ||
Customer advances | 17,623 | 16,008 | ||
Pension and employee benefit obligations | 51,313 | 45,708 | ||
Other | 16,151 | 9,237 | ||
Total deferred credits and other liabilities | 653,650 | 591,917 | ||
Commitments and contingencies | ||||
Capitalization | ||||
Long-term debt | 567,056 | 468,490 | ||
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Dec. 31, 2014 and 2013, respectively | 93,300 | 93,300 | ||
Additional paid in capital | 322,276 | 248,844 | ||
Retained earnings | 282,398 | 262,499 | ||
Accumulated other comprehensive loss | -285 | -361 | ||
Total common stockholder’s equity | 697,689 | 604,282 | ||
Total liabilities and equity | $2,167,120 | $1,879,393 | ||
[1] | Accounts receivable, net includes an immaterial amount and $1,595 due from affiliates for 2014 and 2013, respectively. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 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 |
CONSOLIDATED_STATEMENTS_OF_COM2
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDER'S EQUITY (USD $) | Total | Common stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | $521,153 | $93,300 | $187,071 | $241,296 | ($514) |
Balance (in shares) at Dec. 31, 2011 | 933,000 | ||||
Comprehensive income: | |||||
Net income | 49,951 | 49,951 | |||
Other comprehensive income | 77 | 77 | |||
Common dividends declared to parent | -56,871 | -56,871 | |||
Contribution of capital by parent | 2,796 | 2,796 | |||
Ending Balance at Dec. 31, 2012 | 517,106 | 93,300 | 189,867 | 234,376 | -437 |
Balance (in shares) at Dec. 31, 2012 | 933,000 | ||||
Comprehensive income: | |||||
Net income | 59,468 | 59,468 | |||
Other comprehensive income | 76 | 76 | |||
Common dividends declared to parent | -31,345 | -31,345 | |||
Contribution of capital by parent | 58,977 | 58,977 | |||
Ending Balance at Dec. 31, 2013 | 604,282 | 93,300 | 248,844 | 262,499 | -361 |
Balance (in shares) at Dec. 31, 2013 | 933,000 | 933,000 | |||
Comprehensive income: | |||||
Net income | 70,642 | 70,642 | |||
Other comprehensive income | 76 | 76 | |||
Common dividends declared to parent | -50,743 | -50,743 | |||
Contribution of capital by parent | 73,432 | 73,432 | |||
Ending Balance at Dec. 31, 2014 | $697,689 | $93,300 | $322,276 | $282,398 | ($285) |
Balance (in shares) at Dec. 31, 2014 | 933,000 | 933,000 |
CONSOLIDATED_STATEMENTS_OF_CAP
CONSOLIDATED STATEMENTS OF CAPITALIZATION (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Unamortized discount | ($2,519) | ($2,321) | ||
Total long-term debt, including current maturities | 568,291 | 468,597 | ||
Less: current maturities | 1,235 | 107 | ||
Total long-term debt | 567,056 | 468,490 | ||
Common Stockholders' Equity | ||||
Common stock — 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Dec. 31, 2014 and 2013, respectively | 93,300 | 93,300 | ||
Additional paid in capital | 322,276 | 248,844 | ||
Retained earnings | 282,398 | 262,499 | ||
Accumulated other comprehensive loss | -285 | -361 | ||
Total common stockholder’s equity | 697,689 | 604,282 | ||
First Mortgage Bonds [Member] | Series Due Oct. 1, 2018 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | 150,000 | 150,000 | ||
First Mortgage Bonds [Member] | Series Due June 15, 2024 | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | 100,000 | 0 | ||
First Mortgage Bonds [Member] | Series Due Sept. 1, 2038 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | 200,000 | 200,000 | ||
First Mortgage Bonds [Member] | Series Due Oct. 1, 2042 | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | 100,000 | 100,000 | ||
City of La Crosse Resource Recovery Bond [Member] | Series Due Nov. 1, 2021 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | 18,600 | [1] | 18,600 | [1] |
Fort McCoy System Acquisition [Member] | Due Oct. 15, 2030 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | 523 | 558 | ||
Other | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Long-term debt, gross | $1,687 | $1,760 | ||
[1] | Resource recovery financing |
CONSOLIDATED_STATEMENTS_OF_CAP1
CONSOLIDATED STATEMENTS OF CAPITALIZATION (Parenthetical) | 12 Months Ended |
Dec. 31, 2014 | |
First Mortgage Bonds [Member] | Series Due Oct. 1, 2018 [Member] | |
Long-Term Debt | |
Debt instrument, interest rate stated percentage (in hundredths) | 5.25% |
Debt instrument, maturity date | 1-Oct-18 |
First Mortgage Bonds [Member] | Series Due June 15, 2024 | |
Long-Term Debt | |
Debt instrument, interest rate stated percentage (in hundredths) | 3.30% |
Debt instrument, maturity date | 15-Jun-24 |
First Mortgage Bonds [Member] | Series Due Sept. 1, 2038 [Member] | |
Long-Term Debt | |
Debt instrument, interest rate stated percentage (in hundredths) | 6.38% |
Debt instrument, maturity date | 1-Sep-38 |
First Mortgage Bonds [Member] | Series Due Oct. 1, 2042 | |
Long-Term Debt | |
Debt instrument, interest rate stated percentage (in hundredths) | 3.70% |
Debt instrument, maturity date | 1-Oct-42 |
City of La Crosse Resource Recovery Bond [Member] | Series Due Nov. 1, 2021 [Member] | |
Long-Term Debt | |
Debt instrument, interest rate stated percentage (in hundredths) | 6.00% |
Debt instrument, maturity date | 1-Nov-21 |
Fort McCoy System Acquisition [Member] | Due Oct. 15, 2030 [Member] | |
Long-Term Debt | |
Debt instrument, interest rate stated percentage (in hundredths) | 7.00% |
Debt instrument, maturity date | 15-Oct-30 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |
Business and System of Accounts — NSP-Wisconsin is engaged in the regulated generation, transmission, distribution and sale of electricity and in the regulated purchase, transportation, distribution and sale of natural gas. NSP-Wisconsin’s consolidated financial statements and disclosures are presented in accordance with GAAP. All of NSP-Wisconsin’s underlying accounting records also conform to the FERC uniform system of accounts or to systems required by various state regulatory commissions, which are the same in all material respects. | ||
Principles of Consolidation — NSP-Wisconsin’s consolidated financial statements include its wholly-owned subsidiaries and variable interest entities for which it is the primary beneficiary. In the consolidation process, all intercompany transactions and balances are eliminated. | ||
NSP-Wisconsin evaluates its arrangements and contracts with other entities to determine if the other party is a variable interest entity, if NSP-Wisconsin has a variable interest and if NSP-Wisconsin is the primary beneficiary. NSP-Wisconsin follows accounting guidance for variable interest entities which requires consideration of the activities that most significantly impact an entity’s financial performance and power to direct those activities, when determining whether NSP-Wisconsin is a variable interest entity’s primary beneficiary. See Note 11 for further discussion of variable interest entities. | ||
Use of Estimates — In recording transactions and balances resulting from business operations, NSP-Wisconsin uses estimates based on the best information available. Estimates are used for such items as plant depreciable lives or potential disallowances, AROs, certain regulatory assets and liabilities, tax provisions, uncollectible amounts, environmental costs, unbilled revenues, jurisdictional fuel and energy cost allocations and actuarially determined benefit costs. The recorded estimates are revised when better information becomes available or when actual amounts can be determined. Those revisions can affect operating results. | ||
Regulatory Accounting — NSP-Wisconsin accounts for certain income and expense items in accordance with accounting guidance for regulated operations. Under this guidance: | ||
• | Certain costs, which would otherwise be charged to expense or OCI, are deferred as regulatory assets based on the expected ability to recover the costs in future rates; and | |
• | Certain credits, which would otherwise be reflected as income, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates, or because the amounts were collected in rates prior to the costs being incurred. | |
Estimates of recovering deferred costs and returning deferred credits are based on specific ratemaking decisions or precedent for each item. Regulatory assets and liabilities are amortized consistent with the treatment in the rate setting process. | ||
If restructuring or other changes in the regulatory environment occur, NSP-Wisconsin may no longer be eligible to apply this accounting treatment, and may be required to eliminate regulatory assets and liabilities from its balance sheet. Such changes could have a material effect on NSP-Wisconsin’s financial condition, results of operations and cash flows. See Note 12 for further discussion of regulatory assets and liabilities. | ||
Revenue Recognition — Revenues related to the sale of energy are generally recorded when service is rendered or energy is delivered to customers. However, the determination of the energy sales to individual customers is based on the reading of their meter, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is recognized. NSP-Wisconsin presents its revenues net of any excise or other fiduciary-type taxes or fees. | ||
NSP-Wisconsin has various rate-adjustment mechanisms in place that provide for the recovery of purchased natural gas costs. These cost-adjustment tariffs may increase or decrease the level of revenue collected from customers and are revised periodically, for differences between the total amount collected under the clauses and the costs incurred. When applicable, under governing regulatory commission rate orders, fuel cost over-recoveries (the excess of fuel revenue billed to customers over fuel costs incurred) are deferred as regulatory liabilities and under-recoveries (the excess of fuel costs incurred over fuel revenues billed to customers) are deferred as regulatory assets. | ||
NSP-Wisconsin has various rate-adjustment mechanisms in place that provide for the recovery of purchased electric energy and fuel for electric generation. Under Wisconsin rules, NSP-Wisconsin must submit a forward looking fuel cost plan annually for approval by the PSCW. The rules also allow for deferral of any under-collection or over-collection of fuel costs in excess of a two percent annual tolerance band, for future rate recovery or refund, subject to PSCW approval. | ||
Conservation Programs — NSP-Wisconsin participates in and funds conservation programs in its retail jurisdictions to assist customers in conserving energy and reducing peak demand on the electric and natural gas systems. NSP-Wisconsin recovers approved conservation program costs in base rate revenue. | ||
NSP-Wisconsin is required to contribute 1.2 percent of its annual operating revenues to the statewide energy efficiency and renewable resource program Focus on Energy. Funding is collected through base rates on the customer utility bills. There is no financial incentive given back to the utility. The PSCW has full oversight of Focus on Energy including auditing and verification of programs. The program portfolio is outsourced to a third-party administrator who subcontracts as necessary to implement programs. | ||
Property, Plant and Equipment and Depreciation — Property, plant and equipment is stated at original cost. The cost of plant includes direct labor and materials, contracted work, overhead costs and AFUDC. The cost of plant retired is charged to accumulated depreciation and amortization. Amounts recovered in rates for future removal costs are recorded as regulatory liabilities. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance costs are charged to expense as incurred. Maintenance and replacement of items determined to be less than a unit of property are charged to operating expenses as incurred. Planned major maintenance activities are charged to operating expense unless the cost represents the acquisition of an additional unit of property or the replacement of an existing unit of property. Property, plant and equipment also includes costs associated with property held for future use. The depreciable lives of certain plant assets are reviewed annually and revised, if appropriate. Property, plant and equipment that is required to be decommissioned early by a regulator is reclassified as plant to be retired. | ||
Property, plant and equipment is tested for impairment when it is determined that the carrying value of the assets may not be recoverable. A loss is recognized in the current period if it becomes probable that part of a cost of a plant under construction or recently completed plant will be disallowed for recovery from customers and a reasonable estimate of the disallowance can be made. For investments in property, plant and equipment that are abandoned and not expected to go into service, incurred costs and related deferred tax amounts are compared to the discounted estimated future rate recovery, and a loss is recognized, if necessary. | ||
NSP-Wisconsin records depreciation expense related to its plant using the straight-line method over the plant’s useful life. Actuarial life studies are performed and submitted to the state and federal commissions for review. Upon acceptance by the various commissions, the resulting lives and net salvage rates are used to calculate depreciation. Depreciation expense, expressed as a percentage of average depreciable property, was approximately 3.3, 3.5 and 3.5 percent for the years ended Dec. 31, 2014, 2013 and 2012, respectively. | ||
Leases — NSP-Wisconsin evaluates a variety of contracts for lease classification at inception, including rental arrangements for office space, vehicles and equipment. Contracts determined to contain a lease because of per unit pricing that is other than fixed or market price, terms regarding the use of a particular asset, and other factors are evaluated further to determine if the arrangement is a capital lease. See Note 11 for further discussion of leases. | ||
AFUDC — AFUDC represents the cost of capital used to finance utility construction activity. AFUDC is computed by applying a composite financing rate to qualified CWIP. The amount of AFUDC capitalized as a utility construction cost is credited to other nonoperating income (for equity capital) and interest charges (for debt capital). AFUDC amounts capitalized are included in NSP-Wisconsin’s rate base for establishing utility service rates. | ||
Generally, AFUDC costs are recovered from customers as the related property is depreciated. However, in some cases, the PSCW has allowed an AFUDC calculation greater than the FERC-defined AFUDC rate, resulting in higher recognition of AFUDC. | ||
AROs — NSP-Wisconsin accounts for AROs under accounting guidance that requires a liability for the fair value of an ARO to be recognized in the period in which it is incurred if it can be reasonably estimated, with the offsetting associated asset retirement costs capitalized as a long-lived asset. The liability is generally increased over time by applying the effective interest method of accretion, and the capitalized costs are depreciated over the useful life of the long-lived asset. Changes resulting from revisions to the timing or amount of expected asset retirement cash flows are recognized as an increase or a decrease in the ARO. NSP-Wisconsin also recovers through rates certain future plant removal costs in addition to AROs. The accumulated removal costs for these obligations are reflected in the balance sheets as a regulatory liability. See Note 11 for further discussion of AROs. | ||
Income Taxes — NSP-Wisconsin accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. NSP-Wisconsin defers income taxes for all temporary differences between pretax financial and taxable income, and between the book and tax bases of assets and liabilities. NSP-Wisconsin uses the tax rates that are scheduled to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||
Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. In making such a determination, all available evidence is considered, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. | ||
Due to the effects of past regulatory practices, when deferred taxes were not required to be recorded due to the use of flow through accounting for ratemaking purposes, the reversal of some temporary differences are accounted for as current income tax expense. Investment tax credits are deferred and their benefits amortized over the book depreciable lives of the related property. Utility rate regulation also has resulted in the recognition of certain regulatory assets and liabilities related to income taxes, which are summarized in Note 12. | ||
NSP-Wisconsin follows the applicable accounting guidance to measure and disclose uncertain tax positions that it has taken or expects to take in its income tax returns. NSP-Wisconsin recognizes a tax position in its consolidated financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. Recognition of changes in uncertain tax positions are reflected as a component of income tax. | ||
NSP-Wisconsin reports interest and penalties related to income taxes within the other income and interest charges sections in the consolidated statements of income. | ||
Xcel Energy Inc. and its subsidiaries, including NSP-Wisconsin, file consolidated federal income tax returns as well as combined or separate state income tax returns. Federal income taxes paid by Xcel Energy Inc. are allocated to Xcel Energy Inc.’s subsidiaries based on separate company computations of tax. A similar allocation is made for state income taxes paid by Xcel Energy Inc. in connection with combined state filings. Xcel Energy Inc. also allocates its own income tax benefits to its direct subsidiaries which are recorded directly in equity by the subsidiaries based on the relative positive tax liabilities of the subsidiaries. | ||
See Note 6 for further discussion of income taxes. | ||
Types of and Accounting for Derivative Instruments — NSP-Wisconsin uses derivative instruments in connection with its utility commodity price and interest rate activities, including forward contracts, futures, swaps and options. All derivative instruments not designated and qualifying for the normal purchases and normal sales exception, as defined by the accounting guidance for derivatives and hedging, are recorded on the consolidated balance sheets at fair value as derivative instruments. This includes certain instruments used to mitigate market risk for the utility operations. The classification of changes in fair value for those derivative instruments is dependent on the designation of a qualifying hedging relationship. Changes in fair value of derivative instruments not designated in a qualifying hedging relationship are reflected in current earnings or as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. | ||
Interest rate hedging transactions are recorded as a component of interest expense. NSP-Wisconsin is allowed to recover in electric or natural gas rates the costs of certain financial instruments purchased to reduce commodity cost volatility. For further information on derivatives entered to mitigate commodity price risk on behalf of electric and natural gas customers, see Note 9. | ||
Cash Flow Hedges — Certain qualifying hedging relationships are designated as a hedge of a forecasted transaction or future cash flow (cash flow hedge). Changes in the fair value of a derivative designated as a cash flow hedge, to the extent effective, are included in OCI, or deferred as a regulatory asset or liability based on recovery mechanisms until earnings are affected by the hedged transaction. | ||
Normal Purchases and Normal Sales — NSP-Wisconsin enters into contracts for the purchase and sale of commodities for use in its business operations. Derivatives and hedging accounting guidance requires a company to evaluate these contracts to determine whether the contracts are derivatives. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting if designated as normal purchases or normal sales. | ||
NSP-Wisconsin evaluates all of its contracts at inception to determine if they are derivatives and if they meet the normal purchases and normal sales designation requirements. See Note 9 for further discussion of NSP-Wisconsin’s risk management and derivative activities. | ||
Fair Value Measurements — NSP-Wisconsin presents cash equivalents, interest rate derivatives and commodity derivatives at estimated fair values in its consolidated financial statements. Cash equivalents are recorded at cost plus accrued interest; money market funds are measured using quoted net asset values. For interest rate derivatives, quoted prices based primarily on observable market interest rate curves are used as a primary input to establish fair value. For commodity derivatives, the most observable inputs available are generally used to determine the fair value of each contract. In the absence of a quoted price for an identical contract in an active market, NSP-Wisconsin may use quoted prices for similar contracts, or internally prepared valuation models to determine fair value. See Note 9 for further discussion. | ||
Cash and Cash Equivalents — NSP-Wisconsin considers investments in certain instruments, including commercial paper and money market funds, with a remaining maturity of three months or less at the time of purchase, to be cash equivalents. | ||
Accounts Receivable and Allowance for Bad Debts — Accounts receivable are stated at the actual billed amount net of an allowance for bad debts. NSP-Wisconsin establishes an allowance for uncollectible receivables based on a policy that reflects its expected exposure to the credit risk of customers. | ||
Inventory — All inventory is recorded at average cost. | ||
RECs — RECs are marketable environmental instruments that represent proof that energy was generated from eligible renewable energy sources. RECs are awarded upon delivery of the associated energy and can be bought and sold. RECs are typically used as a form of measurement of compliance to RPS enacted by those states that are encouraging construction and consumption from renewable energy sources, but can also be sold separately from the energy produced. NSP-Wisconsin acquires RECs from the generation or purchase of renewable power. | ||
When RECs are purchased or acquired in the course of generation they are recorded as inventory at cost. The cost of RECs that are utilized for compliance purposes is recorded as electric fuel and purchased power expense. | ||
Sales of RECs that are purchased or acquired in the course of generation are recorded in electric utility operating revenues on a gross basis. The cost of these RECs and related transaction costs are recorded in electric fuel and purchased power expense. | ||
Emission Allowances — Emission allowances, including the annual SO2 and NOx emission allowance entitlement received from the EPA, are recorded at cost plus associated broker commission fees. NSP-Wisconsin follows the inventory accounting model for all emission allowances. Sales of emission allowances are included in electric utility operating revenues and the operating activities section of the consolidated statements of cash flows. | ||
Environmental Costs — Environmental costs are recorded when it is probable NSP-Wisconsin is liable for remediation costs and the liability can be reasonably estimated. Costs are deferred as a regulatory asset if it is probable that the costs will be recovered from customers in future rates. Otherwise, the costs are expensed. If an environmental expense is related to facilities currently in use, such as emission-control equipment, the cost is capitalized and depreciated over the life of the plant. | ||
Estimated remediation costs, excluding inflationary increases, are recorded. The estimates are based on experience, an assessment of the current situation and the technology currently available for use in the remediation. The recorded costs are regularly adjusted as estimates are revised and remediation proceeds. If other participating PRPs exist and acknowledge their potential involvement with a site, costs are estimated and recorded only for NSP-Wisconsin’s expected share of the cost. Any future costs of restoring sites where operation may extend indefinitely are treated as a capitalized cost of plant retirement. The depreciation expense levels recoverable in rates include a provision for removal expenses, which may include final remediation costs. Removal costs recovered in rates before the related costs are incurred are classified as a regulatory liability. | ||
See Note 11 for further discussion of environmental costs. | ||
Benefit Plans and Other Postretirement Benefits — NSP-Wisconsin maintains pension and postretirement benefit plans for eligible employees. Recognizing the cost of providing benefits and measuring the projected benefit obligation of these plans under applicable accounting guidance requires management to make various assumptions and estimates. | ||
Based on regulatory recovery mechanisms, certain unrecognized actuarial gains and losses and unrecognized prior service costs or credits are recorded as regulatory assets and liabilities, rather than OCI. | ||
See Note 7 for further discussion of benefit plans and other postretirement benefits. | ||
Guarantees — NSP-Wisconsin recognizes, upon issuance or modification of a guarantee, a liability for the fair market value of the obligation that has been assumed in issuing the guarantee. This liability includes consideration of specific triggering events and other conditions which may modify the ongoing obligation to perform under the guarantee. | ||
The obligation recognized is reduced over the term of the guarantee as NSP-Wisconsin is released from risk under the guarantee. See Note 11 for specific details of issued guarantees. | ||
Subsequent Events — Management has evaluated the impact of events occurring after Dec. 31, 2014 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. |
Accounting_Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements |
Recently Issued | |
Revenue Recognition — In May 2014, the FASB issued Revenue from Contracts with Customers, Topic 606 (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 | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Selected Balance Sheet Data | Selected Balance Sheet Data | ||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Accounts receivable, net (a) | |||||||||
Accounts receivable | 66,217 | 64,180 | |||||||
Less allowance for bad debts | (5,821 | ) | (4,911 | ) | |||||
60,396 | 59,269 | ||||||||
(a) | Accounts receivable, net includes an immaterial amount and $1,595 due from affiliates for 2014 and 2013, respectively. | ||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Inventories | |||||||||
Materials and supplies | $ | 6,494 | $ | 6,437 | |||||
Fuel | 6,654 | 5,915 | |||||||
Natural gas | 11,537 | 9,123 | |||||||
$ | 24,685 | $ | 21,475 | ||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Property, plant and equipment, net | |||||||||
Electric plant | $ | 2,061,669 | $ | 1,913,354 | |||||
Natural gas plant | 255,465 | 236,047 | |||||||
Common and other property | 125,938 | 112,886 | |||||||
CWIP | 231,413 | 127,954 | |||||||
Total property, plant and equipment | 2,674,485 | 2,390,241 | |||||||
Less accumulated depreciation | (1,000,204 | ) | (947,462 | ) | |||||
$ | 1,674,281 | $ | 1,442,779 | ||||||
Borrowings_and_Other_Financing
Borrowings and Other Financing Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 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 Dec. 31, 2014 | ||||||||||||
Borrowing limit | $ | 150 | |||||||||||
Amount outstanding at period end | 78 | ||||||||||||
Average amount outstanding | 34 | ||||||||||||
Maximum amount outstanding | 80 | ||||||||||||
Weighted average interest rate, computed on a daily basis | 0.37 | % | |||||||||||
Weighted average interest rate at period end | 0.55 | ||||||||||||
(Amounts in Millions, Except Interest Rates) | Twelve Months Ended Dec. 31, 2014 | Twelve Months Ended Dec. 31, 2013 | Twelve Months Ended Dec. 31, 2012 | ||||||||||
Borrowing limit | $ | 150 | $ | 150 | $ | 150 | |||||||
Amount outstanding at period end | 78 | 68 | 39 | ||||||||||
Average amount outstanding | 46 | 20 | 61 | ||||||||||
Maximum amount outstanding | 101 | 71 | 116 | ||||||||||
Weighted average interest rate, computed on a daily basis | 0.27 | % | 0.31 | % | 0.39 | % | |||||||
Weighted average interest rate at period end | 0.55 | 0.27 | 0.4 | ||||||||||
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 Dec. 31, 2014 and 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. | |||||||||||||
Amended Credit Agreement — In October 2014, NSP-Wisconsin entered into an amended five-year credit agreement with a syndicate of banks. The amended credit agreement has substantially the same terms and conditions as the prior credit agreement with an extension of maturity from July 2017 to October 2019. The borrowing limit for NSP-Wisconsin remained at $150 million. | |||||||||||||
NSP-Wisconsin has the right to request an extension of the revolving termination date for an additional one-year period. All extension requests are subject to majority bank group approval. | |||||||||||||
Other features of NSP-Wisconsin’s credit facility include: | |||||||||||||
• | The credit facility has a financial covenant requiring that the debt-to-total capitalization ratio be less than or equal to 65 percent. NSP-Wisconsin was in compliance as its debt-to-total capitalization ratio was 48 percent and 47 percent at Dec. 31, 2014 and 2013, respectively. If NSP-Wisconsin does not comply with the covenant, an event of default may be declared, and if not remedied, any outstanding amounts due under the facility can be declared due by the lender. | ||||||||||||
• | The credit facility has a cross-default provision that provides NSP-Wisconsin will be in default on its borrowings under the facility if NSP-Wisconsin or any of its subsidiaries whose total assets exceed 15 percent of NSP-Wisconsin’s consolidated total assets, default on certain indebtedness in an aggregate principal amount exceeding $75 million. | ||||||||||||
• | The interest rates under the line of credit are based on Eurodollar borrowing margins ranging from 87.5 to 175 basis points per year based on the applicable long-term credit ratings. | ||||||||||||
• | The commitment fees, also based on applicable long-term credit ratings, are calculated on the unused portion of the lines of credit at a range of 7.5 to 27.5 basis points per year. | ||||||||||||
At Dec. 31, 2014, NSP-Wisconsin had the following committed credit facility available (in millions): | |||||||||||||
Credit Facility (a) | Drawn (b) | Available | |||||||||||
$ | 150 | $ | 78 | $ | 72 | ||||||||
(a) | These credit facilities have been amended to extend the maturity to October 2019. | ||||||||||||
(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 Dec. 31, 2014 and 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) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Notes payable to affiliates | $ | 0.5 | $ | 0.5 | |||||||||
Weighted average interest rate | 0.51 | % | 0.24 | % | |||||||||
Long-Term Borrowings and Other Financing Instruments | |||||||||||||
Generally, all real and personal property of NSP-Wisconsin is subject to the liens of its first mortgage indentures. Debt premiums, discounts and expenses are amortized over the life of the related debt. The premiums, discounts and expenses associated with refinanced debt are deferred and amortized over the life of the related new issuance, in accordance with regulatory guidelines. | |||||||||||||
In June 2014, NSP-Wisconsin issued $100 million of 3.30 percent first mortgage bonds due June 15, 2024. | |||||||||||||
During the next five years, NSP-Wisconsin has long-term debt maturities of $150 million due in 2018. | |||||||||||||
Deferred Financing Costs — Other assets included deferred financing costs of approximately $4.3 million and $3.5 million, net of amortization, at Dec. 31, 2014 and 2013, respectively. NSP-Wisconsin is amortizing these financing costs over the remaining maturity periods of the related debt. | |||||||||||||
Dividend Restrictions — NSP-Wisconsin’s dividends are subject to the FERC’s jurisdiction under the Federal Power Act, which prohibits the payment of dividends out of capital accounts; payment of dividends is allowed out of retained earnings only. | |||||||||||||
The most restrictive dividend limitation for NSP-Wisconsin is imposed by its state regulatory commission. NSP-Wisconsin cannot pay annual dividends in excess of approximately $33.3 million if its calendar year average equity-to-total capitalization ratio is or falls below the state commission authorized level of 52.5 percent, as calculated consistent with PSCW requirements. NSP-Wisconsin’s calendar year average equity-to-total capitalization ratio calculated on this basis was 52.8 percent at Dec. 31, 2014 and $8.3 million in retained earnings was not restricted. |
Joint_Ownership_of_Transmissio
Joint Ownership of Transmission Facilities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Joint Ownership of Transmission Facilities [Abstract] | ||||||||||||||||
Joint Ownership of Transmission Facilities | Joint Ownership of Transmission Facilities | |||||||||||||||
Following are the investments by NSP-Wisconsin in jointly owned transmission facilities and the related ownership percentages as of Dec. 31, 2014: | ||||||||||||||||
(Thousands of Dollars) | Plant in | Accumulated Depreciation | CWIP | Ownership % | ||||||||||||
Service | ||||||||||||||||
Electric Transmission: | ||||||||||||||||
CapX2020 Transmission | $ | 26,434 | $ | 8,082 | $ | 103,940 | 80.7 | % | ||||||||
La Crosse, Wis. to Madison, Wis. | — | — | 9,814 | 50 | ||||||||||||
Total NSP-Wisconsin | $ | 26,434 | $ | 8,082 | $ | 113,754 | ||||||||||
NSP-Wisconsin’s share of operating expenses and construction expenditures are included in the applicable utility accounts. Each of the respective owners is responsible for providing its own financing. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Tax Increase Prevention Act of 2014 — In 2014, the Tax Increase Prevention Act (TIPA) was signed into law. The TIPA provides for the following: | |||||||||||||
• | The R&E credit was extended for 2014; | ||||||||||||
• | PTCs were extended for projects that began construction before the end of 2014 with certain projects qualifying into future years; and | ||||||||||||
• | 50 percent bonus depreciation was extended one year through 2014. Additionally, some longer production period property placed in service in 2015 is also eligible for 50 percent bonus depreciation. | ||||||||||||
The accounting related to the TIPA was recorded beginning in the fourth quarter of 2014 because a change in tax law is accounted for in the period of enactment. | |||||||||||||
American Taxpayer Relief Act of 2012 — In 2013, the American Taxpayer Relief Act (ATRA) was signed into law. The ATRA provided for the following: | |||||||||||||
• | The top tax rate for dividends increased from 15 percent to 20 percent. The 20 percent dividend rate is now consistent with the tax rates for capital gains; | ||||||||||||
• | The R&E credit was extended for 2012 and 2013; | ||||||||||||
• | PTCs were extended for projects that began construction before the end of 2013 with certain projects qualifying into future years; and | ||||||||||||
• | 50 percent bonus depreciation was extended one year through 2013. Additionally, some longer production period property placed in service in 2014 is also eligible for 50 percent bonus depreciation. | ||||||||||||
The accounting related to the ATRA, including the provisions related to 2012, was recorded beginning in the first quarter of 2013 because a change in tax law is accounted for in the period of enactment. | |||||||||||||
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 March 2016. In the third quarter of 2012, the IRS commenced an examination of tax years 2010 and 2011, including the 2009 carryback claim. As of Dec. 31, 2014, the IRS had proposed an adjustment to the federal tax loss carryback claims that would result in $12 million of income tax expense for the 2009 through 2011 claims, the recently filed 2013 claim, and the anticipated claim for 2014. NSP-Wisconsin is not expected to accrue any income tax expense related to this adjustment. At Dec. 31, 2014, the IRS has begun the Appeals process; however, the outcome and timing of a resolution is uncertain. | |||||||||||||
State Audits — NSP-Wisconsin is a member of the Xcel Energy affiliated group that files consolidated state income tax returns. As of Dec. 31, 2014, NSP-Wisconsin’s earliest open tax year that is subject to examination by state taxing authorities under applicable statutes of limitations is 2010. In the first quarter of 2014, the state of Wisconsin commenced an examination of tax years 2009 through 2011. No material adjustments were proposed for those tax years. As of Dec. 31, 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 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) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Unrecognized tax benefit — Permanent tax positions | $ | 0.1 | $ | 0.1 | |||||||||
Unrecognized tax benefit — Temporary tax positions | 2.9 | 1.4 | |||||||||||
Total unrecognized tax benefit | $ | 3 | $ | 1.5 | |||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Balance at Jan. 1 | $ | 1.5 | $ | 1.3 | $ | 1.5 | |||||||
Additions based on tax positions related to the current year | 1.9 | 0.7 | 0.5 | ||||||||||
Reductions based on tax positions related to the current year | (0.2 | ) | — | (0.2 | ) | ||||||||
Additions for tax positions of prior years | 0.1 | 0.5 | 0.3 | ||||||||||
Reductions for tax positions of prior years | (0.2 | ) | — | (0.8 | ) | ||||||||
Settlements with taxing authorities | (0.1 | ) | (1.0 | ) | — | ||||||||
Balance at Dec. 31 | $ | 3 | $ | 1.5 | $ | 1.3 | |||||||
The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: | |||||||||||||
(Millions of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
NOL and tax credit carryforwards | $ | (0.9 | ) | $ | (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 Appeals process 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 Dec. 31, 2014, 2013 and 2012 were not material. No amounts were accrued for penalties related to unrecognized tax benefits as of Dec. 31, 2014, 2013 or 2012. | |||||||||||||
Other Income Tax Matters — NOL amounts represent the amount of the tax loss that is carried forward and tax credits represent the deferred tax asset. NOL and tax credit carryforwards as of Dec. 31 were as follows: | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||
Federal NOL carryforward | 48.5 | 46.8 | |||||||||||
Federal tax credit carryforwards | 4.5 | 4.4 | |||||||||||
State NOL carryforward | 3.4 | 6.3 | |||||||||||
The federal carryforward periods expire between 2021 and 2034. The state carryforward periods expire between 2022 and 2031. | |||||||||||||
Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. The following reconciles such differences for the years ending Dec. 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Increases (decreases) in tax from: | |||||||||||||
State income taxes, net of federal income tax benefit | 4.9 | 5 | 3.4 | ||||||||||
Tax credits recognized | (0.7 | ) | (0.9 | ) | (0.9 | ) | |||||||
Regulatory differences — utility plant items | (1.6 | ) | (0.9 | ) | (0.3 | ) | |||||||
Change in unrecognized tax benefits | — | — | 0.1 | ||||||||||
Other, net | (0.1 | ) | (0.2 | ) | (0.1 | ) | |||||||
Effective income tax rate | 37.5 | % | 38 | % | 37.2 | % | |||||||
The components of income tax expense for the years ending Dec. 31 were: | |||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Current federal tax expense (benefit) | $ | (3,932 | ) | $ | 5,902 | $ | 930 | ||||||
Current state tax expense | 453 | 4,628 | 2,216 | ||||||||||
Current change in unrecognized tax expense (benefit) | 1,013 | 754 | (69 | ) | |||||||||
Deferred federal tax expense | 38,321 | 23,794 | 25,089 | ||||||||||
Deferred state tax expense | 8,042 | 2,720 | 1,890 | ||||||||||
Deferred change in unrecognized tax (benefit) expense | (967 | ) | (725 | ) | 128 | ||||||||
Deferred investment tax credits | (527 | ) | (664 | ) | (626 | ) | |||||||
Total income tax expense | $ | 42,403 | $ | 36,409 | $ | 29,558 | |||||||
The components of deferred income tax expense for the years ending Dec. 31 were: | |||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Deferred tax expense excluding items below | $ | 49,793 | $ | 27,516 | $ | 27,995 | |||||||
Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities | (4,346 | ) | (1,676 | ) | (837 | ) | |||||||
Tax expense allocated to other comprehensive income | (51 | ) | (51 | ) | (51 | ) | |||||||
Deferred tax expense | $ | 45,396 | $ | 25,789 | $ | 27,107 | |||||||
The components of the net deferred tax liability (current and noncurrent) at Dec. 31 were as follows: | |||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Difference between book and tax bases of property | $ | 319,265 | $ | 287,121 | |||||||||
Regulatory assets | 72,670 | 57,296 | |||||||||||
Employee benefits | 18,691 | 16,953 | |||||||||||
Other | 14,453 | 10,193 | |||||||||||
Total deferred tax liabilities | $ | 425,079 | $ | 371,563 | |||||||||
Deferred tax assets: | |||||||||||||
Environmental remediation | 43,207 | 43,501 | |||||||||||
NOL carryforward | 18,283 | 17,384 | |||||||||||
Regulatory liabilities | 10,460 | 6,205 | |||||||||||
Deferred investment tax credits | 5,628 | 5,976 | |||||||||||
Tax credit carryforward | 4,515 | 4,440 | |||||||||||
Other | 3,007 | 3,871 | |||||||||||
Total deferred tax assets | $ | 85,100 | $ | 81,377 | |||||||||
Net deferred tax liability | $ | 339,979 | $ | 290,186 | |||||||||
Benefit_Plans_and_Other_Postre
Benefit Plans and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits | ||||||||||||||||||||||||
Consistent with the process for rate recovery of pension and postretirement benefits for its employees, NSP-Wisconsin accounts for its participation in, and related costs of, pension and other postretirement benefit plans sponsored by Xcel Energy Inc. as multiple employer plans. NSP-Wisconsin is responsible for its share of cash contributions, plan costs and obligations and is entitled to its share of plan assets; accordingly, NSP-Wisconsin accounts for its pro rata share of these plans, including pension expense and contributions, resulting in accounting consistent with that of a single employer plan exclusively for NSP-Wisconsin employees. | |||||||||||||||||||||||||
Xcel Energy, which includes NSP-Wisconsin, offers various benefit plans to its employees. Approximately 71 percent of employees that receive benefits are represented by several local labor unions under several collective-bargaining agreements. At Dec. 31, 2014, NSP-Wisconsin had 402 bargaining employees covered under a collective-bargaining agreement, which expires at the end of 2016. | |||||||||||||||||||||||||
The plans invest in various instruments which are disclosed under the accounting guidance for fair value measurements which establishes a hierarchical framework for disclosing the observability of the inputs utilized in measuring fair value. The three levels in the hierarchy and examples of each level are as follows: | |||||||||||||||||||||||||
Level 1 — Quoted prices are available in active markets for identical assets as of the reporting date. The types of assets 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 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 included in Level 3 are those with inputs 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. | |||||||||||||||||||||||||
Insurance contracts — Insurance contract fair values take into consideration the value of the investments in separate accounts of the insurer, which are priced based on observable inputs. | |||||||||||||||||||||||||
Investments in equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds, private equity investments and real estate investments are measured using net asset values, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. The investments in commingled funds may be redeemed for net asset value with proper notice. Proper notice varies by fund and can range from daily with one or two days notice to annually with 90 days notice. Private equity investments require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Unscheduled distributions from real estate investments may be redeemed with proper notice, which is typically quarterly with 45-90 days notice; however, withdrawals from real estate investments may be delayed or discounted as a result of fund illiquidity. Based on the plan’s evaluation of its ability to redeem private equity and real estate investments, fair value measurements for private equity and real estate investments have been assigned a Level 3. | |||||||||||||||||||||||||
Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities. | |||||||||||||||||||||||||
Derivative Instruments — Fair values for foreign currency derivatives are determined using pricing models based on the prevailing forward exchange rate of the underlying currencies. The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts. | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
Xcel Energy, which includes NSP-Wisconsin, has several noncontributory, defined benefit pension plans that cover almost all employees. Generally, benefits are based on a combination of years of service, the employee’s average pay and, in some cases, social security benefits. Xcel Energy Inc.’s and NSP-Wisconsin’s policy is to fully fund into an external trust the actuarially determined pension costs recognized for ratemaking and financial reporting purposes, subject to the limitations of applicable employee benefit and tax laws. | |||||||||||||||||||||||||
In addition to the qualified pension plans, Xcel Energy maintains a supplemental executive retirement plan (SERP) and a nonqualified pension plan. The SERP is maintained for certain executives that were participants in the plan in 2008, when the SERP was closed to new participants. The nonqualified pension plan provides unfunded, nonqualified benefits for compensation that is in excess of the limits applicable to the qualified pension plans. The total obligations of the SERP and nonqualified plan as of Dec. 31, 2014 and 2013 were $46.5 million and $36.5 million, respectively, of which $0.8 million and $0.6 million, respectively, was attributable to NSP-Wisconsin. In 2014 and 2013, Xcel Energy recognized net benefit cost for financial reporting for the SERP and nonqualified plans of $4.7 million and $6.6 million, respectively, of which amounts attributable to NSP-Wisconsin were immaterial. Benefits for these unfunded plans are paid out of Xcel Energy’s consolidated operating cash flows. | |||||||||||||||||||||||||
Xcel Energy Inc. and NSP-Wisconsin base the investment-return assumption on expected long-term performance for each of the investment types included in the pension asset portfolio and consider the historical returns achieved by the asset portfolio over the past 20-year or longer period, as well as the long-term return levels projected and recommended by investment experts. Xcel Energy Inc. and NSP-Wisconsin continually review the pension assumptions. The pension cost determination assumes a forecasted mix of investment types over the long term. | |||||||||||||||||||||||||
• | Investment returns in 2014 and 2013 were below the assumed level of 7.25 percent in both years; | ||||||||||||||||||||||||
• | Investment returns in 2012 were above the assumed level of 7.50 percent; and | ||||||||||||||||||||||||
• | In 2015, NSP-Wisconsin’s expected investment-return assumption is 7.25 percent. | ||||||||||||||||||||||||
The assets are invested in a portfolio according to Xcel Energy Inc.’s and NSP-Wisconsin’s return, liquidity and diversification objectives to provide a source of funding for plan obligations and minimize the necessity of contributions to the plan, within appropriate levels of risk. The principal mechanism for achieving these objectives is the projected allocation of assets to selected asset classes, given the long-term risk, return, and liquidity characteristics of each particular asset class. There were no significant concentrations of risk in any particular industry, index, or entity. Market volatility can impact even well-diversified portfolios and significantly affect the return levels achieved by pension assets in any year. | |||||||||||||||||||||||||
The following table presents the target pension asset allocations for NSP-Wisconsin at Dec. 31 for the upcoming year: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Domestic and international equity securities | 39 | % | 31 | % | |||||||||||||||||||||
Long-duration fixed income and interest rate swap securities | 23 | 29 | |||||||||||||||||||||||
Short-to-intermediate term fixed income securities | 14 | 16 | |||||||||||||||||||||||
Alternative investments | 22 | 22 | |||||||||||||||||||||||
Cash | 2 | 2 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
The ongoing investment strategy is based on plan-specific investment recommendations that seek to minimize potential investment and interest rate risk as a plan’s funded status increases over time. The investment recommendations result in a greater percentage of long-duration fixed income securities being allocated to specific plans having relatively higher funded status ratios and a greater percentage of growth assets being allocated to plans having relatively lower funded status ratios. The aggregate projected asset allocation presented in the table above for the master pension trust results from the plan-specific strategies. | |||||||||||||||||||||||||
Pension Plan Assets | |||||||||||||||||||||||||
The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s pension plan assets that are measured at fair value as of Dec. 31, 2014 and 2013: | |||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 7,910 | $ | — | $ | — | $ | 7,910 | |||||||||||||||||
Derivatives | — | 28 | — | 28 | |||||||||||||||||||||
Government securities | — | 16,084 | — | 16,084 | |||||||||||||||||||||
Corporate bonds | — | 13,231 | — | 13,231 | |||||||||||||||||||||
Asset-backed securities | — | 162 | — | 162 | |||||||||||||||||||||
Mortgage-backed securities | — | 475 | — | 475 | |||||||||||||||||||||
Common stock | 4,424 | — | — | 4,424 | |||||||||||||||||||||
Private equity investments | — | — | 7,078 | 7,078 | |||||||||||||||||||||
Commingled funds | — | 81,806 | — | 81,806 | |||||||||||||||||||||
Real estate | — | — | 2,510 | 2,510 | |||||||||||||||||||||
Securities lending collateral obligation and other | — | (995 | ) | — | (995 | ) | |||||||||||||||||||
Total | $ | 12,334 | $ | 110,791 | $ | 9,588 | $ | 132,713 | |||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 4,332 | $ | — | $ | — | $ | 4,332 | |||||||||||||||||
Derivatives | — | 937 | — | 937 | |||||||||||||||||||||
Government securities | — | 6,711 | — | 6,711 | |||||||||||||||||||||
Corporate bonds | — | 24,955 | — | 24,955 | |||||||||||||||||||||
Asset-backed securities | — | 307 | — | 307 | |||||||||||||||||||||
Mortgage-backed securities | — | 684 | — | 684 | |||||||||||||||||||||
Common stock | 4,533 | — | — | 4,533 | |||||||||||||||||||||
Private equity investments | — | — | 7,502 | 7,502 | |||||||||||||||||||||
Commingled funds | — | 84,364 | — | 84,364 | |||||||||||||||||||||
Real estate | — | — | 2,299 | 2,299 | |||||||||||||||||||||
Securities lending collateral obligation and other | — | 311 | — | 311 | |||||||||||||||||||||
Total | $ | 8,865 | $ | 118,269 | $ | 9,801 | $ | 136,935 | |||||||||||||||||
The following tables present the changes in NSP-Wisconsin’s Level 3 pension plan assets for the years ended Dec. 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2014 | Net Realized | Net Unrealized | Purchases, | Transfer Out | Dec. 31, 2014 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | of Level 3 | ||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Private equity investments | $ | 7,502 | $ | 1,197 | $ | (1,197 | ) | $ | (424 | ) | $ | — | $ | 7,078 | |||||||||||
Real estate | 2,299 | 166 | (234 | ) | 279 | — | 2,510 | ||||||||||||||||||
Total | $ | 9,801 | $ | 1,363 | $ | (1,431 | ) | $ | (145 | ) | $ | — | $ | 9,588 | |||||||||||
(Thousands of Dollars) | Jan. 1, 2013 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 (a) | Dec. 31, 2013 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 749 | $ | — | $ | — | $ | — | $ | (749 | ) | $ | — | ||||||||||||
Mortgage-backed securities | 2,128 | — | — | — | (2,128 | ) | — | ||||||||||||||||||
Private equity investments | 8,545 | 1,083 | (1,960 | ) | (166 | ) | — | 7,502 | |||||||||||||||||
Real estate | 3,472 | (129 | ) | 247 | 450 | (1,741 | ) | 2,299 | |||||||||||||||||
Total | $ | 14,894 | $ | 954 | $ | (1,713 | ) | $ | 284 | $ | (4,618 | ) | $ | 9,801 | |||||||||||
(a) | Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013. | ||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2012 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 | Dec. 31, 2012 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 1,578 | $ | 197 | $ | (273 | ) | $ | (753 | ) | $ | — | $ | 749 | |||||||||||
Mortgage-backed securities | 3,781 | 93 | (112 | ) | (1,634 | ) | — | 2,128 | |||||||||||||||||
Private equity investments | 8,440 | 945 | (1,197 | ) | 357 | — | 8,545 | ||||||||||||||||||
Real estate | 2,008 | 1 | 328 | 1,135 | — | 3,472 | |||||||||||||||||||
Total | $ | 15,807 | $ | 1,236 | $ | (1,254 | ) | $ | (895 | ) | $ | — | $ | 14,894 | |||||||||||
Benefit Obligations — A comparison of the actuarially computed pension benefit obligation and plan assets for NSP-Wisconsin is presented in the following table: | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Accumulated Benefit Obligation at Dec. 31 | $ | 153,590 | $ | 153,894 | |||||||||||||||||||||
Change in Projected Benefit Obligation: | |||||||||||||||||||||||||
Obligation at Jan. 1 | $ | 163,930 | $ | 179,995 | |||||||||||||||||||||
Service cost | 4,527 | 5,682 | |||||||||||||||||||||||
Interest cost | 7,257 | 6,924 | |||||||||||||||||||||||
Plan amendments | — | (1,109 | ) | ||||||||||||||||||||||
Actuarial loss (gain) | 9,126 | (11,097 | ) | ||||||||||||||||||||||
Benefit payments | (19,171 | ) | (16,465 | ) | |||||||||||||||||||||
Obligation at Dec. 31 | $ | 165,669 | $ | 163,930 | |||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Change in Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at Jan. 1 | $ | 136,935 | $ | 136,546 | |||||||||||||||||||||
Actual return on plan assets | 6,916 | 5,525 | |||||||||||||||||||||||
Employer contributions | 8,033 | 11,329 | |||||||||||||||||||||||
Benefit payments | (19,171 | ) | (16,465 | ) | |||||||||||||||||||||
Fair value of plan assets at Dec. 31 | $ | 132,713 | $ | 136,935 | |||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Funded Status of Plans at Dec. 31: | |||||||||||||||||||||||||
Funded status (a) | $ | (32,956 | ) | $ | (26,995 | ) | |||||||||||||||||||
(a) | Amounts are recognized in noncurrent liabilities on NSP-Wisconsin’s consolidated balance sheets. | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Net loss | $ | 90,007 | $ | 84,773 | |||||||||||||||||||||
Prior service cost | 667 | 778 | |||||||||||||||||||||||
Total | $ | 90,674 | $ | 85,551 | |||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates: | |||||||||||||||||||||||||
Current regulatory assets | $ | 6,728 | $ | 7,631 | |||||||||||||||||||||
Noncurrent regulatory assets | 83,946 | 77,920 | |||||||||||||||||||||||
Total | $ | 90,674 | $ | 85,551 | |||||||||||||||||||||
Measurement date | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Significant Assumptions Used to Measure Benefit Obligations: | |||||||||||||||||||||||||
Discount rate for year-end valuation | 4.11 | % | 4.75 | % | |||||||||||||||||||||
Expected average long-term increase in compensation level | 3.75 | 3.75 | |||||||||||||||||||||||
Mortality table | RP 2014 | RP 2000 | |||||||||||||||||||||||
Mortality — In 2014, the Society of Actuaries published a new mortality table and projection scale that increased the overall life expectancy of males and females. NSP-Wisconsin has reviewed its own population through a credibility analysis and adopted the RP 2014 table with modifications based on its population and specific experience. | |||||||||||||||||||||||||
Cash Flows — Cash funding requirements can be impacted by changes to actuarial assumptions, actual asset levels and other calculations prescribed by the funding requirements of income tax and other pension-related regulations. Required contributions were made in 2012 through 2015 to meet minimum funding requirements. | |||||||||||||||||||||||||
Total voluntary and required pension funding contributions across all four of Xcel Energy’s pension plans were as follows: | |||||||||||||||||||||||||
• | $90.0 million in January 2015, of which $4.9 million was attributable to NSP-Wisconsin; | ||||||||||||||||||||||||
• | $130.6 million in 2014, of which $8.0 million was attributable to NSP-Wisconsin; | ||||||||||||||||||||||||
• | $192.4 million in 2013, of which $11.3 million was attributable to NSP-Wisconsin; and | ||||||||||||||||||||||||
• | $198.1 million in 2012, of which $12.5 million was attributable to NSP-Wisconsin. | ||||||||||||||||||||||||
For future years, Xcel Energy and NSP-Wisconsin anticipate contributions will be made as necessary. | |||||||||||||||||||||||||
Plan Amendments — In 2014, there were no plan amendments made which affected the benefit obligation. Xcel Energy, which includes NSP-Wisconsin, amended the plan in 2013 resulting in a decrease of the projected benefit obligation due to fully insuring the long-term disability benefit for NSP bargaining participants. This decrease was partially offset by an increase to the projected benefit obligation resulting from a change in the discount rate basis for lump sum conversion of annuities for participants in the Xcel Energy Pension Plan. | |||||||||||||||||||||||||
Benefit Costs — The components of NSP-Wisconsin’s net periodic pension cost were: | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost | $ | 4,527 | $ | 5,682 | $ | 4,568 | |||||||||||||||||||
Interest cost | 7,257 | 6,924 | 7,765 | ||||||||||||||||||||||
Expected return on plan assets | (9,642 | ) | (9,995 | ) | (10,489 | ) | |||||||||||||||||||
Amortization of prior service cost | 111 | 417 | 1,771 | ||||||||||||||||||||||
Amortization of net loss | 6,617 | 7,924 | 6,004 | ||||||||||||||||||||||
Net periodic pension cost | $ | 8,870 | $ | 10,952 | $ | 9,619 | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Significant Assumptions Used to Measure Costs: | |||||||||||||||||||||||||
Discount rate | 4.75 | % | 4 | % | 5 | % | |||||||||||||||||||
Expected average long-term increase in compensation level | 3.75 | 3.75 | 4 | ||||||||||||||||||||||
Expected average long-term rate of return on assets | 7.25 | 7.25 | 7.5 | ||||||||||||||||||||||
In addition to the benefit costs in the table above, for the pension plans sponsored by Xcel Energy, Inc., costs are allocated to NSP-Wisconsin based on Xcel Energy Services Inc. employees’ labor costs. Amounts allocated to NSP-Wisconsin were $1.7 million, $2.2 million and $1.8 million in 2014, 2013 and 2012, respectively. Pension costs include an expected return impact for the current year that may differ from actual investment performance in the plan. The return assumption used for 2015 pension cost calculations is 7.25 percent. The cost calculation uses a market-related valuation of pension assets. Xcel Energy, including NSP-Wisconsin, uses a calculated value method to determine the market-related value of the plan assets. The market-related value begins with the fair market value of assets as of the beginning of the year. The market-related value is determined by adjusting the fair market value of assets to reflect the investment gains and losses (the difference between the actual investment return and the expected investment return on the market-related value) during each of the previous five years at the rate of 20 percent per year. As these differences between actual investment returns and the expected investment returns are incorporated into the market-related value, the differences are recognized over the expected average remaining years of service for active employees. | |||||||||||||||||||||||||
Defined Contribution Plans | |||||||||||||||||||||||||
Xcel Energy, which includes NSP-Wisconsin, maintains 401(k) and other defined contribution plans that cover substantially all employees. The expense to these plans for NSP-Wisconsin was approximately $1.4 million in 2014, $1.3 million in 2013 and $1.2 million in 2012. | |||||||||||||||||||||||||
Postretirement Health Care Benefits | |||||||||||||||||||||||||
Xcel Energy, which includes NSP-Wisconsin, has a contributory health and welfare benefit plan that provides health care and death benefits to certain Xcel Energy retirees. The former NSP, which includes NSP-Wisconsin, discontinued contributing toward health care benefits for nonbargaining employees retiring after 1998 and for bargaining employees who retired after 1999. | |||||||||||||||||||||||||
In 1993, Xcel Energy Inc. and NSP-Wisconsin adopted accounting guidance regarding other non-pension postretirement benefits and elected to amortize the unrecognized APBO on a straight-line basis over 20 years. | |||||||||||||||||||||||||
Regulatory agencies for nearly all retail utility customers have allowed rate recovery of accrued postretirement benefit costs. | |||||||||||||||||||||||||
Plan Assets — Certain state agencies that regulate Xcel Energy Inc.’s utility subsidiaries also have issued guidelines related to the funding of postretirement benefit costs. These assets are invested in a manner consistent with the investment strategy for the pension plan. | |||||||||||||||||||||||||
The following table presents the target postretirement asset allocations for Xcel Energy Inc. and NSP-Wisconsin at Dec. 31 for the upcoming year: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Domestic and international equity securities | 25 | % | 41 | % | |||||||||||||||||||||
Short-to-intermediate fixed income securities | 57 | 40 | |||||||||||||||||||||||
Alternative investments | 13 | 13 | |||||||||||||||||||||||
Cash | 5 | 6 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Xcel Energy Inc. and NSP-Wisconsin base investment-return assumptions for the postretirement health care fund assets on expected long-term performance for each of the investment types included in the asset portfolio. Assumptions and target allocations are determined at the master trust level. The investment mix at each of Xcel Energy Inc.’s utility subsidiaries may vary from the investment mix of the total asset portfolio. The assets are invested in a portfolio according to Xcel Energy Inc.’s and NSP-Wisconsin’s return, liquidity and diversification objectives to provide a source of funding for plan obligations and minimize the necessity of contributions to the plan, within appropriate levels of risk. The principal mechanism for achieving these objectives is the projected allocation of assets to selected asset classes, given the long-term risk, return, correlation and liquidity characteristics of each particular asset class. There were no significant concentrations of risk in any particular industry, index, or entity. Market volatility is not considered to be a material factor in postretirement health care costs. | |||||||||||||||||||||||||
The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s proportionate allocation of the total postretirement benefit plan assets that are measured at fair value as of Dec. 31, 2014 and 2013: | |||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 28 | $ | — | $ | — | $ | 28 | |||||||||||||||||
Government securities | — | 52 | — | 52 | |||||||||||||||||||||
Insurance contracts | — | 54 | — | 54 | |||||||||||||||||||||
Corporate bonds | — | 59 | — | 59 | |||||||||||||||||||||
Asset-backed securities | — | 4 | — | 4 | |||||||||||||||||||||
Mortgage-backed securities | — | 12 | — | 12 | |||||||||||||||||||||
Commingled funds | — | 304 | — | 304 | |||||||||||||||||||||
Other | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Total | $ | 28 | $ | 484 | $ | — | $ | 512 | |||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 31 | $ | — | $ | — | $ | 31 | |||||||||||||||||
Derivatives | — | (2 | ) | — | (2 | ) | |||||||||||||||||||
Government securities | — | 89 | — | 89 | |||||||||||||||||||||
Insurance contracts | — | 80 | — | 80 | |||||||||||||||||||||
Corporate bonds | — | 79 | — | 79 | |||||||||||||||||||||
Asset-backed securities | — | 5 | — | 5 | |||||||||||||||||||||
Mortgage-backed securities | — | 37 | — | 37 | |||||||||||||||||||||
Commingled funds | — | 452 | — | 452 | |||||||||||||||||||||
Other | — | (25 | ) | — | (25 | ) | |||||||||||||||||||
Total | $ | 31 | $ | 715 | $ | — | $ | 746 | |||||||||||||||||
For the year ended Dec. 31, 2014 there were no assets transferred in or out of Level 3. The following tables present the changes in NSP-Wisconsin’s Level 3 postretirement benefit plan assets for the years ended Dec. 31, 2013 and 2012: | |||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2013 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 (a) | Dec. 31, 2013 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 1 | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | ||||||||||||
Mortgage-backed securities | 54 | — | — | — | (54 | ) | — | ||||||||||||||||||
Total | $ | 55 | $ | — | $ | — | $ | — | $ | (55 | ) | $ | — | ||||||||||||
(a) | Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013. | ||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2012 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 | Dec. 31, 2012 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 14 | $ | — | $ | 3 | $ | (16 | ) | $ | — | $ | 1 | ||||||||||||
Mortgage-backed securities | 48 | (1 | ) | 6 | 1 | — | 54 | ||||||||||||||||||
Total | $ | 62 | $ | (1 | ) | $ | 9 | $ | (15 | ) | $ | — | $ | 55 | |||||||||||
Benefit Obligations — A comparison of the actuarially computed benefit obligation and plan assets for NSP-Wisconsin is presented in the following table: | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Change in Projected Benefit Obligation: | |||||||||||||||||||||||||
Obligation at Jan. 1 | $ | 17,153 | $ | 19,432 | |||||||||||||||||||||
Service cost | 35 | 25 | |||||||||||||||||||||||
Interest cost | 791 | 760 | |||||||||||||||||||||||
Medicare subsidy reimbursements | 2 | 31 | |||||||||||||||||||||||
Plan participants’ contributions | 284 | 621 | |||||||||||||||||||||||
Actuarial gain | (38 | ) | (1,724 | ) | |||||||||||||||||||||
Benefit payments | (1,459 | ) | (1,992 | ) | |||||||||||||||||||||
Obligation at Dec. 31 | $ | 16,768 | $ | 17,153 | |||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Change in Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at Jan. 1 | $ | 746 | $ | 647 | |||||||||||||||||||||
Actual return on plan assets | (15 | ) | (13 | ) | |||||||||||||||||||||
Plan participants’ contributions | 284 | 621 | |||||||||||||||||||||||
Employer contributions | 956 | 1,483 | |||||||||||||||||||||||
Benefit payments | (1,459 | ) | (1,992 | ) | |||||||||||||||||||||
Fair value of plan assets at Dec. 31 | $ | 512 | $ | 746 | |||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Funded Status of Plans at Dec. 31: | |||||||||||||||||||||||||
Funded status | $ | (16,256 | ) | $ | (16,407 | ) | |||||||||||||||||||
Current liabilities | (1,022 | ) | (718 | ) | |||||||||||||||||||||
Noncurrent liabilities | (15,234 | ) | (15,689 | ) | |||||||||||||||||||||
Net postretirement amounts recognized on consolidated balance sheets | $ | (16,256 | ) | $ | (16,407 | ) | |||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Net loss | $ | 10,461 | $ | 11,098 | |||||||||||||||||||||
Prior service credit | (2,836 | ) | (3,187 | ) | |||||||||||||||||||||
Total | $ | 7,625 | $ | 7,911 | |||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates: | |||||||||||||||||||||||||
Current regulatory assets | $ | 95 | $ | 570 | |||||||||||||||||||||
Noncurrent regulatory assets | 7,530 | 7,341 | |||||||||||||||||||||||
Total | $ | 7,625 | $ | 7,911 | |||||||||||||||||||||
Measurement date | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Significant Assumptions Used to Measure Benefit Obligations: | |||||||||||||||||||||||||
Discount rate for year-end valuation | 4.08 | % | 4.82 | % | |||||||||||||||||||||
Mortality table | RP 2014 | RP 2000 | |||||||||||||||||||||||
Health care costs trend rate — initial | 6.5 | % | 7 | % | |||||||||||||||||||||
Effective Jan. 1, 2015, the initial medical trend rate was decreased from 7.0 percent to 6.5 percent. The ultimate trend assumption remained at 4.5 percent. The period until the ultimate rate is reached is four years. Xcel Energy Inc. and NSP-Wisconsin base the medical trend assumption on the long-term cost inflation expected in the health care market, considering the levels projected and recommended by industry experts, as well as recent actual medical cost increases experienced by the retiree medical plan. | |||||||||||||||||||||||||
A one-percent change in the assumed health care cost trend rate would have the following effects on NSP-Wisconsin: | |||||||||||||||||||||||||
One-Percentage Point | |||||||||||||||||||||||||
(Thousands of Dollars) | Increase | Decrease | |||||||||||||||||||||||
APBO | $ | 1,722 | $ | (1,450 | ) | ||||||||||||||||||||
Service and interest components | 98 | (80 | ) | ||||||||||||||||||||||
Cash Flows — The postretirement health care plans have no funding requirements under income tax and other retirement-related regulations other than fulfilling benefit payment obligations, when claims are presented and approved under the plans. Additional cash funding requirements are prescribed by certain state and federal rate regulatory authorities, as discussed previously. Xcel Energy, which includes NSP-Wisconsin, contributed $17.1 million, $17.6 million and $47.1 million during 2014, 2013 and 2012, respectively, of which $1.0 million, $1.5 million and $1.9 million were attributable to NSP-Wisconsin. Xcel Energy expects to contribute approximately $12.8 million during 2015, of which $1.5 million is attributable to NSP-Wisconsin. | |||||||||||||||||||||||||
Plan Amendments — In 2014 and 2013, there were no plan amendments made which affected the benefit obligation. | |||||||||||||||||||||||||
Benefit Costs — The components of NSP-Wisconsin’s net periodic postretirement benefit costs were: | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost | $ | 35 | $ | 25 | $ | 20 | |||||||||||||||||||
Interest cost | 791 | 760 | 1,075 | ||||||||||||||||||||||
Expected return on plan assets | (52 | ) | (42 | ) | (50 | ) | |||||||||||||||||||
Amortization of transition obligation | — | 1 | 171 | ||||||||||||||||||||||
Amortization of prior service credit | (351 | ) | (351 | ) | (14 | ) | |||||||||||||||||||
Amortization of net loss | 666 | 963 | 486 | ||||||||||||||||||||||
Net periodic postretirement benefit cost | $ | 1,089 | $ | 1,356 | $ | 1,688 | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Significant Assumptions Used to Measure Costs: | |||||||||||||||||||||||||
Discount rate | 4.82 | % | 4.1 | % | 5 | % | |||||||||||||||||||
Expected average long-term rate of return on assets | 7.08 | 7.11 | 6.75 | ||||||||||||||||||||||
In addition to the benefit costs in the table above, for the postretirement health care plans sponsored by Xcel Energy, Inc., costs are allocated to NSP-Wisconsin based on Xcel Energy Services Inc. employees’ labor costs. | |||||||||||||||||||||||||
Projected Benefit Payments | |||||||||||||||||||||||||
The following table lists NSP-Wisconsin’s projected benefit payments for the pension and postretirement benefit plans: | |||||||||||||||||||||||||
(Thousands of Dollars) | Projected Pension | Gross Projected | Expected Medicare | Net Projected | |||||||||||||||||||||
Benefit Payments | Postretirement | Part D Subsidies | Postretirement | ||||||||||||||||||||||
Health Care | Health Care | ||||||||||||||||||||||||
Benefit Payments | Benefit Payments | ||||||||||||||||||||||||
2015 | $ | 12,517 | $ | 1,547 | $ | 13 | $ | 1,534 | |||||||||||||||||
2016 | 13,288 | 1,473 | 11 | 1,462 | |||||||||||||||||||||
2017 | 13,164 | 1,397 | 9 | 1,388 | |||||||||||||||||||||
2018 | 12,564 | 1,352 | 8 | 1,344 | |||||||||||||||||||||
2019 | 13,289 | 1,311 | 7 | 1,304 | |||||||||||||||||||||
2020-2024 | 65,118 | 5,816 | 30 | 5,786 | |||||||||||||||||||||
Multiemployer Plans | |||||||||||||||||||||||||
NSP-Wisconsin contributes to several union multiemployer pension plans, none of which are individually significant. These plans provide pension benefits to certain union employees, including electrical workers and other construction and facilities workers who may perform services for more than one employer during a given period and do not participate in the NSP-Wisconsin sponsored pension plans. Contributing to these types of plans creates risk that differs from providing benefits under NSP-Wisconsin sponsored plans, in that if another participating employer ceases to contribute to a multiemployer plan, additional unfunded obligations may need to be funded over time by remaining participating employers. | |||||||||||||||||||||||||
Contributions to multiemployer plans were as follows for the years ended Dec. 31, 2014, 2013 and 2012. There were no significant changes to the nature or magnitude of the participation of NSP-Wisconsin in multiemployer plans for the years presented: | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Multiemployer plan contributions: | |||||||||||||||||||||||||
Pension | $ | 156 | $ | 130 | $ | 163 | |||||||||||||||||||
Total | $ | 156 | $ | 130 | $ | 163 | |||||||||||||||||||
Other_Income_Net
Other Income, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Income, Net | Other Income, Net | ||||||||||||
Other income, net for the years ended Dec. 31 consisted of the following: | |||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Interest income | $ | 368 | $ | 538 | $ | 736 | |||||||
Other nonoperating income | 321 | 152 | 129 | ||||||||||
Insurance policy expense | (409 | ) | (427 | ) | (389 | ) | |||||||
Other nonoperating expense | (10 | ) | (10 | ) | — | ||||||||
Other income, net | $ | 270 | $ | 253 | $ | 476 | |||||||
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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, for trading purposes and to manage risk in connection with changes in interest rates and utility commodity prices. | |||||||||||||||||||||||||
Interest Rate Derivatives — NSP-Wisconsin enters into various instruments that effectively fix the interest payments on certain floating rate debt obligations or effectively fix the yield or price on a specified benchmark interest rate for an anticipated debt issuance for a specific period. These derivative instruments are generally designated as cash flow hedges for accounting purposes. | |||||||||||||||||||||||||
At Dec. 31, 2014, accumulated other comprehensive losses 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, including forecasted amounts for unsettled hedges, as applicable. | |||||||||||||||||||||||||
Commodity Derivatives — NSP-Wisconsin may enter into derivative instruments to manage variability of future cash flows from changes in commodity prices in its electric and natural gas operations, as well as for trading purposes. This could include the purchase or sale of natural gas to generate electric energy and natural gas for resale. | |||||||||||||||||||||||||
The following table details the gross notional amounts of commodity options at Dec. 31: | |||||||||||||||||||||||||
(Amounts in Thousands) (a)(b) | 2014 | 2013 | |||||||||||||||||||||||
MMBtu of natural gas | 18 | 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. | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Financial Impact of Qualifying Cash Flow Hedges — The impact of qualifying interest rate cash flow hedges on NSP-Wisconsin’s accumulated other comprehensive loss, included in the consolidated statements of common stockholder’s equity and in the consolidated statements of comprehensive income, is detailed in the following table: | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1 | $ | (361 | ) | $ | (437 | ) | $ | (514 | ) | ||||||||||||||||
After-tax net realized losses on derivative transactions reclassified into earnings | 76 | 76 | 77 | ||||||||||||||||||||||
Accumulated other comprehensive loss related to cash flow hedges at Dec. 31 | $ | (285 | ) | $ | (361 | ) | $ | (437 | ) | ||||||||||||||||
Pre-tax losses related to interest rate derivatives reclassified from accumulated other comprehensive loss into earnings were $0.1 million for each of the years ended Dec. 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
During the year ended Dec. 31, 2014, changes in the fair value of natural gas commodity derivatives resulted in net gains of $0.1 million, recognized as regulatory assets and liabilities. During the years ended Dec. 31, 2013 and 2012, changes in the fair value of natural gas commodity derivatives resulted in net losses of $0.1 million and $0.4 million, respectively, recognized as regulatory assets and liabilities. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. | |||||||||||||||||||||||||
During the year ended Dec. 31, 2014, immaterial natural gas commodity derivatives settlement gains were recognized and losses totaling $0.7 million and $2.9 million were recognized for each of the years ended Dec. 31, 2013 and 2012, and were subject to purchased natural gas cost recovery mechanisms, which result in reclassifications of derivative settlement gains and losses out of income to a regulatory asset or liability, as appropriate. | |||||||||||||||||||||||||
NSP-Wisconsin had no derivative instruments designated as fair value hedges during the years ended Dec. 31, 2014, 2013 and 2012. Therefore, no gains or losses from fair value hedges or related hedged transactions were recognized for these periods. | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value | Fair Value | Counterparty | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | Netting (a) | Total (b) | |||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 52 | $ | — | $ | 52 | $ | — | $ | 52 | |||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | Counterparty | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | Netting (a) | Total (c) | |||||||||||||||||||
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 Dec. 31, 2014 and 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 other current assets balance of $6.9 million at Dec. 31, 2014 in the consolidated balance sheets. | ||||||||||||||||||||||||
(c) | Included in other current assets balance of $5.1 million at Dec. 31, 2013 in the consolidated balance sheets. | ||||||||||||||||||||||||
Fair Value of Long-Term Debt | |||||||||||||||||||||||||
As of Dec. 31, 2014 and 2013, other financial instruments for which the carrying amount did not equal fair value were as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Thousands of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt, including current portion | $ | 568,291 | $ | 670,665 | $ | 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 Dec. 31, 2014 and 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. |
Rate_Matters_Notes
Rate Matters (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Public Utilities, General Disclosures [Abstract] | |
Rate Matters | Rate Matters |
Recently Concluded Regulatory Proceedings — PSCW | |
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 was 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 were requested to the capital structure or the 10.2 percent 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. | |
In December 2014, the PSCW issued its order approving an overall increase in NSP-Wisconsin’s electric rates of approximately $14.2 million, or 2.2 percent, reflecting the updated November forecast for fuel and purchased power costs. The PSCW order was consistent with the agreement reached by the parties, as described above. The new rates were effective Jan. 1, 2015. | |
Pending Regulatory Proceedings - Michigan Public Service Commission (MPSC) | |
Michigan 2015 Electric Rate Case — In October 2014, NSP-Wisconsin filed a request with the MPSC to increase rates for electric service by $900,000, or 6.1 percent. The filing was based on a 2015 forecast test year, a 10.3 percent ROE, an equity ratio of 52.59 percent and a forecasted average rate base of approximately $35.2 million. The primary drivers of the requested increase are continuing investment in transmission and distribution infrastructure. The filing also included a request for a $289,000, or 1.9 percent, step increase in 2016, to reflect the expiration in 2016 of certain credits that were used to offset the 2015 rate request. In addition to the MPSC staff, intervenors in the case include the Michigan Attorney General and the Association of Businesses Advocating Tariff Equity, a voluntary association of large industrial businesses. Hearings are scheduled for April 2015. The parties have agreed to meet in February 2015 to discuss potential settlement of the case. | |
Pending Regulatory Proceedings — FERC | |
MISO ROE Complaint/ROE Adder — 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 argued 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 RTO membership and being an independent transmission company), effective Nov. 12, 2013. | |
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. | |
In October 2014, the FERC upheld the determination of the long-term growth rate to be used together with a short term growth rate in its new ROE methodology. The FERC separately set the ROE complaint against the MISO transmission owners for settlement judge and hearing procedures. The FERC directed parties to apply the new ROE methodology, but denied the complaints related to equity capital structures and ROE adders. The FERC established a Nov. 12, 2013 refund effective date. The settlement judge procedures were unsuccessful. FERC action is pending. In January 2015, the ROE complaint was set for full hearing procedures, with an ALJ initial decision to be issued by November 2015 and a FERC order issued no earlier than 2016. | |
In November 2014, the MISO transmission owners filed a request for FERC approval of a 50 basis point RTO membership ROE adder, with collection deferred until resolution of the ROE complaint. In January 2015, the FERC approved the ROE adder, subject to the outcome of the ROE complaint. The total ROE, including the RTO membership adder, may not exceed the top of the discounted cash flow range under the new ROE methodology. In 2015, several intervenors sought rehearing of the commission order. | |
In February 2015, a separate group of customers filed an additional complaint proposing to reduce the MISO region ROE to 8.67 percent, prior to any 50 basis point RTO adder, with a refund effective date of Feb. 12, 2015. Answers to the complaint are to be filed by March 2015. | |
NSP-Minnesota recorded a current liability representing the current best estimate of a refund obligation associated with the new ROE as of Dec. 31, 2014. The new FERC ROE methodology is estimated to reduce transmission revenue, net of expense, between $5 million and $7 million annually for the NSP System. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||||||||||||||
Commitments | |||||||||||||||||||||
Fuel Contracts — NSP-Wisconsin has entered into various long-term commitments for the purchase and delivery of a significant portion of its current coal and natural gas requirements. These contracts expire in various years between 2015 and 2029. In addition, NSP-Wisconsin is required to pay additional amounts depending on actual quantities shipped under these agreements. As NSP-Wisconsin does not have an automatic electric fuel adjustment clause for Wisconsin retail customers, NSP-Wisconsin utilizes deferred accounting treatment for future rate recovery or refund when fuel costs differ from the amount included in rates by more than two percent on an annual basis, as determined by the PSCW after an opportunity for a hearing and an earnings test based on NSP-Wisconsin’s authorized ROE. | |||||||||||||||||||||
The estimated minimum purchases for NSP-Wisconsin under these contracts as of Dec. 31, 2014 are as follows: | |||||||||||||||||||||
(Millions of dollars) | Coal | Natural gas | Natural gas | ||||||||||||||||||
supply | storage and | ||||||||||||||||||||
transportation | |||||||||||||||||||||
2015 | $ | 6.6 | $ | 12.4 | $ | 13.2 | |||||||||||||||
2016 | 0.8 | 0.3 | 13.1 | ||||||||||||||||||
2017 | 0.9 | 0.2 | 10.4 | ||||||||||||||||||
2018 | 0.8 | — | 4.7 | ||||||||||||||||||
2019 | 0.8 | — | 3.1 | ||||||||||||||||||
Thereafter | 3.3 | — | 13.5 | ||||||||||||||||||
Total (a) | $ | 13.2 | $ | 12.9 | $ | 58 | |||||||||||||||
(a) | Excludes additional amounts allocated to NSP-Wisconsin through intercompany charges. | ||||||||||||||||||||
Additional expenditures for fuel and natural gas storage and transportation will be required to meet expected future electric generation and natural gas needs. | |||||||||||||||||||||
Leases — NSP-Wisconsin leases a variety of equipment and facilities used in the normal course of business. These leases, primarily for office space, trucks, aircraft, cars and power-operated equipment, are accounted for as operating leases. Total expenses under operating lease obligations were approximately $1.3 million, $1.4 million and $1.1 million for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Future commitments under operating leases are: | |||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
2015 | $ | 0.9 | |||||||||||||||||||
2016 | 0.9 | ||||||||||||||||||||
2017 | 1 | ||||||||||||||||||||
2018 | 1 | ||||||||||||||||||||
2019 | 1 | ||||||||||||||||||||
Thereafter | 7.9 | ||||||||||||||||||||
Total | $ | 12.7 | |||||||||||||||||||
Variable Interest Entities — The accounting guidance for consolidation of variable interest entities requires enterprises to consider the activities that most significantly impact an entity’s financial performance, and power to direct those activities, when determining whether an enterprise is a variable interest entity’s primary beneficiary. | |||||||||||||||||||||
NSP-Wisconsin has entered into limited partnerships for the construction and operation of affordable rental housing developments which qualify for low-income housing tax credits. NSP-Wisconsin has determined the low-income housing limited partnerships to be variable interest entities primarily due to contractual arrangements within each limited partnership that establish sharing of ongoing voting control and profits and losses that does not consistently align with the partners’ proportional equity ownership. These limited partnerships are designed to qualify for low-income housing tax credits, and NSP-Wisconsin generally receives a larger allocation of the tax credits than the general partners at inception of the arrangements. NSP-Wisconsin has determined that it has the power to direct the activities that most significantly impact these entities’ economic performance, and therefore NSP-Wisconsin consolidates these limited partnerships in its consolidated financial statements. | |||||||||||||||||||||
Equity financing for these entities has been provided by NSP-Wisconsin and the general partner of each limited partnership, and NSP-Wisconsin’s risk of loss is limited to its capital contributions, adjusted for any distributions and its share of undistributed profits and losses; no significant additional financial support has been, or is in the future, required to be provided to the limited partnerships by NSP-Wisconsin. Mortgage-backed debt typically comprises the majority of the financing at inception of each limited partnership and is paid over the life of the limited partnership arrangement. Obligations of the limited partnerships are generally secured by the housing properties of each limited partnership, and the creditors of each limited partnership have no significant recourse to NSP-Wisconsin or its subsidiaries. Likewise, the assets of the limited partnerships may only be used to settle obligations of the limited partnerships, and not those of NSP-Wisconsin or its subsidiaries. | |||||||||||||||||||||
Amounts reflected in NSP-Wisconsin’s consolidated balance sheets for low-income housing limited partnerships include the following: | |||||||||||||||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Current assets | $ | 246 | $ | 223 | |||||||||||||||||
Property, plant and equipment, net | 2,278 | 2,427 | |||||||||||||||||||
Other noncurrent assets | 122 | 112 | |||||||||||||||||||
Total assets | $ | 2,646 | $ | 2,762 | |||||||||||||||||
Current liabilities | $ | 1,349 | $ | 233 | |||||||||||||||||
Mortgages and other long-term debt payable | 486 | 1,687 | |||||||||||||||||||
Other noncurrent liabilities | 48 | 42 | |||||||||||||||||||
Total liabilities | $ | 1,883 | $ | 1,962 | |||||||||||||||||
Joint Operating System — The electric production and transmission system of NSP-Wisconsin is managed as an integrated system with that of NSP-Minnesota, jointly referred to as the NSP System. The electric production and transmission costs of the entire NSP System are shared by NSP-Minnesota and NSP-Wisconsin. A FERC approved agreement between the two companies, called the Interchange Agreement, provides for the sharing of all costs of generation and transmission facilities of the system, including capital costs. Such costs include current and potential obligations of NSP-Minnesota related to its nuclear generating facilities. | |||||||||||||||||||||
NSP-Minnesota’s public liability for claims resulting from any nuclear incident is limited to $13.6 billion under the Price-Anderson amendment to the Atomic Energy Act. NSP-Minnesota has secured $375 million of coverage for its public liability exposure with a pool of insurance companies. The remaining $13.2 billion of exposure is funded by the Secondary Financial Protection Program, available from assessments by the federal government in case of a nuclear accident. NSP-Minnesota is subject to assessments of up to $127.3 million per reactor per accident for each of its three licensed reactors, to be applied for public liability arising from a nuclear incident at any licensed nuclear facility in the United States. The maximum funding requirement is $19.0 million per reactor during any one year. These maximum assessment amounts are both subject to inflation adjustment by the NRC and state premium taxes. The NRC’s last adjustment was effective September 2013. | |||||||||||||||||||||
NSP-Minnesota purchases insurance for property damage and site decontamination cleanup costs from Nuclear Electric Insurance Ltd. (NEIL). The coverage limits are $2.3 billion for each of NSP-Minnesota’s two nuclear plant sites. NEIL also provides business interruption insurance coverage, including the cost of replacement power obtained during certain prolonged accidental outages of nuclear generating units. Premiums are expensed over the policy term. All companies insured with NEIL are subject to retroactive premium adjustments if losses exceed accumulated reserve funds. Capital has been accumulated in the reserve funds of NEIL to the extent that NSP-Minnesota would have no exposure for retroactive premium assessments in case of a single incident under the business interruption and the property damage insurance coverage. However, in each calendar year, NSP-Minnesota could be subject to maximum assessments of approximately $17.9 million for business interruption insurance and $43.6 million for property damage insurance if losses exceed accumulated reserve funds. | |||||||||||||||||||||
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 the exposure of NSP-Wisconsin 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) | Guarantee | Current | Term or | Triggering | |||||||||||||||||
Amount | Exposure | Expiration Date | Event | ||||||||||||||||||
Guarantee of customer loans for the Farm Rewiring Program | $ | 1 | $ | 0.2 | 2018 | (a) | |||||||||||||||
(a) | The debtor becomes the subject of bankruptcy or other insolvency proceedings. | ||||||||||||||||||||
Environmental Contingencies | |||||||||||||||||||||
NSP-Wisconsin has been or is currently involved with the cleanup of contamination from certain hazardous substances at several sites. In many situations, NSP-Wisconsin believes it will recover some portion of these costs through insurance claims. Additionally, where applicable, NSP-Wisconsin is pursuing, or intends to pursue, recovery from other PRPs and through the regulated rate process. New and changing federal and state environmental mandates can also create added financial liabilities for NSP-Wisconsin, which are normally recovered through the regulated rate process. To the extent any costs are not recovered through the options listed above, NSP-Wisconsin would be required to recognize an expense. | |||||||||||||||||||||
Site Remediation — Various federal and state environmental laws impose liability, without regard to the legality of the original conduct, where hazardous substances or other regulated materials have been released to the environment. NSP-Wisconsin may sometimes pay all or a portion of the cost to remediate sites where past activities of NSP-Wisconsin or other parties have caused environmental contamination. Environmental contingencies could arise from various situations, including sites of former MGPs operated by NSP-Wisconsin, its predecessors, or other entities; and third-party sites, such as landfills, for which NSP-Wisconsin is alleged to be a PRP that sent hazardous materials and wastes to that site. | |||||||||||||||||||||
MGP Sites | |||||||||||||||||||||
Ashland MGP Site — NSP-Wisconsin has been named a 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 wood treating operations; and an area of Lake Superior’s Chequamegon Bay adjoining the park (the Sediments). | |||||||||||||||||||||
The 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. 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 WDNR, 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. 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 cost estimate for the cleanup of the Phase I Project Area is approximately $54 million, of which approximately $28 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. 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. It is NSP-Wisconsin’s view that 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. 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. In September 2014, the EPA granted an extension of time to perform the pilot in the summer of 2015. | |||||||||||||||||||||
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-May of 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. A settlement in principle has been reached with two PRPs, Wisconsin Central Ltd. and Soo Line Railroad Co. (collectively, the “Railroad PRPs”), the EPA and NSP-Wisconsin resolving claims relating to the Railroad PRPs’ share of the costs of cleanup at the Ashland site. Under the agreement, the Railroad PRPs have agreed to contribute $10.5 million to the costs of the cleanup at the Ashland site. The agreement is currently subject to a 30-day public comment period and must be entered by the U.S. District Court for the Western District of Wisconsin before it will become final. It is anticipated that the agreement will be entered in the first quarter of 2015. As discussed below, existing PSCW policy requires that any payments received from PRPs be used to reduce the amount of the cleanup costs ultimately recovered from customers. | |||||||||||||||||||||
At Dec. 31, 2014 and 2013, NSP-Wisconsin had recorded a liability of $107.6 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 $28.9 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. Under the established PSCW policy, 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. Any payments received from insurance carriers or PRPs are recorded as a reduction of the regulatory asset. Once deferred MGP remediation costs are determined by the PSCW to be prudent, utilities are allowed to recover those deferred costs in natural gas rates, typically over a four- to six-year amortization 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 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. | |||||||||||||||||||||
Other MGP Sites — NSP-Wisconsin is currently involved in investigating and/or remediating several other MGP sites where hazardous or other regulated materials may have been deposited. NSP-Wisconsin has identified two sites where former MGP activities have or may have resulted in site contamination and are under current investigation and/or remediation. At some or all of these MGP sites, there are other parties that may have responsibility for some portion of any remediation. NSP-Wisconsin anticipates that the majority of the remediation at these sites will continue through at least 2015. NSP-Wisconsin had accrued $0.2 million and $3.9 million for both of these sites at Dec. 31, 2014 and 2013, respectively. There may be insurance recovery and/or recovery from other PRPs that will offset any costs incurred. NSP-Wisconsin anticipates that any amounts spent will be fully recovered from customers. | |||||||||||||||||||||
Environmental Requirements | |||||||||||||||||||||
Water and Waste | |||||||||||||||||||||
Asbestos Removal — Some of NSP-Wisconsin’s facilities contain asbestos. Most asbestos will remain undisturbed until the facilities that contain it are demolished or removed. NSP-Wisconsin has recorded an estimate for final removal of the asbestos as an ARO. It may be necessary to remove some asbestos to perform maintenance or make improvements to other equipment. The cost of removing asbestos as part of other work is not expected to be material and is recorded as incurred as operating expenses for maintenance projects, capital expenditures for construction projects or removal costs for demolition projects. | |||||||||||||||||||||
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) — Section 316(b) of 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. The EPA published the final 316(b) rule in August 2014. The rule prescribes technology for protecting fish that get stuck on plant intake screens (known as impingement) and describes a process for site-specific determinations by each state for sites that must protect the small aquatic organisms that pass through the intake screens into the plant cooling systems (known as entrainment). The timing of compliance with the requirements will vary from plant-to-plant since the new rule does not have a final compliance deadline. Many of the compliance requirements depend on site-specific determinations by state regulators; therefore, the exact cost is somewhat uncertain. NSP-Wisconsin estimates the likely cost for complying with impingement requirements 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 second quarter of 2015. | |||||||||||||||||||||
Coal Ash Regulation — NSP-Wisconsin’s operations are subject to federal and state laws that impose requirements for handling, storage, treatment and disposal of solid waste. In 2010, the EPA published a proposed rule on the regulation of coal combustion byproducts (coal ash) as hazardous or nonhazardous waste. The EPA issued a pre-publication version of the final rule in December 2014, which once promulgated will impose new rules to regulate coal ash as a nonhazardous solid waste. NSP-Wisconsin has ceased coal combustion at Bay Front Unit 5 and will not have any units subject to coal ash regulation. Due to the Interchange Agreement, NSP-Wisconsin may incur costs related to this rule but does not expect these to have a material impact on the results of operations, financial position or cash flows. | |||||||||||||||||||||
Air | |||||||||||||||||||||
GHG Emission Standard for Existing Sources — In June 2014, the EPA published its proposed rule on GHG emission standards for existing power plants. Comments were due to the EPA on Dec. 1, 2014 and a final rule is anticipated in mid-summer 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 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. A final rule is anticipated in mid-summer 2015. 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. A final rule is anticipated in mid-summer 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 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. | |||||||||||||||||||||
CSAPR — CSAPR addresses long range transport of PM and ozone by requiring reductions in SO2 and NOx from utilities in the eastern half of the United States, including Wisconsin, using 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 CSAPR’s predecessor rule 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 CAA 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 October 2014, the D.C. Circuit granted the EPA’s request to begin to implement CSAPR by imposing its 2012 compliance obligations starting in January 2015. In addition, the D.C. Circuit set a briefing schedule and plans to hear arguments on the remaining issues in the case in February 2015. While the litigation continues, the EPA will begin to administer the CSAPR in 2015. | |||||||||||||||||||||
NSP-Wisconsin can operate within its CSAPR emission allowance allocation for SO2 due to cessation of coal combustion at Bay Front Unit 5. NSP-Wisconsin anticipates compliance with the CSAPR for NOx in 2015 through operational changes or allowance purchases. CSAPR compliance in 2015 is not expected to have a material impact on the results of operations, financial position or cash flows. | |||||||||||||||||||||
Electric Generating Unit (EGU) Mercury and Air Toxics Standards (MATS) Rule — The final EGU MATS rule became effective in April 2012. The EGU MATS rule sets emission limits for acid gases, mercury and other hazardous air pollutants and requires coal-fired utility facilities greater than 25 MW to demonstrate compliance within three to four years of the effective date. NSP-Wisconsin will not have any units subject to EGU MATS because it has ceased coal combustion in Bay Front Unit 5. In 2014, the U.S. Supreme Court decided to review the D.C. Circuit’s decision that upheld the MATS standard. It is not yet known what impact the Supreme Court’s decision may have on the MATS standard or its implementation schedule. | |||||||||||||||||||||
Industrial Boiler (IB) MACT Rules — In 2011, the EPA finalized IB MACT rules to regulate boilers and process heaters fueled with coal, biomass and liquid fuels, which would apply to NSP-Wisconsin’s Bay Front Units 1 and 2. The controls to meet the requirements were substantially complete as of Dec. 31, 2014, with final work targeted to be finished in May 2015. The final capital cost is estimated to be approximately $21 million. | |||||||||||||||||||||
Revisions to the National Ambient Air Quality Standards (NAAQS) for PM — In December 2012, the EPA lowered the primary health-based NAAQS for annual average fine PM and retained the current daily standard for fine PM. In areas where NSP-Wisconsin operates power plants, current monitored air concentrations are below the level of the final annual primary standard. In December 2014, the EPA issued its final designations, which did not include areas in any states in which NSP-Wisconsin operates. | |||||||||||||||||||||
Revisions to the NAAQS for Ozone — In December 2014, the EPA proposed to revise the NAAQS for ozone by lowering the eight-hour standard from 0.075 parts per million (ppm) to a level within the range of 0.065-0.070 ppm. The EPA is also taking comment on a level for the standard as low as 0.060 ppm. Current monitored air quality concentrations in areas of Wisconsin where NSP-Wisconsin operates are below the range of the proposed standard. The EPA is expected to adopt a new ozone standard in a final rule to be issued in October 2015. Depending on the level of the standard, impacted states would study the sources of the nonattainment and make emission reduction plans to attain the standards. These plans would be due to the EPA in 2020 or 2021. Such plans could include installation of further NOx controls on power plants. It is not possible to evaluate the impact of this proposal until the final standard is adopted, the designation of nonattainment areas is made in late 2017 based on air quality data years 2014-2016, and any required state plans are developed. | |||||||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||||||
Recorded AROs — AROs have been recorded for property related to the following: electric production (steam, other and hydro), electric distribution and transmission, natural gas distribution, and general property. The electric production obligations include asbestos, ash-containment facilities, storage tanks and control panels. The asbestos recognition associated with the electric production includes certain plants. This asbestos abatement removal obligation originated in 1973 with the CAA, which applied to the demolition of buildings or removal of equipment containing asbestos that can become airborne on removal. AROs also have been recorded for NSP-Wisconsin steam production related to ash-containment facilities such as bottom ash ponds, evaporation ponds and solid waste landfills. The origination dates on the ARO recognition for ash-containment facilities at steam plants were the in-service dates of the various facilities. | |||||||||||||||||||||
NSP-Wisconsin has recognized an ARO for the retirement costs of natural gas mains and lines and for the removal of electric transmission and distribution equipment, which consists of many small potential obligations associated with PCBs, mineral oil, storage tanks, treated poles, lithium batteries, mercury and street lighting lamps. The electric and common general AROs include small obligations related to storage tanks and office buildings. These assets have numerous in-service dates for which it is difficult to assign the obligation to a particular year. Therefore, the obligation was measured using an average service life. | |||||||||||||||||||||
In December 2014, the EPA issued a pre-publication version of a final rule imposing requirements for activities involving coal ash waste. The ruling, once effective, will not result in the creation of a new legal obligation or impact NSP-Wisconsin’s estimated cash flows for the closure of coal ash landfills and impoundments. | |||||||||||||||||||||
A reconciliation of NSP-Wisconsin’s AROs for the years ended Dec. 31, 2014 and 2013 is as follows: | |||||||||||||||||||||
(Thousands of Dollars) | Beginning Balance | Liabilities Recognized | Accretion | Cash Flow Revisions | Ending Balance | ||||||||||||||||
Jan. 1, 2014 | Dec. 31, 2014 (a) | ||||||||||||||||||||
Electric plant | |||||||||||||||||||||
Steam production asbestos | $ | 2,005 | $ | — | $ | 44 | $ | — | $ | 2,049 | |||||||||||
Steam and other production ash containment | 361 | — | 13 | — | 374 | ||||||||||||||||
Electric distribution | 36 | — | 1 | — | 37 | ||||||||||||||||
Other | 289 | 113 | 10 | — | 412 | ||||||||||||||||
Natural gas plant | |||||||||||||||||||||
Gas distribution | 75 | 402 | 5 | 5,645 | 6,127 | ||||||||||||||||
Common and other property | |||||||||||||||||||||
Common miscellaneous | 87 | — | 3 | 1 | 91 | ||||||||||||||||
Total liability (b) | $ | 2,853 | $ | 515 | $ | 76 | $ | 5,646 | $ | 9,090 | |||||||||||
(Thousands of Dollars) | Beginning Balance | Liabilities Recognized | Accretion | Cash Flow Revisions | Ending Balance | ||||||||||||||||
Jan. 1, 2013 | Dec. 31, 2013 (a) | ||||||||||||||||||||
Electric plant | |||||||||||||||||||||
Steam production asbestos | $ | 1,962 | $ | — | $ | 43 | $ | — | $ | 2,005 | |||||||||||
Steam and other production ash containment | 125 | — | 12 | 224 | 361 | ||||||||||||||||
Electric distribution | 13 | — | 1 | 22 | 36 | ||||||||||||||||
Other | 826 | — | 20 | (557 | ) | 289 | |||||||||||||||
Natural gas plant | |||||||||||||||||||||
Gas distribution | 75 | — | 5 | (5 | ) | 75 | |||||||||||||||
Common and other property | |||||||||||||||||||||
Common miscellaneous | 35 | — | 3 | 49 | 87 | ||||||||||||||||
Total liability (b) | $ | 3,036 | $ | — | $ | 84 | $ | (267 | ) | $ | 2,853 | ||||||||||
(a) | There were no ARO liabilities settled during the years ended Dec. 31, 2014 or 2013. | ||||||||||||||||||||
(b) | Included in the other long-term liabilities balance in the consolidated balance sheets. | ||||||||||||||||||||
Removal Costs — NSP-Wisconsin records a regulatory liability for the plant removal costs of generation, transmission and distribution facilities that are recovered currently in rates. Generally, the accrual of future non-ARO removal obligations is not required. However, long-standing ratemaking practices approved by applicable state and federal regulatory commissions have allowed provisions for such costs in historical depreciation rates. These removal costs have accumulated over a number of years based on varying rates as authorized by the appropriate regulatory entities. Given the long time periods over which the amounts were accrued and the changing of rates over time, NSP-Wisconsin has estimated the amount of removal costs accumulated through historic depreciation expense based on current factors used in the existing depreciation rates. Accordingly, the recorded amounts of estimated future removal costs are considered regulatory liabilities. Removal costs as of Dec. 31, 2014 and 2013 were $123 million and $116 million, respectively. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Other Contingencies | |||||||||||||||||||||
See Note 10 for further discussion. |
Regulatory_Assets_and_Liabilit
Regulatory Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities | ||||||||||||||||||||
NSP-Wisconsin’s consolidated financial statements are prepared in accordance with the applicable accounting guidance, as discussed in Note 1. Under this guidance, regulatory assets and liabilities are created for amounts that regulators may allow to be collected, or may require to be paid back to customers in future electric and natural gas rates. Any portion of the business that is not rate regulated cannot establish regulatory assets and liabilities. If changes in the utility industry or the business of NSP-Wisconsin no longer allow for the application of regulatory accounting guidance under GAAP, NSP-Wisconsin would be required to recognize the write-off of regulatory assets and liabilities in net income or OCI. | |||||||||||||||||||||
The components of regulatory assets shown on the consolidated balance sheets of NSP-Wisconsin at Dec. 31, 2014 and 2013 are: | |||||||||||||||||||||
(Thousands of Dollars) | See Note(s) | Remaining | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Amortization Period | |||||||||||||||||||||
Regulatory Assets | Current | Noncurrent | Current | Noncurrent | |||||||||||||||||
Environmental remediation costs | 1, 11 | Various | $ | 4,376 | $ | 147,793 | $ | 4,376 | $ | 117,684 | |||||||||||
Pension and retiree medical obligations (a) | 7 | Various | 6,837 | 91,601 | 8,202 | 85,220 | |||||||||||||||
Recoverable deferred taxes on AFUDC recorded in plant | 1 | Plant lives | — | 16,711 | — | 12,679 | |||||||||||||||
Losses on reacquired debt | 4 | Term of related debt | 801 | 4,936 | 801 | 5,737 | |||||||||||||||
State commission adjustments | 1 | Plant lives | 488 | 11,650 | 410 | 9,355 | |||||||||||||||
Conservation programs | 1 | Less than one year | — | — | 404 | — | |||||||||||||||
Deferred income tax adjustment | 1, 6 | Typically plant lives | — | 1,514 | — | 1,763 | |||||||||||||||
Recoverable purchased natural gas and electric energy costs | Less than one year | 6,946 | — | 673 | — | ||||||||||||||||
Monticello EPU | Pending rate cases | — | 5,237 | — | — | ||||||||||||||||
Other | Various | 588 | 1,251 | — | 755 | ||||||||||||||||
Total regulatory assets | $ | 20,036 | $ | 280,693 | $ | 14,866 | $ | 233,193 | |||||||||||||
(a) | Includes the non-qualified pension plan. | ||||||||||||||||||||
The components of regulatory liabilities shown on the consolidated balance sheets of NSP-Wisconsin at Dec. 31, 2014 and 2013 are: | |||||||||||||||||||||
(Thousands of Dollars) | See Note(s) | Remaining | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Amortization Period | |||||||||||||||||||||
Regulatory Liabilities | Current | Noncurrent | Current | Noncurrent | |||||||||||||||||
Plant removal costs | 11 | Plant lives | $ | — | $ | 123,105 | $ | — | $ | 116,293 | |||||||||||
DOE settlement | 11 | Less than one year | 4,931 | — | 6,814 | — | |||||||||||||||
Investment tax credit deferrals | 1, 6 | Various | — | 9,397 | — | 9,976 | |||||||||||||||
Conservation programs | 1 | Less than one year | 1,010 | — | 1,187 | — | |||||||||||||||
Deferred electric production and natural gas costs | 1 | Less than one year | — | — | 1,542 | — | |||||||||||||||
Excess depreciation reserve | Various | 10,999 | — | — | — | ||||||||||||||||
Other | Various | — | 172 | 174 | 155 | ||||||||||||||||
Total regulatory liabilities | $ | 16,940 | $ | 132,674 | $ | 9,717 | $ | 126,424 | |||||||||||||
At Dec. 31, 2014 and 2013, approximately $12.1 million and $0.1 million of NSP-Wisconsin’s regulatory assets represented past expenditures not currently earning a return, respectively. This amount primarily includes Monticello EPU costs and recoverable purchased natural gas and electric energy costs. |
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||
Other Comprehensive Income | Other Comprehensive Income | |||||||||
Changes in accumulated other comprehensive loss, net of tax, for the years ended Dec. 31, 2014 and 2013 were as follows: | ||||||||||
Gains and Losses on Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Year Ended Dec. 31, 2014 | Year Ended Dec. 31, 2013 | ||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (361 | ) | $ | (437 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 76 | 76 | ||||||||
Net current period OCI | 76 | 76 | ||||||||
Accumulated other comprehensive loss at Dec. 31 | $ | (285 | ) | $ | (361 | ) | ||||
Reclassifications from accumulated other comprehensive loss for the years ended Dec. 31, 2014 and 2013 were as follows: | ||||||||||
Amounts Reclassified from Accumulated | ||||||||||
Other Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Year Ended Dec. 31, 2014 | Year Ended Dec. 31, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 127 | (a) | $ | 127 | (a) | ||||
Total, pre-tax | 127 | 127 | ||||||||
Tax benefit | (51 | ) | (51 | ) | ||||||
Total amounts reclassified, net of tax | $ | 76 | $ | 76 | ||||||
(a) | Included in interest charges. |
Segments_and_Related_Informati
Segments and Related Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Information | Segments and Related Information | ||||||||||||||||||||
Operating results from the regulated electric utility and regulated natural gas utility are each separately and regularly reviewed by NSP-Wisconsin’s chief operating decision maker. NSP-Wisconsin evaluates performance based on profit or loss generated from the product or service provided. These segments are managed separately because the revenue streams are dependent upon regulated rate recovery, which is separately determined for each segment. | |||||||||||||||||||||
NSP-Wisconsin has the following reportable segments: regulated electric utility, regulated natural gas utility and all other. | |||||||||||||||||||||
• | NSP-Wisconsin’s regulated electric utility segment generates electricity which is transmitted and distributed in Wisconsin and Michigan. | ||||||||||||||||||||
• | NSP-Wisconsin’s regulated natural gas utility segment purchases, transports, stores and distributes natural gas in portions of Wisconsin and Michigan. | ||||||||||||||||||||
• | Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the all other category. Those primarily include investments in rental housing projects that qualify for low-income housing tax credits. | ||||||||||||||||||||
Asset and capital expenditure information is not provided for NSP-Wisconsin’s reportable segments because as an integrated electric and natural gas utility, NSP-Wisconsin operates significant assets that are not dedicated to a specific business segment, and reporting assets and capital expenditures by business segment would require arbitrary and potentially misleading allocations which may not necessarily reflect the assets that would be required for the operation of the business segments on a stand-alone basis. | |||||||||||||||||||||
To report income from operations for regulated electric and regulated natural gas utility segments, the majority of costs are directly assigned to each segment. However, some costs, such as common depreciation, common O&M expenses and interest expense are allocated based on cost causation allocators. A general allocator is used for certain general and administrative expenses, including office supplies, rent, property insurance and general advertising. | |||||||||||||||||||||
The accounting policies of the segments are the same as those described in Note 1. | |||||||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All Other | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Eliminations | Total | ||||||||||||||||||
2014 | |||||||||||||||||||||
Operating revenues (a) | $ | 829,748 | $ | 169,629 | $ | 1,085 | $ | — | $ | 1,000,462 | |||||||||||
Intersegment revenues | 497 | 4,885 | — | (5,382 | ) | — | |||||||||||||||
Total revenues | $ | 830,245 | $ | 174,514 | $ | 1,085 | $ | (5,382 | ) | $ | 1,000,462 | ||||||||||
Depreciation and amortization | $ | 65,978 | $ | 13,501 | $ | 175 | $ | — | $ | 79,654 | |||||||||||
Interest charges and financing costs | 23,448 | 2,358 | 107 | — | 25,913 | ||||||||||||||||
Income tax expense (benefit) | 39,621 | 5,993 | (3,211 | ) | — | 42,403 | |||||||||||||||
Net Income | 59,060 | 8,714 | 2,868 | — | 70,642 | ||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All Other | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Eliminations | Total | ||||||||||||||||||
2013 | |||||||||||||||||||||
Operating revenues (a) | $ | 789,168 | $ | 132,867 | $ | 1,003 | $ | — | $ | 923,038 | |||||||||||
Intersegment revenues | 350 | 1,967 | — | (2,317 | ) | — | |||||||||||||||
Total revenues | $ | 789,518 | $ | 134,834 | $ | 1,003 | $ | (2,317 | ) | $ | 923,038 | ||||||||||
Depreciation and amortization | $ | 64,237 | $ | 12,485 | $ | 175 | $ | — | $ | 76,897 | |||||||||||
Interest charges and financing costs | 22,966 | 2,749 | 101 | — | 25,816 | ||||||||||||||||
Income tax expense (benefit) | 33,691 | 4,623 | (1,905 | ) | — | 36,409 | |||||||||||||||
Net Income | 51,334 | 6,501 | 1,633 | — | 59,468 | ||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All Other | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Eliminations | Total | ||||||||||||||||||
2012 | |||||||||||||||||||||
Operating revenues (a) | $ | 757,565 | $ | 103,100 | $ | 1,177 | $ | — | $ | 861,842 | |||||||||||
Intersegment revenues | 355 | 727 | — | (1,082 | ) | — | |||||||||||||||
Total revenues | $ | 757,920 | $ | 103,827 | $ | 1,177 | $ | (1,082 | ) | $ | 861,842 | ||||||||||
Depreciation and amortization | $ | 59,768 | $ | 9,251 | $ | 215 | $ | — | $ | 69,234 | |||||||||||
Interest charges and financing costs | 20,303 | 2,554 | 80 | — | 22,937 | ||||||||||||||||
Income tax expense | 27,164 | 2,113 | 281 | — | 29,558 | ||||||||||||||||
Net Income | 45,377 | 3,094 | 1,480 | — | 49,951 | ||||||||||||||||
(a) | Operating revenues include $145 million, $137 million and $125 million of intercompany revenue for the years ended Dec. 31, 2014, 2013 and 2012 respectively. See Note 15 for further discussion of related party transactions by operating segment. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||
Related Party Transactions | Related Party Transactions | ||||||||||||||||
Xcel Energy Services Inc. provides management, administrative and other services for the subsidiaries of Xcel Energy Inc., including NSP-Wisconsin. The services are provided and billed to each subsidiary in accordance with service agreements executed by each subsidiary. NSP-Wisconsin uses services provided by Xcel Energy Services Inc. whenever possible. Costs are charged directly to the subsidiary and are allocated if they cannot be directly assigned. | |||||||||||||||||
The electric production and transmission costs of the entire NSP System are shared by NSP-Minnesota and NSP-Wisconsin. The Interchange Agreement provides for the sharing of all costs of generation and transmission facilities of the system, including capital costs. | |||||||||||||||||
The table below contains significant affiliate transactions among the companies and related parties including billings under the Interchange Agreement for the years ended Dec. 31: | |||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Operating revenues: | |||||||||||||||||
Electric | $ | 145,102 | $ | 136,917 | $ | 125,344 | |||||||||||
Operating expenses: | |||||||||||||||||
Purchased power (a) | 430,666 | 416,173 | 405,016 | ||||||||||||||
Transmission expense | 43,876 | 42,460 | 44,942 | ||||||||||||||
Natural gas purchased for resale | 90 | 97 | 116 | ||||||||||||||
Other operating expenses — paid to Xcel Energy Services Inc. | 84,224 | 61,531 | 54,137 | ||||||||||||||
Interest expense | 30 | 22 | 22 | ||||||||||||||
(a) | Pursuant to orders issued by the PSCW in December 2013 and February 2014, the 2014 amounts do not reflect $5.2 million of purchased power expenses deferred as a regulatory asset and $11.0 million of transmission costs deferred as a regulatory liability billed to NSP-Wisconsin through the Interchange Agreement from NSP-Minnesota. | ||||||||||||||||
Accounts receivable and payable with affiliates at Dec. 31 were: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Thousands of Dollars) | Accounts | Accounts | Accounts | Accounts | |||||||||||||
Receivable | Payable | Receivable | Payable | ||||||||||||||
NSP-Minnesota | $ | — | $ | 17,333 | $ | — | $ | 18,584 | |||||||||
PSCo | — | 22 | — | 8 | |||||||||||||
SPS | 31 | — | 26 | — | |||||||||||||
Other subsidiaries of Xcel Energy Inc. | — | 9,169 | 1,569 | 6,394 | |||||||||||||
$ | 31 | $ | 26,524 | $ | 1,595 | $ | 24,986 | ||||||||||
Schedule_II_Valuation_and_Qual
Schedule II, Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule II, Valuation and Qualifying Accounts | NSP-WISCONSIN AND SUBSIDIARIES | |||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
YEARS ENDED DEC. 31, 2014, 2013 AND 2012 | ||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to Costs and Expenses | Charged to Other | Deductions from | Balance at | ||||||||||||||||
Jan. 1 | Accounts(a) | Reserves(b) | Dec. 31 | |||||||||||||||||
Allowance for bad debts: | ||||||||||||||||||||
2014 | $ | 4,911 | $ | 4,431 | $ | 1,269 | $ | 4,790 | $ | 5,821 | ||||||||||
2013 | 4,333 | 3,988 | 1,199 | 4,609 | 4,911 | |||||||||||||||
2012 | 4,766 | 3,329 | 1,310 | 5,072 | 4,333 | |||||||||||||||
(a) | Recovery of amounts previously written off. | |||||||||||||||||||
(b) | Principally bad debts written off. |
Summarized_Quarterly_Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summarized Quarterly Financial Data (Unaudited) | Summarized Quarterly Financial Data (Unaudited) | ||||||||||||||||
Quarter Ended | |||||||||||||||||
(Thousands of Dollars) | March 31, 2014 | June 30, 2014 | Sept. 30, 2014 | Dec. 31, 2014 | |||||||||||||
Operating revenues | $ | 285,142 | $ | 228,114 | $ | 231,046 | $ | 256,160 | |||||||||
Operating income | 42,571 | 23,730 | 37,540 | 27,787 | |||||||||||||
Net income | 24,235 | 12,022 | 20,030 | 14,355 | |||||||||||||
Quarter Ended | |||||||||||||||||
(Thousands of Dollars) | March 31, 2013 | June 30, 2013 | Sept. 30, 2013 | Dec. 31, 2013 | |||||||||||||
Operating revenues | $ | 241,415 | $ | 210,175 | $ | 231,060 | $ | 240,388 | |||||||||
Operating income | 37,401 | 22,466 | 40,769 | 16,545 | |||||||||||||
Net income | 19,685 | 10,544 | 22,013 | 7,225 | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Business and System of Accounts | Business and System of Accounts — NSP-Wisconsin is engaged in the regulated generation, transmission, distribution and sale of electricity and in the regulated purchase, transportation, distribution and sale of natural gas. NSP-Wisconsin’s consolidated financial statements and disclosures are presented in accordance with GAAP. All of NSP-Wisconsin’s underlying accounting records also conform to the FERC uniform system of accounts or to systems required by various state regulatory commissions, which are the same in all material respects. | |
Principles of Consolidation | Principles of Consolidation — NSP-Wisconsin’s consolidated financial statements include its wholly-owned subsidiaries and variable interest entities for which it is the primary beneficiary. In the consolidation process, all intercompany transactions and balances are eliminated. | |
NSP-Wisconsin evaluates its arrangements and contracts with other entities to determine if the other party is a variable interest entity, if NSP-Wisconsin has a variable interest and if NSP-Wisconsin is the primary beneficiary. NSP-Wisconsin follows accounting guidance for variable interest entities which requires consideration of the activities that most significantly impact an entity’s financial performance and power to direct those activities, when determining whether NSP-Wisconsin is a variable interest entity’s primary beneficiary. See Note 11 for further discussion of variable interest entities. | ||
Use of Estimates | Use of Estimates — In recording transactions and balances resulting from business operations, NSP-Wisconsin uses estimates based on the best information available. Estimates are used for such items as plant depreciable lives or potential disallowances, AROs, certain regulatory assets and liabilities, tax provisions, uncollectible amounts, environmental costs, unbilled revenues, jurisdictional fuel and energy cost allocations and actuarially determined benefit costs. The recorded estimates are revised when better information becomes available or when actual amounts can be determined. Those revisions can affect operating results. | |
Regulatory Accounting | Regulatory Accounting — NSP-Wisconsin accounts for certain income and expense items in accordance with accounting guidance for regulated operations. Under this guidance: | |
• | Certain costs, which would otherwise be charged to expense or OCI, are deferred as regulatory assets based on the expected ability to recover the costs in future rates; and | |
• | Certain credits, which would otherwise be reflected as income, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates, or because the amounts were collected in rates prior to the costs being incurred. | |
Estimates of recovering deferred costs and returning deferred credits are based on specific ratemaking decisions or precedent for each item. Regulatory assets and liabilities are amortized consistent with the treatment in the rate setting process. | ||
If restructuring or other changes in the regulatory environment occur, NSP-Wisconsin may no longer be eligible to apply this accounting treatment, and may be required to eliminate regulatory assets and liabilities from its balance sheet. Such changes could have a material effect on NSP-Wisconsin’s financial condition, results of operations and cash flows. See Note 12 for further discussion of regulatory assets and liabilities. | ||
Revenue Recognition | Revenue Recognition — Revenues related to the sale of energy are generally recorded when service is rendered or energy is delivered to customers. However, the determination of the energy sales to individual customers is based on the reading of their meter, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is recognized. NSP-Wisconsin presents its revenues net of any excise or other fiduciary-type taxes or fees. | |
NSP-Wisconsin has various rate-adjustment mechanisms in place that provide for the recovery of purchased natural gas costs. These cost-adjustment tariffs may increase or decrease the level of revenue collected from customers and are revised periodically, for differences between the total amount collected under the clauses and the costs incurred. When applicable, under governing regulatory commission rate orders, fuel cost over-recoveries (the excess of fuel revenue billed to customers over fuel costs incurred) are deferred as regulatory liabilities and under-recoveries (the excess of fuel costs incurred over fuel revenues billed to customers) are deferred as regulatory assets. | ||
Conservation Programs | Conservation Programs — NSP-Wisconsin participates in and funds conservation programs in its retail jurisdictions to assist customers in conserving energy and reducing peak demand on the electric and natural gas systems. NSP-Wisconsin recovers approved conservation program costs in base rate revenue. | |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation — Property, plant and equipment is stated at original cost. The cost of plant includes direct labor and materials, contracted work, overhead costs and AFUDC. The cost of plant retired is charged to accumulated depreciation and amortization. Amounts recovered in rates for future removal costs are recorded as regulatory liabilities. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance costs are charged to expense as incurred. Maintenance and replacement of items determined to be less than a unit of property are charged to operating expenses as incurred. Planned major maintenance activities are charged to operating expense unless the cost represents the acquisition of an additional unit of property or the replacement of an existing unit of property. Property, plant and equipment also includes costs associated with property held for future use. The depreciable lives of certain plant assets are reviewed annually and revised, if appropriate. Property, plant and equipment that is required to be decommissioned early by a regulator is reclassified as plant to be retired. | |
Property, plant and equipment is tested for impairment when it is determined that the carrying value of the assets may not be recoverable. A loss is recognized in the current period if it becomes probable that part of a cost of a plant under construction or recently completed plant will be disallowed for recovery from customers and a reasonable estimate of the disallowance can be made. For investments in property, plant and equipment that are abandoned and not expected to go into service, incurred costs and related deferred tax amounts are compared to the discounted estimated future rate recovery, and a loss is recognized, if necessary. | ||
NSP-Wisconsin records depreciation expense related to its plant using the straight-line method over the plant’s useful life. Actuarial life studies are performed and submitted to the state and federal commissions for review. Upon acceptance by the various commissions, the resulting lives and net salvage rates are used to calculate depreciation. Depreciation expense, expressed as a percentage of average depreciable property, was approximately 3.3, 3.5 and 3.5 percent for the years ended Dec. 31, 2014, 2013 and 2012, respectively. | ||
Leases | Leases — NSP-Wisconsin evaluates a variety of contracts for lease classification at inception, including rental arrangements for office space, vehicles and equipment. Contracts determined to contain a lease because of per unit pricing that is other than fixed or market price, terms regarding the use of a particular asset, and other factors are evaluated further to determine if the arrangement is a capital lease. See Note 11 for further discussion of leases. | |
AFUDC | AFUDC — AFUDC represents the cost of capital used to finance utility construction activity. AFUDC is computed by applying a composite financing rate to qualified CWIP. The amount of AFUDC capitalized as a utility construction cost is credited to other nonoperating income (for equity capital) and interest charges (for debt capital). AFUDC amounts capitalized are included in NSP-Wisconsin’s rate base for establishing utility service rates. | |
Generally, AFUDC costs are recovered from customers as the related property is depreciated. However, in some cases, the PSCW has allowed an AFUDC calculation greater than the FERC-defined AFUDC rate, resulting in higher recognition of AFUDC. | ||
Asset Retirement Obligations | AROs — | |
Income Taxes | Income Taxes — NSP-Wisconsin accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. NSP-Wisconsin defers income taxes for all temporary differences between pretax financial and taxable income, and between the book and tax bases of assets and liabilities. NSP-Wisconsin uses the tax rates that are scheduled to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. In making such a determination, all available evidence is considered, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. | ||
Due to the effects of past regulatory practices, when deferred taxes were not required to be recorded due to the use of flow through accounting for ratemaking purposes, the reversal of some temporary differences are accounted for as current income tax expense. Investment tax credits are deferred and their benefits amortized over the book depreciable lives of the related property. Utility rate regulation also has resulted in the recognition of certain regulatory assets and liabilities related to income taxes, which are summarized in Note 12. | ||
NSP-Wisconsin follows the applicable accounting guidance to measure and disclose uncertain tax positions that it has taken or expects to take in its income tax returns. NSP-Wisconsin recognizes a tax position in its consolidated financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. Recognition of changes in uncertain tax positions are reflected as a component of income tax. | ||
NSP-Wisconsin reports interest and penalties related to income taxes within the other income and interest charges sections in the consolidated statements of income. | ||
Xcel Energy Inc. and its subsidiaries, including NSP-Wisconsin, file consolidated federal income tax returns as well as combined or separate state income tax returns. Federal income taxes paid by Xcel Energy Inc. are allocated to Xcel Energy Inc.’s subsidiaries based on separate company computations of tax. A similar allocation is made for state income taxes paid by Xcel Energy Inc. in connection with combined state filings. Xcel Energy Inc. also allocates its own income tax benefits to its direct subsidiaries which are recorded directly in equity by the subsidiaries based on the relative positive tax liabilities of the subsidiaries. | ||
See Note 6 for further discussion of income taxes. | ||
Types of and Accounting for Derivative Instruments | Types of and Accounting for Derivative Instruments — NSP-Wisconsin uses derivative instruments in connection with its utility commodity price and interest rate activities, including forward contracts, futures, swaps and options. All derivative instruments not designated and qualifying for the normal purchases and normal sales exception, as defined by the accounting guidance for derivatives and hedging, are recorded on the consolidated balance sheets at fair value as derivative instruments. This includes certain instruments used to mitigate market risk for the utility operations. The classification of changes in fair value for those derivative instruments is dependent on the designation of a qualifying hedging relationship. Changes in fair value of derivative instruments not designated in a qualifying hedging relationship are reflected in current earnings or as a regulatory asset or liability. The classification as a regulatory asset or liability is based on commission approved regulatory recovery mechanisms. | |
Interest rate hedging transactions are recorded as a component of interest expense. NSP-Wisconsin is allowed to recover in electric or natural gas rates the costs of certain financial instruments purchased to reduce commodity cost volatility. For further information on derivatives entered to mitigate commodity price risk on behalf of electric and natural gas customers, see Note 9. | ||
Cash Flow Hedges — Certain qualifying hedging relationships are designated as a hedge of a forecasted transaction or future cash flow (cash flow hedge). Changes in the fair value of a derivative designated as a cash flow hedge, to the extent effective, are included in OCI, or deferred as a regulatory asset or liability based on recovery mechanisms until earnings are affected by the hedged transaction. | ||
Normal Purchases and Normal Sales — NSP-Wisconsin enters into contracts for the purchase and sale of commodities for use in its business operations. Derivatives and hedging accounting guidance requires a company to evaluate these contracts to determine whether the contracts are derivatives. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting if designated as normal purchases or normal sales. | ||
NSP-Wisconsin evaluates all of its contracts at inception to determine if they are derivatives and if they meet the normal purchases and normal sales designation requirements. See Note 9 for further discussion of NSP-Wisconsin’s risk management and derivative activities. | ||
Fair Value Measurements | Fair Value Measurements — NSP-Wisconsin presents cash equivalents, interest rate derivatives and commodity derivatives at estimated fair values in its consolidated financial statements. Cash equivalents are recorded at cost plus accrued interest; money market funds are measured using quoted net asset values. For interest rate derivatives, quoted prices based primarily on observable market interest rate curves are used as a primary input to establish fair value. For commodity derivatives, the most observable inputs available are generally used to determine the fair value of each contract. In the absence of a quoted price for an identical contract in an active market, NSP-Wisconsin may use quoted prices for similar contracts, or internally prepared valuation models to determine fair value. See Note 9 for further discussion. | |
Cash and Cash Equivalents | Cash and Cash Equivalents — NSP-Wisconsin considers investments in certain instruments, including commercial paper and money market funds, with a remaining maturity of three months or less at the time of purchase, to be cash equivalents. | |
Accounts Receivable and Allowance for Bad Debts | Accounts Receivable and Allowance for Bad Debts — Accounts receivable are stated at the actual billed amount net of an allowance for bad debts. NSP-Wisconsin establishes an allowance for uncollectible receivables based on a policy that reflects its expected exposure to the credit risk of customers. | |
Inventory | Inventory — All inventory is recorded at average cost. | |
Renewable Energy Credits | RECs — RECs are marketable environmental instruments that represent proof that energy was generated from eligible renewable energy sources. RECs are awarded upon delivery of the associated energy and can be bought and sold. RECs are typically used as a form of measurement of compliance to RPS enacted by those states that are encouraging construction and consumption from renewable energy sources, but can also be sold separately from the energy produced. NSP-Wisconsin acquires RECs from the generation or purchase of renewable power. | |
When RECs are purchased or acquired in the course of generation they are recorded as inventory at cost. The cost of RECs that are utilized for compliance purposes is recorded as electric fuel and purchased power expense. | ||
Sales of RECs that are purchased or acquired in the course of generation are recorded in electric utility operating revenues on a gross basis. The cost of these RECs and related transaction costs are recorded in electric fuel and purchased power expense. | ||
Emission Allowances | Emission Allowances — Emission allowances, including the annual SO2 and NOx emission allowance entitlement received from the EPA, are recorded at cost plus associated broker commission fees. NSP-Wisconsin follows the inventory accounting model for all emission allowances. Sales of emission allowances are included in electric utility operating revenues and the operating activities section of the consolidated statements of cash flows. | |
Environmental Costs | Environmental Costs — Environmental costs are recorded when it is probable NSP-Wisconsin is liable for remediation costs and the liability can be reasonably estimated. Costs are deferred as a regulatory asset if it is probable that the costs will be recovered from customers in future rates. Otherwise, the costs are expensed. If an environmental expense is related to facilities currently in use, such as emission-control equipment, the cost is capitalized and depreciated over the life of the plant. | |
Estimated remediation costs, excluding inflationary increases, are recorded. The estimates are based on experience, an assessment of the current situation and the technology currently available for use in the remediation. The recorded costs are regularly adjusted as estimates are revised and remediation proceeds. If other participating PRPs exist and acknowledge their potential involvement with a site, costs are estimated and recorded only for NSP-Wisconsin’s expected share of the cost. Any future costs of restoring sites where operation may extend indefinitely are treated as a capitalized cost of plant retirement. The depreciation expense levels recoverable in rates include a provision for removal expenses, which may include final remediation costs. Removal costs recovered in rates before the related costs are incurred are classified as a regulatory liability. | ||
See Note 11 for further discussion of environmental costs. | ||
Benefit Plans and Other Postretirement Benefits | Benefit Plans and Other Postretirement Benefits — NSP-Wisconsin maintains pension and postretirement benefit plans for eligible employees. Recognizing the cost of providing benefits and measuring the projected benefit obligation of these plans under applicable accounting guidance requires management to make various assumptions and estimates. | |
Based on regulatory recovery mechanisms, certain unrecognized actuarial gains and losses and unrecognized prior service costs or credits are recorded as regulatory assets and liabilities, rather than OCI. | ||
See Note 7 for further discussion of benefit plans and other postretirement benefits. | ||
Guarantees | Guarantees — NSP-Wisconsin recognizes, upon issuance or modification of a guarantee, a liability for the fair market value of the obligation that has been assumed in issuing the guarantee. This liability includes consideration of specific triggering events and other conditions which may modify the ongoing obligation to perform under the guarantee. | |
The obligation recognized is reduced over the term of the guarantee as NSP-Wisconsin is released from risk under the guarantee. See Note 11 for specific details of issued guarantees. | ||
Subsequent Events | Subsequent Events — Management has evaluated the impact of events occurring after Dec. 31, 2014 up to the date of issuance of these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that evaluation. |
Selected_Balance_Sheet_Data_Ta
Selected Balance Sheet Data (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Accounts Receivable, Net | |||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Accounts receivable, net (a) | |||||||||
Accounts receivable | 66,217 | 64,180 | |||||||
Less allowance for bad debts | (5,821 | ) | (4,911 | ) | |||||
60,396 | 59,269 | ||||||||
Inventories | |||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Inventories | |||||||||
Materials and supplies | $ | 6,494 | $ | 6,437 | |||||
Fuel | 6,654 | 5,915 | |||||||
Natural gas | 11,537 | 9,123 | |||||||
$ | 24,685 | $ | 21,475 | ||||||
Property, Plant and Equipment, Net | |||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Property, plant and equipment, net | |||||||||
Electric plant | $ | 2,061,669 | $ | 1,913,354 | |||||
Natural gas plant | 255,465 | 236,047 | |||||||
Common and other property | 125,938 | 112,886 | |||||||
CWIP | 231,413 | 127,954 | |||||||
Total property, plant and equipment | 2,674,485 | 2,390,241 | |||||||
Less accumulated depreciation | (1,000,204 | ) | (947,462 | ) | |||||
$ | 1,674,281 | $ | 1,442,779 | ||||||
Borrowings_and_Other_Financing1
Borrowings and Other Financing Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Borrowings and Other Financing Instruments [Abstract] | |||||||||||||
Credit Facilities | At Dec. 31, 2014, NSP-Wisconsin had the following committed credit facility available (in millions): | ||||||||||||
Credit Facility (a) | Drawn (b) | Available | |||||||||||
$ | 150 | $ | 78 | $ | 72 | ||||||||
(a) | These credit facilities have been amended to extend the maturity to October 2019. | ||||||||||||
(b) | Includes outstanding commercial paper. | ||||||||||||
Commercial Paper | |||||||||||||
Borrowings and Other Financing Instruments [Abstract] | |||||||||||||
Short-term Borrowings | 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 Dec. 31, 2014 | ||||||||||||
Borrowing limit | $ | 150 | |||||||||||
Amount outstanding at period end | 78 | ||||||||||||
Average amount outstanding | 34 | ||||||||||||
Maximum amount outstanding | 80 | ||||||||||||
Weighted average interest rate, computed on a daily basis | 0.37 | % | |||||||||||
Weighted average interest rate at period end | 0.55 | ||||||||||||
(Amounts in Millions, Except Interest Rates) | Twelve Months Ended Dec. 31, 2014 | Twelve Months Ended Dec. 31, 2013 | Twelve Months Ended Dec. 31, 2012 | ||||||||||
Borrowing limit | $ | 150 | $ | 150 | $ | 150 | |||||||
Amount outstanding at period end | 78 | 68 | 39 | ||||||||||
Average amount outstanding | 46 | 20 | 61 | ||||||||||
Maximum amount outstanding | 101 | 71 | 116 | ||||||||||
Weighted average interest rate, computed on a daily basis | 0.27 | % | 0.31 | % | 0.39 | % | |||||||
Weighted average interest rate at period end | 0.55 | 0.27 | 0.4 | ||||||||||
Notes Payable, Other Payables | |||||||||||||
Borrowings and Other Financing Instruments [Abstract] | |||||||||||||
Short-term Borrowings | Other Short-Term Borrowings — The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.: | ||||||||||||
(Amounts in Millions, Except Interest Rates) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Notes payable to affiliates | $ | 0.5 | $ | 0.5 | |||||||||
Weighted average interest rate | 0.51 | % | 0.24 | % |
Joint_Ownership_of_Transmissio1
Joint Ownership of Transmission Facilities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Joint Ownership of Transmission Facilities [Abstract] | ||||||||||||||||
Investments in Jointly Owned Transmission Facilities | Following are the investments by NSP-Wisconsin in jointly owned transmission facilities and the related ownership percentages as of Dec. 31, 2014: | |||||||||||||||
(Thousands of Dollars) | Plant in | Accumulated Depreciation | CWIP | Ownership % | ||||||||||||
Service | ||||||||||||||||
Electric Transmission: | ||||||||||||||||
CapX2020 Transmission | $ | 26,434 | $ | 8,082 | $ | 103,940 | 80.7 | % | ||||||||
La Crosse, Wis. to Madison, Wis. | — | — | 9,814 | 50 | ||||||||||||
Total NSP-Wisconsin | $ | 26,434 | $ | 8,082 | $ | 113,754 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Unrecognized tax benefit — Permanent tax positions | $ | 0.1 | $ | 0.1 | |||||||||
Unrecognized tax benefit — Temporary tax positions | 2.9 | 1.4 | |||||||||||
Total unrecognized tax benefit | $ | 3 | $ | 1.5 | |||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Balance at Jan. 1 | $ | 1.5 | $ | 1.3 | $ | 1.5 | |||||||
Additions based on tax positions related to the current year | 1.9 | 0.7 | 0.5 | ||||||||||
Reductions based on tax positions related to the current year | (0.2 | ) | — | (0.2 | ) | ||||||||
Additions for tax positions of prior years | 0.1 | 0.5 | 0.3 | ||||||||||
Reductions for tax positions of prior years | (0.2 | ) | — | (0.8 | ) | ||||||||
Settlements with taxing authorities | (0.1 | ) | (1.0 | ) | — | ||||||||
Balance at Dec. 31 | $ | 3 | $ | 1.5 | $ | 1.3 | |||||||
Tax Benefits Associated with NOL and Tax Credit Carryforwards | The unrecognized tax benefit amounts were reduced by the tax benefits associated with NOL and tax credit carryforwards. The amounts of tax benefits associated with NOL and tax credit carryforwards are as follows: | ||||||||||||
(Millions of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
NOL and tax credit carryforwards | $ | (0.9 | ) | $ | (0.4 | ) | |||||||
NOL and Tax Credit Carryforwards | Other Income Tax Matters — NOL amounts represent the amount of the tax loss that is carried forward and tax credits represent the deferred tax asset. NOL and tax credit carryforwards as of Dec. 31 were as follows: | ||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||
Federal NOL carryforward | 48.5 | 46.8 | |||||||||||
Federal tax credit carryforwards | 4.5 | 4.4 | |||||||||||
State NOL carryforward | 3.4 | 6.3 | |||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense from operations differs from the amount computed by applying the statutory federal income tax rate to income before income tax expense. The following reconciles such differences for the years ending Dec. 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Increases (decreases) in tax from: | |||||||||||||
State income taxes, net of federal income tax benefit | 4.9 | 5 | 3.4 | ||||||||||
Tax credits recognized | (0.7 | ) | (0.9 | ) | (0.9 | ) | |||||||
Regulatory differences — utility plant items | (1.6 | ) | (0.9 | ) | (0.3 | ) | |||||||
Change in unrecognized tax benefits | — | — | 0.1 | ||||||||||
Other, net | (0.1 | ) | (0.2 | ) | (0.1 | ) | |||||||
Effective income tax rate | 37.5 | % | 38 | % | 37.2 | % | |||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years ending Dec. 31 were: | ||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Current federal tax expense (benefit) | $ | (3,932 | ) | $ | 5,902 | $ | 930 | ||||||
Current state tax expense | 453 | 4,628 | 2,216 | ||||||||||
Current change in unrecognized tax expense (benefit) | 1,013 | 754 | (69 | ) | |||||||||
Deferred federal tax expense | 38,321 | 23,794 | 25,089 | ||||||||||
Deferred state tax expense | 8,042 | 2,720 | 1,890 | ||||||||||
Deferred change in unrecognized tax (benefit) expense | (967 | ) | (725 | ) | 128 | ||||||||
Deferred investment tax credits | (527 | ) | (664 | ) | (626 | ) | |||||||
Total income tax expense | $ | 42,403 | $ | 36,409 | $ | 29,558 | |||||||
The components of deferred income tax expense for the years ending Dec. 31 were: | |||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Deferred tax expense excluding items below | $ | 49,793 | $ | 27,516 | $ | 27,995 | |||||||
Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities | (4,346 | ) | (1,676 | ) | (837 | ) | |||||||
Tax expense allocated to other comprehensive income | (51 | ) | (51 | ) | (51 | ) | |||||||
Deferred tax expense | $ | 45,396 | $ | 25,789 | $ | 27,107 | |||||||
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax liability (current and noncurrent) at Dec. 31 were as follows: | ||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Difference between book and tax bases of property | $ | 319,265 | $ | 287,121 | |||||||||
Regulatory assets | 72,670 | 57,296 | |||||||||||
Employee benefits | 18,691 | 16,953 | |||||||||||
Other | 14,453 | 10,193 | |||||||||||
Total deferred tax liabilities | $ | 425,079 | $ | 371,563 | |||||||||
Deferred tax assets: | |||||||||||||
Environmental remediation | 43,207 | 43,501 | |||||||||||
NOL carryforward | 18,283 | 17,384 | |||||||||||
Regulatory liabilities | 10,460 | 6,205 | |||||||||||
Deferred investment tax credits | 5,628 | 5,976 | |||||||||||
Tax credit carryforward | 4,515 | 4,440 | |||||||||||
Other | 3,007 | 3,871 | |||||||||||
Total deferred tax assets | $ | 85,100 | $ | 81,377 | |||||||||
Net deferred tax liability | $ | 339,979 | $ | 290,186 | |||||||||
Benefit_Plans_and_Other_Postre1
Benefit Plans and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Benefit Plans and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||
Projected Benefit Payments for the Pension and Postretirement Benefit Plans | The following table lists NSP-Wisconsin’s projected benefit payments for the pension and postretirement benefit plans: | ||||||||||||||||||||||||
(Thousands of Dollars) | Projected Pension | Gross Projected | Expected Medicare | Net Projected | |||||||||||||||||||||
Benefit Payments | Postretirement | Part D Subsidies | Postretirement | ||||||||||||||||||||||
Health Care | Health Care | ||||||||||||||||||||||||
Benefit Payments | Benefit Payments | ||||||||||||||||||||||||
2015 | $ | 12,517 | $ | 1,547 | $ | 13 | $ | 1,534 | |||||||||||||||||
2016 | 13,288 | 1,473 | 11 | 1,462 | |||||||||||||||||||||
2017 | 13,164 | 1,397 | 9 | 1,388 | |||||||||||||||||||||
2018 | 12,564 | 1,352 | 8 | 1,344 | |||||||||||||||||||||
2019 | 13,289 | 1,311 | 7 | 1,304 | |||||||||||||||||||||
2020-2024 | 65,118 | 5,816 | 30 | 5,786 | |||||||||||||||||||||
Contributions to Multiemployer Plans | Contributions to multiemployer plans were as follows for the years ended Dec. 31, 2014, 2013 and 2012. There were no significant changes to the nature or magnitude of the participation of NSP-Wisconsin in multiemployer plans for the years presented: | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Multiemployer plan contributions: | |||||||||||||||||||||||||
Pension | $ | 156 | $ | 130 | $ | 163 | |||||||||||||||||||
Total | $ | 156 | $ | 130 | $ | 163 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||
Benefit Plans and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||
Target Asset Allocations and Plan Assets Measured at Fair Value | The following table presents the target pension asset allocations for NSP-Wisconsin at Dec. 31 for the upcoming year: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Domestic and international equity securities | 39 | % | 31 | % | |||||||||||||||||||||
Long-duration fixed income and interest rate swap securities | 23 | 29 | |||||||||||||||||||||||
Short-to-intermediate term fixed income securities | 14 | 16 | |||||||||||||||||||||||
Alternative investments | 22 | 22 | |||||||||||||||||||||||
Cash | 2 | 2 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s pension plan assets that are measured at fair value as of Dec. 31, 2014 and 2013: | |||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 7,910 | $ | — | $ | — | $ | 7,910 | |||||||||||||||||
Derivatives | — | 28 | — | 28 | |||||||||||||||||||||
Government securities | — | 16,084 | — | 16,084 | |||||||||||||||||||||
Corporate bonds | — | 13,231 | — | 13,231 | |||||||||||||||||||||
Asset-backed securities | — | 162 | — | 162 | |||||||||||||||||||||
Mortgage-backed securities | — | 475 | — | 475 | |||||||||||||||||||||
Common stock | 4,424 | — | — | 4,424 | |||||||||||||||||||||
Private equity investments | — | — | 7,078 | 7,078 | |||||||||||||||||||||
Commingled funds | — | 81,806 | — | 81,806 | |||||||||||||||||||||
Real estate | — | — | 2,510 | 2,510 | |||||||||||||||||||||
Securities lending collateral obligation and other | — | (995 | ) | — | (995 | ) | |||||||||||||||||||
Total | $ | 12,334 | $ | 110,791 | $ | 9,588 | $ | 132,713 | |||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 4,332 | $ | — | $ | — | $ | 4,332 | |||||||||||||||||
Derivatives | — | 937 | — | 937 | |||||||||||||||||||||
Government securities | — | 6,711 | — | 6,711 | |||||||||||||||||||||
Corporate bonds | — | 24,955 | — | 24,955 | |||||||||||||||||||||
Asset-backed securities | — | 307 | — | 307 | |||||||||||||||||||||
Mortgage-backed securities | — | 684 | — | 684 | |||||||||||||||||||||
Common stock | 4,533 | — | — | 4,533 | |||||||||||||||||||||
Private equity investments | — | — | 7,502 | 7,502 | |||||||||||||||||||||
Commingled funds | — | 84,364 | — | 84,364 | |||||||||||||||||||||
Real estate | — | — | 2,299 | 2,299 | |||||||||||||||||||||
Securities lending collateral obligation and other | — | 311 | — | 311 | |||||||||||||||||||||
Total | $ | 8,865 | $ | 118,269 | $ | 9,801 | $ | 136,935 | |||||||||||||||||
Changes in Level 3 Plan Assets | The following tables present the changes in NSP-Wisconsin’s Level 3 pension plan assets for the years ended Dec. 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2014 | Net Realized | Net Unrealized | Purchases, | Transfer Out | Dec. 31, 2014 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | of Level 3 | ||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Private equity investments | $ | 7,502 | $ | 1,197 | $ | (1,197 | ) | $ | (424 | ) | $ | — | $ | 7,078 | |||||||||||
Real estate | 2,299 | 166 | (234 | ) | 279 | — | 2,510 | ||||||||||||||||||
Total | $ | 9,801 | $ | 1,363 | $ | (1,431 | ) | $ | (145 | ) | $ | — | $ | 9,588 | |||||||||||
(Thousands of Dollars) | Jan. 1, 2013 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 (a) | Dec. 31, 2013 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 749 | $ | — | $ | — | $ | — | $ | (749 | ) | $ | — | ||||||||||||
Mortgage-backed securities | 2,128 | — | — | — | (2,128 | ) | — | ||||||||||||||||||
Private equity investments | 8,545 | 1,083 | (1,960 | ) | (166 | ) | — | 7,502 | |||||||||||||||||
Real estate | 3,472 | (129 | ) | 247 | 450 | (1,741 | ) | 2,299 | |||||||||||||||||
Total | $ | 14,894 | $ | 954 | $ | (1,713 | ) | $ | 284 | $ | (4,618 | ) | $ | 9,801 | |||||||||||
(a) | Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013. | ||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2012 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 | Dec. 31, 2012 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 1,578 | $ | 197 | $ | (273 | ) | $ | (753 | ) | $ | — | $ | 749 | |||||||||||
Mortgage-backed securities | 3,781 | 93 | (112 | ) | (1,634 | ) | — | 2,128 | |||||||||||||||||
Private equity investments | 8,440 | 945 | (1,197 | ) | 357 | — | 8,545 | ||||||||||||||||||
Real estate | 2,008 | 1 | 328 | 1,135 | — | 3,472 | |||||||||||||||||||
Total | $ | 15,807 | $ | 1,236 | $ | (1,254 | ) | $ | (895 | ) | $ | — | $ | 14,894 | |||||||||||
Change in Projected Benefit Obligation | Benefit Obligations — A comparison of the actuarially computed pension benefit obligation and plan assets for NSP-Wisconsin is presented in the following table: | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Accumulated Benefit Obligation at Dec. 31 | $ | 153,590 | $ | 153,894 | |||||||||||||||||||||
Change in Projected Benefit Obligation: | |||||||||||||||||||||||||
Obligation at Jan. 1 | $ | 163,930 | $ | 179,995 | |||||||||||||||||||||
Service cost | 4,527 | 5,682 | |||||||||||||||||||||||
Interest cost | 7,257 | 6,924 | |||||||||||||||||||||||
Plan amendments | — | (1,109 | ) | ||||||||||||||||||||||
Actuarial loss (gain) | 9,126 | (11,097 | ) | ||||||||||||||||||||||
Benefit payments | (19,171 | ) | (16,465 | ) | |||||||||||||||||||||
Obligation at Dec. 31 | $ | 165,669 | $ | 163,930 | |||||||||||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Change in Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at Jan. 1 | $ | 136,935 | $ | 136,546 | |||||||||||||||||||||
Actual return on plan assets | 6,916 | 5,525 | |||||||||||||||||||||||
Employer contributions | 8,033 | 11,329 | |||||||||||||||||||||||
Benefit payments | (19,171 | ) | (16,465 | ) | |||||||||||||||||||||
Fair value of plan assets at Dec. 31 | $ | 132,713 | $ | 136,935 | |||||||||||||||||||||
Funded Status of Plans | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Funded Status of Plans at Dec. 31: | |||||||||||||||||||||||||
Funded status (a) | $ | (32,956 | ) | $ | (26,995 | ) | |||||||||||||||||||
(a) | Amounts are recognized in noncurrent liabilities on NSP-Wisconsin’s consolidated balance sheets. | ||||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Net loss | $ | 90,007 | $ | 84,773 | |||||||||||||||||||||
Prior service cost | 667 | 778 | |||||||||||||||||||||||
Total | $ | 90,674 | $ | 85,551 | |||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Costs Recorded on the Balance Sheet Based Upon Expected Recovery in Rates | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates: | |||||||||||||||||||||||||
Current regulatory assets | $ | 6,728 | $ | 7,631 | |||||||||||||||||||||
Noncurrent regulatory assets | 83,946 | 77,920 | |||||||||||||||||||||||
Total | $ | 90,674 | $ | 85,551 | |||||||||||||||||||||
Schedule of Assumptions Used | |||||||||||||||||||||||||
Measurement date | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Significant Assumptions Used to Measure Benefit Obligations: | |||||||||||||||||||||||||
Discount rate for year-end valuation | 4.11 | % | 4.75 | % | |||||||||||||||||||||
Expected average long-term increase in compensation level | 3.75 | 3.75 | |||||||||||||||||||||||
Mortality table | RP 2014 | RP 2000 | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Significant Assumptions Used to Measure Costs: | |||||||||||||||||||||||||
Discount rate | 4.75 | % | 4 | % | 5 | % | |||||||||||||||||||
Expected average long-term increase in compensation level | 3.75 | 3.75 | 4 | ||||||||||||||||||||||
Expected average long-term rate of return on assets | 7.25 | 7.25 | 7.5 | ||||||||||||||||||||||
Components of Net Periodic Benefit Costs | Benefit Costs — The components of NSP-Wisconsin’s net periodic pension cost were: | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost | $ | 4,527 | $ | 5,682 | $ | 4,568 | |||||||||||||||||||
Interest cost | 7,257 | 6,924 | 7,765 | ||||||||||||||||||||||
Expected return on plan assets | (9,642 | ) | (9,995 | ) | (10,489 | ) | |||||||||||||||||||
Amortization of prior service cost | 111 | 417 | 1,771 | ||||||||||||||||||||||
Amortization of net loss | 6,617 | 7,924 | 6,004 | ||||||||||||||||||||||
Net periodic pension cost | $ | 8,870 | $ | 10,952 | $ | 9,619 | |||||||||||||||||||
Postretirement Benefit Plan | |||||||||||||||||||||||||
Benefit Plans and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||
Target Asset Allocations and Plan Assets Measured at Fair Value | The following table presents the target postretirement asset allocations for Xcel Energy Inc. and NSP-Wisconsin at Dec. 31 for the upcoming year: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Domestic and international equity securities | 25 | % | 41 | % | |||||||||||||||||||||
Short-to-intermediate fixed income securities | 57 | 40 | |||||||||||||||||||||||
Alternative investments | 13 | 13 | |||||||||||||||||||||||
Cash | 5 | 6 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
The following tables present, for each of the fair value hierarchy levels, NSP-Wisconsin’s proportionate allocation of the total postretirement benefit plan assets that are measured at fair value as of Dec. 31, 2014 and 2013: | |||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 28 | $ | — | $ | — | $ | 28 | |||||||||||||||||
Government securities | — | 52 | — | 52 | |||||||||||||||||||||
Insurance contracts | — | 54 | — | 54 | |||||||||||||||||||||
Corporate bonds | — | 59 | — | 59 | |||||||||||||||||||||
Asset-backed securities | — | 4 | — | 4 | |||||||||||||||||||||
Mortgage-backed securities | — | 12 | — | 12 | |||||||||||||||||||||
Commingled funds | — | 304 | — | 304 | |||||||||||||||||||||
Other | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Total | $ | 28 | $ | 484 | $ | — | $ | 512 | |||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash equivalents | $ | 31 | $ | — | $ | — | $ | 31 | |||||||||||||||||
Derivatives | — | (2 | ) | — | (2 | ) | |||||||||||||||||||
Government securities | — | 89 | — | 89 | |||||||||||||||||||||
Insurance contracts | — | 80 | — | 80 | |||||||||||||||||||||
Corporate bonds | — | 79 | — | 79 | |||||||||||||||||||||
Asset-backed securities | — | 5 | — | 5 | |||||||||||||||||||||
Mortgage-backed securities | — | 37 | — | 37 | |||||||||||||||||||||
Commingled funds | — | 452 | — | 452 | |||||||||||||||||||||
Other | — | (25 | ) | — | (25 | ) | |||||||||||||||||||
Total | $ | 31 | $ | 715 | $ | — | $ | 746 | |||||||||||||||||
Changes in Level 3 Plan Assets | For the year ended Dec. 31, 2014 there were no assets transferred in or out of Level 3. The following tables present the changes in NSP-Wisconsin’s Level 3 postretirement benefit plan assets for the years ended Dec. 31, 2013 and 2012: | ||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2013 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 (a) | Dec. 31, 2013 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 1 | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | ||||||||||||
Mortgage-backed securities | 54 | — | — | — | (54 | ) | — | ||||||||||||||||||
Total | $ | 55 | $ | — | $ | — | $ | — | $ | (55 | ) | $ | — | ||||||||||||
(a) | Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013. | ||||||||||||||||||||||||
(Thousands of Dollars) | Jan. 1, 2012 | Net Realized | Net Unrealized | Purchases, | Transfers Out of Level 3 | Dec. 31, 2012 | |||||||||||||||||||
Gains (Losses) | Gains (Losses) | Issuances and | |||||||||||||||||||||||
Settlements, Net | |||||||||||||||||||||||||
Asset-backed securities | $ | 14 | $ | — | $ | 3 | $ | (16 | ) | $ | — | $ | 1 | ||||||||||||
Mortgage-backed securities | 48 | (1 | ) | 6 | 1 | — | 54 | ||||||||||||||||||
Total | $ | 62 | $ | (1 | ) | $ | 9 | $ | (15 | ) | $ | — | $ | 55 | |||||||||||
Change in Projected Benefit Obligation | Benefit Obligations — A comparison of the actuarially computed benefit obligation and plan assets for NSP-Wisconsin is presented in the following table: | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Change in Projected Benefit Obligation: | |||||||||||||||||||||||||
Obligation at Jan. 1 | $ | 17,153 | $ | 19,432 | |||||||||||||||||||||
Service cost | 35 | 25 | |||||||||||||||||||||||
Interest cost | 791 | 760 | |||||||||||||||||||||||
Medicare subsidy reimbursements | 2 | 31 | |||||||||||||||||||||||
Plan participants’ contributions | 284 | 621 | |||||||||||||||||||||||
Actuarial gain | (38 | ) | (1,724 | ) | |||||||||||||||||||||
Benefit payments | (1,459 | ) | (1,992 | ) | |||||||||||||||||||||
Obligation at Dec. 31 | $ | 16,768 | $ | 17,153 | |||||||||||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Change in Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at Jan. 1 | $ | 746 | $ | 647 | |||||||||||||||||||||
Actual return on plan assets | (15 | ) | (13 | ) | |||||||||||||||||||||
Plan participants’ contributions | 284 | 621 | |||||||||||||||||||||||
Employer contributions | 956 | 1,483 | |||||||||||||||||||||||
Benefit payments | (1,459 | ) | (1,992 | ) | |||||||||||||||||||||
Fair value of plan assets at Dec. 31 | $ | 512 | $ | 746 | |||||||||||||||||||||
Funded Status of Plans | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Funded Status of Plans at Dec. 31: | |||||||||||||||||||||||||
Funded status | $ | (16,256 | ) | $ | (16,407 | ) | |||||||||||||||||||
Current liabilities | (1,022 | ) | (718 | ) | |||||||||||||||||||||
Noncurrent liabilities | (15,234 | ) | (15,689 | ) | |||||||||||||||||||||
Net postretirement amounts recognized on consolidated balance sheets | $ | (16,256 | ) | $ | (16,407 | ) | |||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Net loss | $ | 10,461 | $ | 11,098 | |||||||||||||||||||||
Prior service credit | (2,836 | ) | (3,187 | ) | |||||||||||||||||||||
Total | $ | 7,625 | $ | 7,911 | |||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Costs Recorded on the Balance Sheet Based Upon Expected Recovery in Rates | |||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates: | |||||||||||||||||||||||||
Current regulatory assets | $ | 95 | $ | 570 | |||||||||||||||||||||
Noncurrent regulatory assets | 7,530 | 7,341 | |||||||||||||||||||||||
Total | $ | 7,625 | $ | 7,911 | |||||||||||||||||||||
Schedule of Assumptions Used | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Significant Assumptions Used to Measure Costs: | |||||||||||||||||||||||||
Discount rate | 4.82 | % | 4.1 | % | 5 | % | |||||||||||||||||||
Expected average long-term rate of return on assets | 7.08 | 7.11 | 6.75 | ||||||||||||||||||||||
Measurement date | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Significant Assumptions Used to Measure Benefit Obligations: | |||||||||||||||||||||||||
Discount rate for year-end valuation | 4.08 | % | 4.82 | % | |||||||||||||||||||||
Mortality table | RP 2014 | RP 2000 | |||||||||||||||||||||||
Health care costs trend rate — initial | 6.5 | % | 7 | % | |||||||||||||||||||||
Effects of One-Percent Change in Assumed Health Care Cost Trend Rate | A one-percent change in the assumed health care cost trend rate would have the following effects on NSP-Wisconsin: | ||||||||||||||||||||||||
One-Percentage Point | |||||||||||||||||||||||||
(Thousands of Dollars) | Increase | Decrease | |||||||||||||||||||||||
APBO | $ | 1,722 | $ | (1,450 | ) | ||||||||||||||||||||
Service and interest components | 98 | (80 | ) | ||||||||||||||||||||||
Components of Net Periodic Benefit Costs | Benefit Costs — The components of NSP-Wisconsin’s net periodic postretirement benefit costs were: | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost | $ | 35 | $ | 25 | $ | 20 | |||||||||||||||||||
Interest cost | 791 | 760 | 1,075 | ||||||||||||||||||||||
Expected return on plan assets | (52 | ) | (42 | ) | (50 | ) | |||||||||||||||||||
Amortization of transition obligation | — | 1 | 171 | ||||||||||||||||||||||
Amortization of prior service credit | (351 | ) | (351 | ) | (14 | ) | |||||||||||||||||||
Amortization of net loss | 666 | 963 | 486 | ||||||||||||||||||||||
Net periodic postretirement benefit cost | $ | 1,089 | $ | 1,356 | $ | 1,688 | |||||||||||||||||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Income, Net | Other income, net for the years ended Dec. 31 consisted of the following: | ||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Interest income | $ | 368 | $ | 538 | $ | 736 | |||||||
Other nonoperating income | 321 | 152 | 129 | ||||||||||
Insurance policy expense | (409 | ) | (427 | ) | (389 | ) | |||||||
Other nonoperating expense | (10 | ) | (10 | ) | — | ||||||||
Other income, net | $ | 270 | $ | 253 | $ | 476 | |||||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 Dec. 31: | ||||||||||||||||||||||||
(Amounts in Thousands) (a)(b) | 2014 | 2013 | |||||||||||||||||||||||
MMBtu of natural gas | 18 | 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. | ||||||||||||||||||||||||
Financial Impact of Qualifying Cash Flow Hedges on Accumulated Other Comprehensive Loss | Financial Impact of Qualifying Cash Flow Hedges — The impact of qualifying interest rate cash flow hedges on NSP-Wisconsin’s accumulated other comprehensive loss, included in the consolidated statements of common stockholder’s equity and in the consolidated statements of comprehensive income, is detailed in the following table: | ||||||||||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1 | $ | (361 | ) | $ | (437 | ) | $ | (514 | ) | ||||||||||||||||
After-tax net realized losses on derivative transactions reclassified into earnings | 76 | 76 | 77 | ||||||||||||||||||||||
Accumulated other comprehensive loss related to cash flow hedges at Dec. 31 | $ | (285 | ) | $ | (361 | ) | $ | (437 | ) | ||||||||||||||||
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: | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value | Fair Value | Counterparty | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | Netting (a) | Total (b) | |||||||||||||||||||
Current derivative assets | |||||||||||||||||||||||||
Natural gas commodity | $ | — | $ | 52 | $ | — | $ | 52 | $ | — | $ | 52 | |||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | Counterparty | |||||||||||||||||||||||
(Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | Netting (a) | Total (c) | |||||||||||||||||||
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 Dec. 31, 2014 and 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 other current assets balance of $6.9 million at Dec. 31, 2014 in the consolidated balance sheets. | ||||||||||||||||||||||||
(c) | Included in other current assets balance of $5.1 million at Dec. 31, 2013 in the consolidated balance sheets. | ||||||||||||||||||||||||
Carrying Amount and Fair Value of Long-term Debt | As of Dec. 31, 2014 and 2013, other financial instruments for which the carrying amount did not equal fair value were as follows: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Thousands of Dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Long-term debt, including current portion | $ | 568,291 | $ | 670,665 | $ | 468,597 | $ | 518,269 | |||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Estimated Minimum Purchases Under Fuel Contracts | The estimated minimum purchases for NSP-Wisconsin under these contracts as of Dec. 31, 2014 are as follows: | ||||||||||||||||||||
(Millions of dollars) | Coal | Natural gas | Natural gas | ||||||||||||||||||
supply | storage and | ||||||||||||||||||||
transportation | |||||||||||||||||||||
2015 | $ | 6.6 | $ | 12.4 | $ | 13.2 | |||||||||||||||
2016 | 0.8 | 0.3 | 13.1 | ||||||||||||||||||
2017 | 0.9 | 0.2 | 10.4 | ||||||||||||||||||
2018 | 0.8 | — | 4.7 | ||||||||||||||||||
2019 | 0.8 | — | 3.1 | ||||||||||||||||||
Thereafter | 3.3 | — | 13.5 | ||||||||||||||||||
Total (a) | $ | 13.2 | $ | 12.9 | $ | 58 | |||||||||||||||
(a) | Excludes additional amounts allocated to NSP-Wisconsin through intercompany charges. | ||||||||||||||||||||
Future Commitments Under Operating Leases | Future commitments under operating leases are: | ||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
2015 | $ | 0.9 | |||||||||||||||||||
2016 | 0.9 | ||||||||||||||||||||
2017 | 1 | ||||||||||||||||||||
2018 | 1 | ||||||||||||||||||||
2019 | 1 | ||||||||||||||||||||
Thereafter | 7.9 | ||||||||||||||||||||
Total | $ | 12.7 | |||||||||||||||||||
Low-income Housing Limited Partnerships | Amounts reflected in NSP-Wisconsin’s consolidated balance sheets for low-income housing limited partnerships include the following: | ||||||||||||||||||||
(Thousands of Dollars) | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Current assets | $ | 246 | $ | 223 | |||||||||||||||||
Property, plant and equipment, net | 2,278 | 2,427 | |||||||||||||||||||
Other noncurrent assets | 122 | 112 | |||||||||||||||||||
Total assets | $ | 2,646 | $ | 2,762 | |||||||||||||||||
Current liabilities | $ | 1,349 | $ | 233 | |||||||||||||||||
Mortgages and other long-term debt payable | 486 | 1,687 | |||||||||||||||||||
Other noncurrent liabilities | 48 | 42 | |||||||||||||||||||
Total liabilities | $ | 1,883 | $ | 1,962 | |||||||||||||||||
Guarantee Issued and Outstanding | The following table presents the guarantee issued and outstanding for NSP-Wisconsin: | ||||||||||||||||||||
(Millions of Dollars) | Guarantee | Current | Term or | Triggering | |||||||||||||||||
Amount | Exposure | Expiration Date | Event | ||||||||||||||||||
Guarantee of customer loans for the Farm Rewiring Program | $ | 1 | $ | 0.2 | 2018 | (a) | |||||||||||||||
(a) | The debtor becomes the subject of bankruptcy or other insolvency proceedings. | ||||||||||||||||||||
Asset Retirement Obligations | A reconciliation of NSP-Wisconsin’s AROs for the years ended Dec. 31, 2014 and 2013 is as follows: | ||||||||||||||||||||
(Thousands of Dollars) | Beginning Balance | Liabilities Recognized | Accretion | Cash Flow Revisions | Ending Balance | ||||||||||||||||
Jan. 1, 2014 | Dec. 31, 2014 (a) | ||||||||||||||||||||
Electric plant | |||||||||||||||||||||
Steam production asbestos | $ | 2,005 | $ | — | $ | 44 | $ | — | $ | 2,049 | |||||||||||
Steam and other production ash containment | 361 | — | 13 | — | 374 | ||||||||||||||||
Electric distribution | 36 | — | 1 | — | 37 | ||||||||||||||||
Other | 289 | 113 | 10 | — | 412 | ||||||||||||||||
Natural gas plant | |||||||||||||||||||||
Gas distribution | 75 | 402 | 5 | 5,645 | 6,127 | ||||||||||||||||
Common and other property | |||||||||||||||||||||
Common miscellaneous | 87 | — | 3 | 1 | 91 | ||||||||||||||||
Total liability (b) | $ | 2,853 | $ | 515 | $ | 76 | $ | 5,646 | $ | 9,090 | |||||||||||
(Thousands of Dollars) | Beginning Balance | Liabilities Recognized | Accretion | Cash Flow Revisions | Ending Balance | ||||||||||||||||
Jan. 1, 2013 | Dec. 31, 2013 (a) | ||||||||||||||||||||
Electric plant | |||||||||||||||||||||
Steam production asbestos | $ | 1,962 | $ | — | $ | 43 | $ | — | $ | 2,005 | |||||||||||
Steam and other production ash containment | 125 | — | 12 | 224 | 361 | ||||||||||||||||
Electric distribution | 13 | — | 1 | 22 | 36 | ||||||||||||||||
Other | 826 | — | 20 | (557 | ) | 289 | |||||||||||||||
Natural gas plant | |||||||||||||||||||||
Gas distribution | 75 | — | 5 | (5 | ) | 75 | |||||||||||||||
Common and other property | |||||||||||||||||||||
Common miscellaneous | 35 | — | 3 | 49 | 87 | ||||||||||||||||
Total liability (b) | $ | 3,036 | $ | — | $ | 84 | $ | (267 | ) | $ | 2,853 | ||||||||||
(a) | There were no ARO liabilities settled during the years ended Dec. 31, 2014 or 2013. | ||||||||||||||||||||
(b) | Included in the other long-term liabilities balance in the consolidated balance sheets. |
Regulatory_Assets_and_Liabilit1
Regulatory Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||
Regulatory Assets | The components of regulatory assets shown on the consolidated balance sheets of NSP-Wisconsin at Dec. 31, 2014 and 2013 are: | ||||||||||||||||||||
(Thousands of Dollars) | See Note(s) | Remaining | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Amortization Period | |||||||||||||||||||||
Regulatory Assets | Current | Noncurrent | Current | Noncurrent | |||||||||||||||||
Environmental remediation costs | 1, 11 | Various | $ | 4,376 | $ | 147,793 | $ | 4,376 | $ | 117,684 | |||||||||||
Pension and retiree medical obligations (a) | 7 | Various | 6,837 | 91,601 | 8,202 | 85,220 | |||||||||||||||
Recoverable deferred taxes on AFUDC recorded in plant | 1 | Plant lives | — | 16,711 | — | 12,679 | |||||||||||||||
Losses on reacquired debt | 4 | Term of related debt | 801 | 4,936 | 801 | 5,737 | |||||||||||||||
State commission adjustments | 1 | Plant lives | 488 | 11,650 | 410 | 9,355 | |||||||||||||||
Conservation programs | 1 | Less than one year | — | — | 404 | — | |||||||||||||||
Deferred income tax adjustment | 1, 6 | Typically plant lives | — | 1,514 | — | 1,763 | |||||||||||||||
Recoverable purchased natural gas and electric energy costs | Less than one year | 6,946 | — | 673 | — | ||||||||||||||||
Monticello EPU | Pending rate cases | — | 5,237 | — | — | ||||||||||||||||
Other | Various | 588 | 1,251 | — | 755 | ||||||||||||||||
Total regulatory assets | $ | 20,036 | $ | 280,693 | $ | 14,866 | $ | 233,193 | |||||||||||||
(a) | Includes the non-qualified pension plan. | ||||||||||||||||||||
Regulatory Liabilities | The components of regulatory liabilities shown on the consolidated balance sheets of NSP-Wisconsin at Dec. 31, 2014 and 2013 are: | ||||||||||||||||||||
(Thousands of Dollars) | See Note(s) | Remaining | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Amortization Period | |||||||||||||||||||||
Regulatory Liabilities | Current | Noncurrent | Current | Noncurrent | |||||||||||||||||
Plant removal costs | 11 | Plant lives | $ | — | $ | 123,105 | $ | — | $ | 116,293 | |||||||||||
DOE settlement | 11 | Less than one year | 4,931 | — | 6,814 | — | |||||||||||||||
Investment tax credit deferrals | 1, 6 | Various | — | 9,397 | — | 9,976 | |||||||||||||||
Conservation programs | 1 | Less than one year | 1,010 | — | 1,187 | — | |||||||||||||||
Deferred electric production and natural gas costs | 1 | Less than one year | — | — | 1,542 | — | |||||||||||||||
Excess depreciation reserve | Various | 10,999 | — | — | — | ||||||||||||||||
Other | Various | — | 172 | 174 | 155 | ||||||||||||||||
Total regulatory liabilities | $ | 16,940 | $ | 132,674 | $ | 9,717 | $ | 126,424 | |||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | Changes in accumulated other comprehensive loss, net of tax, for the years ended Dec. 31, 2014 and 2013 were as follows: | |||||||||
Gains and Losses on Cash Flow Hedges | ||||||||||
(Thousands of Dollars) | Year Ended Dec. 31, 2014 | Year Ended Dec. 31, 2013 | ||||||||
Accumulated other comprehensive loss at Jan. 1 | $ | (361 | ) | $ | (437 | ) | ||||
Losses reclassified from net accumulated other comprehensive loss | 76 | 76 | ||||||||
Net current period OCI | 76 | 76 | ||||||||
Accumulated other comprehensive loss at Dec. 31 | $ | (285 | ) | $ | (361 | ) | ||||
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the years ended Dec. 31, 2014 and 2013 were as follows: | |||||||||
Amounts Reclassified from Accumulated | ||||||||||
Other Comprehensive Loss | ||||||||||
(Thousands of Dollars) | Year Ended Dec. 31, 2014 | Year Ended Dec. 31, 2013 | ||||||||
Losses on cash flow hedges: | ||||||||||
Interest rate derivatives | $ | 127 | (a) | $ | 127 | (a) | ||||
Total, pre-tax | 127 | 127 | ||||||||
Tax benefit | (51 | ) | (51 | ) | ||||||
Total amounts reclassified, net of tax | $ | 76 | $ | 76 | ||||||
(a) | Included in interest charges. |
Segments_and_Related_Informati1
Segments and Related Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Results from Operations by Reportable Segment | |||||||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All Other | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Eliminations | Total | ||||||||||||||||||
2014 | |||||||||||||||||||||
Operating revenues (a) | $ | 829,748 | $ | 169,629 | $ | 1,085 | $ | — | $ | 1,000,462 | |||||||||||
Intersegment revenues | 497 | 4,885 | — | (5,382 | ) | — | |||||||||||||||
Total revenues | $ | 830,245 | $ | 174,514 | $ | 1,085 | $ | (5,382 | ) | $ | 1,000,462 | ||||||||||
Depreciation and amortization | $ | 65,978 | $ | 13,501 | $ | 175 | $ | — | $ | 79,654 | |||||||||||
Interest charges and financing costs | 23,448 | 2,358 | 107 | — | 25,913 | ||||||||||||||||
Income tax expense (benefit) | 39,621 | 5,993 | (3,211 | ) | — | 42,403 | |||||||||||||||
Net Income | 59,060 | 8,714 | 2,868 | — | 70,642 | ||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All Other | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Eliminations | Total | ||||||||||||||||||
2013 | |||||||||||||||||||||
Operating revenues (a) | $ | 789,168 | $ | 132,867 | $ | 1,003 | $ | — | $ | 923,038 | |||||||||||
Intersegment revenues | 350 | 1,967 | — | (2,317 | ) | — | |||||||||||||||
Total revenues | $ | 789,518 | $ | 134,834 | $ | 1,003 | $ | (2,317 | ) | $ | 923,038 | ||||||||||
Depreciation and amortization | $ | 64,237 | $ | 12,485 | $ | 175 | $ | — | $ | 76,897 | |||||||||||
Interest charges and financing costs | 22,966 | 2,749 | 101 | — | 25,816 | ||||||||||||||||
Income tax expense (benefit) | 33,691 | 4,623 | (1,905 | ) | — | 36,409 | |||||||||||||||
Net Income | 51,334 | 6,501 | 1,633 | — | 59,468 | ||||||||||||||||
(Thousands of Dollars) | Regulated | Regulated | All Other | Reconciling | Consolidated | ||||||||||||||||
Electric | Natural Gas | Eliminations | Total | ||||||||||||||||||
2012 | |||||||||||||||||||||
Operating revenues (a) | $ | 757,565 | $ | 103,100 | $ | 1,177 | $ | — | $ | 861,842 | |||||||||||
Intersegment revenues | 355 | 727 | — | (1,082 | ) | — | |||||||||||||||
Total revenues | $ | 757,920 | $ | 103,827 | $ | 1,177 | $ | (1,082 | ) | $ | 861,842 | ||||||||||
Depreciation and amortization | $ | 59,768 | $ | 9,251 | $ | 215 | $ | — | $ | 69,234 | |||||||||||
Interest charges and financing costs | 20,303 | 2,554 | 80 | — | 22,937 | ||||||||||||||||
Income tax expense | 27,164 | 2,113 | 281 | — | 29,558 | ||||||||||||||||
Net Income | 45,377 | 3,094 | 1,480 | — | 49,951 | ||||||||||||||||
(a) | Operating revenues include $145 million, $137 million and $125 million of intercompany revenue for the years ended Dec. 31, 2014, 2013 and 2012 respectively. See Note 15 for further discussion of related party transactions by operating segment. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||
Related Party Transactions | The table below contains significant affiliate transactions among the companies and related parties including billings under the Interchange Agreement for the years ended Dec. 31: | ||||||||||||||||
(Thousands of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Operating revenues: | |||||||||||||||||
Electric | $ | 145,102 | $ | 136,917 | $ | 125,344 | |||||||||||
Operating expenses: | |||||||||||||||||
Purchased power (a) | 430,666 | 416,173 | 405,016 | ||||||||||||||
Transmission expense | 43,876 | 42,460 | 44,942 | ||||||||||||||
Natural gas purchased for resale | 90 | 97 | 116 | ||||||||||||||
Other operating expenses — paid to Xcel Energy Services Inc. | 84,224 | 61,531 | 54,137 | ||||||||||||||
Interest expense | 30 | 22 | 22 | ||||||||||||||
(a) | Pursuant to orders issued by the PSCW in December 2013 and February 2014, the 2014 amounts do not reflect $5.2 million of purchased power expenses deferred as a regulatory asset and $11.0 million of transmission costs deferred as a regulatory liability billed to NSP-Wisconsin through the Interchange Agreement from NSP-Minnesota. | ||||||||||||||||
Accounts receivable and payable with affiliates at Dec. 31 were: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Thousands of Dollars) | Accounts | Accounts | Accounts | Accounts | |||||||||||||
Receivable | Payable | Receivable | Payable | ||||||||||||||
NSP-Minnesota | $ | — | $ | 17,333 | $ | — | $ | 18,584 | |||||||||
PSCo | — | 22 | — | 8 | |||||||||||||
SPS | 31 | — | 26 | — | |||||||||||||
Other subsidiaries of Xcel Energy Inc. | — | 9,169 | 1,569 | 6,394 | |||||||||||||
$ | 31 | $ | 26,524 | $ | 1,595 | $ | 24,986 | ||||||||||
Summarized_Quarterly_Financial1
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summarized Quarterly Financial Data (Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
(Thousands of Dollars) | March 31, 2014 | June 30, 2014 | Sept. 30, 2014 | Dec. 31, 2014 | |||||||||||||
Operating revenues | $ | 285,142 | $ | 228,114 | $ | 231,046 | $ | 256,160 | |||||||||
Operating income | 42,571 | 23,730 | 37,540 | 27,787 | |||||||||||||
Net income | 24,235 | 12,022 | 20,030 | 14,355 | |||||||||||||
Quarter Ended | |||||||||||||||||
(Thousands of Dollars) | March 31, 2013 | June 30, 2013 | Sept. 30, 2013 | Dec. 31, 2013 | |||||||||||||
Operating revenues | $ | 241,415 | $ | 210,175 | $ | 231,060 | $ | 240,388 | |||||||||
Operating income | 37,401 | 22,466 | 40,769 | 16,545 | |||||||||||||
Net income | 19,685 | 10,544 | 22,013 | 7,225 | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense expressed as a percentage of average depreciable property | 3.30% | 3.50% | 3.50% |
Cash and Cash Equivalents [Abstract] | |||
Maximum number of months of remaining maturity at time of purchase to consider investments in certain instruments as cash equivalents | 3 months |
Selected_Balance_Sheet_Data_Ac
Selected Balance Sheet Data, Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Receivable, Net | ||||
Accounts receivable | $66,217 | $64,180 | ||
Less allowance for bad debts | -5,821 | -4,911 | ||
Accounts receivable, net | 60,396 | [1] | 59,269 | [1] |
Accounts receivable from affiliates, net | $31 | $1,595 | ||
[1] | Accounts receivable, net includes an immaterial amount and $1,595 due from affiliates for 2014 and 2013, respectively. |
Selected_Balance_Sheet_Data_In
Selected Balance Sheet Data, Inventory (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $24,685 | $21,475 |
Materials and supplies | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 6,494 | 6,437 |
Fuel | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | 6,654 | 5,915 |
Natural gas | ||
Public Utilities, Inventory [Line Items] | ||
Inventories | $11,537 | $9,123 |
Selected_Balance_Sheet_Data_Pr
Selected Balance Sheet Data, Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $2,674,485 | $2,390,241 |
Less accumulated depreciation | -1,000,204 | -947,462 |
Property, plant and equipment, net | 1,674,281 | 1,442,779 |
Electric plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,061,669 | 1,913,354 |
Natural gas plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 255,465 | 236,047 |
Common and other property | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 125,938 | 112,886 |
CWIP | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $231,413 | $127,954 |
Borrowings_and_Other_Financing2
Borrowings and Other Financing Instruments, Commercial Paper (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Short-term Debt [Line Items] | ||||
Amount outstanding at period end | $78,000,000 | $78,000,000 | $68,000,000 | |
Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Borrowing limit | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 |
Amount outstanding at period end | 78,000,000 | 78,000,000 | 68,000,000 | 39,000,000 |
Average amount outstanding | 34,000,000 | 46,000,000 | 20,000,000 | 61,000,000 |
Maximum amount outstanding | $80,000,000 | $101,000,000 | $71,000,000 | $116,000,000 |
Weighted average interest rate, computed on a daily basis (percentage) | 0.37% | 0.27% | 0.31% | 0.39% |
Weighted average interest rate at period end (percentage) | 0.55% | 0.55% | 0.27% | 0.40% |
Borrowings_and_Other_Financing3
Borrowings and Other Financing Instruments, Letters of Credit (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | 78,000 | $68,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding at period end | 0 | $0 |
Letter of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Term of letters of credit (in years) | 1 year |
Borrowings_and_Other_Financing4
Borrowings and Other Financing Instruments, Credit Facility (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Line of Credit Facility [Line Items] | ||||
Direct advances on the credit facility outstanding | $0 | $0 | ||
Line Of Credit Facility Maximum Debt To Total Capitalization Ratio Allowed | 65.00% | |||
Line Of Credit Facility Debt To Total Capitalization Ratio | 48.00% | 47.00% | ||
Line Of Credit Facility Minimum Threshhold Percentage Of Subsidiary Assets To Consolidated Assets Required To Initiate Cross Default Provisions | 15.00% | |||
Line of Credit Facility, Minimum Amount of Indebtedness in Default to Initiate Cross Default Provisions | 75,000,000 | |||
Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Credit Facility | 150,000,000 | [1] | ||
Drawn | 78,000,000 | [2] | ||
Available | $72,000,000 | |||
Debt Instrument, Term | 5 years | |||
Line of Credit Facility, Initiation Date | 14-Oct-14 | |||
Term Of Each Additional Period Revolving Termination Date Can Be Extended Subject To Majority Bank Group Approval | 1 year | |||
Maximum | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line Of Credit Facility Maximum Commitment Fees Calculated On Unused Portion Of Lines Of Credit | 0.28% | |||
Minimum | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line Of Credit Facility Minimum Commitment Fees Calculated On Unused Portion Of Lines Of Credit | 0.08% | |||
Eurodollar | Maximum | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line Of Credit Facility Maximum Borrowing Margin Based On Long Term Credit Ratings | 1.75% | |||
Eurodollar | Minimum | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line Of Credit Facility Minimum Borrowing Margin Based On Long Term Credit Ratings | 0.88% | |||
[1] | These credit facilities have been amended to extend the maturity to October 2019. | |||
[2] | Includes outstanding commercial paper. |
Borrowings_and_Other_Financing5
Borrowings and Other Financing Instruments, Intercompany Borrowing Arrangements and Other Short-Term Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Notes payable to affiliates | $500 | $470 |
Notes Payable, Other Payables | ||
Short-term Debt [Line Items] | ||
Notes payable to affiliates | $500 | $500 |
Weighted average interest rate at period end (percentage) | 0.51% | 0.24% |
Borrowings_and_Other_Financing6
Borrowings and Other Financing Instruments Borrowings and Other Financing Instruments, Long-Term Borrowings and Other Financing Instruments (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Deferred Finance Costs, Noncurrent, Net | 4,300,000 | $3,500,000 | |
Maximum annual dividends that can be paid if equity capitalization ratio condition is not met | 33,300,000 | ||
Minimum calendar year average equity to total capitalization ratio authorized by state commission | 52.50% | ||
Calendar year average equity to total capitalization ratio | 52.80% | ||
Unrestricted Retained Earnings Per State Regulatory Commissions Dividend Restrictions | 8,300,000 | ||
First Mortgage Bonds | Series Due June 15, 2024 | |||
Debt Instrument [Line Items] | |||
Face Amount | 100,000,000 | ||
Interest Rate, Stated Percentage | 3.30% | 3.30% | |
Maturity Date | 15-Jun-24 | 15-Jun-24 | |
First Mortgage Bonds | Series Due Oct. 1, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage | 5.25% | ||
Maturity Date | 1-Oct-18 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 150,000,000 |
Joint_Ownership_of_Transmissio2
Joint Ownership of Transmission Facilities (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Jointly Owned Utility Plant [Abstract] | |
Plant in service | $26,434 |
Accumulated depreciation | 8,082 |
Construction work in progress | 113,754 |
CapX2020 Transmission | Electric Transmission | |
Jointly Owned Utility Plant [Abstract] | |
Plant in service | 26,434 |
Accumulated depreciation | 8,082 |
Construction work in progress | 103,940 |
Ownership % (in hundredths) | 80.70% |
La Crosse, Wis. to Madison, Wis. | Electric Transmission | |
Jointly Owned Utility Plant [Abstract] | |
Plant in service | 0 |
Accumulated depreciation | 0 |
Construction work in progress | $9,814 |
Ownership % (in hundredths) | 50.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Tax Increase Prevention Act of 2014 [Abstract] | ||||
Bonus depreciation rate | 50.00% | 50.00% | ||
Number of years bonus depreciation was extended | 1 year | 1 year | ||
American Taxpayer Relief Act of 2012 [Abstract] | ||||
Original top tax rate for dividends | 15.00% | |||
New top tax rate for dividends | 20.00% | |||
Bonus depreciation rate | 50.00% | 50.00% | ||
Number of years bonus depreciation was extended | 1 year | 1 year | ||
Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized tax benefit — Permanent tax positions | $100,000 | $100,000 | ||
Unrecognized tax benefit — Temporary tax positions | 2,900,000 | 1,400,000 | ||
Total unrecognized tax benefit | 3,000,000 | 1,500,000 | 1,300,000 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at Jan. 1 | 1,500,000 | 1,300,000 | 1,500,000 | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1,900,000 | 700,000 | 500,000 | |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | -200,000 | 0 | -200,000 | |
Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions | 100,000 | 500,000 | 300,000 | |
Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions | -200,000 | 0 | -800,000 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | -100,000 | -1,000,000 | 0 | |
Balance at Dec. 31 | 3,000,000 | 1,500,000 | 1,300,000 | |
Tax Benefits Associated With NOL And Tax Credit Carryforwards [Abstract] | ||||
NOL and tax credit carryforwards | -900,000 | -400,000 | ||
Amounts accrued for penalties related to unrecognized tax benefits | 0 | 0 | 0 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 4.90% | 5.00% | 3.40% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | -0.70% | -0.90% | -0.90% | |
Effective Income Tax Rate Reconciliation Regulatory Differences Utility Plant Items | -1.60% | -0.90% | -0.30% | |
Effective Income Tax Rate Reconciliation Change In Unrecognized Tax Benefits | 0.00% | 0.00% | 0.10% | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | -0.10% | -0.20% | -0.10% | |
Effective Income Tax Rate Reconciliation, Percent | 37.50% | 38.00% | 37.20% | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current Federal Tax Expense (Benefit) | -3,932,000 | 5,902,000 | 930,000 | |
Current State and Local Tax Expense (Benefit) | 453,000 | 4,628,000 | 2,216,000 | |
Current Change In Unrecognized Tax Expense (Benefit) | 1,013,000 | 754,000 | -69,000 | |
Deferred Federal Income Tax Expense (Benefit) | 38,321,000 | 23,794,000 | 25,089,000 | |
Deferred State and Local Income Tax Expense (Benefit) | 8,042,000 | 2,720,000 | 1,890,000 | |
Deferred Change In Unrecognized Tax Expense (Benefit) | -967,000 | -725,000 | 128,000 | |
Deferred investment tax credits | -527,000 | -664,000 | -626,000 | |
Income Tax Expense (Benefit) | 42,403,000 | 36,409,000 | 29,558,000 | |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Deferred tax expense (benefit) excluding selected items | 49,793,000 | 27,516,000 | 27,995,000 | |
Amortization and adjustments to deferred income taxes on income tax regulatory assets and liabilities | -4,346,000 | -1,676,000 | -837,000 | |
Other Comprehensive Income (Loss), Tax | -51,000 | -51,000 | -51,000 | |
Deferred Income Tax Expense (Benefit) | 45,396,000 | 25,789,000 | 27,107,000 | |
Deferred Tax Liabilities, Gross [Abstract] | ||||
Deferred Tax Liabilities, Property, Plant and Equipment | 319,265,000 | 287,121,000 | ||
Deferred Tax Liabilities, Regulatory Assets | 72,670,000 | 57,296,000 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 18,691,000 | 16,953,000 | ||
Deferred Tax Liabilities, Other | 14,453,000 | 10,193,000 | ||
Deferred Tax Liabilities, Net | 425,079,000 | 371,563,000 | ||
Deferred Tax Assets, Gross [Abstract] | ||||
Deferred Tax Assets Environmental Remediation | 43,207,000 | 43,501,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 18,283,000 | 17,384,000 | ||
Deferred Tax Assets Regulatory Liabilities | 10,460,000 | 6,205,000 | ||
Deferred Tax Assets Deferred Investment Tax Credits | 5,628,000 | 5,976,000 | ||
Deferred Tax Assets Tax credit carryforward | 4,515,000 | 4,440,000 | ||
Deferred Tax Assets, Other | 3,007,000 | 3,871,000 | ||
Deferred Tax Assets, Net of Valuation Allowance | 85,100,000 | 81,377,000 | ||
Deferred Tax Assets, Net | 339,979,000 | 290,186,000 | ||
Internal Revenue Service (IRS) | ||||
Tax Audits [Abstract] | ||||
Year(s) no longer subject to audit as statute of limitations has expired | 2008 | |||
Earliest year subject to examination | 2009 | |||
Year(s) under examination | 2010 and 2011 | |||
Tax Adjustments, Settlements, and Unusual Provisions | 12,000,000 | |||
Operating Loss Carryforwards | 48,500,000 | 46,800,000 | ||
Tax Credit Carryforward, Amount | 4,500,000 | 4,400,000 | ||
Carryforward expiration date range, low | 2021 | |||
Carryforward expiration date range, high | 2034 | |||
State and Local Jurisdiction | ||||
Tax Audits [Abstract] | ||||
Earliest year subject to examination | 2010 | |||
Year(s) under examination | 2009 through 2011 | |||
Operating Loss Carryforwards | $3,400,000 | $6,300,000 | ||
Carryforward expiration date range, low | 2022 | |||
Carryforward expiration date range, high | 2031 |
Benefit_Plans_and_Other_Postre2
Benefit Plans and Other Postretirement Benefits, Employees Represented by Local Labor Unions (Details) | Dec. 31, 2014 |
Employee | |
Employees Represented by Local Labor Unions Under Collective Bargaining Agreements Receiving Benefits [Abstract] | |
Approximate percent of employees receiving benefits who are represented by local labor unions under collective bargaining agreements (in hundredths) | 71.00% |
Number of bargaining employees receiving benefits under several collective bargaining agreements | 402 |
Benefit_Plans_and_Other_Postre3
Benefit Plans and Other Postretirement Benefits Benefits Plans and Other Postretirement Benefits, Fair Value Hierarchy (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Commingled funds | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Notice period for investment redemption | 1 day |
Commingled funds | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Notice period for investment redemption | 90 days |
Real estate funds | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Notice period for investment redemption | 45 days |
Real estate funds | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Notice period for investment redemption | 90 days |
Benefit_Plans_and_Other_Postre4
Benefit Plans and Other Postretirement Benefits, Pension Benefits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Executive Retirement Plan (SERP) and Nonqualified Pension Plan | |||
Pension Benefits [Abstract] | |||
Total benefit obligation | $800,000 | $600,000 | |
Pension Plans | |||
Pension Benefits [Abstract] | |||
Total benefit obligation | 165,669,000 | 163,930,000 | 179,995,000 |
Minimum number of years historical achieved weighted average annual returns are used to determine investment return assumptions (in years) | 20 years | ||
Expected average long-term rate of return on assets (in hundredths) | 7.25% | 7.25% | 7.50% |
Expected average long-term rate of return on assets for next fiscal year (in hundredths) | 7.25% | ||
Target Pension Asset Allocations [Abstract] | |||
Target pension asset allocations (in hundredths) | 100.00% | 100.00% | |
Pension Plans | Domestic and international equity securities | |||
Target Pension Asset Allocations [Abstract] | |||
Target pension asset allocations (in hundredths) | 39.00% | 31.00% | |
Pension Plans | Long-duration fixed income and interest rate swap securities | |||
Target Pension Asset Allocations [Abstract] | |||
Target pension asset allocations (in hundredths) | 23.00% | 29.00% | |
Pension Plans | Short-to-intermediate fixed income securities | |||
Target Pension Asset Allocations [Abstract] | |||
Target pension asset allocations (in hundredths) | 14.00% | 16.00% | |
Pension Plans | Alternative investments | |||
Target Pension Asset Allocations [Abstract] | |||
Target pension asset allocations (in hundredths) | 22.00% | 22.00% | |
Pension Plans | Cash | |||
Target Pension Asset Allocations [Abstract] | |||
Target pension asset allocations (in hundredths) | 2.00% | 2.00% | |
Xcel Energy Inc. | Supplemental Executive Retirement Plan (SERP) and Nonqualified Pension Plan | |||
Pension Benefits [Abstract] | |||
Total benefit obligation | 46,500,000 | 36,500,000 | |
Net benefit cost recognized for financial reporting | $4,700,000 | $6,600,000 |
Benefit_Plans_and_Other_Postre5
Benefit Plans and Other Postretirement Benefits, Fair Value of Pension Plan Assets (Details) (Pension Plans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | $132,713 | $136,935 | $136,546 | |
Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 12,334 | 8,865 | ||
Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 110,791 | 118,269 | ||
Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 9,588 | 9,801 | 14,894 | 15,807 |
Cash equivalents | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 7,910 | 4,332 | ||
Cash equivalents | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 7,910 | 4,332 | ||
Cash equivalents | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash equivalents | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Derivatives | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 28 | 937 | ||
Derivatives | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Derivatives | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 28 | 937 | ||
Derivatives | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Government securities | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 16,084 | 6,711 | ||
Government securities | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Government securities | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 16,084 | 6,711 | ||
Government securities | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 13,231 | 24,955 | ||
Corporate bonds | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 13,231 | 24,955 | ||
Corporate bonds | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Asset-backed securities | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 162 | 307 | ||
Asset-backed securities | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Asset-backed securities | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 162 | 307 | ||
Asset-backed securities | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | 749 | 1,578 |
Mortgage-backed securities | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 475 | 684 | ||
Mortgage-backed securities | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Mortgage-backed securities | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 475 | 684 | ||
Mortgage-backed securities | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | 2,128 | 3,781 |
Common stock | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 4,424 | 4,533 | ||
Common stock | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 4,424 | 4,533 | ||
Common stock | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Common stock | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Private equity investments | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 7,078 | 7,502 | ||
Private equity investments | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Private equity investments | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Private equity investments | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 7,078 | 7,502 | 8,545 | 8,440 |
Commingled funds | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 81,806 | 84,364 | ||
Commingled funds | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Commingled funds | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 81,806 | 84,364 | ||
Commingled funds | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Real estate | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 2,510 | 2,299 | ||
Real estate | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Real estate | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Real estate | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 2,510 | 2,299 | 3,472 | 2,008 |
Securities lending collateral obligation and other | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | -995 | 311 | ||
Securities lending collateral obligation and other | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Securities lending collateral obligation and other | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | -995 | 311 | ||
Securities lending collateral obligation and other | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | $0 | $0 |
Benefit_Plans_and_Other_Postre6
Benefit Plans and Other Postretirement Benefits, Changes in Level 3 Pension Plan Assets (Details) (Pension Plans, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Dec. 31 | $132,713 | $136,935 | $136,546 | |
Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 9,801 | 14,894 | 15,807 | |
Net realized gains (losses) | 1,363 | 954 | 1,236 | |
Net unrealized gains (losses) | -1,431 | -1,713 | -1,254 | |
Purchases, issuances and settlements, net | -145 | 284 | -895 | |
Transfers in (out) of Level 3 | 0 | -4,618 | [1] | 0 |
Fair value of plan assets at Dec. 31 | 9,588 | 9,801 | 14,894 | |
Asset-backed securities | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Dec. 31 | 162 | 307 | ||
Asset-backed securities | Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 749 | 1,578 | ||
Net realized gains (losses) | 0 | 197 | ||
Net unrealized gains (losses) | 0 | -273 | ||
Purchases, issuances and settlements, net | 0 | -753 | ||
Transfers in (out) of Level 3 | -749 | [1] | 0 | |
Fair value of plan assets at Dec. 31 | 0 | 0 | 749 | |
Mortgage-backed securities | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Dec. 31 | 475 | 684 | ||
Mortgage-backed securities | Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 2,128 | 3,781 | ||
Net realized gains (losses) | 0 | 93 | ||
Net unrealized gains (losses) | 0 | -112 | ||
Purchases, issuances and settlements, net | 0 | -1,634 | ||
Transfers in (out) of Level 3 | -2,128 | [1] | 0 | |
Fair value of plan assets at Dec. 31 | 0 | 0 | 2,128 | |
Private equity investments | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Dec. 31 | 7,078 | 7,502 | ||
Private equity investments | Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 7,502 | 8,545 | 8,440 | |
Net realized gains (losses) | 1,197 | 1,083 | 945 | |
Net unrealized gains (losses) | -1,197 | -1,960 | -1,197 | |
Purchases, issuances and settlements, net | -424 | -166 | 357 | |
Transfers in (out) of Level 3 | 0 | 0 | [1] | 0 |
Fair value of plan assets at Dec. 31 | 7,078 | 7,502 | 8,545 | |
Real estate | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Dec. 31 | 2,510 | 2,299 | ||
Real estate | Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 2,299 | 3,472 | 2,008 | |
Net realized gains (losses) | 166 | -129 | 1 | |
Net unrealized gains (losses) | -234 | 247 | 328 | |
Purchases, issuances and settlements, net | 279 | 450 | 1,135 | |
Transfers in (out) of Level 3 | 0 | -1,741 | [1] | 0 |
Fair value of plan assets at Dec. 31 | $2,510 | $2,299 | $3,472 | |
[1] | Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013. |
Benefit_Plans_and_Other_Postre7
Benefit Plans and Other Postretirement Benefits, Pension Plan Benefit Obligations, Cash Flows and Benefit Costs (Details) (Pension Plans, USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated Benefit Obligation at Dec. 31 | $153,590,000 | $153,894,000 | ||||
Change in Projected Benefit Obligation [Roll Forward] | ||||||
Obligation at Jan. 1 | 163,930,000 | 179,995,000 | ||||
Service cost | 4,527,000 | 5,682,000 | 4,568,000 | |||
Interest cost | 7,257,000 | 6,924,000 | 7,765,000 | |||
Plan amendments | 0 | -1,109,000 | ||||
Actuarial (gain) loss | 9,126,000 | -11,097,000 | ||||
Benefit payments | -19,171,000 | -16,465,000 | ||||
Obligation at Dec. 31 | 165,669,000 | 163,930,000 | 179,995,000 | |||
Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets at Jan. 1 | 136,935,000 | 136,546,000 | ||||
Actual return (loss) on plan assets | 6,916,000 | 5,525,000 | ||||
Employer contributions | 8,033,000 | 11,329,000 | ||||
Benefit payments | -19,171,000 | -16,465,000 | ||||
Fair value of plan assets at Dec. 31 | 132,713,000 | 136,935,000 | 136,546,000 | |||
Funded Status of Plans at Dec. 31 [Abstract] | ||||||
Funded status | -32,956,000 | [1] | -26,995,000 | [1] | ||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost [Abstract] | ||||||
Net loss | 90,007,000 | 84,773,000 | ||||
Prior service (credit) cost | 667,000 | 778,000 | ||||
Total | 90,674,000 | 85,551,000 | ||||
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates [Abstract] | ||||||
Current regulatory assets | 6,728,000 | 7,631,000 | ||||
Noncurrent regulatory assets | 83,946,000 | 77,920,000 | ||||
Total | 90,674,000 | 85,551,000 | ||||
Significant Assumptions Used to Measure Benefit Obligations [Abstract] | ||||||
Measurement date | 12/31/14 | 12/31/13 | ||||
Discount rate for year-end valuation (in hundredths) | 4.11% | 4.75% | ||||
Expected average long-term increase in compensation level (in hundredths) | 3.75% | 3.75% | ||||
Mortality table | RP 2014 | RP 2000 | ||||
Cash Flows [Abstract] | ||||||
Total contributions to Xcel Energy's pension plans during the period | 8,000,000 | 11,300,000 | 12,500,000 | |||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | ||||||
Service cost | 4,527,000 | 5,682,000 | 4,568,000 | |||
Interest cost | 7,257,000 | 6,924,000 | 7,765,000 | |||
Expected return on plan assets | -9,642,000 | -9,995,000 | -10,489,000 | |||
Amortization of prior service cost (credit) | 111,000 | 417,000 | 1,771,000 | |||
Amortization of net loss | 6,617,000 | 7,924,000 | 6,004,000 | |||
Net periodic benefit cost | 8,870,000 | 10,952,000 | 9,619,000 | |||
Significant Assumptions Used to Measure Costs [Abstract] | ||||||
Discount rate (in hundredths) | 4.75% | 4.00% | 5.00% | |||
Expected average long-term increase in compensation level (in hundredths) | 3.75% | 3.75% | 4.00% | |||
Expected average long-term rate of return on assets (in hundredths) | 7.25% | 7.25% | 7.50% | |||
Allocated costs for pension plans sponsored by Xcel Energy Inc. | 1,700,000 | 2,200,000 | 1,800,000 | |||
Expected average long-term rate of return on assets for next fiscal year (in hundredths) | 7.25% | |||||
Number of years fair market value of plan assets is adjusted using calculated value method (in years) | 5 years | |||||
Annual adjustment rate used in calculated value method (in hundredths) | 20.00% | |||||
Xcel Energy Inc. | ||||||
Cash Flows [Abstract] | ||||||
Total contributions to Xcel Energy's pension plans during the period | 130,600,000 | 192,400,000 | 198,100,000 | |||
Number of pension plans to which contributions were made | 4 | 4 | 4 | |||
Subsequent Event | ||||||
Cash Flows [Abstract] | ||||||
Total contributions to Xcel Energy's pension plans during the period | 4,900,000 | |||||
Subsequent Event | Xcel Energy Inc. | ||||||
Cash Flows [Abstract] | ||||||
Total contributions to Xcel Energy's pension plans during the period | $90,000,000 | |||||
Number of pension plans to which contributions were made | 4 | |||||
[1] | Amounts are recognized in noncurrent liabilities on NSP-Wisconsin’s consolidated balance sheets. |
Benefit_Plans_and_Other_Postre8
Benefit Plans and Other Postretirement Benefits, Defined Contribution Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Plans [Abstract] | |||
Contributions to 401(k) and other defined contribution plans | $1.40 | $1.30 | $1.20 |
Benefit_Plans_and_Other_Postre9
Benefit Plans and Other Postretirement Benefits, Postretirement Health Care Benefits (Details) (Postretirement Benefit Plan) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Postretirement Health Care Benefits [Abstract] | ||
Amortization period for unrecognized accumulated postretirement benefit obligation (in years) | 20 years | |
Target pension asset allocations (in hundredths) | 100.00% | 100.00% |
Domestic and international equity securities | ||
Postretirement Health Care Benefits [Abstract] | ||
Target pension asset allocations (in hundredths) | 25.00% | 41.00% |
Short-to-intermediate fixed income securities | ||
Postretirement Health Care Benefits [Abstract] | ||
Target pension asset allocations (in hundredths) | 57.00% | 40.00% |
Alternative investments | ||
Postretirement Health Care Benefits [Abstract] | ||
Target pension asset allocations (in hundredths) | 13.00% | 13.00% |
Cash | ||
Postretirement Health Care Benefits [Abstract] | ||
Target pension asset allocations (in hundredths) | 5.00% | 6.00% |
Recovered_Sheet1
Benefit Plans and Other Postretirement Benefits, Fair Value of Postretirement Benefit Plan Assets (Details) (Postretirement Benefit Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | $512 | $746 | $647 | |
Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 28 | 31 | ||
Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 484 | 715 | ||
Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | 55 | 62 |
Cash equivalents | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 28 | 31 | ||
Cash equivalents | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 28 | 31 | ||
Cash equivalents | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash equivalents | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Derivatives | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | -2 | |||
Derivatives | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | |||
Derivatives | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | -2 | |||
Derivatives | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | |||
Government securities | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 52 | 89 | ||
Government securities | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Government securities | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 52 | 89 | ||
Government securities | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Insurance contracts | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 54 | 80 | ||
Insurance contracts | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Insurance contracts | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 54 | 80 | ||
Insurance contracts | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 59 | 79 | ||
Corporate bonds | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 59 | 79 | ||
Corporate bonds | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Asset-backed securities | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 4 | 5 | ||
Asset-backed securities | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Asset-backed securities | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 4 | 5 | ||
Asset-backed securities | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | 1 | 14 |
Mortgage-backed securities | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 12 | 37 | ||
Mortgage-backed securities | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Mortgage-backed securities | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 12 | 37 | ||
Mortgage-backed securities | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | 54 | 48 |
Commingled funds | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 304 | 452 | ||
Commingled funds | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Commingled funds | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 304 | 452 | ||
Commingled funds | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Other | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | -1 | -25 | ||
Other | Level 1 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Other | Level 2 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | -1 | -25 | ||
Other | Level 3 | ||||
Plan Assets Measured at Fair Value for Each of the Fair Value Hierarchy Levels [Abstract] | ||||
Fair value of plan assets | $0 | $0 |
Recovered_Sheet2
Benefit Plans and Other Postretirement Benefits, Changes in Level 3 Postretirement Benefit Plan Assets (Details) (Postretirement Benefit Plan, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | $512 | |||
Fair value of plan assets at Dec. 31 | 746 | 647 | 512 | |
Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 55 | 62 | 0 | |
Net realized gains (losses) | 0 | -1 | ||
Net unrealized gains (losses) | 0 | 9 | ||
Purchases, issuances and settlements, net | 0 | -15 | ||
Transfers in (out) of Level 3 | -55 | [1] | 0 | |
Fair value of plan assets at Dec. 31 | 0 | 55 | 0 | |
Asset-backed securities | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 4 | |||
Fair value of plan assets at Dec. 31 | 5 | 4 | ||
Asset-backed securities | Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 1 | 14 | 0 | |
Net realized gains (losses) | 0 | 0 | ||
Net unrealized gains (losses) | 0 | 3 | ||
Purchases, issuances and settlements, net | 0 | -16 | ||
Transfers in (out) of Level 3 | -1 | [1] | 0 | |
Fair value of plan assets at Dec. 31 | 0 | 1 | 0 | |
Mortgage-backed securities | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 12 | |||
Fair value of plan assets at Dec. 31 | 37 | 12 | ||
Mortgage-backed securities | Level 3 | ||||
Changes in Level 3 Plan Assets [Roll Forward] | ||||
Fair value of plan assets at Jan. 1 | 54 | 48 | 0 | |
Net realized gains (losses) | 0 | -1 | ||
Net unrealized gains (losses) | 0 | 6 | ||
Purchases, issuances and settlements, net | 0 | 1 | ||
Transfers in (out) of Level 3 | -54 | [1] | 0 | |
Fair value of plan assets at Dec. 31 | $0 | $54 | $0 | |
[1] | Transfers out of Level 3 into Level 2 were principally due to diminished use of unobservable inputs that were previously significant to these fair value measurements and were subsequently sold during 2013. |
Recovered_Sheet3
Benefit Plans and Other Postretirement Benefits, Postretirement Benefit Plan Benefit Obligations, Cash Flows and Benefit Costs (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Funded Status of Plans at Dec. 31 [Abstract] | |||
Noncurrent liabilities | ($51,313,000) | ($45,708,000) | |
Postretirement Benefit Plan | |||
Change in Projected Benefit Obligation [Roll Forward] | |||
Obligation at Jan. 1 | 17,153,000 | 19,432,000 | |
Service cost | 35,000 | 25,000 | 20,000 |
Interest cost | 791,000 | 760,000 | 1,075,000 |
Medicare subsidy reimbursements | 2,000 | 31,000 | |
Plan participants' contributions | 284,000 | 621,000 | |
Actuarial (gain) loss | -38,000 | -1,724,000 | |
Benefit payments | -1,459,000 | -1,992,000 | |
Obligation at Dec. 31 | 16,768,000 | 17,153,000 | 19,432,000 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at Jan. 1 | 746,000 | 647,000 | |
Actual return (loss) on plan assets | -15,000 | -13,000 | |
Plan participants' contributions | 284,000 | 621,000 | |
Employer contributions | 956,000 | 1,483,000 | |
Benefit payments | -1,459,000 | -1,992,000 | |
Fair value of plan assets at Dec. 31 | 512,000 | 746,000 | 647,000 |
Funded Status of Plans at Dec. 31 [Abstract] | |||
Funded status | -16,256,000 | -16,407,000 | |
Current liabilities | -1,022,000 | -718,000 | |
Noncurrent liabilities | -15,234,000 | -15,689,000 | |
Net postretirement amounts recognized on consolidated balance sheets | -16,256,000 | -16,407,000 | |
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost [Abstract] | |||
Net loss | 10,461,000 | 11,098,000 | |
Prior service (credit) cost | -2,836,000 | -3,187,000 | |
Total | 7,625,000 | 7,911,000 | |
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates [Abstract] | |||
Current regulatory assets | 95,000 | 570,000 | |
Noncurrent regulatory assets | 7,530,000 | 7,341,000 | |
Total | 7,625,000 | 7,911,000 | |
Significant Assumptions Used to Measure Benefit Obligations [Abstract] | |||
Measurement date | 12/31/14 | 12/31/13 | |
Discount rate for year-end valuation (in hundredths) | 4.08% | 4.82% | |
Mortality table | RP 2014 | RP 2000 | |
Health care costs trend rate - initial (in hundredths) | 6.50% | 7.00% | |
Ultimate health care trend assumption rate (in hundredths) | 4.50% | 4.50% | |
Period until ultimate trend rate is reached (in years) | 4 years | ||
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
One-percent increase in APBO | 1,722,000 | ||
One-percent decrease in APBO | -1,450,000 | ||
One-percent increase in service and interest components | 98,000 | ||
One-percent decrease in service and interest components | -80,000 | ||
Cash Flows [Abstract] | |||
Total contributions to Xcel Energy's postretirement health care plans during the year | 1,000,000 | 1,500,000 | 1,900,000 |
Expected contribution to postretirement health care plans during 2015 | 1,500,000 | ||
Components of Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 35,000 | 25,000 | 20,000 |
Interest cost | 791,000 | 760,000 | 1,075,000 |
Expected return on plan assets | -52,000 | -42,000 | -50,000 |
Amortization of transition obligation | 0 | 1,000 | 171,000 |
Amortization of prior service cost (credit) | -351,000 | -351,000 | -14,000 |
Amortization of net loss | 666,000 | 963,000 | 486,000 |
Net periodic benefit cost | 1,089,000 | 1,356,000 | 1,688,000 |
Significant Assumptions Used to Measure Costs [Abstract] | |||
Discount rate (in hundredths) | 4.82% | 4.10% | 5.00% |
Expected average long-term rate of return on assets (in hundredths) | 7.08% | 7.11% | 6.75% |
Xcel Energy Inc. | Postretirement Benefit Plan | |||
Cash Flows [Abstract] | |||
Total contributions to Xcel Energy's postretirement health care plans during the year | 17,100,000 | 17,600,000 | 47,100,000 |
Expected contribution to postretirement health care plans during 2015 | $12,800,000 |
Recovered_Sheet4
Benefit Plans and Other Postretirement Benefits, Projected Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plans | |
Defined Benefit Plan, Gross Projected Benefit Payments [Abstract] | |
2015 | $12,517 |
2016 | 13,288 |
2017 | 13,164 |
2018 | 12,564 |
2019 | 13,289 |
2020-2024 | 65,118 |
Postretirement Benefit Plan | |
Defined Benefit Plan, Gross Projected Benefit Payments [Abstract] | |
2015 | 1,547 |
2016 | 1,473 |
2017 | 1,397 |
2018 | 1,352 |
2019 | 1,311 |
2020-2024 | 5,816 |
Expected Medicare Part D Subsidies [Abstract] | |
2015 | 13 |
2016 | 11 |
2017 | 9 |
2018 | 8 |
2019 | 7 |
2020-2024 | 30 |
Defined Benefit Plan, Net Projected Benefit Payments [Abstract] | |
2015 | 1,534 |
2016 | 1,462 |
2017 | 1,388 |
2018 | 1,344 |
2019 | 1,304 |
2020-2024 | $5,786 |
Recovered_Sheet5
Benefit Plans and Other Postretirement Benefits, Multiemployer Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employer | |||
Multiemployer Plans [Abstract] | |||
Number of employers that must be exceeded during a given period in order for certain union workers to participate in multiemployer plans | 1 | ||
Multiemployer contributions | $156 | $130 | $163 |
Multiemployer Pension Plans | |||
Multiemployer Plans [Abstract] | |||
Multiemployer contributions | $156 | $130 | $163 |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Interest income | $368 | $538 | $736 |
Other nonoperating income | 321 | 152 | 129 |
Insurance policy expense | -409 | -427 | -389 |
Other nonoperating expense | -10 | -10 | 0 |
Other income, net | $270 | $253 | $476 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities, Derivative Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | MMBTU | MMBTU | ||
Interest Rate [Member] | ||||
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 [Member] | ||||
Gross Notional Amounts of Commodity Options [Abstract] | ||||
Derivative, Nonmonetary Notional amount | 18,000 | [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, Financial Impact of Qualifying Cash Flow Hedges (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Impact of Qualifying Cash Flow Hedges on Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1 | ($361) | ($437) | ($514) |
After-tax net realized losses on derivative transactions reclassified into earnings | 76 | 76 | 77 |
Accumulated other comprehensive loss related to cash flow hedges at Dec. 31 | ($285) | ($361) | ($437) |
Fair_Value_of_Financial_Assets4
Fair Value of Financial Assets and Liabilities, Impact of Derivative Activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financial Impact of Qualifying Fair Value Hedges on Earnings [Abstract] | |||
Derivative instruments designated as fair value hedges | $0 | $0 | $0 |
Recognized gains (losses) from fair value hedges or related hedged transactions | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Interest Rate [Member] | |||
Impact of Derivative Activity on Accumulated Other Comprehensive Income (Loss) Regulatory Assets and Liabilities and Income [Abstract] | |||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | -100,000 | -100,000 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Interest Rate [Member] | |||
Impact of Derivative Activity on Accumulated Other Comprehensive Income (Loss) Regulatory Assets and Liabilities and Income [Abstract] | |||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | -100,000 | ||
Other Derivative Instruments [Member] | Natural Gas Commodity [Member] | |||
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 | 100,000 | -100,000 | -400,000 |
Derivative Instruments Gain Loss Reclassified To Regulatory Assets And Liabilities Net | ($700,000) | ($2,900,000) |
Fair_Value_of_Financial_Assets5
Fair Value of Financial Assets and Liabilities, Derivative Assets and Liabilities at Fair Value (Details) (USD $) | Dec. 31, 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 | $6,918 | $5,056 | ||
Other current liabilities | 19,923 | 22,521 | ||
Fair Value Measured on a Recurring Basis | Other Current Assets [Member] | Natural Gas Commodity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 52 | [1] | 580 | [2] |
Fair Value Measured on a Recurring Basis | Level 1 | Other Current Assets [Member] | Natural Gas Commodity [Member] | ||||
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 [Member] | Natural Gas Commodity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 52 | 580 | ||
Fair Value Measured on a Recurring Basis | Level 3 | Other Current Assets [Member] | Natural Gas Commodity [Member] | ||||
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 | 6,900 | |||
Other current liabilities | 5,100 | |||
Fair Value Measured on a Recurring Basis | Fair Value Total | Other Current Assets [Member] | Natural Gas Commodity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 52 | 580 | ||
Fair Value Measured on a Recurring Basis | Netting [Member] | Other Current Assets [Member] | Natural Gas Commodity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | $0 | [3] | $0 | [3] |
[1] | Included in other current assets balance of $6.9 million at Dec. 31, 2014 in the consolidated balance sheets. | |||
[2] | Included in other current assets balance of $5.1 million at Dec. 31, 2013 in the consolidated balance sheets. | |||
[3] | 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 Dec. 31, 2014 and 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_Assets6
Fair Value of Financial Assets and Liabilities, Fair Value of Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current portion | $568,291 | $468,597 |
Fair Value | ||
Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, including current portion | $670,665 | $518,269 |
Rate_Matters_Details
Rate Matters (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
31-May-14 | Dec. 31, 2014 | Oct. 31, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Feb. 28, 2015 | |
PSCW Proceeding - Wisconsin Electric Rate Case 2015 [Member] | Public Service Commission of Wisconsin (PSCW) | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $20,600,000 | |||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 3.20% | |||||||
NSP-Wisconsin [Member] | PSCW Proceeding - Wisconsin Electric Rate Case 2015 [Member] | Public Service Commission of Wisconsin (PSCW) | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | 14,200,000 | |||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 2.20% | |||||||
NSP-Wisconsin [Member] | MPSC Proceeding - Electric Rate Case 2015, Electric Rates 2016 [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 289,000 | |||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 1.90% | |||||||
NSP-Wisconsin [Member] | MPSC Proceeding - Electric Rate Case 2015, Electric Rates 2015 [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 900,000 | |||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 6.10% | |||||||
Public Utilities, Requested Return on Equity, Percentage | 10.30% | |||||||
Public Utilities, Requested Equity Capital Structure, Percentage | 52.59% | |||||||
Public Utilities, Requested Rate Base, Amount | 35,200,000 | |||||||
NSP-Wisconsin [Member] | FERC Proceeding, MISO ROE Complaint [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, maximum equity capital structure percentage allowed per the complaint | 50.00% | |||||||
NSP-Wisconsin [Member] | FERC Proceeding, MISO ROE Complaint [Member] | Federal Energy Regulatory Commission (FERC) [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, number of steps required for newly adopted ROE discounted cash flow methodology | 2 | |||||||
Public Utilities, Incremental ROE basis point increase (decrease) recommended by third parties | 50 | |||||||
Minimum | NSP-Wisconsin [Member] | FERC Proceeding, MISO ROE Complaint [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, ROE applicable to transmission formula rates in the MISO region, lower bound, percentage | 9.15% | |||||||
Public Utilities, reduction of transmission revenue, net of expense due to the new ROE methodology | 5,000,000 | |||||||
Maximum | NSP-Wisconsin [Member] | FERC Proceeding, MISO ROE Complaint [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, ROE applicable to transmission formula rates in the MISO region, upper bound, percentage | 12.38% | |||||||
Public Utilities, reduction of transmission revenue, net of expense due to the new ROE methodology | $7,000,000 | |||||||
Subsequent Event | FERC Proceeding, MISO ROE Complaint [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Incremental ROE basis point increase (decrease) recommended by third parties | 50 | |||||||
Public Utilities, ROE applicable to transmission formula rates in the MISO region, recommended by third parties | 8.67% |
Commitments_and_Contingencies_1
Commitments and Contingencies, Fuel Contracts (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | |
Fuel Contracts [Abstract] | ||
Minimum annual tolerance band percentage for future rate recovery or refund of fuel costs (in hundredths) | 2.00% | |
Coal | ||
Fuel Contracts [Abstract] | ||
2015 | 6.6 | |
2016 | 0.8 | |
2017 | 0.9 | |
2018 | 0.8 | |
2019 | 0.8 | |
Thereafter | 3.3 | |
Total | 13.2 | [1] |
Natural Gas Supply | ||
Fuel Contracts [Abstract] | ||
2015 | 12.4 | |
2016 | 0.3 | |
2017 | 0.2 | |
2018 | 0 | |
2019 | 0 | |
Thereafter | 0 | |
Total | 12.9 | [1] |
Natural Gas Storage and Transportation | ||
Fuel Contracts [Abstract] | ||
2015 | 13.2 | |
2016 | 13.1 | |
2017 | 10.4 | |
2018 | 4.7 | |
2019 | 3.1 | |
Thereafter | 13.5 | |
Total | 58 | [1] |
Minimum | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Fuel Contract Expiration Date | 2015 | |
Maximum | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Fuel Contract Expiration Date | 2029 | |
[1] | Excludes additional amounts allocated to NSP-Wisconsin through intercompany charges. |
Commitments_and_Contingencies_2
Commitments and Contingencies, Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leases [Abstract] | |||
Total expenses under operating lease obligations | $1.30 | $1.40 | $1.10 |
Other [Member] | |||
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2015 | 0.9 | ||
2016 | 0.9 | ||
2017 | 1 | ||
2018 | 1 | ||
2019 | 1 | ||
Thereafter | 7.9 | ||
Total | $12.70 |
Commitments_and_Contingencies_3
Commitments and Contingencies, Variable Interest Entities (Details) (Low-Income Housing Limited Partnerships [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Low-Income Housing Limited Partnerships [Member] | ||
Amounts Reflected in Consolidated Balance Sheets [Abstract] | ||
Current assets | $246 | $223 |
Property, plant and equipment, net | 2,278 | 2,427 |
Other noncurrent assets | 122 | 112 |
Total assets | 2,646 | 2,762 |
Current liabilities | 1,349 | 233 |
Mortgages and other long-term debt payable | 486 | 1,687 |
Other noncurrent liabilities | 48 | 42 |
Total liabilities | $1,883 | $1,962 |
Commitments_and_Contingencies_4
Commitments and Contingencies, Joint Operating System (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Counterparty | |
Joint Operating System [Abstract] | |
Number of companies covered by FERC approved Interchange Agreement | 2 |
NSP-Minnesota | Nuclear Insurance | |
Joint Operating System [Abstract] | |
Maximum possible loss contingency | 13,600,000,000 |
Nuclear insurance coverage secured for the Company's public liability exposure | 375,000,000 |
Nuclear insurance coverage exposure funded by the Secondary Financial Protection Program | 13,200,000,000 |
Maximum assessments per reactor per accident | 127,300,000 |
Number of owned and licensed reactors | 3 |
Maximum funding requirement per reactor for any one year | 19,000,000 |
Term for maximum installment payment assessment per reactor (in years) | 1 year |
Insurance coverage limits for NSP-Minnesota's nuclear plant sites | 2,300,000,000 |
Number of nuclear plant sites operated by NSP-Minnesota | 2 |
Maximum assessments for business interruption insurance each calendar year | 17,900,000 |
Maximum assessment for property damage insurance NSP-Minnesota is subject to each calendar year | 43,600,000 |
Commitments_and_Contingencies_5
Commitments and Contingencies, Guarantees (Details) (Payment or Performance Guarantee, Customer Loans for Farm Rewiring Program, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | |
Payment or Performance Guarantee | Customer Loans for Farm Rewiring Program | ||
Guarantee [Abstract] | ||
Assets held as collateral | $0 | |
Guarantees issued and outstanding | 1 | [1] |
Current exposure under guarantees | $0.20 | [1] |
Guarantee Expiration Date (year) | 2018 | [1] |
[1] | The debtor becomes the subject of bankruptcy or other insolvency proceedings. |
Commitments_and_Contingencies_6
Commitments and Contingencies, Environmental Contingencies - Site Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Parties | ||
Site | ||
Manufactured Gas Plant (MGP) Site [Abstract] | ||
Liability for estimated cost of remediating sites, current | $29,116,000 | $28,785,000 |
Ashland MGP Site | ||
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 | 107,600,000 | 104,600,000 |
Number of PRPs that have reached a settlement in principle | 2 | |
Contributions to site cleanup by PRPs | 10,500,000 | |
Number of days the agreement is subject to public comment | 30 days | |
Liability for estimated cost of remediating sites, current | 28,900,000 | 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 | ||
Manufactured Gas Plant (MGP) Site [Abstract] | ||
Liability for estimated cost of remediating sites | 54,000,000 | |
Estimated amount spent on Phase I Project Area cleanup | 28,000,000 | |
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 | ||
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% | |
Other MGP Sites | ||
Manufactured Gas Plant (MGP) Site [Abstract] | ||
Liability for estimated cost of remediating sites | $200,000 | $3,900,000 |
Number of identified MGP sites under current investigation and/or remediation | 2 |
Commitments_and_Contingencies_7
Commitments and Contingencies Commitments and Contingencies, Environmental Contingencies - Unrecorded Unconditional Purchase Obligation (Details) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Apr. 30, 2012 | Jun. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2014 |
MW | Issue | Parts-per-million | ||
Greenhouse Gas New Source Performance Standard for Modified and Reconstructed Power Plants | ||||
Environmental Requirements [Abstract] | ||||
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% | |||
Cross-State Air Pollution Rule | ||||
Environmental Requirements [Abstract] | ||||
Number of issues on which the D.C. Circuit overturned the CSAPR | 2 | |||
Electric Generating Unit Mercury And Air Toxics Standards Rule | ||||
Environmental Requirements [Abstract] | ||||
Generating capacity (in MW) | 25 | |||
Number of years before affected facilities must demonstrate compliance, low end of range | 3 years | |||
Number of years before affected facilities must demonstrate compliance, high end of range | 4 years | |||
National Ambient Air Quality Standards for Ozone | ||||
Environmental Requirements [Abstract] | ||||
Number of hours the NAAQS for Ozone is based upon (in hours) | 8 | |||
Current level of air quality concentrations (in parts per million) | 0.075 | |||
Lowest proposed level of air quality concentrations that the EPA is taking comment on (in parts per million) | 0.06 | |||
Capital Commitments | Federal Clean Water Act Section 316(b) | ||||
Environmental Requirements [Abstract] | ||||
Liability for estimated cost to comply with regulation | 4 | |||
Capital Commitments | Industrial Boiler Maximum Achievable Control Technology Rules | ||||
Environmental Requirements [Abstract] | ||||
Liability for estimated cost to comply with regulation | 21 | |||
Minimum | National Ambient Air Quality Standards for Ozone | ||||
Environmental Requirements [Abstract] | ||||
Proposed level of air quality concentrations (in parts per million) | 0.065 | |||
Maximum | National Ambient Air Quality Standards for Ozone | ||||
Environmental Requirements [Abstract] | ||||
Proposed level of air quality concentrations (in parts per million) | 0.07 |
Commitments_and_Contingencies_8
Commitments and Contingencies, Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | $2,853 | [1],[2] | $3,036 | |
Liabilities recognized | 515 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 76 | 84 | ||
Cash Flow Revisions | 5,646 | -267 | ||
Ending balance | 9,090 | [1],[2] | 2,853 | [1],[2] |
Electric Plant Steam Production Asbestos | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 2,005 | [1] | 1,962 | |
Liabilities recognized | 0 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 44 | 43 | ||
Cash Flow Revisions | 0 | 0 | ||
Ending balance | 2,049 | [1] | 2,005 | [1] |
Electric Plant Steam and Other Production Ash Containment | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 361 | [1] | 125 | |
Liabilities recognized | 0 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 13 | 12 | ||
Cash Flow Revisions | 0 | 224 | ||
Ending balance | 374 | [1] | 361 | [1] |
Electric Plant Electric Distribution | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 36 | [1] | 13 | |
Liabilities recognized | 0 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 1 | 1 | ||
Cash Flow Revisions | 0 | 22 | ||
Ending balance | 37 | [1] | 36 | [1] |
Electric Plant Other | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 289 | [1] | 826 | |
Liabilities recognized | 113 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 10 | 20 | ||
Cash Flow Revisions | 0 | -557 | ||
Ending balance | 412 | [1] | 289 | [1] |
Natural Gas Plant Gas Distribution | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 75 | [1] | 75 | |
Liabilities recognized | 402 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 5 | 5 | ||
Cash Flow Revisions | 5,645 | -5 | ||
Ending balance | 6,127 | [1] | 75 | [1] |
Common and Other Property Common Miscellaneous | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 87 | [1] | 35 | |
Liabilities recognized | 0 | 0 | ||
Liabilities settled | 0 | 0 | ||
Accretion | 3 | 3 | ||
Cash Flow Revisions | 1 | 49 | ||
Ending balance | $91 | [1] | $87 | [1] |
[1] | There were no ARO liabilities settled during the years ended Dec. 31, 2014 or 2013. | |||
[2] | Included in the other long-term liabilities balance in the consolidated balance sheets. |
Commitments_and_Contingencies_9
Commitments and Contingencies Commitments and Contingencies, Removal Costs (Details) (Plant Removal Costs, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liabilities | $123 | $116 |
Regulatory_Assets_and_Liabilit2
Regulatory Assets and Liabilities, Regulatory Assets (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | $20,036,000 | $14,866,000 | ||
Regulatory Asset, Noncurrent | 280,693,000 | 233,193,000 | ||
Past expenditures not currently earning a return | 12,100,000 | 100,000 | ||
Environmental Remediation Costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 4,376,000 | 4,376,000 | ||
Regulatory Asset, Noncurrent | 147,793,000 | 117,684,000 | ||
Regulatory asset, remaining amortization period | Various | |||
Pension and Retiree Medical Obligations | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 6,837,000 | [1] | 8,202,000 | [1] |
Regulatory Asset, Noncurrent | 91,601,000 | [1] | 85,220,000 | [1] |
Regulatory asset, remaining amortization period | Various | |||
Recoverable Deferred Taxes on AFUDC Recorded in Plant | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 0 | 0 | ||
Regulatory Asset, Noncurrent | 16,711,000 | 12,679,000 | ||
Regulatory asset, remaining amortization period | Plant lives | |||
Losses on Reacquired Debt | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 801,000 | 801,000 | ||
Regulatory Asset, Noncurrent | 4,936,000 | 5,737,000 | ||
Regulatory asset, remaining amortization period | Term of related debt | |||
State Commission Adjustments | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 488,000 | 410,000 | ||
Regulatory Asset, Noncurrent | 11,650,000 | 9,355,000 | ||
Regulatory asset, remaining amortization period | Plant lives | |||
Conservation Programs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 0 | 404,000 | ||
Regulatory Asset, Noncurrent | 0 | 0 | ||
Regulatory asset, remaining amortization period | Less than one year | |||
Deferred Income Tax Adjustment | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 0 | 0 | ||
Regulatory Asset, Noncurrent | 1,514,000 | 1,763,000 | ||
Regulatory asset, remaining amortization period | Typically plant lives | |||
Recoverable Purchased Natural Gas And Electric Energy Costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 6,946,000 | 673,000 | ||
Regulatory Asset, Noncurrent | 0 | 0 | ||
Regulatory asset, remaining amortization period | Less than one year | |||
Monticello EPU Cost Deferral | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 0 | 0 | ||
Regulatory Asset, Noncurrent | 5,237,000 | 0 | ||
Regulatory asset, remaining amortization period | Pending rate cases | |||
Other Regulatory Assets | ||||
Regulatory Assets [Line Items] | ||||
Regulatory Asset, Current | 588,000 | 0 | ||
Regulatory Asset, Noncurrent | $1,251,000 | $755,000 | ||
Regulatory asset, remaining amortization period | Various | |||
[1] | Includes the non-qualified pension plan. |
Regulatory_Assets_and_Liabilit3
Regulatory Assets and Liabilities, Regulatory Liabilities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | $16,940 | $9,717 |
Regulatory Liability, Noncurrent | 132,674 | 126,424 |
Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 0 | 0 |
Regulatory Liability, Noncurrent | 123,105 | 116,293 |
Regulatory liability, remaining amortization period | Plant lives | |
DOE Settlement | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 4,931 | 6,814 |
Regulatory Liability, Noncurrent | 0 | 0 |
Regulatory liability, remaining amortization period | Less than one year | |
Investment Tax Credit Deferrals | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 0 | 0 |
Regulatory Liability, Noncurrent | 9,397 | 9,976 |
Regulatory liability, remaining amortization period | Various | |
Conservation Programs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 1,010 | 1,187 |
Regulatory Liability, Noncurrent | 0 | 0 |
Regulatory liability, remaining amortization period | Less than one year | |
Deferred Electric Production And Natural Gas Costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 0 | 1,542 |
Regulatory Liability, Noncurrent | 0 | 0 |
Regulatory liability, remaining amortization period | Less than one year | |
Excess depreciation reserve | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 10,999 | 0 |
Regulatory Liability, Noncurrent | 0 | 0 |
Regulatory liability, remaining amortization period | Various | |
Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory Liability, Current | 0 | 174 |
Regulatory Liability, Noncurrent | $172 | $155 |
Regulatory liability, remaining amortization period | Various |
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) at beginning of period | ($361) | ||||
Accumulated other comprehensive income (loss) at end of period | -285 | -361 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total, pre-tax | -113,045 | -95,877 | -79,509 | ||
Income tax expense (benefit) | 42,403 | 36,409 | 29,558 | ||
Gains and Losses on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) at beginning of period | -361 | -437 | |||
(Gains) losses reclassified from net accumulated other comprehensive loss | 76 | 76 | |||
Net current period other comprehensive income (loss) | 76 | 76 | |||
Accumulated other comprehensive income (loss) at end of period | -285 | -361 | |||
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 | 127 | 127 | |||
Income tax expense (benefit) | -51 | -51 | |||
Total, net of tax | 76 | 76 | |||
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 | $127 | [1] | $127 | [1] | |
[1] | Included in interest charges. |
Segments_and_Related_Informati2
Segments and Related Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Intercompany revenue | $145,102 | $136,917 | $125,344 | |||||||||||
Operating revenues | 256,160 | 231,046 | 228,114 | 285,142 | 240,388 | 231,060 | 210,175 | 241,415 | 1,000,462 | 923,038 | 861,842 | |||
Depreciation and amortization | 79,654 | 76,897 | 69,234 | |||||||||||
Total interest charges and financing costs | 25,913 | 25,816 | 22,937 | |||||||||||
Income tax expense (benefit) | 42,403 | 36,409 | 29,558 | |||||||||||
Net income (loss) | 14,355 | 20,030 | 12,022 | 24,235 | 7,225 | 22,013 | 10,544 | 19,685 | 70,642 | 59,468 | 49,951 | |||
Regulated Electric | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 830,245 | 789,518 | 757,920 | |||||||||||
Depreciation and amortization | 65,978 | 64,237 | 59,768 | |||||||||||
Total interest charges and financing costs | 23,448 | 22,966 | 20,303 | |||||||||||
Income tax expense (benefit) | 39,621 | 33,691 | 27,164 | |||||||||||
Net income (loss) | 59,060 | 51,334 | 45,377 | |||||||||||
Regulated Natural Gas | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 174,514 | 134,834 | 103,827 | |||||||||||
Depreciation and amortization | 13,501 | 12,485 | 9,251 | |||||||||||
Total interest charges and financing costs | 2,358 | 2,749 | 2,554 | |||||||||||
Income tax expense (benefit) | 5,993 | 4,623 | 2,113 | |||||||||||
Net income (loss) | 8,714 | 6,501 | 3,094 | |||||||||||
All Other | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 1,085 | 1,003 | 1,177 | |||||||||||
Depreciation and amortization | 175 | 175 | 215 | |||||||||||
Total interest charges and financing costs | 107 | 101 | 80 | |||||||||||
Income tax expense (benefit) | -3,211 | -1,905 | 281 | |||||||||||
Net income (loss) | 2,868 | 1,633 | 1,480 | |||||||||||
Operating Segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 1,000,462 | [1] | 923,038 | [1] | 861,842 | [1] | ||||||||
Operating Segments | Regulated Electric | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 829,748 | [1] | 789,168 | [1] | 757,565 | [1] | ||||||||
Operating Segments | Regulated Natural Gas | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 169,629 | [1] | 132,867 | [1] | 103,100 | [1] | ||||||||
Operating Segments | All Other | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 1,085 | [1] | 1,003 | [1] | 1,177 | [1] | ||||||||
Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | -5,382 | -2,317 | -1,082 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Total interest charges and financing costs | 0 | 0 | 0 | |||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||
Net income (loss) | 0 | 0 | 0 | |||||||||||
Intersegment Eliminations | Regulated Electric | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 497 | 350 | 355 | |||||||||||
Intersegment Eliminations | Regulated Natural Gas | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | 4,885 | 1,967 | 727 | |||||||||||
Intersegment Eliminations | All Other | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating revenues | $0 | $0 | $0 | |||||||||||
[1] | Operating revenues include $145 million, $137 million and $125 million of intercompany revenue for the years ended Dec. 31, 2014, 2013 and 2012 respectively. See Note 15 for further discussion of related party transactions by operating segment. |
Schedule_II_Valuation_and_Qual1
Schedule II, Valuation and Qualifying Accounts (Details) (Allowance for Bad Debts, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Bad Debts | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Jan. 1 | $4,911 | $4,333 | $4,766 | |||
Charged to costs and expenses | 4,431 | 3,988 | 3,329 | |||
Charged to other accounts | 1,269 | [1] | 1,199 | [1] | 1,310 | [1] |
Deductions from reserves | 4,790 | [2] | 4,609 | [2] | 5,072 | [2] |
Balance at Dec. 31 | $5,821 | $4,911 | $4,333 | |||
[1] | Recovery of amounts previously written off. | |||||
[2] | Principally bad debts written off. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Related Party Transaction [Line Items] | ||||
Deferred Purchased Power Costs | $5,200,000 | |||
Transmission costs deferred as regulatory liability | 11,000,000 | |||
Operating revenues | ||||
Electric | 145,102,000 | 136,917,000 | 125,344,000 | |
Related Party Transaction, Utilities Operating Expense, Purchased Power net of deferred costs | 430,666,000 | [1] | ||
Operating expenses | ||||
Purchased power | 425,471,000 | 416,173,000 | 405,016,000 | |
Transmission expense | 43,876,000 | 42,460,000 | 44,942,000 | |
Natural gas purchased for resale | 90,000 | 97,000 | 116,000 | |
Other operating expenses - paid to Xcel Energy Services Inc. | 84,224,000 | 61,531,000 | 54,137,000 | |
Interest expense | 30,000 | 22,000 | 22,000 | |
Accounts Receivable and Payable with Affiliates [Abstract] | ||||
Accounts receivable | 31,000 | 1,595,000 | ||
Accounts payable | 26,524,000 | 24,986,000 | ||
NSP-Minnesota | ||||
Accounts Receivable and Payable with Affiliates [Abstract] | ||||
Accounts receivable | 0 | 0 | ||
Accounts payable | 17,333,000 | 18,584,000 | ||
PSCo | ||||
Accounts Receivable and Payable with Affiliates [Abstract] | ||||
Accounts receivable | 0 | 0 | ||
Accounts payable | 22,000 | 8,000 | ||
SPS | ||||
Accounts Receivable and Payable with Affiliates [Abstract] | ||||
Accounts receivable | 31,000 | 26,000 | ||
Accounts payable | 0 | 0 | ||
Other subsidiaries of Xcel Energy Inc. | ||||
Accounts Receivable and Payable with Affiliates [Abstract] | ||||
Accounts receivable | 0 | 1,569,000 | ||
Accounts payable | $9,169,000 | $6,394,000 | ||
[1] | Pursuant to orders issued by the PSCW in December 2013 and February 2014, the 2014 amounts do not reflect $5.2 million of purchased power expenses deferred as a regulatory asset and $11.0 million of transmission costs deferred as a regulatory liability billed to NSP-Wisconsin through the Interchange Agreement from NSP-Minnesota. |
Summarized_Quarterly_Financial2
Summarized Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $256,160 | $231,046 | $228,114 | $285,142 | $240,388 | $231,060 | $210,175 | $241,415 | $1,000,462 | $923,038 | $861,842 |
Operating income | 27,787 | 37,540 | 23,730 | 42,571 | 16,545 | 40,769 | 22,466 | 37,401 | 131,628 | 117,181 | 99,866 |
Net income | $14,355 | $20,030 | $12,022 | $24,235 | $7,225 | $22,013 | $10,544 | $19,685 | $70,642 | $59,468 | $49,951 |